Business Plan For an Engineering and Technical Consultancy Service

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Executive summary

The business plan is for Classic Engineering and Technical consultancy service to be located in a fast growing and developing town of Sunderland. The service is a sole trade kind of business which will employ professionals from the field of Engineering and construction. The consultancy office will emphasize on a variety of Technical Engineering services including detail design and drafting civil and structural engineering, mechanical engineering, electrical and instrumentation. The office will in addition, offer specification of a project with their data sheets and bill of material as requested by a customer. In the procurement section, the manager assigned by the consultancy office will evaluate, select and purchase a bid after an extensive research and consultation procedures. It is also in the interest of the manager to expeditiously evaluate the cost of a bid and exercise necessary cost controls. The office established will among its construction service offer administration of a contract while taking note of quality assurance. The personnel assigned from the consultancy office are under obligation to ensure inspection and testing of any installation made to the construction work. On the final step of project management operations and maintenance manuals are provided from the start up business venture. These services will be offered from the consultancy office.

Customers

Classic Engineering and consultancy service will target business men who want to establish rental buildings in the centre of the town and its outskirts. The market niche will also include international investors in various locations of the world for example road construction companies located in various national governmfast-growinged in the target are persons who want to establish their own buildings. In a study by a Gill (2005), business venture must offer real time solution to contractors and this will be among the objectives of the business. A strategy to be used in winning more customers is providing prompt services which as requested by the customers. Since the service to be provided appreciates scientific invention and innovations, projection on customer base is that demand curve will shift to the left an indication of increase in quantity demanded.

Management

The business will be managed by a strong team of professional personnel who hold a first degree in civil and structural Engineering from a reputable educational institution. The team will be headed by Paul Simon who has served as a general manager in a non-governmental organization for 26 years. His track record shows a clean service marked by successful execution of projects undertaken. Finance and accounting department will be under strict surveillance of Ruth Johnsons who has a well established background of internal control system necessary for an engineering firm and in this case a consultancy service firm. The success of start up business relies on strict financial controls instituted by financial manager. Since the business considers the needs of the customers as the top priority, then the management has to establish a very efficient team of customer service representative who will be sensitive to the target group and who will be prompt in delivery of services (Gibson, 2006). It is in the policy framework of the business that a continuous training schedule is appropriate for any manager in office. This is in recognition of the fact that principles of management are diverse in nature and it assumes development criteria. Therefore classic investment regards the management as the source of instructions and directions for the junior staff.

Objectives

The objective of the new start up consultancy service is diverse in nature and will cover both the aspiration of the customers and those of the organization. One of its objectives is to avail prompt services to the customers at any place in the world. This will go a long way in ensuring that construction work carried out around the world is safe as human habitat. While doing so, the organization will end up decreasing the number of accidents brought about by shoddy work done by some firms. To build a healthy society free of accidents there is need to streamline the engineering and construction department so that it becomes responsive to the people of the land. It also wants to demonstrate new developments in the construction industry by designing bridges, locomotives and buildings which are regular with the increasing population around the world. Its internal objective is to establish subsidiary companies in the Arab world and ultimately sharpen their quality of services through experimental scientific research. This is in line with developing infrastructure network which will withstand natural catastrophe like tsunami wave, earthquake and floods. While fulfilling the objectives, profit level will automatically exceed expectations (Rae, 2007).

Mission

The purpose of the new start up business is to avail consultancy service to the increasing number of Engineering and Construction companies around the world. This will have an effect of standardised construction fit for human habitation and usage. This will be achievable by the use of highly skilled and professional team working together while putting into practise the practical knowledge.

