A EFFECTIVE “BUSINESS PLAN OF TUTORING SERVISES” INDEX No. Title Page No. 1. Mission 2. Keys to Success 3. Objectives 4. Executive Summary 5. Institute Summary 6. Services 7. Market Analysis Summary 8. Strategy and Implementation Summary 9. Management Summary 10. Financial Plan Institute Name : SAMPARIA EDUCATIONAL ACADEMY Owner : Sureshkumar Samparia Form of Business : Sole Proprietorship Location : Sangath Complex, Nr. Stadium Road, Motera, Sabarmati, Ahmedabad – 380 005. Business Starting Date : 1st April, 2010 Telephone : (079) 0000 0000 Fax : (079) 0000 0000 Mobile : +91 00000 00000 E-mail : sea_the email@example.com 1. Mission & Vision: My mission is to take a unique and innovative approach to teaching that helps students connect with the subject matter they need to improve especially mathematics to achieve desired result with perspective of better career. 2. Key to Success: Developing methods of approaching subjects that helps students get their minds around challenging concepts. Creating excellent word of mouth promotion of services. Truly listening to parents’ as well as students’ needs and though best teaching methods to improve students’ results. 3. Objectives To sign out as a speciality in mathematics in first year to capture and increase students. Go through the market trend of teaching of other subjects in different standards for the successive years. Using latest technology and methodology for teaching the students to achieve the excellence. 4. Executive Summary The Institute SAMPARIA EDUCATIONAL ACADEMY (SEA) provides tutoring services in school level studies in the Motera, Chandkheda and Sabarmati area in Ahmedabad. Focussed primarily on students in the schools of these areas affiliated with Gujarat Secondary and Higher Secondary Education Board. The Market The institute is founded tutoring students in the school level subjects. The students are from 8th to 12th Standards of G.S. & H.S.E.B. affiliated schools. Students can be divided into two groups: 1. Secondary ( or High School) Level Students 2. Higher Secondary Level Students The Services Help and guide students in their subjects Arranging individualized as well as group teaching facilities Providing well-designed study materials Delivering sessions by providing good infrastructure and technology based classroom teaching, using LCD Projector. Providing problem solving techniques by Systematic Revision Framework (SRF) Management SAMPARIA EDUCATIONAL ACADEMY (SEA) will be lead by Suresh Samparia. I first began tutoring with personal teaching. The institute is owned and operated by Suresh Samparia. As the institute continues to grow, it is foreseen that it will be transitioned into the cooperation of family members as well as assistant teachers. SEA is a tutoring institute that offers a wide range of tutoring services for school level students in Ahmedabad. Due to my expertise in Maths, teacher networking connections, and low overhead, SEA will realize good revenue and profits the years of this plan. The Competition There are some other institutes like Sahajanand Institute, Alpha classes, Sigma Classes, etc. providing the specialized and targeted services to the target market. Individualized service, based on personalized evaluation of each student and his or her specific needs and strengths. This will take into account the recognition that students learn in various ways. My Tutoring first evaluates each student and their best way of learning and tailors the tutoring to most effective serve each student. Operations SEA will have well designed subject materials and expert teachers to provide students better teaching with help of LCD Projector. SEA will have flexible timings and ease of learning for students. SEA will utilize all its resource maximum by lowering the capital expenses and ensuring the latest equipment at all times. Financials The financial strategy of SEA will emphasize on using its income for enhacement and improvements of institute strengths as well as students’ performances during successive years of operation, with the institute reaching profitability by initial years. Annual income projection for the first year will be Rs.39,645. 