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					Training and Development Consulting Group
             Business Plan

               By Javier Martinez,
              Margie Saavedra, and
                William Benedict
                                                                                  Training and Development Consulting Group


                                                    TABLE OF CONTENTS

EXECUTIVE SUMMARY ......................................................................................................... 2

COMPANY OVERVIEW .......................................................................................................... 4
     Mission Statement ................................................................................................... 4
     Company Values ..................................................................................................... 4

INDUSTRY ANALYSIS ........................................................................................................... 5
      Industry Trends and Strategic Oportunities ........................................................... 7

TARGET MARKET ANALYSIS ................................................................................................ 9

COMPETITION ANALYSIS ................................................................................................... 11
     Market Share Diagrams ........................................................................................ 13
     Competition Ranking ............................................................................................ 14

MARKET PLAN ANALYSIS .................................................................................................. 15
     Establishing Credibility and Brand Development ................................................ 18
     Networking, Building Partnerships, and Driving Sales........................................ 19
     Sales of Service Process Diagram ........................................................................ 21

BUSINESS STRUCTURE AND OPERATION ............................................................................ 22
      Structural Methodology Diagram ......................................................................... 22
      Task Outline for Operation ................................................................................... 23
      Pricing Structure and Strategy ............................................................................. 24

FINANCIALS ....................................................................................................................... 25




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                                                             Training and Development Consulting Group


Executive Summary

Company

While Humboldt County has a diverse and educated workforce; successful organizations recognize the
need to train and develop their employee’s soft and technical skills in order to have functional and
competitive human resources. Many soft and technical skills are competencies that often are outside the
realms of employee’s professional and formal training, or that result from new technological skill gaps.
However, small businesses often do not have the expertise or the time to manage the training function.

The Training and Development Consulting Group (TD Consulting Group) is a consultancy funded by
Javier Martinez, Margie Saavedra, and William Benedict that works with businesses to identify their
training and development opportunities, create, and deliver a variety of custom courses, seminars, and
value adding solutions in the areas of organizational development, safety management, and process
development. Our goal is to provide the best customized training and development programs helping
businesses build a sustainable competitive advantage on their most important resources: their workforce.


Management
TD Consulting Group has a great team that is diverse and capable. Javier Martinez, TD Consulting
Group’s Organizational Development Consultant, has a Bachelors of Science in Business Administration
and is currently enrolled in Humboldt State University’s MBA program. Javier has seven years of
management and organizational support experience in manufacturing environments, two of those years as
a corporate trainer. Margie Saavedra, TD Consulting Safety Management Consultant, has a Bachelors of
Arts in Political Science and a Bachelor of Science in Business Administration. Margie has four years of
experience managing the training and safety function. William Benedict, TD Consulting Group’s
Manufacturing Process Consultant, has a Bachelor of Science in Manufacturing Process and Operations
Management supported by a Minor in Business Administration. William has extensive and varied
experience in manufacturing environments and project management.


Target Market and Competition

Our target market will consist of small business in the growing niche manufacturing industries of
Humboldt County. Competition presents itself in a number of different ways including local and outside
trainers and consultants, institutionalized training mainly from College of the Redwoods and Humboldt
State University, national training companies such as Fred Pryor and CareerTrack, online eLearning
alternatives, and in-house training departments. While competition appears intensive, we believe that


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                                                               Training and Development Consulting Group

available options do not service the market appropriately and that TD Consulting can establish itself as a
valuable resource and partner in the learning resources community that services Humboldt County.

The Safety training market segment in Humboldt County is underserved as current competitors North
Coast Safety Consortium, and a small number of consultants do not have enough capacity or array of
services. The Organizational Development market segment faces institutionalized learning and other
options that are bureaucratic, time consuming, and lack the focus on specific business and development
needs of small businesses. The Process Innovation market segment relies primarily on in-house
initiatives, lacking a facilitator or consultant that can support initiatives and programs that guide and
allow innovation to occur. TD Consulting will be able to provide consulting and training services
benefiting the process development of the niche manufacturing industries and promoting innovative
thinking habits.


Business Model

Our business model is based on providing cost effective quality services that keeps clients coming back
for all their training and business development needs. TD Consulting services offer flexible, customized,
on-site instruction and specialize in training delivery both in English and Spanish. Our consultants have a
blend of passion, knowledge of the most current business practices, accreditations, and experience needed
to provide a credible and valued service. Additionally, TD Consulting Group’s low start up cost, and its
member’s diverse qualifications and solid business background will help ensure not only a profitable
endeavor, but a valuable and much needed resource to the business environment of Humboldt County.




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                                                             Training and Development Consulting Group


Company Overview

The Training and Development Consulting Group (TD Consulting Group) is a consultancy funded by
Javier Martinez, Margie Saavedra, and William Benedict. The TD Consulting Group works with each
business to identify their training and development opportunities, creates, and delivers a variety of custom
courses, seminars, and consulting solutions in the areas of organizational development, safety
management, and process development. Our goal is to provide the best customized training and
development programs helping businesses build a sustained competitive advantage on their most
important resources: their workforce.


Local businesses will benefit from newly available and more affordable programs as they gain a more
skilled workforce that is able to meet their demands while strengthening their competitive edge.
Additionally, businesses can experience benefits such as increased retention, improved morale, and
increased productivity. The TD Consulting Group is geared to make a difference within Humboldt
County’s isolated geographic area by providing local, available, and affordable solutions.


