Executive Summary Artemide Auditing & Consulting AG (Artemide AC) is in the process of being formed as an ongoing sole proprietorship owned and
operated by Sandor Artemide AC. The company is a spinoff of Daten Riffwald-Ennetmoos AG. Between the owners of Daten Riffwald-Ennetmoos and Artemide AC there will be 25% cross-participation. This plan is written as a guide for continuing and managing the business under the new company, and will also serve as the basis for marketing proposals. The two objectives of Artemide AC are to generate a profit and to grow at a challenging and manageable rate. The mission of Artemide AC is to provide fast and reliable services in auditing and consulting to small and medium businesses (SMB), individuals, and other organizations. The keys to success for Artemide AC are: visibility to generate new business leads, networking with other professionals, responsiveness, and quality. The initial primary service offered will be auditing, although specialized fields will be considered in future growth. The overall objective is to focus the activities towards the specialized services (analyses, investigations, startups, etc.) and to become a leader in this niche in the Luzern area. The company projects growth to be ~10% of sales in the next three years. The most important keys to success for Artemide AC are developing visibility to generate new business leads, strong concentration on relationships with clients, and a high level of quality in our services. The cooperation between Daten Riffwald-Ennetmoos and Artemide AC is flexible--with the objective to change rapidly if the market demands. The sole proprietorship company "Sandor Artemide dipl. Wirtschaftsprüfer" was founded on 8 March 1996. In the first 10-month period, the company generated sales of $50,000. Artemide AC is established in a separate office from Daten Riffwald-Ennetmoos AG, in Luzern. Secretary and telephone response is assumed by Daten Riffwald-Ennetmoos. There are four major classes of competition in the actual fiduciary business in Switzerland. These include individual proprietors and small fiduciary and accounting offices and medium fiduciary offices with between 6 and 25 employees, these offices are available for general financial and tax consulting. There are also large auditing and consulting companies. These companies have several hundred employees. They tend to operate more in the lucrative consulting business. Banks, Assurances and other financial consultants are also new competitors in this field. Banks are now active in start-up consulting, corporate finance, mergers and acquisitions, and others. Technology is, of course, very important to the success of Artemide AC. It is imperative that the company stay up-to-date on technological developments and it will be important to devote a reasonable portion of each year's revenues toward upgrading the equipment and software used in normal operations. Artemide AC will adopt a focused market strategy. Logical segmentation breaks the market down into the following: Individuals, Investors, Small Businesses, Medium Businesses, Large
For our business. while having the capacity to innovate (like new accounting services related to the Internet).
Consulting and special mandates such as financial evaluation.
Legal Auditing (incl. the company sees three primary market trends which seem to be most important in our business. For example.
The growth of outsourced financial consulting. There are three different major opportunities (needs) in the fiduciary business over the next years: Bookkeeping and other services related to the operative financial management (payroll. For our further development. etc.Businesses. IAS and other standards) as an independent and responsible institution.
In addition. special audits.
More litigation due to higher percentages of unsuccessful ventures. worth noting is the growth trend for the general market. We have a lot of widely-sized competitors in a vast market of services. cost-accounting. we do not have main competitors. and Authorities and Public Organizations. merger and acquisition valuation.
planning. The competitors must be generalists and specialists at the same time. We believe our business is in a grand change. Rapid growth in the complexity of business that requires rapid adaptation in the strategy and structures of companies. estimated between 5% and 10%. annually.). consulting must be reduced to a general level. accounting for pension funds. etc. For small and medium fiduciary businesses. In the core business. the company must be current with the services.
All of this provides continuing opportunities for a dynamic company such as Artemide AC.This market environment gives ample opportunity for Artemide AC to create and expand a niche in the chosen market fields. if the "core" business is accounting. the other fiduciary businesses like tax. we consider Individual persons and Investors plus Small and Medium Businesses to be crucial. a focus of one primary segment of business is necessary. auditing. Finally.
1. 2. respectful.By providing innovative services. To provide a written guide for managing this business. Sandor Artemide. Brigitte Artemide will be in charge of market research and customer support. a strategic framework for developing a comprehensive tactical marketing philosophy. it is purely for internal improvements. and authorities. The scope of this plan is to provide detailed monthly projections for the current plan year. • Openness: languages and willpower for creating interregional and international contacts. Artemide will retain his managerial functions throughout these years.
1. and intensive contact with both clients and potential clients).3 Objectives The objectives of this business plan are: 1. reliable and high quality services to SMBs.
