Construction Law/Financial Proposal
Customer A wants to outsource purely their Technology Training. They have an in house trainer that costs 70,000 Euros per year. They deliver 116 training days of Technology Training per year. They charge customer about 3000 Euros per training day (Including Flights (~ 1000 Euros) + Hotel (~ 100 Euros per night) + Allowance (~70 Euros per day). Average training days per session takes about 3 days (per trip).
If our company were to suggest taking over the trainer and their Technology Training unit from Customer A, what kind of financial proposal should our company needs to propose. This would include x% of sales commission to Customer ABC for selling all the trainings.
What are the things that our company needs to take into consideration financially?
Thank you for your question.
Although I have little experience in technology training business, I will take following factors in general while submitting a financial proposal as per contents described above.
1. How much period for the deal is involved i.e five years or less.
2. Costing of entire training functions and tools required. This include all aspect of back office administration and creation / delivery of training programs etc.
3. Risk management and remedies to be provided for software handling and related matters.
4. Commission say 5 to 10 percent as agreed for company ABC.
5. Assessment of capital working required and its return.