Company Mission

The TD Consulting Group is dedicated to provide the best consulting and customized training and
development service experience by focusing on organizational development, safety management, and
process development to the niche manufacturing markets of Humboldt County.


Company Values

It is important to us that businesses are well integrated into the community around them. Therefore, in
our practices we plan on working as a conduit for community networking and promoting the ideals
presented by the people of Humboldt County as we conduct our work. The TD Consulting Group has a
whole business focus as our services are built to target powerful issues and needs of our clients, and work
on all levels of functionality, to enable optimum performance and efficiency. We believe, that by
benefiting our clients and building the business environment of Humboldt County, the integrity of
Humboldt County will greatly benefit on economic and social levels.




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                                                               Training and Development Consulting Group


Industry Analysis

The services we offer are commonly referred by the American Society for Training and Development
(ASTD) as the workplace learning and performance improvement industry. Our business activities
however, as defined by the North American Industry Classification System (NAICS) are a part of three
different industries: Professional and Management Development Training (611430), Process, Physical
Distribution, and Logistics Consulting Services (541614), and Other Scientific and Technical Consulting
Services (541690).


Process, Physical Distribution, and Logistics Consulting Services

The Process, Physical Distribution, and Logistics Consulting Services industry (541614), incorporates
consulting solutions with custom made training courses and implementation advice in areas, such as: (1)
manufacturing operations improvement; (2) productivity improvement; (3) production planning and
control; (4) quality assurance and quality control; (5) inventory management; (6) warehouse use,
operations, and utilization; and (7) materials management and handling.


Professional and Management Development Training

The Professional and Management Development Training industry (611430), involves the offering of
short duration custom made courses and seminars or the consulting solutions and implementation advice
directed toward an organization’s overall workforce and management team. Training for career
development would be provided directly to individuals or through employers' training programs; and
courses customized to meet the special needs of customers. Instruction would be provided in diverse
settings, such as the client's training facilities or workplace, and through diverse means, such as live
instruction or self paced online modules. Example of topics offered would include: Supervisor Training,
New Employee Orientation, Leadership Development, and Sexual Harassment.


Other Scientific and Technical Consulting Services

The Other Scientific and Technical Consulting Services industry (541690), includes all training courses,
certifications, and consulting solutions that would enable organizations to meet mandatory and
compliance standards and technical issues on the topic of safety and security. Example of topics offered
would include: Forklift, Aerial Lift, Confined Spaces, and Lock Out/Tag Out training.




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                                                              Training and Development Consulting Group


Current State of the Industry

Workplace learning and performance improvement has grown steadily as a field since 2001, as learning
professionals continue to refine and enhance the transfer of knowledge to employees through innovative
practices, many companies’ commitment to maximizing the potential of their workforce is now embedded
in their mission and culture. As detailed by American Society for Training and Development’s (ASTD)
2008 State of the Industry report, investment in workplace learning and performance improvement has
remained strong from both a financial and operational standpoint despite the state of the economy. ASTD
national estimates reveal that organizations spent $134.39 billion on employee learning and development
in 2007, nearly two thirds ($83.62 billion) was spent on the internal learning function while the remainder
($ 50.77 billion) was allocated to external services.


In order to stay competitive, foster innovation, and run operations efficiently, businesses find themselves
needing to train and develop their workforce’ soft, technical, and industry specific skills; which may be
outside the realms of their employee’s professional and formal training. Yet, Humboldt County possesses
limited local resources that provide relevant training and development courses and consulting, resulting in
low availability and prohibitive costs to small businesses.


North Coast Prosperity’s most current Manufacturing State of the Industry Report identifies the following
as key challenges: training, developing and retaining high-skilled talent, the need to have models in place
to develop and transition existing businesses to new leadership in order to accommodate entrepreneurs
who want to retire, and the need to have additional workforce Spanish-English business language training
for both managers and line staff. TD Consulting Group is geared to make a difference by addressing the
North Coast Prosperity’s identified niche manufacturing needs.


Local businesses will benefit as they gain a more skilled workforce that is able to meet their demands
while strengthening their competitive edge. Additionally, businesses will experience benefits such as
increased retention, improved morale, and increased productivity. Over time, a more skilled workforce
combined with more productive businesses will contribute and promote economic development for
Humboldt County.




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                                                             Training and Development Consulting Group


Industry Trends and Strategic Opportunities


Continued Commitment to the Learning Function and Improvement Methodologies

Organizations continue to invest in the professional development of their employees more than in the past.
The national average of direct learning expenditures per employee was $1,103 in 2007 while the average
direct learning expenditures in progressive organizations were $1,451 per employee. The national
average of learning hours per year was 37.1 while for progressive organizations 44.7 hours. While
Humboldt County organizations trail the industry by a substantial difference the national averages are a
good indicator of how successful and progressive organizations operate and we expect that as
organizations in Humboldt County experience more variety, availability, and affordability through TD
Consulting, the trends will adjust upward towards the national averages.


