Brief History

The service industry has grown in recent decades. Most of the companies provided their services to the end-users to satisfy their needs and wants. In service industry, the consulting services are growing in demand at greater level. People approach consultancies for their work that increase the demand in the market (Rennung, F., Luminosu, C.T. and Draghici, 2016).

In the following report, the different performance of the two companies in the same business will be representing. The analysis will cover both financial and non-financial parts. In the aspect of financial, those two companies will be observed from trend, horizontal, and vertical as well as through ratio of particular year. In non-financial part, appropriate methods will be used to explore the operation for both the two organizations (Amanullah et. al., 2015). In the report two companies of service industry will be compared which are Business Solution consulting and Blueprints Business Planning.

Blueprint Business planning is a new company that is handling by the existing workers of Jessie Jones as a management consultant. The company provide various kinds of services to their clients such as provide training programs, service of mentoring as well as provide limited amount of business planning to a range of clients. The company provide the service of consultancy to their clients, to achieve success in the marketplace as well as help the clients in guiding their own business goals. They have a target to establish small and private company who mainly specialised in the management consultancy services for small and medium sized companies sector in Sydney and other cities within the state of New South Wales, Australia (Blueprint Business planning, 2014).

Business Solution Consulting is a new consulting firm which mainly focused on serving the wide-ranging needs of the businesses in the full range of the business cycle. The company offers variety of services according to the needs of the clients. The services provided by the company include preparation of business and marketing plan, human resource advising, development of management as well as financial search and procurement. The company prefer to establish the relationship with a younger process and work on maintain the relationship with them over the long term (Bplan, 2018).

Blueprint Business planning provide the services of business planning to small and medium enterprises as well as also deliver business training programs to the clients. The company also provide the service of book sales. They cover the entire target segment of small and medium enterprises with an expectation to lead in a market as a best business advisor and planner. The company reach out to the clients with the tools of communication as a way of reinforcing relationship (Blueprint Business planning, 2014).

Non-Financial Analysis

Business Solution consulting provide services to all range of small and medium level enterprises but mainly has a focused on start-up business in which they mostly refer earlier stage of operation to manage in efficient way. The company provide list of services to their clients. They prepare business plan for the consumers with financial search and procurement as well also provides IT consulting services. The company has adopted various types of promotional tools to reach out their clients as well as maintain the relationship with the younger process for long term basis. The small and medium sized enterprises has cover majority share in US and international market which would be ease for the company to target such segment in the market for their services (Bplan, 2018).

The target market of Blueprint Business Planning is small to medium size companies those who have employees of 10 to 100 are acceptable by the company. According to the business plan, the targeted area of the company is Sydney metropolitan. The consumers can approach the company when they need some expertise to help in running their firms. The guidance is often needed for the survival or repositioning of the firms. The company also sale of various books tittles in which the information about material which are initially covered in their course of training.

In contrast, Business Solution consulting target all segment of the clients of small and mediums enterprises with delivering variety of services to the clients. They mostly prefer start-up companies with them they can continue their relationship for long-term. Certain broad range of knowledge and expertise require to launch new business, the lack of such skills s would cause loss to the firm therefore, Business Solution Consulting provide their services to such kind of firms which is known as start-up consulting services.

Blueprint Business Planning uses different types of tools to target maximum consumers. The company is setup as small enterprise and has a target to lead the market in limited period of time therefore; Blueprint Business Planning adopted various types of promotional tools to reach out their clients as well as to spread awareness about their products such as the company has printed their business card to show their existence among the clients, direct mail to the clients which are followed by telephone contacts, the company also approach to the clients through networking, testimonials and public relations. Other than that the company adopt the way of internet, social media, some software and hardware to target their consumers.

Business Activities

In contrast, Business Solution Consulting target start-up companies to lead in the market due to the reason the market of US majorly covered by the new companies that required sassistance. The company use the tool of internet to target their clients. They intend to stay on the pulse of new business activities within the local area. The company adopt other promotional tools also such as sales promotion, advertisement; maintain public relation but they mainly target their clients through the means of internet (Tiago and Veríssimo, 2014).

The company Business Solution Consulting mainly target the clients from small and medium enterprises. The company charge limited amount from the clients to maximise the number of users in the market. They charge $110 per hour for the consulting services as well as international trade opportunities.

Blueprint Business Planning has planned to charge $120 per hour for their services of consultancy and training. The price of Blueprint Business Planning is high as comparison to the Business Solution Consulting which limits their target segment.

Financial analysis will be done through selection of data, evaluate them and interpret the meaning of the data along with related information to help the company to differentiate the risk as well as return that they would have before doing such investment (Kuratko, 2016). The financial analysis in the report will define the financial performance of Business Solution consulting and Blueprint Business planning (Burke, 2017).

