Strategy and Implementation Summary
Human Capital Maximizers will use their competitive edge of compensation flexibility to attract emerging companies. This competitive advantage is especially valuable to emerging companies who are typically struggling to find enough capital to grow their business. Accepting stock options as compensation is useful because equity is one thing these companies have lots of (that is of course if they haven't given it all away to the Venture Capitalists).
Human Capital Maximizers will have several milestones early on:
- Business plan completion. This will be done as a roadmap for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company.
- Set up office.
- HCM's first five customers.
5.2 Sales Strategy
As stated earlier, the marketing and sales will be done primarily through networking. This means the bulk of the leads will have been developed through a personal/professional relationship that Major has developed either in his previous professional work or through his activities with the Oregon Entrepreneurs Association and other similar associations. The sales spiel will be based on Human Capital Maximizers experience in the field as well as their flexibility for compensation. Major will be able to explain to the prospective client the areas that he has experience in and the solutions that he can offer.
Major will also be able to speak about Human Capital Maximizers ability to accept options in lieu of cash. This will be appealing to companies, particularly in the current capital market which is quite scarce. Since capital is more difficult to come by now than in the last few years, emerging companies will be excited about this option.
5.2.1 Sales Forecast
The first month will be used to set up the office. Additionally, during the first month Major will be working hard on developing contracts. The second month will see some activity, but it will not be until month six when business will be picking up at a higher rate. Sales will continue to grow through year three.
5.3 Competitive Edge
Human Capital Maximizers competitive edge is their flexibility for compensation. Most or all other companies require compensation to be in the form of cash, for them cash is king. Human Capital Maximizers is able to take stock options in lieu of some cash. While Human Capital Maximizers needs some cash to float the business, it can take up to 75% of its fees in equity. Human Capital Maximizers is able to do this because they have secured an office space that is low in cost, helping them reduce their overhead. In addition, Major's wife contributes a significant portion of money to the household so Major is not in need of a lot of monthly compensation. This allows him to accept options as payment in hopes of an upside to come several years for now. (Please note the the HR industry, unlike law firms and accounting firms do not run into conflict of interests situations regarding receiving equity as compensation.)