Owner-Oriented Business Planning BOLD Consulting Group, LLC: A Case Study

By Sally Dale, Alice Weiss Doyel, and Nancy Pollok
BOLD Consulting Group, LLC

* Editor’s Note: this is an example of an actual business plan written by and for a person with a disability through the Rural Institute’s Rural Entrepreneurship and Self-Employment Expansion Design (RESEED) project.

Executive Summary

BOLD Consulting Group, LLC is a home-based business owned and run by Alice Doyel and Kimberly Doyel. The business vision of BOLD is to improve the level of success and quality of life for small business owners who are at the point of growing their businesses, who are trying to do too many of the operational functions themselves, or who are continually “off-balance” due to the neglect of these major business functions. The mission of BOLD is to help small businesses become more successful by providing a full range of services for the operational functions that support their business mission, goals, and culture.

Alice Doyel is a small business owner whose achievements since the 1960s support this new division of the existing BOLD Consulting Group. BOLD assists business owners with disabilities. This new division will offer services that assist businesses with approximately two to ten employees in assessing their business operations needs and improving their operations strategies and implementation. A distinguishing element is BOLD’s network of professional business associates who offer specialized services.

Marketing often will be done jointly with the network associates, who have established relationships with ongoing clients. BOLD’s eye-catching marketing folder and brochure includes information on how BOLD works with clients, and its methods to succeed in operations management.

BOLD will initially have two part-time employees, each working only a few hours per week. These employees provide BOLD with the necessary assistance for start-up. Job descriptions are developed to expand employee roles and to hire additional employees as BOLD grows. Computer technology will be used extensively to maximize BOLD’s productivity and work quality.

The new focus of BOLD must be financially sound as a stand-alone operation. The main source of revenue will come from consulting fees. The average monthly revenue, as well as expenses, will vary with the number of clients. BOLD will operate at a comfortable level when client billing averages $5,000 per month. Funding for start-up expenses will come from the existing operations and a personal loan from Alice Doyel.

The primary risk to BOLD is the threat to Alice’s health. While this undertaking is aimed at protecting Alice’s health and allowing her to work from home, the potential for a health problem is present. BOLD employees and the network of associates will function as a safety net for Alice.

Owner’s Experience

Alice Doyel has been a small business owner with disabilities for 18 years. The central focus of all her operations has been assisting others who run their own small companies. After graduating with a degree in Business Administration, Alice began her career as a market research and site location analyst in the 1960s. Her goal was always to own her own business.

In 1984 Alice began operating her first company serving small businesses of 2 to 100 people, with most firms employing fewer than 30 people. This operation focused on helping business owners to effectively utilize the “new” personal/desktop computers. This business evolved over time to focus on consulting on financial aspects of small business–helping small business owners to increase their efficiency in financial practices and reporting, e.g., accounts receivable, accounts payable, payroll, and inventory. This enterprise gave Alice considerable experience in the field of financial management of small businesses.

The next leg of Alice’s career came as the CFO of Effective Compensation Incorporated, owned by Alice and her husband, Hoyt Doyel. This firm assisted other businesses in the area of human resources. As CFO, her experience evolved into computer strategic planning, management of employee benefits, payroll, and managing vendor and outside support staff relationships.

The most recent experience for Alice has been assisting business owners with disabilities and training non-profit and government organizations in this area. From this extensive experience and knowledge, Alice wrote the book No More Job Interviews! Self-Employment Strategies for People with Disabilities, TRN, Inc. Order Toll Free: (866) 823-9800

Alice will now apply her years of business experience and her love of collaborating with others to the new BOLD Consulting Group, offering consulting and facilitation services that assist small businesses in assessing and improving their business operations.

Bold’s Owner-oriented Business Plan

Business Name
BOLD Consulting Group, LLC
BOLD is the acronym for Business Operations with Leadership and Direction

Business Structure
Limited Liability Company
Alice Doyel and Kimberly Doyel, Owners

Business Vision
The business vision of BOLD is to improve the level of success and quality of life for small business owners who are at the point of growing their businesses, who are trying to do too many of the operational functions themselves, or who are continually “off-balance” due to the neglect of these major business functions.

Business Mission
To make small businesses more successful by providing a full range of services for the operational functions of these businesses that support their mission, goals, and culture.

Strategic Objectives
BOLD currently focuses on helping people with disabilities take advantage of their strengths, while supporting their weaknesses in business operations. Alice’s newest venture will be a small consulting business that assists other small business owners to deal with everyday business operations. Many of these businesses are family owned, and there is a great need to balance business operations with personal and family life. Helping business owners overcome business challenges will allow them to move away from the 80-to-90 hour workweek. BOLD will provide a team of consultants who specialize in various areas of business to help find solutions for the small business owner.

