FINAL PROPOSAL

TECH ADVISORS - FINAL PROPOSAL

ECO/561
February 29, 2012
Mark Thompson

FINAL PROPOSAL TECH ADVISORS

FINAL PROPOSAL

TA is a provider of business consulting services and computer technology based

on the premise that the management of information technology for business must be
delivered as a package that includes legal, accounting, marketing, training an all areas
involved on the development of the business that need some kind of computer technical
related technology. TA advises business on how best to use technology and make grow
profitably and meet business objectives.
People who are not interested in the management of computer technology or simply do
not have the knowledge in the area need to find reliable suppliers of hardware,
software, service and support. Need to outsource and use professional service
providers as trusted allies.
The following pages contain a business proposal for a service company called Tech
Advisors TA divided into sections including assumptions about:
Variable and Fixed Costs, Increasing Revenue, Profit-Maximizing Output, Market
Strategy, Barriers to Entry, Increase Product Differentiation and Minimized Costs for the
service.

TA keys to Success
Our professional services distinguish from other businesses on the consulting industry
based on our advisory, technical, business communication and management skills
combined with specialized expertise and wide experience personnel.
Tech Advisors plan to increase sales in more than 25% over the first two years, while
increasing revenue, maximize profit, service differentiation and minimize cost.
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FINAL PROPOSAL

Market Structure and Conditions

The global market for consulting is making a cautious move toward recovery in
many sectors, most notably in emerging markets. In fact, achieving growth in a
slower economy, even amid concerns over a possible double-dip recession, is still
a priority for clientsand they are spending, carefully, on consulting services in
pursuit of this goal. At the same time, clients are pursuing a second wave of cost
reduction, more comprehensive and strategic than during the downturn (Kennedy
Consulting Research and advisory, 2012).

Description of Products and Services

AMT focuses on local markets, small businesses and home offices. In service
and support, we offer computer technology for small businesses including personal
computer hardware, networking, information technology, software, customer service,
training, maintenance contracts, temporary help during projects, security, support and
deliver of the project not only on the scope but also guarantees the customer pleasure
with the final product.

Variable and Fixed Costs

FINAL PROPOSAL

Variable costs are costs that vary with output. Fixed costs are costs that are
independent of output (Fundamental Finance, 2010). As in the TA case Often
the main variable cost in providing a service is the cost of wages for an employee
working directly in providing the service. (Start your Own Business Work-book
4). Therefore fixed costs for TA will be any cost associated with the ownership of
equipment; insurances, rent, royalty fees, etc. and those could be annually or
monthly. Variable costs depend for TA would be the cost of wages for one of our
employees depends on the type of project.

Increasing Revenue
To increase our revenue the company must be receiving an income appropriate
to the skills knowledge, experience, and money invested on the business. TAs focus is
to provide great customer service in order to maintain clients and thru the experience of
old clients get new client and customers, and also increasing the number of times that
those clients look for our help. Increase the value of each new project being client
oriented and problem resolution effective.
Competitiveness is the key. The only way to differentiate is to define the
companys goals to be an ally of computer technology for our customers.. We need to
offer a true partnership. The benefits we sell include many intangibles: safety, reliability,
knowing that someone will be there to answer questions and assist in the important
moments.

Market Strategy
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FINAL PROPOSAL

A marketing strategy is a process or model to allow a company or organization

to focus limited resources on the best opportunities to increase sales and
thereby achieve a sustainable competitive advantage (Easy Marketing
Strategies.com, 2009 p.1).
TA strategies are based on being price competitive matching competitor not only
in price but in better performance, leverage our own unique abilities that
competitor dont have yet or are really difficult to copy and defensive strategies
against leapfrogging.
Emphasize service and support; base our business in long term relationships.
Pricing strategy: We must charge appropriately for the service and high quality
support and the good results that we offer. Our performance structure has to
match the cost structure to ensure the wages we pay a good service and support
this balanced with the costs we charge. Therefore we must ensure that we
deliver and charge service and support. Training, service, installation, support
networks, all this must be available immediately and priced to sell and generate a
profit.
To create the right marketing mix, businesses have to have the right product, the
price must be right, the goods must be in the right place at the right time, and the
target group needs to be made aware of the existence and availability of the
product

through

promotion

(The

Times

Newspapers

Ltd,

2011).

