2. 2
Table of contents
1.0 Executive summary ............................................................................................................................... 4
1.1 Short summary of current DPSC..................................................................................................... 4
1.2 Mission........................................................................................................................................................ 4
1.3 Our management team......................................................................................................................... 5
1.4 The Market ............................................................................................................................................... 6
1.5 Keys to Success........................................................................................................................................ 7
1.6 DWA’s Pitch............................................................................................................................................. 7
2.0 Start-up summary.................................................................................................................................. 9
2.1 Business loan ............................................................................................................................................ 9
2.2 Investor/ private equity plan.............................................................................................................. 9
2.3 Start-up action plan.............................................................................................................................10
2.4 Start-up hiring plan.............................................................................................................................10
2.5 Use of the Istorm brand.....................................................................................................................10
3.0 Services.....................................................................................................................................................11
3.1 Executive Search: .................................................................................................................................11
3.2 Consulting (RPO = Recruitment On Premise):........................................................................11
3.3 Consulting (IT contracting/ Consulting).....................................................................................11
3.4 Recruitment............................................................................................................................................12
4.0 Sales Strategy.........................................................................................................................................12
4.1 Current Clients......................................................................................................................................12
4.2 Targeted Companies via networking............................................................................................13
4.3 Market Penetration .............................................................................................................................13
5.0 Financials.................................................................................................................................................13
5.1 DPSC revenues in the past two financial years ........................................................................14
5.2 Pricing.......................................................................................................................................................15
5.3 Cost non management personnel ...................................................................................................16
5.4 Cost management personnel............................................................................................................17
5.5 Block chart revenue/ cost/ ebitda – First 5 financial years..................................................18
3. 3
Business plan
by
David Dawoud
For queries with regards to the business plan, please contact David Dawoud via (phone) on
0485/87.50.58 or (e-mail) d_dawoud@me.com
4. 4
1.0 Executive summary
David Wood Associates is a spin off firm (to be located in Zaventem – Diegem), partially
based on a current high end executive search firm, DPSC Executive Search NV. David Wood
Assoc. will be referred to as DWA in this document.
We will be heading the firm with existing talent, expertise and footing in today’s market.
Our goal is to support clients in a more relevant way of recruiting.
As we are more in a candidate driven market these days, DWA’s aim is to go for less is more.
Less mass assignments in a massive competitive cluster, and more quality assignments for
key clients.
DWA will be offering Recruitment On Premise, Executive Search (DPSC) and IT
recruitment & contracting services.
The market knowledge of our management team enables us to make warm contacts with both
candidates and clients, due to our prior experience.
The large amount of accessible job boards has made the amount of high quality candidates
hard to find. Despite advances in Technology, the market is currently in need of an old
fashioned approach of big time networking and personal contacts. In our opinion, your
network makes or breaks your success in the staffing world. We are here to do that.
1.1 Short summary of current DPSC
In 1994, Jean Van Pottelsberghe De La Potterie joined DPSC as a freelance consultant. In
1997 Jean took over DPSC.
DPSC is known for providing quality using direct searching via networking. While most
agencies focus on common databases of job sites, DPSC is perceived as the agency to use,
when you are in need of excellent individuals that don’t mass hunt the market for a new
challenge.
Since 2011, DPSC also offers RPO to clients in need of a high volume of candidates and an
exclusive approach.
Considering the growth of the job market, DPSC is ready for a bigger approach, an increase
internal headcount, and an overall change to provide clients with the services they require.
1.2 Mission
Our mission is to give account management a whole new meaning. DWA will strictly focus
on recurring business, and trade careless volume for service and a personal touch. The
economy is slowly growing again, but our clients cannot grow without people. That’s what
we are here for. Both temporarily and permanently.
5. 5
1.3 Our management team
Jean Van Pottelsberghe De La Potterie
Jean is one of the top leading information technology (IT) talent finders on the Benelux
market. Major companies trust him to recruit key staff. IT specialists trust him to find them
the best possible jobs. Jean's formidable intelligence network gives him early alerts to
company needs. He knows who needs what and when. Jean has successfully arranged the
hiring of staff in jobs ranging from Direct Touch Area Manager and Sales & Account
Executive to Business Development Manager, Project Manager, Storage Manager; Service
Delivery Manager and many more.
Work Experience:
• Data Process (’85-’87) – Sales director
• Delphi Consultants (’87-’94) – Managing director
• European Express (‘94-’98) – Managing director/ owner (sold to Harvey Nash in 1998)
• DPSC (’97-…) – Owner
Role: Business development, senior recruiter and team manager of the executive search unit.
