Business Plan

For O-Levels
School

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 nts
Conte
of
TABLE OF CONTENTS: Table
EXECUTIVE SUMMARY: ...................................................................................................2
OBJECTIVES:...........................................................................................................................................................3
TO PROVIDE QUALITY EDUCATION..............................................................................................................................3
TO INCREASE THE MARKET SHARE..............................................................................................................................3
MISSION.................................................................................................................................................................3
KEY TO SUCCESS ....................................................................................................................................................3
SCHOOL OVERVIEW:.........................................................................................................3
BACKGROUND OF THE IDEA:......................................................................................................................................3
INTRODUCTION TO SCHOOL:......................................................................................................................................4
LOCATION:.............................................................................................................................................................4
GOALS AND OBJECTIVES:................................................................................................4
PRODUCTS AND SERVICES:.............................................................................................4
SERVICES:..............................................................................................................................................................4
COMPETITIVE COMPARISONS:......................................................................................5
SWOT ANALYSIS FOR SSA:...................................................................................................................................5
FORM OF OWNERSHIP:.....................................................................................................6
MANAGEMENT AND STAFF;............................................................................................6
MARKETING:........................................................................................................................6
MARKET SEGMENTATION: .........................................................................................................................................7
TARGET MARKET:...................................................................................................................................................7
MARKETING STRATEGY:............................................................................................................................................7
FINANCIAL FORECAST:.....................................................................................................7
FINANCES:..............................................................................................................................................................7
SALES STRATEGY:...................................................................................................................................................8
SALES FORECAST:....................................................................................................................................................8
APPENDIX-1...........................................................................................................................9
APPENDIX-2.........................................................................................................................11
REFERENCE:.......................................................................................................................11

ary
Summ

tive
Executive Summary: Execu
Standard school of Abbottabad is an O-level school providing aim at providing quality
education and wide range of services in Abbottabad. It is located on Main Road opposite to
Ayub Medical Complex Abbottabad.

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SSA has a wide range of opportunities for parents to indulge their children in an education
which provide a great future prospect and growth ability. SSA has pre-focus clearly on the
objective and goals and will provide customers with the best service on which they can rely.
The concept of the School has different perspective its targeted customers are in Students of
age between 14-16 and supper-class and lower class families. The segments include areas of
Abbottabad, Mansehra and Haripur.
Through market analysis it has been observed that their to market leaders but they have some
weaknesses which can b the opportunities of SSA. SWOT analysis has been done to
understand some of the threats and how to deal with opportunities through strengths. SSA
aim at establishing service better then competitors with less cost and more market share.

The school has mission statement saying “turning coal into Diamond”.
The school will be opened on August 1, 2008, starting with an initial
enrollment of 30 students. Healthy revenues are forecasted by the end of
the first year and the projection for the next proceeding year shows
higher revenues. The increase in the operating expenses is going to be
incurred due to employing of highly qualified personnel and rents on
some facilities in order to meet the standards for quality education.

Objectives:
• To provide Quality education
• To increase the market share

Mission
The mission of SSA is to provide high quality, convenient and comprehensive education
courses at the lowest cost. The most important aspect of education is knowledge building. It
is the goal of SSA to have students with A-grades and better results which no other
competitor will be able to reach and to exploit that reputation to create greater market share.

Key to success
1. Acquire knowledge of the major courses
2. Develop an enquiring approach to the study according to international standards
3. Identify and explore the opportunities to provide quality education.

The purpose of this business plan is to estimate start-up and ongoing costs; identify revenue
streams; and forecast net cash flow and profits. Initial start-up and operating capital of Rs 5
lac is provided as paid-in capital by Mr Haroon Rashid.
The initiate total investment is Rs 3 lac. We anticipate a start-up date of June 2008, with
several months build-out of an appropriate leased space. A grand opening is targeted for
August 2008. The other finances required are Rs 2 lac.
The sales projection is that SSA focuses to increase the intake of student by 15% every year
and to generate profit through these intakes and to build a reputation to increase profit by
10% every years. iew
Sales and Budget forecast (appendix 1 & 2) shows that sales will increase by 10% and Overv
operating cost will incur more each year with 15% profit increment also. l
School overview: Schoo
Background of the idea:
The idea of establishing an O-level school in Abbottabad which should provide a
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proper education to students seeking of HEC along with Haroon Rashid (Director CIIT,
Abbottabad).
Introduction to School:
Standard School of Abbottabad (SSA) will be established in Abbottabad. The concept of
Standard School of Abbottabad is to provide education to young generation of Abbottabad
and also other cities along with the ability to enhance skills and to compete at global level. It
will also provide an opportunity to the people of Abbottabad to educate their children
according to international standards and to make their careers secure.

