SIGHTHILL CONSULTANCY BUSINESS PROPOSAL

Table of contents

1.0 Introduction

1.1 Value proposition

1.1.1 Accounting solution
1.1.2 Insurance solution
1.1.3 Strategy solution
2.0 Proposed financial costs
3.0 10 years revenue forecast
4.0 Target revenue by business segment

5.0 Product component

6.0 Proposal Justification

6.1 Financial cost

6.2 Sales forecast

6.3 Product mix

6.4 Marketing strategy

7.0 Conclusion
SIGHTHILL CONSULTANCY BUSINESS PROPOSAL
1.0 Introduction

Sighthill consultancy will be a bespoke consultancy firm that offers clients one stop solution to
their financial needs. We shall offer services in accounting, insurance and strategy. Our main
strategic focus is on individual people and SME whose financial needs are not sufficiently
catered for by bigger consultancy firms, due to budget constrain.

1.1 Value proposition

1.1.1Accounting solution: we shall be offering book keeping, audit, tax return and budgeting. We shall
relieve our clients the hassle of being bogged down with documentary work, and allow them to focus on
their core mandate of their business. As result they will experience greater efficiency and higher
productivity.

1.1.2 Insurance solution: we shall be offering, motor insurance, fire & burglary, medical, investments,
Group life and WIBA. We shall connect our client with best financial institution, that can offer services
which, exceed our client’s expectation. We shall continue playing our intermediary role of ensuring that,
the finance companies, which have on boarded our clients fulfil their contractual obligation in timely
manner.

1.1.3 Strategy solution: We shall be offering strategy analysis, formulation and evaluation as part of our
solution. Our ultimate goals are to enable SMES to scales up, withstand economic shocks and compete
effectively with big established firms within their industry.
 SIGHTHILL CONSULTANCY BUSINESS PROPOSAL
2.0 PROPOSED OFFICE SET UP FINANCIAL COSTS

TOTAL
COST OF
SETTING
OFFICE

Total per
space 600sqf month PA

cost per sqf 300 180,000 2,160,000

1st

Rent 150 600SFT 90,000 1,080,000 1,080,000

chairs 7,500 4 30,000 30,000

Desk 7,000 2 14,000 14,000

Wifi 7,000 1 7,000.0 84,000.0 84,000.0

MIFI router 6,000 1 6,000.0 6,000.0

Printer 65,000 1 65,000 65,000

Printing papers 1,000 4 4,000 48,000 48,000

file cabinet 40,000 1 40,000 40,000

City councilcost 100,000 100,000 100,000 100,000

Total cost 356,000 1,467,000 1,312,000

Initial start up
cost
DEPOSIT 90,000

3MONTH RENT 270,000

FIXED COST 300,000

VARIABLE
EXP 173,250
Total cost 833,250
 SIGHTHILL CONSULTANCY BUSINESS PROPOSAL

3.0 10 YEARS REVENUE FORECAST

FORECAST
FIXED VARIABLE Payback
REVENUE COST COST TOTAL COST MARGIN period

YEAR1 - 1,467,000 693,000 2,160,000 (2,160,000) (2,160,000)

YEAR2 500,000 1,312,000 693,000 2,005,000 (1,505,000) (3,665,000)

YEAR3 1,500,000 1,312,000 693,000 2,005,000 (505,000) (4,170,000)

YEAR4 2,000,000 1,312,000 693,000 2,005,000 (5,000) (4,175,000)

YEAR5 2,500,000 1,312,000 693,000 2,005,000 495,000 (3,680,000)

YEAR6 3,000,000 1,312,000 693,000 2,005,000 995,000 (2,685,000)