. Since no major increases in personnel are expected in the next three years. The company estimates that revenues will be approximately $232. the majority owner of Artemide AC. • Excellence in fulfilling the promise.
1. The company will manage its assets and create profits with no debt financing. lawyers. 3.000 by Year 3. The company's sales strategy will be based on building long-term customer relationships.1 Mission Artemide AC's mission is simple and straightforward: Purpose . Artemide AC generates a name in Luzern and the surrounding area.Artemide AC exists to provide complete. will assume strategic management functions. • Collaboration with Daten Riffwald-Ennetmoos AG for generally fiduciary services and IT services. • Quality (especially in reporting information). Relationships with clients (developing loyal.Artemide AC's competitive edge is in the well-established reputation of Sandor Artemide who has been in the consulting business for over a decade. and the company's ability to focus in this niche market. individuals. Mr. • Marketing/strategy and networking with other professionals. which will result in repeat sales. It does not anticipate any cash flow problems. Services must give solutions and results! • Vision . yielding profits.2 Keys to Success The keys to success for Artemide AC are: Developing visibility to generate new business leads. as well as yearly summaries for the following two years. • Responsiveness to clients (fast response time for special problems). This plan is not intended to obtain financing.
000. Cash flow . the company generated sales of $50. Switzerland. 2. The overall objective is to focus the activities towards the specialized services (analyses. In the first 10-month period. Switzerland.) and to become a leader in this niche in the Luzern area. • The cooperation between Daten Riffwald-Ennetmoos and Artemide AC is flexible--with the objective to change rapidly if the market demands.To generate sufficient cash flow to finance future growth and development. Switzerland. investigations. Wirtschaftsprüfer with the following characteristics: The goal will be to continue the activities on a larger personal and organizational basis. and to provide the resources needed to achieve the other objectives of the company and its owners.2 Company Ownership Artemide Auditing & Consulting AG will be incorporated in the city of Luzern by Sandor Artemide. 4 years KUGN in Bienne. • Between the owners of Daten Riffwald-Ennetmoos and Artemide AC there will be a 25% cross-participation. and he has established a good professional reputation in Luzern.
.1 Company History The sole proprietorship company "Sandor Artemide dipl. The name Artemide was made known. the owner created and assured his independent existence.)
Company Summary Artemide AC will be an ongoing company from the sole proprietorship company Sandor Artemide dipl. Growth . • Artemide AC will assume operations of one of the Daten Riffwald-Ennetmoos AG's divisions. between 1996 and 2000. 3 years Ziegfeld in Bern. etc. Twenty-five percent of the company will be owned by Daten Riffwald-Ennetmoos AG. startups. serving the market with innovation and adaptability. with a concentrated basis work.To expand the business at a rate that is both challenging and manageable.
2. Sandor Artemide acquired extensive professional experience as listed below:
• • •
5 years ATAG Graff & Altern in Geneva. 3. In the time of general recession. Wirtschaftsprüfer" was founded 8 March 1996. Before starting his own business. the parent company. (Growth projected at 10% of sales in the next three years. still with no debt financing. who will be the majority owner.The objectives of Artemide Auditing & Consulting are: 1.
1 Service Description Artemide Auditing & Consulting AG offers three main services:
1. In the same building. Consulting.Financial data must be checked and confirmed.Includes business planning. on the first level. Fulfillment of services will be provided in the future by Sandor Artemide and other equally qualified professionals. Most of these services are legal audits in the sense of Swiss company law. Artemide AC will offer three main services . fraud. or other cases of incertitude and disputes.2. and business-succession planning. but the key for a modern audit is to have time to move from an accounting approach to a planning approach--from present to future. restructuring. Services Artemide AC will be the number one company in the Luzern area for specialized and investigative services in the modern business environment. Secretary and telephone response is assumed by Daten Riffwald-Ennetmoos. as indicated under section 3.
start-up planning. An Analysis is normally based on audited or reviewed financial statements. merger and acquisition.3 Company Locations and Facilities Artemide AC is established in a separate office from Daten Riffwald-Ennetmoos AG. and valuation of businesses in business disputes.
. Investigation . • It's important to be current with the classic and special business software.
2. 3. and general consulting services. and Investigation. Consulting . etc. By contrast. specialized audits. business evaluation. a Review is generally prepared for the assurance of the management and as a minimum requirement of financial institutions for the propose of extending credit. Both companies intend to optimize the office location in the future. Auditing . as a
service related to auditing. In fact it's necessary to check past financial statements.Auditing.Our auditing and business expertise provides us with the ability to perform analysis.