Business Goals
Provide a line of services for the operational needs of small businesses including:

• Assess and consult on operations needs, strategies and implementation.
• Implement recommendations or specific requests.
• Function as out-of-house operations management.
• Provide BOLD employees for ongoing or one-time operations work.
• Coordinate and/or manage relationships with associates providing operations, marketing, or financial services.

Quality of Business and Life Goals

• Network only with people who have high levels of skills in their specialty area; who are ethical, collaborative, and communicate well.
• Work only with clients who want to succeed and who will take those actions that will allow themselves to succeed.
• Set up the business in a manner that will allow Alice to balance her health needs with her business needs.
• Create a successful business that Alice owns and manages, a business that will expand gradually.

BOLD’s Home-Business Strategy

Determining the strengths, weaknesses, opportunities, and threats of expanding the existing BOLD Consulting Group operations (see the following table) helped Alice to make some key decisions regarding BOLD, the type of work being considered, and how it affects her health. The primary threat in having a home-based business lies in having too much demand, potentially causing Alice’s health problems to recur and reducing opportunity to engage in other activities that she enjoys, even significantly harming her health. A primary reason for having this business is to eliminate isolation and to help others. Making a profit is necessary, as in any case, but secondary to the other issues.

SWOT Analysis of New Business Focus for BOLD

Goals: BOLD: Business Operations Consulting

Opportunities:
• Having a potentially successful, for-profit business
• Socializing with people who have a common interest
• Means for personal growth
• Helping small businesses be more successful

Threats: Doing too much, causing a significant health problem

BOLD’s Primary Tactics

BOLD will use six tactics to achieve its strategy of operating a home-based business with a network of consultants that will help Alice protect her health.

1. BOLD’s first tactic will be to provide a full line of services for assisting in a small business’s operations needs.

• Assessing the business’s current operations functions.
• Working collaboratively with clients to develop improved operations systems.
• Helping to implement the operations systems and procedures.
• Functioning as the out-of-house operations manager or coordinator.
• Providing BOLD employees for one-time or ongoing operations projects.

2. Second tactic will be assisting a defined, targeted market niche of small business. This tactic requires clearly identifying the type of business that BOLD can best assist;

• Companies that are in the growth phase of the business and need to expand operations.
• Companies where growth has halted, but in which the business is basically successful.
• Companies where the business needs more effective operations management.
• Companies where the business owner’s time needs to be freed up or to become more focused.
• Companies that require operational changes.
• Companies whose business has recently undergone ownership or management changes.

3. The third tactic in building BOLD is to create a network of business associates who specialize in various areas of business. The associates will work collaboratively with BOLD in order to provide a full-range of consulting services to small businesses, including marketing planning and development, sales training, financial planning and management, and computer technology services.

4. The fourth tactic is defining how BOLD Consulting Group works with prospects and clients. BOLD will:

• Consult with companies that are currently successful or that have a strong potential for future success.
• Focus on business-to-business services companies with two to ten employees. This will include small wholesalers and manufacturers on an individual basis.
• Consult in or near Denver County, preferably within a three-mile radius of BOLD’s home-based office.
• Collaborate with BOLD’s marketing consultant to qualify the potential client by assessing the viability and financial stability of the business.
• Determine if the potential client is willing to take the steps that are necessary to improve the operations practices of the business in a reasonable manner and time frame.
• Take the time to understand each client’s culture and its business goals.
• Work collaboratively with clients to create and implement realistic operations goals.
• Develop operations systems such as policies, employee needs, vendor relationships, professional resources, and computer networks in order to determine the resources needed for the business to operate effectively and profitably.
• Assist in documenting operations methods and procedures so that there is control and consistency, even during times of economic and business change.
• Stay in contact with clients on an ongoing basis in order to provide the necessary support for the operations management of the business.
• Support clients having an annual company review of their operations practices and procedures, moving forward each year with a fresh perspective.

5. The fifth tactic is for Alice to monitor any health issues on an ongoing basis in order to avoid potential relapses and a significant work stoppage. In order to do that, Alice has identified and taken the following actions that should limit downtime from illness.

• Control work schedule as much as possible and work early in the day.
• Walk to meetings and other business-related chores when possible, as portion of her physical therapy.
• Limit out-of-town travel.
• Rest to prevent or alleviate fatigue.
• Prepare and eat the proper foods.

