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SAP CONSULTING BUSINESS BUSINESS PLAN

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SAP CONSULTING BUSINESS BUSINESS PLAN

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									Business Plan for Kirkco Consulting Company




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Business & Economics


                                                   Table of Contents

1.0 Executive Summary .............................................................................................. 04

         1.1 Business Identification ................................................................................. 04

         1.2 Mission, Goals and Objectives ..................................................................... 04

         1.3 Keys to Company’s Success ....................................................................... 05

2.0 Company Summary .............................................................................................. 06

         2.1 Industry History ............................................................................................ 06

         2.2 Legal Form of Ownership............................................................................. 08

         2.3 Location and Facilities.................................................................................. 09

         2.4 Management Structure ................................................................................ 10

         2.5 Products and Services ................................................................................. 13

3.0 Market Analysis ..................................................................................................... 15

         3.1 Target Market ............................................................................................... 15

         3.2 Industry Analysis .......................................................................................... 16

         3.3 Competitive Analysis .................................................................................... 18

4.0 Market Strategy ..................................................................................................... 19

         4.1a) Product..................................................................................................... 19

               b) Pricing ..................................................................................................... 20

               c) Promotion ................................................................................................ 21

               d) Distribution .............................................................................................. 22

         4.2 Price List ...................................................................................................... 23

         4.3 Selling Strategy ............................................................................................ 24

         4.4 Sales Forecast ............................................................................................. 25


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5.0 Implementation Strategy ...................................................................................... 26

          5.1 Overall Strategy ........................................................................................... 26

          5.2 Implementation Schedule ............................................................................ 27

          5.3 Control Plan ................................................................................................. 28

6.0 Financial Statements and Projections ................................................................ 30

          6.1 Revenue and Cost Estimate ........................................................................ 31

          6.2 Forecasted Profit and Loss Statement (1st 12 Months)................................ 32

          6.3 Forecasted Balance Sheet........................................................................... 33

7.0 Financial Projections ............................................................................................ 34

          7.1 Breakeven Point ........................................................................................... 34

          7.2 Financial Position ........................................................................................ 35

          7.3 Capital/Investment Needs ........................................................................... 36

8.0 References ............................................................................................................. 38




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Business & Economics


                   Business Plan for Kirkco Consulting Company

1.0 Executive Summary



1.1 Business Identification

       The business will be established under the name Kirco Consulting Company

(KCC). The company will be located at 4452 Copper Creek Dr, Oro Valley AZ 85737

(Arizona). The establishment is intended to provide computer (SAP) services to small

and medium size manufacturing companies. In the initial stages of business set up, the

company will operate from a small office that has been identified. Company employees

(Consultants) will work from home and travel 80% of their time to client locations. As a

SAP Technical Consulting Company, the main focus shall be put on identifying the key

areas that need improved services for target manufacturing companies. This shall give

a clear direction to shape the business and fully provide solutions to meet the needs.

With specialization in the company’s key areas of operation, the company shall be in the

best position to provide excellent services and move to the next level (Bplans, 2011).



1.2 Mission, Goals and Objectives

       The primary mission of Kirco Consulting Company is to create an all round, cost

effective and efficient environment for providing the best SAP consulting services to

target customers. The aim is to identify the most basic, but critical need of customers,

and devise a solution to increase their profitability, while the company establishes its

roots in the highly competitive environment (Bplans, 2011).




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Business & Economics


       KCC’s goal is to promote quality, sustainability, results and satisfaction in all SAP

services offered to customers; at the same time, improve business’ reputation, increase

growth, and ensure employees’ satisfaction (Bplans, 2011). In order for these goals to

be attained, the following steps shall be undertaken by the company’s management

(McKeever, 2007).

       Create and market internet-based reporting systems that will enable data

       collection, analysis and developing of valid solutions to meet customer needs.

       Create and market membership database tracking systems so that loyal

       customers are kept informed of company’s service updates and offers on a

       frequent basis.

       Create and market a system to monitor progress of client companies to ensure

       offered services are maintained and corrected at zero cost in cases where

       premature system malfunction occurs.

       Prepare and market an effective quotation system to advice customers.

       Although most of these services are already being offered at various companies,

Kirkco will take advantage of the services to improve its market penetration ability.

Through implementation of effective technologies, adherence to quality, and creative

solutions, Kirkco Consulting Company is expected to attain more than 10% of the

market share within the first two years of operation.



1.3 Keys to Company’s Success

       The following are the company’s keys to success in the new market to be

exploited to capacity:


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      Key Personnel and Expert Employees: The Company boasts of expert

      employees who have high qualifications and experience in the SAP industry to

      effectively provide the best services to customers and ensure good customer

      relation. Also, the management has experienced personnel that will help shape

      the company’s direction towards efficiency.

