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Global groomers

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Final business plan for our entrepreneurship class.

Final business plan for our entrepreneurship class.

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  • 1. Global Groomers<br />Making global expansion easy as a snap<br />International Business expansion services <br />Business Plan<br />Developed by:<br />Lovneet Singh<br />Deepika Naphri<br />Jessica Bach<br />Elizabeth Pittman<br />April 10th, 2010<br />Global Groomers<br />Chatham University, Woodland Road, Pittsburgh, PA 15232<br />TABLE OF CONTENTS<br /> TOC o " 1-3" h z u Executive Summary PAGEREF _Toc258619900 h 5<br />Company overview PAGEREF _Toc258619901 h 6<br />Vision PAGEREF _Toc258619904 h 6<br />Mission PAGEREF _Toc258619905 h 6<br />Values PAGEREF _Toc258619906 h 7<br />Business Description PAGEREF _Toc258619907 h 8<br />Services offered PAGEREF _Toc258619908 h 9<br />Industry Analysis PAGEREF _Toc258619909 h 11<br />Competitive Analysis PAGEREF _Toc258619910 h 12<br />Niche Market Assessment PAGEREF _Toc258619911 h 13<br />Target Market PAGEREF _Toc258619912 h 15<br />Marketing and Advertising Plan PAGEREF _Toc258619913 h 16<br />Marketing structure PAGEREF _Toc258619914 h 17<br />Advertising PAGEREF _Toc258619915 h 19<br />Resources Needed PAGEREF _Toc258619916 h 20<br />Operations PAGEREF _Toc258619917 h 23<br />Management Team PAGEREF _Toc258619918 h 24<br />Risk factors PAGEREF _Toc258619919 h 24<br />Agreement of confidentiality<br />The undersigned reader acknowledges the information provided by GLOBAL GROOMERS, in this business plan is confidential; therefore reader agrees not to disclose it; copy or distribute to third parties.<br />It is acknowledged by the reader that information to be furnished in this business plan in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause harm or damage to GLOBAL GROOMERS.<br />Upon request, this document is to be immediately returned to GLOBAL GROOMERS.<br />____________________________<br />Signature<br />____________________________<br />Name (typed or printed)<br />____________________________<br />Date<br /> Executive Summary<br />Global Groomers is being created to exploit the unique opportunity of assisting small businesses to grow globally. A market niche originated due to recent economic downturn would be the prime target and with the past experience that members of global groomers have, exploiting this target segment would be much easier.<br />Long gone are the days, when a small/mid size business owner used to stay in a single location. Today this trend has changed with more and more entrepreneurs looking for any opportunity to grow and expand. With increase in competition in the market, the revolution in web and communication, and emerging and developing markets, it becomes very essential to look at those markets as potential revenue generating sector. However, most of the small businesses don’t go for it or are afraid of it because of the lack of knowledge of global market as well as ignorance on how to deal and survive in that market. This is what Global Groomers is aiming to provide to its clients: information, support and training needed to become a global company. <br />By just focusing on small to mid size businesses, Global Groomers would be able to concentrate on a specific segment, which would give it more credibility. To grow, expand, market and advertise an initial investment of $2.1 million would be needed. <br />The following business plan discusses the opportunity embodied in the market, the services offered, market niche assessment, resources needed, marketing and business plan in details. This would give readers an idea on how Global Groomers would be approaching this project.<br />Company overview<br />Global Groomers (referred as G2 here onwards) is a global expansion business consulting firm. It provides wide array of services all focused on helping businesses to grow globally and overcome any kind of hindrances which are usually difficult to handle. <br />G2 initially started just as an idea. For almost two years since 2008, it was a home based business in Shadyside area, Pittsburgh, providing expat trainings and assisting local businesses to expand to global markets. However the success in these two years demanded an expansion to a wider network to assist broader range of businesses. The name and the logo were registered in December 2009. As the office would be located in Downtown Pittsburgh, G2 would be able to cover a wide area and easily accessible to every business with a vision of expanding.<br />G2 started as a general partnership, however with the growth in last two years, G2 would be changing its structure from partnership to LLC. The management would be discussed later in this plan.<br />Vision<br />The business success will be underpinned by the development and continued refinement of strategies that create sustainable competitive advantage. This will be achieved through understanding the needs, expectations and concerns of clients through analyzing, developing and delivering comprehensive solutions on time in a clear, logical and friendly manner.<br />Mission<br />
    • To make G2 the most preferred business globalization consultants by delivering outstanding value, continuous innovation and an exceptional client experience.
