Business Plan 1726 Essay Example

related markets such as the rest of Latin America, the Far East, and similar regions.In addition, we will actively pursue chances to acquire percentages in product outcomes through brokerage positions and representation positions.

Company Ownership

Progressive Consulting, a California C corporation located in Los Angeles County, is currently owned and operated by its primary investors. At this point, no charter has been established, and the company is still considering various legal formation options.

Startup Summary

The total expense for starting up, which includes legal costs, logo design, stationery, and related expenses, is $73,000. The required assets for startup include $3,000 in short-term assets such as office furniture, and $1,000,000 in initial cash to handle the first few months of consulting operations. This is necessary as sales and accounts receivable affect the cash flow. The details are provided in the table.

Company Services

Progressive offers expertise in channel distribution, channel development, and market development. These services are sold and packaged in various ways that allow clients to choose their preferred relationship. The options include retainer consulting relationships, project-based consulting, relationship and alliance brokering, sales representation and market representation, project-based market research, published market research, and information forum events. The initial office will be established in A quality office space in the Los Angeles County "Dearborn Valley" area of California, which is considered the heart of the U.S. high tech industry.

Progressive provides the necessary expertise for a high-technology company to expand its product distribution and enter new market segments. This can be done through high-level retainer consulting, market research reports, or project-based consulting. Retainer consulting involves acting as an extension of

the client company's business development and market development functions. We begin by thoroughly understanding the client company's situation, objectives, and limitations. We then discreetly and confidentially represent the client company, analyzing new market developments and opportunities that are relevant to the client. Additionally, we represent the client in initial discussions with potential allies, vendors, and channels.

Project consulting is a service that is proposed and billed based on the projects and milestones. It allows client companies to utilize our expertise and solve specific problems, create and execute plans, and gather specific information.

Market research, on the other hand, offers group studies to selected clients at a rate of $5,000 per unit. These group studies provide a comprehensive analysis of a particular market, channel, or topic. For instance, they could entail research on emerging consumer channels in Japan or Mexico, or explore the consequences of software margin changes.

Competitive Comparison

The competition in the market can be classified into three forms:

1. The first form of competition is companies choosing to handle their business development, channel development, and market research in-house. These companies rely on their own managers to fulfill these tasks as part of their regular business functions. However, our advantage over them lies in the fact that their managers are already overloaded with responsibilities and do not have the time to take on additional tasks such as new market development or new channel development. Additionally, Progressive has the ability to approach alliances, vendors, and channels confidentially, gathering information and initiating contacts in a way that corporate managers cannot.
2. The second
   

form of competition comes from high-level prestigious management consulting firms such as High-Tec and San Diego Consulting Group. These firms are generally generalists but venture into specializing in specific areas. Their weakness lies in their management structure, where partners focus on selling new jobs while inexperienced associates deliver the actual work. In contrast, we position ourselves as experts in our specific fields and guarantee that top-level professionals will handle the work for our clients.

The companies mentioned, such as Nomura Research in Japan and Select S.A. de C.V., are strong rivals in terms of published market research and market forums. However, they are unable to offer the same level of expert consulting that Triangle will provide. Overall, the fourth category of competition includes smaller market-specific companies.

In Mexico (now affiliated with IEDC).

There will be a detailed explanation of sales representation, brokering, and deal catalysts for each individual case.

Sales Literature

A general corporate brochure will be the starting point for the company's positioning. This brochure will be created as part of the initial expenses. It is crucial to have high-quality literature and mailings for the first market forums in order to create a professional and appealing image. The owners of the business will handle key fulfillment and delivery. The true value of the company lies in their professional expertise, which is a result of their experience and hard work.

To ensure the highest quality of services, Progressive

Consulting will prioritize the expertise and education of our team members. However, we will also hire qualified professionals on a freelance basis for market research, presentation development, and report creation. These are areas that we can outsource without compromising our core values. Our company will always have the latest Windows and Macintosh capabilities, including:

• Comprehensive email facilities in Internet, Compuserve, America Online, and Applelink. This allows us to directly interact with clients by sending drafts and information via email.
• Complete presentation facilities for creating and delivering multimedia presentations on both Macintosh or Windows machines. These presentations can be in various formats such as on-disk, live, or video.
• Full desktop publishing facilities for delivering a wide range of materials to our clients. This includes regular retainer reports, project output reports, marketing materials, and market research reports.

Future Services

In the future, Progressive Consulting will expand its coverage to include additional markets like all of Latin America,
the Far East,
and Western Europe.
We will also venture into serving additional product areas.

Areas of exploration encompass telecommunications and technology integration. We are also contemplating the provision of services like newsletters, electronic newsletters, or specialized reports.

Market Analysis Summary

The primary target audience for Progressive will comprise high-technology manufacturers in computer hardware and software, service providers, and networking companies. Our goal is to penetrate markets in the United States, Europe, and Latin America. While our main focus will be on larger companies, we may occasionally include medium-sized companies as well.

Our company primarily targets executive professionals working in large corporations, such as marketing managers, general managers, and sales managers. These individuals are responsible for overseeing international or market-specific projects and prioritize efficiency and quality

over cheap or unreliable information. They place high importance on safeguarding their company's reputation and name while exploring new business opportunities.

Market Segmentation

• Progressive primarily targets large manufacturers of high-technology products like Apple, Hewlett-Packard, IBM, Microsoft, Siemens, or Olivetti. These companies rely on Progressive for outsourced development functions, market research, and market forums.
• Triangle offers an attractive development alternative for medium-sized growth companies in software, multimedia, and other high-growth fields. These companies may have management constraints that prevent them from pursuing opportunities in new markets or market segments.

Industry Analysis

The consulting "industry" is characterized by fragmentation and disorganization. It consists of numerous smaller consulting organizations and individual consultants as well as well-known companies. The participants in the consulting industry range from major international consultants to tens of thousands of individuals.

Progressive faces the challenge of establishing itself as a reputable consulting company and a low-risk choice for corporate clients.

Industry Participants:

The consulting "industry" is fragmented and disorganized. It comprises thousands of smaller consulting organizations and individual consultants alongside well-known companies. At the top level are a limited number of established major names in management consulting.

Many of these organizations are partnerships formed in major markets worldwide. They are interconnected through directors and share the company name and knowledge. Some of them originated from accounting firms like Arthur Anderson and Touche Ross, while others came from management consulting firms like McKinsey and Bain.

These consulting companies have high rates and maintain substantial overhead structures. They operate on a model where partners sell and junior associates carry out the work. In addition, there are specialized consultants at an intermediate level, such as market research firms like IEDC and Dataquest,

as well as channel development firms like ChannelCorp, Channel Strategies, and ChannelMark.

Some types of consulting involve individuals who are looking for a job and offering consulting services temporarily.

Distribution Patterns

Consulting is mainly sold and purchased through word-of-mouth, with relationships and previous experience being the most important factor. Major consulting firms have locations in major cities and markets, and high-level managers or partners generate new business through industry associations, business associations, chambers of commerce, and social associations such as country clubs. Medium-level firms are usually specific to a certain area or function and do not have the ability to expand their business through distribution.

The consulting firm’s professional reputation and reliability are crucial factors for Progressive clients when making purchase decisions.