In order to understand how business can be successful, first we have to define and differentiate the considerations needed for planning and controlling the production of services.
When we plan, we seek to determine the things required that would deliver the goals of the business. Once we have determined these requirements, we control the business through proper and efficient execution/implementation of the plan.
Let us apply this to the consulting business I intend to open in the future, as discussed in NDB 6107 A1.
We need to determine and plan the maximum utilisation of the resources available for the business, the capacity to supply the demand of and for the services, the quality of the services provided, and its cost and delivery expectations. We also need to look at the cultures and values the business represents that are evident in the services it provides and the way it provides them. We need to take into consideration the scheduling and production method, which will affect decisions to be made and influence the fulfilment and delivery of the job. Lastly, in order to keep the production process going smoothly, we need to look into planning and estimating the cost and degree of maintenance of any equipment or machinery that the business utilises for production and to minimise and eliminate failure costs.
Resources
Since I am looking at a consulting business, I will not need to discuss much about resources involved for a plant or a manufacturing/factory set-up.
However, I will need to determine and plan how much financial resource is required to start and operate the business for at least six months, without really expecting to make a profit. I also need to determine how much is required and how long it will take to build the network, as well as set targets in securing the first project that would earn its first profit.
I have existing resources with regard to office equipments. I also have minimal financial requirement with regard to the office space to use.
However, I definitely need to plan for the technology the business will use, such as the software for: graphic design, technical writing, project management, and accounting - including billing. All these could cost a substantial sum of money.
I might also consider purchasing a second hand car for transportation.
The communication and connectivity through a landline, a mobile phone, the internet and the use of postal and courier services must be included in the plan.
I also need to consider how much it would cost to build the business's brand from designing its logo, to printing of marketing collaterals such as business cards and brochures.
With regard to labor resource, I would have to find at least three graphic designers to sub-contract. This is essential, even if it is a one-woman-show, as my marketing strength is NOT positioned in graphic design. With my limited financial resources, I would seriously look into hiring talented students in Wellington or contacting my network of graphic designers in the Philippines and Hong Kong (outsourcing).
All of the above will comprise the financial resource I need to make the business operational. These are just a few to start with. I am sure that the more I think about the business plan, the more things will come up.
Quality, COST and Delivery
I will need to estimate my capacity to deliver a number of projects in a month or a given period. This means, I have to establish the services I will be offering, including the amount of time required to deliver them.
For starters, marketing services could include but may not be limited to branding - offline, online or both, search engine optimisation, graphic design, direct marketing (building a subscription base), events management, strategies and implementation and market research. I need to allocate completion time for each service offered, which could be from a week to a month.
I would also need to determine the base rates I would charge the client, not including the transportation cost when required. This will give me an idea of how much money is incoming, outgoing and earned. Another point to consider with regard to cost (for the clients) is whether to register for GST or not, as this will surely affect the pricing of services.
All this will determine the capacity I can control (the number of jobs I can deliver at a given time production targets), on my own, and how it will be affected by both the dependent and the independent demands. These demands can also affect the marketing strategies I would implement.
Cultures and Values
My experience of having worked overseas and of having been exposed to different cultures would help me mould the kind of work culture I would like for my business. I have worked with people from diverse backgrounds, and I have come to a very good understanding of how respect and tolerance play the two integral parts into a multi-cultural set-up. New Zealand has become a melting pot in the past recent years. Influx of immigrants from all over the world is adding a different flavour to the setting of New Zealand society, businesses and industries.
It is a choice between accepting and evolving around these changes, or resisting and being left behind from all the positive contributions that a business can get from the changes that are occurring.
Thus, I value all the constructive input from the people I will be dealing with, whether clients or subcontractors - which can enrich my approach and my perspective in how to do deliver my services considering all these diversities around.
Scheduling and Production Method
Jobbing Production would best fit the consulting business I will establish, since each client has a specific and different need at a certain time. This works best for contractual or per project jobs that my business will operate. Scheduling will also consider the complexity of the project/job and the deadline the clients require. Based on my experience, jobs can take a minimum of three working days to a few months, which will affect the pricing of the service/job/project.
If we are talking about branding, this work can be done in from two to four week's time from conceptualisation to printing of the marketing collaterals, depending on the scope of materials that need to be produced.
Once a project is done, we keep all the templates for future re-orders. These could somehow fall into a combination of batching and jobbing productions. Since we already have the templates, revisions or updates can be kept to a minimum and production can be maximised in a shorter period, with less amount of money to re-invest compared to the first job order. If changes were major, then the job would be considered as a new one altogether.
