1.0 Executive Summary
The purpose of this business plan is to showcase the ongoing growth and development of an international trade consultancy based in New York City. Deutsch Trade Advisory Group LLC (“the Company”) was founded with the intention of providing a wide range of advice as a relates to navigating the challenges of international transactions and trade. Revenue generating operations will commence in the second quarter of this year.
Operations
The primary income of the business will be produced from comprehensive consulting engagements that address matters related to customs handling, international freight management, tariffs, import fees, and export fees. For companies that engage in a large number of international transactions, it is incredibly difficult to navigate the challenges of addressing all of these matters. Deutsch Trade Advisory Group will able to provide comprehensive advice as it relates to reducing the costs and streamlining operations for international trade.
In addition to the Company’s per project fees, the business will have consultants available to provide per hour consulting. The scope of these services will typically focus on individual transactions that require a certain degree of attention.
The third section of this international trade consultant business plan will further document the operations of the business.
The Financing
At this time, the Company is seeking a $100,000 revolving credit facility in order to establish its consultancy and advisory operations. These funds will be complemented by a $25,000 investment that we made by the Founder. The use of these funds will be discussed in the next section of the business plan.
As a Company scales of operations, the business could easily acquire additional capital in order to support its operational costs. This document assumes that the business will use its retained earnings in order to further its growth objectives.
The Future
The business will operate on a global scale from the onset of operations. Over the next five years, Management will make significant reinvestments into the expansion of its marketing campaigns so the greater number of companies that conduct international transactions can be onboarded as clients. The business will also continue to hire operational and administrative personnel in order to facilitate ongoing growth.
Market Overview
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The revolving credit facility and equity capital injection from the Founder will be allocated as follows:
2.2 Management and Investor Equity
The Founder retains 100% ownership interest in the business.
2.3 Exit Strategies
As matters related to international trade occur regardless of the quality of the economy, there would be a significant demand for an established consultancy like Deutsch Trade Advisory Group given its highly predictable streams or revenue. In the event that the business is to be sold, the Company will coordinate with a CPA, attorney, and a business valuation specialist to determine a free market price for the Company. This is not expected to occur for a minimum of five years.
3.0 Operations
As noted in the executive summary, Deutsch Trade Advisory Group will be actively engaged with providing a wide range of comprehensive consulting services specific for the needs of companies that are engaged in international trade. The scope of these services will include advisory pertaining to customs clearance, regulatory frameworks, tariffs, export fees, import fees, as well as comprehensive logistics to ensure that shipments make it to their destination from their point of origin.
A major focus of the Company’s operations will be to provide comprehensive strategies that streamline all aspects of the international logistics process. Given the amount of technology that is now available specific for the logistics industry management, there is a significant opportunity to properly advise clients as to the integration of technologies that will ultimately result in much higher profits. For these engagements, the Company will typically produce revenue of $5,000 to $50,000 depending on the size of the project.
As noted earlier, the business will also provide per hour consulting service services when specific transactions need assistance by the client. These matters will primarily focus on customs clearing as well as dealing with freight that has not properly arrived at its destination.
4.0 Overview of the Organization
4.1 Registered Name
Deutsch Trade Advisory Group LLC. The Company is registered as a limited liability company in the State of New York.
4.2 Commencement of Operations
The business will begin providing international trade consulting in the second quarter of this year.
4.3 Mission Statement
To provide comprehensive insightful advice regarding all matters related to international trade and logistics on a cost-effective basis.
4.4 Vision Statement
To become the preeminent international trade consulting firm that is recognized for its in-depth clarity regarding all matters related to international transactions.
4.5 Organizational Objectives
• Properly established the Company’s offices in New York City once the capital has been secured.
• Use direct outreach, search engine optimization, and targeted online marketing to establish a client base.
• Leverage the Founder’s existing relationships with companies that are engaged in international trade to onboard clients.
• Become a member of numerous organizations that deal with matters related to international commerce.
• Hire highly qualified consultant and advisors that have extensive experience with international trade transactions.
• Adhere to all regulatory frameworks when renting consulting services that address the needs of enterprises that are engaged in international sales and freight distribution.
• Expand the scope for the Company’s operations on a year-on-year basis to include other types of consulting which complement the primary service architecture.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the international trade consultant business plan will focus on the current economic climate, the demographics, the industry, and competitive matters.
Inflation has become the central issue that is affecting the United States and selected global economies. Over the past three years, there has been significant volatility injected into the market as a result of evolving trade policies. For Deutsch Trade Advisory Group, this will ultimately be a net benefit given that these changes have required significant advisory services among companies that are engaged in international sales. The Company will be able to capitalize on this trend over the next five years.
Furthermore, there is a significant demand among enterprises to integrate state of the art technologies as it relates to managing international trade and freight distribution. Through the expertise of the Founder in that of staff consultants, the Company will provide insightful protocols that will ultimately streamline this process.
5.2 Industry Analysis
There are currently 10,000 consultants that provide services specific for enterprises that deal in international transactions. These businesses aggregately generate $9 billion a year revenue while providing jobs for 123,000 people.
One of the common trends within this industry is provide ongoing advice related to the integration of technologies that monitor international freight pricing, freight tracking, and related matters for these types of transactions.
5.3 Customer Profile
Any enterprise that frequently engages in international transactions a potential client to the Company. Generally, these businesses will typically have annual revenues and excessive $5 million per year and all conduct at least 50 transactions on an international basis. Domestically, there are 125,000 businesses that could o board as clients.