Net profit is bottom line of earning of the company for the period (Vernimmen et. al., 2016). The owner of the Business Solution consulting has expected the profit earning of $ 138,666 in the next year in the turnover of $ 1106240. Through profit margin the company can analyse their performance in an effective manner. In the contrast, the company Blueprint Business planning has expected $2320 as a profit margin in the turnover of $ 103750. Based on such forecast, it is projected that:

Business Solution consulting:

Net profit margin % = Net profit before tax/ Sales turnover

                                                       = $ 138,666/ $ 1106240 = 12.53 %

Blueprint Business planning –

                                                        = $ 2320/ $ 103750 = 2.24 %

The profit margin of Blueprint planning is quiet low as comparison to the business consulting. The net profit of Blueprint Business planning represents that their performance is low as well as their expenses are high which represent low profit margin of the company.

In contrast, the profit margin of the company Business Solution consulting is better than profit margin of Blueprint Business planning which represent that the performance of the company is going well as well as their expenses are low which showcase high profitability of the company

Target Market Analysis

Turnover represents total revenue or sales of the company. Both companies cover in the segment of service industry, therefore their sales will be done through delivering services to the clients (Bempah, 2015). The services being pay by the clients to the service companies according to their requirement (Madhi, 2017). The annual turnover of Business Solution consulting is $ 1106240 which is sufficient according to their expansion of business therefore the turnover of Blueprint Business planning is $ 103750 which is low as comparison to the Business Solution consulting. The target consumers for both companies will be from same sectors but the turnover ratio represents that the tactics of Business Solution consulting is quiet high as comparison to the Blueprint Solution planning. The business of Business Solution consulting spread at greater level which increase their turnover whereas the business of Blue print Business Planning spread in limited market that represent low turnover as comparison to other company.

Administrative expenses include the cost of salary, expenditure on marketing and so on (Venieris, Naoum and Vlismas, 2015). The administrative expenses of both companies are high. Business Solution Consulting has expected the expenditure of $ 913800 on the administration due to the reason; the company has employed six people in their business that are particularly specialized in marketing, finance, sales, management, technology human resource and operations, other than that company spend huge amount in promotions which is expected to increase  in the near future.

The administrative expenses of Blueprint Business Planning are $ 95280 which is quiet high according to their turnover. It represent that company would faces huge expenses in running the business which is also expected to grow in near future.

While comparing the both companies, the administrative expenses of Business Solution Consulting are high as comparison to the Blueprint Business Planning due to their expansion of business as well as turnover.

The return on investment help in measuring the performance of the company, analyse the investment in inventory and capital equipment investment (Almazan, Chen and Titman, 2017). The return on investment provides an opportunity to the company to find out the revenue received from the investment which provides an advantage of the new income of the company (Chittenden and Derregia, 2015). The net profit of Business Solution Consulting is $ 138,666 as well as the total investment is $ 332171 therefore,

Return of Investment (ROI) = Net Profit/ Total Assets * 100

Promotional Tools and Marketing Strategies

                                                  = 138666/ 332171 * 100

                                                  = 41.74 %

Whereas, the net profit of Blueprint Business Planning is $ 2330, Total assets are $4,50,000 therefore,

                                     = 2330/450000 * 100

                                     = 51%

The company can analyse their amount of return through per cent of ROI, which means if percentage of ROI is higher, it represent higher profit in contrast if percentage of ROI is low then it represent low amount of return. Therefore, the ROI of Business Solution Consulting is 41.74% which is low than of Blueprint Business Planning that is 51%. It represent that Blueprint Business Planning will receive higher return as comparison to the company Business Solution Consulting

Break-even is a point where the company will examine the margin of safety at a point of no profit or loss. It will help to analyse what level of sales is needed to cover total fixed costs (Scarborough, 2016). The expected fixed cost of Business Solution Consulting is $76, 150 and it is also expected that contribution margin is equal to the gross margin which is 86%

Break-even point = Fixed Cost/Contribution margin

                          = $ 76,150/ 0.86

                          = $ 88546

The expected fixed cost of Blueprint Business Planning is $95280 and the contribution margin is estimated as 94%

                              = $95280/ 0.94

                             = $101362

It represent that the estimated break-even point of Blueprint Business Planning is better than Business Solution Consulting in the business plan.

Business Solution Consulting provides services to their clients who help them to compete in the competitive market and maximise the effectiveness of the activities of the organization. The services of the company help their clients to execute the policies of the firm in effective manner. Business Solution Consulting is an SME company which are registered in USA. The company has a team of six business consultants. They are specialized in particular segment such as human resource, technology and so on. The company are equally owned by Andrew B., Christiansen and David E. Fields ((Bplan, 2018).

