Business Proposal Plan of Ashland Company

Question: Discuss about the Business Proposal Plan of Ashland Company. Answer: Introduction: The purpose of this business report proposal is to raise 100,000 dollars for the development of investigating department for Ashland Law firm.it will also show case the projected financials and the operations over the next 3 years. The law company is a New York that represents clients in the various cases. The essences of the department of private investigation is to provide services to both the individuals and attorneys in the targeted market (Barton, 2016). John Doe founded the law firm in the year 2009. The primary sources of the revenue of the Company will come the services offered from the private investigations of the people as requested by the attorneys and other individuals who may seek the services. Nonetheless, the management expects that a portion of the revenues will come from individuals who are separated and those who are planning to divorce due to the infidelity. (Barton, 2016) Many of the attorneys more often hires the private investigation firms to gather for them ev idence of the issues of infidelity to be able to present the findings to the court hearings. Moreover, this department would also provide the ancillary services example the surveillance. (Evans, 2015) Nonetheless, all the time the private investigation department will comply with all the state and the laws of federal regarding matters of investigations. It is also important to note this plan would look at the various aspects like the structure, the estimated costs, the timeline for the project, how am involved in this project and the benefits that is strived from this proposal. Nonetheless, it is important to look at the services that are provided by this department (Evans, 2015). Proposal development This proposal has been developed by Larry Ferguson directorate center. The project was identified at a workshop that was held to meet the growing number of the clients. (Ferraro and Brody, 2015) The number of the divorce cases were increasing in the firm and the firm needed a department to cater for investigation to be aligned as evidence in the courts. The directorate center have reported on the progress and have sought the advice from the firm on a number of occasion. The management of the company was also involved in the development of the plan in some ways. (Ferraro and Brody, 2015)The co-founder of the company John Doe has experience for more than ten years through the expertise he has he would be able to bring the operation of the business to the profitability. He has offered advice on to develop the proposal for the department of private investigation in the company. The essence of the development of the plan to make the law firm to be recognized as the local leader to their t argeted market for the services of private investigation and other related service to their clients (Sahlman, 2008). Structure In regards to the structure, the company aim in the establishment of a department of private investigation to probe the problem faced by the company in outsourcing the services from other company, which may be costly. The services that are aimed in the establishment of this department in the company are the surveillance, the background checks, and other services that are legally allowable in accordance to the private investigation federal law (Sahlman, 2008).The management of the organization will foresee the operation of this department of the organization. Nonetheless, they will hire various head to foresee the operation of the department effectively. There would be head to head the computer forensics wing, corporate investigations. Forensic accounting and the legal Surveillance Services. Besides, there are personnel who would be hired to carry the ancillary services that regards the testimonies of the experts and the testimonials in regards to findings, which were discovered in th e course of the private investigation (Simn and Revuelto, 2016). This structure of this department would be provided with all the support by the management to effectively carry their duties so that cases of the clients can be effectively be represented in the court hearing without prejudice nor favor. Estimated cost The co-founder of the company Mr. Doe is seeking to raise a bank loan of 100,000. The interest and the agreement in regards to the loan are to be discussed further through a negotiation. The business proposal plan it assumes that the business would receive a 9-year-old loan that has a fixed interest cost of 8.5% and the finances obtained would be used for the following; one of the aspect is for the development of the offices in the company for the new department. The second purpose it is for financing for the next six months of operation for the new department. Moreover, it would be used for the purchase of the equipment for the surveillance and the new company vehicles. Besides, Mr. Doe pledge he would contribute from his part 10000 dollars towards the venture. Sales forecasts (cost and benefits analysis) The firm expects a high growth rate at the start of the operation of the new department. They also expect the customer growth to increase significantly over the next six months. Below is the expected financials for the next three years. Proforma profits and loss on yearly basis Year 2009 ($) 2010 ($) 2010 ($) Sales 501,000 520,234 590,432 Operating costs 340,000 361,342 370,234 EBITDA 161000 158892 220198 Taxes, interest, and Depreciation 71,234 56,000 93,459 Net profit 89,766 102,892 126,739 Figure 1: comparison of