      Start-up and Initial Costs of Operation: In order to take off, the company will

      require minimal financial boost since all the company employees will operate

      from home and move to client locations to provide services. This will also cut off

      the overheads that would be incurred as a result of hiring a larger premise to

      accommodate the employees and normal day to day expenses on upkeep.

      Predetermined Targets Identified: Through the company’s Chief Information

      Officer (Maria Sandler), the company has already established a few companies

      that have shown interest in the company’s services. This will put the company in

      a solid customer environment, especially if the services that will be offered first

      are appreciated.



2.0 Company Summary



2.1 Industry History

      The SAP industry is very large with many companies providing a wide variety of

SAP services to their customers (Delta Complete IT Solution, 2010). However big, there

are a handful of such companies that provide services to the satisfaction of their

customers. In one way or another, most of the companies are one sided; to develop


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Business & Economics


their companies and thrive well in the industry. This means that most mid-sized to large

companies that depend on SAP services for their development may not reach their full

swing due to such shortfalls. Therefore, there is need for SAP consulting companies to

change their market perception so that the situation is improved.

       Kirkco Consulting Company is expected to enter the market successfully create a

niche in the large market of SAP consulting. Despite stiff competition from other

technical consulting companies KCC will strive to provide the best services to its clients

in order to meet the company’s goals and missions (Protera Technologies, 2009).

Despite the fact that their may be great challenges in the near future, KCC staff is

determined to press on until their efforts begin to bear fruits. The company’s plan is to

ensure that all the consultation services provided by its employees are convenient; thus,

affordable, quality oriented, and results bearing (Protera Technologies, 2009).

       Also, part of the company’s short-term goals is to attain a significant percentage

of the market share within the first two years of operation. This will enable the company

to position itself well in the industry to be able to meet the demands of its clients more

effectively. However, the initial plans are to operate the business from a small office with

the consultants (employees) operating from home. Therefore, the company shall mainly

depend on the internet as its initial marketing platform. There shall be and intensive web

presence where consultant will market the company and obtain deals through various

marketing techniques such as affiliate marketing. The company has an initial target of

35 companies some of which have already shown interest in the company’s deals after

listing our intensions on various websites.




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Business & Economics


2.2 Legal Form of Ownership

       Kirkco Consulting Company was founded in May 2011 as a Limited Liability

Company (LLC), but is expected to officially start its operations on 1st of January the

following year (2012). The company’s Articles of Organization and Operating

Agreement have been filed within the state of Arizona. Kirkco herein termed as the

company, will be responsible for providing SAP Technical Consulting Services to small

and medium sized companies within the state of Arizona. The services will be made

available throughout the state through the company’s employees who will travel to

various client locations from their homes. Arizona was selected as the location of

operation since most of the company’s employees are from the region; therefore, it is

much easier to operate from the location. SAP Technical Consulting was chosen since

all company’s employees have SAP related education, experience and passion to

deliver in the industry. At the same time, the company wishes to enter the market and

provide the best services for the benefit of companies served. Company owners shall

be referred to as members in the LLC formation with no restrictions in the possible

number of members. After some years of operation, the company stock (“Membership

Interest”) shall be issued depending on various qualifications of members. In addition to

that, it is inevitable to note that in this form of company organization, personal assets of

the members are usually protected.

       In future, additional shares of membership interest will be offered to employees

as an incentive plan along with a reserved allotment for investors/members. This shall

be a way to maintain the company’s employees to help in meeting the vision, mission




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and goals of the company. The company boasts of the following members as its

founders and controlling members:

       John Sonya, Chief Executive Officer, appointed as manager to oversee day-to-

       day operations.

       Danton Bright, Chief Financial Officer to monitor the financial situation of the

       company.

       Lake Anderson, the Members Services Manager will mostly deal with issues

       relating to the company’s customers.

       Maria Sandler, Chief Information Officer to provide valuable information about the

       market in which the company operates and how best to tackle various situations.



2.3 Location and Facilities

       Kirkco Consulting Company shall have its headquarters or centre of operation in

the state of Arizona. Initially, the company will start its operation from a small office that

to be located in 4452 Copper Creek Dr, Oro Valley AZ 85737 (Arizona). The company’s

facilities; however limited for the start, shall also be located at the same office. At start-

up, the office will be established to cater for the management team and facilities alone.

All other employees will be operating from home and travel to client locations until the

business becomes much more stable to afford a larger premise that can accommodate

them all. The good part is that the company predicts that the market will enable the

achievement of financial stability within the short-term. This will allow the company to

purchase a larger premise that will also include a customer section where visiting

customers can be served from.


