Start-up Funding | |
Start-up Expenses to Fund | $1,150 |
Start-up Assets to Fund | $14,850 |
Total Funding Required | $16,000 |
Assets | |
Non-cash Assets from Start-up | $4,800 |
Cash Requirements from Start-up | $10,050 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $10,050 |
Total Assets | $14,850 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Major | $16,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $16,000 |
Loss at Start-up (Start-up Expenses) | ($1,150) |
Total Capital | $14,850 |
Total Capital and Liabilities | $14,850 |
Total Funding | $16,000 |
Human Capital Maximizers provides human resource consulting to emerging companies in the Portland/Vancouver market. Human Capital Maximizers will charge a below market rate and take stock options in the company. Human Capital Maximizers will provide consulting for the following service areas:
The pricing structure will either be an hourly rate or a per project fee. These options will be settled on in negotiation with the client. In general, Human Capital Maximizers is willing to be as flexible as possible.
Emerging companies will be the target market for several reasons:
The emerging company market can be further broken down into two categories, technology and non-technology. The significance of the breakdown is not that significant because many of the networking activities are occurring in settings that do not differentiate between technology and non-technology.
Human Capital Maximizers market can be segmented into two different groups, emerging high-tech companies and emerging non-high tech companies. The emerging high-tech companies are going to be the larger of the two segments. Even with the Internet bubble bursting within the last year, there are still many different emerging high-tech companies proliferating. This is evidenced by the Business Journal of Portland which in their annual list of fastest growing companies for this year, 18 of the top 25 were technology companies.
There are also non-technology companies that are emerging in the Portland area and Human Capital Maximizers will be able to serve them as well.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Emerging technology companies | 10% | 345 | 380 | 418 | 460 | 506 | 10.05% |
Emerging non-technology companies | 9% | 225 | 245 | 267 | 291 | 317 | 8.95% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 9.62% | 570 | 625 | 685 | 751 | 823 | 9.62% |
Human Capital Maximizers’ two markets will be primarily targeted through networking activities. Some networking will be conducted through the Oregon Entrepreneur Association, an association that supports entrepreneurial ventures in the local area. This organization has monthly meetings that are in round-table format, allowing members to socialize.
Human Capital Maximizers will also be networking from personal/professional contacts that Major has developed professionally in the last five years in the HR/start-up industry. HCM will also be relying on word of mouth to grow its customer base.
Human Capital Maximizers will use their competitive edge of compensation flexibility to attract emerging companies. This competitive advantage is especially valuable to emerging companies who are typically struggling to find enough capital to grow their business. Accepting stock options as compensation is useful because equity is one thing these companies have lots of (that is of course if they haven’t given it all away to the Venture Capitalists).
Human Capital Maximizers will have several milestones early on:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 1/1/2001 | 2/1/2001 | $0 | ABC | Marketing |
Set up office | 1/1/2001 | 2/1/2001 | $0 | ABC | Department |
HCM’s first five customers | 1/1/2001 | 3/31/2001 | $0 | ABC | Department |
Profitability | 1/1/2001 | ****** | $0 | ABC | Department |
Totals | $0 |
Major will also be able to speak about Human Capital Maximizers ability to accept options in lieu of cash. This will be appealing to companies, particularly in the current capital market which is quite scarce. Since capital is more difficult to come by now than in the last few years, emerging companies will be excited about this option.
The first month will be used to set up the office. Additionally, during the first month Major will be working hard on developing contracts. The second month will see some activity, but it will not be until month six when business will be picking up at a higher rate. Sales will continue to grow through year three.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Emerging technology companies | $41,500 | $78,455 | $92,541 |
Emerging non-technology companies | $16,600 | $31,382 | $37,016 |
Total Sales | $58,100 | $109,837 | $129,557 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Emerging technology companies | $2,075 | $3,923 | $4,627 |
Emerging non-technology companies | $830 | $1,569 | $1,851 |
Subtotal Direct Cost of Sales | $2,905 | $5,492 | $6,478 |
Human Capital Maximizers competitive edge is their flexibility for compensation. Most or all other companies require compensation to be in the form of cash, for them cash is king. Human Capital Maximizers is able to take stock options in lieu of some cash. While Human Capital Maximizers needs some cash to float the business, it can take up to 75% of its fees in equity. Human Capital Maximizers is able to do this because they have secured an office space that is low in cost, helping them reduce their overhead. In addition, Major’s wife contributes a significant portion of money to the household so Major is not in need of a lot of monthly compensation. This allows him to accept options as payment in hopes of an upside to come several years for now. (Please note the the HR industry, unlike law firms and accounting firms do not run into conflict of interests situations regarding receiving equity as compensation.)
The website will be used as a resource that prospective companies can view to gain more information about the company. In essence it is Human Capital Maximizers’ brochure. On the site there will be information about the management of the company and corresponding bios indicating all of their experience. Also on the website will be a list of present and past clients and information regarding Human Capital Maximizers’ fee structure and willingness to accept stakes of option.
The marketing of the website will consist of submitting it to the popular search engines. The website will be used more as a information tool that prospective companies can be sent to for more information about Human Capital Maximizers as opposed to marketing the website in order for the website to develop new leads.
The development requirements will entail hiring an individual (preferably a student for cost saving purposes) to develop and produce the site.
Major Adversity, the founder and owner received his undergraduate degree in marketing from Reed College. After completing college Major recognized that he would eventually need to go to graduate school but was not ready to yet.
Major worked in a large bicycle store for four years after college. Major started out as a mechanic but quickly moved up to manager where he was responsible for much of the operation. Some of the new responsibilities that Major enjoyed was the interviewing, selection & hiring, compensation, and employee relations. After fours years in the bike shop Major was looking for a new challenge so he entered the University of Portland to pursue his MBA.
Major received his MBA within two years and went to work for Nike out of school in their HR department. After a year and half Major left Nike to work for a HR consultancy boutique that worked primarily with technology companies, many of them start ups. Major enjoyed this thoroughly because of the dynamic environment that his clients worked in. Major stayed with this firm for a total of four years.
Toward the end of Major’s four years he got married and his wife, as a professional, was contributing large amounts of salary to the household. This led Major to consider opening his own HR consultancy because he would be able to undertake some risk since the household was supported to a large degree by his wife. Additionally, Major was could consider taking equity as compensation because a monthly salary was not a necessity.
Major will work full time for Human Capital Maximizers. By month six Major will have developed more work than he will be able to manage himself and he will hire an additional HR consultant to help him out. The employee will receive a straight salary and will have no future equity options in the client’s companies. This employee will be given HR projects and will do the research and sometimes present the findings to the client, other times will allow Major to present to the client.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Major | $24,000 | $24,000 | $24,000 |
Full time employee | $24,500 | $42,000 | $42,000 |
Total People | 2 | 2 | 2 |
Total Payroll | $48,500 | $66,000 | $66,000 |
The following sections will outline important financial information. Please note that the stock options granted in lieu of compensation are not entered into the financial plan as they are not yet of value. Upon exercising the options there will be tax consequences (because one of the realizing events has occurred) as well as assets to be accounted for.
The following table details important financial assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The Break-even Analysis is shown below.
