Acme Consulting will be a consulting company specializing in marketing of high-technology products in international markets. The company offers high-tech manufacturers a reliable, high-quality alternative to in-house resources for business development, market development, and channel development.
Acme Consulting will be created as a California C corporation based in Santa Clara County, owned by its principal investors and principal operators. The initial office will be established in A-quality office space in the Santa Clara County “Silicon Valley” area of California, the heart of the U.S. high tech industry.
Within the US and European high tech firms that Acme plans to target,we will focus on large manufacturer corporations such as HP, IBM & Microsoft. Our secondary target will be the medium-sized companies in high growth areas such as multimedia and software. One of Acme’s challenges will be establishing itself as a real consulting company, positioned as a relatively risk-free corporate purchase.
Industry competition comes in several forms, the most significant being companies that choose to do business development and market research in-house. There are also large, well known management consulting firms such as Arthur Anderson, Boston Consulting Group, etc. These companies are generalist in nature and do not focus on a niche market. Furthermore, they are often hampered by a flawed organizational structure that does not provide the most experienced people for the client’s projects. Another competitor is the various market research companies, such as Dataquest and Stanford Research Institute. Acme Consulting’s advantage over such companies as these is that Acme provides high level consulting to help integrate market research data with the companies goals.
Acme Consulting will be priced at the upper edge of what the market will bear, competing with the name-brand consultants. The pricing fits with the general positioning of Acme as providing high-level expertise.
The company’s founders are former marketers of consulting services, personal computers, and market research, all in international markets. They are founding Acme to formalize the consulting services they offer. Acme should be managed by working partners, in a structure taken mainly from Smith Partners. In the beginning we assume 3-5 partners.
The firm estimates profits of approximately $65,000 by Year 3 with a net profit margin of 6%. The company plans on taking on approximately $130,000 in current debt and raise and additional $50,000 in long-term debt to invest in long-term assets. The company does not anticipate any cash flow problems arising.
- Sales of $550,000 in Year 1 and $1 million by Year 3.
- Gross margin higher than 70%.
- Net income more than 5% of sales by Year 3.
Acme Consulting offers high-tech manufacturers a reliable, high-quality alternative to in-house resources for business development, market development, and channel development on an international scale. A true alternative to in-house resources offers a very high level of practical experience, know-how, contacts, and confidentiality. Clients must know that working with Acme is a more professional, less risky way to develop new areas even than working completely in-house with their own people. Acme must also be able to maintain financial balance, charging a high value for its services, and delivering an even higher value to its clients. Initial focus will be development in the European and Latin American markets, or for European clients in the United States market.
1.3 Keys to Success
- Excellence in fulfilling the promise–completely confidential, reliable, trustworthy expertise and information.
- Developing visibility to generate new business leads.
- Leveraging from a single pool of expertise into multiple revenue generation opportunities: retainer consulting, project consulting, market research, and market research published reports.