Executive Summary
Triangle solution is a business consulting firm which has been around for the past 12 years. Currently the business has tailored its services to cater for the needs of corporate clients.
After observing the current market situations and projecting future industry trends, the company concluded that it would be prudent to design services to cater for individual retail clients. Particular, an opportunity to offer training in strategic career planning and financial management to individuals exists (Telfer, 2009). The potential market size is quite large as measured by total sales value.
Total sales value is the amount of money the retail client would be willing to use acquire the services which will be offered by the company (Thompson, 2005). This method was suggested since measuring the total sales volume would be a rather daunting task. Approximately the size is 40 billion; this figure is estimated based on the amount expected to be spend by the employed and self-employed middle and high income earner. This group form the target market (Lennox & Becker, 2008).
The organization also recognizes the importance of having a diverse and multidiscipline workforce. Therefore, it intends to acquire the services of financial experts, career planners, marketers, researches, sales consultants and last but not least financial experts. These professional will be in charge of different roles and responsibilities all dedicated towards serving the client better.
Similarly, the business is expected grow over time and therefore variable cost will automatically increase. However, the KISS approach will be adopted to maintain favourable product scalability (Lennox & Becker, 2008). An intrepreneurial approach that involves setting up a subsidiary to manage the retail tailored service is the most appropriate approach that can ensure the organization achieve its ambitious sales target.
Business Description
Triangle solutions, a Business consulting firm with its headquarters in New York, was established in 1998. Over the last 12 years, the company has established itself to become one of the most respectable and recognized firm specializing in human resource planning and development, strategic management, and financial consulting.
Its stakeholders are very proud of its achievements, particularly in helping its corporate clients formulate and implement their business strategy and as a result achieve tremendous success. Nonetheless, the research and development department feel that the organization should extend its services to target potential retail clients.
Retail Services
The decision to offer retail services was arrived after it was established that most consulting firms only focus on corporate clients. Individuals therefore find it difficult to formulate conclusive strategies that will help them achieve their career and financial aspiration. Being able to formulate a strategy that will enable individual achieve success in the two key areas is as important to them as it is to the corporate clients (Telfer, 2009). Therefore triangle solutions, intends to offer training and development programs in the field.
Market size
Determining the size of the market is usually a daunting task since the necessary data and information needed for this purpose is hardly ever organized (Thompson, 2005). However, this can be estimated using consumer demographic and consumption patterns. In simple terms, the market size is the total sales volume and/or value in the market (Thompson, 2005).
In this particular situation the sale value will be most useful. This is because it is measured in terms of the amount of money spent by individuals to acquire training in the field of career development and financial management. Measuring the sale volume is almost impossible in this case since the services cannot be quantified in terms of units sold.
In order to be more accurate on the market size, the organization will consider only the sales value of their niche market. The organization will target the employed and/or self-employed middle and high-income earner. There was no readily available figures to indicate the amount of money spend by this group on the services. However based on the case studies and competitors analysis, the annual sale value is approximately 45 billion dollar (Lennox & Becker, 2008).
Personnel Requirement
To successfully offer the proposed services, the organization must ensure it dedicates a well able team. The team therefore must fulfil certain requirements. The senior manager in charge of overseeing the progress of retail strategic training and development programs will be expected to have skills, experience and knowledge in public relation and marketing. In the first stages, the company intends to employ 4 career planners.
These specialists are expected to help clients in the evaluation of jobs and careers, resume writing, analysing the industry, counselling and training through seminars and workshops. Therefore, they should have experience, knowledge and skills in training, communication and people’s management.
To maintain an intelligent right sizing and avoid unnecessary costs associated with human resource management, triangle solutions will combine the duties of a financial analyst and planner. As result, 5 financial analysts will be charged with this role. They should have financial and researching skills.
The company will invest in two charter financial analyst to attain competitiveness in filed. Lastly the company will partner with independent sales consultant. The consultants will be chosen based on the experience, skills and proven performance track record. Bonus system, based on the amount of sale successfully executed will be adopted.
Product Scalability
Judging by the business model to be adopted and the capability of the workforce team, it is expected for the business to grow rapidly. Luckily, due diligence have been conducted to ensure the increased in variable cost does not have negative impact on the contribution margin. Variable costs usually increase as a result of increase in expenses (Lennox & Becker, 2008).
In this particular case, the costs are expected due increase in salary and wages as result of employing more staff for expansion purposes. However to maintain a high scalable range, employees will only be added if an increase in demand for the services is experienced. This rule nonetheless excludes the sales consultants because they are paid on commission basis which is purely based on performance. Are Kip It simple Approach (KISS), is also going to be used to resolve any issue reducing the scalability range.
Venture Cost
After conducting a prior analysis, the following costs are expected to be incurred.
Profitability
Due to the nature of the proposed business, most of the total cost fall under the category of operational cost. Sales projection is used to estimate the potential profit to be gained from a business idea (Thompson, 2005). The first month the organization expects to get an approximately 1,000 clients who will spend 500$ dollars on the services. Therefore, the total sales will be 500,000$. To get the expected profit, you deduct the estimated cost from this figure. That is 500,000-92,500=407,500$.
Strategy
An Intrapreneurship approach is going to be adopted for this venture. One of the main reasons why this approach might be chosen is to regenerate the entrepreneurship spirit that might have been relatively reduced as a result of over expansion (Gannon & Patson, 2008).
Therefore, the retail services are going to be offered through a subsidiary that is going to be known as Triangle Ret Inc. Although, the subsidiary is still part of the parent company, the strategy shall give the multidisciplinary team the autonomy to practice their creativity and innovation. As earlier describe this team comprises of people from diverse professional background namely; marketing, public relation, finance, career planning, analysis and research.
As indicated by previous research, a diverse workforce has the potential of increasing creativity and innovativeness, a factor that is going to serve the new venture well (Gannon & Patson, 2008).
Some of the employees already working on the parent organization will be presented with the offer of working in the subsidiary. Also, another benefit of adopting this strategy is to mitigate the risk associated with operating in the corporate business consulting industry. The risks mostly result from either competition or legal factors (Gannon & Patson, 2008).
Conclusion
With feasibility study having been conducted, it is expected triangle solution new venture will be profitable. The fact that intrepreneurship approach provides an opportunity for the multi-disciplinary team to be innovative and creative, the new subsidiary, Triangle Ret Inc, will definitely be competitive. The scalability of the product, assures interested parties such as investor that continuity of the business is almost certain.
References
Gannon, M., & Patson, L. (2008). Intrapreneurship-The way to Achieve Competitive Edge.London: Rutledge.
Lennox, K.,& Becker, N. (2008). A Guide to Setting-Up a Business. St Luis: Mosby.
Telfer, G. (2009). Consulting for Sustainability: Re-Branding Consulting Business. The consulting industry report, 4(3), 10-25.
Thompson, L. (2005). Determining the Feasibility of a Business Idea. New Jersey: Prentice Hall.