Business Plan

(Source: Entrepreneurship: A Process Perspective, 1st ed., by Robert Baron and Scott Shane)
Scope of the Business
I plan to start a business consulting service affiliated with USA consultants (a
nationwide business consulting firm).
History of USA Consultant. USA is over 30 years old. It originated in Boston and Atlanta. It
started out as P. Miller Management Consultants. The name changed to USA in 1972. Paul
Miller III is the current president of USA, which has over 160 consultants in more than 50 cities.
Specific Areas of Focus
Company (Brochure Available on Request)
1. Analysis Phase
2. Implementation Phase (selected examples)
a. Marketing programs
b. Organization planning
c. Personnel training programs
d. Cost reduction programs
e. Loan package preparation
f. Inventory control systems
g. Financial control and reporting
h. Mergers and acquisitions
i. Strategic business planning
j. Business evaluation
Personal. With my accounting background (CPA‐inactive) and current experience consulting
with small businesses, I would concentrate on:
1. Analysis phase
2. Implementation phase—especially on:
a. Organization planning
b. Loan package preparation
c. Strategic business planning
d. Financial control and reporting systems
3. USA continuing education programs in various areas in which I could update my skills.
This case presents a business plan for a proposed management consulting firm. This plan was prepared by a
graduate student in business who set up the firm to support himself both during and after his period of graduate

1. I plan to begin the business July 1 and operate it part‐time for three months. I will limit
my hours to 32 per week. I will still be eligible for full‐time benefits including health
insurance and tuition remission. I will go into the business full‐time starting October 1.
2. I plan to continue pursuing a Ph.D. in business administration. This is entirely
compatible with the consulting business. (See attached projected cash flow
Financial. I plan to reach the following cumulative gross billing goals:

Six months $22,500
Twelve months $86,500
Eighteen months
Twenty‐four months

Management Capability
See attached résumé
Strong Points
1. Four years of consulting experience with Small Business Development Centers.
2. Admitted to Ph.D. program at the university in business administration. Major:
Management; minor: International Business, with current G.P.A. of 4.0, out of possible
3. Accepted by USA. USA advertised in the Wall Street Journal, Inc., and USA Today. To
date, they have received over 3,000 applications but approved only 158.
4. Education will be continued through schooling and USA’s continuing education program.
1. Review of the Minneapolis—St. Paul Webb’s Directory on Management consultants
shows no direct competition.
2. Typically, consultants specialize in one to three areas. No firm can offer the wide range
of services that USA can.
Internal: There are two other USA consultants in Minneapolis—St. Paul area. One started his
business in December of last year, and the second is just starting. Both are on the Minneapolis
side of the river. There appears to be plenty of room in the market for a third USA consultant.

Customer Analysis: USA billing rates are $125/hour to $300/hour. These rates will preclude
very small businesses from using my services in most cases. The firms that appear to be best
suited for using a USA consultant would be firms with 30 to 400 employees. These firms can be
identified through the use of Webb’s Directory and various other publications.
Reaching the Customers. There are three primary methods to reach customers:
1. Salespersons. USA will assist the consultant in hiring and training.
2. MAS services to small accounting firms. USA works with accounting firms that do not
have an MAS department to provide them with consulting services.
3. Personal contacts. Extensive contacts have been developed on both sides of the river
and will be used to assist in identifying potential customers.
Market Trends. Many businesses today are downsizing. Typically, the person that businesses
are outpacing is in middle management. Businesses will still have the same problems as before.
Businesses will then turn to a consultant to assist in solving these problems.
Amount Needed:

Initial deposit*
Working capital***
Bank financing
Personal collateral (certificate of deposit)

*To be refunded when $50,000 in gross billings have been achieved
**Supplies include Webb’s Directory, file cabinet, office supplies, shelving, business subscriptions, and business
***See attached cash flow statement for details.