6. The sixth tactic is to use computer technology whenever possible to make BOLD a more effective consulting firm both in regard to its internal operations and its ability to work most effectively with its clients.

Operations Strategy

Organizational Structure
Alice wants BOLD Consulting Group LLC to function as a home-based business. This means that the organizational structure will be kept simple. Alice and her daughter Kimberly Doyel will function as co-owners. Employees and the network of associates will operate under the BOLD guidelines. Employees and network associates will be added when appropriate.

Organization Chart

Co-Owners: Alice Doyel; Kimberly Doyel

Core Associates: Marketing Specialist; CPA; Computer Network and Systems Specialist

Partial List of Outer Ring Associates: Insurance; Conflict Resolution; Advertising; Accounting Software

Employee Functions: Consultants; Faciliators

Project Management Team
As BOLD begins to consult with clients, initial contacts will be made either directly with BOLD, or through one of the network associates. Either BOLD or that associate will be directly responsible for the client. As other associates are brought into a project with a client, the initial associate who has been working with the client will remain as the project manager.

Network Associates
There are two levels of network associates: core associates and outer-ring associates.

The core associates are essential to the underlying concept of BOLD: to provide a full range of high quality professional services to small business. Within this core of associates, BOLD specializs in business operations. Other associates specialize in financial management, marketing and sales, and computer systems and technology. These core associates all have long established track records in their field. They also have strong business relationships with Alice. When appropriate, any or all of the core associates can function as a virtual company for a client.

Outer-ring associates are those vendors known to BOLD or any of the core associates who do quality work in their specialized fields. They will be called in when their area of expertise is needed for a client. They are also a marketing focus for BOLD, to refer BOLD to their clients and customers when appropriate.

Human Resource Plan
BOLD will open with Alice and two part-time employees. Everyone’s initial duties include developing BOLD’s start-up concepts and materials. Alice will head the marketing effort, with assistance from the other employees. She is the senior consultant; however, she will function as a facilitator when appropriate. The part-time employees will be facilitators. All three employees are involved with the various administrative and clerical aspects at this point in the business’s development.

Job descriptions, expected proficiencies, and career paths have been written for the positions of senior consultant, operations consultant, operations facilitator, and administrative assistant.

Currently, the only benefit is health insurance for full-time employees. As the business grows, a sound benefits package will be established.

Customer Service Policy
The following policies have been set up to assist the employee in understanding BOLD’s customer service policy.

• Respect the capabilities of the client company, both the owners and the employees.
• Work collaboratively with clients and with our network associates.
• Introduce our network associates to clients by outlining their background, skills, and why they are suitable to work with the client.
• Work at each client’s comfort level for developing and improving his/her business.
• Make clients feel comfortable to call anytime with questions or for support.
• Respond to clients’ calls and emails promptly, or let them know when to expect a reply.
• Provide clear, understandable, and professional information and materials.
• Determine the best long-term solutions, balancing cost with effectiveness.
• Work toward independence for our clients and their business.
• Present a commitment letter allowing the client to understand both BOLD services and the client’s requirements in regard to the relationship.
• Document the work and the methodologies for BOLD’s files and for the clients’ files.
• Work with clients in the morning when possible, especially if the topic is training or decision-making.
• Determine the appointment length beforehand, as much as is possible.
• Always arrive on time; if unavoidably late, call ASAP.
• Set next appointment before leaving the client, if possible.
• Take regular clients to lunch on occasion to talk outside of the office setting.
• Do three-month and six-month follow-ups after a project is completed, assessing the results and providing any necessary further assistance.
• Contact clients when appropriate to see if any additional services are needed.

Technology
BOLD has installed a computer network with two workstations in the BOLD home-based business office. These workstations use laptop computers with docking stations, so that the computers can function as desktop computers in the office and as portable computers to take to client sites. These workstations use the Microsoft Windows XP Operating Systems and Microsoft XP Office–Business Version, as well as other software applications and utility software. All of the software has been updated to the latest versions.

The BOLD computer network server has Microsoft Exchange Server on a Microsoft Window 2000 Operating System. This allows BOLD to have employees and associates Virtual Private Network (VPN) directly into the BOLD files on the server for easier access, less confusion, and less lost data. The security systems limits employee VPN access to BOLD working files, keeping employees other than Alice away from program files. Microsoft Exchange Server also allows BOLD to host its own web site and be its own email provider. This greatly reduces the complexity of vendors to handle these operations. BOLD uses a firm for all of its computer support, including a monthly contract with four-hour response time for critical problems.