Increase Use and Efficiency of e-Learning

Growth in e-Learning technology has enabled efficiency gains and allowed many organizations and
consultants to reach more recipients. However, e-Learning platforms require a solid financial
commitment for development and regular maintenance. Even though big organizations are viewing these
types of technology driven expenses as necessary for daily operation of the learning function, Humboldt
County’s niche manufacturing businesses, most of them relatively small (less than 100 employees) are
unable or currently unwilling to make the substantial investment. The TD Consulting Group will provide
conventional and personalized training, as a more affordable substitute, as well as a variety of innovative
and affordable e-Learning modules that are less intensive and customized to small groups if our clients
would like a reusable training module.


Strict Safety Regulations

California’s regulations and certification systems are some of the most complex and strict in the nation.
Every industry has its own set of required training they are required to update yearly. In order to maintain
a safe work environment companies must train all employees in different areas. Staying current on these
issues is very important for small business, therefore is not surprising that mandatory training and
compliance to health and safety regulations will continue to be the leading reason for organizations to use
internal and external training and consulting resources.




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                                                              Training and Development Consulting Group


Limited In-House Resources

In small businesses the training function typically consists of one person, who usually fulfills additional
management roles, and does not run training programs themselves. Instead, this individual functions as a
broker of training services, finding outside consultants or providers who can deliver training to meet the
company's needs at a time and place convenient to employees, and at a reasonable cost. In order to
maximize training efforts, the company’s trainer may work with production line managers and
supervisors on developing and conducting their own on-the-job training sessions. In both scenarios TD
Consulting can provide customized assistance to fill the internal gaps, putting us in a position to capitalize
on those opportunities.


Availability of Federal and State Funds

Government funding at the federal and state levels is available to small companies to use for employee
training and development. The American Recovery and Reinvestment Act (ARRA 2009), and agencies
such as The Department of Labor, The Employment and Training Administration, and local economic
development groups make available grants and tax credits that can become a substantial part of a
company’s annual training budget. TD Consulting will work with different agencies to become an
approved provider and facilitate relevant information regarding funds to our clients.


Barriers to Entry

Entering any industry in a small community may be difficult because people feel comfortable with what is
already available. Customer loyalty with existing business is difficult to break. The current Safety
Training Company has been part of the community for the last 20 years. Since they have been the only
game in town for so long, their customers rely solely on them for their training needs. However, this also
limits their availability and inflates their prices.

Gaining credibility is a challenge that would be met by investing in a variety of certifications and
memberships to industry recognized associations, but most importantly, TD Consulting will strive to
provide great quality and customer satisfaction with every interaction with our clients.


Long Term Opportunities

Once we have entered the market and companies are aware of us, we can easily expand and offer more
training options. TD Consulting Group will have better knowledge of what each individual company
needs and will be able to accommodate to their own unique needs.


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                                                              Training and Development Consulting Group


Target Market Analysis

TD Consulting focuses on a target market of established companies as well as developing companies in
Eureka and the surrounding area of Humboldt County, and by having three consulting services available,
must effectively have three target markets.

Established businesses can develop new or improve on old systems of production, management
communication, and keep current on regulation required safety training. Newly forming companies can
use our services to ensure that their entry into the market is not hindered by the often overlooked inner-
workings of a company.

All services offered by TD Consulting must be accepted by the owner, president, or CEO of the target
company so we will focus on personal selling based on identified market segmentation.


Safety Training Segment

TD Consulting will primarily focus on small businesses that do not already have in-house training
programs as these businesses will have more transparent needs. For any sized business, TD Consulting
Group will be able to streamline existing safety plans where needed.

Safety training is often required by law to be performed on a regular annual basis. Hence established
companies that have passed the five year longevity mark will be targeted for lasting contracts. These
companies will be our primary target market because of the sheer amount of services which they will
need performed.

Target companies in Humboldt County which may need safety training services include but are not
limited to: Sun Valley Floral Farms, Cypress Grove, Humboldt Sanitation, and Thomas Home Center.


Management and Communication Segment

Larger companies with many employees will benefit greatly from this service. These larger companies
often have diverse areas of work with different branches which must communicate on a daily basis.

Companies may have communication or human resource specialist positions in-house, which could be
either positive or negative in terms of targeting that company. Existing in-house human resource
positions means that information on company intra-management/communication already exists, lessening
our primary research needed. Company owners may think that our services are not needed if they have a
human resources branch already established.


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                                                            Training and Development Consulting Group

TD Consulting may choose not target companies based solely on their management and communication
needs, but can advise this training service as an extenuation of company growth and development.


Process Development Segment

Production companies in the area include manufacture of refrigerators, lumber, and more; yet trend more
towards food production and agriculture. This diversity of companies makes personal selling a key aspect
when targeting a company as our services (manufacturing operations improvement; productivity
improvement; production planning and control; quality assurance and quality control; inventory
management; warehouse use, operations, and utilization; and materials management and handling) must
be adopted to individual customers as the need and result for each service would affect each company
differently.

We plan to target privately owned restaurants; and the packaged food businesses such as Berry’s Theater
Cookies or Venlo Chocolates. Packaged food companies would benefit greatly from application of
quality control measures, innovation of processes, as well as inventory management.

Newly established businesses are the primary target market for process development, as larger and
venerable companies might be more resistant to change, or have qualified in-house quality experts already.


