Principia Consulting

Strategy Consulting for Companies
in Materials-Related Industries

Business Planning

An effective business plan is the strategic roadmap for growth.

Developing, updating and refining business plans is an annual ritual for most businesses, particularly for business units within large companies. Principia Partners provides assistance to start-ups and small to mid-sized companies that do not have an established business plan process. We can also support updates to existing business plans.

Whether developing a business plan to attract investors or to guide day-to-day operations, we will work closely with you to create the detailed tactical and financial plans necessary for the operation of a business.

Effective business plans include an executive overview, detailed discussions of the product or service of the business (including the all-important value proposition), the market size and dynamics, competitors and competitive positioning, the management team, and the operations of the business.

Financial projections for the business are equally important, including a profit and loss statement, a cash flow statement, and balance sheet for the enterprise. These are developed along with a narrative discussion of key milestones and detailed monthly budgets. Developing these components of the plan entails many Principia services including market analysis, competitive strategy, and manufacturing cost analysis.

Creating this plan is the first step toward working on your business instead of working in your business.

CASE STUDIES

On the Road Again

Sizing Up the Prospects

New Leaf Turned

Brighter Idea Shines

Web-Based Success

Business Planning:
Helping Steer a Motor Coach Company in the Right Direction

Challenge:
A converter of luxury motor coaches required a business plan to assist in financing expansion plans in the market.

Principia developed a comprehensive business plan including analysis of operations, competitive positioning, sales and marketing plans, and pro forma financial projections. The plan was based on extensive market research with a broad range of industry participants, including competitive motor coach producers, distributor/dealers, trade associations, and coach buyers.

The Principia plan offered several strategy options, including maintaining the status quo, expanding into new product lines, and integrating downstream into the distributor/service role.

Result:
The company invested in expanding the product line, and secured financing for their expansion. The new product line was introduced to dealers at a major industry trade show.

Business Planning:
Develop Business Plan for Entry to New Building Products Category

Challenge:
A UK-based producer of building products required a full operating and business plan to enter and serve a new product category in Europe. The company desired to also use the plan to justify any needed investment to develop the business with company investors.

Principia worked closely with the company to define the market need to be served, the size of the market and its growth prospects, the competitive landscape, and the requirements to serve the channels and end customers. The program culminated in the preparation of a full operating plan, including pro forma financials for a 5-year forecast period.

Result:
The company secured the required financing for their expansion and successfully rolled out the new product line.

Business Planning:
Planning for Ownership Transition of Test Equipment Maker

Challenge:
A producer of specialized electronic test equipment operated for years without a business plan. With the founder retiring, the family-owned business needed to plan for the transition of ownership.

Principia worked closely with the entire management team to define the function of each department, establish a sales budget by product line, set an operating budget for all departments, and formalize a business plan.

Principia provided on-going management support, including managing sales and engineering functions during the engagement. Principia recruited and hired managers for the sales and engineering departments, and helped restructure the sales rep network.

Result:
For the first time in its history the company had clear objectives for each department and a system of accountability. The company reduced rework, shortened the production cycle for its equipment, and increased sales due to the revised rep network.

Business Planning:
A Promising Optical Display Start-up Needs a Plan

Challenge:
A small start-up company developed technology to produce high-resolution flat-panel displays and required a plan to commercialize the technology. Principia Partners worked closely with the company to define the market and identify the manufacturing processes, resources, and materials required to make the product.

Principia developed sales projections by application and channel, defined the sales and marketing resources required to serve the market, and all operational resources required for production. The Firm consolidated all its analysis into a formal business plan for use by the start-up company.

Result:
The Client used the business plan to secure $23 million in venture capital and launched the business. The company has refined the technology and is scaling up for full-scale manufacturing.

Business Planning:
Develop an e-Business Plan for Sample Fulfilment Company

Challenge:
A web-based information provider sought new services to deliver to the users of its site. The company served the chemicals and plastics industries, providing a wide array of information on products, suppliers, and industry news.

Principia helped identify and plan new services. The team identified a need for easy cross reference of various suppliers' products and for comparing technical information for the wide range of products offered by global suppliers.

Further, end users often sought product samples. Principia evaluated this opportunity and developed a business plan to pursue it, including strategic options for market entry. Principia recommended partnering with one of they established on-line product literature suppliers, and providing the sample fulfillment function through the combined company.

Result:
The company formed a joint venture with one of the prospective partners identified by Principia, and launched the business with two chemical companies as the first customers.