Break-even Analysis | |
Monthly Revenue Break-even | $5,766 |
Assumptions: | |
Average Percent Variable Cost | 5% |
Estimated Monthly Fixed Cost | $5,478 |
The following table will indicate projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $58,100 | $109,837 | $129,557 |
Direct Cost of Sales | $2,905 | $5,492 | $6,478 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $2,905 | $5,492 | $6,478 |
Gross Margin | $55,195 | $104,345 | $123,080 |
Gross Margin % | 95.00% | 95.00% | 95.00% |
Expenses | |||
Payroll | $48,500 | $66,000 | $66,000 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $960 | $960 | $960 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $1,200 | $1,200 | $1,200 |
Insurance | $1,800 | $1,800 | $1,800 |
Rent | $6,000 | $6,000 | $6,000 |
Payroll Taxes | $7,275 | $9,900 | $9,900 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $65,735 | $85,860 | $85,860 |
Profit Before Interest and Taxes | ($10,540) | $18,485 | $37,220 |
EBITDA | ($9,580) | $19,445 | $38,180 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $5,546 | $11,166 |
Net Profit | ($10,540) | $12,940 | $26,054 |
Net Profit/Sales | -18.14% | 11.78% | 20.11% |
The following chart and table will indicate projected cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $58,100 | $109,837 | $129,557 |
Subtotal Cash from Operations | $58,100 | $109,837 | $129,557 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $58,100 | $109,837 | $129,557 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $48,500 | $66,000 | $66,000 |
Bill Payments | $17,265 | $29,392 | $36,001 |
Subtotal Spent on Operations | $65,765 | $95,392 | $102,001 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $65,765 | $95,392 | $102,001 |
Net Cash Flow | ($7,665) | $14,445 | $27,557 |
Cash Balance | $2,385 | $16,830 | $44,387 |
The following table will indicate the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $2,385 | $16,830 | $44,387 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $2,385 | $16,830 | $44,387 |
Long-term Assets | |||
Long-term Assets | $4,800 | $4,800 | $4,800 |
Accumulated Depreciation | $960 | $1,920 | $2,880 |
Total Long-term Assets | $3,840 | $2,880 | $1,920 |
Total Assets | $6,225 | $19,710 | $46,307 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $1,915 | $2,461 | $3,004 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $1,915 | $2,461 | $3,004 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $1,915 | $2,461 | $3,004 |
Paid-in Capital | $16,000 | $16,000 | $16,000 |
Retained Earnings | ($1,150) | ($11,690) | $1,250 |
Earnings | ($10,540) | $12,940 | $26,054 |
Total Capital | $4,310 | $17,250 | $43,303 |
Total Liabilities and Capital | $6,225 | $19,710 | $46,307 |
Net Worth | $4,310 | $17,250 | $43,303 |
The following table outlines some of the more important ratios from the Management Consulting Resources industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 8742.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 89.05% | 17.95% | 8.60% |
Percent of Total Assets | ||||
Other Current Assets | 0.00% | 0.00% | 0.00% | 46.70% |
Total Current Assets | 38.31% | 85.39% | 95.85% | 74.90% |
Long-term Assets | 61.69% | 14.61% | 4.15% | 25.10% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 30.76% | 12.48% | 6.49% | 42.80% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 17.20% |
Total Liabilities | 30.76% | 12.48% | 6.49% | 60.00% |
Net Worth | 69.24% | 87.52% | 93.51% | 40.00% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 95.00% | 95.00% | 95.00% | 0.00% |
Selling, General & Administrative Expenses | 113.14% | 83.22% | 74.89% | 83.50% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.20% |
Profit Before Interest and Taxes | -18.14% | 16.83% | 28.73% | 2.60% |
Main Ratios | ||||
Current | 1.25 | 6.84 | 14.78 | 1.59 |
Quick | 1.25 | 6.84 | 14.78 | 1.26 |
Total Debt to Total Assets | 30.76% | 12.48% | 6.49% | 60.00% |
Pre-tax Return on Net Worth | -244.55% | 107.16% | 85.95% | 4.40% |
Pre-tax Return on Assets | -169.32% | 93.78% | 80.38% | 10.90% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -18.14% | 11.78% | 20.11% | n.a |
Return on Equity | -244.55% | 75.01% | 60.17% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 10.02 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 27 | 27 | n.a |
Total Asset Turnover | 9.33 | 5.57 | 2.80 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.44 | 0.14 | 0.07 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $470 | $14,370 | $41,383 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.11 | 0.18 | 0.36 | n.a |
Current Debt/Total Assets | 31% | 12% | 6% | n.a |
Acid Test | 1.25 | 6.84 | 14.78 | n.a |
Sales/Net Worth | 13.48 | 6.37 | 2.99 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Emerging technology companies | 0% | $1,000 | $1,500 | $1,900 | $2,600 | $2,800 | $3,200 | $3,800 | $4,100 | $4,300 | $5,100 | $5,400 | $5,800 |
Emerging non-technology companies | 0% | $400 | $600 | $760 | $1,040 | $1,120 | $1,280 | $1,520 | $1,640 | $1,720 | $2,040 | $2,160 | $2,320 |
Total Sales | $1,400 | $2,100 | $2,660 | $3,640 | $3,920 | $4,480 | $5,320 | $5,740 | $6,020 | $7,140 | $7,560 | $8,120 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Emerging technology companies | $50 | $75 | $95 | $130 | $140 | $160 | $190 | $205 | $215 | $255 | $270 | $290 | |
Emerging non-technology companies | $20 | $30 | $38 | $52 | $56 | $64 | $76 | $82 | $86 | $102 | $108 | $116 | |
Subtotal Direct Cost of Sales | $70 | $105 | $133 | $182 | $196 | $224 | $266 | $287 | $301 | $357 | $378 | $406 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Major | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Full time employee | 0% | $0 | $0 | $0 | $0 | $0 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Total People | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
Total Payroll | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $1,400 | $2,100 | $2,660 | $3,640 | $3,920 | $4,480 | $5,320 | $5,740 | $6,020 | $7,140 | $7,560 | $8,120 | |
Direct Cost of Sales | $70 | $105 | $133 | $182 | $196 | $224 | $266 | $287 | $301 | $357 | $378 | $406 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $70 | $105 | $133 | $182 | $196 | $224 | $266 | $287 | $301 | $357 | $378 | $406 | |
Gross Margin | $1,330 | $1,995 | $2,527 | $3,458 | $3,724 | $4,256 | $5,054 | $5,453 | $5,719 | $6,783 | $7,182 | $7,714 | |
Gross Margin % | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | |
Expenses | |||||||||||||
Payroll | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Rent | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Payroll Taxes | 15% | $300 | $300 | $300 | $300 | $300 | $825 | $825 | $825 | $825 | $825 | $825 | $825 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $3,130 | $3,130 | $3,130 | $3,130 | $3,130 | $7,155 | $7,155 | $7,155 | $7,155 | $7,155 | $7,155 | $7,155 | |
Profit Before Interest and Taxes | ($1,800) | ($1,135) | ($603) | $328 | $594 | ($2,899) | ($2,101) | ($1,702) | ($1,436) | ($372) | $27 | $559 | |
EBITDA | ($1,720) | ($1,055) | ($523) | $408 | $674 | ($2,819) | ($2,021) | ($1,622) | ($1,356) | ($292) | $107 | $639 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($1,800) | ($1,135) | ($603) | $328 | $594 | ($2,899) | ($2,101) | ($1,702) | ($1,436) | ($372) | $27 | $559 | |
Net Profit/Sales | -128.57% | -54.05% | -22.67% | 9.01% | 15.15% | -64.71% | -39.49% | -29.65% | -23.85% | -5.21% | 0.36% | 6.88% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $1,400 | $2,100 | $2,660 | $3,640 | $3,920 | $4,480 | $5,320 | $5,740 | $6,020 | $7,140 | $7,560 | $8,120 | |
Subtotal Cash from Operations | $1,400 | $2,100 | $2,660 | $3,640 | $3,920 | $4,480 | $5,320 | $5,740 | $6,020 | $7,140 | $7,560 | $8,120 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $1,400 | $2,100 | $2,660 | $3,640 | $3,920 | $4,480 | $5,320 | $5,740 | $6,020 | $7,140 | $7,560 | $8,120 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | |
Bill Payments | $37 | $1,121 | $1,156 | $1,185 | $1,232 | $1,264 | $1,800 | $1,842 | $1,862 | $1,878 | $1,933 | $1,954 | |
Subtotal Spent on Operations | $2,037 | $3,121 | $3,156 | $3,185 | $3,232 | $6,764 | $7,300 | $7,342 | $7,362 | $7,378 | $7,433 | $7,454 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $2,037 | $3,121 | $3,156 | $3,185 | $3,232 | $6,764 | $7,300 | $7,342 | $7,362 | $7,378 | $7,433 | $7,454 | |
Net Cash Flow | ($637) | ($1,021) | ($496) | $455 | $688 | ($2,284) | ($1,980) | ($1,602) | ($1,342) | ($238) | $127 | $666 | |
Cash Balance | $9,413 | $8,392 | $7,896 | $8,351 | $9,038 | $6,754 | $4,774 | $3,172 | $1,829 | $1,592 | $1,719 | $2,385 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $10,050 | $9,413 | $8,392 | $7,896 | $8,351 | $9,038 | $6,754 | $4,774 | $3,172 | $1,829 | $1,592 | $1,719 | $2,385 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $10,050 | $9,413 | $8,392 | $7,896 | $8,351 | $9,038 | $6,754 | $4,774 | $3,172 | $1,829 | $1,592 | $1,719 | $2,385 |
Long-term Assets | |||||||||||||
Long-term Assets | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 |
Accumulated Depreciation | $0 | $80 | $160 | $240 | $320 | $400 | $480 | $560 | $640 | $720 | $800 | $880 | $960 |
Total Long-term Assets | $4,800 | $4,720 | $4,640 | $4,560 | $4,480 | $4,400 | $4,320 | $4,240 | $4,160 | $4,080 | $4,000 | $3,920 | $3,840 |
Total Assets | $14,850 | $14,133 | $13,032 | $12,456 | $12,831 | $13,438 | $11,074 | $9,014 | $7,332 | $5,909 | $5,592 | $5,639 | $6,225 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $1,083 | $1,117 | $1,144 | $1,191 | $1,204 | $1,739 | $1,780 | $1,800 | $1,813 | $1,868 | $1,888 | $1,915 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $1,083 | $1,117 | $1,144 | $1,191 | $1,204 | $1,739 | $1,780 | $1,800 | $1,813 | $1,868 | $1,888 | $1,915 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $1,083 | $1,117 | $1,144 | $1,191 | $1,204 | $1,739 | $1,780 | $1,800 | $1,813 | $1,868 | $1,888 | $1,915 |
Paid-in Capital | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 |
Retained Earnings | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) | ($1,150) |
Earnings | $0 | ($1,800) | ($2,935) | ($3,538) | ($3,210) | ($2,616) | ($5,515) | ($7,616) | ($9,318) | ($10,754) | ($11,126) | ($11,099) | ($10,540) |
Total Capital | $14,850 | $13,050 | $11,915 | $11,312 | $11,640 | $12,234 | $9,335 | $7,234 | $5,532 | $4,096 | $3,724 | $3,751 | $4,310 |
Total Liabilities and Capital | $14,850 | $14,133 | $13,032 | $12,456 | $12,831 | $13,438 | $11,074 | $9,014 | $7,332 | $5,909 | $5,592 | $5,639 | $6,225 |
Net Worth | $14,850 | $13,050 | $11,915 | $11,312 | $11,640 | $12,234 | $9,335 | $7,234 | $5,532 | $4,096 | $3,724 | $3,751 | $4,310 |
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You’ve come to the right place to create your Human Resources Consulting business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their HR Consulting businesses.
Below is a template to help you create each section of your Human Resource business plan.
Business overview.
HR Solutions is a startup human resources company located in Spokane, Washington. The company is founded by Tremaine Jackson, a former human resources manager in a large retail company. Tremaine led a team of twenty human resources employees in overseeing all aspects of human resources for the employer and developed a unique application that he has decided to introduce in his new company, HR Solutions.
HR Solutions will be the comprehensive leader in human resource training, management, negotiations, and solutions-finding company in the state of Washington. They will provide everything human resource personnel need to hire and effectively onboard new employees, as well as everything needed to maintain proper records, effectively cover communication and employee relations, and become proactive about potential conflicts.
The following are the services that HR Solutions will provide:
HR Solutions will target small-to-large businesses in the Spokane, Washington region. HR Solutions will also target Washington state with select online training programs and sales of the proprietary HR app. HR Solutions will target C-suite executives in Spokane.