Tasks:
Recruitment
Team leading within the exec search unit
Account management
Business development
David Dawoud
David is a dynamic recruiter with IT as a specialty, currently on assignment at HP and has
been for the past three years. He also has a knack on motivating hungry sales people.
David started his career as a salesman at Sony, and got his first recruitment experience and
training at the S three group (computer futures). He also co-created a web dev/ social media
company (noxvita) which was sold to SIM Belgium.
From that moment on David became a self-employed consultant within recruitment. After
joining forces with DPSC, David is determined to find a financial reprieve enables the growth
DWA is going after. At HP David is currently responsible for the growth of a specific unit
(Enterprise Group) on an EMEA level.
6. 6
Work Experience:
• Sony (’06-’07) – Sales Agent
• Computer Futures (’07-’09) – Recruitment Consultant
• Noxvita Corporation NV (‘09-’11) – Co-owner
• J.T.M. (management firm) (’09-…) – Owner (projects= DPSC & HP)
Role: Company manager, business developer and senior recruiter
Tasks:
Acting sales manager for entire DWA
Recruiting employees for DWA
Train employees
Establish company’s characteristic
Recruitment
Business development
Account management
1.4 The Market
A recent international study on the capacity of information technology (IT) of hundreds of
companies shows that IT is critical to their growth because it provides them with scalability,
the ability to successfully manage the increase in the complexity of the organization and its
processes and business model.
The capacity of IT contributes to the growth of enterprises. Several studies of international
medium-sized companies show that the capacity of IT has a close correlation with the growth
of the cost-effectiveness of the organizations. Data obtained from these studies indicate that
IT accelerates the growth of businesses because it provides them with scalability, the ability
to successfully manage the increase in the complexity of the organization and its processes
and business model. Companies with business processes scalability are better placed to
overcome obstacles to growth, differentiate themselves from the competition and quickly
seize the business opportunities that arise. In summary, the use of IT is relevant and is an
essential ingredient for the success of companies long term. IT is not simply a component
whose influence on the prosperity of the company is nothing to be lowered. IT promotes the
growth of organizations.
7. 7
According to the (received) VDAB there were still 1.303 vacancies open by the end of 2013.
With a grow expected in 2014. The discrepancy is due to newer technology that is not taught
in college education as of yet. Most of these competencies require additional courses to be
taken during the career of somebody within the IT market.
This all makes the IT market a niche on its own. As not one skill is given for all.
1.5 Keys to Success
DWA’s keys to success include:
1. A group of professionals with a broad range of specialty
areas that complement each other.
2. A high level of experience in these specialty areas.
3. A team approach on most consulting projects.
4. Many business contacts among the consultant group (KEY).
1.6 DWA’s Pitch
We take our future business seriously, and we therefore owe you a serious pitch for why
DWA is a good venture. This pitch is summarized in 6 important points. 1) The business loan
we are aiming for is an amount taken under enormous scrutiny, an amount lower than any
annual revenue generated by DPSC in recent years. In other words, based on financial history
the risk is minimal and turned over by one unit (executive search) alone. 2) The reason we
are looking for a business loan is to counter what recent competitors have struggled with,
cash flow. With a healthy financial state, we can and will expand our business. 3) The start-
up team is a force to be reckoned with, it consists of the right experience, the right motivation
and the right network. 4) At the very first day of DWA being active, we will have signed
assignments we can work on 5) At DPSC we had to literally be decline projects because we
did not have the resources, time and manpower to successfully fulfill them, that was a key
indicator of the business potential. 6) Recruitment is one of the businesses with the highest
gross margin profits. Taken high commission, salary and database support into account
shows the following gross margin in the following units we wish to grow.
9. 9
2.0 Start-up summary
The company will have 2 shareholders. David Dawoud and Jean Van Pottelsberghe De La
Potterie. With one responsible for management decisions, David D.
The investment in the firm will be assets consistent of the following:
Existing Clientele from DPSC
Ongoing assignments from DPSC
DPSC’s candidate database
Ongoing assignments from J.T.M. (David Dawoud’s management firm)
Our aim is for a 10 years business loan; these funds will be sufficient to cover the company's
expenses throughout the first year of operations, which is the most critical from the cash flow
standpoint.
2.1 Business loan
Our targeted business loan is at the amount of € 150’000 – Inclusive 50K headroom.
Those funds are needed to cover our lack of cash flow forecasted.
We are seeking a Business loan, combined with a funds loan at Belgian Prime Rate.
Starteo or Optimeo. Whichever is most suitable.
Please view our ‘David Wood Associates, 5 year plan to success’ for an extensive
forecasting.
