business plan
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1295490532.docxBusiness Plan 7
Business Plan for Elated E-Tutoring Services
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Student’s name:
Instructor’s Name:
Class Name and Code:
University:
Date of Submission:
Mission Statement
Elated E-Tutoring Services is in existence in order to help students. The company takes an innovative and unique approach to impacting knowledge. This helps the students to connect with the particular subject material in a better way. Through the use of focused and customised teaching procedures, students will develop the tools to achieve success in their field of study. Our success is founded on our students’ success: we do not succeed if our students do not succeed. In that light, we will have the following working as our mission statement: to be a worldwide leading supplier of distance e-learning.
Company Information
Elated E-Tutoring Services is a Phoenix based company that seeks to offer tutoring services to students over a wide array of subjects. The company, at the moment, is on a sole proprietorship, however, over time the business will change its organizational structure to a Phoenix based LLC within the first two years of operation. Elated E-Tutoring Services was established by Thomas Ryan while he was attending the Phoenix School of Management. Even though the company has been in existence, its operations have been, in most cases, informal.
Growth Highlights
Most of the demand population are students from universities, high schools and other higher learning institutions worldwide. The service shall be offered through a well-structured and easy to use website. As such, our services are able to reach a good portion of the viable market. Additionally, given Thomas’ expertise, Elated E-Tutoring Service will achieve good revenue and profit returns in the near future.
The graph below represents the forecasted cash flows
Products and Services
With an ever expanding demand for appropriate distance learning education globally, it is a beneficial time to take advantage of the reducing supply in the market. The business, therefore, shall focus on creating a website of distance learning education. We shall employ tutors and offer students classes in many subjects or courses such as: English (IELTS, TOFEL), and Foundation courses (Business, Engineering, and science). The business intends to use up to date information technology.
Company Structure
We use the services of two tutors for the initial years of operation. Once additional human resources are required the company has already identified the most competent people who will be able to assist on a contract basis. They include:
Vice president of quality and regulatory assurance: Ms Trish Anger
Director of sales and marketing: Ms Jenifer
Accountant: Todd Coulter
Todd Coulter is the current, central territory manager at Verna care and has over 19 years of successful medical device sale experience in both management and representative role. It is forecasted that Mr Coulter will be hired eventually once demand warrants his employment.
Once the company achieves 60% of its operational capability, the organisation will hire the above positions on a full time basis. Also, at this period, the HR department will have to look for an executive assistant.
Market Analysis
Graduate Students
This organization was founded to tutor students: this is a core segment of the company. However, many other segments have been developing and they can provide additional income in the near future. Graduate students can be segmented into three groups: quantitative, non-quantitative and foreign.
Quantitative: Students at the graduate level and pursuing quantitative courses such as finance, accounting, calculus, business algebra, and statistics.
Non-quantitative: This market segment represents students who request additional tutoring on subjects that are not quantitative. These courses include: marketing, economics, organisational behaviour, and international management. Initially, these subjects were not in demand as the quantitative subjects but over time experience has shown that non-quantitative subjects also lend themselves well. The ability to provide students with practice tests and preparing them for exams has proven to be a popular service that can only increase in the future.
International students: Customised solutions are offered to students from foreign countries given the large size of the overseas market. For example, while tutoring math, the tutor will focus less on explaining the hard math calculations but first helping the students understand the explanations of the math in English. Language might just be the problem. Language is important to make sure that the student understands concepts passed by the lecturer in class. Moreover, a bigger portion of students seeking tutoring came from foreign countries.
Undergraduate students
This is an important area that might develop into the main revenue generating market segment for the company. This segment can also be divided into quantitative, non-quantitative, and international.
Industry Description and Outlook
The target market is quite big and expansive given that the use of information technology has enabled students from all walks of life to seek tutoring via the internet. Taking a sample from the Phoenix College alone, there are over 11.500 students enrolling to the school in a single year. This number includes all graduate and undergraduate programs on both full-time and part-time basis.
Market challenges and threats
The greatest drawback with this target market is that students spend little or nothing in their academics during the holidays.
Distinguishing characteristics
Over time, we hope to foster business relations with other companies and begin networking into the markets they dominate. These interactions and partnerships will foster growth. Particular attention is given to particular characteristics that clients expect of our company. These include fair pricing, proper customer service and care, and good use of information technology.
Pricing policy: To ensure we remain competitive, the business does not provide low prices at the expense of quality
Customer Care and Service: The business offers great customer services to ensure a high percentage customer retention rate
Use of Information Technology: The business intends to use up to date information technology to remain competitive
Competition
Competition around the world is growing quite strongly. Many of the companies have a coherent brand image and marketing strategy. Moreover, the pricing has generally been reducing due to the competition from similar companies in other countries.
We shall apply the use of trade shows and such exhibitions in academic institutions around Phoenix and elsewhere as a way of advertising and marketing so as to remain competitive in the market.
Below is a condensed market analysis:
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Size of Market |
There are over 11.500 students enrolling to Phoenix College in a single year. This number includes all graduate and undergraduate programs on both full-time and part-time basis. This shows how the market is expansive given that we target students from all over the world. |
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Needs |
More students hope to get professional help from tutors to help them graduate and upgrade their scores. This demand for quality academic assistance will attract a good number of clients.
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Value of Target |
Students are consistent clients throughout the school semesters. However, the numbers drop off as they leave for holidays. |
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Limitation of Target |
The greatest drawback with this target market is that students spend little or nothing in their academics during the holidays. |
VALUE OF GOODS SOLD 320000 400000 440000 640000 960000 TOAL COST OF GOODS SOLD 120000 150000 180000 240000 360000 TOTAL OPERATING EXPENSES 117700 142000 144500 152000 160000 FORECASTED NET INCOMES 82300 108000 155500 248000 440000
