This Human Resources Consulting Firm is located in
This Human Resources Consulting Firm has expertise in a wide range of HR
specialties. The target market for this firm will be Government and Federal
Contractors located in 49 states excluding Staten Island, NY . This Human Resources Consulting
Firm will offer their market Human Resources Outsourcing services as well as
Human Resources Consulting. California
The objective is to meet key milestones within the first three years.
· Ensure that the business is registered and marketed as a SDVOSB and a MWBE.
· The first 6 months keep costs down by building the business from a home office.
· Within the first 6-12 months we will be hiring on 2 staff members to keep up with the demands and be able to service more clients.
. We strive to provide a high level of Human Resources Business Partner functions that will provide quality and help our clients meet their business goals.
Registering the business as SDVOSB and a MWBE will be one of the keys to success since Federal and Government contractors must reserve 3-5 percent of their outsourcing to these companies. Many government organizations find it sometimes challenging to find SDVOSB so this will be an advantage.
The United States Government sets aside contract benefits for companies considered 'Service- Human Resources -Owned Small Business (SDVOSB.) The most notable of these contracts is the "VETS-GWAC" is the result of Executive Order 13360 that is designed to strengthen federal contracting opportunities for SDVO firms.
MWBE means Minority and Women Owned Enterprise is a business that has a specific ownership composition of minimally 51%. The minority and women owned business definitions can be found here.
Certification is a review process designed to ensure that a small business is actually owned, controlled, and operated by the applicants. Most certifications are granted for Minority or Women owned businesses, Small Disadvantaged Businesses, and Underutilized businesses. Certification agencies implement the processes for government and private sector entities and ensure that only firms that meet the eligibility criteria of the individual programs are properly certified.
Working with mentors to assist me with building the businesses properly will be another key to success. Having people who understand how to market and grow a small business can help me to eliminate some of the learning curves.
This Human Resources Consulting Firm will focus on Human Resources operations for Federal/Government Contractors. Working for the federal government is very complexed and usually the Human Resources Department and its responsibilities are foreign to many leaders. The Federal Government as well as Government Contractors find it challenging to manage personnel, understand compliance issues, and train and develop their staff.
Many Government Contractors and Federal agencies must work with Service Disabled Veteran-Owned Small Business (SDVOSB) as well as Women and Minority Owned Businesses (MWBE) in order to be compliant. Between 3%- 5% of the governments purchasing contracts must go to a SDVOSB business and MWBE business.
This HR Consulting Firm will be a newly established business 100% owned by Tracie Davis who is an Army Disabled Veteran and a woman. This organization will be registered as an LLC. For Federal Government Consulting a DUNS number will be required. Registration as a SDVOSB and MWBE must also be completed.
Within the first 6 months of the launch of the business operations will be conducted in the Home Office located in
As business begins to grow the location will relocate to the Staten Island, NY
at a WeWorks location on Wall Street. This location will be used once
additional staff is acquired. New York, NY
This HR Consulting Firm will not be client facing. Since the HR Consulting team members will be visiting client sites or working in-house on deliverables in-house very minimal will be needed for our interior. Our interior will be a small office that can seat a maximum of 10 employees. The environment will be open-concept which will allow the team members to collaborate. If a client meeting happens to be in our office, we will have a board room available to conduct all meetings.
Hours of operation will be from 8:00am to 6:00pm EST. Off hours may be offered to clients who are unable to meet during traditional work hours.
My services will be offered to Federal and Government contractors. My services will be unique because there is a small amount of Human Resources Consulting that are in the government space. Many government contractors who are building their business and just received a government contract are struggling to be compliant. Many companies have an HR person who doesn’t have the background in the government space or don’t have the time in the day to handle all aspects of HR. The Human Resources function encompasses a wide variety of duties. The HR Representative struggles with trying to handle them all.
The services that I will provide will be unique because some of the paperwork and training that will be provided will be geared toward the government space. After doing research there are very little HR agencies in the government space that offers assistance with filing contracting documents related to HR. There are even less companies that offer training and development that are required for government contractors to have.
My background working for the Federal agencies as well as government contractors will allow me to engage clients since there are few HR firms that understand government contracting. Also, since my company will be registered as a SDVOSB and MWBE many of the companies will be more inclined to work with my company because it would be a requirement.
Federal and Government Contractors will the target market for several reasons:
1. They are in need of HR services as they are growing rapidly.
2. They often do not have a large enough in-house solution as they are increasing in size.
3. Capital is scarce for these companies and it will be more affordable to outsource their HR functions instead of having an in-house HR Department.
4. Many of the companies are growing rapidly and are struggling to align their HR department strategically to the business goals.
5. Federal and Government contractors have a requirement to save 3-5% of their business outsourcing to SDVOSB and MWBE owned organizations.
Not sure what to place here
There are a few HR Firms in the Federal and Government Consulting Space.
· Cassody Human Resources Consulting Firm- They provide Recruiting, Training, and C-level services. They are located in
They are a SDVOSB and Women and Minority (SWaM) qualified company. They have
the CVB and VOSB Certification for their business. Their business functions
support any Human Resources Department but they don’t have any specific
services that deal with contractor regulations and HR requirements. Virginia
· FosterThomas- Is a federal government and contractor organization. They focus on HR compliance and understand contracting legal requirements. They are not a SDVOSB or a MWBE. They also take care of non-government clients.
· LMI.org- Offers HR Consulting services and they offer a General Services Administration Schedule (GSA). They are located in VA. They offer IT Services, Engineering Services, and Environmental Services.
