8+ SAMPLE HR Consulting Business Plan

What Is an HR Consulting Business Plan?

An HR consulting business plan is a document that contains an outline detailing the HR consulting business. The business plan provides a snapshot of the HR consulting business where it stands at the present while laying out the growth and development of the firm through a five-year plan. It also explains the goal statement of the business and the corresponding business strategies to achieve them. The HR consulting plan also details market research analysis to support the business plan. If management is looking to expand their business or a person wishes to start their HR consulting business, there must be a clear and comprehensive business plan. The document helps to raise funds and plan out the development of the HR consulting firm to increase the chances of success in the future. The HR consulting plan serves as an active document that management needs to update annually with the growth and changes that the business goes through. As such, the HR consulting business plan contains necessary procedures and information that contributes to the success of the business.

According to the information from IBISWorld regarding the HR consulting industry in the United States, the market size of the HR consulting industry by revenue amounts to 24.6 billion US dollars in 2022. Meanwhile, the market size of the overall HR consulting industry has a projection rate of 2.6 percent in 2022.

Components of an HR Consulting Business Plan

Whether a person plans to start their HR consulting business or expand their current firm, there must be a comprehensive and plausible plan to implement it. The contents and length of an HR consulting business plan vary depending on the size of the company. However, some elements must always be present in an HR consulting business plan to ensure the success of a business. The section below details the necessary components of an HR consulting business plan with their definitions for better understanding.

Executive summary: The executive summary provides a brief overview of the business plan. The executive summary is the last portion of the business plan written to provide a clear summarization of all its parts to highlight the most vital information of each one. The principal goal of the executive summary is to engage and convince the reader. It must also contain a clear description of the type, nature, and status of the HR consulting business. There must also be an overview of each subsequent section of the plan. The executive summary must provide a summary of the HR consulting industry, mention direct competitors, definite the target market, indicate a glimpse of the marketing plan, list the key personnel of the team, and include a preview of the financial plan.Company analysis: The company analysis section states the type of HR consulting business. There are different facets of human resources management that a firm focuses on, including human capital strategy, compensation and benefits, talent management, and professional development. The human capital strategy focuses on strategic planning that involves formulating corporate diversity, culture, and organizational design. Compensation and benefits deal with all aspects of employee compensation, including basic pay and statutory benefits, pension plans, and retirement pay. Talent management, on the other hand, focuses on the recruitment, acquisition, and retention of personnel, including skills improvement and training programs. Meanwhile, professional development provides services that focus on leadership coaching and learning management systems. Aside from the nature of the consulting business, the company analysis section must also provide background information on the business, including the starting date of operations, a list of achievements and milestones, and the legal structure of the firm.Industry analysis: The section must explain and describe the HR consulting industry. Obtaining knowledge about the industry helps the company to understand how the market works. The business also improves its overall strategy by having accurate information from market and industry trends. Aside from that, the section tells the readers that the business is an expert in its industry. It must indicate the revenue, competitors, key suppliers, growth forecasts, and the market size of the industry.Customer analysis: The customer analysis indicates the target audience or the market the business plans to serve. There are different segments that the HR consulting firm can cater to, ranging from financial services, healthcare institutions, manufacturing companies, and government agencies, and these customer groups affect the type of business operations. When creating customer profiles, break them down into demographics and psychographic profiles. Demographics cover basic information, including age groups, gender, location, and income levels. Meanwhile, psychographic profiles determine the wants and needs of the target market.Competitive analysis: The competitive analysis section lists and identifies the competitor markets within the industry, focusing on direct competitors. Direct competitors are HR consulting businesses, while indirect competitors are the other options that markets go to for generalized management consultants or internal human resources teams. The section must state the names of direct competitors, especially the ones within proximity. For each identified competitor, indicate a brief description of their agency while documenting their strengths and weaknesses. It is necessary to find valuable information about these companies, including the type of customers they service, specializations, and price lists. The last portion of the competitive analysis section must focus on the competitive advantage of the proposed company. Specify the services it offers, including virtual and customer services, thinking of the possible ways it can outperform its competitors.Marketing plan: The marketing plan section must focus on the four Ps of marketing, including the price, product, place, and promotion. The price list indicates the amount the company charges its customers and its comparison to competitors. The product section details the specific products or services the company offers its customers, expanding the nature of the business from the company profile and analysis section. The place specifies the location of the HR consulting business. Indicate the address of the business and mention how it impacts its success. Specify if the business operates through a physical office or most of the interaction happens online. The promotion section must document how the consulting company plans to attract customers to avail of offered services and products. There are various promotional and advertising methods a company can use, including local papers and magazines, company websites, billboards, company flyers, television and radio marketing, and social media marketing.Operations plan: The operations plan section identifies the procedures and techniques that the consulting business uses to achieve its short-term and long-term goals and objectives. Indicate the daily tasks and activities to reach short-term objectives, including marketing, consultation schedules, analytical preparedness, and recommendation development and presentation. The long-term goals refer to the milestones the company aims to achieve. Management team: There must be a strong management team to ensure the success of the HR consulting business. Emphasize the key players of the organization, expounding on their backgrounds, skills, and experiences to prove their abilities to make the company successful. The management team must have significant knowledge in handling HR consulting activities. If the team is lacking, consider the creation of an advisory board. The advisory board consists of individuals that provide expert opinions and suggestions, serving as a mentor to the business. Financial plan: The financial plan section includes a five-year financial plan that details quarterly and monthly statements for the first year and annual statements thereafter. The statements include income statements, balance sheets, and cash flow statements. Income statements or profit and loss statements show company revenues and expenses to show if a company profits. Balance sheets document the assets and liabilities of the consulting business. The balance sheet must only list the information that shows relevance to the company in its simplest form. Cash flow statements determine the initial amount the consulting business requires to start or grow the company, making sure it does not result in bankruptcy. When developing the financial plan, cover costs like office construction, vehicle leases, office supplies, employee payrolls, business insurances, taxes, permits, and legal fees.Appendix: The appendix section contains attachments of significant documents to support the financial projections of the consulting business, making it more compelling.