Trends in Target Market

By focusing on businesses as our target we must identify the need and timing at which our services will
be most valuable to our clients.. Training in Safety and Management Communication is a cyclical
requirement for businesses and shall perpetuate itself with the natural cycles of employment and
California regulations. Process Development service opportunities shall present themselves with the
trends in resources available, with advances in technology, and with the emergence of new businesses
into the vast market of production.




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                                                                Training and Development Consulting Group


Competition Analysis


                                                                Local Trainers
                                                                In-House Training
Safety Training
                                                                Outsourced Trainers
                                                                e-Learning
                                                                In-House Training and e-Learning
                                                                Workshops
Organizational Development                                      Community Development Initiatives
                                                                Outsourced Contracting
                                                                Traveling Speaker Programs
                                                                Local Consultants
Process Development                                             In-House Innovation
                                                                In-House e-Learning
                                                                Outsourced Contracting



Local Competitors

TD Consulting Group would face local competition for safety training from Northern California Safety
Consortium. NCSC is a safety training company that works out of McKinleyville and has been part of the
community for 20 years developing an extensive client list. To compete with NCSC, TD Consulting
Group will focus on safety as part of total business development. Availability is also an advantageous
factor seeing as NCSC is a “one man” operation. Some businesses, such as Holly Yashi, have good
systems for training new employees to work safely. These training systems are formed in-house and are
based on the oversight of middle management. In-house safety training is a competitor for a small portion
of our services which do not need a licensed safety trainer. Safety trainers are also hired from out of the
area to perform OSHA inspections. TD Consulting Group would be a more cost effective alternative to
out of the area trainers due to the lack of travel or housing expenses.


In the area of Organizational Development, institutions of higher education such as College of the
Redwoods and Humboldt State University provide business and community development classes. These
classes are more for individual development of a person, and lack the attention to specific work
environments. TD Consulting Group’s services will focus on the specific needs that a business has and
hold on-sight, interactive organizational development trainings. The North Coast Small Business
Development Center offers free workshops for small and new businesses, focusing on business plan


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                                                              Training and Development Consulting Group

writing, financials, and market analysis. The SBDC looks more into organizational structure while TD
Consulting Group’s services will be oriented toward the management and communication of human
resources. Management and Communication Training consultants may appear in the form of traveling
speakers whom hold seminars, or may come directly to a business if requested. These speakers are costly
yet offer a very sound service product. It is known that Mad River Hospital has hired communications
consultants from out of the area and had positive results.


Currently, there are no competitors in process development consulting companies in Humboldt County.
All issues dealing with process development are either handled in-house by executive decision or by
committees. Company owners may invest into online training courses for company management in the
areas of Six Sigma and LEAN Manufacturing to help generate innovative process thinking, or to directly
work on process improvement through quality analysis. There are many process development consultants
and quality analysis statisticians across California and the U.S.A. which may be called upon for
outsourced contract consulting.


Barriers to Entry

NCSC holds a large portion of the market share presents a large barrier to entry. Companies have
relationships with NCSC which may be hard to break. TD Consulting Group is a new company
composed of a younger demographic. Customers may question our abilities based on our age and levels
of experience. Accreditation will prove to be a means to overcome this barrier to entry, yet presents a
new barrier by increasing start-up costs. Start-up costs will tend to be low as we need no formal location
or storefront in early phases of the business, and plan to utilize personal computers and vehicles.


Strategic Opportunities

We plan to enter the market by being more available to our potential clients by providing three qualified
consultants. Currently NCSC only has one trainer and clients have to wait an average of three months the
trainer, Russ Brown, come to their facility. Using this knowledge, we may have an opportunity in
partnering with NCSC and getting those much needed first clients. TD Consulting has a strategy built
into the business as the services available tend to lead into each other, forming a nice company
improvement package. By getting our foot in the door with general safety training which is affordable
and local, we will find ourselves in a perfect position to use personal selling to target management as we
get to know our clients. From here we can push our other services such as Management and
Communication Training as well as Process Development and Innovation Training.



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                      Training and Development Consulting Group


Market Share Distribution Diagrams

         Safety Training

                            In-house (25%)
                            NCSC (45%)
                            Outsourced Trainers (25%)
                            eLearning (10%)




   Organizational Development
                           No Training (25%)


                           In-house (45%)


                           National Training Companies
                           (10%)
                           Institutions of Higher Education
                           (10%)
                           Outsourced Consultatnts (10%)




      Process Development


                           In-house (70%)
                           e-Learning (10%)
                           Outsourced Consulting (20%)




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                                                             Training and Development Consulting Group


Safety Training competitors ranked based on their strengths:
1. NCSC is our biggest competitor because the owner, Russ Brown, has been part of the community for
many years and has a large client base. Before becoming a safety trainer, Mr. Brown was a firefighter for
the Fortuna Fire Department which boosts his positive community image. His close ties with the
community make him our toughest competitor, and also a possibility of our greatest resource.

2. Non-local outsourced trainers hold name brands and national accreditation. Often have top lawyers
and professional services backing their organizations.

3. In-house training is mostly found in larger organizations that can employ full-time safety trainers or
cross-functional human resource employees. These larger organizations include government run
organizations and often have many positions in order to maintain self sustainability.

4. E-training has become more popular but it is not a major competitor for TD Consulting Group as
safety training regulations are strict and specific which makes some safety training difficult via the
internet. It is a fast growing market but in a small place like Humboldt County only large corporations
make use of e-training, such as FedEx.


