Final Report on Advertising Marketing Consulting and Accounting & Bookkeeping Business Plans
Business plan is a blueprint of any business that gives an idea about the services it will be offering and how they will be offered. This report is the continuation of draft that familiarized the readers with two selected business plans. However, in this report, a brief description of each selected business plan will be included along with the strongest and weakest component of each business. At the end of report, recommendations have been given for both selected business plan in the context of improving upon them.
Description of each company’s business plan
The first business plan is Advertising Marketing Consulting Business plan which is undertaken by Pioneer Consulting. The primary focus of this business plan is on working closely with clients and helping them in succeeding in meeting their marketing goals. The key services which this business will be including are
- Development and preparation of strategic marketing plans and programs.
- Designing of overall advertising or public relations strategies
- Key market segmentation identification plans and programs
- Industry trend analysis
- Execution of marketing implementation plans and programs.
The ROI is expected to be achieved after three years.
The second business plan is Accounting and Bookkeeping Business Plan that is undertaken by The Sorcerer's Accountant. Currently, the firm is offering tax accounting, management accounting, QuickBooks set up and training for the small business clients. However, the company is having the business plan offering of one-person model services to their clients. They have a plan of offering bookkeeping services with the oversight of a CPA at a price which their clients can afford. The net profit which is estimated to be achieve in first year is less than $ 40,000, however in third year, it is estimated to be $60,000. Following are the bookkeeping services which they are planning to add into business.
- Bank reconciliations
- Inventory management
- Financial statement preparation
- Accounts payable
- Payroll processing
- Accounts receivables
- Sales tax processing
- Other financial reporting
Identification three strongest components of each plan with justification
In this section, three strongest components associated with each of the selected business plan will be discussed. So, the strongest components of Advertising Marketing Consulting Business Plan are:
- The Advertising Marketing Consulting Business Plan has been focusing on two major market segments, i.e., small startup companies and existing small businesses. This is the first strongest components as small startup companies can rarely afford marketing consulting services and they do not have in-house expertise for creating strategic marketing plans. Also, the existing small businesses who have already done this with a limited success rate and are planning to expand their operations are covered. So, this business plan is highly suitable for these two market segments.
- The sales by year graph of this business is as follows
This graph shows that the sakes per year is $ 50,000 which is one of the strongest components of the business as the investment that is required to start this business is $ 350 and operational cost for 1st year is $12,000. Hence, huge profits can be gained.
- Third strongest part of this business is that the type of services it is offering is in high demand. This is because in 70% of cases, businesses fail in making a firm marketing strategy which impacts on the brand image of the business. So, the experts of Pioneer consultancy are the strongest component as it has won this year's Andrew Stiegman Marketing Competition.
Further, the strongest component of second selected business plan which is Accounting and Bookkeeping Business Plan are:
- The first strongest component is that Max Greenwood will be assigning a consistent bookkeeper to each business who will be trained with proper techniques. This would be helpful for the clients as Max Greenwood would be giving a single-person model services that are unique. This is the strongest component as clients prefer the accountants who are dedicated to their firm only as this reduces the chances of error and fixes the accountability to a single person.
- The second strongest component of the business is the combination of bookkeeping service and insights of CPA with lower level inexpensive labor. This type of combination is quite unique in Chicago bookkeeping service industry. Thus, it is strongest component as it would allow the clients with an advantage of having CPA review of their books and propose additional advice when suitable.
- Following is the graph which is showing the past performance of Max Greenwood.
The company has grown significantly in the past years with $175,000 in total revenue. Also, the client retention has been positive with 75% of 2008 clients repeating the service in 2009. Thus, making it to be the strongest part of the business plan.
Identification three strongest components of each plan with justification
In this section, three weakest components associated with each of the selected business plan will be discussed.
The weakest components of Advertising Marketing Consulting Business Plan are:
- The first weakest components associated with this business plan is lack of trust of businesses on outsourcing the advertising marketing plans as they think, it would lead to leakage of business’ personal details. Hence, it is hard to retain the trust of customers in this business.
- The second weakest component of the business plan is lack of appropriate marketing strategy to target startup companies and existing business companies. The business plan is not containing any sort of marketing strategy which is one of the weakest parts of it. Also, it is a weak component as without marketing strategy a business plan is not complete.
- The third weakest point of the business is that it is only targeting small startups and existing small businesses. It lacks in assessing the needs of medium to large size firms which invest more money in advertising their business. Also, the large firms are more interested and conscious for their marketing strategies.
Further, the weakest component of second selected business plan which is Accounting and Bookkeeping Business Plan are:
- The business plan of adding bookkeeping services in the current services of Sorcerer's Accountant will be performed by the part-time student bookkeepers who are the current undergraduate accounting majors with up to 20 hours per week free to work. However, here the weakest component is that it is hard to attract the clientele when the business services are provided by non-experienced person such as undergraduates. Thus, it will affect to the clientele of current business as well, so it is the weakest component.
- The web marketing plan of the business is not sufficient enough to target the business clients who are in need of bookkeeping service. Though the web marketing strategy includes listing the website of databases and other websites for small business services and bookkeeping services in Chicago, promotion through blogs, referencing website in print ads and the brochure, however no social media strategy has been followed. This is one of the weakest components of business plan as it lacks a strategized web marketing plan.
- The third weakest component in the Chicago accounting market is that, there is tough competition of bookkeeping services where SRJ Consulting, Shepard Schwartz & Harris accounting firms are already leading the market. Also, as the business plan includes the services to be offered by current undergraduate students, it is hard to remain in competition.
Recommendations on how business plans can be improved
On the basis of strongest and weakest component of both of the business plans, following are some of the suggestions that could be followed in order to improve the business plans.
Suggestions for Advertising Marketing Consulting Business Plan
- The business plan can improve its market segmentation as they can also target the medium to large size enterprises as well. This will increase the sales of business plan.
- For delivering advertising marketing advices to their clients, the business plans itself need an effective and unique marketing style so as to reach the clientele which is missing in the business plan.
- As their strongest point is that it provides marketing suggestions to the firms as most firms fails in making effective marketing strategies. So, it is recommended that they should work more on improving their suggestions and planning for their clients.
Suggestions for Accounting and Bookkeeping Business Plan
- The weakest component of this business plan is that bookkeeping services are provided by undergraduate students, so, it is recommended that the business plan must include an experienced team.
- Further, it is recommended to bring more uniqueness in the services of business plan as it is tough to remain in competition in Chicago accounting industry.