The Reason behind Financial Management Consulting
Changes have taken place in various organizations due to demand of the customers and the business as per the latest technology. The procedure of developing a new venture of business is considered as entrepreneurship (Armstrong, Kotler, Harker & Brennan, 2015). It is required for the business to establish the business or bring changes in the existing business for the purpose to make improvements in the business. it has been analyzed that the government of almost every country has become aware towards encouraging entrepreneur by providing them required resources for their business. The specific report emphasis upon a unique business of “Financial Management Consulting Service” which details are mentioned below:
It is necessary for knowing behind choosing this idea as new business and their role in making improvements in many businesses. It has been analyzed that there are various CEOs of the companies that have different thinking towards one issue; it defines the greatness of them at the big picture and disruptive thinking. Along with that, it has been found that less good with things such as profit margins, financing, reducing costs, cash flow and so on. However, it is not required for the small and medium businesses to have a full-time CFO but would do effectively to help financial consultants who can move into the role as required (Baker, 2016). The financial management is the valuable part for any kind of business to get growth in the competitive advantages
Usually, the function of finance has been considered as the transactional processing department that remains only to meet statutory compliance needs. It has been analyzed that an efficient finance function is hard to enable the success of the organization. Technology has changed rapidly and that is why the role of the finance function has widened (Barringer, 2012). Moreover, successful finance executives are linking with the C-Suite member and Board member to create and implement on longer-term strategy. This innovative idea would be helpful for the business to understand the importance of financial management in the growth of the business. In this business, expert of this innovative business will provide instant guidance to the management of the company to how to use a fund of the company. it would be more confidential in which contract will be signed so that the trust can be maintained between both parties. The business clients would be multinational companies and big companies that revenue growth is large and they need right guidance to handle the financial position of the company in an efficient way
Problems
The growth of the business is entirely dependent on the pre-planning in which the company should focus on the target market which helps to determine that for whom the company has made a strategy. The target market is considered as the set of buyers whose desires the business model objectives to fulfill. Consequently, the target market for the financial management consulting business would comprise multinational companies and big business whose revenues are huge. There are huge firms in Australia such as Wesfarmers, Woolworths, Telstra and Westpac Banking Group. The annual turnover of these companies is great as it is necessary for these companies to focus on the management of the revenues of the company (Agariya & Singh, 2011).
Increased profits
The main purpose of this innovative idea is to increase the profits of the business so that the company’s revenue rate can be increased or improved. It is required for MNC to develop an effective plan in which they should incorporate the correct guidance of investment (Daniel, Bogdan & Daniel, 2012).
Reduce risks
The major risk for the company is to invest in an incorrect investment plan and in an effective strategy to run their operation regarding financial management. This innovative idea would be helpful for the business to focus on those factors which could impact the entire business in the negative term (Tukker & Tischner, 2017).
An effective policy of investment
An effective policy of the investment is able to meet statutory requirements and be ready for the change of regulatory. This innovative idea would be helpful in engaging and collaborating with the wider organization to impact the decision-making process (Drucker, 2014). Along with that, it would be helpful in managing effective core processes of financial by the use of latest technology and automation.
Improve knowledge
The role of the knowledge regarding the financial matters of the company is huge. This innovative idea would be able to be responsible for an effective storage, capture, and evaluation of the organization’s data. The department of finance of the companies would be able to prepare informative reports for a number of management levels to help informed decision making.