Organizational Development competitors based on their strengths:
1. Out of Area Speakers and Consultants provide one-time services that promote company unity
through workshops on communication and teamwork, as well as motivational speeches. Name brand and
company accreditation is strong here due to national standing.

2. HSU produces educated business professionals who may find jobs locally in the management of
businesses in Humboldt County.

3. CR offers organizational management classes as well as personal development courses open to the
community.

4. NCSBDC provides services driven towards small business operation including business plan
consulting, financial consulting, and market analysis.


Process Development competitors based on their strengths:
1. In-house innovators often hold middle management positions in companies and tend to be
knowledgeable in their industry. Also, college graduates are often knowledgeable in their fields and this
added youthfulness is often sought by employers who run cutting edge businesses.

2. eLearning provides online courses for professional accreditation in Six Sigma process control, LEAN
Manufacturing, and access to many other personal development programs. Business owners may provide
employees with funding in order to become accredited in any number of programs via online access.

3. Non-local outsourced consultants are able to provide comparative knowledge in process consulting
which can benchmark companies’ processes to other successful companies not in Humboldt County.
Networking connections with large suppliers may be used for materials cost reduction strategies.




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                                                             Training and Development Consulting Group


Marketing Plan

TD Consulting consists of a strategic joining of three technical specialties which can provide invaluable
services to our clients. This combination of Safety Training, Organizational Development, and Process
Innovation creates a powerful marketing tool which provides many possible tactics of marketing.
Identifying ourselves in the Humboldt County area as benefiting the community is very important in our
company message. Our marketing must be directed at company owners in order to enable quick
acceptance to the market.


Product:        Safety Training - Provide regulation compliance consulting, equipment safety training,
                occupational safety training, and Injury and Illness Prevention Plan consulting.

                Organizational Development - Provide management training, communication training,
                and human resource consulting, along with networking and partnerships in community.

                Process Innovation - Process development includes process research and innovation;
                scale-up; design; technology transfer; and optimization of manufacturing processes by
                use of Six Sigma and LEAN manufacturing quality control methods.

Place:          Humboldt County, California. Isolated area with large community support on Green
                Revolution and local enterprises. Coastal towns, winding roads, close networking
                community, tourist destination.

Promotion:      Personal selling targeted at business owners. Cold-Calling. Business Cards. Website.
                Social Mixers. Key Speaker Events. Community Volunteer Work.

Price:          Prices will be based in an hourly rate or a project rate dependent upon the services each
                company needs.

Our Prospective Markets in Humboldt County

By targeting small businesses and niche manufacturing, which are prominent and positive sights to the
community of Humboldt, we plan to display our focus on community by providing individually tailored
development services. These target companies may be in strong position in their markets, or even be
newly emerging companies. TD Consulting will have to focus on a diverse range of business types to
include enough clientele to fill our own profit margins. Being a safety training company helps enable TD
Consulting to maintain a position in this market, and grow into market saturation.




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                                                               Training and Development Consulting Group


Marketing Objectives

        Prospective Clients:      Identify and locate all targets in market          11/11/2009

        Research Survey:          Contact clients for current status and stats       11/29/2009

        Tactics 1:                Group similar clients and devise tactics           11/31/2009

        Choose Targets:           Identify first targets based on feasibility        12/10/2009

        Tactics 2:                Tailor tactics to one individual client            12/31/2009

        Promotion:                Establish Logo, Website, Shake 20 Hands            1/20/2010

        Establish Credibility:    Attain accreditation, certificates, bus.cards      5/20/2010




Marketing Strategies

        Integrated Marketing Communication (IMC) Plan


        Psychographic Customer Profile



Commitment to our Customers

We will develop efficiencies by going after the right customers with the right message at the right time.
We will strive to know why our customers buy our services and understand their needs, challenges, and
behavior. We will track relevant information with our client database and engage our customers by
developing one on one long term relationships.


Client database

We will create and maintain a database that will integrate a list of clients and prospective clients, contacts,
referral sources, and vendors. The information gathered will be a great resource to get to know our
customers better and helps us mine the information in order to identify trends, gaps, and opportunities.
The database will be maintained by each of our consultants after any meaningful interaction with clients.
We will track information such as specific e-mail communication, relevant conversations, and personal


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                                                                Training and Development Consulting Group

tidbits to easily understand what happened last with the client and stay up-to-date on what is going on in
their business. Monitoring such information allows us to gain insights into how responsive businesses are
to different communication tools and helps us measure the effectiveness of the marketing mix.

Technology

We will be active participants in professional social networking technology such as LinkedIn and other
sites as based on our customer’s preferences (Facebook, Twiter, etc.). We shall show our professional
nature with current technologies such as digital projectors and screens for on-site training, and digital
feedback surveys. Also, we must look at our customer’s current technologies in use, and determine their
equipment providers for instances involving innovation or process development.               This detailed
information will be stored in the client database for future access. The technologies employed by clients
will also facilitate the types of safety training applicable.