5. Institute Summary SAMPARIA EDUCATIONAL ACADEMY (SEA) provides tutoring services in school level studies in the Motera, Chandkheda and Sabarmati area in Ahmedabad. Focussed primarily on students in the schools of these areas affiliated with Gujarat Secondary and Higher Secondary Education Board ( G.S. & H.S.E.B. ) , tutoring is available in subjects including: Mathematics, and Science in first year, and English, Sociology, Chemistry, Biology, and Physics in successive years. Institute Ownership SEA is a sole proprietorship. The institute is owned and operated by Suresh Samparia. As the institute continues to grow, it is foreseen that it will be transitioned into the cooperation of family members as well as assistant teachers. Institute History SEA came into being by inspiration from tutoring. I am a graduate in education. During my personal tuition, my peers groups and family members motivated me to start a structured educational institute to show the talent and capability in the subject of Mathematics as well as Science. 6. Services Review courses and specific topic tutoring for courses in (not an exhaustive list): Mathematics Science English Sociology Biology Chemistry Physics Students are provided with well designed study materials to help them better focus their personal study time to better prepare for upcoming exams. Students are encouraged to review exam results to see where they still have room for improvement. Experience has shown that many of the teachers in the schools use exams more for teaching tools than evaluation tools. SEA employs the Systematic Revision Framework (SRF), a set methods that students can apply to particular subjects for quick revisions. 7. Market Analysis Summary The institute is founded tutoring students in the school level subjects. This remains the core segment, although other segments like competitive exam preparations (e.g. GUJ-CET, AIEEE, etc.) have been developing and show potential to provide the bulk of future income. The students are from 8th to 12th Standards of G.S. & H.S.E.B. affiliated schools. Students can be divided into two groups: 1. Secondary Level Students 2. Higher Secondary Level Students SEA will offer tutoring in the subjects offered to Secondary Level Students and Higher Secondary Level Students. Please review the following section which provides additional detail regarding the different target segments. Secondary Level Students: Secondary Level Students are divided into three standards: 8th Standard Students 9th Standard Students 10th Standard Students Higher Secondary Level Students: This is a new and exciting area that is bound to become the main revenue generating segment for the institute. As secondary level students attended tutoring sessions, they will speak with some of their friends and acquaintances Students Analysis: There are some reputed schools in Motera, Chandkheda, and Sabarmati area. The target students will come from these schools. The data of number of students collected from school staff is as under: 11th(Sci) 12th(Sci) School Name 8th 9th 10th A B AB A B AB Group Group Group Group Group Group Maniprabhu School 146 140 142 75 28 10 75 28 8 652 Swastik Shikshan 551 122 120 113 66 18 16 65 16 15 Sankul Nutan High School 95 90 88 0 0 0 0 0 0 273 H.H.Patel School 118 104 107 68 15 12 66 14 12 516 Kumar Shala 90 95 93 63 10 14 63 9 13 450 Kanya Shala 90 85 82 54 21 13 53 21 11 430 Other Municiple 326 125 110 91 0 0 0 0 0 0 Schools 786 744 716 326 92 65 322 88 59 3198 There are many tuition classes exist in these areas from which many students of above mentioned schools are come for tuition and study help. I have collected some data from reliable resources and from some students of these classes to estimate the number of students to target the future market. 11th(Sci) 12th(Sci) Tuition Classes Name 8th 9th 10th A B AB A B AB Group Group Group Group Group Group Alpha Classes 20 28 34 18 15 4 25 16 7 167 Sahajanad Institute 28 32 48 27 0 0 33 0 0 168 Sigma Classes 22 26 32 11 9 3 20 14 5 142 Gyandeep Group 20 23 30 20 17 12 28 18 12 180 Tuition Gyanjyot Classes 3 4 4 0 0 0 0 0 0 11 93 113 148 76 41 19 106 48 24 668 Target Market Segment Strategy While the secondary school level students segment will remain the core focus of the company, much time will be dedicated to developing the higher secondary level students segment. The secondary level students are assumed to input in a total of only 30 to 105 students in the first two years. Students from this segment will be taught Maths and Science in first year and then English and Sociology in successive years The higher secondary school level consists three streams, namely, Science, Commerce, and Arts. The parents of the students who are taking science stream are quite attentive to their child’s studies