The company provide ongoing services which include updates of business plans, marketing plans, IT consultancy services, e-commerce consulting services and human resource advising. They are flexible and work according to the fashion preferred by the client. But the business of consulting industry is very fragmented. Most of the large multinational companies dominate the industry though strong promotional and marketing strategies. The operating and administrative cost of the company is very high which affect the profitability of the organization (Blueprint Business planning, 2014).

Analysis of Pricing Policy and Consumers

Whereas, Blueprints Business Planning is proprietor limited company which will manage by the Jessie Jones, Stephen Molloy, and Andrew St John with the ratio of 4:4:2. The company deliver the services for business as well as also provide the services of training to the clients but the company are facing the challenges related to insurance and security which involve the compensation of workers, public liability, and professional indemnity.

From the above analysis it can be concluded that Business Solution Consulting need to focus more on the marketing and promotional strategy by adopting other tools for promotion rather than depending on the single tool. The company also need to more focus on maintaining their relationship with their clients to cope up from the challenges they are facing. They need to operate their business in more organized manner by controlling on the expenditure to enhance their profit margin more efficiently.

There are also certain recommendations for Blueprint Business Planning that, the company need to maintain the records as well as data of their clients for backup. They need to concentrate on innovative ideas and technology to compete in the market. The profit margin f the company is quiet low which need to be improved through different marketing strategies which attract maximum consumers. The company only focus on the process of sales and operations that is highly required to be enhanced by approaching in different segments as well.

Conclusion

From the above analysis, it can be concluded that Business Solution Planning is the small business enterprises that deliver their consulting services to the clients in effective manner. They cover maximum market in limited period of time that would help the company to lead the market of US. Certain challenges also faced by the company which need to be resolved to succeed in the market.

Blueprint business planning is also a small scale company, who mainly target small and medium enterprises for their services. The company also provide training services to the clients other than consultancy services which are efficiently managed by the company. By comparing the business plan of both the companies, the business plan of Business Solution Planning is better than Blueprint Business Planning due to their performance, profit margin, break-even point. Blueprint Business Planning is needed to concentrate on their turnover to enhance their profit margin.

References

Almazan, A., Chen, Z. and Titman, S. (2017) Firm Investment and Stakeholder Choices: A Top?Down Theory of Capital Budgeting. The Journal of Finance, 72(5), pp.2179-2228.

Amanullah, A., Ab Aziz, A., Hadi, F.A. and Ibrahim, J. (2015) Comparison of Business Model Canvas (BMC) Among the Three Consulting Companies. International Journal of Computer Science and Information Technology Research, 3(2), pp.462-471.

Bempah, B.S.O. (2015) FACTORS AFFECTING BUDGETING AND FINANCIAL MANAGEMENT PRACTICES OF DISTRICT HEALTH DIRECTORATES IN GHANA. International Journal of Arts & Sciences, 8(7), p.303.

Blueprint Business planning. (2014) Blueprints Business Planning Pty Ltd [Online]. Available from: https://ebookcentral.proquest.com/auth/lib/kingsowninst-ebooks/login.action?returnURL=https%3A%2F%2Febookcentral.proquest.com%2Flib%2Fkingsowninst-ebooks%2Fdetail.action%3FdocID%3D4802118 [Accesses on 14/12/18]

Bplan. (2018) Consulting Business Plan [Online]. Available from: https://www.bplans.com/consulting_planning_business_plan/market_analysis_summary_fc.php [Accessed on 14/12/18]

Burke, W.W. (2017) Organization change: Theory and practice. New York: Sage Publications.

Chittenden, F. and Derregia, M. (2015) Uncertainty, irreversibility and the use of ‘rules of thumb’in capital budgeting. The British Accounting Review, 47(3), pp.225-236.

Kuratko, D.F. (2016) Entrepreneurship: Theory, process, and practice. New York: Cengage Learning.

Madhi, D. (2017) MULTICRITERIA METHODOLOGIES IN DECISION MAKING PROCESS IN FINANCE. Researchers World, 8(2), p.105.

Rennung, F., Luminosu, C.T. and Draghici, A. (2016) Service provision in the framework of Industry 4.0. Procedia-Social and Behavioral Sciences, 221, pp.372-377.

Scarborough, N.M. (2016) Essentials of entrepreneurship and small business management. London: Pearson.

Tiago, M.T.P.M.B. and Veríssimo, J.M.C. (2014) Digital marketing and social media: Why bother?. Business Horizons, 57(6), pp.703-708.

Venieris, G., Naoum, V.C. and Vlismas, O. (2015) Organisation capital and sticky behaviour of selling, general and administrative expenses. Management Accounting Research, 26, pp.54-82.

Vernimmen, P., Quiry, P., Dallocchio, M., Le Fur, Y. and Salvi, A. (2014) Corporate finance: theory and practice. New Jersey: John Wiley & Sons.