The Market and the Marketing Plan

The market for this investment is an integrated system of both corporate world and personal agencies. Classic investment through an advanced service promotion (via internet and investment website) will reach clients across the globe and will be working n a full time basis. Through recognition of the development through globalization, the market for the service is bound to take a new phase of fast growth pace. There is need to research on the new industry. This means collecting solid information regarding: the goals of the business venture, the target market group, the strength and weakness of the business, the profit margin to be realized from the business and finally the possibility of employing other business strategies. The marketing plan will focus on the objectives of the marketing and ways of achieving the objectives. In this scenario, the general purpose of the small business establishment is to maximize profits while availing special services to the customers (Wickham, 2006). It is also in its objectives to infiltrate other market segments of the world.

The target customer comprises various companies contracted by governments to build roads and bridges in their countries. It also includes private investors who want to build rental buildings, business buildings or rather commercial buildings in their business operation areas. Individuals who want to establish private houses of residence will be targeted in this business plan.

To be able to achieve the objectives it is important to lay emphasis on the benefits of the service rendered by the business. The consultancy firm through their engineers is able to design buildings tailored to customer’s satisfactions and needs. It is also able to avoid accidents brought about by collapse of buildings and any other poor construction works through design work. Another point illustrating the unique selling point of the business is its ability to conduct an intensive research in the field requested by the customers (Shane, 2004). The capital base of the business is such that it is able to handle any amount of workload. This is also supported by the team of professional employees and the continuous practical training offered to new graduates. The long run effect is a workforce able to deliver to the expectations of the customers.

Prices

To succeed in the market plan the business will put into use a differentiation strategy simply because of its unique selling point. This has the final result of translating the profits of the business into great margins. A reflection on closely related operational strategy will identify the pricing technique as one of the major tools in achieving a breakthrough in the market (Timmons, 2008). The low prices to be charged in the market will ensure a market penetration. The incomes from the business will be used to expand the business into other market segments around the world. In essence there will be no need for the company to run for profits, instead the company will be better of trying to increase its market niche by employing penetrating prices and later employ psychological prices that will maintain the customer while providing added value services to them. Anther pricing technique to be considered is that of the association of engineers and construction consultancy which has been standardized. The objective of this price level is to guard customers from exploitation.

Service promotion

To effectively win more customer base, advertisements and promotions must be done via various media. Pull strategy to be employed in the business require a direct interface with the customer. This is an aspect of public relations entailing use of topics of public interest to build rapport with the customers. The benefits of the service offered by the consultancy firm will be compiled printed in the media for customers’ attention. Budgets need to be effectively forecasted by determining the breakeven point. Projection of the results of the advertisement program determines the media to be exploited at all time. Considering the fact that the business has to offer a variety of services then corporate advertising is an excellent approach to reach more customers (Barrow, 2001). It entails promoting the identity of the business instead of the specific service.

Distribution

To distribute the business offering, subsidiary channels will be used. These are the outlet in full contact with the customers. Agents and other technical bench will be sent upon requisition by the customers. The team will be available at any time and place convenient to the customer. Factors discussed in this section form a basis for success in the business and therefore must be reviewed and monitored at all times in the progress of the media. These variables of prices, promotion, distribution and service are employed by the management to satisfy the customers (Hisrich, 2008). The diagram below will illustrate how they can be integrated for maximum output.

Service		Distribution

	Market to be targeted
Prices		Promotion

This diagram is relevant in illustrating the factors contributing to the state of market targeted by the business. The prices, services, distribution network, and distribution are fully responsible for setting a market for the business investment. Therefore an intensive research and review of the mentioned factors goes along way in making the business a success.

Competition

The new establishments will scrutinize the market to know the new competitors and therefore derive ways of managing them through handling the strengths and weakness. It essence, the SWOT analysis of the competitor and some of the strategies that the competitor uses will provide adequate and reliable information for establishing new strategies of edging out the competitor. The strengths, weaknesses, opportunities and threats as defined by the SWOT analysis will be of great use in regard to competitor analysis. The experience of the competitor and their major market niche will be analyzed with the possibility of taking over some of the customers. Financial power of the competitor and the description of the service rendered are of great importance when deciding on the possibility of quitting the market (Kirby, 2003). It is also important to note that consumer behavior analysis is the greatest weapon to use against your competitor. In this case, it is imperative to analyze the trends in terms of the consumer preference and taste, more so the changing technologies may play an important role in the analysis of a consumer changing trends. A business that is consumer oriented will definitely concentrate on the needs and the expectations of the consumer. This way is definitely the most efficient and ethical way of showing your companies competitors the way out of your market niche.

