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Executive Summary Objectives Mission Statement Keys to Success
2. Company Summary 2.1. Basic Information CompanyA is being established primarily to focus on HR needs in the China market. Its founding partners all have existing business in China but are merging their companies into one new entity. The former companies will become Business Units in CompanyA. Each Business Unit will primarily act autonomously but will use some resources to help other BUs grow and develop. 2.2. Ownership Ownership of CompanyA will be held through a Hong Kong corporation. This HK Corporation will own the Brand, Website, Trademarks and Copyrights of CompanyA. Initial partners will own shares in this company. Future Partners may be given shares in this company pending approval of other partners. These issues are further addressed in the Hong Kong Company’s bylaws. 2.3. Licensing There are two corporations involved in CompanyA. First, there is the Hong Kong registered corporation, which is owned by the partners. Second, there is a China corporation licensened to provide consulting services. This corporation must be locally owned to meet PRC requirements. Local ownership broadens the scope of services offered. This would include, Event Planning, Training and Development, Recruiting, Payroll, Business Development Consulting. It may also included the delivery, development and sales of materials related to these services. 2.4. Locations CompayA’s headquarters are in Shanghai, China. Later, offices may be open in other cities in China and around the world. 3. 3.1. 3.2. 3.3. Services Intents M7 Leadership Development Asipre
4. Marketing 4.1. Marketing Strategy 4.1.1. Market Needs 4.1.2. Market Trends 4.1.3. Market Size 4.2. Industry Analysis 4.2.1. Competition 5. Strategic Summary 5.1. Strategic Position CompanyA’s basic strategy is to offer in-depth services in each of its Business Units but blend these services with the other BUs to provide solutions that are consistent across an organization, have strategic vision for the entire company, blending soft skill, technical, financial, sales, marketing and other needs. 5.2. Product Differentiation Offer western standards of quality in China. Be the experts in each field of business but offer wider scope than most consulting firms. Provide measurable ROI to clients.
5.3. Long Term Strategy Build CompanyA’s reputations into one of the best known in China. Develop each Business Unit into multi-million dollar business. Expand scope of services into related fields. 5.4. Milestones 5.4.1. Develop BP 5.4.2. Bylaws 5.4.3. CompanyA Incorporation 5.4.4. Accounting requirements complete 5.4.5. Office opens 5.4.6. Complete basic marketing (website, brochures, business cards, etc…) 6. Management Structure 6.1. Organizational Structure The basic structure of CompanyA is built on Business Units. Each acts independently within its sphere of business but supports the other BUs in: • Developing new clients • Expanding services into other BUs clients • Providing better product to market • Sharing cost and administration 6.2. Partnership Team CompanyA will initially start with 3 or 4 partners. Each has an existing business, client base and revenue from that business. Additional partners maybe brought in if they meet all the following criteria: • Simple majority of existing partners vote them in. • Do not conflict with another partner’s core business. If this conflict exists, the partner in conflict does not need a simple majority to stop the new partner from entering CompanyA. His “no” vote alone is enough to bar entry. • Has existing clients and revenue. Minimum monthly revenue of 60,000 RMB.
6.3. Management Gaps • General Manager – Initial solution is to appoint an interim GM from the partners. Later, CompanyA may hire a full-time GM or appoint a part-time manager from Board of Directors. • Marketing Manager- There is a gap in developing marketing material for CompanyA (not the BUs). These may be performed by the partners as shared cost. Compensation to be agreed to before services are performed. • Office Manager- Divide responsibilities among partners. Later hire full-time manager. • BD Manager- Each unit to manage its own development. Later hire BD Manager. 6.4. Exit Strategies CompanyA has a long term strategy of building a strong brand and reputation. When we are successful there are a few options for partners to sell their equity in CompanyA. All 3 options require a simple majority vote from existing partners. • Outside company buys CompanyA and partners share the revenue generated from the sale. • CompanyA partner or partners buy a partner’s equity. • An outside party buys a partner’s equity. 6.5. Failure to Perform Clause There is risk that a partner’s BU will not perform and generate revenue and help others build CompanyA. If a BU fails to meet monthly revenue targets and growth the BU will be put on probation. Probation is a 6 month period when the BU either
achieves or fails to reach revenue targets. If the BU fails to achieve targets the BU is closed and the partner’s shares are distributed to the other partners. BUs that fail to contribute shared operational cost for 2 months are placed on probation. If they fail to repay past payments and maintain current monthly contributions to operational cost within 2 more months the BU is closed and the BU’s partner loses their shares. Those shares are equally distributed to the other partners. 6.6. Scope Restrictions BUs are restricted in the scope of services offered. They may not offer competing services to other CompanyA BUs. Definition of what is “competing” is determined by simple majority vote of partners. If they violate this restriction they are given 30 days to drop competing services. If they fail to suspend the service the partners by simple majority may vote them out of the company. In such cases the partner’s shares in CompanyA are equally distributed to the other partners. 7. Financial Plan 7.1. Assumptions Each BU is responsible for its own P&L. Each BU must contribute an equal portion of revenue to cover shared cost. Each BU must achieve sales targets of this plan.
7.2. Financial Structure • CompanyA will hire an accountant to manage each BU’s finances. Financial results will be available for review at partner’s monthly meetings. • Each BU will maintain and control its own Bank Account. • Shared operational cost will be paid monthly by each BU. • Shared cost to include marketing tools and materials designed specifically for CompanyA, not individual BUs. 7.3. Projected Costs Office Lease 12,000 Phone 1000 Network/Website 500 Electric/Water 1000 Accounting 1500 Receptionist 3500 Total 19,500 7.4. 7.5. Projected Revenue Long Term Plan