HR Solutions will be owned and operated by Tremaine Jackson. He recruited his former administrative assistant, Sharlene Harris, to be his Administrative Manager in HR Solutions, where she will provide oversight of all personnel and HR responsibilities within the company itself. He also recruited Mason Wright, a former associate and HR manager, to be the Senior HR Advisor within the startup; he will lead the other HR managers in their roles as client-focused solution providers.
Tremaine Jackson is a graduate of the University of Washington in Seattle, where he majored in Human Resource Development. He has been a human resources manager in a large retail company, where he led a team of twenty human resources employees in overseeing all aspects of human resources for his employer and he developed a unique application that he has decided to introduce in his new company, HR Solutions. Former clients and associates have indicated they will follow him when he establishes HR Solutions.
Sharlene Harris holds a bachelor’s degree in Business Administration from Spokane College. She has been Tremaine’s administrative assistant for ten years and her new role will be the Administrative Manager in HR Solutions. She will provide oversight of all personnel and HR responsibilities within the company itself.
Mason Wright, a former associate and HR manager, developed a large following of loyal clients. He will be the Senior HR Advisor within the startup; he will lead the other HR managers in their roles as client-focused solution providers. His clients have indicated that they will follow him into the startup business.
HR Solutions will be able to achieve success by offering the following competitive advantages:
HR Solutions is seeking $200,000 in debt financing to launch HR Solutions. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
The following graph outlines the financial projections for HR Solutions.
Who is hr solutions.
HR Solutions is a newly established, full-service human resource company in Spokane, Washington. HR Solutions will be the most reliable, cost-effective, and effective choice for HR managers and leaders in Spokane. Certain online programs and the proprietary app will also be the most effective and productive options for HR personnel throughout the state of Washington. HR Solutions will provide a comprehensive menu of training, recruitment, personnel, solution-finding services for any company to utilize. Their full-service approach includes a comprehensive set of training, management, and solution options.
HR Solutions will be able to provide superior HR support and solutions to every business. The team of professionals are highly qualified and experienced in onboarding, training and creating solutions for every human resource quandary. HR Solutions removes all headaches and issues of the human resource personnel and ensures clients find the best answers to all their HR needs with the outstanding customer service found at HR Solutions.
HR Solutions is owned and operated by Tremaine Jackson. Tremaine Jackson is a graduate of the University of Washington in Seattle, where he majored in Human Resource Development. He has been a human resources manager in a large retail company, where he led a team of twenty human resources employees in overseeing all aspects of human resources for his employer and he developed a unique application that he has decided to introduce in his new company, HR Solutions. Former clients and associates have indicated they will follow him when he establishes HR Solutions.
Since incorporation, HR Solutions has achieved the following milestones:
The following will be the services HR Solutions will provide:
The human resources industry is expected to grow during the next five years to over $35 billion. The growth will be driven by an increased number of young employees who require extensive training and onboarding. The growth will be driven by an increased need for employees as the older demographic employee retires. The growth will be driven by an increase in the number of employees who are new to the U.S. and require assistance in onboarding and training. The growth will be driven by new technological advances that are not yet known. Costs will likely be reduced as new applications, such as the one created by HR Solutions, are created and introduced into the industry.
Demographic profile of target market.
Total | Percent | |
---|---|---|
Total population | 1,680,988 | 100% |
Male | 838,675 | 49.9% |
Female | 842,313 | 50.1% |
20 to 24 years | 114,872 | 6.8% |
25 to 34 years | 273,588 | 16.3% |
35 to 44 years | 235,946 | 14.0% |
45 to 54 years | 210,256 | 12.5% |
55 to 59 years | 105,057 | 6.2% |
60 to 64 years | 87,484 | 5.2% |
65 to 74 years | 116,878 | 7.0% |
75 to 84 years | 52,524 | 3.1% |
HR Solutions will primarily target the following customer profiles:
Direct and indirect competitors.
HR Solutions will face competition from other companies with similar business profiles. A description of each competitor company is below.
Human Resource RX was founded in 2005 by Reme and Janette Choux. As former human resource negotiators within a large firm, they developed distinctive programs that can help HR managers reduce conflicts in the workplace. In addition, the programs assist personnel in recuperating from workplace trauma and other difficulties or issues that arise in the office.
Human Resource RX, headquartered in Spokane, claims to be the “Best HR Prescription” for companies that require assistance in the form of management and oversight in trauma or difficulty. Human Resource RX also assists in compliance issues within the state of Washington, bringing expert advice into thorny issues that can potentially lead to litigation. The company has three offices throughout Washington, each with a staff of twelve “HR managers” who service local businesses. The company has maintained a good standing within the state of Washington, although there have been two separate issues of incorrect legal advice offered to clients. The matters were both brought by former clients to the court system and eventually resolved.
Premier Human Resource Associates is owned and operated by Tami Watson, an HR executive with over thirty years of experience. She is joined in the company by her daughter, Reyna Watson, a recent graduate of Spokane College, where she earned a bachelor’s degree in Communication. Premier Human Resource Associates is located in Spokane and offers an extensive onboarding and training program to support HR managers within local hospitals and medical clinics.
The bulk of services provided to HR managers includes various specific onboarding and training needs of nurses, LVNs, and other care providers. Attention is given in particular to the processes of sanitation and hygienic practices, along with the methods of communication used within these specific businesses. To date, the company has assisted in successfully onboarding over 5,000 nurses and other caregivers.
Transport HR Training was started in 1997 as a result of multiple difficult issues within the truck driving industry in Washington. In the decades since, Transport HR Training has established the full spectrum of services and products for HR associates in the long-haul and short-transport businesses. Specific practices and procedures relating to, in particular, medical issues of drivers, have been developed to smooth the HR process and align truck drivers with services they need. Transport HR Training offers a comprehensive package of services that includes negotiation in conflict, onboarding specifics, driver training, legal procedures and processes, and other truck driver-specific conditions.
HR Solutions will be able to offer the following advantages over their competition:
Brand & value proposition.
HR Solutions will offer the unique value proposition to its clientele:
The promotions strategy for HR Solutions is as follows:
Word of Mouth/Referrals
HR Solutions has built up an extensive list of clients and contacts over the years by providing exceptional service and expertise to their clients. Associates will follow them to their new company and help spread the word of HR Solutions.
Professional Associations and Networking
HR Solutions will extensively network throughout HR association and industry events. They will take an active role in leadership wherever invited to do so and will work to support the efforts of all associates or members.
Website/SEO Marketing
HR Solutions will fully utilize their website. The website will be well organized, informative, and list all the services that HR Solutions provides. The website will also list their contact information and list their available times to make reservations during the week. This will allow HR managers to speak with HR Solutions when most beneficial to the client. The website presence will engage SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Human Resources company” or “HR near me”, HR Solutions will be listed at the top of the search results.
The pricing of HR Solutions will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
The following will be the operations plan for HR Solutions. Operation Functions:
HR Solutions will have the following milestones completed in the next six months.
Key revenue & costs.
The revenue drivers for HR Solutions are the fees they will charge to clients for their services, online training and proprietary app.
The cost drivers will be the overhead costs required in order to staff HR Solutions. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
HR Solutions is seeking $200,000 in debt financing to launch its human resources company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
Income statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
What is a human resource business plan.
A human resource business plan is a plan to start and/or grow your human resource business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Human Resource business plan using our Human Resource Business Plan Template here .
There are a number of different kinds of human resource businesses , some examples include: Human Capital Strategy, Compensation & Benefits, Talent Management, and Professional Development.
Human Resource businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting a human resource business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Human Resource Business Plan - The first step in starting a business is to create a detailed human resource business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your human resource business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your human resource business is in compliance with local laws.
3. Register Your Human Resource Business - Once you have chosen a legal structure, the next step is to register your human resource business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your human resource business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Human Resource Equipment & Supplies - In order to start your human resource business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your human resource business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
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Ensures the organization has the right people with the right skills in the right places, helps to identify and address any potential hr challenges, aligns hr efforts with the overall business goals of the organization, helps to improve employee engagement and productivity, helps to reduce employee turnover, 1. align the hr plan with the overall business strategy, 2. assess the current state of the workforce, 3. identify the future needs of the organization, 4. conduct a gap analysis, 5. develop strategic initiatives to address the gaps, 6. set metrics and evaluation criteria, 7. start planning with a defined human resources policy, 8. communicate the hr plan to stakeholders, 9. review and update the hr plan on an annual basis, final words.
A company’s human resources (HR) department co-pilots its journey to achieving its goals. HR plays a vital role in ensuring that a good business strategy works.
As a business strategy evolves with a changing market, HR keeps pace with the changes, driving the strategy by executing all key people-related activities successfully. For that to happen, HR creates an annual plan, which we have discussed in detail in this article.
An annual human resources plan (AHRP) outlines the goals and objectives of HR for the coming year. It is a strategic tool that assists the HR department in aligning its efforts with the company’s business goals.
A well-written AHRP has the following sections:
The HR department handles several people-related activities, each of which ties into the broader company strategy. An annual HR plan guides HR staff’s actions and decisions.
It helps them think about and execute their tasks strategically. The main benefits of a human resources strategy plan are as follows:
Strategic workforce planning is a core process of human resource management. Ensuring that the company has the right people in the right place with the right skills to meet short and long-term objectives requires insight and information.
The AHRP serves as a guide for planning recruitment and hiring to meet the company’s goals. It helps HR staff plan talent acquisition by considering the following:
Data: The number of employees, demographic information, turnover rates, and other related data.
Information: The productivity levels at all levels of the organization, bench strength for talent, and a comparison of the company’s employee benefits versus the competitors.
Intelligence: HR uses the information collected to improve organizational effectiveness, shaping solutions to challenges and priorities such as new talent acquisition and global expansion.
Insight: HR utilizes its workforce knowledge to anticipate the cultural and organizational development implications of the business strategy on employee engagement and leadership.
