1.0 Executive Summary
Deutsch Intelligence Group LLC (“the Company”) was founded with the intention of providing a wide range of business intelligence and in-depth market research to corporate clients throughout the United States. At this time, the Founder is seeking a $150,000 revolving credit facility in order to establish these operations in Chicago, Illinois. Through online channels, the Company will be able to render the services to any business within the United States.
Operations
The primary revenue center for the Company will come from providing business intelligence regarding deep analysis of competitors on behalf of the Company’s clients. Through these reports, the Company will provide in depth analysis as it relates to their revenue, differentiating factors, number of employees, as well as related market matters. The Company will also provide ongoing advice as to how to properly address competitive issues.
In addition to this primary revenue stream, the Company will also provide in-depth market research reports regarding any potential area where a client is thinking of establishing business operations. For these operations, the Company will typically generate revenues of $1,000 to $10,000 depending on the scale and scope of a report.
The third section of this business intelligence business plan will further discuss the operations of the Company.
The Financing
The $150,000 of capital required to establish the business will be principally used for the development of the Company’s offices, working capital, furniture, fixtures, equipment, as well as the onboarding of personnel to assist with intelligence engagements. The business has chosen to use a revolving credit facility rather than a business loan in order to ensure that interest rate expenses are kept under control by using capital on an as needed basis. The Founder will contribute $50,000 towards the venture.
The Future
Given the immense demand among enterprises to understand their competitors, as well as having an in-depth understanding of any potential market, the Company will be able to easily scale its operations. As the Company is not constrained by any geographic region, the business will use multiple forms of online marketing in order to establish a widely regarded brand-name within the business intelligence community.
Market Overview
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The funds discussed will be used as follows:
2.2 Management and Investor Equity
The Founder is the 100% owner of Deutsch Intelligence Group LLC.
2.3 Exit Strategies
There would be a significant degree of complexity with selling this business intelligence firm to a third-party. In all likeliness, the Company will coordinate these efforts with a business broker that will work with established entities within the consulting industry that are seeking to acquire a business intelligence and market research arm. There is also the possibility that the Company staff could ultimately become the owners of the business through a highly structured buyout program. In either a scenario, Management will have a formal valuation completed so that the free market price of this business is understood. There are no long ranging plans to sell this business to a third-party.
3.0 Operations
As noted in the executive summary, Deutsch Intelligence Group will be actively involved with providing in-depth market analysis, competitive analysis, and deep industry research on behalf of its clients.
For market research engagements, the business will typically produce revenue of $1,000 to $10,000 based on the number of markets that need to be examined. For business intelligence engagements, these fees will typically range from $50,000 to $100,000 depending on the size of the Company.
Moving forward, the Company intends to develop ongoing relationships with clients so that highly recurring streams of revenue can be produced on an ongoing basis. The Company may also develop specific types of programs that are more appropriate for smaller enterprises that are seeking comprehensive intelligence on a more local regional basis.
4.0 Overview of the Organization
4.1 Registered Name
Deutsch Intelligence Group LLC. The Company is registered as a limited liability Company in the State of Illinois.
4.2 Commencement of Operations
The Company will begin its business intelligence and market research operation starting in the fourth quarter of this year.
4.3 Mission Statement
To cost-effectively provide business intelligence and in-depth market research reports for its clients.
4.4 Vision Statement
To become a pre-business intelligence and market research firm within the United States.
4.5 Organizational Objectives
• Properly developed the offices in Chicago so the business can quickly on-board supportive personnel for rendering services.
• Use the latest in technology so that the Company can receive real time industry and market analysis reports.
• Adhere to all regulatory frameworks as it relates to rendering business intelligence and market research.
• Leverage multiple forms of online marketing, including search engine optimization in order to drive traffic to the Company’s website.
• Maintain highly secure protocols for protecting client’s confidential information.
• Frequently attend industry events specific for major industries, as well as the business intelligence community.
• Provide upwardly mobile employment opportunities for the Company’s staff, especially among those that operating and operational capacity.
• Potentially establish satellite offices in international markets if it is economically viable to do so.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the business intelligence business plan will focus on the current economic climate, the industry, the demographics of companies using the businesses services, and ongoing competitive issues.
Inflation continues to remain as the primary issue that is causing upward pricing pressure within the United States. As a result of changing trade policy, capital injections from the government, as well as related issues the price of nearly all products and services have increased significantly over the past six years.
However, the demand for comprehensive business intelligence and market research for remain substantial in the coming years. Corporations always take a risk focused approach when determining whether or not to make capital investments into new markets. Deutsch Intelligence Group will be able to provide comprehensive and in-depth report reports that will ensure that the decisions being made by clients are economically viable.
5.2 Industry Analysis
There are 23,000 firms that provide business intelligence in market research to clients. These companies aggregately produce $30 billion of revenue while providing jobs for 305,000 people.
The internet has changed the landscape in the way that these entities operate given that engagements can be provided to clients on a global basis. Deutsch Intelligence Group will leverage multiple forms of communication technologies in order to create significant market reach for the business’ operations. The business will also leverage this technology when sourcing data for client reports.
5.3 Customer Profile
Generally, the Company’s clients will have an annual revenue ranging from $2 million-$50 million. They will be specifically engaging Deutsch Intelligence Group in order to develop business intelligence reports as well as in depth market research in order to guide their business decisions. It should be noted that the Company may also develop programs that are specific for the needs of smaller scale enterprises that are seeking to understand the local in regional competitive landscape.