5.4 Competitive Analysis
Given the enormity of global trade, there are numerous Companies that operate in a similar capacity to that of Deutsch Trade Advisory Group. The business will maintain a major different treating factor by being able to provide comprehensive advice regarding transaction matters as well as integration of technologies that streamline the international trade process.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Deutsch Trade Advisory Group will have sustainable operations as a result of the following:
• The dual approach of the Company is taking to its consultancy operations will provide a major differentiating factor.
• The Founder has more than twenty years of experience managing international trade transactions.
• The Company will be able to scale operations to a global basis through the continued development of satellite locations and the hiring of additional staff.
• Strong demand in any economic climate given the complexities of international transactions.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continue expansion of the Company’s marketing operations targeting the demographics discussed earlier.
• Development of additional services that focus on technology related matters for international trade and freight.
• Develop relationships with major consulting firms that do not currently provide this type of service to their clients.
7.0 Marketing Plan
7.1 Marketing Objectives
• Establish a significant presence among enterprises that are engaged in international trade.
• Use public relations and targeted print advertising.
• Leverage multiple online channels to promote Deutsch Trade Advisory Group.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• The Company will establish its operations in New York City.
• Deutsch Trade Advisory Group will produce $628,000 of revenue.
Year 2
• Through expanded marketing and outreach, revenue will reach $880,000.
• The Company will hire additional consultants.
Years 3-5
• Year 5 revenue will reach $1.8 million.
• The business will establish international satellite offices at this time.
7.4 Marketing Strategies
The Company will use numerous forms of marketing and advertising in order to establish a globally recognized brand name among corporations that frequent engaged in international trade. As the Founder has more than two decades of experience in this field, he will be able to leverage both his expertise and established relationships within this industry in order to onboard clients once the business commence operations.
Management as well as all staff consultants will become members of national and globally based chambers of commerce as well as business organizations that focus on international trade. From time to time, the Company will take out advertisements in publications that are sponsored by these groups in order to further increase brand visibility.
For the Company’s website, this platform will undergo global search engine optimization so that when relevant searches for management of global trade and international transactions are conducted, the website can be very quickly found. Management will continue to engage in the development of articles as well as extensive video content that will be shown on the website. This will further position Deutsch Trade Advisory Group as an expert on matters related to global trade and international commerce.
For social media, a major focus of these operations will be on LinkedIn. On this platform, the Company will conduct extensive direct outreach among individuals that list their profession as a manager for a corporation that frequently is engaged in international transactions.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• Deutsch Trade Advisory Group will acquire a $100,000 working capital line of credit.
• The Founder will contribute $25,000 towards a venture.
• This international trade consulting firm will achieve a compounded annual growth rate of 31%.
9.2 Financial Highlights
• The Company will produce per engagement fees of $5,000 to $50,000 for each client engagement.
• Per hour billable fees will be $250, and this will make up approximately 20% of the Company’s revenue.
9.3 Sensitivity Analysis
The Company’s revenues will remain strong, even during challenging economic climates as the business is providing a service that assist its clients with addressing the complexities of international trade and commerce. The Company will have very controllable operating costs from its offices in New York City, which will allow the business to remain profitable at all times well also remaining pricing competitive. The ability to provide technology focused consulting services specific for international trade will further allow the business to meet demand in the coming years.
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
• Company will be able to very quickly scale operations to a global basis through online marketing.
• The dual approach that Deutsch Trade Advisory Group is taking in regards to both international trade and technology will provide a major differentiation factor.
• The Company can easily integrate new consulting services into its service architecture based on the needs of larger scale clients.
Weaknesses
• The Company will concur significant expenses related to travel as this is a globally facing enterprise.
• This business has complex marketing operations as the Company is targeting large corporations.
Opportunities
• Expansion, the Company is marketing operations on a year-on-year basis with a focus on SEO, PPC, and direct outreach.
• Higher additional consultants to render a wide suite of services related to international trade matters.
• Establishment of satellite offices in international markets.
Threats
• Continued volatility regarding matters pertaining to international trade could impact operations.
Risk Analysis
Development Risk – Low
The international trade focused consulting services that will be offered by the Company have already been developed. The primary matter that needs to be addressed to securing the working capital line of credit discussed throughout this document.
Financing Risk – Low/Moderate
Although a significant portion of the funding will be used for working capital purposes, the amount required is very small and compared to the anticipated revenues that this consulting firm will generate. The highly predictable nature of these engagements will further reduced financing risks.
Marketing Risk – Low
As noted earlier, the Company is taking a wide-ranging approach to its marketing operations, which will include the use of search engine, optimization, pay per click marketing, targeted social media, and direct sales initiatives that will be led by the Founder. These risks will be reduced through the expansive online focus nature of the Company’s marketing operations.
Management Risk – Low
The Founder is a highly qualified international trade consultant that will be able to effectively establish and expand these operations on the global basis in the coming years.
Valuation Risk – Low
The valuation risk is offset by:
• Significant demand in any economic climate for international trade consulting.
• The Company can integrate programs that will produce recurring streams of revenue, which will further contribute to economic stability.
• The Company can easily establish satellite offices on it as needed basis.
Exit Risk – Low
Although there are no plans to do so, this business could easily be sold to a third-party consulting firm that is looking to integrate international trade advisory into their operations. As noted earlier, an event of this nature would not occur for a minimum of five years.