I. Executive Summary
This Section's Contents
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Business Overview
[Company Name], located at [insert location here] is a new small business consulting firm providing a wide range of advisory services to small local businesses. The company will operate in a professional setting, conveniently located next to [notable bank] in the center of the business district. [Company Name] is headed by [Founder’s Name], an MBA Graduate from UCLA with 20 years of experience working as a business consultant, both for internal and external clients.
Services
[Company Name]will focus on close client relationships. [Founder’s Name], the lead consultant, will provide one-on-one consulting sessions with clients, group sessions with client teams, strategic planning services, fundraising consulting, and webinars of general interest to clients and potential clients.
[Company Name] has a full-time assistant who will contribute to research and analysis for client engagements. The assistant will also support the business through administrative services.
[Company’s Name] services will be offered either as consulting sessions and short-term research and analysis for an hourly rate or defined projects on a fee-basis.
Customer Focus
[Company Name] will primarily serve service sector businesses within a 20 mile radius of our location. The demographics of these customers are as follows:
- 1,500 businesses
- Under 100 employees (Average is 42)
- Privately held companies
- Top represented sector: Retail stores
- Average annual payroll for firms with 20-99 employees of $1.3 million
These small businesses face many challenges, from seeking additional funds, strategizing how to expand, moving from owner-operator models to professional management, and incorporating industry best practices. [Company Name] will seek contacts with business startups to start relationships early as well as established small businesses in service sectors.
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been aconsultant for the past 20 years. He spent the first 10 years of that time as an internal consultant at Richards Technology Services.There he analyzed dozens of business units within the company, working with the top management of each to create strategic plans for future growth and deal with pressing challenges. After leaving RTS, [First name] was a senior consultant for Bain & Company for 10 years, where he worked with a variety of medium and large service industry business clients on general strategy and expansion strategy.
[Company Name] will also employ an experienced assistant to work as a business analyst and to help with various administrative duties around the office. [Assistant’s name] has experience working with C-level executives and has spent significant time as an analyst.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed local businesses and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- Our location is in an economically vibrant area where new businesses are starting at a fast rate.
- The management team has a track record of success in the small business consulting business.
- The local area is currently under served and has few independent small business consultants offering specific expertise in the full range of small business problems.
Financial Highlights
[Company Name] is seeking a total funding of $82,000 of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Office design/build: $49,000
- Working capital: $33,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Financial Summary | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | $252,153 | $396,667 | $658,556 | $1,196,480 | $1,977,070 |
| Total Expenses | $205,061 | $335,364 | $529,681 | $790,035 | $964,307 |
| EBITDA | $47,092 | $61,304 | $128,874 | $406,445 | $1,012,763 |
| Depreciation | $7,280 | $7,280 | $7,280 | $7,280 | $7,280 |
| EBIT | $39,812 | $54,024 | $121,594 | $399,165 | $1,005,483 |
| Interest | $5,304 | $4,641 | $3,978 | $3,315 | $2,652 |
| PreTax Income | $34,508 | $49,383 | $117,616 | $395,850 | $1,002,831 |
| Income Tax Expense | $12,078 | $17,284 | $41,166 | $138,547 | $350,991 |
| Net Income | $22,430 | $32,099 | $76,450 | $257,302 | $651,840 |
| Net Profit Margin | 9% | 8% | 12% | 22% | 33% |
| Full-time Consultants | 1 | 2 | 3 | 4 | 5 |
| Client Base | 42 | 63 | 96 | 162 | 243 |
