Poll: Service Industry DLC: Professional Services
Posted: Sat May 25, 2019 1:31 am
Professional Services:
The majority of the developed countries economy is 80%+ services so they should be better represented in this game.
• Types of Firms/Services:
o Business Services:
- Audit/Accounting Firms
- Advertising/Marketing Agencies
- Engineering Consulting
- Legal Services
o Consumer Professional Services:
- Financial Advisers/Brokers
- Real Estate Brokers
- Private Medical Practice
- Consumer Tax Service
o etc.
• Markets for Services:
o Accounting Services:
- Public Company Audits (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
- Government Audits (1%-2.5% of Revenue)
-Corporate Tax Services (0.5%-1.25% of Companies Revenue)
o Advertising Services: Marketing/Advertising Campaigns (20%-30% of Media/Advertising Spend or 2.5%-5% Retail Firms Revenue)
o Engineering Services: Production Consulting (2.5-5% of Manufacturing and/or Raw Resource Companies Revenue)
o Legal Services: Compliance Work (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
o Financial Adviser/Broker Services: Average Family Wealth is GDP per Capita, Fee would be 1% of Wealth/Assets
- Example: City 500,000 x GDP per Capita $30k = $15 Billion x 1% Mgmt fee = $150 Million Market ($300/person)
o Medical Services: 10% x $30K GDP per Capita = $3,000/Person/year and 10% of Medical Market is Private Practices
- Example: City 500,000 x $3,000 = $1.5 Billion x 10% Private Practice = $150 Million Market
o Consumer Tax Service: $150-$300/person x Population
-Example: City 500,000 Population = $75-$150 Million Market
• Professional Service Firm Setup:
o Firm: Headquarters and Branch Locations
- Headquarters Building
- Business Services: Local Skyscraper at CBD of each city
- Consumer Services: Branch Offices across each City
- Note: Similar to Banking DLC HQ and branches
- Alternative: Headquarters and Ability or Requirement to Lease Office or Retail Space in each city based on employee count.
• Revenue and Expenses:
o Business Services Billings
-Legal: ~$1,000,000/lawyer
-Accounting, Advertising, and Engineering: ~$200,000-$300,000 per professional staff
-~$150,000-$200,000 per employee
o Consumer Professional Services Revenue:
-Financial Adviser: AUM ~$30,000,000/adviser x Fee 1% = $300,000/year per adviser, ~50 Advisers Branch
-Medical Practice: ~$1,000,000/Physician, ~10 Physicians per Practice
-Consumer Tax Service: 1,000-2,000 Taxes Prepared = $300,000/year per Tax Professional, ~50 Professionals Branch
o Expenses:
- 40-50% Billing for Professional Staff Salary and Benefits
- Overhead 30%-40%: Overhead Staff Salaries, Office Expense $/sqft times 100-200/Sqft Required per Employee, etc.
- Profit Target 10-20% Sales
The majority of the developed countries economy is 80%+ services so they should be better represented in this game.
• Types of Firms/Services:
o Business Services:
- Audit/Accounting Firms
- Advertising/Marketing Agencies
- Engineering Consulting
- Legal Services
o Consumer Professional Services:
- Financial Advisers/Brokers
- Real Estate Brokers
- Private Medical Practice
- Consumer Tax Service
o etc.
• Markets for Services:
o Accounting Services:
- Public Company Audits (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
- Government Audits (1%-2.5% of Revenue)
-Corporate Tax Services (0.5%-1.25% of Companies Revenue)
o Advertising Services: Marketing/Advertising Campaigns (20%-30% of Media/Advertising Spend or 2.5%-5% Retail Firms Revenue)
o Engineering Services: Production Consulting (2.5-5% of Manufacturing and/or Raw Resource Companies Revenue)
o Legal Services: Compliance Work (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
o Financial Adviser/Broker Services: Average Family Wealth is GDP per Capita, Fee would be 1% of Wealth/Assets
- Example: City 500,000 x GDP per Capita $30k = $15 Billion x 1% Mgmt fee = $150 Million Market ($300/person)
o Medical Services: 10% x $30K GDP per Capita = $3,000/Person/year and 10% of Medical Market is Private Practices
- Example: City 500,000 x $3,000 = $1.5 Billion x 10% Private Practice = $150 Million Market
o Consumer Tax Service: $150-$300/person x Population
-Example: City 500,000 Population = $75-$150 Million Market
• Professional Service Firm Setup:
o Firm: Headquarters and Branch Locations
- Headquarters Building
- Business Services: Local Skyscraper at CBD of each city
- Consumer Services: Branch Offices across each City
- Note: Similar to Banking DLC HQ and branches
- Alternative: Headquarters and Ability or Requirement to Lease Office or Retail Space in each city based on employee count.
• Revenue and Expenses:
o Business Services Billings
-Legal: ~$1,000,000/lawyer
-Accounting, Advertising, and Engineering: ~$200,000-$300,000 per professional staff
-~$150,000-$200,000 per employee
o Consumer Professional Services Revenue:
-Financial Adviser: AUM ~$30,000,000/adviser x Fee 1% = $300,000/year per adviser, ~50 Advisers Branch
-Medical Practice: ~$1,000,000/Physician, ~10 Physicians per Practice
-Consumer Tax Service: 1,000-2,000 Taxes Prepared = $300,000/year per Tax Professional, ~50 Professionals Branch
o Expenses:
- 40-50% Billing for Professional Staff Salary and Benefits
- Overhead 30%-40%: Overhead Staff Salaries, Office Expense $/sqft times 100-200/Sqft Required per Employee, etc.
- Profit Target 10-20% Sales