    • 2. To make global business an easy process and facilitate businesses with all kind of support they need in order to expand and consistently fulfilling Making global expansion easy as a snap ® company promise.
    Values  <br />Customer Orientation <br />To listen to the customers and respond to their needs even if it demands to go out of the way.<br />Quality <br />WOW- To provide a quality which can give us a “wow” from the customer.<br />Learning <br />
    • As business environment changes rapidly, so should our knowledge of the same. So a continuous and regular training program is developed to help our employees to be up to date.
    Integrity <br />To conduct ethically. Respect the dignity of the individual and be responsible citizens. <br />Responsibility<br />
    • G2 believes in responsibility towards the community and in order to fulfill its duties towards the welfare of the community, G2 would contribute 1% of its total annual profits to Go Green initiative as well as by being a green company and reducing the paper usage as far as possible.
    Business Description<br />As the City of Pittsburgh hosted G-20 Summit in September 2009, the expression, “The World Got Small,” inspired local businesses to think big and global. The economic impact from corporate globalization in past several years has been driven by the needs of companies to go abroad in order to expand market share and sales revenues, source less expensive labor, goods and facilities, consolidate worldwide via acquisition of foreign competitors and by technology: the ability to communicate and share information via the web, enterprise social networks, mobile phones and email has effectively eliminated or at least mitigated communication issues between countries. Over the past few years, everyone has experienced significant growth in the number of current and new clients that have expanded operations outside the U.S. For large companies, a strong base is there in form of infrastructure and finance, however for small to mid size businesses, this base can only be achieved through strategic business planning. Also, in today's world of financial uncertainty, it is important for businesses to have a clear idea of what stability involves for their company. This process is relatively easy for huge companies than mid to small size businesses.<br />Using an expansion strategy is not for every company, but with proper guidance, expertise and assistance, it becomes easier to take the business to that next level. G2 is such a firm which would be providing tools, information, services and training to businesses aiding to their global growth. <br />In past, G2 had been training expats to go at international venues, study the market, negotiate with local business community and establish the business there. However, now with new expansion strategy by G2, a whole new concept is designed to support the global growth of small to mid size companies/businesses which want to grow but lack professional know how of future markets. The purpose of G2 is to provide information, implementation guidance, training and assistance in global market trends, possible markets, expansion options, cultural hindrances and cultural negotiation strategy differences. G2 would also be providing insights about the future market which are there in real world and can’t be found by mere search on internet which can be deceptive.<br />Services offered<br />G2 will provide customers with variety of services that will help them to nourish their business internationally. Its services plan is designed to meet demands of all sized businesses as per their needs. G2’s services are deployed in four modules:<br />Expat Training: To grow global, one thing that every business needs is Expats, people who has knowledge of the market, culture and business community. Since its very inception, G2 had provided trainings to business owners who wanted to go to foreign markets. As per research around 70% ex-pats return back because of inadaptability in other culture.<br /> Our training program familiarizes ex-pats with cultural knowledge, language training and most importantly training for their family so that they feel like at home even being away from home. <br />This training program is termed as Road to Success Program which involved following modules:<br />Basic Language training<br />Customized business etiquettes and negotiations training.<br />Social networking<br />Cultural Training.<br />Career counseling.<br />Family support.