2.2 Investor/ private equity plan
DWA is willing to involve an investor or business angel for the necessary capital; this can be
used as the only option, or in combination with a business loan. As our targeted business
loan, our aim for capital is € 150’000 – Inclusive 50K headroom. We accept any offers, with
a minimum of € 75’000.
The return on investment is split up in three categories:
Monthly fee – from the first month a monthly pay back of 3000,-
Quarterly fee, based on the revenue. 5% of the revenue is paid out quarterly
Shares. 15% to 25% company ownership. Dividends, if payout is decided by the
board.
10. 10
2.3 Start-up action plan
Guaranteeing revenue through executive search via ongoing assignments
Relocation to a strategically well located office
Creation of the look and feel of the new company (website and communication)
hiring of competent salesmen known in the market place. Personnel hit list created.
Introduction of new company and reinvented DPSC to existing and former clients
Introduction of new company and reinvented DPSC to new potential clients
2.4 Start-up hiring plan
DWA’s success will be determined by leadership and our future team. A smart combination
of both experienced and junior consultants will be crucial to achieve our targets. Their
performance will be depended on our sales training, incentive and motivational meetings.
Our types of recruits.
-Senior consultants: Consultants with 5-10 years of experience in recruitment. Those who we
know personally and have extensive experience in account management and internal
recruitment. Their internal recruitment experience is important, because it would create a
warm welcome within the company they represented. It would also give them the knowledge
of the in’s and out’s of the processes the companies use internally.
We’ll motivate them by short-term management possibilities, consistent entrepreneurial
endeavors and most important of all, income.
-Junior consultants: Consultants with no experience. Hungry young individuals with a chip
on their shoulder and something to prove.
We’ll motivate them by long-term management possibilities, short term successes and a
chance to major accomplishments.
2.5 Use of the Istorm brand.
To reduce immediate costs related to CRM creation and branding, we will use an established
brand, operating mainly in the south part of Belgium.
The use of Istorm (and carrying their brand) will give us an immediate boost of candidate
accessibility, visibility and the ease of recruiting young potentials.
Istorm is an existing recruitment agency in new media and IT.
11. 11
3.0 Services
Our services will be diversified, with several income streams as a result. Some will have a
bigger gross margin, while others might have less but do increase the worth of the company
more significantly.
3.1 Executive Search:
SERVICE Often used for vacancies involving niche profiles. Executive search is used
specifically when a client has a need that might be situated at a different company
(competitor), or even abroad. The client shares an exact need of sector experience and current
work environment.
EXAMPLE (non disclosed real assignment) Client X is looking for a solution lead within
IT, either working at company Y or Z. DPSC at that stage only focuses on the targeted
companies, creates a shortlist of personnel and strategically approaches candidates. This
assignment was successfully closed in October 2013.
PAYMENT Fee in 3 stages.
Stage 1 (upon acceptance of the search) 1/3 of estimated fee .
Stage 2 (upon delivery of shortlist/ interviews) 1/3 of estimated fee.
Stage 3/ final stage (upon the closure of the position) remainder of the fee.
3.2 Consulting (RPO = Recruitment On Premise):
SERVICE Used when a company wants a result oriented arrangement with a recruitment
agency. An experienced recruiter is hired by a client to support an import period of hiring.
EXAMPLE (non disclosed real assignment) Client X is looking for a freelance recruiter
during an exceptional peek period.
PAYMENT Fee often split in two forms.
Form 1 Fee per hour/day.
Form 2 additional fee per candidate placed.
3.3 Consulting (IT contracting/ Consulting)
SERVICE Used when a company requires a specific, or more, as a temp or on a project.
Depending on urgency and availability, it would be a payroll consultant or freelancer.
12. 12
EXAMPLE (non disclosed real assignment) Client X is looking for a freelance IT Java
developer for a project during 3 month.
PAYMENT Fee per hour/ day.
3.4 Recruitment
SERVICE Used when a company requires a permanent IT employee
EXAMPLE (non disclosed real assignment) Client X is looking for a senior IT Java
developer for an indefinite duration.
PAYMENT Fee based on a percentage of the employees yearly gross salary.
4.0 Sales Strategy
DWA’s strategy of clients approach will be divided up into three groups. First we have our
current clients, largely in the DPSC portfolio, we’ll improve our relationships and offer a
broader diversity of services. Secondly we have potentially new clients we can approach in a
warm matter. Those contacts will be from the grace of the network built up by the
shareholders during all their years of experience. Our new senior recruiters will also add an
important pipeline of clientele, due to their long term internal experience with their ex clients.
Finally, new clients. We’ll train junior people to professionally approach new customers,
only those we’re we’ll have a recurring healthy partnership with.