Turning Coal into

Diamond
Location:
The location that has been selected for SSA is opposite to Ayub medical college, Main Road
Abbottabad. The venue is a 10.000 square foot complex which includes four main buildings
and can facilitate 800 to 1000 people. The location is on the main road so it will be
convenient for the customers as well as thee is a stationary near it and also it is a save place
for the students. The proposed venue will provide a local solution to the lack of social
atmosphere and international educational awareness to the region.

Goals and Objectives:

The goal of establishing an O-level school in Abbottabad is to provide;
• Quality Education.
• Better services with qualified staff.
• More educational opportunities.
• To form a career building institute.

The objectives of Standard School of Abbottabad are;

• To maintain standard education with capable staff.
• Increase the number of Students by 10% during the second year of operation.
• To ensure sales growth and profit margin.
These Goals of Standard School of Abbottabad are to accomplish the certain objectives and
to make the future projections for the school to provide high education and career building
opportunities to students.

Products and Services: rison

SSA is a concept of education service; it aims to provide upscale and quality service to itsCompa
customers. The customers will be able to avail the service in operating hours from 800hours
to 1400hours in the morning. SSA has the ability to provide quality education through
titive
qualified staff and faculty of 20 teachers who are competent and are well Compe
educated from reputed institutions and can also avail other facilities.
Services:
• O-level education
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• A-level education
Features and Facilities: SSA provides convenient educational place, environment,
competent teachers and extra facilities. Other facilities school will provide include library,
educational trips, playgrounds, game facilities, information technology, laboratories and
medical center, canteens and other equipments etc.
Benefits to customers: The students will not only seek education in SSA but also will be
able to participate in different co-curricular activities to be the young and active participants
of country growth. Through such facilities and activities students (who are the customers)
will be groomed well to compete globally.
Technology: Along with other services SSA focus on using technology as a competitive tool
which will enhance the student’s skills and will enable them to compete and lead the market
by using latest technology. SSA focused on equipping the students with technological
education along with other knowledge.

Competitive comparisons:
Starting an O-level school in Abbottabad market requires lot of work to compete, though
SSA provides wide range of services along with facilities but still facing the competition
required lot more. The two main colleges providing O-level education in Abbottabad are:
Army burn Hall College for Boys and Iqra Academy.

• Army Burn Hall College for Boys is a well reputed institute provides wide range of
facilities and better education service. Its market share is very large and its intake of
students every year is very large number. But one of its weaknesses is that they are not
providing A-level education after o-level studies and it is a college which provides
education only to boys, girls can take admission in girl’s wing but there O-level
education has not been introduced.

• Iqra Academy is a also good at providing the O-level education but the market share is
not large, also its range of services and quality of education and environment is not
appealing still it has large number of intake of students every year.
SSA has competitive edge as it focus on customers and proper education of o-levels and also
providing A-levels in future course. Its location, wide range of facilities and also the
qualified faculty focusing to provide education of international standard.

SWOT Analysis for SSA:

Strengths
• Low Student teacher ratio
• Reasonable space per student (12 sq. ft per student)
• Helping and guiding attitude of teachers
• Competent teaching faculty
• Dynamic Leadership
• Well maintained order and discipline
• Environment conducive to joyful learning
• Availability of adequate facilities ement
• Availability of liquid cash due to advance collection of fees Manag
hip &
Weakness
• Difficulty in building confidence of the community Owners
• Initially poor intake of students
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• Operating loss in the initial year due to unabsorbed fixed cost
• Difficult in building confidence of the community
Opportunities
• Government incentives and policies conducive for private investment in education sector
• New proposed education system and international standard teaching requirements.
• General public awareness about O-levels and their need of a better school.
Threats
• New entrants can easily share the business.
• Existing Competitors.

Form of Ownership:
SSA will be a privately owned proprietorship and will be owned by its founder Mr. Haroon
Rashid. But as it is also the project of HEC it will also have HEC and few financial
institutions as silent owners.
It is a part of service industry and will be held as legal owned service company. As of this
writing it as not been chartered yet and is still considering alternative for legal formation.