<br />Information: A small business with an experienced workforce won’t need training on how to implement information. Therefore, this service is designed to provide those clients all the relevant information that they would need to know while expanding their business. This includes the market survey, competition in the market, local market structure, cultural perspectives, customers preferences for client’s products/services, customers know-how of client’s products/services, suppliers and distribution chains in the market (if client is a non-service industry), price level of the market, pros and cons of expanding the business in that area and other best alternatives that are essential for client to consider before making a move. <br />Implementation: This service enables G2’s clients to implement their business expansion plans with G2’s assistance. This includes all the information needed, however implementation is divided in two parts:<br />Implementation Basic: With all the accurate information it becomes easier to grow in a new markets, however, the cultural barriers usually put barricades. Sometimes these barricades are so huge that even multi Billion companies have to back up. Implementation Basic module will provide assistance every time expats face one of these barricades; of course a fee is involved every time G2 provide assistance. <br />Implementation Pro: If the company thinks that the expat might face more than normal issues, G2 would be training them with the culture, negotiation skills, and business etiquettes of foreign business community. This eliminates the need of assistance <br />Complete Support: In International ventures or expansions, companies send their employees to other countries to operate their business. In this process lack of cultural knowledge may ruin the company’s whole project. As expat training usually take a bit of long time to complete, In case of exigency, G2 suggests to go for complete support as this module would make G2 the company’s official consultant on foreign grounds. G2 would deal, negotiate and bring back a positive result. <br />There would be more services introduced which are still in development stage such as Immigration assistance for employees, financial and accounting advisory, legal issues assistance and protection plan.<br />Industry Analysis<br />The US consulting services industry includes about 140,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $150 billion. Major companies include Accenture, Bain, Booz Allen, Deloitte, and McKinsey. The industry is fragmented: the top 50 companies account for less than 30 percent of total industry revenue.<br />Demand is driven by the needs of businesses, nonprofit institutions, and government agencies for outside advice. The profitability of individual companies depends on the efficiency of their operations and their ability to maintain a steady flow of business. Large firms have advantages in being able to offer broad ranges of services and to take on more complex projects. Small firms can compete effectively by specializing. Major services include strategic management consulting (about 35 percent of revenue), business strategy and planning consulting (25 percent), and marketing management consulting (15 percent). G2’s target is business’s success overseas by providing expat trainings, thus this business idea is unique in market that provides consulting for global expansions. Due to current economic downturn, all the consulting firms are also moving global as it is the need of the hour. The consulting industry had portrayed following growth trends in last few years:<br />Large scale firms are re-focusing their services as per current needs and smaller consulting firms are gaining clients.<br />Many Industry Sectors are seeking consulting and Outsourcing income, competing with pure consultancies.<br />Major corporations and organizations are developing internal consultants to cut costs.<br />All the consultancies are moving towards globalization.<br />Offshoring to India is driving changes in Global Consulting.<br />BPO and KPO: White-Collar and Professional Tasks are off shored to a growing extent<br />New MBA’s desire consulting jobs.<br />As per statistics and future projections, the demand for consulting services is expected to jump significantly in future. This comes as good to both consultants and organizations looking to resume inorganic growth. However, because of economic downturn which started in December 2008, clients will keep on squeezing on fees and it will take a while in order to regain customer confidence in the market and to invest money in the market.<br />Competitive Analysis<br />Competition is the most important aspect to look at while starting a business. There are many business consulting firms in Pittsburgh area. However, interestingly none of them provides solely international business expansion consulting services. Usually, the services provided are legal advisory, business advisory, financial, accounting, etc.<br />Some of the Major business competitors in Pittsburgh area are:<br />
    • Schneider Downs
    • 3. McKinsey & Company Inc
    • 4. Buck Consultants
    • 5. Corazon Consulting LP
    • 6. Towers Perrin