in the perspective of better career opportunities in medical and engineering. Service Business Analysis Tutoring has been around as long as students. And as long as students get in over their head, they will need tutors to help them catch up and keep up with their classmates. Competition and Buying Patterns Tutors tend to be individuals with a little extra time and specific expertise in a given topic. The tutoring sessions include examples which are usually from school textbooks and some printed materials prepared by some professional publishers. So, students are introduced to very simplistic models. The advantages of this approach are: Many of the students have their own understandings of practical aspects instead of theoretical. Even the weak students can pick up the concept quickly and see how it would work. Using the different approaches throughout the tutoring relationship provides a safe place for students to learn where they are already familiar with what the subject is and how it works. One challenge that the tutoring institute faces is the cyclical nature of demand. Students tend to seek tutoring more when an exam is looming. 8. Strategy and Implementation Summary My Tutoring will be focused for getting excellence and best results against competitors. Students will be benefited by best methodology and technology. These advantages will offer students significant value including: individualized and group tutoring, specialized material, tutoring specific to subjects and expert teachers, the ability for the service to explain difficult concepts using easy-to- understand ideas and examples. The Systematic Revision Framework will provide students with a problem solving approach that is useful to the current question as well as better grasping of concepts. Competitive Edge There are some other institutes like Sahajanand Institute, Alpha classes, Sigma Classes, etc. providing the specialized and targeted services to the target market. Expert teachers in my institute will prepare effective material and PowerPoint Presentation to teach effectively with the help of LCD Projector on the computer. Systematic Revision Framework (SRF) will be applied to all tutoring. Marketing Strategy The real key to this business is staying ahead of the changing student roster Recruiting school teachers will automatically increase some amount of students of particular schools. Well-designed material and teaching on LCD Projector will attract student by increasing their interests. Meetings and communication with parents will increase the trust of people for the institute. Sales Strategy The bulk of sales come from word of mouth. When new students come into the school, the upperclassmen tell them about the resources available Officering free sessions periodically to the students at the beginning of the school term. This sales event will be able to convert many possible customers into paying customers Advertising, banners, and special discounts will help institute to increase number of students and its profit. Sales Forecast The sales forecast for the institute is estimated as under. Please review the following table and chart which details yearly sales. We have the trend of year wise fees structure for the students. 1st & 2nd Years 3rd & 4th Years 5th Year 8th Standard Rs. 5,500 Rs. 6,250 Rs. 7,500 9th Standard Rs. 6,500 Rs. 7,500 Rs. 9, 000 10th Standard Rs. 8,000 Rs. 10,000 Rs. 12,000 11th(Sci) Standard Rs. 0 Rs. 0 Rs. 20,000 12th(Sci) Standard Rs. 0 Rs. 0 Rs. 50,000 The structure of subjects will be taught every year and the estimation number of students is as under: 1st & 2nd Years 3rd & 4th Years 5th Year Maths, Maths, 8th Maths & 10 Science, 20 Science, 30 Standard Science Students English & Students English & Students Sociology Sociology Maths, Maths, 9th Maths & 10 Science, 20 Science, 30 Standard Science Students English & Students English & Students Sociology Sociology Maths, Maths, 10th Maths & 10 Science, 20 Science, 30 Standard Science Students English & Students English & Students Sociology Sociology Maths, 11th(Sci) Biology, 10 - - Standard Chemistry & Students Physics Maths, 12th(Sci) Biology, 10 - - Standard Chemistry & Students Physics The payment structure for teachers per hour teaching per subject is as under. Here it is noted that proprietor is also a self-employed teacher, so he will be paid as per the structure. Mathematics ( secondary level ) Rs.100 Science Rs.100 English Rs.75 Sociology Rs.70 Mathematics ( higher