A business development firm is a business that advises businesses, nonprofits, and public-sector agencies in the following areas: organizational design, human resources, corporate strategy, information technology strategy, marketing and sales, finances, and logistics.
Business development firms carry out tasks and processes with the main aim of developing and implementing growth opportunities within and between organizations. It is a subset of the fields of business, commerce, and organizational theory.
Available data shows that there are 57 publicly traded BDCs, allowing ordinary investors a chance to purchase shares in the growth of middle-market America. The public BDCs have a total market cap of around US$30 billion.
Steps on How to Write a Business Development Business Plan
Table of Content
J.P Hogan© Business Development Company, Inc. is an American-based and licensed business development company. Our head office will be located in a standard office facility in the heart of New York City.
Our business-development specialists have skills and experiences that consist of a mixture of sales, finance, marketing, mergers and acquisitions, legal, strategic management, and proposal management or capture management. Jonathan P. Hogan is the founder and CEO of J.P Hogan© Business Development Company, Inc.
a. Our Services
- Develop business and marketing plans in coordination with the Managing Director to achieve revenue goals.
- Assist in the company’s branding and media communication activities such as press releases, advertisements, marketing collaterals, and website.
- Establish and achieve sales targets and promote various banking services for customers.
- Analyze current and past financial data, such as sales reports, and provide strategies to cut costs and increase revenue.
- Perform market research to identify new opportunities and engage with executives to establish strategies for pursuing those new opportunities.
- Create and improve proposals for our existing and new clients.
b. Nature of the Business
A business development company is meant to operate the business-to-business approach.
c. The Industry
J.P Hogan© Business Development Company, Inc. will operate in the management consulting industry.
d. Mission Statement
Our mission is to proffer ideas, initiatives, and activities that will help make a business better. This includes increasing revenue, growth in terms of business expansion, and increasing profitability by building strategic partnerships and making strategic business decisions.
e. Vision Statement
Our vision is to be known as the leading innovative business development solutions company that aims to optimize growth and expansion for businesses across different industries and countries.
f. Our Tagline (Slogan)
J.P Hogan© Business Development Company, Inc. – Your Result-Driven and Trusted Business Development Company!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
J.P Hogan© Business Development Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Executive Officer
- Company’s Lawyer/Secretary
- Business Development/Management Consultant
- Admin and HR Manager
- Marketing and Sales Executive
- Customer Service Executive/Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
- Jonathan P. Hogan (Owner and Chairman / Chief Executive Officer) 51 Percent Shares
- Peter Tyson (Board Member) 19 Percent Shares
- John McLee (Board Member) 10 Percent Shares
- Paul Nelson (Board Member) 10 Percent Shares
- Dora Williams (Board Member and Sectary) 10 Percent Shares.
- Effective and proven structures to help businesses grow within the shortest time frame
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Water-tight strategies on how to expand beyond the major markets
- Good returns on investment for our investors.
- Financial Constraints
- A new business that will be competing with well-established business development companies and management consulting firms
- Inability to retain our highly experienced and qualified employees longer than we want
- Every business wants to grow and expand hence an increase in demand for our services
- Good support structure for business development companies in the United States of America.
i. How Big is the Industry?
It is safe to say that the management consulting industry is massive. The industry rakes in a whooping sum of $223 billion annually.
ii. Is the Industry Growing or Declining?
The management consulting industry is growing rapidly and available data shows that the industry is projected to grow at 3.1 percent annual growth.
iii. What are the Future Trends in the Industry
New technologies, like machine learning/artificial intelligence, predictive behavioral analytics, and data-driven marketing, are what will determine the future trends in the management consulting industry that business development companies are a part of.
iv. Are There Existing Niches in the Industry?
No, there is no existing niche idea when it comes to business development companies.
v. Can You Sell a Franchise of your Business in the Future?
J.P Hogan© Business Development Company, Inc. plans to sell franchises in the nearest future and we will target to have a strong physical presence in key financial hubs (cities all across the world).
- The arrival of a new business development company within our market space
- Unfavorable government policy and regulations.
- Cyber security challenges
- Differences in management and culture are the biggest barriers to integrating business development companies’ startups into traditional companies
- Liability problems
- Continuously changing consumer demands especially as it relates to how they expect business development companies to serve them.
i. Who are the Major Competitors?
- Ares Capital Corporation
- Owl Rock Capital Corporation
- FS KKR Capital Corp II
- FS KKR Capital Corp
- Prospect Capital Corporation
- Golub Capital BDC
- Owl Rock Technology Finance Corp
- Goldman Sachs BDC
- New Mountain Finance Corporation
- Main Street Capital Corporation
- Hercules Capital
- Sixth Street Specialty Lending Inc.
- Apollo Investment Corporation
- Oaktree Specialty Lending Corporation
- Bain Capital Specialty Finance Inc.
- Business Development Corporation of America
- Owl Rock Capital Corporation II
- SLR Investment Corp
- BlackRock TCP Capital Corp
- Barings BDC.
ii. Is There a Franchise for Business Development Companies?