    G2 is focused only on providing expansion solutions which makes it unique it’s on way. Being at a small scale, G2 is able to provide the actual market data, not simply statistical. In addition to that, the biggest advantage that G2 has is its pricing which is flexible according to the needs.<br />Niche Market Assessment<br />Many businesses are sending expatriates to their overseas operations. In fact, the need for internationally competent managers is expected to rise as more and more firms face global competition. Organizations need to understand the dynamic relationships between staffing and outcomes, and how these relationships change over time. Expatriates provide a number of benefits for companies, including greater parent control and particular expertise. Expatriates are very expensive, however, and this can discourage extensive use of expatriates, especially in small to mid size businesses. Many companies have also experienced relatively high failure rates, with failure often being attributed to the family's inability to adapt. Surprisingly, given the high costs, and likelihood of failure, companies often make these expensive commitments with little or no preparation for the need for cross-cultural transition. Also, small business owner usually think that one hat fits all and they can negotiate or conduct business on foreign soils as they do in their home country. Expatriate success and job performance is closely related to intercultural adjustment and the same is true for families. <br />An industry's potential for globalization is driven by market, economic, environmental, and competitive factors. Market forces determine the customers' receptivity to a global product; economic factors determine whether pursuing a global strategy can provide a cost advantage; environmental factors show whether the necessary supporting infrastructure is there; and competitive factors provide a spur to action. Four factors affect the ability of an organization to develop and implement global strategy: organization structure, management processes, people, and culture. Each of these aspects of organization operates powerfully in different ways. G2 will assist the customer in best determining the appropriate approach for a globalization strategy by engaging their market intelligence employees in the local culture and giving them the tools to be successful at it.<br />It is a common misconception that a firm’s product is a one size fits all. Tastes and preferences can vary across the globe. One example is the fast food industry leader McDonald’s. They have entered over 118 countries. One of the things McDonald’s is successful with here in the United States is the drive thru. When expanding into China that was a culture clash. One Chinese Chatham student described this as not fitting in with the Chinese culture, they are not in a hurry and want to sit down and enjoy their meal. McDonald’s has learned that valuable lesson and serves beer in Germany and McLobsters in Canada but not all lessons have to be learned the hard way. Integrating with the local culture before “setting up shop” will be paramount to the success of our clients.<br />A company doesn’t have to be the size of a multinational giant to facilitate and benefit from the globalization of markets. But very significant differences still exist between national markets like consumer tastes, preferences, legal regulations and cultural systems. To be successful in globalization it is imperative to understand and master all of the aspects. G2 will aid clients in avoiding common execution missteps. Its clients will be big and small firms who require expertise in understanding their new market. It will partner with their on-ground employees so its clients will be successful on their new venture.<br />Furthermore G2’s customer base will consist of firms who are not only selling goods but providing services only. Understanding the market culture is not limited to gauging the acceptance of a client’s product in an international market. To have successful business interactions you must understand the differences between American and the foreign culture for which you are operating in. For example in Japan business is based on relationships, making social interactions such as meals together necessary. With relationships being valued so much, a verbal contract is as good as a written one. Other examples are that direct eye contact is considered a respectful sign of listening in America however is threatening or hostile in Japan. U. S. firms are currently internally under resourced from the recession making external expertise more attractive.<br />95 percent of the world's population resides outside of U.S. borders, making this an attractive opportunity. However, small and medium-sized U.S. companies that could easily export often find language, culture and foreign government bureaucracies daunting. A company will often shelve foreign business opportunities for lack of resources and expertise, in favor of the more familiar and established domestic business. Additionally when operating abroad, cultural differences could cause many productivity issues. Global Groomers will bridge this gap.<br />Target Market<br />G2 would be focusing mainly on small to mid size businesses, as the potential of getting business from this segment is very high. According to most recent federal data there are 927,369 small businesses in state of Pennsylvania. <br />Most businesses realized, after being hit by the recession, that in order to survive they have to expand globally as it would maximize their profit by invading new emerging markets. <br />Currently G2 would be targeting this group at two levels:<br />
    • Small business/entrepreneur groups in Pittsburgh.
    • 7. Businesses which are not part of any group.
