1. Your Long-Term Goals
HHM&WLC has two main long-term goals and sub goals. The long-term goals are to remain sustainable and competitive. The sub-goals are to drive revenue and growth both locally and internationally. Therefore, below is HHM&WLC has projected future:
1. Develop the brand
HHM&WLC would develop its brand and have a strong base of loyal customers who would also market HHM&WLC's services through the word of mouth and referral. A strong brand can be leveraged through brand strategies such as brand extension, and brand equity. The strong brand foundation would help in ensure brand success. HHM&WLC would produce its own weight loss products as well as nutritional supplements that can be sold to the customers based on the professional assessment of the client by HHM&WLC's specialists (Uetake & Yang, 2018). All these products would be sold under HHM&WLC's brand and will ride on the brand equity. Franchising as the brand grows is also another goal. Over the next five to ten years, HHM&WLC would have a branch in each state. The branches would be either franchises or HHM&WLC's line and all services would be consigned across all the branches and franchise
HHM&WLC also aims to drive sustainability through research and development, stakeholder reengagement to tailor their services and products to the client's needs. The other strategies that HHM&WLC would adopt include setting goals and commitment. These goals would include reducing risks, capitalizing on the opportunities, acquiring competitors, and innovation; HHM&WLC would also establish the systems and processes and ensure that they are aligned with the commands bottom-line (Uetake & Yang, 2018).
3. Drive revenue
HHM&WLC also aims to drive revenue from its services. For example, HHM&WLC aims to increase its revenue by 20% over the next five years and increase the revenue by 30% over the next ten years. The revenue is projected based on the pro-forma balance sheet, which is a conservative projection (Wang & Spinney, 2017).
4. Drive market share
HHM&WLC's growth would be organically driven by HHM&WLC's service quality. The five dimension of HHM&WLC's serviced quality include tangibles (Appearance of physical facilities, equipment, personnel, and empathy (Rathee, Rajain & Isha, 2016). HHM&WLC aims to own at least 5% of the market share in the state by the first three quarters and 10% of the market share by the fifth year and 30% of the state's market share by the end of the tenth year.
With the increase in the size of the market share, the demand for HHM&WLC's services would also increase. Therefore, HHM&WLC would increase its staff by 30% by the end of the first quarter to meet the increasing demand. As a learning organization, the complexities in the environment would me met though proactive stance, which involves flexibility in solving emerging, issues in the market, budgetary allocation for recruitment to meet the new demands (Wang & Spinney, 2017).
2. Future milestones and how they are measured
- The milestones that HHM&WLC aims to achieve include the following deliverables and dependencies.
- Milestone Percentage complete Timeline
- Complete HHM&WLC website and optimize the website for search engines 50% 5 months
- Leverage social media marketing and lead conversion 40% - 6 months
- Recruit and train additional staff members NIL 8 months
- Reach the 100 customer milestones NIL 1 year.
- Achieve the $100,000 profit and $190,000 revenue NIL 1 year.
- Achieve the 18 employee milestones- 10% 1 year 2 months
- Open a branch in upstate New York- NIL 1 year 5 months
3. The risks you may encounter
The following are the potential risks facing HHM&WLC
The capability risk include the risk that HHM&WLC would not be able to scale up its capability in a timely manner due to cash traps and other resources problems
HHM&WLC would raise additional funds for scaling-up depending on the prospects and forecasts. For example, HHM&WLC would acquire additional loans from friends and family or debt from the bank. Friends would province equity for a percentage of ownership shares and the bank will provide debt
The risk that HHM&WLC's services would not meet the demands or needs of the target markets or the performance standards, It is important to note that while HHM&WLC is just starting its operation, there are a lot of changes that HHM&WLC would make to its design, service structure and products offering HHM&WLC would adopt a flexible approach that would enable it to adapt and adjust its services based on the customer needs
The development risk is that risks that the services would not be completed in time, and within budget and standards
HHM&WLC would overcome this risk by ensuring that each phase of the projects is managed independently. By projectizing the business, each milestone, deliverables, and goals would be monitored to ensure that each of them is achieved within the deadline, budget, and specification. Each deliverable would be assigned to an individual who would be responsible for every goal (Taekman, 2017)
The economic risk is the risk that HHM&WLC's success is subject to specific economic factors The economic risk can only be managed by observing the trends in the market and leveraging the strengths to overcome the risk. The economic risk cannot be eliminated, but HHM&WLC can plan and allocate its resources properly to cover the costs of operations
Legislative and Policy Risk
The regulatory risks are the legislative and policy change risk that HHM&WLC is likely to face such as the tax, new regulatory requirement that would increase the cost of operations such as licensing, minimum wage and operating hours To manage the regulatory risk, HHM&WLC would have to meet the regulatory requirement because the entire regulatory requirement has costs attached to them.