• • •
Detailed descriptions of these points are found in the sections below. in Luzern. 3. is established ATO Geistesblitz (sale and consulting of SMB software sage-KHK). There appear to be four main classes of competition. auditing.2. Finally an Analysis is limited on the plausibility and the ratios. Artemide AC also offers both classic. A Legal Audit is the most comprehensive assessment of the presentation of financial data. The structure is well established and satisfies the needs of both Daten Riffwald-Ennetmoos and Artemide AC. An essential part of all audit activities is understanding the business environment in which a company operates and to evaluate the risks of financial losses. we consider this normal.
The ultimate delivery was the owner's expertise and problem solving capability. as well as in the special software and tools for auditing. Large companies are normally not interested in dealing with small and medium business.
2. corporate finance.
3. In the future. financial planning. and others. Public companies are normally audited by these companies. Large auditing and consulting companies. very important to the success of Artemide Auditing & Cconsulting. It is imperative that the company stay up-to-date on the technological developments in the classic business software like MS-Office. the clients must also accept the work of other qualified personnel--it is necessary to transfer and expand the established personal goodwill into company goodwill. 3. The primary
business of these competitors is accounting and tax compliance (for individuals and companies).2 Competitive Comparison There seems to be four major classes of competition in the actual fiduciary business in Switzerland:
1. Assurances and other Financial Consultants are new competitors. This offices normally employ between 1 and 5 people. The end result is an established trust with complete customer confidence and satisfaction. Individual proprietors and small fiduciary and accounting offices. This offices are member of the STV or/and the TK. These offices deal in a large spectrum on a general level.
. Medium fiduciary offices with between 6 and 25 or more employees. They tend to operate more in the lucrative consulting business. Financial
services are "in.3. All large companies have an international network. etc. 3. of course. These offices are
also dealing in a large and general spectrum.4 Technology Technology is. This will only be possible with qualified and motivated employees. Banks. mergers and acquisitions. business planning. If there are several partners--with different formation and specialties--these offices are available for general financial and tax consulting.
4. These offices are often members of the STV. but without specialization." Banks are active in start-up consulting. coupled with an open mind and ease of communication. etc.3 Fulfillment The fulfillment of services was provided in the past by the owner himself. These companies have several hundred
Large Businesses. we consider the following market segments to be very important:
Individual persons and Investors. we do not have main competitors. Descriptions are provided below. Market Analysis Summary Artemide Auditing & Consulting AG will adopt a focused market strategy.1 Market Needs There are three different major opportunities (needs) in the fiduciary business over the next years:
. Medium Businesses.500 or more employees.
4. • Medium Businesses . annually.2. • The largest and most logical target markets for Artemide AC at the present are small and medium businesses. • For our business. In a new "Financial Industry" Individuals and Investors become an important market segment.1 Market Segmentation The following chart and table reflect the estimated market segmentation and growth for this business. • Finally. • Large Businesses . it will be important to devote a reasonable portion of each year's revenues toward upgrading the equipment and software used by Artemide AC in its normal operations.Defined as businesses with 1 to 24 employees. We have a lot of widely-sized competitors in a vast market of services. 4. Logical segmentation breaks the market down into the following: Individuals. Small Businesses. worth noting is the growth trend for the general market. • Authorities and Public Organizations
Artemide AC will focus its marketing strategy primarily on these market segments. estimated between 5% and 10%.2 Target Market Segment Strategy For our further development. Small and Medium Businesses. this is the second largest and fastest growing segment in our region.25 to 499 employees. and Authorities and Public Organizations. Investors. Individual persons and Investors Small Businesses . This market environment gives ample opportunity for Artemide AC to create and expand a niche in the chosen market fields.In addition.
1. cost-accounting. which.
Trend 3. IAS and other standards) as an independent and responsible institution. choosing instead to treat specialized financial knowledge and needs as variable costs from external sources. in turn.).2.2 Market Trends Three primary market trends seem to be most important in our business: Trend 1. will emphasize the need for specialized audits. restructuring. Consulting and special mandates. etc.3 Market Growth
. 4. o Financial-Planning o Business-Planning o Business-Evaluation o Merger & Acquisition o Startup-Planning o Restructuring o Business Succession-Planning o Coaching in Financial-Managing o Recovery o Special Audits. We think that the need for consulting and other specialized fields has a strong growth potential. Forensic Services o Other 3.
