420003173730175001871345Stanford ConsultingBusiness Plan00Stanford ConsultingBusiness Plan
1. Executive Summary
Stanford Consulting is a new-age consulting firm that provides customized consulting solutions to industrial clients and individuals in the UAE and the GCC region. The company operates on a unique business model where it provides a full range of services across diverse areas of the industry, the core services of the company can be described as follows:
Management Consulting- Consulting services in the domain tax (VAT) consulting, entering a new business and problem solving such as profit and loss and increasing revenue.
Entertainment Consulting- Consulting and event as well as career management services to industrial clients in the music industry such as record producers and event organizations and individual artists.
Sports Consulting- Consulting services to sports organizations, clubs, and agencies to manage and organize events as well as increase performance and business processes.
The company wishes to be a one-stop shop for all major consulting needs for the clients in the UAE as well as the GCC region. The company will set up and start its operations in the UAE and later on expand its operations across other regions in the GCC.
Fig 1.1. Financial Highlights
Fig 1.1. illustrates the financial performance of the company as projected in the next five-year period. The figures show that the organization will attain high growth in revenues over the years with steady growth in profits from the second year onwards. Stanford Consulting presents a mutually profitable opportunity for itself as well as its shareholders.
2. Company Summary
2.1. Company Details
The company is registered as ‘Stanford Consulting Private Limited’ in the UAE since 2018. The company is limited by shares and specializes in providing Consulting Services to local clients in the UAE as well as the GCC region across various verticals such as management, entertainment and sports.
The company is owned by cofounders <insert name> and <insert name>, as the CEO and COO respectively. Their involvement in the company is vital to its day to day operations and its financial success.
2.3. Startup Summary
Marketing and Sales 300,000
Legal and Company Formation 100,000
Web Development 200,000
Other Cash Expenses 200,000
Fig 2.1. Funding Requirements and Allocation
As given in fig 2.1. the startup will need to raise finds in the amount of approx. $900,000 which will be injected into the company to execute this business plan.
3. Products and Services
3.1. Market Opportunity
The consulting market in the GCC rose to new heights in 2017, recording a growth of 6% and reached a total value of $2.8 billion. With the rising economic progress and increasingly competitive market, the companies face new challenges constantly and in order to overcome such challenges, the services of consulting firms are sought after increasingly. These consulting firms help the client organizations combat difficulties and overcome bottlenecks and roadblocks to success and financial wellbeing. There are a number of emerging areas where management consulting firms dispense their services such tax consulting and entrepreneurship in the GCC region.
In addition to management consulting, there are non-management areas as well where consulting firms are making their mark such as entertainment and sports. Entertainment industry can benefit from consulting services to improve their performance and bottom lines by enhancing how they deliver the product to customers, for instance, a consulting firm can assist an artist in managing their public tours and concerts by engaging in event management and venue consulting to ensure the concert or music performance gets delivered to the audiences in the best possible manner. Similarly, the world of sports can also benefit from consulting services as there are sports clubs and agencies that need support to enhance their portfolio and performance to increase public engagement and enhance their revenues.
3.2. Products and Services
Stanford Consulting provides a diverse range of services across a number of different areas namely management, entertainment and sports consulting.
Tax Consulting- The company provides expert tax consulting via its skilled in-house experts who are well versed in taxation and specially VAT, planning and legal compliance. Our experts help corporations and clients prepare and execute efficient tax returns while minimizing tax liabilities. We give our clients best advice on all aspects of UAE and global VAT & customs duty, whether you are a global head of indirect tax or a sole trader we help to reduce the cost of VAT and duties, simplify procedures and ensure compliance.
Starting a New Business- The FTZ (free trade zones) are hotbeds for new businesses and attract the attention of a lot of entrepreneurs as well as established companies from around the world. No doubt one of the main fears companies face when starting a business is what free-zone is the best to suit their work, that’s where we come in and guide them through each step and steering their organization in the right track.
Problem Solving- The company specializes in addressing organizational issues and devising practical and sound solutions to provide impetus to growth and profitability. The company deals with organizational scenarios related to profit and loss, increasing revenue and developing pricing strategies for new products and services. All solutions are provided bespoke as per the specific organizational needs of different clients.
Specialty/Tribute Acts- Our entertainment consultants specialize in organizing and providing advisory and consulting servicers for artists and bands who wish to perform specialty and tribute acts. We understand the challenge of converting an idea into a real performance and how to guide the artists to create something unique and attractive for the audience. The service includes marketing management, venue management, technical setup, etc.
Music Residency Management- Basically, music residency management is an individual or company who guides the professional career of artists in the entertainment industry. The responsibility of the talent manager is to oversee the day-to-day business affairs of an artist, and our company specialized in live music and we are working to make it the best by seeing the work of the artists continuously, we also help artists to find new agents to work with. Our agents specialize in talent management and have broad connections in the industry that can be leveraged to get better deals to the artists and increases their bottom line and enhancing their careers.
