Currency consulting service Assignment PDF
Added on 2021-06-17
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Think BigCurrency consulting service
IntroductionThe process of establishing a new business venture is known as entrepreneurship (Drucker, 2014). The business may or may not be for profit and the group of individual/s who initiate the business are entrepreneurs (Barringer, 2012). For the long term growth of any country, governments encourage entrepreneurs by providing them necessary resources. This particular report highlights upon a unique business of ‘Currency Consulting’. The details of the business are as below.Why Currency ConsultingBefore establishing a new business, it is recommended to find the need for that particular business (Baker, 2016). Therefore it is important to understand why currency consulting. Just like stock market entities, different currencies of the world are traded on national platforms. The value of these currencies is highly volatile and fluctuates by the second. As people, these fluctuations do not have a direct impact on us. But there is a section of people whose businesses largely depend upon the currency fluctuations.Currency Consulting BusinessThere are various exporters and importers across the globe that make and receive payments in foreign currency. Hence, these currency fluctuations impact their business’s financials. This new business will gain expertise in understanding currency fluctuations and predicting them using fundamental as well as technical analysis. The business clients would be exporters and importers and the primary business offering would be to understand the client’s foreign exchange exposure and provide them guidance about how they can hedge their portfolios from foreign currency risk.Target MarketFor the success of a new business, it is imperative to define the business’s target market at the initial stage of the business. Target market of a business is ideally that set of buyers whose needs the business model aims to fulfill (Armstrong et. al., 2015). Therefore, the target market for the currency consulting business would include importers and exporters. Australia majorly exports commodities, coal, iron ore, wool, alumina and wheat. The country imports machinery,
computers, telecom equipment and crude oil (Economy Watch, 2010). Exporters and importers with an annual turnover of over AUD 0.2 million would be targeted directly by the business.Benefits associated with currency consultingEnhanced profitsThe primary purpose of the business is to improve profits and enhance revenues for clients. By hedging the currency risk faced by clients, their risk would be minimized and may even lead to improved profits.Improved knowledgeBy providing clients with daily consultancy, the business would also aim to enhance the overall level of knowledge associated with currency movements in the country.Reduced riskThe clients associated with the business would be advised to hedge their currency using the most appropriate tools after immense research. This would reduce their risk arising from unforeseen currency fluctuations.Business’s revenue modelThe clients would be offered two option in order to compensate the business’s services. Clients can pay a 100% advanced fee or they can pay a 50% advanced fee and share 5% of the profits made by the client upon the consultant’s guidance. A portfolio sheet for every client would be maintained in order to track the clients’ profits/losses made post consultation.Organizational structureDepartmentNumber of employeesHuman resource management3Sales Team12Consultants15Finance and Accounts2Research3Marketing and PR2
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