To be a strategic partner to their business, HR must have a plan to tackle the challenges they anticipate in the forthcoming year. The AHRP contains those challenges and their solutions.
It prepares HR staff for the activities and changes that will take place shortly and how they will impact the team and enable them to overcome the challenges.
All human resources departments face some constant challenges. In 2024, HR leaders believe they will face the biggest challenges around the increasing amounts of work they will undertake, limited budgets, a scarcity of resources, and a need for more skills in the HR team.
Planning suitable actions can help the HR team better manage its priorities and stay resilient in a changing landscape.
The annual human resources strategic plan depends on the company’s objectives. It must conform to the company’s policies and procedures and the HR policy.
The practices and policies lay down the employee code of conduct, help the company create a safe working environment, and create a practical foundation for the company to lead their employees toward progress.
The HR department is the first to know about employees’ issues and is able to anticipate them in advance so that measures can be taken to avoid them. Their proactive efforts are critical to prevent potential setbacks to the company’s strategy and goals.
The HR annual plan considers policies and procedures to align HR efforts with business goals, helping protect the business strategy against events in the company’s internal environment.
HR is deeply familiar with the factors that drive employee engagement and ways to improve it.
They articulate the benefits of employee engagement in a way that leaders take notice and invest in improving employee engagement, managers understand how investing in employee engagement will enhance their own performance, and employees understand what is expected of them and what they can expect from their company.
The AHRP sets objectives around improving employee engagement and productivity. It emphasizes how important it is for HR professionals themselves to be engaged, aware of happenings in teams, and align with staff even as they support management in executing the business strategy.
Employee turnover affects productivity, morale, and costs. It is a significant challenge for the HR department and is addressable with a proper HR planning process.
The HR yearly plan proposes ways to manage employee turnover, suggesting actions and tools to help reduce turnover. Measuring turnover is the first step, followed by estimating the need for future talent and the talent supply within the company.
To stem attrition, HR focuses on improving employee engagement and prepares a succession plan to manage the exit of key personnel effectively.
If your company has witnessed a higher-than-normal turnover rate, this can receive particular focus in your annual HRP planning. If your business strategy involves an increase in AI and automation tools, then your AHRP can consider its impact on employee morale, turnover, and reskilling costs.
Next, let’s look at the process of HR planning and the steps to build your AHRP.
The AHRP is a blueprint for the human resource planning process for the coming year. These are the steps that explain the process of HR planning:
The primary purpose of an HR yearly plan is to meet the company’s critical goals. Naturally, it must consider your business objectives, which can be broadly categorized into explicit and implicit objectives.
Explicit objectives are spelled out for HR staff. They highlight the priorities for HR staff, such as talent acquisition and retention and higher employee engagement levels.
Understanding the employee experience, engagement, career paths, and other information is necessary to create explicit objectives. This is possible through employee surveys and studying turnover trends.
Employees have implicit expectations from their company. They want a safe and secure working environment, career progression, and an improved quality of life.
Employers also have implicit expectations around professionalism, productivity, and punctuality. An AHRP considers what is left unsaid but understood by all.
Before an annual human resources plan can be created, a clear picture of the current state of the workforce is necessary. Such a workforce profile shows the data on the number of employees, their demographics and skill sets, and turnover rates so far to inform how they might affect the future workforce.
You can add more factors to the profile as needed. After that, predict potential scenarios and determine how workforce issues can be planned for and managed.
The organizational structure must evolve to keep pace with technological changes, customer preferences, and the competitive landscape. A critical aspect of HR resource planning is anticipating future skill needs and developing a talent pipeline.
So, your human resource strategic plan must identify your company’s future needs with the aid of an organizational chart that groups your organization by team, tenure, skill set, performance levels, and other aspects.
You can find tools that help create a visual map of your organizational structure and enable you to uncover helpful patterns and trends in planning HR actions.
A skills gap analysis is a breakdown of your workforce and its current skills compared to the future workforce you will need to meet your business goals. The organizational chart helps identify skills or experience gaps early so that HR can reduce skill deficiencies within your company.
After taking a people inventory and performing a gap analysis, identify ways to close the skills gap. You may need to invest in an employee upskilling plan if considering in-sourcing.
If you have limited resources, you could focus on addressing, at a minimum, those skills that are needed critically in the future.
Measuring the results of your human resource planning process is important to know whether your strategy is working. Your AHRP sets out the metrics and evaluation criteria for capturing the outcomes of your strategic actions.
For example, you can use turnover and retention rates to determine the success of your employee engagement or revamped benefits package. You can establish a wide range of criteria around recruitment, training, development, remuneration, and innovation.
Your annual HR plan must set the guidelines for hiring, training, assessing, and rewarding employees. You can consider creating these guides:
The hiring guide states the roles and responsibilities of employees, employee contracts, and training plans. It also specifies whether recruitment will be managed in-house or outsourced to a staffing agency.
The hiring guide will explain the strategic onboarding process if recruitment is kept in-house.
When it comes to the pay and benefits for each employee contract, HR should be on the same page. The compensation guide states salary, bonus pay, overtime allowance, and bonuses.
For example, corporate language training for your sales team could become necessary as you gain foreign clients and enhance the perceived value of your benefits package.
Compensation planning is a strategic approach to balancing your company’s financial interests and business strategy while attracting, retaining, and rewarding employees.
Employees’ well-being predicts whether they suffer, struggle, or thrive. It includes their career, social, financial, physical, and community well-being. Supporting employees is important to keep productivity, performance, and morale high, attrition low, and maintain a positive work environment.
nvesting in employees’ skill development is integral to the HR planning process. Your AHRP should set out how you’re investing in employees’ development, its impact on their well-being, and the company’s strategic goals.
The AHRP can include a guide on the company’s code of ethics outlining the professional conduct and behavioral norms that employees must observe.
It clarifies and underscores the company’s commitment to upholding ethical standards and serves as a reference for decision-making, problem-solving, and conflict resolution.
The training and development guide covers the training methods that your company will employ, how the programs will be implemented, and how their output will be evaluated.
It also sets out the specific goals and objectives of choosing those training programs, specifically with regard to the company’s strategic vision.
Human resource planning is done with all decks on board. For a small company, this is the person who heads all employee-related tasks and those who work under the individual.
At a large company, the HR Director may lead HR resource planning, with inputs from administrative directors and managers handling compensation, employee relations, and employment services.
CEOs depend on their human resources department to drive strategy and succeed. Therefore, the human resources strategic plan should also be shared with the CEO.
Change is the only constant. The HR plan you create for 2024 may need to be revised for the following year. As circumstances change, so should your HR plan. You don’t need to reinvent the wheel – revisit the previous year’s plan and make the necessary adjustments.
A well-thought-out Human Resources annual strategic plan is a cornerstone for any organization looking to thrive in today’s fast-paced business environment. It not only provides a clear direction for the HR team but also ensures alignment of HR objectives with the broader organizational goals.
Implementing such a plan can help streamline operations, enhance productivity, and foster a positive work culture, thereby contributing to overall business success.
However, it’s important to remember that the effectiveness of an HR strategic plan is largely dependent on its execution. Proper communication, regular monitoring, and timely adjustments are key to ensuring its success.
Furthermore, involving employees in the planning process can boost engagement and commitment. In essence, a well-executed HR strategic plan can be a powerful tool in driving organizational growth and sustainability.
Andreas is currently leading people operations and a Global Centre of People Excellence for a rapidly growing EdTech scale up (450+ employees). In his role he is responsible for people operations, admin, IT, HR technology and all employee experience processes including compensation, performance management, engagement, onboarding and offboarding, career development and learning. Previously Andreas held a number of roles in data and analytics both in HR and for the wider business. He spent 2 years as the Global Head of People Reporting and Analytics for Upfield – a KKR company (formerly part of Unilever). In his role he was responsible for all organizational aspects of data management, including operational reporting, advanced insights projects, data protection/ethics and workforce planning. Prior to this, Andreas had spent time building high performance analytics teams and providing data insights to senior leaders at technology (Facebook/Meta) and financial services (Bank of America) companies. At Bank of America, he ran a talent practice team, across talent analytics, learning, talent management and internal mobility. Andreas holds an MSc in Organizational Psychology from the University of Nottingham and an MBA from Durham University. His areas of expertise include assessment and selection, data visualization best practices and HR systems implementation. He frequently publishes articles on the importance of data analytics as well as systems thinking in HR.
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Written by Dave Lavinsky
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their human resources consulting businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an HR consulting business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
A business plan provides a snapshot of your human resources consulting business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
If you’re looking to start an HR consulting business or grow your existing business, you need to write your own business plan. A business plan will help you raise funding, if needed, and plan out the growth of your HR consulting business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for a human resources consulting business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the lender will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the most common form of funding for a human resources consulting business. Personal savings and bank loans are the most common funding paths for HR consulting businesses.
If you want to start an HR consulting business or expand your current one, you need a business plan. Below we detail what should be included in your own business plan for an HR consulting firm.
Your executive summary provides an introduction to your own business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of HR consulting business you are operating and its status. For example, are you a startup, do you have an HR consulting firm that you would like to grow, or are you operating human resources consulting firms in multiple markets?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the HR consulting industry. Discuss the type of HR consulting business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of HR consulting business you are operating.
For example, you might operate one of the following types of human resources consulting businesses:
In addition to explaining the type of HR consulting business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to questions such as:
In your industry analysis, you need to provide an overview of the HR industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the HR industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your HR consulting business plan:
The customer analysis section of your HR consulting business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: financial services companies, government entities, healthcare institutions, and technology companies.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of human resource consulting business you operate. Clearly, government entities would respond to different marketing promotions than technology companies, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most HR consulting businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other human resource consulting firms.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes more generalized management consultants or dedicated in-house HR teams.
