Human Capital Maximizers
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Human Capital Maximizers is a start-up company just beginning operations. Marketing efforts will be critical to ensure success and profitability. HCM offers a wide range of HR consultancy services. The basic market need is a HR firm to offer in-house like services with flexible compensation structures taking into account the fact that many start-ups are cash poor, yet are in the need of professional HR services.
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HCM possess reliable information regarding the market and common attributes of the sought after customers. HCM will leverage this information to better understand who will be served, their specific needs, and how HCM can better communicate with them.
|Emerging tech companies||10%||345||380||418||460||506||10.05%|
|Emerging non-tech companies||9%||225||245||267||291||317||8.95%|
HCM is providing its customers with a wide selection of HR consultancy from a seasoned professional. The market need is professional HR services for start-up companies with flexible payment options, recognizing the precarious nature of a start-up. HCM seeks to fulfill the following benefits that are important to their customers:
The market trend in professional services, particularly HR is to outsource the services. The advantage of outsourcing is the reduction in the need for upfront capital, a scarce resource. Additionally, outsourcing services allows a smaller company to enjoy the same level of service that at one time was only available to larger companies. The outsourced service industry effectively allows smaller companies to more easily compete with larger companies that have a larger resource base.
The HR consultancy industry is a $900 million dollar industry that is growing at 12% a year. Within the last three years the industry has exploded, fueled primarily by the demand created by start-up companies who are in need of HR services. As their size scales rapidly, they do not have the capital for an in-house staff.
The following SWOT analysis captures key strengths and weaknesses within the company, and describes the opportunities and threats facing HCM.
The buying patterns for the industry range from company to company. Larger companies will typically go with the larger firms because of name recognition. Smaller companies will go with whom they know, or can afford.
Human Capital Maximizers provides human resource consulting to emerging companies in the Portland/Vancouver market. Human Capital Maximizers will charge a below-market rate and take stock options in the company. Human Capital Maximizers will provide consulting for the following service areas:
The pricing structure will either be an hourly rate or a per project fee. Theses options will be settled in negotiations with the client. In general, Human Capital Maximizers is willing to be as flexible as possible. After the rate has been established, discussions regarding the cash/equity mix can be discussed.
Human Capital Maximizers is still in the speculative stage as a HR consultancy. Its critical issues are to continue to take a modest fiscal approach, and maintain a sufficient cash balance, not taking too much equity in companies so if all of the companies HCM has equity in tank, HCM themselves is not sunk.
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