Mission Statement and Pricing Strategy for a Small Business Consulting Firm

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Mission Statement

We will connect our customers' business needs with the most effective and easy to use computer technology solutions.

Pricing Strategy

There will be three options to pick fromBuy cheap Mission Statement and Pricing Strategy for a Small Business Consulting Firm term paper

1) An hourly rate typically used during the beginning phase of an installation for gathering requirements and clearly defining deliverables for the complete implementation phase. We will do a preliminary review of general requirements and provide an estimate to the customer of how many hours it will take to complete the analysis or implementation. I am still collecting data on the hourly rates charged in the metropolitan Detroit area for this type of consulting.

) A fixed price contract typically used once the deliverables for the systems have been clearly defined and agreed upon.

) A retainer fee this approach could follow the implementation of an integrated business systems suite of applications which the owner wants to continue enhancing or monitoring. It could also cover a "production support" type service that would monitor daily, weekly, monthly operations and perform such things as backups and restores. The advantage of a monthly retainer fee or an annual retainer fee paid monthly is the benefit of a steady income as opposed to a fixed price contract for a one-time service.

To get the business started and to gain a better idea of the effort involved in the implementation of a suite of integrated applications we would set up two or three businesses for free. This would give us valuable experience, an opportunity to get the "kinks" out, references to put in our advertising, and the potential for positive recommendations from the owners we set up.

Price Elasticity

Because owners of businesses, both large and small, are very sensitive to costs, a percentage decrease in price could very well result in a greater percentage increase in demand for our services and conversely, a percentage increase in price could result in a greater percentage decrease in demand. Therefore, the price would be defined as "elastic." However, if we can convince our customers of the value of a trusting relationship, integrity of data, well-tested systems and seamless installations and operations, then a percentage higher price than our competitors may not result in a greater percentage decrease in demand for our services, thereby making our prices less elastic.

Other Possibilities for Income

While our business is establishing a reputation and generating more profits, we will be investigating the augmentation of our income by writing articles for our local newspaper or trade journals, working for a temp service that contracts consulting services with their own customer base, teaching a course at a local college, writing a book.

References

Riddle, J. (00) "How to Start a Consulting Business." Entrepreneur Media Inc. Irvine, California.

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