Estimation and Planning of Maintenance
The nature of my business would not really require a lot of maintenance estimation and planning. Most of the work that need to be done will be by the subcontractors who own their equipments and machineries (if applicable). Major equipments we all need to maintain would be our laptops or desktops and the machineries of the printers I would be utilising.
Having said this, it must be including in the contract that each subcontractor is liable in the maintenance of their equipments to avoid failure costs to due equipment breakdown, computer crashes, software and file corruption or accidental file deletion - all these would result in project delays. It would also be required for everyone to keep communication lines open, by landline, cell phones, internet or courier. Any failure on these aspects will also be unacceptable since these also cause delays and the consequences could lead to potential lost of earnings and ill reputation from non-delivery of services when expected.
The above is the reason for working with at least three graphic designers and printers, to start with. It will enable me to have back-ups when there is a breakdown in the production somewhere or with someone.
MANAGE MERCHANDISING
merchandising requirements
Since my business is about providing services for businesses, there will be no need for storage options except for filing the master CDs and other materials of completed work for clients. This will enable us to easily revise, alter and update any changes required. General supply system will revolve in fulfilling job orders and assigning contractors for each of them. Delivery to clients will be within the agreed required period.
Coordination, management, presentation and delivery of completed work will be done by myself. My consulting business would start to offer services in Marketing covering (range of services):
Consultation
Conceptualization/Ideation - Think Tank
Corporate Identity - Jingles, Slogans, etc.
Graphic, Multimedia and Web Design
Other Marketing tools
Market Research
Marketing Plan/Strategy
Technical Writing/Content Management
Press releases
Marketing Staff Training
Loyalty and Incentive Programs
SAMPLE JOBS:
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I will also offer IT, Legal, Accounting and Administration services further down the line, depending on client requirements. This would initially cover:
Information Technology
Consultancy
Web Development
Database Development
Windows Development
Project Management
Legal
Company Set-up
Immigration
Contract Drafting and Documents Review
Representation with Government Entities & Judicial Bodies
Render Opinions on Legal Matters
Assist Management and/or Employees in Labor Disputes
Office Support and Administration
Correspondence
Travel Arrangements
Schedule Management
Concierge
Administration
selection of suppliers
I have previously mentioned that I will start with at least three graphic designers, three programmers and possible two junior marketing consultants. This will make managing the business easier in the beginning. Three is a good number to give me options and guarantee that there will be at least one available contractor per project at given time. Having only one is very risky and limiting, if there would be instances where the contractor gets sick or has some emergencies that could delay the project's delivery date.
The same will apply to the other contractors in IT, Administration, Legal and Accounting. I will start with three of each. I will also need to find three reputable and reliable printers for the marketing collaterals. I need to make sure that rates will be great value for money, in order to have a profitable business that speaks of quality.
Once the business takes off properly and clientele grows, I will add more contractors until I have established about ten contractors. This will enable me to nurture strategic alliances and guarantee supplies and completed works for my clients.
monitoring merchandise requirements, planning of delivery TIMES AND merchandise movements
Marketing collaterals such brochures, business cards and other printed materials would require a minimum amount for printing starting from 250 pieces. Initial jobs would require face-to-face coordination until everything has been agreed and approved. Each client will be given access to online services by registering. They will be able to access the list of completed jobs and will be able to re-order online. Delivery time required will also be placed so clients can estimate when they need to re-order in advance to fulfill their own deadlines. I will do my best to automate as much of the services accessible online.
Tracking the development of orders, including its delivery will be implemented. This way, clients will feel confident about doing business with us as they can monitor the progress of the jobs we are doing for them.
Communication will be open 24 hours a day. They can email us at anytime and we shall strive to reply ASAP. We shall also place FAQ, so clients can have instant answers to queries, if and when applicable. Although communication lines are open 24 hours a day, business operations will still be from 830am to 5pm.
inventory management and physical stock takes
One the advantage of a consulting business that there will be no exposure to stock shrinkage. However, as each job will be guaranteed, the effect of this could be felt through:
mistakes like incorrect quantities ordered (i.e. overprinting);
delays in delivery, which could affect collection of payment or NON-PAYMENT from job cancellation;
returned jobs from printing mistakes (which should actually be guaranteed by the supplier-printer).
If the monitoring system is successfully implemented, all of the above (mistakes, delays and returned jobs) would be minimised, as client can check jobs as it progresses. Once the job is on the online system, it will mean that clients have approved it before it is sent to the printer. Since the nature of the business is consulting, there is no risk in stocking products that might be slow moving as every job presents a solution to what clients require.
