Do you want to start HR Consultant business plan?
Are you thinking about starting an HR consultant business? If so, it is a great idea. That’s because you can start an HR consultant business with very few resources and a small team. Afterward, you can extend it to whatever size you want. But the start is relatively easier as compared to other businesses.
The first step in learning how to start HR consulting business is to write a good business plan for your idea.
You can write an HR consultant business plan yourself. Or you can hire business plan writing services. If you want to write the plan yourself, you can just follow the HR consultant business plan mentioned here.
2.1 The Business
Dillinger HR Consultants will be an HR consultancy company started and owned by Riley Dillinger. The company’s primary aim will be to provide consultations to its clients about the management and procurement of their HR resources in Portland, Oregon. The range of services offered will vary from recruitment and training to payroll management for different clients.
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2.2 Management of HR Consultant Company
When starting a human resource consulting firm, you need to ensure that all your resources are well-managed and utilized. You can do this through a business plan strategy. You can do an HR consultancy industry overview to understand what resources you will need to start your company.
The best portfolio of an HR consultant for small businesses and big ones is competent management of his own business. So, if you want to learn how to start an HR consulting firm, take guidance from this plan and others like business consulting business plan, etc.
Here, we are providing all the necessary details of Dillinger HR Consultants so that you can take help for developing your business plan.
2.3 Customers of HR Consultant Company
Our customers will belong to almost all work domains as professional cleaning and maintenance are required by all. However, our potential and recurring customers are identified as follows:
- HR Directors
- Small/ Medium Businesses & Work Councils
- Internal Consulting Departments
- Training Facilities
2.4 Business Target
Our target is to become a reliable source of HR consultancy and issue resolution to our clients when they need assistance.
Our financial targets for the first two years of our launch are shown below:
3.1 Company Owner
Riley Dillinger will be the owner of Dillinger HR Consultants. She completed her MBA two years back and worked for an administration firm after graduation. To pursue her dream of starting her own business, she decided to leave her job and start the Dillinger HR Consultants.
3.2 Why the HR Consultant company is being started
In her previous job, Riley had a lot of exposure to various types of organizations ad companies at every scale. She realized that a lot of companies struggle with their human resource department. And more prominent consultancy companies cannot offer services catered to each company. She realized that she could solve this issue by starting as an HR independent consultant and then extending the business to a startup HR consultancy.
3.3 How the HR Consultant company will be started
Step1: Plan Everything
When learning how to start an HR consultancy company, you will find that developing an HR consulting business plan template is vital. For this, you can refer to different business plans available on the internet like counseling practice business plan, etc.
Since Riley decided to start small and expand her business from there, this HR consulting business model is suitable for those who are just beginning and those looking to expand their business.
Step2: Define the Brand
The next step is to showcase your unique values and services to your customers. It is called developing a brand. And it helps a business stand out from its competition. Any good business plan, whether it is a life coaching business plan or a mortgage lender business plan, includes the necessary details about developing the brand.
Step3: Establish Your Corporate Office
To start her business, Riley decided to rent out a space in an office building in Portland. Her next step will be to hire sufficient staff to launch her company.
Step4: Establish a Web Presence
Riley knew the importance of social media and online networking in the success of a business. So she decided to establish social media profiles for the company and also get a website developed. It will help her expand her reach and allow her customer to contact her from anywhere, at any time.
Step5: Promote and Market
The final step is to develop a marketing plan and execute it for the promotion of the business.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$147,600|
|Other Current Assets||$240,000|
|Start-up Expenses to Fund||$147,600|
|Start-up Assets to Fund||$1,201,000|
|TOTAL FUNDING REQUIRED||$1,348,600|
|Non-cash Assets from Start-up||$1,506,000|
|Cash Requirements from Start-up||$285,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$48,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,348,600|
|Loss at Start-up (Start-up Expenses)||$461,400|
|TOTAL CAPITAL AND LIABILITIES||$1,876,000|
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Starting your own HR consulting business is all about planning. You need to decide on the services that you will provide to your clients. A good idea about the scope of your services will help you to plan your business. It will also help you create the HR consulting services business plan.