Sales and Marketing Strategy

Primary Marketing Strategy
Referrals are key to BOLD’s marketing success.

Ultimately, BOLD will develop a customer base defined by ongoing relationships. These satisfied customers will provide referrals for expanding BOLD’s client base.

Initially, marketing will be done through direct contact with both core and outer-ring associates. Associates may have customers needing BOLD’s services. The associates can refer these customers to BOLD. Alice will have a one-on-one visit with potential associates to:

• Identify what the associate would like to gain from the initial meeting.
• Define the associate’s business.
• Distribute marketing materials explaining BOLD.
• Provide the associate with the BOLD associates application.
• Allow the associate and BOLD to market to prospective clients.

A major strength of this method is that BOLD has excellent marketing materials presented in a boldly designed folder:

• The folder’s design reflects the BOLD name with colors that speak loudly.
• The folder provides flexibility to gear marketing materials to each potential client.
• It includes BOLD’s promotional four-page brochure, with compelling images and bright colors.
• Additional information sheets outlining BOLD services, who BOLD serves best, how BOLD works with clients, and what BOLD expects of associates.
• Business cards.

Associates can present these materials to their clients in their own marketing efforts. This allows BOLD to initiate warm leads, and to consider associates and network resources as lead generators. These marketing pieces also serve as guidelines to associates for referring companies to BOLD Consulting Group.

A future marketing tool will be to jointly host, fee-based seminars with associates on various topics and areas of common concern or on problems in stimulating new customer contacts. These seminars will take place two to four times a year. In them, two to three associates will focus on a 45-minute presentation.

E-Marketing
Monthly e-bulletins on topics drawn from a variety of network participants will help to stimulate new customer contacts as well as create awareness. Topics would reflect the needs businesses might have and would show solutions or strategies that help to resolve problems. These e-bulletins will be short, approximately two to three paragraphs long, hitting the main point quickly.

A web site is planned that will mirror the marketing materials mentioned above. Copies of past e-bulletins will be available on the website for access by potential customers. Also, links to services offered by associates will enhance and supplement BOLD’s services.

Market Analysis

Market Niche
BOLD’s targeted market segment is:

• small business-to-business companies with 2 to 10 employees
• “service businesses,” but (sub) contractors, small distributors, and small manufacturers are considered on an individual basis
• businesses which have seen moderate to good success but have needs in the operations area
• companies in a growth phase, needing to expand or modify their operations
• successful businesses that have reached a growth plateau and need more effective operational strategies and management
• businesses whose owners need to free up their time for more focused management activities
• future: someone purchasing a business who lacks experience in business operations

Physical Market Area
The physical extent of BOLD’s service offering will be in the Denver SMSA. Alice has a challenge in reaching a wide marketing area because she does not drive. There are many businesses within a three-mile radius of Alice’s home-based office, so she will work to develop her practice in that physical area. Since Alice does not pay rent, she can put money into having an employee drive for her or she can use taxis. When she markets with Associates, they are often willing to drive her.

Alice strongly believes that working at a client’s location and working face-to-face with clients are important aspects for successful small business consulting. Although some work can be done at Alice’s office and some through telephone and email contact, she will not reduce the quality of her client services by reducing meetings at client locations.

Key Competitors

• Small business consulting firms, especially those with the same focus.
• Accounting firms focusing on the small business.
• Family and friends of the small business owner.
• A business partner, existing or potential.
• An employee, existing or potential.

Promotion Methods
BOLD will actively promote its services by:

• Marketing jointly with the core associates who have established relationships with their ongoing clients.
• Marketing to the outer ring of associates or resources, the companies that BOLD and its associates will be recommending, to encourage them to bring in BOLD when they feel one of their customers is in need of BOLD’s services.
• Marketing to small to medium-size CPA firms, whose customers are small businesses. If they are not providing these services themselves at the level that BOLD can provide, they may be excellent referral sources for BOLD. BOLD works with the day-to-day aspects of the business, something CPA firms often do not want to undertake.
• Working with a few good customers. BOLD has defined whom it will and will not work with as prospective clients. This will keep BOLD from wasting time and energy on non-productive prospects and on clients who do not work effectively and can sap a small business’s time and energy. This will also provide BOLD with customers who will be strong referral resources.
• Limiting the time spent on an individual prospect, such as those who try to get free information by asking for more and more in the proposal process, then often just walking away. BOLD will also “fire” the rare client who is a drain on the business.