Many of my competitors are located in MD, DC, VA, and CA area. A few of the agencies focuses on all 49 states. The CA based companies only focus on CA since they laws are unique to the state. Many of the companies offer HR Consulting that can be interchangeable from public to private sectors but very little offer government specific services.
Pricing will be handled in 3 different ways.
1. Hourly rate will be provided to some services.
2. Fees based on projects will be provided to the clients.
3. Daily rates will be provided depending on the service obtained.
Retainers will be requested from clients.
Advertising and Promotion
Since this is a business to business services as well as government and federal contracting advertising and promotions will be handled differently.
· The Website will need to be strong and represent that this is a disabled veteran owned small business as well as a women and minority owned business.
· Registration on the Central Contractors will be needed in order for companies to be able to search for my firm.
· Pay per clicks will also be done with utilizing popular search words that people are actively looking for. Research will be done weekly to see what is the most used search term and gear my SEO towards that.
· Weekly blogs will be posted and focus on the topics that have been searched the most to keep people coming to my web-page.
· Advertising in HR Magazines, HR Forums, Small Business magazines, and podcasts is a great way to my business out there.
· Public speaking at events in order to generate word of mouth promotion.
· Working with a Business Development partner to research target clients and identify their needs. Assistance with introducing target clients will be done by a hired Business Development representative.
· HRmarketer will be used to keep track of competitors and what people are actively talking about in the message boards. This will allow me to participate in discussions to get my business name out there.
· Services will be advertised in local mailings and newsletters.
· I will be participating in local network groups to develop relationships with business owners.
Strategy and Implementation
As outlined business as a MWBE or a SDVOSB will be a strategy to help me begin conversation with my target market. I will also be working closely with a Business Development Specialist who will assist me in targeting decision makers.
Once a client is ready to move forward with services the implantation process will look similar to the below.
· Either a Skype or in person visit to meet with the client to get a clear understanding of their business and it’s needs.
· Detailed checklist will be used to analyze where their gaps are and how to recommend the best services to the clients.
· A proposal will be submitted to the client once services are decided upon.
· Services selected will be tailored to the client’s needs and presented electronically or in person.
· Follow-up meetings will be held to answer client questions about deliverables and advise on execution strategies.
· If services are for training and development of employees an onsite visit will be done. After training has been conducted certificates of completion will be provided. There will be a 3-month follow-up to analyze how well the employees are doing after training.
· Once the client base grows then an office located in NYC for $400 monthly will be obtained. Two Human Resources Consultants will be hired to take over
What It Takes to Become an HR Consultant
"As a consultant, you’ve got to be the IT department, the accounting department, and the sales and marketing department.
The Pros and Cons
The advantages of running a small consultancy, include independence, the freedom to pick and choose projects and clients, a home-based office, and control of your own schedule.
The solitary nature of the business can be equally intense. "Consulting is a lonely business that generally grants few opportunities to maintain the relationships and friendships that so often enrich the employment world,"
She identifies a few other things that can make the life of a consultant tough: "There are no sick days when you can’t deliver for a client. It can be tricky to stay on top of technology advances afforded to larger employers. And it can be discouraging to implement a solution and then walk away, wondering how it ended up."
HR professionals who aren’t financially equipped to handle the peaks and valleys of running a small business may have a difficult time. "How comfortable are you when you have to put on your collections hat and go after unpaid invoicesSkills
A May 2013 report by market research firm IbisWorld on HR consulting in the
concluded that the profession has low barriers to entry, low startup costs and
little regulation. The industry is also highly fragmented.
The largest HR consulting companies—including global giants such as Aon Hewitt, Mercer and Towers Watson—are responsible for less than 20 percent of the industry’s revenue, which IbisWorld projected would be roughly $26 billion in 2013.
The remaining 80 percent of U.S. HR consulting revenue is divided among tens of thousands of small regional and local firms
The variety of HR consulting services matches the range of work HR professionals do within organizations. Some consultancies offer generalist services to small companies that don’t possess the expertise to manage recruiting and hiring, benefits, performance management, training, and other HR basics, many of which have regulatory compliance requirements.
When defining the services they offer, HR consultants should be mindful that some clients will ask them to do work beyond their primary areas of expertise.
"It’s very easy to take on a new project because you like the client, the industry or even the money attached to the work,". But if that project is outside an HR consultant’s area of expertise, it can create headaches and siphon time away from work that is more fulfilling and more lucrative and that can be done more efficiently.
Those who have successfully built HR consultancies emphasize the high value of client referrals as a marketing tool.
According to the IbisWorld research, the average wage for an HR consultant, regardless of company size, was projected to be $81,913 in 2013, up from $79,016 in 2004. HR consultants interviewed for this article say their hourly fee—when they use one, and many argue against doing so—typically ranges from $90 to $225.
Consultants who operate as sole practitioners usually "have a terrible time pegging the value of their services to an hourly rate,", noting that they tend to "vastly undervalue" their offerings.
That’s why many HR consultants advise against using hourly rates exclusively—or at all in some cases. An hourly billing structure gives clients too much leeway to determine the scope of work.
That can be a problem when the HR consultant is better informed than the client about the amount of work that will be required to address the client’s problem. Biersteker uses a combination of monthly retainers for specified deliverables, project rates and hourly billing.
West says her company does very little hourly work, by design. Although her project rates and monthly retainers may include a rough estimate of work hours, the reports she generates for clients each month focus entirely on what work has been accomplished.