O'Connor & Partners

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Agricultural Consultants Business Plan

Company Summary

O'Connor & Partners LLC is a new consulting venture that is planned to officially open for business on January 1. Headquartered in Minneapolis, MN, USA, there will be external affiliates around the globe. We sell consulting services only in industries and activities associated with the industrial bio-refinery, the integrated business systems that are revolutionizing the production of chemicals and energy from renewable resources.

2.1 Start-up Summary

Total start-up expenses are estimated in the table below. Some of these categories are largely unknown (e.g., insurance) reasonable estimates are made. Other items can be purchased as revenue is obtained and more resources are needed to keep up with the work.

The plan calls for some liquid assets at start-up. This fund will pay expenses for the first few months, as well as providing a cash-reserve fund.

Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $500
Brochures $500
Insurance $1,000
Rent $1,000
Research and Development $1,000
Expensed Equipment $4,000
Total Start-up Expenses $10,000
Start-up Assets
Cash Required $40,000
Other Current Assets $0
Long-term Assets $0
Total Assets $40,000
Total Requirements $50,000
Start-up Funding
Start-up Expenses to Fund $10,000
Start-up Assets to Fund $40,000
Total Funding Required $50,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $40,000
Additional Cash Raised $0
Cash Balance on Starting Date $40,000
Total Assets $40,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Investor 1 $25,000
Investor 2 $25,000
Additional Investment Requirement $0
Total Planned Investment $50,000
Loss at Start-up (Start-up Expenses) ($10,000)
Total Capital $40,000
Total Capital and Liabilities $40,000
Total Funding $50,000

2.2 Company Ownership

The company will be organized as a limited-liability company (LLC), which will allow easy changes of ownership in the future, as well as certain tax advantages. Start-up investment is needed. The total valuation of the firm has been estimated to be modest, and a net worth to be realized during year 4 of the operation (according to the plan). As of this writing, 20 equity shares will be offered at $5,000 for 1% ownership each. In this way, 20% of the initial operation will be owned by outside investors. The remaining 80% of the venture is initially owned by the founder, Dr. Ryan O'Connor, but the ownership will ultimately be shared among all future partners (to be recruited as the business grows).

As an option, 70% total return on investment might be paid after three years to the equity investors, whose ownership would be transferred to the firm partners. Thus each initial share would be returned $8,500, or 18% annualized ROI over three years. This plan presents an exit strategy but also offers the long-term upside of the business to any initial investors.

2.3 Company Locations and Facilities

Office space will be rented in the Twin Cities (Minneapolis/St. Paul) of Minnesota. A downtown office location will be advantageous, especially if some of the local clientele are also positioned downtown. The founder will retain a home office as well as one at the central headquarters. This office will help serve clients in the Minnetonka area (western suburbs of Minneapolis), such as Cargill or Cargill Dow LLC.