Initial Sales Strategy
Alice does not want to start with more than two or three primary clients in the first six to nine months, both to test her health and to test the concept. There could be additional smaller projects or work that BOLD would only be involved with on a limited basis.

It is absolutely necessary that the BOLD Consulting Group concept fits into Alice’s life style. The biggest threat to BOLD is the threat to Alice’s health. During the initial months of operation, guidelines for future growth of the company will be determined. During that time frame, guidelines will emerge on how BOLD employees and associates will handle potential downtime, should a health issue arise for Alice. Projecting potential sales beyond the initial six to nine months is not currently determinable, but as BOLD accrues clients, these projections will be made.

Financial Strategy

Income
The pricing structure will be based on an hourly rate that can be quoted to potential customers in price tiers depending upon that customer’s needs. The three tiers will include:

• Highest fees for pure consulting.
• Moderate fees for consulting and assisting with implementation of consulting recommendations.
• Lowest rates for ongoing project work such as organizing, file work, or general office tasks.

Based on these factors:
• Alice - $75 to $175 per hour, depending on the activity.
• Other BOLD employee - $40 to $75 per hour with the average being $60.

The assessment of customer needs will be billed on an hourly basis. The length of time required will vary, based on the individual situation for each company. Projects or assignments that result from the assessment may be billed either on a strict time and materials basis (usually based on a reasonable estimate) or on a flat fee basis. Some flexibility of consulting fees will be necessary in order to accommodate jobs that have special requirements or tasks or for jobs that do not fit a normal pricing structure.

BOLD billing rates will be approximately three to four times the employee’s salary. In most cases, employees will be doing both client work and non-billable work such as general office work and marketing. The billing rates must cover:

• Client billable time.
• Overhead cost, including the employee’s time doing office-related work.
• Marketing time.
• Training time.
• Over-budget projects.
• Time lost from uneven flow of work.

Alice’s salary is averaged to $40 per hour to reflect the amount of time necessary to run and manage BOLD, including 25% of her time involved in marketing efforts (closer to 50% at start up.) Alice anticipates being paid only when all other expenses have been met. Alice would like to work an “effective” 25 hours per week, which could easily take an actual 35 hours or more, due to her cognitive and physical condition, and fatigue limitations. If 40% of her “effective” time were billable (10 hours per week) she would bring in approximately $60,000, or $5,000 per month. The remaining hours would be devoted to marketing (at least seven hours per week), and management and coordination (eight hours per week).

Billable employee time is targeted at 67% to 75% of their time, though in the beginning months it will be closer to 50%. There may also be times with new employees, and new types of work with existing employees, where time spent on a project will not be billable because of the learning curve and training time. This is especially true at start up, which lowers the break-even point. Initial employee costs will be $20 per hour, and may be “bonused” or paid at a second higher rate if a long-term client job reaches the higher end of the billing rate scale. Employees who are strong and successful marketers will receive compensation for these skills, but this factor is not calculated into the current pay structure.

Income from the client billable time covers a substantial portion of the overhead costs above Alice’s salary. The employee billable work would then cover the remaining overhead costs, including the portion of their salaries for their non-billable time.

In determining the fee schedule, consideration was given to the fact that BOLD’s target market is the small business, and many small businesses may not be able to afford overly high rates. It is also assumed that the customer will receive highly specialized, successful collaborative consulting and facilitation services from BOLD, thus making BOLD’s services well worth the expenditure for the client.

Expenses
Alice has designed a business where regular monthly expenses are relatively moderate for a consulting firm ($3,000 per month) in order to minimize risk to the business from any health problems she may experience. This expense estimate includes employee salaries for non-billable work only. If employees are doing billable work, that expense will be covered by increased income.

The most significant start up expenses were:
(1) a computer network and completely updated software for BOLD’s home office and for remote access for BOLD employees and owners,
(2) developing BOLD’s consulting strategies, methods, approaches, and the extensive consulting materials, which enable BOLD to work effectively with clients, and
(3) development, design, and printing of BOLD’s creative and effective marketing materials. These essential start up expenses were approximately $20,000.
Additional funds were needed for basic business operating expenses during the start up period.

Creating Opportunity

Alice Doyel is applying her extensive experience and collaborative skills to building a successful, for-profit business that helps other small businesses become more successful. She has created the opportunity to enjoy all the benefits of owning her own business while working from home and protecting her health.

Contact Information

Alice Doyle, Sally Dale, and Nancy Pollock
BOLD Consulting, LLC
1510 E. 10th Ave. Suite 7W
Denver, CO 80218
(303) 674-3383
adoyel@bold-oowners.com