echandia and associates1

12/16/09EAC Best Opportunity to Provide

Cost Effective Alternatives1

Echandia and Associates

Carlos Echandia



Mission Statement

Echandia & Associates Consultant’s mission is simple and straightforward: To serve small and medium size business clients that are in need of technical, business strategy and implementation services that support value, growth and improve business processes, performance and profitability for our clients. EAC will focus on providing personal and specialized services to meet each client’s specific needs.



The Team

Echandia and Associates consulting is a sole proprietorship and the team will initially consist of Carlos Echandia.

Mr. Echandia has extensive experience in Business Operations Management in service and manufacturing.

A total focus on providing waste reduction methodologies and environmental performance in line for a healthier bottom line.



Market Summary

The target customer will be small and mid-sized manufacturing businesses in the Worcester county area that are generally dissatisfied with the revenue that the business is generating or is dissatisfied with the daily operational strategies of their business. – Manufacturing contributes 14% in the Worcester

County. – Established companies are the target market of this

firm.



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GDP by Metropolitan Area (Worcester)

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2007

Market Summary



Opportunities

Problems and opportunities:– Provide services to small and medium size business

clients that are in need of technical, business strategy and implementation services that support value, growth and improve business processes, performance and profitability.

– Established companies 3+ years old are typically in need of specialized services in one or two disciplines, e.g., operational planning or environmental strategy.

– EAC strategy is to prosper in the market niches that bigger consulting firms consider unprofitable to enter.



Business Concept

Consulting services are designed to increase clients’ operations effectiveness through reduced cost, improved customer service, enhanced quality of current product lines and services, eco-advantage and a more rapid introduction of new products and services.

One of the resources that consulting firms provide to client is expertise – in the form of knowledge, experience, special skills or creativity.



Business ConceptLean Manufacturing Traditional ManufacturingSimple and Visual Complex

Build to Demand Build to Forecast

Minimal Inventory Excessive Inventory

Focus on Non-Value Added Focus on Value Added Work

Minimum Lot Size Batch Processes

Minimal Lead Time Long Lead Time

Quality Through Process Quality Through Inspection

Value Stream Owners Departmental Supervision

Environmental Stewardship Government regulations



CompetitionThe business consulting industry is very fragmented.

Several large multi-national companies dominate the industry while many smaller, often more specialized firms, occupy their market niches.

Communicate the technical needs analysis in a non-technical way. In addition, we need to be able to follow through and execute on premises and provide accurate, industry specific, information that is useful to the client even before the deal is made.

Small business owner tends to favor the personal relationship that can develop with the smaller consulting firm.



Competition

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1 to 4 5 to 19 20 to 99 100 ormore

Number of Workers employed. March 2006

% Distribution of Employment and Establishment

Establishments

Employment



Goals & Objectives

Five-year goals– The short-term objective is to start this

company quickly and inexpensively, with a minimum of debt.

– The long-term objective is to grow the company into a stable and profitable entity.

– Maintain job costing that keeps margins above 70%.

– To provide an active and functional website.



Financial Plan

Several sources note that a Lean implementation and sustainability consulting business is easy to start, requires little up-front capital, and has the potential to be quite lucrative in today’s manufacturing world.

Will adopt a price matching strategy rather than entry pricing.

The hourly price of local consulting businesses ranges from as low as $50/hour to $125/hour.



Financial Plan

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START-UP



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Highlights

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Resource RequirementsTechnology requirements: An active and functional

website plus the use of social media networking websites to connect with potential customers.

Personnel requirements: No major changes in headcount is planned.

Resource requirements:– In keeping with the company philosophy of avoiding the

use of debt, the goal is to start-up as inexpensively as possible.

External requirements: LAN equipment and a printer.



Risks & Rewards

Risks– The company does not grow to be profitable.– The marketing and networking strategies fails.– The current economic does not grow.

Addressing risk– EAC will continue to monitor manufacturing

market trends in order to provide customers with the best cost effective alternatives.

– Focus on providing personal and specialized services to meet each client’s specific needs.



Key Issues Near term

– The short-term objective is to start this company quickly and inexpensively, with a minimum of debt.

– The keys to success for EAC is to thoroughly review and redesign existing business processes to measurably improve their effectiveness.

Long term– The long-term objective is to grow the company into a stable

and profitable entity. – If I cannot grow the company into a stable entity, the business

will dissolve, and I will turn my talents elsewhere. The need for a turnaround within the client company is necessary

for Echandia & Associates consulting expertise to become useful.



Echandia and Associates

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echandia and associates1

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