the sales, operating costs and profits forecast. The graph above shows the sales, operating costs and the profit forecast for the next three years for the firm. The estimated funds The following tables shows the breakdown of how the funds would be used for the project of setting up the private investigation department. The projected estimate cost Project startup year 2009 $ The initial payment leases and the deposits 10,000 The working capital 34,000 The FF and E 24,000 The leasehold improvement 6,000 The security deposits 4,000 Insurance 4,500 Vehicles of company 16,000 The budget of marketing 8,500 The costs that are unforeseen 5,000 The total cost incurred 110,000 Figure 2: the costs and how the funds are used In the figure above clearly highlights on how the funds that would be used at the initial setting of the department.it shows the projected costs that are incurred for the projects and the percentages given for each. Departmental budget Personal plan yearly basis Year 2009 $ 2010 $ 2011 $ Owner 40,000 41,300 42700 The assistant of the owner 30,000 31000 33000 The staff of investigators 125,000 127,000 130,231 The book keepers 10,234 10,624 10,935 Administrative assistance 22,400 22,645 23,100 The totals 227,634 232,569 239,966 The number of personnel Year 2009 2010 2011 Owner 1 1 1 The assistant of the owner 1 1 1 The staff of investigators 5 5 5 The book keepers 1 1 1 Administrative assistance 2 2 2 Total 10 10 10 Figure 3: shows the breakdown of the personal expenses that would be incurred in the department for the next three years. Timeline The timeline for the project is the three years. The commencement of the project started 2009. The startup cost has been estimated and allocated appropriately for the project. The company has also sought a loan of 100,000 dollars at a fixed interest rate that will be paid in a period of nine years. The project will see the establishment of different components at the department of the private investigation. In the first year, the estimated costs would tool to 227,634 dollars to cater for all the expenses in the department. Nonetheless, this is projected to increase over the following two years. Involvement in the project As a financial consultant in the company, my work in the project is to review the proposed plan and advice as an internal expert to the company. (Sahlman, 2008) In addition, my role is to advise the management of the company on the best policies and implementation to adapt on the proposed project. In essence, this can be achieved through the projected through the cost benefit analysis that I will carry out to know how viable the project is, whether to adopt or not to adopt it. Nonetheless, the job description entails to help the company to make the most of the financial assets by helping them to understand on the investment and to create realistic and good strategies of financials. Benefits of the proposal On this business plan, it has helped in the identifying on the potential problems and identify opportunities of the business it may face. (Evans, 2015) In this case, the problem facing the organization was the high cost it was incurring from outsourcing the sources of private investigators for information to present in the court due to cases of divorce. The law firm was facing many costs when seeking these services. The business plan will also help to obtain the funding for the project. For example, the company sought to seek funds from the loan and a lease from the founder of the company. On this proposal, it would also give an exit strategy by providing a benchmark for the success of the company. If a business failure would occur, it would be a great loss to both the stakeholders and the business owners who in most cases are not objective on that reality. When there are solid, numbers in the business would tell if the business is untenable and helps in making on the best decisions to get rid of those components. Besides, a proposal will help the business to get advice that is objective from the business professionals based on the numbers of the investment (Thomas, Gudmundson, Turner and Suhr, 2014). Additional information to consider Project risks and mitigation There was a risk assessment of the project that was undertaken in relation to the internal procedures of the firm. (Barton, 2016) The summary of these risks is as below and how to mitigate them. On the first risk is safety when installing on the equipment of surveillance, this can be mitigated by following the required procedures in accordance to the regulation of the company. Another risk is how the department would influence of the information that is investigated by investigators, this can be handled in a manner that does not compromise the clients cases through set procedures that to be implemented (Barton, 2016). References Barton, A., 2016. The Munch: An Integrated Business Plan. Evans, V., 2015. The FT Essential Guide to Writing a Business Plan: How to win backing to start up or grow your business. Pearson Higher Ed. Ferraro, G. and Brody, E.K., 2015. Cultural Dimension of Global Business. Routledge. Sahlman, W.A., 2008. How to write a great business plan. Harvard Business Press. Simn-Moya, V. and Revuelto-Taboada, L., 2016. Revising the predictive capability of business plan quality for new firm survival using qualitative comparative analysis. Journal of Business Research, 69(4), pp.1351-1356. Thomas, D.F., Gudmundson, D., Turner, K. and Suhr, D., 2014. Business Plan Competitions and Their Impact on New Ventures' Business Models. Journal of Strategic Innovation and Sustainability, 10(1), p.34.