With regards to direct competition, you want to describe the other HR consulting businesses with which you compete. Most likely, your direct competitors will be human resource consulting businesses located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an human resource consulting business, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of HR consulting company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to strategic consulting, will your HR consulting business provide compliance consulting?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your company. Document your location and mention how the location will impact your success. For example, will you operate from a physical office, or will you primarily interact with clients online and/or at their place of business? In this section, discuss how your location will affect the demand for your services.
Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your HR consulting business, including marketing, providing consultations, building analytics processes, developing and presenting recommendations, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your 50 th consulting contract, or when you hope to reach $X in revenue. It could also be when you expect to open an HR consulting business in a new location.
To demonstrate your HR consulting business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow your business.
Ideally you and/or your team members have direct experience in human resources and/or managing HR consulting businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in Human Resources, or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
In developing your income statement, you need to devise assumptions. For example, will you focus on one client at a time, or will you have teams working on multiple projects at once? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an hr consulting business:
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office lease, any notable clients you’ve served, or an overview of the services you offer.
Putting together a business plan for your HR consulting business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert HR consulting business plan; download it to PDF to show banks and investors. You will really understand the HR industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful HR consulting business.
What is the easiest way to complete my hr consulting business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your HR Consulting Business Plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of HR consulting business you are operating and the status; for example, are you a startup, do you have an HR consulting business that you would like to grow, or are you operating a chain of HR consulting businesses?
Don’t you wish there was a faster, easier way to finish your HR Consulting business plan?
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to learn about Growthink’s business plan writing service .
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As a business owner, it is not enough to only have a business plan in place. In order to have a business run smoothly from top to bottom, every department must have a business plan. One of the first departments to focus on is the Human Resources (HR) department. This is because many of the compliance functions and hiring decisions are made from this department. It is the heart of any business in many ways and, as such, it should be treated with importance.
Why does every business need an hr business plan, why is your standard business plan not enough, steps to take to develop your hr business plan, the importance of examination and revision of your plan.
Just like a business needs a plan for success , so does the HR department. Real success for a business comes in the form of ensuring that all of the departments are working toward a common goal. The common goal is something that is outlined in the overall business plan. The department plan will look different for every department because they should all be working toward different goals, but at the end of the day, they should all still be working toward the ultimate goal of bringing the business together and making it better. Every business is different, and the HR business plan that is developed for one business may not be the exact same as it is for another business. As part of this process, it is important to analyze the needs of the specific business at hand. Another key component of this is that the Human Resources department should benchmark industry standards and requirements. Due to the heavy compliance requirements, this department is a bit different than many others within a business.
Another reason why it is so important to have an HR business plan is because every business wants to ensure compliance in all areas that require attention. The importance of this is that if this does not happen, the business could have a lot more trouble later on in the form of government fines or other penalties. Compliance is a big part of any business and HR department. If there is not a plan in place for things such as verifying that employees can legally work in the United States, minimum wage rules are met, and more, the business will be open to a lot of potential for risk. One way or another it will find you, and you will have to deal with it as a business if it is not kept up with from the beginning. By failing to take into account both the business and the regulatory needs of the department, you could be setting yourself up for failure before you even begin making your business profitable and successful. Do not make this mistake, like many other businesses have done, as it could end up costing you your business.
A common question during the process is, why is there a need for a separate plan for the HR department? A business plan is designed to outline the goals and processes for the business as a whole. It does not take into account how things should be managed by various departments. It is still important to have a business plan , but it should be understood that it is not a document that can take into account all of these other factors that are important to the growth of the business. If you take a look at your business plan, you will find that, most likely, aspects such as compliance requirements and regulations have not been included. There are many different parts of HR that need to be a priority for the department, and there should also be a plan in place to determine how the department will serve the business and the employees. This should not be included in the overall business plan because it would be out of place and it would not be directly tied to the department and the goals of that department. This is why it makes the most sense to ensure the two are separate with ties that bind them, and that the HR department has ownership of their plan.
Once the business plan is created, it is time to develop the HR business plan. To do this, it is important to ensure that all areas are examined and that the goals of the business plan are in line with the business. Use these steps to develop your own HR business plan for your business:
Once there is an HR business plan in place, the work is not over. Just like with a business plan, it is important to continue to revisit the HR business plan on a regular basis. As the business grows and as goals are met, there will be some components of the HR business plan that will need to be updated. The plan should outline how things will be run for a successful HR department, but it is not meant to be a static document. It is one that will grow with the company, meaning that it will need to be examined at least every two years. Sometimes there may be no need to make any changes while other times a lot of changes will need to be made. It will depend on a variety of factors such as whether or not the department has implemented new technology, whether or not employment laws have changed, and even how much the business has grown. As there are many factors that can play into this, it is important to ensure it remains a living document that is updated as needed.
Click here to create your human resources documents now .
Thinking about establishing your own HR consultancy business? Well, that’s a great idea!
Starting an HR consultancy can be a rewarding business venture as more and more organizations seek expert guidance to navigate the complexities of human resources.
But the first thing you’ll need is a well-written business plan to make it successful. It helps you set up and manage your services effectively, from strategic planning to talent management and employee relations.
Need help crafting your plan in order?
Not to worry. This HR consultancy business plan template will help you get started and guide you on what to include in a comprehensive plan.
Sounds good? Let’s dive right in!
A strong business plan is not just a written document; it serves as a strategic tool for starting and growing an HR consultancy firm. It covers all the essential aspects of your business and aligns with the market needs & opportunities.
Here are several key reasons why you need a business plan for your HR consultancy business:
A business plan provides a clear roadmap and highlights your consultancy business’s mission, vision, goals, and strategies to achieve them. This will help you define the steps you need to take while establishing your business, navigating you to the right direction.
If you need capital investment or loans to get off the ground, you’ll need a well-crafted business plan in place. It provides a detailed analysis of the financial feasibility and sustainability of your business. This will help you demonstrate the profitability of your HR consultancy and gain the confidence of potential investors or banks.
A comprehensive business plan can help you provide valuable insights into the operational aspects of an HR consultancy company. This key element of a business plan allows you to manage resources effectively. Also, it helps in overall operational efficiency and ensures your business runs smoothly.
With the help of a business plan, you can identify the potential risks and challenges that might affect your business. This understanding helps you develop risk mitigation strategies effectively and makes you prepare for unforeseen circumstances. Also, it ensures that your business can succeed over the long term.
An effective business plan helps you specify clear, measurable, and attainable goals for your HR consultancy business. It lets you assess the business performance and track the progress against the defined goals. This way, you can make well-informed decisions and revise the strategies as needed.
In short, having a business plan can greatly benefit you and effectively navigate the complexities of HR consulting practices.
Now that you understand the importance, let’s check out what are the key elements of an HR consulting business plan.
While writing an actionable business plan, you should consider including all the critical details you need to establish a successful HR consultancy business.
Here is a list of the most important sections for a comprehensive and compelling business plan:
An executive summary is a quick, concise overview of the HR consultancy business plan, highlighting the most essential aspects of your HR consulting firm.
Though it is the first section, writing your plan summary would be more convenient at the end once the entire doc is ready. This is so because it summarizes all the key sections you mentioned in the rest of the plan.
So, this section is your chance to provide a clear and persuasive introduction to your business that can grab the reader’s attention. Also, make sure that you keep it short and simple.
You may consider including details like your business name, location, concept, core values, vision statement, services offered, market opportunities, target customers, competitive advantages, marketing efforts, and financial highlights.
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The company overview section provides a detailed description of your HR consultancy firm, giving an in-depth understanding of your business concept and nature.
You may describe every foundational element in this section, including the legal structure, specific niche, background & history, mission statement, company owners, short-term goals, and long-term objectives.
Moreover, explain what milestones you have achieved to date and clearly outline what sets your business apart from others.
In short, this section helps readers comprehend your company’s foundation, capabilities, and areas of specialty. So keep it impressive yet to the point.
The market analysis section provides a thorough explanation of the industry and market in which your HR consulting business intends to operate.
To plan this section, you’ll need to conduct detailed market research for your HR consulting services and demonstrate its positioning within the market. Consider adding the following components:
You can even outline the market gaps and opportunities to ascribe your competitive advantages and USPs.
Here, you should note that this market analysis showcases your deep understanding of the HR consulting industry, so try to present research-backed data and charts to impress potential investors or partners.
In this section, you may clearly define what type of services your business will offer and how these services will meet the potential client needs.
For example, give a brief description of each service, including employee recruitment, training & development programs, compliance consulting, performance management procedures, and strategic HR planning.
Apart from that, you may highlight pricing strategies, unique methodologies, or potential upselling opportunities(if any).
A robust marketing strategy is vital if you want to establish a strong presence in a competitive industry. In fact, it involves the strategies you’ve decided to capture and maintain client interest that can promote business growth.
Your marketing plan should summarize the online and offline methods, sales tactics, or external promotional campaigns you will use to market or advertise your business.
For instance,
Furthermore, you can discuss the customer journey from awareness to decision and integrate strategies for customer relationship management & personalized services.
The operations plan outlines the day-to-day operations and activities required for smooth business functioning.
For an HR consulting company, you should describe your business operational details such as staffing needs, office layout, equipment & technology used, client engagement processes, and service delivery strategies.
Overall, a well-developed operations plan will not only help you draft how HR consulting services will be delivered but also ensure that your business operations are streamlined and effective.
As the name suggests, you will introduce your management team in this section. And strong management is essential for your HR consultancy’s ultimate success.
You should provide a resume-styled summary or bios of the founder(s), key executives, the general manager, and the rest of the management team members, detailing their roles & responsibilities, experience, qualifications, and skills.
Also, explain how each member fits their role and how their expertise contributes to your business growth. Consider adding an organizational chart that shows your company’s hierarchical structure.
If applicable, you can mention details about compensation plans and any external support systems like advisory board members or consultants.
To launch a successful business, you’ll need to craft a strong financial plan , along with realistic financial projections. This will help you map out the financial viability and sustainability of your business.
Generally, it covers several critical statements and financial reports for the next three to five years of operation, including detailed startup costs, financial needs, revenue forecasts, projected cash flow, profit & loss statements, and balance sheets.