5.4 Competitive Analysis
Given the dual focus of providing both business intelligence as well as market research, the Company will maintain a major differentiating factor over other entities within this industry. The Company will also maintain highly controllable operating costs will ensure that superior work can be provided on a cost-effective basis.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Deutsch Intelligence Group will have sustainable operations as a result of the following:
• Limited competition among consulting firms that provide both market research as well as in depth business intelligence.
• The Company will be able to operate on a national level prior to scaling to global markets.
• The Company will generate substantial contribution margins on all business intelligence and market research engagements.
• Significant demand in any economic climate as companies are frequently seeking to have the best information possible when rendering business decisions.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued hiring of project managers and support staff in order to drive greater billable revenues.
• Integration of additional services that will drive higher billings in the coming years.
• Expansion of the Company’s marketing operations to include major global markets.
7.0 Marketing Plan
7.1 Marketing Objectives
• Conduct extensive direct outreach with the targeted demographics discussed earlier.
• Engage in regional marketing so that smaller scale enterprises within Chicago can become clients at the onset of operations.
• Leverage search engine optimization as well as extensive targeted social media marketing on LinkedIn to create a well-regarded brand name for Deutsch Intelligence Group.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• Deutsch Intelligence Group will launch its operations in Chicago.
• First year revenue will reach $949,000.
Year 2
• The Company will expand the number of engagements that it maintains with major corporations.
• Revenue will reach $1.38 million.
Years 3-5
• By Year 5, Deutsch Intelligence Group will operate on a global basis.
• Fifth year revenues will reach $2.7 million.
7.4 Marketing Strategies
The business will use multiple forms of online marketing in order to drive engagements for business intelligence as well as in depth market research. Most importantly, the Company’s website will feature the entire service architecture and how these services can drastically improve the profitability of the clients’ operations. The Company will have numerous videos that discussed its capabilities, especially as it relates to addressing market research as well as deep competitive analysis.
The Founder will also continue to attend major industry trade shows, especially as it relates to enterprises that deal in technology, finance, and healthcare. As these are large scale businesses that are less swayed for during economic recession, Management sees a significant opportunity to expand within these market segments.
LinkedIn will remain as the primary platform that is used when targeting potential clients through social media. On this platform, the Company will release numerous sample market research reports in order to familiarize potential clients with the scope of the Company’s work.
The Company will also use pay per click marketing and advertising in order to drive initial traffic to the website. As the Company, search engine optimization campaigns take hold these expenditures may be reduced in the coming years.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• Deutsch Intelligence Group will acquire a $150,000 revolving credit facility.
• The Founder will invest $50,000 for the development of this business intelligence firm.
• The Company will achieve a compounded annual growth rate of 31%.
9.2 Financial Highlights
• The average business intelligence engagement will produce $75,000 of revenue.
• The average market research report will have a price of $5,000.
9.3 Sensitivity Analysis
The demand for comprehensive business intelligence in market research remains strong in any economic climate. Once Deutsch Intelligence Group onboards large-scale enterprises, the economic risks of the business will be substantially reduced. On all engagements, the Company will generate substantial contribution margins as this is a service focused business.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
SWOT Analysis
Strengths
• The Company will be able to properly scale it operations in the coming years to operate as a global enterprise.
• The Company can easily establish programs that will produce recurring streams of revenue for the business.
• Significant and ongoing national level demand.
• Limited competition among companies that operate in both a business intelligence and market research focus capacity.
Weaknesses
• Moderately high operating cost as relates to payroll as highly skilled employees need to be retained.
• The Company needs to implement highly focused marketing campaigns in order to onboard clients.
Opportunities
• Expansion of operations to include ongoing engagements that produce recurring revenue.
• Expansion the types of business intelligence services offered.
• Developed satellite offices in major global markets (especially within the European Union or Asia)
Threats
• Inflation could cause many of the Company’s underlying operating cost to increase, especially as it relates to travel and technology costs.
Risk Analysis
Development Risk – Low/Moderate
The service architecture that will provide both business intelligence as well as in-depth market research has been developed by the Founder. The primary matter that needs to be addressed to securing the revolving credit facility in order to establish operations in Chicago.
Financing Risk – Low/Moderate
The $150,000 a capital will be primarily used for working capital purposes. Given the substantial amount of revenue produce from each engagement, the risks are substantially reduced from a financing standpoint.
Marketing Risk – Moderate
The Company will use multiple marketing strategies to ensure a nationally in globally recognized brand name for Deutsch Intelligence Group. This will be accomplished through the use of both online advertising as well as direct outreach initiatives with enterprises that are actively engaged in the field of finance, technology, technology, and healthcare.
Management Risk – Low
The Founder has more than fifteen years of experience as a business intelligence and analysis. He will be able to leverage his experience and expertise to bring this business to profitability.
Valuation Risk – Low
The valuation risk is offset by:
• The Company will generate contribution margins of 95% on most engagements.
• Programs that produce recurring income can be easily integrated into the service architecture.
• The operations of Deutsch Intelligence Group are highly scalable given global demand.
Exit Risk – Low
As noted earlier, there would be a moderate degree of complexity with selling Deutsch Intelligence Group to a third-party. This event is not expected to occur for a significant period of time as management intends to develop the business as a globally focused business intelligence enterprise.