Establishing Credibility and Brand Development

Affiliation to Industry Associations

We will be affiliated with several industry associations such as The Society for Human Resources
Management (SHRM), The American Society for Training and Development (ASTD), The National
Association of Safety Professionals (NASP), and The American Society for Quality (ASQ). TD
Consulting will be listed in their professionals and organizations listings. Furthermore, TD Consulting
will be a member of the Chambers of Commerce of the city of Arcata, Eureka, and McKinleyville, be
listed on their member directory, and participate of their mixers. TD Consulting would display their logos
in marketing materials and website to show affiliation and reinforce the credibility of the consultancy


Brand Development

We will use our logo and name in all of our emails, web site, and printed materials such as letterhead,
brochures, business cards, trainings and initiatives to reinforce and build our brand and company image.


Web Site

We will develop a website that is functionally informational giving insight of our affiliations, experience,
and credentials. The website will serve as a marketing resource to build awareness, credibility, and
facilitate contact and sales leads.



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                                                            Training and Development Consulting Group


Networking, Building Partnerships, and Driving Sales

Participation in Chamber of Commerce activities

We will become members of the Chambers of Commerce of the cities of Eureka, Arcata, and
McKinleyville. TD Consulting will participate in their mixers and luncheons, and other activities for
marketing and promotion purposes that would help to: (1) create brand awareness, build partnerships, and
network, (2) serve as a primary way to approach customers and the search for leads, and (3) continue
market research, identifying new businesses, changes in the industry, and new competitors.

Consulting Newsletter

We will create an e-mail newsletter that hits the newest developments in the industry bringing relevant
meaning and the right message to a targeted audience that will increase our brand awareness, keeping our
clients and prospective clients informed about our services. The e-mail newsletter will be sent once a
month and will contain summaries of relevant articles, useful links, and best practices along with
information about our services. We will track when a recipient clicks on the articles or links, as their e-
mail addresses are sent back to our consultancy so we will know who is looking and reading what.
Additionally, we will send them an e-mail thanking them for taking a look at it. We may use this
opportunity to introduce ourselves as another way to develop our relationships. We would be very careful
not to send unwanted emails by asking our customers to op in the newsletter.

Mailings

Mailings will comprise of a flier or a brochure outlining various custom messages. The mailings will be
directed to our select targeted business segments and not blasted. The mailings message will be custom
created by our Consultants to fit each targeted prospect or industry segment and it will become one of the
first ways to drive traffic to our website and introduce ourselves to our target market. Within the fist
seven months of operations there will be three mailing campaigns:

    1. Company Introduction Mailing Campaign
    2. Reinforcement of Services Mailing Campaign
    3. Custom Holiday Mailing Campaign




                                                                                                Page 18
                                                              Training and Development Consulting Group


Personal Selling

Once an initial contact is made by our company a consultant will be assigned to that contact depending
upon a variety of factors such as knowledge of the industry, previous contacts, services sought, and other
meaningful factors that would make the relationships with the businesses and management more
successful for the consultancy. The consultant will then work to develop the relationship with the
customer overtime by being intimately involved with the services rendered and the marketing mix used to
create sales. We will ensure that all contacts are spoken to every sixty days or less. The consultant will
strategically approach each customer and offer our services based on the needs of each one of our
customers. We will be following the Six Steps for Successful Personal Selling when designing our
personalized tactics for targeting clients:


    1. Prospecting Techniques


             a. Observation - General/daily course of day, locate possible target clients
             b. Cold Canvassing- Door to door
             c. Endless Chain- Word of mouth


    2. Approach Techniques


             a. Customer Benefit- Needs of customers
             b. Question- Approach client with a question of their knowledge to set stage
             c. Shock- Large cost, out of the ordinary, threats (spin for our benefit)


    3. Problem Identification

    4. Solution

    5. Close

    6. Handling Objection

    7. Feedback




                                                                                               Page 19
                           Training and Development Consulting Group




Sale of Services Process

                                                 SALE

                                                 Then
                                                 repe
                                                 at




                                                     Page 20
                                                             Training and Development Consulting Group


Business Structure and Operations

General Operation

During general operation, TD Consulting may be performing several of any of the phases included in our
service product. Phases include the Contact Phase, Need Identification Phase, Proposal Phase, Closure
Phase, and Delivery Phase. To produce final deliverables consultants will use personal computers and
personal office supplies. Before each deliverable or proposal is submitted to the client, a group meeting
will be held to confirm the content and validity of the deliverable. Work by group members will be
conducted at a location of choice; barring exposure client information or TD Consulting Group’s trade
secrets. The chart below represents the job descriptions and structural methodology of each member:




                                          Javier Martinez
                                           TD Consulting Group
                                  Organiztional Development Consultant

             Marketing and                                                     Finance and
             Communications                                                  Human Resources




            Margie Saavedra                                              William Benedict
            TD Consulting Group                                             TD Consulting Group
      Safety Management Consultant                                      Industrial Process Consultant




                                         Operations Management




                                                                                                  Page 21
                                                              Training and Development Consulting Group


Task Outline for Operation

    1. Contact Phase
           a. Client Identification
                    i. Networking Events in Community or by Word of Mouth
                   ii. Advertisement in Newspapers and Phone Book
           b. Formal Meeting with CEO, President, or Company Owner
    2. Need Identification Phase
           a. Consult with Client During Formal Meeting
           b. Needs Presented by Consultation
           c. Business Walkthrough and Analysis
           d. Look for Building Service Bundles
    3. Proposal Phase
           a. Research Needs if Needed
           b. Formulate Service Proposal Based on Needs
           c. Confirm Proposal with Group Members
                    i. Identify Possible Negotiation Terms
           d. Printing of Final Proposal
    4. Closure Phase
           a. Present Proposal Formal Meeting with Client
           b. Negotiations in Proposal
                    i. Consult with Group Members if Needed
           c. Negotiations on Fiscal Terms
           d. Sale of Service Proposal
           e. Solidify Scheduling
    5. Delivery Phase
           a. Formulation of Deliverable Service Products
           b. Confirmation of Deliverables with Group Members
           c. Delivery of Service
           d. Feedback