How To Start an HR Consulting Business

Starting a business is always a difficult task to begin. However, with the right guidance from well-informed individuals, you can establish and make an organization grow and develop into a success. The section below contains a helpful guide to help you establish and begin the journey of an HR consulting business.

  • 1. Determine the Preferred Style of Business

    Before starting the business, you must first establish what you want to accomplish and how you are going to accomplish it. Most of the time, people tackle the field of human resources for the wrong reasons. Many HR practitioners and professionals commit themselves to care about other people, resolving issues to preserve relationships, and exemplifying positive character traits. Make sure to focus and care about people over policies and procedures, focus on present realities, understand the businesses you support, simplify things, and focus on what matters most to drive the business forward.

  • 2. Create an HR Consulting Business Plan

    Develop a plan that outlines significant information about the consulting business. A clear plan sets to establish the business by ensuring that each essential component undergoes consideration and effective development. The business plan for an HR consulting firm considers various facets of human resources management, including the area of specialization, target market, underlying costs, and the number of employees to join the company. Utilize a digital platform when writing the business plan enabling you to share the plan easily, especially when meeting with shareholders, clients, and investors.

  • 3. Plan the Possible Cash Flow Statement

    Consulting, in general, involves lucrative work. Setting up your very own HR consulting business, you have a wide range of recurring costs and expenses. From the day the firm starts its operations, prospecting for clients, pitching services, and marketing projects will cause you to spend on resources. Cash flow statements allow you to monitor spending that helps you to save money, line up three to six months’ worth of work, entry-level services for quick turnaround, and cash invoicing.

  • 4. Start Building Connections in the Industry

    Knowing that income will come at a later time, it is best to establish a referral network before launching the consulting business. Create a referral list, including family, friends, college classmates, former colleagues, clients, and suppliers. Get in touch with multiple people and reconnect with them, sharing your plans for the agency and asking them for help or support.

  • 5. Develop a Sales and Marketing Plan for the Startup

    There are different channels you can utilize to market or advertise the business. You can start with using SEO marketing, content marketing, publicity or PR events, social media marketing advertisements, offline advertising, viral marketing, business partnerships, referral programs and affiliations, trade shows, offline events, and community building. Choose two to three different methods to advertise your business, with one providing immediate results and the other long-term.

  • 6. Begin To Build Business Presence Online

    Create a social media presence by starting with business-focused social media platforms, showcasing the expertise and services the business provides. Starting a company, a newsletter email mailing list, and an industry blog to build contacts, develop future business content, selling advertising spaces for traffic is advantageous for startup businesses.

FAQs

How do you become an HR consultant?

When planning a career path as an HR consultant, assess your motivations, layout the groundwork, build a strong client base, carve a niche, and develop your online presence. Most importantly, find a reliable and knowledgeable mentor to guide your journey.

How much do you charge for HR consultations?

According to Indeed, human resource consultants have a salary pay of 36.38 US dollars per hour.

What does an HR consulting company do?

HR consulting companies and HR consultants create employment programs and help the HR team of a company to execute job plans. They are also responsible for conducting research and survey plans to identify organizational issues, provide insights to handle employees and management, assess compliance with laws and regulations, and establish efficient human resource techniques and practices.

Starting a new company or business proves to be difficult without the appropriate knowledge and resources, and it also applies to starting an HR consulting business. Before establishing the business or setting up the business, setting up plans on how to operate and how to reach goals must be the first step. Creating business plans guarantees that the individual gains profit instead of suffering from losses, while keeping their clients happy. Develop an HR consulting business plan for your startup by downloading from 8+ SAMPLE HR Consulting Business Plan in PDF, only from Sample.net.