Barriers to Entry

FINAL PROPOSAL

Before a firm can compete in a market, it has to be able to enter it (oecd.org,

2007).
Because TA is not a monopolistic business barriers are really low and limited, our
business idea is really easy to replicate TA is a business that will compete not
only on branding, name and good will but also with our expertise, experience and
customer service package.

Increase Product Differentiation

According to Michael Walsh The more you know about your customers needs
and the better you do in serving those needs to your customers satisfaction
the stronger your competitive position will be in the market.(2011, p.2).
We cannot just sell service and support, we must also comply, ensure we
have the knowledge-intensive business and intensive service business say we
are.
Promotion Strategy: Just as we change strategies, we need to change the way
we promote ourselves.

Minimized Costs for the service.

FINAL PROPOSAL

Cost Recovery
Cost recovery does not mean paying the cheapest price. It does mean gaining
the highest leverage per dollar spent. Often, in fact, it makes more sense to
spend a little more to obtain a product or service that most closely aligns with
your needs and brings satisfaction. Too frequently, "I got it cheap" is the
consolation prize when you end up with something that really doesnt properly
serve your needs (business-growth.com, 2008)

Our costs are part of the reduction of profit margins. As price competition
increases, the pressure between the price the manufacturer's distribution channels and
the purchase price for end users continues to increase.
To keep costs as low as possible, we need to focus on ensuring that our volume
gives us negotiating power.

Pricing and Nonpricing Strategies

As consultants, we are forced to think about many different elements when pricing our
services. Should I price with an hourly rate or by project? Should I base the prices on
the market or value I am creating and giving to the client? Our price strategies are a
mix between all the above, taking into account how the market is and how our services
fit on it plus the aggregate value that our company is putting on the project and the time
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FINAL PROPOSAL

invested on it. Aligned the price with the market not always gives the best results, every
case meets different needs.
We include a pricing diagnostic to help answer questions and how we can work as a
team looking for the best ways in which our company and the client have a win-win
opportunity to earn the highest profit and to give the best service.

Conclusion

There are several aspects of business consulting services and computer technology
industry, the constant struggle with sales and marketing, finding good leads and
qualifying prospects as well as potential customers reason why is so important to
choose the right consultant provider.
The main aspects of business consulting are the ability to understand the domain and
the existing market condition. The global market for general consulting is making
cautious moves because of the recession but technology is a need and us being
technology consultants that makes us an investment rather than an expense, a
necessity which is a plus in our favor.
Our professional services distinguish from other businesses on the consulting industry
based on our advisory, technical, business communication and management skills
combined with specialized expertise and wide experience personnel. TAs focus is to
provide great customer service.

Increase the value of each new project being client

oriented and problem resolution effective.

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FINAL PROPOSAL

References

Rural Womens Network.(2006) Start Your own Business Workbook 4.Retrieved from
http://www.ruralwomen.org.uk/pdfs/book4businessviability.pdf

Fundamental Finance. (2010). Variable Costs and Fixed Costs. Retrieved from
http://economics.fundamentalfinance.com/micro_costs.php

FINAL PROPOSAL

The Times Newspapers Ltd. (2011). Marketing Mix. Retrieved from

http://www.thetimes100.co.uk/theory/theory--marketing-mix-price-place-promotionproduct--243.php

Kennedy Consulting Research and advisory, 2012. Global Consulting Marketplace:

Key

Trends,

Profiles

and

Forecasts.

Retrieved

from

http://www.kennedyinfo.com/consulting/research/global-consulting-marketplace

Easy Marketing Strategies.com (2009) Marketing Strategies. Retrieved from

http://www.easy-marketing-strategies.com/definition-marketing-strategy.html

Oecd.com (2007) Retrieved from http://www.oecd.org/dataoecd/9/59/37921908.pdf

Michael Walsh,(2011) The tree Element of product Differentiation. Retrieved from

http://business-growth.com/2008/07/25/the-three-elements-of-product-differentiation/

business-growth.com,(2008)

Retrieved

from

http://business-

owth.com/2008/07/25/the-three-elements-of-product-differentiation/

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