Management and staff;

The initial stage management of the school includes the Director Mr. Haroon Rashid. The
Acting Principle will be Mr. Ahmad Khan who will deal with daily operations and will enjoy
the status of School head.
The Qualified teachers having master degree in specialized fields with minimum experience
of 5 years of teaching o-levels. The number of teachers will be 10 as for subjects but the
teaching staff will be increased according to needs. The other staff members include;

Staff members requirement

Clerks 2
Administration
3
people
Peons 4
Laboratory
3
Attendees
Computer lab
2
operators
Stationery
1
personnel
Gardner 1
Other class-IV
3
people

The selected staff is competent and qualified and is eligible to help school grow and compete
in the market they are the important assets providing the competitive edge over competitors.
ting
Marke
Marketing:

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Markets where SSA will be established is very competitive and require full thorough
analysis. Our team has done the analysis of market segmentation, pricing and other strategies
required for SSA.
Market segmentation:
Our scale area includes Hazara division areas of Haripur, Abbottabad and Mansehra. 30
students will be taken for O-level studies. 30 for Pre-JC and JC.

Potential Students Students Students

customer’s Growth intake intake intake
segments 2008 2009 2010
Abbottabad 15% 13 15 18
Mansehra 10% 10 11 13
Huripur 10% 7 8 9

Martket Area

Abbottabad
Mansehra
Huripur

Target Market:
Our basic and most important potential customers will be the parents who send their children
out of city for O-levels education. Upper and middle class families who have awareness of
education O-level system. The students of age between 14 to 16 years will be admitted
through a proper test.

Marketing strategy:
The marketing strategy and value preposition SSA adopts to enter into the market provides
the competitive edge to the school, its value being their qualified staffs, enhancement of IT
education, more focus to customer and adaptability of international education strategies.
These strategies will help to deal with the competition and will provide the opportunity to
cover the market share.

Competitive Edge:
SSA has competitive edge over other competitors as it is following the international standard
services, well equipped facilities and focus on IT education and students career building
skills.

Financial Forecast:
Standard school of Abbottabad will follow the pricing strategy to lower the cost and price, to
increase the demand and more customer service.

Finances:

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SSA has different investors including HEC and it focus to take some finances from National
Bank of Pakistan. The total initial investment will be upto Rs. 5 lac including building,
transport and other costs.
Sales Strategy:
The strategy we will adopt will have focus on building reputation of the school, pubic
representation, and will try to increase the intake of school by 15% to 10% every year. The
school will also focus on increasing the sales by providing more facilities and better quality
education.
Sales Forecast:
As the intake of students will increase by 15% each year, it will also increase the net
profits. We expect to open the school on August 1, 2008, with an initial intake of 30
students. The fees for each student will be Rs. 5000 per month. The sales projections are
elaborated in a table in

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Appendix-1
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Sales Forecast:

YEAR 2008 2009 2010

COURSE (Rs) (Rs) (Rs)

No of Students
(Increase of
30 35 40
students in take
expected to be 15%)
Fees per month
RS. 5000 RS.5500 RS.6000
(Growth rate=10%)
Total Fees per
year 1,800,000/- 2,310,000/- 2,880,000/-

PROJECTED SALES:

Year 2008 2009 2010

(Rs.) (Rs.) (Rs.)
Charges
Prospectus to be
sell 180,000 210,000 240000
Rs.500 each

Fees 1,800,000 2,310,000 2,880,000

Total 1,980,000/- 2,520,000/- 3,120,000/-

The Income will be generated through these sales and it will result in 15% of the profit
of sales

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Appendix-2
Expenditure:
Salaries:
Principal: Rs. 50,000 per month
Other staff members:
Rs. 35,000 each per month
Other clerical, administrative and frontline staff salary:
(In Total)Rs. 44,500
Total: Rs. 79,500
Total per year: Rs. 129,500

Operating costs:
Year 1 2 3
(Rs.) (Rs.) (Rs.)
129500 129500 129500
Salary
Electricity and
25000 27000 27000
other
Transport 5000 5500 6000
Misc. 10000 10500 11000
TOTAL 169,500/- 172,500/- 173,500/-

Cost = Tution fees

Year Year Year
2008 2009 2010
Sales 1,980,000/- 2,520,000/- 3,120,000/-
(-) cost (792000) (1016400) (1277760)
Gross profit 1188000 1503600 1842240
Operating
Expense:
Salary 129500 129500 129500
Electricity 25000 27000 27000
and other
Transport 5000 5500 6000
Misc. 10000 10500 11000

Total (169500) (172500) (173500)

EBT 1018500 1331100 1668740

Net Income
865725 1131435 1418429
(After 15% Tax)
Reference:
www.businessrecord.com
www.bplans.com
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www.sba.gov.pk

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