Corporate Party Entertainment- This incorporates managing events for corporate clients, there are various types of corporate events that make use of entertainment like parties, for example when we plan to do an event we use some ideas to make the event desirable such as providing interactive food and drinks stations, doing some photo shooting in the event for the people because they enjoy taking photo booth selfies, sometimes a corporate comedian, magicians, dancing shows, etc.
Talent Management and Negotiations- Our agents specialize in negotiation tactics and getting the best deals for sports organizations and clubs out there in the GCC region. We ensure that such organizations land the best deal and create a win-win situation for both the sports persons and the sports clubs and organizations. This can be basically described as strategic talent management that we provide for such agencies.
Event and Venue Management- Our agents specialize in handling and managing sports events by making sure the client organization avail the best venues and set up related services to reap the best possible benefits out of an event. Whether its venue selection, event marketing, audience management, we specialize across various facets of sports event management.
3.3. Mission, Vision and Keys to Success
The company’s main mission is to provide best in class consulting services across diverse fields of the industry such as management, entertainment and sports. The company wishes to emerge as a conduit of major consulting services supporting and promoting business across the GCC region as well as globally.
To be proactive in professional development in our field, and to help our customers improve their business processes and performance and to make customers trust us and give them quality and reliable solutions. The company wants to be seen as an international entity serving a global clientele across many countries.
Keys to Success
Striving for 100% satisfaction of all clients
Provide bespoke and customized solutions as per specific client needs
Flush sales for the first twelve to eighteen months of business operations and reach the projected targets
Raise the desired amount of funding to execute the business plan
3.5. Core Competencies
Strong Domain Knowledge- Stanford Consulting holds a strong team of individuals with prominent knowledge of the consulting field talented across areas such as management, entertainment and sports. This knowledge and skill is put to use in providing the most reliable and practical solutions in the GCC region.
Diverse Range of Services- The company boasts of a diverse range of services varying from areas such as management consulting, entertainment, music, sports and fitness. The company wishes to a be one-stop solution for all major consulting requirements in the fast emerging markets in the GCC region as well as worldwide.
Cost-Efficient Solutions- The company firmly believes in providing cost-efficient solutions and ensure the clients get what they pay for. The pricing strategy of the firm is to provide specialized consulting services at the most reasonable prices in the market.
4. Market Overview
4.1. Customer Segmentation
Fig 3.1. illustrate the customer segmentation of the company, the organization seeks to serve both B2C and B2B clients in the GCC region.
Segment Type Description
B2B Companies- Already established companies in the GCC as well as worldwide who wish to avail specialized consulting to improve business processes and performance, as well as client organizations who would contact the company for entertainment consulting.
Startups- Young companies that seek to establish their business in the GCC region.
Music Agencies- Record producing agencies as well as other organizations related to music industry who seek to improve performance and/or wish to avail consulting services to manage events.
Event Management Agencies- Other event management agencies can also benefit from our services, where we help them organize events through our expertise and network of contacts in the GCC region
B2C Individual Artists- We help individual artists and aspirants in developing and managing their professional career
Fig 3.1. Customer Segmentation
4.2. Market Size and Growth
The consulting market in the GCC region grew by 6% to a total value of $2.8 billion in 2016. According to a new study the UAE together with other gulf countries show potential to develop fastest growing consulting market in the world. The study also reveals that the business consulting industry had increased by 20% since 2013, which is the biggest growth on a global scale. According to another report the consulting market in the UAE grew by 4.3% to round about $788 million in 2016. All these figures and trends point toward a brighter future for the consulting market in the GCC as well as UAE region, however, with the fast growth of the market competition will toughen up and consequently new entrants will have to offer strong differentiation in their services to counter competition from established players in the market, such differentiation can come from providing enhanced or specialized services to low cost services in comparison to other big players in the market.
4.3. Market Opportunity Size
Fig 4.2. Market Opportunity Size
Total Available Market (TAM)- The total available market is calculated as the total consulting market estimated in the GCC region which is close to $3 billion as per the figures as aforementioned.
Serviceable Available Market (SAM)- The total available market is the consulting market in the UAE as that’s where Stanford Consulting will operate, which is close to $800 million.
Serviceable Obtainable Market (SOM)- The serviceable obtainable market is calculated as per the forecasted revenue of the firm, which is approx. …..
4.4. Competitive Landscape
Fig 4.3. Competitive Mapping
Stanford Consulting has competitive advantages as both service as well as cost differentiation, where the company provides a large range of services across diverse areas and specializations, while most of the competing firms only focus on few socializations, on the second hand, the firm provides these services at a lower cost as compared to other established firms in the UAE and GCC market.
5. SWOT Analysis
5.1. SWOT Canvas
The company seems to have strong differentiation as aforementioned in chapter 4 in terms of service as well as cost differentiation. The team has members who are experienced with in depth domain knowledge and skills to deliver specialized services in the consulting industry.
Since the company lacks the required capital investment, the organization has low market exposure, this weakness can be countered by raising sufficient funds to execute the business plan.