Economically it is more expedient to acquire specialized services from a consulting firm that has its own specialized employees. 4. 2.
Trend 2. Reviews o Analyses o Investigation.2. accounting for pension funds.(most important) Rapid growth in complexity of business in an ever-changing market and competitive environment needs continuous and rapid adaptation in both strategy and structures of companies. Legal Auditing (incl.(moderately important) In the future there will be a percentage of unsuccessful ventures resulting in more litigation.(least important) Predicted continued growth in consulting because companies will be unwilling to pay fixed costs of salaries. Bookkeeping and other services related to the operative financial management (payroll. investigation. etc.
if the "core" business is accounting. Customers in this segment strongly rely on the consultant's professional qualifications and the ability to come up with viable solutions in a timeand cost-effective manner.1 Competition and Buying Patterns Competition in the general field of business consulting in the Luzern area is quite intense.so we have new participants like banks.As noted in the previous section. yet still allows ample opportunity for us. relying on the same consultant for future needs once a relationship has been established . This.3 Service Business Analysis The fiduciary and consulting business for the local area is already well established. we do not have main competitors: We have many competitors in diversified services. assurances.
We believe our business is in a in a period of grand change. For our business. The competitors must be generalists and specialists at the same time. is often not realizable because of staff turn over and inaccessibility of personnel. 4. More important than the competitors. In the core business. not the least of which we estimate the annual market growth rate between 5% and 10%.this fact requires establishing a good and intensive personal relationship with client. For example.we think that most of the small and medium firms are operating in a limited spectrum of traditional fiduciary services (accounting and tax) and they do not have enough knowledge and/or time for entering the field of specialized services . Although numerous established companies offer a variety of services to different customer segments.3. and others entering the market. For small and medium fiduciary businesses. the company must be current with the services." firms. several factors are predicted to continue well into the next decade. in the large. lawyers. "big 6. This is supported by the following points: Already in existence are a large number of firms .
The globalization of markets will increase the demands for expansion of new services related to our business.
Customers in the fiduciary business tend to be loyal. Artemide Auditing & Consulting AG considers competition in our focus market niche of small and medium businesses to be modest. Strategy and Implementation Summary
. a focus of one primary segment of business is necessary. consulting must be reduced to a general level. the other fiduciary businesses like tax. is the need to get established in the right market and to develop this market with a strong and flexible strategy. while having the capacity to innovate (like new accounting services related to the Internet). auditing. 4.
1 Competitive Edge Artemide Auditing & Consulting's competitive edge is in the well-established reputation of Sandor Artemide who has been in the consulting business for over a decade. 6. Management Summary Sandor Artemide. 5. and that will generate favorable client referrals and increase customer retention. Combining his professional expertise with the financial. which will result in repeat sales. will assume strategic management functions. The charts and table below outline the Sales Forecast for the next three years. Financial Plan The following sections include the annual estimates for the standard set of financial tables.2 Key Financial Indicators The Benchmark chart below uses index values to compare past and future financial indicators. Detailed monthly pro-forma tables are included in the appendix. not absolute values.Artemide AC will offer auditing. No major increases in personnel are expected in the next three years. The company will focus on providing excellent customer service. Brigitte Artemide will be in charge of market research and customer support. 5.
.2 Sales Strategy The company's sales strategy will be based on building long-term customer relationships. consulting. the majority owner of Artemide AC. Artemide will surpass break even consistently throughout the next year of operations. and technical support of Daten RiffwaldEnnetmoos AG. marketing. and investigation services to small and medium businesses in the Luzern area. 7.1 Personnel Plan The following table outlines the two-person management system of Artemide AC. The bars show relative change. Customer service and 'face time' with clients will be aimed to maintain a high level of customer retention. 7. the company is positioned to further entrench itself in the growing market of small and medium business consulting in the Luzern area.
7.1 Important Assumptions This information is presented in the table below.3 Break-even Analysis With our average monthly fixed costs.
Industry profile ratios based on the Standard Industrial Classification (SIC) code 8721.01 .
.4 Projected Profit and Loss The projected profit and loss information is presented in the table and charts below.Auditing services.6 Projected Balance Sheet The projected balance sheet information is presented in the table below
7.5 Projected Cash Flow The projected cash flow and cash balance information is presented in the chart and table below. 7.7.7 Business Ratios Business ratios for the years of this plan are shown below. are shown for comparison.