No, there is no franchise opportunity for business development companies.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Business Development Companies?
No, there are no county or state regulations or zoning laws for the business development business, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.
Please check with your zoning or planning department to find out what options are available to you.
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years old who have the finance to do business with us.
ii. Level of Education
We don’t have any restrictions on the level of education of those we are ready to work with as long as they have a functional business.
iii. Income Level
We look forward to working with businesses with an annual turnover of a minimum of $250,000.
There is no restriction when it comes to the ethnicity of the people we will work with.
There is no restriction when it comes to the language spoken by the people we will work with.
vi. Geographical Location
Anybody from any geographical location will be welcome to do business with our company.
J.P Hogan© Business Development Company, Inc. will not restrict any business owner from doing business with us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share our Events in Local Groups and Pages.
- Turn our Social Media Channels into a Resource
- Develop our Business Directory Profiles
- Build Relationships with players in the management consulting industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (coupon books, billboards), and referrals.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, J.P Hogan© Business Development Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each transaction. All our pricing strategies will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the management consulting industry and the finance and banking industry, and freelancers to help refer clients to us.
J.P Hogan© Business Development Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced.
b. Inventory Strategy
The fact that we will need the required office supplies per time means that J.P Hogan© Business Development Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that J.P Hogan© Business Development Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
d. Return Policy, Incentives, and Guarantees
At J.P Hogan© Business Development Company, Inc., we do not have a return policy but we will use our discretion when necessary (money-back guarantee with terms and conditions applied). This is because there are no federal laws that require a business consultant to refund money.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent and customer-tailored business development strategy and customer service to all our clients. We will work with effective CRM software to be able to achieve this.
Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting investors and strategic partners like banks et al that will enable the firm to boost its service offerings and support revenue growth.
a. What Happens During a Typical Day at a Business Development Company?
- The office is open for the day
- Documentation and other administrative works are conducted throughout the day
- Marketers go out in the field to market our services
- Business development consultants work with businesses (clients).
- The report for the day is written and submitted to the required authority
- The office is closed for the day.
b. Production Process
There is no production process when it comes to business development companies.
c. Service Procedure
Business development firms carry out tasks and processes to develop and implement growth opportunities within and between organizations.
d. The Supply Chain
J.P Hogan© Business Development Company, Inc. will rely on key players in all industries to refer business deals and clients to us.
e. Sources of Income
J.P Hogan© Business Development Company, Inc. will make money via debt financing (buying bonds and providing loans) to a company. The interest payments on these securities are collected by the BDC and passed onto shareholders purchasing part of the company or taking over (or counseling) the company’s management.
a. Amount Needed to Start your Business Development Company?
J.P Hogan© Business Development Company, Inc. would need an estimate of $250,000 to successfully set up our business development company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $100,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $80,000
- Start-up Inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $20,000
- Website: $800
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
J.P Hogan© Business Development Company, Inc. will not build a new facility for our company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Business Development Company?
- Server maintenance
- Transaction fee to third-party providers
- Utility bills (internet, phone bills, signage and sewage et al)
- Salaries of employees
e. What is the Average Salary of your Staff?
- Chief Executive Officer – $65,000 Per Year
- Company’s Lawyer / Secretary – $50,000 Per Year
- Business Development / Management Consultant – $48,000 Per Year
- Admin and HR Manager – $45,000 Per Year
- Marketing and Sales Executive – $42,000 Per Year
- Accountant – $40,000 Per Year
- Customer Service Executive / Front Desk Officer – $30,000 Per Year.
f. How Do You Get Funding to Start a Business Development Company?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for your Service?
At J.P Hogan© Business Development Company, Inc. our fee will be based on the size and type of business we are working with. Our fees will be anywhere from $3000 to $30,000 per month with hourly rates of $150-450.
b. Sales Forecast?
- First Fiscal Year (FY1): $450,000
- Second Fiscal Year (FY2): $650,000
- Third Fiscal Year (FY3): $1.0 million
c. Estimated Profit You Will Make a Year?
The ideal profit margin we hope to make at J.P Hogan© Business Development Company, Inc. will be between 15 and 30 percent.
d. Profit Margin of a Business Development Company
The average net profit margin for J.P Hogan© Business Development Company, Inc. is approximately 17%. The average net profit margin can be higher or lower depending on our additional service offerings and the number of our overhead expenses.
a. How do you intend to grow and expand?
J.P Hogan© Business Development Company, Inc. will grow our business development company by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why?
J.P Hogan© Business Development Company, Inc. plans to expand to Los Angeles – California, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.
The reason we intend to expand to these locations is that available statistics show that the cities listed above have the most thriving businesses in the United States.
The founder of J.P Hogan© Business Development Company, Inc. plans to exit the business via merger and acquisition. We have placed structures and processes in place that will help us achieve our plan of successfully merging with one of the leading players in the management consulting industry.