    In addition to that, G2 would be targeting small businesses outside of Pittsburgh area at a different level, once G2 will score a home run in Pittsburgh.<br />Third, the target would be the complementary businesses to create joint ventures in order to expand G2’sbusiness.<br />Being a part of various Entrepreneur groups in Pittsburgh, focusing on those groups won’t be difficult as G2 have already been doing it at a smaller scale. <br />Marketing and Advertising Plan<br />Here are some reasons which G2 will be highlighting in its advertising campaigns.<br />Diversification<br />The old saying " don't put all of your eggs in one basket" is absolutely true for global business. Going global allows companies to get some of their eggs into a different basket. Different markets offer different customers and a different customer base. The needs and demands of countries outside your own are most likely the same but at different times. It is all about going there while the market is unexplored, exploiting the market completely and then looking for new markets.<br />Resources and Lower Costs<br />Another incentive driving businesses overseas is the availability of resources at lower costs than might be found domestically. For example, India has been known to offer information technology services and support for companies at a much lower rate than can be found in the United States. <br />Economies of Scale<br />Helen Deresky's book International Management comments that businesses often choose to go global in order to benefit from economies of scale. Often companies can recognize profits large enough to cover their research and development costs only by taking their business to a global destination. Even if these costs are not a factor in the decision, a larger market offers a larger opportunity for profit.<br />Country Incentives<br />Often countries offer incentives to entice foreign businesses. Countries seeking new technology, capital, and domestic growth do whatever they can to get companies to " invest" in them. Tax exemptions, loans, the use of property, and subsidies are just a few of the incentives offered. Companies may chose to benefit from these even if going global was not a priority for them at the time.<br />Marketing structure<br />A business marketing strategy is the single biggest factor which determines the success or failure of a business. Many small business owners mistakenly confuse marketing strategies with ad campaigns. A marketing strategy is a plan or an approach for marketing your products and services. An ad campaign, on the other hand, is the means by which your marketing strategy is accomplished. G2’s objective is to tie its advertising efforts into a comprehensive marketing strategy that has been carefully designed to attract attention in the marketplace. G2 is going to market its services on two different levels. <br />G2’s primary focus will be to target the Entrepreneurs that are locally placed in Pittsburgh area. It intends to Network at events like the Chamber of Commerce meetings, BNI Group meetings, and other organizational meetings that will be attracting its " ideal" client. During these interactions, G2 plans to gather as many business cards as it can and then begin to phone and email to follow up. The follow up would be done immediately while G2’s services are still fresh in their mind. <br />Secondly G2 intends to attend public meetings like the Pittsburgh Entrepreneurs meet-up group and the Pittsburgh small business meet-up group on a monthly basis. At every public meeting, it would make a commitment to say something that could be useful to those that are attending. This is a great way to not only share the knowledge and help others, but it also puts G2 in the eye of those who could use its services. <br />Thirdly G2 intends to create a " useful" handout. A handout, which when given to a recipient, they would keep because it has a value. For example one already designed layout for a handout is " Top 5 reasons to expand globally." <br />Fourthly G2 intends to create joint-ventures. In this process it would look-up for colleagues and business associates whose business compliments G2’s and do joint promotions. For example it would create joint ventures with legal firms which would help in processing the necessary paper works for its clients. <br />Last but not the least it intends to write letters to editors of local newspapers and business publications. To attract the editor’s attention, the letters would be written to make them interesting and news worthy, which would also increase the chances of the letter getting published in the editorial column. In this letter all necessary company information would also be provided for any interested customer to contact G2.<br /> Advertising<br />On G2’s advertising front, it intends to hire Image box for all the e-marketing and preparing a commercial for the local news channels. This commercial would be aired at the prime time as it would attract the most number of viewers. It would also be airing on fm and G2 would also be podcasting. An initial investment needed, as estimated by Image box, is $10000.<br />G2 have outsourced Rich Internet Application for its website development. Rich Internet Application (commonly known as RIAcube) is a company based in India. This website would contain all the information regarding the company and it will also contain a forum where prospective clients can puts in their query which would be followed up on a daily basis. The website will also have a live chat and a blog for potential and existing customers to share their views and concerns. The initial investment for such a website has been estimated by Riacube as $300.<br />The marketing and advertising strategy taken up by G2 would definitely create a buzz and inquisitiveness among the prospective clientele. Through the marketing and advertising efforts G2 aim to achieve 4 basic goals:<br />
    • Boost customer’s confidence in the company and services
    • 8. Create awareness among the small/midsize business as to what they are missing out by not expanding globally.
    • 9. To leverage on the emotional bond between the business owner and their business by showing them that by trusting on G2’s solution their business will be in good hands.
    • 10. Most importantly, to overcome the objections and mental blockage that a customer might have by emphasizing on warranties, testimonials, endorsements, and other positive reinforcement devices which can not only make the decision easier for existing customers, but also attract new customers who hadn't previously considered using services from our business.
