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1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a private investigation firm while showcasing the expected financials and operations over the next three years. The Private Investigator Firm, Inc. (“the Company”) is a New York based corporation that will provide private investigation services for individuals and attorneys to customers in its targeted market. The Company was founded by John Doe.
1.1 Operations
The primary revenue source for the Company will come from the private investigation of individuals as requested by attorneys and other individuals. Primarily, Management expects that a significant portion of its revenues will come from people that are currently separated and planning to divorce due to infidelity.
Many attorneys often hire private investigation firms to gather evidence of marital infidelity to present during court hearings. The Company will also provide ancillary services such as surveillance.
At all times, the Private Investigator Firm will comply with all state and federal laws regarding private investigation. The third section of the business plan will further describe the services offered by the Private Investigation Firm.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Private Investigator Firm’s mission is to become the recognized local leader in its targeted market for private investigation and related services.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the law enforcement industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and attorneys within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Private Investigator Firm, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Private Investigator Firm requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Private Investigator Firm, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Private Investigator Firm. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
Below is a description of the services offered by the Private Investigator Firm.
3.1 Private Investigation Services
The primary source of revenue for the business will be the private investigation of individuals requested by attorneys and individuals. These services will include surveillance, back ground checks, speaking with associates, and other legally allowable private investigation services. As stated in the executive summary, at all times, the Private Investigator Firm will comply with all state, federal, and applicable local laws regarding the private investigation of local individuals.
3.2 Ancillary Services
The Company will also provide ancillary services such as expert testimony and testimony regarding findings discovered during the course of a private investigation. Management expects that these services will be primarily be used within court proceedings and depositions related to divorces and business disputes. The Company will also provide witness location and interview services which will be billed at a separate rate.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the private investigation industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Current, the economic climate is moderate. The economy is undergoing a transition period due to changes in global trade policy. At this time, interest rates have remained steady due to appropriate and measured policies by central banks. While there has been volatility, this is expected to subside as the economy adapts to these changes.
However, any changes to the economy will not impact the Private Investigator’s ability to generate revenue and profit. The demand for these services remains strong among law firms and insurance firms.
4.2 Industry Analysis
Within the United States there are 5,000 businesses that provide general private investigation services to the general public. Each year these businesses aggregate generate more than $2.7 billion of revenue while providing jobs for more than 45,000 people. Aggregate payrolls in each of the last five years have exceeded $1 billion. This industry is mature, but it has experienced robust growth as the number of marriages ending in divorce has skyrocketed. As such, divorce attorneys are now seeking the services of private investigation services more than ever in order to collect evidence regarding marital infidelity. The industry is expected to grow at a healthy rate as the trend continues.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Private Investigator Firm intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
- Establish relationships with attorneys within the targeted market.
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Private Investigator Firm to easily target individuals and attorneys within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Private Investigator Firm will also use an internet based strategy. This is very important as many people seeking local services, such as private investigators, now the Internet to conduct their preliminary searches. Mr. Doe will register the Private Investigator For, with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the services, Mr. Doe’s experience in private investigation, preliminary pricing information, and relevant contact information. Finally, the Company will aggressively seek to develop relationships with lawyers within the target market that will outsource their private investigation needs to the Company. Mr. Doe expects that at least 50% of the Company’s aggregate revenues will come directly from lawyers and law firms.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
- The Private Investigator Firm will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $100,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are modestly sensitive to changes in the general economy. However, people will continue to undergo divorce proceedings and businesses will still need corporate intelligence gathering despite deleterious changes in the economy. Additionally, the high margin revenues generated by the business will ensure that the Private Investigator Firm can remain profitable despite any moderate drawbacks in top line income.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