Environment

This factor has a direct impact on the business and its services rendered. Some of these environmental factors include the actions of the government with regard to taxes and safety requirement. The government of UK is more concerned with standards of services and the safety of it citizens. Obtaining a license requires an assurance of fair play from the party concerned. This has been achieved by the business though a rigorous training and recruitment procedures. It is a rule that any candidate recruited must have documentation and certificates from the training institution. The cost involved in the Engineering and construction field is enormous and requires specialized skills; government control on the price of the service will be minimized (Burns, 2007). As an environmental factor, demographics are a detailed description of a population. Aspects to examine includes; educational level, age income and geographical location. They merely determine the ability of a customer to demand a product or a service. While addressing environmental issues, it is important to note the value of technological change in the society. With information technology, it is possible to improve on design work and be able to serve clients efficiently. Communication between the client and the business is also improved by the use of electronic mails in communication. Cultural trends also form the basis of the business. The consultancy firm will embrace new design which is regular with the change in culture.

Operation and Production Plan

The business offers all manner of consultancy services including; planning and scheduling, detailed design drafting, procurement, bid solicitation and construction management of any project as advised by the customers. The business will offer new and innovative designs of economic value and which suits the clients. It is also in line with maintaining the technology and the arts. With the project management, the service to render to the client can be detailed as first defining the needs of a client, then preparing the bid documents after which the tendering process ensues. What follows is bid analysis, review of the construction and on a final note, contract administration and inspection of the warranty is completed (Deakins, 2006).

Settlement of disputes will also be available to the clients. These services include arbitration, and compiling of experts reports for litigation process. Since engineers will be concerned with examining construction work for mistakes and failures, the report made will be relevant for detailing on the options available for remedial action. The technical team will offer an estimate of budgets and they can be met easily. In the project consulting service, clients will use the expertise to develop their plans and put them into actions. Billing will be done as per project basis. In a residential building, inspection will be done as per client’s request. The parts to be inspected include the design of the building, its foundations, the mechanical systems, electrical networks, and the safety of the building like installation of fire extinguishers and availability of escape route (Baker, 2008).

Comparison with the competitors

A classic Engineering and construction consultant is capable of high level design work while maintaining the art technology. Visualization in three dimensions which aims at reducing conflicts with other design works will be highly regarded by the new start business. This aspect of visualizing will not only increase on the efficiency of the construction process but also increase the art and the architectural design which will in the end provide the end user the best possible solution for its business enterprise. Comparison with competitors shows that they dwell most on two dimensional views which reduce on their explicit view (Scott, 2003). Another competitive edge for the business is the quality assurance and control services it will offer its clients. This means that focus will be on maintaining standards of any projects through measurement.

It is also in the plans of the business to establish an integrated database and avail to its clients. The database will contain an organised system of sorting and layering of structural designs with the help of quick access tools. The system also includes the filing system which will enhance faster access to information. This is a strong indicator of business to customer relationship which will be boosted by this implementation. The competitors do not have an integrated system thus is an added advantage on the business.

Control systems

The business will operate under strict documentation and filling of procedures followed in design and installation process. The time for delivery will be highly dependent on the project and other related technicalities. Engineering and construction standards as stipulated in the laws will be highly regarded. This will ensure delivery of quality work within the shortest time period. The use of new technology and sophisticated tools in fulfilling task has an end result of quality work (Pfeffer, 2000).