    Resources Needed<br />The bulk of the resources required are in the form of intellectual capital. Counselors, teachers, and workshop organizers and operators will be hired to work with the expatriates. The company will also hire language specialists to work with computer software writers to develop the most effective language learning software possible. Existing literature and other culturally relevant media sources will also be used, but the future need for employing writers and filmographers is not being ruled out. <br />The company will employ counselors to help businesses initially select the proper personnel for the specific assignment abroad. Once the employee is chosen, the counselors will be used to provide the employee with stress reduction techniques, help him develop adaptability skills, and depending on the length of stay, provide case studies for the employee to consider, evaluate, and learn from. While the employee is abroad, the counselors will be available for counseling sessions online or by phone should the employee encounter any problems or not adapt as readily as anticipated. Unless the employee ultimately intends to permanently relocate to the assigned country, repatriation counseling will be provided. While this might seem unnecessary at first, an employee who has spent a year or more as an expatriate will have adapted to life in that country and culture. Adjusting to life back home can be just as challenging as adjusting to life abroad. The counselors will provide the employee with the tools and skills to easily re-assimilate. The repatriation counseling sessions will begin before the employee is scheduled to return, though the timing will depend on the length of stay abroad. <br />The company will have computer software and books to help employees learn basic and moderate language skills for the countries where they will be working less than a year. For employees facing long-term employment abroad, language teachers will also be available to develop fluency in the appropriated languages. At the outset of this venture, the company will use existing software and books that it deems sufficient. However, if, at any time, the company or expatriates believe that the existing resources are not satisfactory, linguists, teachers, and software writers will be hired to produce a more acceptable resource.<br />A major source of stress for employees working abroad is “culture shock,” which results from cross-cultural difference. To reduce this source of stress, the company will use both online sessions and workshops to teach employees appropriate personal etiquette for the necessary cultures. More importantly from the business perspective, the company will also offer online sessions and workshops for appropriate business etiquette for the necessary cultures. Countries vary greatly in what is considered to be appropriate and polite business interactions and getting this wrong can be detrimental to effective expatriation ventures. Films, book, and brochures that accurately depict the necessary culture will be used to help the employee understand what to expect from the culture he is about to enter. <br />Another way the company will reduce the culture shock is to offer role-playing sessions and workshops. These sessions will be led by former expatriates and will give future expatriates an opportunity to physically and mentally workout how to react appropriately in different scenarios of different cultures. Sensitivity training sessions will also be done by former expatriates. This training will be critical for both personal and professional success abroad. It will teach the employee patience when faced with novel situations and teach the employee to not rely on stereotypes in such situations. Upon completing these sessions, the employee will have a greater understanding and sensitivity to differing personal and business cultures and will be able to assess and adapt to them. <br />While the successful expatriation of an employee is the goal of any business intending to do business abroad, an equally important consideration is the effects of expatriation on the employee’s family. The company recognizes that expatriation is stressful on the family as well as the employee and will have resources to combat this stress. The company will provide counseling for families remaining at home while their loved one is abroad. Counseling will include coping strategies to deal with the absence, cultural education so they can understand where the employee will be, as well as providing basic information on how to contact the employee while he is abroad. For families traveling with the employee, the same initial counseling will be provided, including stress reduction techniques, adaptability training, and varying case studies. Just as for the employee, these counselors will be available for the duration of the expatriation should any problems arise, and provide repatriation assistance. Language training will also be provided for the family in the same manner as the employee. Culture shock is just as like for the family as is it for the employee. The same resources will be used for the family, with the focus being on cultural education and etiquette rather than business. If the family requests, role-playing workshops may also be provided as well as sensitivity training, though these are generally more applicable to business situations. <br />No large capital investment is needed to provide these essential resources. All workshops, sessions, and classes can be done at the employee’s place of business. If the sessions, workshops, or classes are large, rooms will be rented from local businesses to provide the necessary space. The primary resource is intellectual capital which does not need a building to be housed in. The physical training resources such as computer software, books, and films will be housed in the existing building (if there is one?), while not ruling out the possibility