The Consulting market in the GCC as well as UAE region is booming and poses interesting prospects for consulting firms in the near future, the economy is surging in the region as well which will give way for increased industrial activity hence, increased demand for consulting services. The entertainment and sports industry is also a growing industry in the GCC, which will support organizational growth in the relevant verticals.
There are big players in the consulting market with major market share, the competition from such firms unless new entrants such as Stanford Consulting could come up with strong differentiation and unique value proposition for potential clients.
6. Operations Summary
6.1. Organizational Structure
Fig 6.1. Organizational Structure
The company will have simple organizational structure as depicted in fig 6.1. There will be five core departments namely, consulting wing, human resources, marketing and sales, finance and accounting, and lastly, IT. The most important department, the consulting wing will have three major vertices- management consulting, entertainment consulting, and sports consulting.
6.2. Core Departments and Functions
Consulting Wing- The consulting wing will be the key resource of the organization which will be divided into three major verticals, namely management consulting, entertainment consulting and sports consulting.
Human Recourses- The human recourses department will take care of recruitment of new employees, employee and payroll management as well as training and development of new staff.
Marketing and Sales- The marketing and sales department will take care of company’s promotional strategy which will be further divided into offline and digital marketing. The sales department will take care of online sales through customer executives as well as field sales via sales executive who will liaison with prospective clients to bring business to company.
Finance and Accounting- Finance and accounting department will take care of managerial finance to oversee the financial wellbeing of the company as well as day to day accounting.
IT- The IT department will be responsible for maintain the website and office network and computer systems
7. Marketing & Sales
7.1. Value Proposition
The company’s main value prospection can be summarized in the following statement:
‘Stanford Consulting is a new-age specialized consulting agency that seeks to offer customized services across various industrial areas in order to improve performance, business processes and enhance the bottom line.’
The company will offer a wide range of services across several industrial verticals such as management, entertainment and sports in a cost efficient manner, where such services will be made available at a much affordable prices than other similar firms.
7.2. Go-to-Market Strategy
What to Sell
Specialized consulting services to increases performance and enhance bottom-line, the company wishes to deliver customized services as per specific client needs and requirements as well as organizational goals and objectives. The company provides consulting services from formulation to implementation.
Whom to Sell
The company will mainly target B2B customers such as consumer goods companies, entertainment and music related firms and agencies, sports organizations, etc. The company will also target individuals such as music artists to help them manage and enhance their career.
How to Reach Target Market
Search Engine Marketing- The company will engage in search engine marketing such as Google AdWords to enhance its visibility on search engines such as Google.
SEO- Search Engine Optimization will help the company improve its ranking in search results, this will in turn make the company more noticeable by online users.
Email Marketing- The company will make use of bulk email marketing to a targeted set of recipients to spread the word and educate them about the company’s services and its benefits.
Online Sales Team- There will be dedicated team of online sales executives who will take care of prospective customer queries and as well as conduct customer account management to retain existing clients.
Field Sales Team- The field sales executive will liaison with prospective clients face to face and try to convert the same into paying customers.
Where to Sell
The company will be situated in and will be active in Dubai, UAE. For the first few years, the company will remain active in the UAE region and afterwards the organization will spread its operations to other parts of the GCC region.
7.4. Sales Forecast
Fig 7.1. Projected Revenue
Fig 7.2. Projected Revenue Statement
Fig 7.1. and 7.2. illustrate the company’s revenue over a period of the next five years. The organization is projected to grow at a CAGR of approx. 70% with the revenue crossing the 1 million mark in the 4th year.
8. Financial Plan
8.1. Core Assumptions
Inflation rate assumed at 10% each year
The company is assuming to have raised the required funding
Economy is assumed to remain stable and corporate spading on consulting to increase
The company is assumed to have expanded its operations to other parts of GCC region in the five-year period
The company will start as a small organization with few employees and will hire more employees and expand its workforce in subsequent years
8.2. Funding Requirements
Marketing and Sales 300,000
Legal and Company Formation 100,000
Web Development 200,000
Other Cash Expenses 200,000
Fig 8.1. Fund Requirement and Allocation
The company is projected to require funding in the amount of approx. 900,000 to 1 million. Fig 8.1. clarifies how the raised funds will be used and allocated.
8.3. Projected Income Statement
Fig 8.2. Projected Income
Fig 8.3. Projected Income Statement
Fig 8.2. and 8.3. illustrate the projected income statement for the five-year period, the company is projected to attain profitability from the second year onwards then grow substantially thereafter.
8.4. Projected Cash Flow Statement
Fig 8.4. Projected Cash Position
Fig 8.5. Projected Cash Flow Statement
Fig 8.4. and 8.5. illustrate the company’s cash position during the five-year period, the company will be able to maintain positive cash balance in light of the equity raised from the investors despite incurring loss in the first year.
8.5. Projected Balance Sheet
Fig 8.6. Projected Balance Sheet
Fig 8.6. illustrate the projected balance sheet, the figures show healthy growth in company’s net-worth over the five-year period.
8.6. Business Ratios
Fig 8.7. Business Ratios