Business model
The customers of the new business would be provided with two choices for the purpose to compensate the services of the business. The company has good customer relationships as it has focused on the reduced risks and increase profits. There are various key channels by which the company can promote its services. The value propositions of the company keep huge importance in the business. The key resources of the company are employees of the company that come under human resources and the financial resources. The business model has entails the cost structure and revenue streams as well. It is dependent on the customers to pay 100% advanced or they have an option to pay 50% initially as advanced fees and share around 5 or 10% of the profits made by the customer as per the guidance of the consultant. The new innovative business would maintain the record of profit or losses of the clients so that they can suggest right guidance to the client in the term of managing the financial condition of the company
Target Market
Organizational structure
|
Department |
Number of employees |
|
HR Department |
4 |
|
Consultants |
20 |
|
Team for sales and marketing |
15 |
|
Team for finance and Accounts |
4 |
|
Research Team |
4 |
|
Advertisement and Marketing |
2 |
Source of finance
The source of finance at the initial stage for the new business does not need a robust investment. The primary investment for the company is mentioned below:
|
Particulars |
Estimated Expenses |
|
The expenses of human resource management entailing the cost of recruitment and salaries of employees |
AUD 15000 |
|
Rent Expenses and infrastructure of office |
AUD 35000 |
|
Expenses for IT such as the latest software for handle the financial transaction |
AUD 30000 |
|
Cost sustained by the sales team |
AUD 3000 |
|
Advertisement and Customer relationship management |
AUD 20000 |
|
Overheads of office |
AUD 2500 |
|
Total |
AUD 105,500 |
Critical Success factors regarding the implementation of the idea
There are so many success factors regarding the execution of this innovative idea which would be helpful for the company to generate more revenues and growth in the competitive market (Burns, 2016). It is an entirely different idea which helps MNC and large business to handle their financial position with the right guidance. The success factors are elaborated below in the terms of the marketing mix:
Product
This innovative business would be able to provide day-to-day guidance regarding their financial crisis or issues within the business (Gelbmann & Hammerl, 2015). The clients would get research report on a daily basis. a research team of 4 employees would be able to identify the issues within the financial term of the particular company. The service type of the company is described below:
|
Service Type |
Service Description |
|
Fundamental Service |
On a daily basis consultancy + Research reports |
|
Advanced Service |
On a daily basis Consultancy + Research reports +Live service to provide instant information regarding financial issue + monthly training on currency concepts |
Place
The physical location of the company would be based out of Melbourne but the target of the company to the big MNCs and Big businesses across the country.
Price
The premium skimming strategy would be adopted by the company because it encompasses a pricing of a specific product or service higher at first so that the costs can be recovered in the business. It also gives the aim of making a premium positioning of the brand (Spann, Fischer & Tellis, 2014).
Promotion
Promotion of the business is vital for the purpose to reach out to the targeted customer segment. There are several promotional strategies which can be adopted by the business such as event marketing, tie-ups with associations, digital marketing, relationship marketing and advertisement of services on television’s finance news channels (Hickman & Silva, 2018).
Feasibility
Feasibility regarding a new idea is great as the company can attain high profit due to existing issues in many companies of financial. The company can focus on the large scale conferences will be arranged wherein various MNCs would be invited. The company has certain consultants who would be expert in guiding the companies regarding the financial implications. Every client would be chosen a dedicated advisor who would be able to keep the record of the client in an efficient way. The premium skimming strategy would be marked in the process of the company and after getting the attention of the customers towards the services, the prices of the services would be decreased in order to target lower income groups
Conclusion
From the above discussion, it can be concluded that starting a new business is a wide-ranging process. This report has emphasized a finance management business which is objective at giving guidance and consultancy to financial management of the big Companies in the context of cash flow, foreign currency exposure, reducing cost, and profit margins. It is required for the long term of the success of the business to recruit employees with a natural ability for analysis of currency. This report has been described as the success factors of the business in which the product, price, place, and promotion factors have been elaborated under this report.
References
Agariya, A. K., & Singh, D. (2011). What really defines relationship marketing? A review of definitions and general and sector-specific defining constructs. Journal of Relationship Marketing, 10(4), 203-237.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education. India.
Baker, M. J. (2016). What is marketing? In The Marketing Book (pp. 25-42). Routledge. United Kingdom.
Barringer, B. (2012). Entrepreneurship: Successfully Launching New Ventures, (2012). BELK.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Daniel, M., Bogdan, G., & Daniel, Z. (2012). The use of event marketing management strategies. Procedia-Social and Behavioral Sciences, 46, 5409-5413.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge. United Kingdom.
Gelbmann, U., & Hammerl, B. (2015). Integrative re-use systems as innovative business models for devising sustainable product–service-systems. Journal of Cleaner Production, 97, 50-60.
Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture, strategy, and change in the new age. Routledge.
Spann, M., Fischer, M., & Tellis, G. J. (2014). Skimming or penetration? Strategic dynamic pricing for new products. Marketing Science, 34(2), 235-249.
Tukker, A., & Tischner, U. (Eds.). (2017). New business for old Europe: product-service development, competitiveness and sustainability. Routledg
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