To understand how services are presented in a business plan, you can take a look at an HR consulting business plan sample or something related, like a staffing company business plan.
Riley decided to limit her company’s services at the beginning but expand them later on. Therefore, this sample HR consulting proposal is suitable for developing the business plan for any company. It doesn’t need to be related to business HR consulting. It can even be a courier services business plan. You can easily take help from here.
- Policies Development
One of the significant services of Riley’s HR Consultants will be to help companies in the development and streamlining of their policies. It can include things like:
- Disciplinary Conduct
- Workplace Violence, etc.
- Recruitment Operations
We will also offer recruitment aid services to our clients. It can include providing our clients with part-time or full-time employees. We will take care of the whole process, from sourcing to staff induction. Or we will just match our clients with an appropriate employee pool that they can choose from.
- Provision of Contract Staff
Contract Staffing is a brilliant solution for many services. We will help our staff in temporary staffing with limited-time contracts where the employees can immediately meet the client’s needs.
- Training and Development
Productivity and efficiency are key terms that are used by every business, big and small. We will help our clients take this idea from an abstract realm to reality by helping them in developing training plans for maximum efficiency.
- Performance Management
Riley’s HR Consultants will also help people develop and implement robust performance management systems so that their employees attain maximum productivity and attain their goals faster.
Marketing Analysis of HR Consultant Company
For starting a HR consultancy, you need to have an in-depth knowledge of your customers and competition. You can gain this insight through a marketing analysis. These are a part of business plan for HR consulting firm. It will give you an idea of how to price and market your services.
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A good marketing analysis of HR marketing consultants should include all past, present, and future market predictions to run the business accordingly. These analyses form an essential part of any HR consulting proposal example. And these, together with the financial goals of the company, determine how to start an HR consulting business and how to run it.
5.1 Market Trends
According to IBISWorld, HR consulting services in the US have a market valued at $24 Billion as of 2021. And the market is expanding at a rate of 5.8% every year. It means that more and more companies are demanding assistance to develop and improve their human resource departments. Many businesses are looking for temporary contract human resource provision, and starting an HR consultancy firm is a great way to take advantage of this market.
5.2 Marketing Segmentation
The customers of Riley’s HR Consultants are categorized into the following groups:
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5.2.1 HR Directors
Our main clients will be the HR directors and managers of different companies. Our HR advisors will help them improve the human resource functions in each department and the entire company. This group is expected to require our services frequently throughout the year.
5.2.2 Small/ Medium Businesses & Work Councils
Our second biggest clients will be small and medium-sized businesses and work councils. Our consultants will help them in solving human capital problems of various scopes. These may include providing HR support, managing cultural transformations and developing management strategies, etc.
5.2.3 Internal Consulting Departments
Our consultants will also regularly work with internal consulting departments of companies to ensure proper human resources are available for the ongoing project. These clients are expected to avail of our services quite often.
5.2.4 Training Facilities
One of the aims of Riley HR Consultants is to make companies self-sufficient. In that respect, we will also provide training seminars and plans catered for our customers. Our smaller clients are expected to utilize the most to make their startups more efficient.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Business & Work Councils||25%||22,000||26,400||31,680||38,016||45,619||10.00%|
|Internal Consulting Depts||21%||19,000||22,800||27,360||32,832||39,398||10.00%|
5.3 Business Target
- To become the most sought out HR consultants in Portland, Oregon.
- To expand the range of our offered services with passing time and increase the area of our approach.
- To earn a net profit of $50k per month by the end of our third year.
- To have around two dozen regular clients, 5 of which need to be big guns.
- To maintain a customer satisfaction score above 90%.
5.4 Product Pricing
Our prices will be a little higher as compared to our competitors. But we will offer a more excellent range of services for that price along with 24/7 customer support. We will also ensure that our clients have access to our on-site services whenever they require them.
To make your name in a bustling industry, you will need a marketing plan. In fact, it is one of the most crucial parts of learning how to set up an HR consulting business.
You can find examples of marketing analysis in any HR consulting business plan template. In this business plan HR consulting, we are providing the sales strategy for Riley’s HR consultants so that more and more people will pay attention to the business.