Likewise, this section provides a break-even analysis, financial ratios, scenario analysis, and other metrics required for demonstrating your HR consultancy company’s financial health to potential investors or lenders.
In the appendix section, you may attach any additional information or supporting documents that don’t fit into specific sections but support your plan. It includes
Readers might use these documents or attachments for their reference as they provide additional depth to the information presented in the main text.
Need a sample business plan to start drafting your plan? Well, here you go; download our free HR consultancy business plan pdf and get started now.
This advanced business plan template has been specifically designed for HR consulting businesses. With step-by-step instructions and examples, it assists you in developing your own plan. Simply import data into your editor and use it as a reference!
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Frequently asked questions, what are the essential financial projections i need in my hr consultancy business plan.
Following are some of the essential financial projections that you should include in your HR consultancy business plan:
If you want to find and secure funding for your HR consultancy business, consider these options:
While seeking funding, you’ll need to create an effective business plan backed by detailed financial documents. This will improve your chances of getting the expected capital.
While writing an HR consultancy business plan, you’ll need to conduct a thorough market analysis and focus on the following key areas:
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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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Start your free trial with Shopify today—then use these resources to guide you through every step of the process.
Use this free business plan template to write your business plan quickly and efficiently.
A good business plan is essential to successfully starting your business — and the easiest way to simplify the work of writing a business plan is to start with a business plan template.
You’re already investing time and energy in refining your business model and planning your launch—there’s no need to reinvent the wheel when it comes to writing a business plan. Instead, to help build a complete and effective plan, lean on time-tested structures created by other entrepreneurs and startups.
Ahead, learn what it takes to create a solid business plan and download Shopify's free business plan template to get started on your dream today.
This business plan outline is designed to ensure you’re thinking through all of the important facets of starting a new business. It’s intended to help new business owners and entrepreneurs consider the full scope of running a business and identify functional areas they may not have considered or where they may need to level up their skills as they grow.
That said, it may not include the specific details or structure preferred by a potential investor or lender. If your goal with a business plan is to secure funding , check with your target organizations—typically banks or investors—to see if they have business plan templates you can follow to maximize your chances of success.
Our free business plan template includes seven key elements typically found in the traditional business plan format:
This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business objectives and strategy, and other background information about the brand.
This section of your business plan will answer two fundamental questions: “Who are you?” and “What do you plan to do?” Answering these questions clarifies why your company exists, what sets it apart from others, and why it’s a good investment opportunity. This section will detail the reasons for your business’s existence, its goals, and its guiding principles.
What you sell and the most important features of your products or services. It also includes any plans for intellectual property, like patent filings or copyright. If you do market research for new product lines, it will show up in this section of your business plan.
This section includes everything from estimated market size to your target markets and competitive advantage. It’ll include a competitive analysis of your industry to address competitors’ strengths and weaknesses. Market research is an important part of ensuring you have a viable idea.
How you intend to get the word out about your business, and what strategic decisions you’ve made about things like your pricing strategy. It also covers potential customers’ demographics, your sales plan, and your metrics and milestones for success.
Everything that needs to happen to turn your raw materials into products and get them into the hands of your customers.
It’s important to include a look at your financial projections, including both revenue and expense projections. This section includes templates for three key financial statements: an income statement, a balance sheet, and a cash-flow statement . You can also include whether or not you need a business loan and how much you’ll need.
What do financial projections look like on paper? How do you write an executive summary? What should your company description include? Business plan examples can help answer some of these questions and transform your business idea into an actionable plan.
Inside our template, we’ve filled out a sample business plan featuring a fictional ecommerce business .
The sample is set up to help you get a sense of each section and understand how they apply to the planning and evaluation stages of a business plan. If you’re looking for funding, this example won’t be a complete or formal look at business plans, but it will give you a great place to start and notes about where to expand.
A lean business plan format is a shortened version of your more detailed business plan. It’s helpful when modifying your plan for a specific audience, like investors or new hires.
Also known as a one-page business plan, it includes only the most important, need-to-know information, such as:
💡 Tip: For a step-by-step guide to creating a lean business plan (including a sample business plan), read our guide on how to create a lean business plan .
It’s tempting to dive right into execution when you’re excited about a new business or side project, but taking the time to write a thorough business plan and get your thoughts on paper allows you to do a number of beneficial things:
A business plan can be as informal or formal as your situation calls for, but even if you’re a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template.
A blank page can be intimidating to even the most seasoned writers. Using an established business planning process and template can help you get past the inertia of starting your business plan, and it allows you to skip the work of building an outline from scratch. You can always adjust a template to suit your needs.
If you’ve never sat through a business class, you might never have created a SWOT analysis or financial projections. Templates that offer guidance—in plain language—about how to fill in each section can help you navigate sometimes-daunting business jargon and create a complete and effective plan.
In some cases, you may not need to complete every section of a startup business plan template, but its initial structure shows you you’re choosing to omit a section as opposed to forgetting to include it in the first place.
There are some high-level strategic guidelines beyond the advice included in this free business plan template that can help you write an effective, complete plan while minimizing busywork.
If you’re writing a business plan for yourself in order to get clarity on your ideas and your industry as a whole, you may not need to include the same level of detail or polish you would with a business plan you want to send to potential investors. Knowing who will read your plan will help you decide how much time to spend on it.
Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.
Writing a 10- to 15-page document can feel daunting, so try to tackle one section at a time. Select a couple of sections you feel most confident writing and start there—you can start on the next few sections once those are complete. Jot down bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.
Planning is key to the financial success of any type of business , whether you’re a startup, non-profit, or corporation.
To make sure your efforts are focused on the highest-value parts of your own business planning, like clarifying your goals, setting a strategy, and understanding the target market and competitive landscape, lean on a business plan outline to handle the structure and format for you. Even if you eventually omit sections, you’ll save yourself time and energy by starting with a framework already in place.
What is the purpose of a business plan.
The purpose of your business plan is to describe a new business opportunity or an existing one. It clarifies the business strategy, marketing plan, financial forecasts, potential providers, and more information about the company.
If you need help writing a business plan, Shopify’s template is one of the most beginner-friendly options you’ll find. It’s comprehensive, well-written, and helps you fill out every section.
The five essential parts of a traditional business plan include:
There are several free templates for business plans for small business owners available online, including Shopify’s own version. Download a copy for your business.
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Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees. HRM is often referred to simply as human resources (HR). A company or organization's HR department is usually responsible for creating, putting into effect and overseeing policies governing workers and the relationship of the organization with its employees. The term human resources was first used in the early 1900s, and then more widely in the 1960s, to describe the people who work for the organization, in aggregate.
HRM is employee management with an emphasis on employees as assets of the business. In this context, employees are sometimes referred to as human capital . As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment ( ROI ).
The modern term human capital management ( HCM ) is often used by large and midsize companies when discussing HR technology .
The purpose of HRM practices is to manage the people within a workplace to achieve the organization's mission and reinforce the corporate culture . When people management is done effectively, HR managers can help recruit new employees who have the skills to further the company's goals. HR professionals also aid in the training and professional development of employees to meet the organization's objectives.
A company is only as good as its employees, making HRM a crucial part of maintaining or improving the health of the business. Additionally, HR managers monitor the state of the job market to help the organization stay competitive. This could include ensuring compensation and benefits are competitive, events are planned to keep employees from burning out and job roles are adapted based on the market.
HR professionals manage the day-to-day execution of HR-related functions. Typically, human resources is a standalone department within an organization.
HR departments vary in the size, structure and nature of their individual positions. For small organizations, one HR generalist might perform a broad array of functions. Larger organizations have several HR professionals who handle specialized roles , such as recruiting, immigration and visas, talent management, employee benefits and compensation. Though these HR positions are specialized, job functions might still overlap.
Amazon is an example of a large company with multiple types of specialized HR positions. The company's career website lists the following HR job titles:
HRM can be broken down into the following four category objectives:
More specific objectives of HRM include the following:
HRM is typically broken into pre-employment and employment phases, as well as more specific subsections, with an HR manager assigned to each one. Areas of HRM oversight include the following:
HR managers benefit from having skills and experience in a range of areas. The most essential HRM skills that professionals should possess include the following:
Almost all areas of HRM have sophisticated software that automates HR processes to varying degrees, along with other features, such as analytics. For example, job candidate recruiting has seen enormous growth in the number of software tools and management systems that match employers and job candidates. Those systems also manage other steps in the hiring process, such as interviewing and vetting.
HRM software is often provided as on-premises systems. However, nearly every area of HR tech has moved to cloud-based software-as-a-service platforms.
There are several vendors in the HRM market, including ADP, BambooHR, HROne, Isolved, Paycom, Paylocity, Personio, Rippling, SAP and Workday.
A bachelor's degree is typically required for a career in human resource management . Some colleges offer HRM degrees that provide a career path into an entry-level HR position. Another way to land a job in HR is to complete an undergraduate course of study in a related field, such as business administration.
Several years of experience in operations-heavy roles can be valuable when making a career transition to an HR position. For those lacking a relevant undergraduate degree or translatable work experience, there are HR-specific master's degree programs to help build the necessary knowledge, skills and qualifications.
Modern human resource management can be traced back to the 18th century. The British Industrial Revolution gave rise to large factories and created an unprecedented spike in demand for workers.
With many of these laborers putting in long hours -- often clocking 16-hour workdays -- it became apparent that worker satisfaction and happiness had a strong positive correlation with productivity. Seeking to maximize ROI, worker satisfaction programs were introduced. Factory conditions, safety concerns and workers' rights also began getting attention in the late 19 th and early 20 th centuries.
HR departments within organizations began appearing in the 20th century. They were often known as personnel management departments that dealt with legal compliance requirements and implemented worker satisfaction and safety programs. Following WWII, the U.S. Army's training programs were used as a model in some companies that started to make employee training a point of emphasis.