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      Services may also be supplied to other states other than the state of Arizona,

where the task proves to be profitable. However, more years of operation and

achievement of stability will enable the company to broaden its areas of operation and

even open other branches in different states.



2.4 Management Structure

      Kirkco Consulting Company has a management team comprising of 4 company

founders and 10 highly experienced SAP technical experts working for the company.

These are individuals with a sound backing in SAP Consulting and IT with key

understanding of business start-up operations. Considering the fact that Kirkco was

established as an LLC, the founders will assume the following functions in the company:

      John Sonya, CEO, shall be the Chief Executive Officer for the company. He has

      15 years experience as a Principal Consultant/ Project Manager in

      CanadaPharmex Company. Also, other responsibilities of John within the

      business included the management of projects that related to Information

      Systems. Therefore, he has the necessary skills to undertake the CEO position in

      Kirkco and be able to take the company to the next level.

      Danton Bright, CFO, shall assume the post of the Chief Financial Officer of

      Kirkco Company. Danton is a Certified Public Accountant who has worked in

      various companies developing models that help improve companies’ financial

      operations. He is in the best position to undertake the post and mould the

      company towards cost effective operations, while providing affordable services to

      company’s customers.


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       Lake Anderson, shall assume the post of the Members Services Manager for the

       company. Anderson has 12 years experience in the commercial industry world of

       which he has held various positions relating to customer management from

       different companies within the United States of America.

       Maria Sandler, CIO, shall assume the post of the Chief Information Officer for the

       company. Maria has a wide knowledge in various software technologies used in

       the current market and is very skilful. She shall assume all the responsibilities of

       the company’s technical related issues and endeavours. She has an 18 years

       service experience in the SAP world where she has worked for more than 23

       companies in the United States of America. She has gathered lots of information

       on the best customers and how to meet their needs in the best possible way.

       During the initial business start-up operations, the company has identified 10

highly experienced SAP technical consultants who will ensure that the mission and

goals for the company are attained. As the business thrives in the market and

establishes market operations, more employees shall be recruited in order to increase

the company’s efficiency. As a result, more funding will be required and operational

costs will rise. This will necessitate further soliciting of fund from potential financiers and

financial institutions. In the paragraphs below, are brief descriptions of the 10 SAP

experts (employees) to be hired by Kirkco consulting company.

       Owen Holms: Owen is an expert SAP consultant with 9 years experience in the

       industry. He has a Masters degree in various Computer Applications and has the

       best skills in implementation of latest technologies for businesses.




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      Andrew Knowles: This is an experienced SAP specialist with a SAP Basis

      Certification (2004). He has a Masters degree in Computer Information Systems.

      Peter Grill: Peter is a highly skilled SAP consultant with 16 years experience

      providing SAP consulting services for various companies within the United States

      of America. He has participated in the OMNI project where he served as a

      Technical Consultant.

      Andrea Mokotsov: She is an experienced SAP technical consultant with 12 years

      experience in the SAP field.

      Christine Karkatsi: She has worked as a SAP specialist for various companies

      within the United States of America. She considers herself a strong team player

      who can work tirelessly to produce the best results.

      Leah Molino: She is an experienced SAP technical consultant with 14 years

      experience in the SAP field.

      Jeremiah Makare: He has worked as a principal consultant in various countries

      around the globe. He has 24 years experience in the SAP world.

      Winnie Fry: Winnie Fry has worked in at least 7 countries around the globe and

      has 18 years experience in Information Systems (IS).

      Caroline Webber: She worked for various Technical Consulting Companies

      within the United States of America.

      Selina Escalante: Selina is a highly Experienced SAP Technical Consultant with

      specialization in Basis Administration services.




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2.5 Products and Services

       Kirkco Consulting Company has been established to provide quality SAP

Technical Consulting Services to its customers. Despite the vast SAP market and

numerous services that could be provided, Kirkco Company has identified only a few for

the start (Delta Complete IT Solution, 2010). This will enable the company to take off

smoothly and probably introduce more services as shall be determined by the market

trends. The following listed are the services that the company will offer at start-up

phase:

       SAP Integration Service.

       Basis and Net-weaver Administration.

       Solution Manager Services.

   The descriptions of the services are given in brief in the following paragraphs:



       SAP Integration Service

       “Integration Services is a platform for building high performance data integration

and workflow solutions, including extraction, transformation, and loading (ETL)

operations for data warehousing” (Msdn, 2011). “SAP Integration Service helps to

identify connection points, the data tables, and the business logic involved within a

business system” (DataXStream, 1998). “It provides hundreds of supported

connections, thousands of hidden ones, and thousands of data tables” (DataXStream,

1998). Furthermore, after system integration SAP allows for any conversion or

manipulation to be made to ens
								
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