6.1 Competitive Analysis
- Our clients can contact us at any time through our website or social media. They can also use our provided contact numbers to connect with our support systems.
- We will establish solid customer care services to maintain good relationships with our clients.
- We will also take feedback from our clients to make necessary changes and deal with our customers in the best possible manner each time they hire us.
6.2 Sales Strategy
- We will offer continuous support to our customers.
- We will offer 25% customers to our first ten clients for a period of 6 months.
- For our shorter-term clients, we will offer a 10% discount.
- We will advertise our services through social media, billboards, posters, and Google Ads.
6.3 Sales Monthly
6.4 Sales Yearly
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6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Provision of Contract Staff||876||929||984|
|Training & Development||568||602||638|
|Policies & Performance Services||432||458||485|
|TOTAL UNIT SALES||2,863||3,035||3,217|
|Unit Prices||Year 1||Year 2||Year 3|
|Provision of Contract Staff||$1,500.00||$1,740.00||$2,018.40|
|Training & Development||$1,750.00||$2,030.00||$2,354.80|
|Policies & Performance Services||$2,500.00||$2,900.00||$3,364.00|
|Provision of Contract Staff||$1,314,000.00||$1,615,694.40||$1,986,657.83|
|Training & Development||$994,000.00||$1,222,222.40||$1,502,844.66|
|Policies & Performance Services||$1,080,000.00||$1,327,968.00||$1,632,869.45|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Provision of Contract Staff||$900.00||$990.00||$1,039.50|
|Training & Development||$950.00||$1,045.00||$1,097.25|
|Policies & Performance Services||$1,250.00||$1,375.00||$1,443.75|
|Direct Cost of Sales|
|Provision of Contract Staff||$788,400.00||$919,274.40||$1,023,152.41|
|Training & Development||$539,600.00||$629,173.60||$700,270.22|
|Policies & Performance Services||$540,000.00||$629,640.00||$700,789.32|
|Subtotal Direct Cost of Sales||$2,657,600.00||$3,098,761.60||$3,448,921.66|
A consultancy firm depends on its relationships with its clients. Riley decided to implement some selection criteria when hiring initial employees to develop and maintain excellent relationships with the customers. She also made these criteria a part of the HR consultancy business plan pdf as you will find in any HR consulting business plan template.
7.1 Company Staff
- 1 Manager
- 6 Certified HR consultants
- 2 Customer Care Managers
- 1 Web Developer to manage online sites
- 1 Sales Executives to organize and promote sales
- 1 Accountant
- 1 Receptionist
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Certified HR Consultants||$122,000||$134,200||$147,620|
|Customer Care Managers||$70,000||$77,000||$84,700|
The success of a business depends on many factors, of which financial standing is one. To ensure the success of your business, you need to maintain it in good financial standing. To do this, you need to manage your operations and problems in a timely fashion. To ensure that your business won’t suffer any loss, you need to develop a financial plan and make it a part of your business plan for HR consulting firm. You can take guidance for this from an HR consulting business plan template.
Here we’re providing the detailed financial plan developed for Riley’s HR Consultants. You can get an idea of business finances and how to manage them from here.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
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8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$2,657,600||$3,098,762||$3,448,922|
|TOTAL COST OF SALES||$2,657,600||$3,098,762||$3,448,922|
|Gross Margin %||42.50%||45.47%||50.64%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$496,200||$532,150||$577,470|
|Profit Before Interest and Taxes||$1,467,950||$2,051,992||$2,961,307|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- How do I start an HR consulting business?
You can start HR consulting business with any team size. You just need a strong HR consulting business model for which you can take help from this document.
- What should I charge for HR consulting?
The charges you take for HR consultant services will depend on the type of services. But on average, HR consultants charge anywhere from $100 to $300 per hour.
- How do HR consulting firms work?
HR consulting firms aid companies in dealing with their HR departments or managing their human resources in case they don’t have one. You can find more details in the above document.
- How do you write a human resource business plan?
You can write a human resource business plan by conducting an HR consulting industry analysis. For reference, you can take help from this document.
Illustrative business plan samples
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