secondary level ) Rs.150 (11th), Rs.200 (12th) Biology Rs.150 (11th), Rs.200 (12th) Chemistry Rs.150 (11th), Rs.200 (12th) Physics Rs.150 (11th), Rs.200 (12th) 9. Management Summary I will be graduated with a Masters in Management from Gujarat Technological University in 2011. While pursuing other business interests during the day time, I have kept up the tutoring as a source of additional income and for the sheer fulfilment that teaching provides. Most teachers have a set way of teaching the material, from years of teaching the same curriculum, year in and year out. I have always searched for the best way to teach the individual. When the person does not respond well to one method, I immediately change methods looking for a more effective way. Personnel Plan SEA is currently a one man show. I am able to have flexible hours with his day job, therefore I am able to serve students in the evening, on weekends, as well as during the day as needed Personnel Plan 2011 2012 2013 2014 2014 Suresh Samparia Rs. 96000 Rs. 96000 Rs.120000 Rs.120000 Rs.120000 Expert Teachers Rs.0 Rs.0 Rs.120000 Rs.120000 Rs.305000 Other Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Total People 1 2 4 4 9 Total Payroll Rs. 96000 Rs. 96000 Rs.240000 Rs.240000 Rs.555000 10. Financial Plan The following sections will outline important financial information. Projected P & L Account: 2011 2012 2013 2014 2015 Income Gross Sales 250000 200000 475000 475000 1550000 tuition fees 200000 200000 475000 475000 1550000 Other Reciepts 50000 0 0 0 0 Net Sales / Gross Profit 250000 200000 475000 475000 1550000 OPERATING EXPENSES General and Administrative Expenses Salaries and wages 96000 96000 240000 240000 555000 Employee Benefits 0 0 0 0 0 Payroll taxes 0 0 0 0 0 Rent 30000 30000 60000 60000 9000 Light Bill 14400 14400 20000 20000 35000 Furniture & Fittings 30000 0 30000 0 50000 Depreciation & amortization 1500 1500 3000 3000 5500 Maintenance/Office Upkeep 2400 2400 4800 4800 6000 Insurance 0 0 0 500 2500 Stationery & Printing 7200 7200 15000 15000 30000 Telephone/Mobile expenses 3050 3050 4000 4000 5500 postage 1900 1900 3000 3000 4500 Marketing & Advertising 2000 2000 4000 4000 7000 Technology 0 0 0 0 200000 Miscellaneous Expenses 1305 1305 2500 2500 10000 TOTAL OPERATING EXPENSES 189755 159755 386300 356800 920000 Net Income Before Taxes 60245 40245 88700 118200 630000 Provision for Taxes on Income 20600 20600 48925 48925 159650 NET PROFIT AFTER TAXES 39645 19645 39775 69275 470350 Income Tax 0 0 0 0 48070 NET PROFIT AFTER INCOME TAX 39645 19645 39775 69275 422280 Projected Cash Flow Statement: 2011 2012 2013 2014 2015 CASH RECEIPTS Income From Sales 200000 200000 475000 475000 1550000 Collections 0 0 0 0 0 Total Cash from Sales 200000 200000 475000 475000 1550000 Income from Financing Interest income 0 0 0 0 0 Loan proceeds 0 0 0 0 0 Equity Capital Investment 50000 0 0 0 0 Total Cash From Financing 250000 200000 475000 475000 1550000 Total Cash Receipts 250000 200000 475000 475000 1550000 CASH DISBURSEMENTS Expenses Operating Expenses 189755 159755 386300 356800 920000 Service tax payments 20600 20600 48925 48925 159650 Technology 0 0 0 0 200000 Equip purchase 30000 0 30000 0 50000 Total Cash Disbursement 240355 180355 465225 405725 1329650 Net Cash Flow 9645 19645 9775 69275 220350 Opening Cash Balance Cash receipts 250000 200000 475000 475000 1550000 Cash disbursement 240355 180355 465225 405725 1329650 Closing Cash Balance 9645 19645 9775 69275 220350 Projected Balance Sheet: 2011 2012 2013 2014 2015 ASSETS: Current Assets Cash 9645 19645 9775 69275 220350 Accounts Receivables 0 0 0 0 0 Inventory 0 0 0 0 0 Prepaid Expenses 0 0 0 0 0 Total Current Assets 9645 9645 19645 9775 69275 Fixed Assets Buildings 0 0 0 0 0 Furniture/equipment 30000 0 30000 0 250000 Total Fixed Assets 39645 29290 29420 79050 289625 Other Assets 0 0 0 0 0 TOTAL ASSETS 39645 29290 29420 79050 289625 LIABILITIES: Current Liabilities 0 0 0 0 0 Accounts Payable 0 0 0 0 0 Accrued Payroll 0 0 0 0 0 Taxes-Payable 0 0 0 0 0 Short-Term Notes 0 0 0 0 0 Payable Total Current Liabilities 0 0 0 0 0 Long-Term Liabilities Long-Term Notes 0 0 0 0 0 Payable Total Long-Term Liabilities 0 0 0 0 0 Net Worth Capital 50000 50000 50000 50000 50000 Retained Earnings 0 Total Net Worth 50000 50000 50000 50000 50000 TOTAL 39645 29290 29420 79050 289625 Note: Capital is not considered as a liability as the proprietor has donated it to the institute.
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