Human Resources Plan

A highly responsive and competent human resource department is a basic requirement for the consultancy firm (Miles, 2003). This is because of its sensitive nature and the amounts of funds attached to the engineering works. There is need to recruit highly qualified professional engineers into the firm. A minimum of five years experience will be a requirement for the applicants. New graduates from recognized higher educational institutions will be considered for on-job training and a subsequent absorption. Personnel to be employed will serve on a permanent basis thus will benefit from the pension schemes. It is important to use rigorous recruitment procedures where a candidate is subjected into a written examination and the successful ones will go through a practical skill evaluation. Ethical standards and professionalism will be highly regarded. The following estimates are relevant for the human resource department during the First two years.

Personnel	1^st year, pounds	2^nd year, pounds
The owners	50,000	52,000
The office manager	25,000	25,500
Human resource manager	22,000	22,600
Technical team manager	26,000	27,000
Permanent employees	15,000	15,000
Temporary employees	10,000	10,100
Total personnel	20	20
Sum total payroll	148,000	150,200

The estimates above will cover a period of two years.

Plan for capital resources

This refers to the ownership of capital resources of the business establishment. The starts up capital meet the following initial expenses: legal expenses fee, licence, stationary, office equipment and furniture, and fee for operation permits. The remaining cash will be placed in the business cash accounts to take care of recurrent expenditures. The premise for the new business will be on a rental building located in the major town of Sunderland. The measurement of the premise is 50 meters squire. At this place there will be a need for fax machine and internet connection. The cost will be factored on the estimates budgets. Its website will be www.classiceac.uk and the email address is [email protected]. The website to be developed will be an interactive one to be used for marketing and other promotions.

The following cost estimates breakdown is relevant as capital base for the establishment.

Initial funding	Amount, pounds
Expenses	55,000
Assets	50,000
Assets
Liquid cash asset	50,000
Non-liquid cash asset	0
Liabilities
Short-term liabilities	0
Long-term liabilities	5,000
Outstanding liabilities	0
Current liabilities	0
Capital
Investor	0
Owner	50,000
Start up expenses	30,000
Total capital	20,000
Total capital and liabilities	25,000
Funding start up expenses
legal	500
professional liability insurance	3,500
office furniture	15,000
rent	2,000
computer and office equipment	26,000
cash account	5,000
development of website	1,500
business license	1,000
Total requirements	55,000

Financial plan

To be able to have a good financial forecast, it is necessary to make a few assumptions. Among the assumptions is that the economy of United Kingdom is operating under a low inflation levels (Laermer, 2007). The amounts of recession are minimal and would not affect the operation of the business. It is important to apply ceteris paribus with regard to delivery of engineering services. This means that under the establishment of the consultancy firm then the operation of other related companies will not be affected. In the line we will assume that the interest rates, tax rates, bank’s long term interest rates are maintained at constant rate. The assumptions above are quantified as demonstrated below.

Assumption	1^styear, %	2^ndyear, %
Interest rates at the moment	5	5
Tax rates	15	15
Long term interest rates	5	5

The key indicators financial position of the business is the difference between operating expenses and the sales. The gross margin for the first two years is positive.

Projection on profits

For this service based business establishment, we will examine the efficiency of services provided by the business. The basis of the estimates will be on market trends, past performance, and the potential revenue of the new business. For the first years the profits are perceived to be less because of initial cost incurred when establishing the business. There is likelihood that client base increases with time and since the business is new start then profits are projected be less but increase with time.