YEAR7 3,500,000 1,312,000 693,000 2,005,000 1,495,000 (1,190,000) 7 YRS

YEAR8 4,000,000 1,312,000 693,000 2,005,000 1,995,000 805,000

YEAR9 4,500,000 1,312,000 693,000 2,005,000 2,495,000 3,300,000

YEAR10 5,000,000 1,312,000 693,000 2,005,000 2,995,000 6,295,000

4.0 TARGET REVENUE SEGMENT FORECAST

 SIGHTHILL CONSULTANCY BUSINESS PROPOSAL

KEY BUSINESS 1 2 3 4 5 6 7 8 9 10
SEGMENT

STRATEGY 0
10,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000

FINANCIAL 0
CONSULTANCY 50,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

LIFE 0
INSURANCE 140,000 420,000 560,000 700,000 840,000 980,000 1,120,000 1,260,000 1,400,000

GENERAL 0
INSURANCE 300,000 900,000 1,200,000 1,500,000 1,800,000 2,100,000 2,400,000 2,700,000 3,000,000

TOTAL
500,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000

5.0 COMPONENT OF
PRODUCT

STRATEGY
FORMULATION
Strategic analysis
Strategic formulation
Strategic implementation
Strategic evaluation
FINANCIAL CONSULTATION
Accounting
budgeting
planning
Regulatory compliance
LIFE INSURANCE
Deferred Pension transfer
Group pension transfer
Individual Investment allocation
SIGHTHILL CONSULTANCY BUSINESS PROPOSAL
Corporate investment allocation
Group life cover
GENERAL
INSURANCE
Motor vehicle insurance
fire&burglary
WIBA
Medical

6.0 PROPOSAL JUSTIFICATION

6.1 FINANCIALS

Sighthill consultancy services will incur total cost of ksh2,160,000 in the first year of operation.
This includes both fixed and variable cost. To start off we shall need ksh833,250, which
translates to 39% of 1st year total cost of operations. This should take care of the business
operation for 3month.This being a services industry, which is based on adequate networking, we
don’t anticipate to make any sales in year1.However we shall use this time to introduce our
products value proportion to various individuals and SMES, with the intention of them taking up
from next year. We intend to break even with 8yrs of operation.

During the first 3 years, Sighthill will require financial support from investors. Within 4th year we
anticipate Sighthill consultancy to turn into profitability, and sufficiently manage its operation
cost.

6.2 SALES REVENUE

In the first year of Sighthill performance, we don’t anticipate to make any sales. This because of
various factors, including some of our services are contractual services, with expiring period of 1
year and above. Therefore, most of our targeted customers, from our existing network will want
to see their contract run out, before entering into a new agreement. Secondly there is cost
SIGHTHILL CONSULTANCY BUSINESS PROPOSAL
element to be considered by most potential clients, who want to relook at their expenses and
budget for additional expenses.

Therefore, forecast revenue will be as follow.

KEY BUSINESS SEGMENT 1 2 3 4 5 6 7 8 9 10

STRATEGY 0 10,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
FINANCIAL CONSULTANT 0 50,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000
LIFE INSURANCE 0 140,000 420,000 560,000 700,000 840,000 980,000 1,120,000 1,260,000 1,400,000
GENERAL INSURANCE 0 300,000 900,000 1,200,000 1,500,000 1,800,000 2,100,000 2,400,000 2,700,000 3,000,000
TOTAL 500,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000

6.3 PRODUCT MIX

The anchor product for Sighthill consultancy shall be general insurance then followed by life
insurance. This because these services are backed up by law, thus becoming mandatory for every
SMES to take them on board.

Majority of SMES owners don’t have strategic experience, this inhibits the ability of the business
to scale up to greater height. At Sighthill consultancy we are going to be blending strategy with
financial consultancy for the SMES, by identifying on timely basis specific areas for their
business growth.

Financial consultancy, is an integral component of SMES business but widely ignore due to lack
of knowledge and experience of SMES owners. As result SMES have collapses due to lack of
compliance with government regulation, and poor financial management. At Sighthill
consultancy services we purposefully to be a go between government and SMES owner to ensure
relevant compliance. We shall assist SMES with ensuring that financial records are up to date.
We shall ensure that they get bank services at favorable rate.

6.3 Marketing strategy

SIGHTHILL CONSULTANCY BUSINESS PROPOSAL
We shall create awareness of Sighthill consultancy value proportion through word of mouth from
our existing network of friends. We are going to look out for strategic alliance with event
organizers of SMES trade fares. We shall be conducting weekly distribution of Sighthill
brochures within the Geographical location. We shall seek to be participating in the institution
like school’s parent’s days seminars, company’s events and church activities. The variable costs
shall cater for marketing activities.

6.4 Distribution

Every product line will have unique distribution channel, but they shall work seamless together.

We are going to partner with distributors of FMCG, whom we shall use to distribute our services.

We shall have tied agents whom we pay on commission basis with topped with facilitation fee of
ksh5,000 per month, depending on the performance. The costs have been factored into variable
cost.

We shall have indirect agents, this are employed people, who do not posse relevant qualification
but will be interested in consultancy work, as a side business.

7.0 Conclusion.

The success of Sighthill will be hinged on developing successful strategic alliance with
individual owners of SMES, in the form of revenue sharing or discounted pricing. This will give
Sighthill a competitive edge in consultancy business