Personnel departments took on the human resources label in the 1970s. The primary factor that differentiates HR from personnel management is the way technology began to be used to improve communication and access to employee information.
Job opportunities for careers in HRM remain strong. Companies are recognizing the strategic difference a good human resource department can make and are investing in them accordingly. As a result, HR jobs are growing in demand.
According to the U.S. Bureau of Labor Statistics (BLS), HRM job titles are expected to grow 5% in the U.S. between 2022 to 2023 . Salary prospects remain strong; the median annual salary for an HR manager was approximately $130,000 in May 2022, according to the BLS. For HR specialist positions, median salaries were more than $64,000 at that same time.
Small businesses might have limited resources and a smaller workforce compared to larger companies, making HRM more difficult to implement. However, HRM principles and capabilities can be advantageous for small businesses in the following ways:
Human resource management is key to enterprise success. Learn how to choose the perfect HR software system .
Dig deeper on talent management.
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20 ways hr can help employers boost value and fuel revenue growth.
HR teams play a crucial role in driving organizational success. By strategically aligning talent management with business objectives, HR professionals can unlock the full potential of their workforce and drive growth.
To do this, it's essential to attract and retain top talent, as well as foster a culture of continuous improvement and innovation. Below, Forbes Human Resources Council members explore more ways HR teams can help their employers add value ultimately leading to sustained revenue growth.
Develop leaders. HR teams facilitate training and development programs to enhance leader’s skills and capabilities. By investing in leaders, HR helps improve frontline productivity, efficiency and retention all of which can contribute to revenue growth. - Denise Triba , Ingenovis Health
In the age of AI (and more generally digital transformation), a big "skills rethink" is necessary. According to our recent survey of 700 business leaders, 78% worry their organization can’t train employees quickly enough to stay updated with technology developments in the next three years. HR teams—with support from external HR services experts—can help in up/reskilling. - Denis Pennel , World Employment Confederation
Too often, HR is a utility, not a revenue driver. If there are areas an HR professional sees that would allow great efficiencies—or, conversely, new revenue streams—create a brief position paper that can be shared with sales to drive revenue or with finance to drive efficiencies based on the experience of the HR team. Become a strategic partner, not a utility. - John Pierce , John Pierce Consulting
Best 5% interest savings accounts of 2024, 4. shift to a performance focus.
The tech industry has shifted from employee experience focus to performance. As a result, my team and I are pushing ourselves to think outside of the traditional HR box to drive performance and productivity: aligning our metrics to ARR, using our expertise to help drive site traffic with thought leadership pieces and working with leaders across the business to drive process efficiency. - Priti Patel , G2
HR needs to track the value delivered by each program. HR writes business cases for initiatives, saying, "By doing X, we will have an ROI of Y." However, when programs are approved, no one baselines the metrics needed for a post-implementation review or measures ongoing the value delivered. HR needs to measure programs and show their value; if the program isn't showing value, it needs to be cut. - Trevor Higgs , Catalyzr, Inc.
Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?
HR needs to rethink the way it identifies value to start and reinvent the HR operating model to be more agile. Agile helps HR take on complex challenges by splitting them into smaller, doable tasks. It helps us figure out which tasks to tackle first based on their value and makes it easier to explain what we’re doing for the business and why it’s important. Do less. Do it well. - Greg McCaw , Berg Kaprow Lewis
Building an innovative and continuous improvement culture is one way HR teams may support revenue growth. HR can guarantee that the business stays flexible by hiring someone who not only meets the demands of the present but also foresees future obstacles. By funding training and upskilling initiatives, employers can guarantee that their workforce stays abreast of emerging trends and technology. - Jawad Gilani , Packages Group
In the new age of digitalization, businesses must adapt their employees’ skill sets to continue adding value as the workforce changes. By creating curated upskilling and reskilling opportunities for employees, HR teams can ensure workers are best positioned to do work efficiently and effectively—further helping to add value and grow revenue through streamlining employee work streams. - Laurie Chamberlin , LHH
The HR team should be focused on what I call REAP: Retention, Engagement, Attraction and Productivity. Everything should be directed to these four precepts. Too much time is spent on administrative issues. With the onset of AI, much of this will go away, but it’s not here yet. The culture of the HR department is determined by the CHRO. If the focus is on the business, everyone will REAP the benefits. - Richard Polak , American Benefits Council
Know the business. Align HR strategies with the business ones that generate growth. Understanding the direction of the business to ensure the talent is there to support, either through hiring or upskilling, when it'll be needed will help business leaders develop their product offerings and know that HR has their backs. In summary: Be there and be ready. - Philippe Dorion , Aptum Managed Services
HR professionals are growth partners. They translate business plans into people strategies, build high-performing teams, foster an environment of engaged employees and create a culture of innovative thinking. This translates to an efficient workforce, higher productivity and engaged employees and ultimately leads to robust revenue growth. It's about time that HR is not seen as a cost center. - Subhash Chandar , Laminaar Aviation Infotech Group
At my digital banking company, we focus on leadership development to drive outcomes related to setting measurable goals, aligned with our overall strategic initiatives. We teach collaborative problem-solving at all levels to ensure successful goal completion when cross-functional work is required. We track strategic initiatives to focus on the key areas that propel our revenue growth. - Julie Hoagland , Alkami
HR experts guide senior management regarding change management and ongoing practical difficulties. HR professionals take a holistic approach, considering more than immediate tasks and deadlines. They prioritize long-term goals and outcomes. Consequently, the role of HR in providing guidance on cultural transformations and fostering exceptional talent enables firms to increase their revenue. - Dr. Nara Ringrose , Cyclife Aquila Nuclear
Make strategic hiring decisions. People are every organization’s most valuable asset, and hiring the right talent is critical for business and revenue growth. For HR teams, this is not just about filling open roles but about strategically targeting and recruiting top talent that is deeply aligned with a company's vision and can help drive its business goals forward. - Casey Huebsch , South End Partners
HR can work more effectively to tie people analytics (e.g., employee survey data) to the financial performance of teams. For example, they can look at sales teams by region and see what differs in employee survey results between the top-performing and bottom-performing teams. They can look for factors that are unique in the top-performing team and work to make sure they are present across the entire culture. - Sanja Licina , QuestionPro
HR teams can boost revenue by attracting top talent that drives innovation and operational efficiencies. They also play a crucial role in fostering a culture that prioritizes performance and accountability, directly impacting productivity and profitability. Investing in employee development ensures we have the skills needed to meet evolving business demands, further enhancing our competitive edge. - William Stonehouse , Crawford Thomas Recruiting
HR teams that foster workforce health can contribute to the bottom line because employees who are physically and mentally well are often more productive and engaged at work. Preventing illness through better nutrition, increased movement, stress reduction and reduced substance use can also reduce healthcare claims costs, which in turn improves financial performance. - Michael Held , LifeSpeak Inc.
HR teams drive revenue growth by building a high-performing talent pipeline. They attract and retain top talent, empowering them to optimize their impact on the bottom line through continuous learning and innovation. This fosters a culture of engagement where employees see and contribute to their short and long-term impact, ensuring a competitive, adaptable workforce delivering sustained growth. - Michael D. Brown , Global Recruiters of Buckhead
Take a data-driven approach to HR. Use analytics and reporting tools to identify employee trends regarding engagement, turnover, well-being, pay equity and other key and strategic employee experience metrics. Analyze results and distill actionable insights to be shared with business leaders. Set action plans to close gaps and improve scores, making them highly visible via manager dashboards. - Laci Loew
HR teams can drive value and grow revenue by aligning workforce planning with business goals and leveraging HR analytics. Optimizing staffing levels, skills development and succession planning enhances organizational efficiency, productivity and profitability. Data-driven HR practices further enable organizations to maximize their human capital investments effectively. - Donnebra McClendon , Dayforce
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You want to know that your degree relates to your professional goals. As you pursue your BS in Business at Capella, weâll help you keep that career focus. Explore the practical value of your studies and learn how expanding your skill set can help you to build a career.
Our BS in Business with a specialization in human resource management offers a variety of courses that can help you develop career skills. So how do you know which courses are best for your professional growth? Start by setting goals. Make a list of career-related skills and identify any knowledge gaps you may have. Then look for the courses that can help you gain those skills or build on your knowledge. As you complete courses, track your progress and practice regularly so you can stay on top of the latest industry trends. Our Career Development Center can help you with your resume and job search as you learn each new skill.
Cultivating professional traits is another means to help you stand out in the workplace. For the BS in Business, Human Resource Management program, we focus on helping you to become:
This program helps you learn the human resource skills needed to help build effective relationships between organizations and their employees, implement ethics as an integral practice of business and contribute strategically and collaboratively to an organizationâs mission, vision and values.
Enrollment counselors are standing by to answer questions about scholarships or help you apply.
How to apply, what are the bs in business, human resource management admission requirements.
Applicants to the BS in Business, Human Resource Management program must provide the following information for admission:
SAT and ACT are not required for admission.
If you live outside the U.S. or arenât a U.S. citizen, you may be considered an international student.
To meet the requirements for Capella admission, you must:
Learn more about international student admissions .
Are you looking to earn your bachelorâs degree online but have questions about the cost? Many students are looking for ways to save money on their education and online learning can be a great way to do it.
Here are just a few of the potential savings you can enjoy when you earn your degree online.
More than 900 organizations â including corporations and healthcare organizations â invest in their employees by partnering with Capella University to offer access to tuition savings and other educational benefits. See if your employer is a partner of Capella .
Apply for a $15,000 Capella Progress Reward , a scholarship to help fund your bachelorâs degree.
Learn more about Capellaâs transfer credit process . You may be able to transfer previous college credits to cover up to 75% of select bachelorâs degrees.
Capella University accepts federal grants , which are education funds that you may not have to repay. Find out more about federal grants and whatâs available to you.
We offer two online learning formats, GuidedPath and FlexPath, so you can choose the one that meets your needs and learn on your time. Compare our learning formats or take our quiz to discover which learning format fits best with your learning style.