Operational risk includes the risk that the costs of operation are higher than the budget. HHM&WLC would start making provisions for variances. HHM&WLC would set aside a lump sum of money for meeting the emerging costs arising from prices changes, regulatory requirements, and payroll. The provisions would cover these expenses but that will be accounted for (Taekman, 2017).
This is the risk that new technologies would emerge that would disrupt the operations of HHM&WLC or might be used by the competitors to gain a competitive edge over HHM&WLC The technology risk would be overcome by adopting the same technology. HHM&WLC will always engage in research and development to determine the next technology that would disrupt the industry and take a first mover advantage by acquiring the technology and adopting the technology first before competitors (Makris, 2015)
4. Exit options
HHM&WLC will consider the following exit strategies:
Selling the licensed privileges to the franchise to do business under HHM&WLC's name, assisting them in marketing, and management in return for financial considerations. This way, HHM&WLC's brand would remain viable and strong in the end while HHM&WLC earns revenue from franchising deals (Uhlenbruck, Hughes-Morgan, Hitt, Ferrier & Brymer, 2016).
Management buyouts (MBO)
The management may decide to sell the business to other established companies or to the management to continue with the business after the founders have sold HHM&WLC
Initial Public Offerings (IPO)
The initial public offering will involve the management acquiring growth equity for HHM&WLC. The management would sell the shares of HHM&WLC thereby losing controlling rights and ownership to the shareholders (Wessels, Goedhart & Koller, 2018).
5. Strategic mergers and acquisitions
Strategic acquisition refers to the buyout by a strategic buyer. The strategic buyer includes potential buyers in the same industry that have specialized knowledge about the market and line of business and are acquiring HHM&WLC to add value or synergies to their operations. The strategic acquirers would enhance revenue growth; consolidate the overheads as well as the administrative expenses. They acquirers would use HHM&WLC as a complementary business to its operations (Uhlenbruck, Hughes-Morgan, Hitt, Ferrier & Brymer, 2016). The acquirers would manage HHM&WLC after acquisition to leave the management under the current managers but own the whole company (Wessels, Goedhart & Koller, 2018). HHM&WLC ca also merger with others or acquire its competitors to gain market leadership and monopolize the market, mergers and acquisition both offer HHM&WLC more leverage and synergy over the competitors by virtue of the additional capital capability and strategic fit.
Makris, G. (2015). Crowdfunding: from startup businesses to startup science. BMJ, 350(jan14 19), h18-h18. doi: 10.1136/bmj.h18
Rather, R., Rajain, P., & Isha, D. (2016). Confirmatory Factor Analysis of Service Quality Dimensions in Healthcare. International Journal Of Science And Research (IJSR), 5(5), 1740-1744. doi: 10.21275/v5i5.nov163783
Taekman, J. (2017). To Take Care of Patients Well, Physicians Must Take Care of Themselves. Academic Medicine, 92(4), 427. doi: 10.1097/acm.0000000000001588
Uetake, K., & Yang, N. (2018). Success Breeds Success: Weight Loss Dynamics in the Presence of Short-Term and Long-Term Goals. SSRN Electronic Journal, 21(11). doi: 10.2139/ssrn.2928441
Uhlenbruck, K., Hughes-Morgan, M., Hitt, M., Ferrier, W., & Brymer, R. (2016). Rivals' reactions to mergers and acquisitions. Strategic Organization, 15(1), 40-66. doi: 10.1177/1476127016630526
Wang, P., & Spinney, J. (2017). Strategic Asset Allocation: Combining Science and Judgment to Balance Short-Term and Long-Term Goals. SSRN Electronic Journal, 10(12). doi: 10.2139/ssrn.2746001
Wessels, D., Goedhart, M., & Koller, T. (2018). The six types of successful acquisitions. Retrieved from https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-six-types-of-successful-acquisitions
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