4.1 Current Clients
One of the reasons why DWA is an attractive venture is because of their existing clientele.
Absorbed via DPSC NV.
Note the major ones below. *Those with a star have current assignments running.
Hewlett Packard*
Isabel
Simac*
Vasco*
TVH*
Finarch/ Wolters Kluwer*
Tetrade
SAS
Oracle
SAP
13. 13
IBM
Telenet
Steria
Saga Consulting
AC partners
4.2 Targeted Companies via networking
Our targeted companies will be those who’ll grant us a warm invitation, and those expecting
major growth the coming years within Information Technology, marked with a *. Those with
prospected growth are big players in Back Up Recovery and Storage, Cloud products and
mobile applications.
Media Markt
Sony
EMC*
Commvault*
Fujitsu*
Johnson & Johnson
Euroclear
ING
CapGemini*
The reference
Emakina
DHL
Yara
Symantec*
4.3 Market Penetration
Our penetration will immediately start by welcoming existing clients to the new and
improved company that has absorbed DPSC NV. Followed by addressing our warm contacts
and informing then of our different way offering workforce services. We promise the
findings of key individuals, not to be found via job boards or any other public website. We
offer outstanding candidates of our own network and beyond. High caliber men and women
who trust us for magnificent career changing opportunities.
5.0 Financials
14. 14
Our financials will be explained by naming our most important expenditures towards
employees, DPSC’s buyout, pricing, DPSC’s previous results amongst other things.
Please view our ‘David Wood Associates, 5 year plan to success’ for an extensive
forecasting.
5.1 DPSC revenues in the past two financial years
Executive Search
Average fee:
FY 11 = € 24’500
FY 12 = € 17’802
12
11
10,4
10,6
10,8
11
11,2
11,4
11,6
11,8
12
12,2
# Deals Exec Search
FY '11
FY '12
294000
195822
0
50000
100000
150000
200000
250000
300000
350000
Revenue Exec Search
FY '11
FY '12
15. 15
Consulting
Average Revenue:
FY 11 = € 120’000
FY 12 = € 111’09
5.2 Pricing
Recruitment
No cure No pay fees, are percentages based on salaries of the selected candidates. No benefits
included & only a fix salary of an OTE (on target earnings).
(Annual salary)
0 – 28’000 = € 6000,- (minimum fee)
28’001 – 35’000 = 22,5%
35’001 – 45’000 = 25%
45’001 – 55’000 = 27,5%
55’001 – 65’000 = 30%
65’001 - … = Executive Search only.
E.g. placed candidate earning 3700 gross/ month.
Annual salary is 51’504 (3700*13,92).
Fee = 27,5%
1
2
0
0,5
1
1,5
2
2,5
# Deals consulting
FY '11
FY '12
120000
222178
0
50000
100000
150000
200000
250000
Revenue Consulting
FY '11
FY '12
16. 16
Price = € 14’163,6
Executive Search
Fee with a retainer split into three stages. The percentage is based on salaries of the selected
candidates. No benefits included & only a fix salary of an OTE.
The three stages our the following:
Start of assignment (1/3)
Providing shortlist (interviews) (1/3)
Selection of candidate (remainder of fee)
(Annual salary)
65’001 – 85’000 = 25%
85’001 - … = 30%
E.g. placed candidate earning 5500 gross/ month (an estimation is made at the start of the
assignment to calculate the retainer fees.
Annual salary is 76’560 (5500*13,92).
Fee = 25%
Price = € 19’140
1. € 8000
2. € 8000
3. € 3140
Consulting and RPO
Price per day set per consultant.
Price for IT personnel: Depending on duration and price of the consultant
Price for recruiter:
Junior recruiter 1-3 years experience = 400/ day
Mid-level recruiter 4-6 years of experience = 550/ day
Senior recruitment lead 7-.. years of experience = 700/day
5.3 Cost non management personnel
Junior sales
17. 17
Salary: 2300 gross/ month
Benefits: Group insurance, Meal vouchers (6eur/ day), company car once sales target
is hit (€ 200’000).
Commission
Senior recruiters
Salary: 3000 gross/ month
Benefits: Group insurance, Meal vouchers (6eur/ day), company car.
Commission:
5.4 Cost management personnel
Please view financial plan - ‘David Wood Associates, 5 year plan to success’.
1 30.000 [%] 10%
30.000 45.000 [%] 12%
45.000 60.000 [%] 20%
60.000 90.000 [%] 25%
90.000 > [%] 27%
1 30.000 [%] 10%
30.000 45.000 [%] 12%
45.000 60.000 [%] 20%
60.000 90.000 [%] 25%
90.000 > [%] 27%
