Prelude

This is the fourth entry regarding my business plan. This is part of a series where I will be posting my business plan online. If you are curious as to why I would post my business plan online, visit my “what’s the business plan” post.

Risk Assessment

The biggest risk is not being able to attract awareness, and once people are aware of the business, converting them into customers and retaining them.

The second risk is that potential clients choose specialists over Greg Lam Consulting, which is currently more of a generalist.

The main problem of conversion and retention is positioning Greg Lam Consulting as the best solution for their small business needs. Instead of competing head-to-head with business that specialize in only one area (websites, videos, or marketing for example), Greg Lam Consulting will do the following:

  • Act as a small business organizer / advisor on the tasks that a business needs specialized help in. This means researching, hiring, and overseeing the work done by a specialist on behalf of the client.
  • Act as a doer a doer on tasks that are specialized enough to need the aid of Greg Lam Consulting but not specialized enough to hire a specialist.
  • Act as a coach / guide on the tasks that are easy and teachable and that they don’t need or want Greg Lam Consulting to perform on an ongoing basis.

Human Resource Management

The only employee of Greg Lam Consulting is Greg Lam. Other services that Greg Lam Consulting may need for itself or for its clients will be subcontracted or referred. In the future, as business grows, there may come the time where it becomes necessary to hire employees under Greg Lam Consulting. For the first year of operations, this is not anticipated to be a concern.

Contingency Plan

There are two different ways to look at the business as a failure:

  1. Failing to achieve average monthly revenue of $4,000 a month in the 2011 year.
  2. Alternatively, if business growth isn’t achieved, a failure to reduce the amount of time spent to produce the same amount of money. If average hourly rate is $50 an hour in 2009, than the average hourly rate would need to increase year-by-year if revenue isn’t increasing.

Selling the business if it is a failure would be challenging as their isn’t a large revenue base to sell and the type of client serviced is diversified. If Greg Lam Consulting was not able to be sold, than current clients would be referred to other businesses and service providers.

Goals and Objectives

The monthly revenue objectives are as follows:

  • Quarter 1: $3,750 monthly average
  • Quarter 2: $4,500 monthly average
  • Quarter 3: $4,750 monthly average
  • Quarter 4: $4,830 monthly average
  • Total revenue objective for 2010 is $53,750.
  • Total revenue objective for 2011 is $74,500.

The goal of the business is to transition from active income to passive income starting in 2011. Active income the business has to work for each time it wants it, passive income is work that the company has already done that continues to provide it money.

Go forth to the next section, the start-up and implementation.
Go back to the business plan page.