Human Resources Consulting Business Plan
Human Capital Maximizers (HCM) is a human resource consulting company located in Portland, Oregon. HCM has expertise in a wide range of HR areas and is targeting the emerging company market. HCM will offer this market the ability to compensate client’s employees with stock options from their company. This will be especially appealing to many start-up companies that find capital scarce.
Major Adversity, the founder and owner will be leveraging his past and current personal/professional relationships to generate business for Human Capital Maximizers. Major will be the sole employee until month six when he will be hiring a human resource specialist/manager to help out with the consulting. Human Capital Maximizers will show increasing profitability over the next three years.
1.1 Keys to Success
The keys to success are to provide a needed service while providing a flexible means of compensation.
Human Capital Maximizers’ mission is to provide human resource consulting for emerging companies. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
The objectives for the first three years of operation include:
- To create a service-based company whose primary goal is to exceed customer’s expectations.
- To increase our number of clients served by 20% per year through superior performance and word-of-mouth referrals.
- To develop a sustainable start-up consultancy firm that can survive off its own cash flow and has significant equity holdings in emerging companies.
Human Capital Maximizers is a HR consultancy firm serving the Portland area market. HCM will be set up as an Oregon Corporation owned by Major Adversity and will focus on emerging companies.
2.1 Company Ownership
Human Capital Maximizers is a privately held Oregon corporation founded and owned by Major Adversity.
2.2 Start-up Summary
Human Capital Maximizers will incur the following start-up expenses:
- Two desks, two chairs, and two lockable file cabinets.
- Two computer systems including a CD-RW, printer and a third computer to serve as a server.
- DSL router and DSL connections.
- Two telephones, fax machine, and copier.
Please note that the following items which are considered assets to be used for more than a year will labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.
Human Capital Maximizers provides human resource consulting to emerging companies in the Portland/Vancouver market. Human Capital Maximizers will charge a below market rate and take stock options in the company. Human Capital Maximizers will provide consulting for the following service areas:
- Human resource management.
- Organizational management.
- Professional development.
- Employee relations.
- Labor relations.
- Benefits and compensation.
- HR policy and procedure.
- Executive search.
- Sexual harassment.
- Position classification.
- Personnel management systems.
- Performance evaluations.
The pricing structure will either be an hourly rate or a per project fee. These options will be settled on in negotiation with the client. In general, Human Capital Maximizers is willing to be as flexible as possible.
Market Analysis Summary
Emerging companies will be the target market for several reasons:
- They are in need of HR services as they are growing rapidly.
- They often do not have a large enough in-house solution as they are increasing in size.
- Capital is a scarce resource for emerging companies so the ability to accept stock options in replace of cash is appealing.
The emerging company market can be further broken down into two categories, technology and non-technology. The significance of the breakdown is not that significant because many of the networking activities are occurring in settings that do not differentiate between technology and non-technology.
4.1 Market Segmentation
Human Capital Maximizers market can be segmented into two different groups, emerging high-tech companies and emerging non-high tech companies. The emerging high-tech companies are going to be the larger of the two segments. Even with the Internet bubble bursting within the last year, there are still many different emerging high-tech companies proliferating. This is evidenced by the Business Journal of Portland which in their annual list of fastest growing companies for this year, 18 of the top 25 were technology companies.
There are also non-technology companies that are emerging in the Portland area and Human Capital Maximizers will be able to serve them as well.
4.2 Target Market Segment Strategy
Human Capital Maximizers’ two markets will be primarily targeted through networking activities. Some networking will be conducted through the Oregon Entrepreneur Association, an association that supports entrepreneurial ventures in the local area. This organization has monthly meetings that are in round-table format, allowing members to socialize.
Human Capital Maximizers will also be networking from personal/professional contacts that Major has developed professionally in the last five years in the HR/start-up industry. HCM will also be relying on word of mouth to grow its customer base.