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1. BUSINESS PLAN
PCM CONSULTING COMPANY
This business plan was made as an exercise for the Coursera MOOC Course Launching New Ventures by
Christopher L. Tucci and Marc Gruber / EPFL.
2. Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by PCM
Consulting in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of PCM Consulting.
It is acknowledged by reader that information to be furnished in this business plan is
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 serious harm or damage to PCM Consulting.
Upon request, this document is to be immediately returned to PCM Consulting.
This is a business plan. It does not imply an offering of securities.
This business plan was made as an exercise for the Coursera MOOC Course Launching
New Ventures by Christopher L. Tucci and Marc Gruber / EPFL.
3. Executive Summary (Part I)
PCM Consulting (PCM) is an ambitious innovative new company that is attempting
to turn the business consulting where decisions are taken based on experienced
professionals throughout a filtered analysis of neural networks. With an
experienced consultant at the helm as President, PMC intends to be a leading
consulting company in Project Management.
Company Summary
PCM Consulting (PCM) will start with two experienced consultants working at the
Delaware Innovation Park. PMC will be composed by certified professionals issued
by PMI and listed on Presidential List of FIDIC.
PCM offers will start with a list of services which includes project management
tools and techniques according to PMI and contract management using the
rainbow series of contracts issued by FIDIC. PMC will have a focus on
infrastructure projects, preferably financed by Multilateral Development Banks.
PCM will be established in the of Delaware, USA with two principal partners, each
of whom owns a 50% share in the company. Mr. F. Soares has extensive
international experience in Project Management and underground infrastructure
projects. Mrs. A. Perestrelo brings in experience in the area of business
administration.
4. Executive Summary (Part II)
Mission
Our mission is to provide clients across South and North America with project
and contract management services for all types of infrastructure projects,
from concept planning through to completion, with a highly skilled
professional team working together, using common sense and practical
experience.
Keys to Success
Provide professional quality services on time and on budget.
Develop a follow-up strategy to gauge performance with all clients.
Implement and maintain a quality control and assurance policy.
5. Executive Summary (Part III)
Objectives
Modest revenues the first year, with
slow by steady growth over the next
two years.
Achieve 20% of market value at the
end of the third year of operation.
Increase gross margin significantly
by the third year of operations.
6. Executive Summary (Part IV)
Company Ownership
PMC will be created as a limited
liability company. The company
will be privately owned by Mr. F.
Soares and Mrs. A. Perestrelo.
Mr. F. Soares will also be listed
as a Director.
Start-up Summary
Our start-up expenses allow for
initial legal expenses, licenses,
permits, stationary, specialty
software, office equipment, and
furniture. In addition to these
start-up costs, an initial balance
will be placed in the company
accounts.
Start-up Expenses
Legal $500
Stationery etc. $600
Professional Liability Insurance $1,200
Business Licenses $1,000
Permit Holder $500
Website Development $600
Office Furniture $600
Software Purchases $7,000
Computer/Office Equipment $500
Other $500
Total Start-up Expenses $13,000
Start-up Assets
Cash Required $12,000
Other Current Assets $0
Long-term Assets $0
Total Assets $12,000
Total Requirements $25,000
7. Services description
Project Consulting: Proposed and billed on a per-project and per-
milestone basis, project consulting offers a client company a way to
harness our specific qualities and use our expertise to develop
and/or implement plans, from conceptual planning to turnover.
Proposal costs will be associated with each project.
Project Management: Our project management services include
defining client needs, preparing bid documents, tendering, bid
analysis, construction review, payment certification, contract
administration, and warranty inspections. This work will be supported
by PMI certified professionals.
Dispute Resolution: We draw upon our broad range of construction
and contract administration experience to provide dispute resolution
services, including arbitration, mediation and expert reports for
litigation. This work will be supported by accredited professionals
registered on FIDIC Presidential List.
8. Market Analysis
The business consulting industry is very fragmented. Several large multinational
companies dominate the industry while many smaller (and often more specialized)
firms occupy their market niches. Major management consulting companies have
established their dominant position by providing services to the leading companies
in various industries. Consulting practices of the major firms have established
worldwide presence and sell their packaged services to companies of different
sizes and industries. At the same time, numerous firms and individual business
consultants prosper in the market niches that bigger players consider unprofitable to
enter.
Infrastructure projects are the target market of this firm. PCM intends to contact
projects financed by Multilateral Development Banks where specific knowledge and
practice are required. There is a serious need in the marketplace, and certainly a
significant demand for, these types of project consulting services.
Competitors in the forefront of the marketplace typically offer many of the services
that PCM has. However PCM will be specialized in the contract management of the
rainbow series issued by FIDIC.
Structural engineering and general project management services there were also
analyzed to be provided by the company. However there are many competitors
in the market providing it.
9. Strategy and Implementation Summary (part I)
PCM will focus on the South America market initially.
PCM offers the following competitive edge:
State-of-the-art project and contract management capabilities.
Certified PMI professionals.
Registered FIDIC consultants.
An internal neural network software developed to predict the most
important decisions to be made during the project;
An Internet website (http:www.pcmconsulting.com, and e-mail,
info@pcmconsulting.com).
Marketing Strategy
We will be using the MDB contacts extensively in our sales promotion.
We will focus our limited advertising budgets to promote community
sponsored events. We will also offer technical services at discount rates
to non-profit organizations.
10. Strategy and Implementation Summary (part II)
Pricing Strategy
Most consulting work is billed on an hourly basis to pre-determined levels
dictated by project schedule milestones. We have assigned a rate of $80/hour
for basic consulting services for and $40/hour for data collector services. These
are conservative values for the consulting market. We have used conservative
unit rates to remain more competitive.
Sales Strategy and forecast
Success in a consulting market is focused on client service and typically translates
into repeat business. We will avoid the pitfall of buying a project, only to find
the scope of work far exceeds renumeration.
We expect sales to remain at a constant level after three months of operation.
We predict the first two months of operations will be slow. Revenues will be
limited while a generic quality management plan is formulated and basic office
administration tasks are completed.
Direct unit costs for the first year have been set at less than one-third of unit
revenues, which yields a high gross margin. In the third year of operations, we
plan to increase gross margin as a result of providing a more efficient service to
our clients.