for future expansion, should the need arise. <br />Operations<br />Location: G2 would be renting a commercial office space downtown Pittsburgh, first side District, 1350 sq ft, divided in 4 rooms and a reception area, available with locked floors and lobby with security cameras. The owner has an office in the building which is very attractive and well maintained with a spectacular view of Mt. Washington and the Monongahela River from all of the floors. This is a perfect location for a small business that needs to be located downtown with parking available next door. This office space is already decorated and comes up with all partitioning and office furniture. It is within easy walking to PPG Plaza, Fifth Ave, the new PNC Building and Grant St. There is also easy access to the interstate system. .This office being in the most commercial area of downtown, Pittsburgh, creates a sense of credibility in the minds of potential clients.<br />Lease: the rent is $ 18/sq. ft. However, as G2 is planning to rent whole 1350 sq. ft, the monthly rent would be $15,000. <br />Employees: Apart from 4 members of G2 handling key processes, G2 would be hiring a research associate (14/hr) and an office assistant (10/hr). This excludes the benefits such as 401(k) and medical. Apart from these full time employees, G2 would be hiring trainers of various cultural backgrounds, time to time, according to the needs of the client(compensation varies).<br />Other costs: IT equipments such as 6 PC’s, a printer copier all in one, two overhead projectors, a ceiling projector. In addition to that, there would be printing costs related to the educational material G2 would provide to the trainees (from companies). Other office and administrative items would be purchased as needed. An initial investment of $10,000 is needed.<br />Management Team*<br />The top management positions would be held by 4 members of G2. The details about each of them are provided below:<br />Lovneet Singh- Marketing and Sales Manager: He would be responsible for all the marketing, sales and advertising for G2<br />Deepika Naphri- Chief Financial Manager: Deepika is responsible for all the finance, accounts and legal needs of G2<br />Elizabeth Pittman- Manager, PR- Elizabeth would be responsible for public relations, portfolio management, and customer services and Quality assurance<br />Jessica Bach- Manager, Global Training- Jessica would be handling all the HR needs, training recruitments and training in local channel.<br />*Resumes of the management team are attached with this business plan.<br />The management structure G2 would be following is LLC. Lovneet Singh and Deepika Naphri own 35% share of the company each and Elizabeth and Jessica own 15% each currently. In order to enhance its productivity and scope of work, G2 was able to bring Elizabeth and Jessica into their company by offering them the share as mentioned above. <br />Risk factors<br />According to research and information of G2, most common risk factors in business expansion consultancy are as following:. <br />
    • Mind setup of Small business owners
    According to highly regarded New York Times columnist Thomas L. Friedman, globalization is here … and it's good. However, unlike Columbus, some small businesses prefer to remain on their familiar, well-trod soil rather than explore overseas opportunities. Few of the myths, as sighted by Small Business Association (SBA) are as follows:<br /> “I Don't Have the Capital to Fund the Growth" <br />How G2 can help: With the market knowledge, G2 can provide export information and development assistance to help small businesses take advantage of export markets, including trade counseling, training, and publications. G2 would also provide investment capital assessment which would be handy to reduce unneeded burden of extra loans. <br /> “It's Too Uncertain and Confusing”<br />How G2 can help: With the networking, G2 would insure the investment in case of a fraud during transactions.<br /> " Shipping across Borders Is Too Costly" <br />How G2 can help: G2 would research and understand the different shipping methods and then suggest it to the customers. The shipping process involves knowing the costs associated with how long the goods take to deliver, proper packaging, what international trade regulations apply, In addition to that, G2 would also suggest whether it would be better to ship the product, or assembling parts, or its best to create the product at the new location.<br /> " Start Local, Grow Global" <br />How G2 can help: In some cases, going global via the Web is the antidote to going out of business. G2 would be providing critique about the current website and what changes can be made to attract more international customers. And if they don’t have a website, what kind of website would be best and what investment would be adequate. <br /> " No One Pays Attention to Small Businesses" <br />How G2 can help: G2 would be providing information about international territories where big players haven’t entered yet and success chances are very high. Also we would be providing insight of the market so that company can make changes in their products/services to be locally adopted. <br />
    • Shifting of focus of big consulting firms towards Small businesses
    Till now, big business consulting giants are focusing their services on large scale companies; however, there is a possibility of change of trend towards small businesses. In above case, as G2 would already be completely focusing their services to small businesses, it will have a competitive advantage over them.<br />
    • Not able to achieve desired sales goals
    In order to cover up the monthly costs, G2 would require a minimum of 3-5 customers per months. It is possible to not to meet the break even for 2-3 months. In order to cover up the monthly expenses in this scenario, G2 have $50,000 in reserve. <br />

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