Capacity

Operating capacities shall be benchmarked to current small member consulting groups. Due to TD
Consulting Group’s diverse service lines, capacity levels may vary accordingly. We anticipate
approximately 40 hours of work per week per each consultant. Assigning a conservative 10 to 20 hours
per project/client a month would result in a capacity range of 24 to 48 projects/clients per month.

Early stages of start-up will result in more time spent creating and developing the service products. For
this reason capacity levels will be lower during start-up, and continue to be less than optimal until a
service product base is generated.




                                                                                                   Page 22
                                                              Training and Development Consulting Group


Pricing Structure and Strategy
TD Consulting will use a project proposal pricing strategy. Consultants will assign the amount of hours
needed to conduct the research, creation, development, or customization of training programs and courses.
An initial proposal will be drafted and submitted to the client based on the best consultants estimates and
further negotiated until agreed by both parties: a TD Consulting representative and the client. Proposals
agreements will include a contingency clause for how additions or deletions of services will be handled.

Hourly rates will not be used unless strictly required by the customer or if project proposals need to be
amended because of a change on requirements or scope creep. Any consultants’ time spent advising a
client or attending meetings over two initial consultations that will be included on the project proposal, if
unable to include additional tasks in the proposals hours will be billed at an hourly rate.

Meticulous notes will be taken in order to accurately account for the time spent, and be able to create
invoices that substantiate charges. In order to save our clients money, TD Consulting will make every
attempt to use the client’s organizational support resources for clerical time (time spent copying, collating
and binding work products or training materials, and training room preparation time). Otherwise, any
clerical time incurred by our consultants will be billed at a 10% discounted regular hourly rate.
Accreditation and certificates obtained by group members may justify increases in hourly wages or
general service costs. The cost of gaining certificates and personal development of group members will
also increase the services available to our clients.


Discounts

TD Consulting will discount services based on volume, work for non-profit organizations, and other
marketing promotion.


Insurance

As TD Consulting Group is a service oriented business, we have the benefit having reduced insurance
rates when looking into property, plant, and equipment. Primary insurance needed include Errors and
Omissions Insurance in case businesses claim we lacked in our service information. Also, group
members must have Liability Insurance in order to perform walkthroughs and on-site services.




                                                                                                    Page 23
                                                                Training and Development Consulting Group


Economies of Scale

Upon creating each training module, training will become a part of our gallery and collection of each
topic’s resource allowing for easy access and further customization for other clients. Each type of general
training will allow TD Consulting reuse and faster customization as well as increase the profitability ratio
as original prices for services will set a base line price, and reused service products will include the costs
incurred in developing the service product.


Social Responsibility

TD Consulting is committed to help the community in a variety of ways. We feel that giving back to the
community is very important. We will be keeping electronic copies of our training materials in order to
eliminate the use of too much paper, as well as using recycled paper and promoting the use of sanitary
drinking fountains rather than bottled water in our clients’ business locations. We will also send out e-
bills to cut down on the use of paper. Our company vehicles will be small environmentally friendly
vehicles.

A substantial part of our community support will derive from sponsoring and helping fund Young
Professionals for Economic Development (YPED). As a public nonprofit organization, YPED’s Training
Initiatives for 2010 are consistent with TD Consulting goal of providing training and leadership
opportunities to its members and the community in general.

The YPED Training Initiatives project is composed of a series of six training seminars that start on the
second week of January of 2010 focusing on training and development of soft skills and technical
competencies. The seminars are titled in order of delivery: (1) Leadership Seminar, (2) The Power of
Networking, (3) Market Yourself Seminar, (4) Entrepreneurs and Economic Fuel, (5) Six-Sigma
Applications, and (6) Human Resources Seminar.

The seminars are a response to the needs of young professionals of Humboldt County who are at a
disadvantage because of the lack of community network connections and the early stage of development
of their soft and technical skills. These skills are crucial for success and often are not a part of a
traditional formal education but learned as a result of job experiences.

YPED Training Initiatives program has the financial support of sponsors, grants, and the active
involvement of several local successful businesses. The effects of the program are expected to benefit
many individuals and businesses in the community as wells as promote economic development for
Humboldt County.