	1^st year, pounds	2^nd year, pounds
Sales	100,000	120,000
Cost of sales	30,000	40,000
Gross profits	70,000	80,000
Expenses
legal	500	500
professional liability insurance	3,500	4,000
office furniture	15,000	16,000
rent	2,000	3,000
computer and office equipment	26,000	30,000
cash account	5,000	10,000
development of website	1,500	0
business license	1,000	0
Profits before tax and interest	15,000	29,500
tax	0	2,000
interest expense	4,000	4,500
net profits	11,000	23,000

The table projecting profits is absolutely clear on the amount of profits to be realised before taxation. In this case a gross profit of 70,000 pound in the first year will translate to a net profit of 11,000 after taxation and expenses is subtracted. During the second year, it is expected that gross profits will read a value of 80,000 pound and translate to net value of 23,000 pounds. This is an increase in the net profit margin a clear indication that the new project will be beneficial with a higher rate of returns.

Projected cash flows

The business expects to have good cash inflows and outflows in the future periods. If need arises then more funds will be injected into the business to supplement on various business undertaking.

	1^st year	2^nd year
Inflows
Cash sales	100,000	120,000
Cash from operations	0	200
Other cash received	2,000	300,000
Total	102,000	420,200
Outflows
Cash spending	0	5,000
Payment of bills	55,000	70,000
Totals outflows difference	55,000	75,000

The chart illustrates a cash inflow of 102,000 pounds for the first year and an outflow of 55,000 pounds. In the second year, more cash inflows and outflows are expected. In this year an inflow of 420,000 pounds and an outflow of 75,000 pounds are absolute. This is a faire state of business considering the fact that the investment will have performed for only two years. The cash flow assumes the principle of continuity into the foreseeable future.

Projected balance sheet

The balance sheet for the two years shows that the businesses is able pay its recurrent liabilities and therefore settle its creditors. To be explicit on this, it is necessary to have a projection for the two years of the analysis.

	1^st year	2^nd year
Assets	5,000	10,000
Fixed assets	50,000	60,500
Liquid cash debtors	0	10,000
Liabilities
Long-term liability	5,000	10,000
Capital finance	50,000	50,000
Owners equity loans	0	30,500
Balances	0	0

From the financial analysis it is evident that the business has enough funds to pursue its business endeavours. Liabilities which are either short term or long term will be met by the business investment. Owner’s equity of 50,000 pounds can finance the business during the first year. The capital base is bound to increase to a level of 80,500 pounds in the second year following a loan disbursement of 30,500 pounds.

References

Baker, Michael. (2008) Strategy marketing plan audit. Cambridge, Cambridge strategy publications.

Barrow, C., Barrow, P and Brown, R. (2001) The Business Plan Workbook. London, Kogan Page.

Burns, P. (2007) Entrepreneurship and Small Business. Hampshire, Palgrave Macmillan.

Deakins, D and Freel, M. (2006) Entrepreneurship and Small Firms. Maidenhead, McGraw Hill.

Gibson,D.(2006) The E-factor: Entrepreneurial competencies for personal and business success. Harlow, Pearson.

Gill, J. (2005) Business Law for the Entrepreneur. Bury St. Edmunds, Ask House.

Hisrich, R et al. (2008) Entrepreneurship. Harvard, McGraw Hill.

Kirby, D. (2003) Entrepreneurship. Maidenhead, McGraw Hill.

Laermer, Richard and Simmons, Mark. (2007) Punk Marketing. New York , Harper Collins.

Miles, Raymond. (2003) Organizational Strategy, Structure, and Process. Stanford, Stanford University Press.

Pfeffer, J. and Salancik G. (2000) The External Control of Organizations: A Resource Dependence Perspective. New York, Harper and Row.

Rae, David. (2007) Entrepreneurship from opportunity to action. Palgrave, Macmillan Hampshire.

Scott, W. (2003) Organizations: Rational, Natural and Open Systems. New jersey, Prentice Hall.

Shane, S. (2004) A special theory of entrepreneurship: The individual opportunity nexus. Cheltenham, Edward Elgar.

Timmons, J and Spinelli, S. (2008) New Venture Creation. London, McGraw Hill.

Wickham, P.A. (2006) Strategic Entrepreneurship. New York, Prentice Hall.

Click Here To Order Now!