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Copy of ECO 561 Week 4 Business Proposal
Transcript of Copy of ECO 561 Week 4 Business Proposal
I believe that Wipfli is in a unique position to enter and capture the market with a useful and profitable product.
I further believe this will have a complimentary effect regarding other Wipfli services. How will you increase product differentiation? Budget and actual integration for:
Tax preparation work papers and forms.
Loan/refinancing analysis and application.
FAFSA and other financial preparation and reporting.
Customer service / help desk.
Access to professional consulting as needed.
User groups, feedback surveys, and examples of successful use.
Online access options. Barriers to Entry Economies of scale and qualified personnel.
Difficulty and cost of product development, maintenance, and upgrades.
Networking the high quality Wipfli brand through 30,000 current clients.
Copywrites to the programs.
Product liabilities and legal requirements.
Interfacing with other Wipfil services and related discounts. Small Business Projections Small Business Projections Individual Projections Individual Projections Information Needed to Maximize Profit Product market availability and pricing.
Development timeline and costs.
Labor requirements and costs.
Maintenance and upgrade costs.
Market structure. Elasticity of Demand
and Market Structure The market has not been sufficiently penetrated.
Demand is very elastic and determined not only on price, but ease of use and results.
I believe Wipfli can enter with a degree of monopoly if the product is excellent, low-cost, and saves the user more than it costs (> utils).
Wipfli can take advantage of that position to improve its product, reputation, and outperform others on price and utility.
Competitors exist, but they are on the high end and not practical for individuals or small businesses. Introduction (continued) PROPOSAL:
Use this team of experts and network to launch a new budget template product to individuals and small businesses. Business Proposal to Wipfli
Personal and Business
Budget Development Templates
Arthur Karl Pustina
September 4, 2012
Instructor: Mary P. Schmitt, MBA Other ways to minimize costs. Use the right mix of low cost and high cost employees to set up the data bases and formats designed by the financial and accounting experts.
Outsource areas such as distribution, online access, and payment processing to entities that have quality low-cost processes in place.
Ensure maximum productivity of resources.
Partner with firms currently providing budgeting software for small businesses beyond a specific size metric (e.g. Budget Maestro, HostAnalytics, and smartsheet).
Improved efficiency in tax planning, tax preparation, operations, financial services Mix of pricing and non-pricing strategies. The initial Wipfli product and pricing will focus on basic functionality and ease of use.
Sell as a novel new product that will help all identify spending, adjust as appropriate, and plan for the future.
The strategy is to market a high quality low-cost product to get the Wipfli name and product to many users.
Pricing will vary by product functionality and market.
The Wipfli product will initially target less sophisticated users than those of Budget Maestro, HostAnalytics, and smartsheet.
The product will facilitate easy data entry allowing nearly anyone to follow a simple template to complete a budget. Using the concepts of marginal cost and marginal revenue to maximize profit. Marginal Cost: the additional cost of producing one more unit of output.
Marginal Revenue: the change in total revenue or extra revenue from selling one more unit of output.
MR=MC profit maximizing guide: In the short run, a firm (Wipfli) will maximize profit or minimize loss by producing the output at which MR=MC.
Total revenue exceeding total costs is a component of this go / no go decision. Determining the profit-maximizing quantity At this point there is scarce information to accurately determine the profit-maximizing quantity, but preliminary assumptions and projections have been made.
It can be noted that:
There are upfront development costs, ongoing maintenance and upgrade costs, but the variable costs are relatively low after launch.
Given the nature of the software some concepts such the law of diminishing returns does not impact production as much as other industries (i.e. the software is available online or on CD’s).
Initially, this appears to be an open-ended market with great profit potential. Revenue increases will come from: Initial main focus: Sale of Budget Template Products to Individuals and Small Businesses.
117,500 U.S. Households.
27,500,000 U.S. Small Businesses
Future Potential: Increased clientele using Wipfli audit, operations, financial, and other consulting services and India Market. Introduction Wipfli: A multi-discipline professional services firm.
138 partners , 1000+ associates, 20 US offices, 2 India offices
Solid reputation as industry experts and trusted business advisor to more than 30,000 clients of various sizes including:
Manufacturing - Construction - Contractors and developers
Real Estate - Health Care - Financial institutions
Insurance - Nonprofit - Units of Government
Dealerships - Individuals.
A consistent, cohesive, and dedicated team of service professionals and industry-focused experts who draw from a wide range of collective knowledge and experience.