                                                                                                         Page 24
                                                Training and Development Consulting Group


Financials

Startup Expenses
The Training and Development Consulting Group

Sources of
Capital
Owners' Investment
(name & %
ownership)                   Amount            Notes
Javier Martinez       33%    $        10,333   Economic Fuel prize + $2,000 personal savings
Margie Saavedra       33%             10,333   Economic Fuel prize + $2,000 personal savings
William Benedict      33%             10,333   Economic Fuel prize + $2,000 personal savings
Other Investor                             -
Total Investment      100%   $        31,000

Bank Loans
Bank 1                                    $0   N/A
Bank 2                                     -   N/A
Bank 3                                     -   N/A
Bank 4                                     -   N/A
Total Bank Loans             $             -

Other Loans
Source 1                     $            -    N/A
Source 2                                  -    N/A
Total Other Loans            $            -

Startup
Expenses
Buildings / Real
Estate
Purchase                     $            -    N/A
Construction                              -    N/A
Remodeling                                     N/A
                                               TD Consulting will offer onsite services with no
                                               physical address but a P.O. Box, and operate from
Other                                          home offices
Total Buildings and
R/E                          $            -

Leasehold
Improvements
Item 1                       $            -    N/A
Item 2                                    -    N/A
Item 3                                    -    N/A
Item 4                                    -    N/A
Total L / H
Improvements                 $            -



                                                                                  Page 25
                                       Training and Development Consulting Group




Capital Equipment
List
Furniture            $       -   N/A
Equipment                2,590   laptop, projector, screen, and miscellaneous equipment
Fixtures                     -   N/A
Machinery                    -   N/A
Other                        -   N/A
Total Capital
Equipment            $   2,590
Location and
Admin Expenses
Rental               $      -    N/A
Utility Deposits            -    N/A
Legal/Accounting
Fees                        -    considered in fixed operation expenses
                                 Errors and Omissions' and General Liability Insurance
Prepaid Insurance           -    considered in fixed operation expenses
Pre-opening                      $1,600 per month for 3 months times 3 (as owner
Salaries                         withdrawal)
Other                       -
Total Location
and Admin
Expenses             $      -
Opening Inventory
Category 1
Category 2
Category 3                  -
Category 4                  -
Total Inventory      $      -
Advertising and
Promotional
Expenses
Advertising                      Advertising expenses considered in fixed operations
Signage                   225    Portable banner and hard table sign
Printing                  250    Business cards and letterhead
Travel &
Entertainment               -
Other / Additional               Door cost to community networking events and
categories                       luncheons considered in fixed operations
Total Adv and
Promo expenses       $    475
Other Expenses
LLC Filing Fees      $     15
Business License     $     60    $40 (base rate + 1 employee) + $10 per employee
                                 SHRM, ASTD, ASQ, ATMEA considered in fixed
Memberships                      operations
NASP Certification       4,795   Certification and Membership for 3 years
Total Other
Expenses             $   4,855




                                                                         Page 26
                                   Training and Development Consulting Group




Summary
Statement
Sources of Capital
Owners' and Other
Investments           $   31,000
Bank Loans                     -
Other Loans                    -
Total Source of
Funds                 $   31,000

Startup Expenses
Bldgs / Real Estate   $       -
Leasehold
Improvements                   -
Capital Equipment          2,590
Location / Admin
Expenses
Opening Inventory             -
Advertising / Promo
Expenses                    475
Other Expenses             4,855
Contingency Fund               -
Working Capital                -
Total Startup
Expenses              $    7,920




                                                             Page 27
                                                       Training and Development Consulting Group


The Training and Development Consulting Group
Financial Assumptions Used in Preparation of Financial Projections
  Revenues
                                     Each consultant's contribution in billable hours, starting 3rd
      Gross Revenue (Javier M)       month
      Gross Revenue (Margie S)       35 hours @ $70/hour then increase of 5 hours every 6 months
                                     or 2 projects/trainings per consultant ( aprox. $1,225 per
      Gross Revenue (William B)      project)

  Cost of Goods Sold
                                     Copies, booklets, writing utensils will be provided by clients.
       Training Materials            Otherwise, ordered through FedEx Office and billed.
                                     owner's salaries include pymt for sales, initial consultations,
                                     preparation, delivery, and other operations as required in a part
       Labor                         time basis


  Fixed Expenses
                                     $4800 total per month for the fist three months to cover for
                                     living expenses while building clientele and start collection on
        Payroll                      services rendered
        Taxes                        Taxes will be paid on an individual basis - LLC Partnership Taxation
                                     Not mandatory for business with less than 4 employee or LLCs
        Workers Compensation rate    with no employees
        Other Employee Benefits      N/A
        Rent                         N/A
        PGE                          N/A
        Water & Garbage              N/A
        Security                     N/A
        Telecommunications           Consultancy will cover cell phone service for each consultant
        Internet                     Consultancy will cover internet access for each consultant
        Property Taxes               N/A
        Insurance                    Initial quote is $595 per year
        Building Repairs & Maint     N/A
        Equipment Repairs & Maint    N/A
        Licenses & Permits           $60 business license
        Dues & Subscriptions         SHRM, ASTD, NASP, ASQ, ATMEA
        Bank Fees                    N/A
                                     Will use personal office supplies and equip, & FedEx Office
        Office Supplies              when necessary
                                     Mailings will be small (less than a few hundred). Will use Firs-
        Postage                      Class Mail through the USPS
        P.O. Box                     1 (3 IN x 5.5 IN) $22 every 6 months
        Bookkeeping/Accounting/Tax   Will do our own bookkeeping and use accounting svs for audits
      es                             and taxes ($1,200 1st year and $1,000 2nd year)
        Legal
        Misc                         $240 for Luncheons charges and events
        Loan Interest                We do not predict using loans

  Other Notes
      Owners' withdrawals            After initial 3 moths will be 70 % of billable hours




                                                                                              Page 28

				
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