Put your passion for the people side of business to work with a program that helps you develop human resource management interpersonal and professional thinking skills needed to manage talent, develop intellectual capital, deal with continuous change and impact organizational effectiveness as a human resource leader and manager.
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A performance improvement plan (PIP), also known as a performance action plan, is a tool to give an employee with performance deficiencies the opportunity to succeed. It may be used to address failures to meet specific job goals or to ameliorate behavior-related concerns.
Outcomes may vary, including improvement in overall performance; the recognition of a skills or training gap; or possible employment actions such as a transfer, demotion or termination.
HR's role includes:
A PIP should be used when there is a commitment to help the employee improve, not as a way for a frustrated manager to start the termination process. Used as the latter, it's nothing more than a document trail that should already exist, and it signifies to all employees that no such help is available. Bottom line: HR needs to assess if a structured plan with time-sensitive goals is the appropriate next step, or if a PIP will be more of a detriment than an aid.
To assess whether a PIP is warranted, HR should consider the following:
Once the need for a PIP has been established, have the manager create a draft of the plan for HR to review. An improvement plan should include:
Employers may choose a letter format or use a standard form when creating a PIP. See two samples below:
Performance Improvement: Action Plan (PIP #1)
Performance Improvement: Action Plan (PIP #2)
HR should review the plan with a focus on removing any bias against the employee. Is the performance issue clearly stated and well-substantiated? Are the objectives fair and the time frames reasonable? For example, is a salesperson given a sales goal that far surpasses the projected sales of the clients assigned? Is the employee being given the proper tools and training needed to improve? If it's a relatively new employee, was an adequate onboarding effort in place to help the employee become acclimated? If HR has a role in making those provisions, that process should start immediately. The key to this step is to ensure that the plan is attainable and fair and not just a means to terminate an employee.
It's time to meet with the employee to discuss the plan and expectations. While not the most pleasant of meetings, it helps if the manager conveys his or her own commitment to the plan and to the employee's success. Employee feedback should be encouraged to help identify areas of confusion and to help foster ownership. Be open to changes based on the employee's input; the perspective of a valued employee (one worth the time and effort of a PIP), is no less valuable here and may lead to a more-effective plan.
After fully discussing the plan, the manager may make modifications based on employee feedback. Once HR has reviewed any changes, the final plan should be signed by both manager and employee and forwarded to HR for approval.
If the employee is unable to commit to the PIP process at this point, the employer will need to determine whether termination, demotion or another appropriate employment action should be taken.
The manager should ensure all progress meetings are scheduled and occur on time. Cancelling meetings or showing up late would convey a lack of importance and commitment on the manager's part. Progress toward goals should be documented and discussed, seeking to identify why improvements have or have not been made. If gaps in training or required tools become apparent, provide those as soon as possible. Encourage employees to lead these meetings, to self-report on how they believe they are doing and what realizations they might have made, or what else they feel they need to succeed.
Successful progress made toward the goal should be recognized as a means of motivating the employee to continued improvement.
When the employee has responded positively by meeting plan objectives, possibly before the expiration date of the plan, the employer should formally close the PIP, recognize the employee's success and allow the employee to continue employment. While a positive occasion for the employee, the manager must be sure the employee understands that continued good performance is expected.
If an employee is unable to improve or if his or her performance worsens, the PIP should be closed, and a possible reassignment, demotion or termination should be considered, based on the specific circumstances.
When the employee is committed to improvement, but falls short of the objectives within the established timeline, it may be worthwhile to extend the plan to give him or her a bit more time to succeed. Additionally, if objectives were found, in retrospect, to not be realistic or fully within the employee's control, the plan might be ended successfully, based on the improvements achieved.
The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.
Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.
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Here are six steps to help you succeed at the human resource planning process. 1. Assess current employees' skill levels. The first step to creating a future-forward HR plan is to assess employees' current skill sets, and compare them to your operational needs moving forward.
Management and Human Resources Business Plans. By. Daniel Richards. Updated on September 13, 2022. Fact checked by J.R. Duren. In This Article. Photo: Georgijevic / Getty Images. A business plan should include plans for your company's management and human resources departments. Learn what each section should include and how to write them.
To drive HR strategic planning and any HR transformation initiatives, follow these five steps to create an effective human resources strategy that supports enterprise business goals:. Understand your organization's mission, strategy and business goals.; Identify the critical capabilities and skills.; Evaluate the current capabilities and skills of your talent and the HR function, and ...
Strategic human resource management (SHRM) is a process that organizations use to manage their employees. It is a way to ensure that the organization's HR are used in a way that supports the ...
Without such a plan in place, your workers will feel unprepared and won't know how to work towards your company's overall goals. Steps for Developing a Human Resources Department Business Plan. There are several steps to creating an HR business plan. They include: Clarify the requirements. While you might be tempted to create a detailed plan ...
Human resource planning (HRP) is the strategic process of ensuring your business has the correct number of skilled employees to meet company goals. It involves talent management, employee performance and data analysis, needs forecasting, and more.
Carry out a needs forecast. Analysing future labour requirements is an important step in human resources planning. Although there will always be fluctuations, it is critical to have a forecast in place of factors such as: redundancies, dismissals, retirements, promotions, etc. 4. Write the HR plan.
Human Resource Planning: HRP is the ongoing process of systematically planning ahead to optimize and maximize your business's most valuable asset — high-quality employees. Strategic Human Resource Management: SHRM is a holistic approach to assembling the best team for your business's growth and success.
Human resource planning, also known as workforce planning, helps organizations recruit, retain, and optimize the deployment of people needed to meet strategic business objectives and to respond to changes in the external environment. In order to proactively avoid talent shortages or surpluses and achieve a balance of talent based on need ...
Human resource planning, or HRP, ... Change is constant, especially in today's fast-paced business world, and human resource planning positions organizations to seamlessly navigate these changes. From staying updated with industry trends to adapting to regulatory shifts, an HR department's proactive planning ensures businesses remain ...
Following this, the first step in the HR action plan 2024, is to assign a person who will be in charge of creating and implementing the HR plan. For smaller companies, this person will probably be the CEO. In slightly larger businesses, the person responsible is normally the same one who handles all of the human resources-related tasks.
The Bottom Line. Human Resource Planning (HRP) is the systematic process of analyzing and forecasting an organization's current and future human resource needs and developing strategies to meet those needs. It plays a critical role in aligning the workforce with the organization's strategic objectives and ensuring its long-term success.
In "hard" human resource planning, a quantitative approach is taken. The focus is on workforce capabilities and resource planning. Supply forecasting and skills inventory data is used to predict future workforce requirements. The sole mission is getting that sweet alignment between human resources and the business's needs.
Human resource planning steps. Here are some of the steps you can take for effective human resource planning: 1. Analyze the company's current employees and their offerings. Analyzing a company's current offerings, staff skills and business goals are essential to planning. This helps you understand what you might need to improve or what works well.
Human Resource Planning - HRP: Human resource planning, or HRP, is the ongoing, continuous process of systematic planning to achieve optimum use of an organization's most valuable asset — its ...
What Is a HR Business Plan? A HR business plan is a targeted and comprehensive plan that is geared towards achieving an organization's human resource objectives. The broader plan may cover the more specific areas of HR. According to an article published by the University of Minnesota, a Human Resource Management (HRM) strategic plan must consist of six main parts.
Human resources play a critical role in the hiring, training, and retention of staff. A business plan will clarify these procedures. A HR business plan also provides consistency in the implementation of benefits and managing the welfare of the employees. The human resource business plan empowers the department to perform at its best.
Human Capital Maximizers (HCM) is a human resource consulting company located in Portland, Oregon. HCM has expertise in a wide range of HR areas and is targeting the emerging company market. HCM will offer this market the ability to compensate client's employees with stock options from their company. This will be especially appealing to many ...
Develop A Human Resource Business Plan - The first step in starting a business is to create a detailed human resource business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
The AHRP is a blueprint for the human resource planning process for the coming year. These are the steps that explain the process of HR planning: 1. Align the HR plan with the overall business strategy. The primary purpose of an HR yearly plan is to meet the company's critical goals. Naturally, it must consider your business objectives, which ...
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For an human resource consulting business, your marketing plan should include the following: Product: In the product section, you should reiterate the type of HR consulting company that you documented in your Company Analysis.
As a business owner, it is not enough to only have a business plan in place. In order to have a business run smoothly from top to bottom, every department must have a business plan. ... One of the first departments to focus on is the Human Resources (HR) department. This is because many of the compliance functions and hiring decisions are made ...
Here is a list of the most important sections for a comprehensive and compelling business plan: 1. Executive Summary. An executive summary is a quick, concise overview of the HR consultancy business plan, highlighting the most essential aspects of your HR consulting firm. Though it is the first section, writing your plan summary would be more ...
Our free business plan template includes seven key elements typically found in the traditional business plan format: 1. Executive summary. This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business ...
The term human resources was first used in the early 1900s, and then more widely in the 1960s, to describe the people who work for the organization, in aggregate. HRM is employee management with an emphasis on employees as assets of the business. In this context, employees are sometimes referred to as human capital.
1. Invest In Leaders. Develop leaders. HR teams facilitate training and development programs to enhance leader's skills and capabilities. By investing in leaders, HR helps improve frontline ...
A human resources (HR) manager oversees a company or business's administrative and organisational functions. The manager usually heads the HR department and plays an important role as a bridge between management and employees. HR managers work in nearly every industry. As long as a company has employees, an HR manager is typically needed to ...
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Step 2: Develop a Draft Plan. Once the need for a PIP has been established, have the manager create a draft of the plan for HR to review. An improvement plan should include: Information on what ...
Today, the Biden-Harris Administration is releasing the United States' second National Action Plan (NAP) on Responsible Business Conduct, reflecting a commitment to strengthen and improve respect for human rights and labor rights, expand use of green energy, counter corruption, protect human rights defenders, advance gender equity and equality, and promote rights-respecting use of technology ...