Business Plan.EMP19/A/22Ganesh Lad

EasyCOMPWe make Computers your best friends. Let’s understand them.

Executive Summary

EasyCOMP (EC) is in the process of being formed as a sole proprietorship owned and operated by self. This plan is written as a guide for starting and managing this new business and will also serve as the basis for a separate, detailed marketing plan. Following is a summary of the main points of this plan.

Just because we live in a computer age doesn't mean that everyone is computer-savvy. That's where the computer tutor comes in. A computer tutor teaches individuals how to best use their computer programs and the Internet,

typically at the owners house(classroom environment) and also at client's location. Fluency in several popular computer applications, such as different components of Microsoft Office, is imperative for this home based business idea.

EC will Teach School Going children how to perform basic tasks on a personal computer. Give personal lessons on basic MS office software applications and operating systems. Provide telephone support for software tasks and problems. The job of the personal computer instructor will be to help users learn the language of computer operations and make use of software as a part of their educational curriculum.

The objectives of EC are to generate a profit, grow at a challenging and manageable rate, and to be a good citizen.

The mission of EC is to provide personal ,simple to understand, and reliable technical assistance to school going children

The job of the personal computer instructor will be to help users learn the language of computer operations and make use of software as a part of their educational curriculum

The keys to success for EC are marketing and networking, customer care , responsiveness and quality, and generating repeat customers.

The initial primary service offered will be hourly technical aid, although retainer contracts and projects will be considered in the future growth.

The local market for this business, while not new, is wide open for new and expanding tutoring firms.

An initial financial analysis of the viability of this venture shows outstanding promise and results. Several sources note that the computer tutoring business is easy to start, requires little up-front

capital, and has the potential to be quite lucrative in today's high tech world.

In conclusion, this plan projects rapid growth and high net profits over the next three years. Implementing this plan, in conjunction with a comprehensive and detailed marketing plan, will ensure that EasyCOMP rapidly becomes a profitable venture for the owner.

1.1 Objectives

The objectives of this business plan are:

To provide a written guide for starting and managing this computer tutoring business; a strategic framework for developing a comprehensive tactical marketing plan.

The intended audience is the owner of this business only; this plan is not intended to obtain financing from outside sources.

The scope of this plan is to provide detailed monthly projections for the current plan year, and yearly summaries for the following two years.

The objectives of EasyCOMP are:

Profit - To generate sufficient profit to finance future growth and to provide the resources needed to achieve the other objectives of the company and its owner. (Net profit of at least 30% of sales in first year).

Growth - To grow the business at a rate that is both challenging and manageable, leading the market with innovation and adaptability.

Citizenship - To be an intellectual and social asset to the community and environment.

1.2 Mission

EasyCOMP’s mission is simple and straightforward:

Purpose – EC exists to T to provide personal, simple to understand, and reliable technical assistance to school going children. EC sells solutions & results! One-on-one training. A personal coach/mentor /guide to the wonderful school going kids kid to help him achieve the desired success in school.

Vision – “Make Computers the BEST friend for very school going kid”. By providing personalized training and response, informed expertise, and consistently simple to understand but high quality knowledge, EC generates enough satisfied repeat customers to provide a stable retainer base. This generates sufficient profit to provide a comfortable living for the owner.

Mission - Is to provide school going children with personalized ,customized training and program instruction - classroom or online remote - in order to improve personal productivity and achieve the desired success in school.. The short term objective is to start this company quickly and inexpensively, with a minimum of debt. The long term objective is to grow the company into a stable and profitable entity that the owner can easily and comfortably manage.

Marketing Slogan - "We make Computers your best friends. Lets start playing with them "

1.3 Keys to Success

The keys to success for EasyCOMP are:

Marketing and Networking (getting the name out there). Responsiveness (Remote help). Quality (Clarity, Ensure 100% understanding , Effective teaching skills , communication style ) Relationships (developing loyal repeat customers - retainers). Student Involvement/Learners Acceptance: Social roles involve the creation of friendly and

comfortable social environments in which students feel that learning is fun possible. Getting them interested to learn

Subscription/ membership :Aability to retain customers for a long period of time; ability to acquire new customers at a low cost.

Sales Growth: Nos of New customer added Method of Teaching:

the students concerned 

      

            

Company Summary

EasyCOMP will be a start-up venture with the following characteristics:

EC will initially be a sole proprietorship. The goal will be to start the venture as inexpensively as possible, with no debt financing. EC will be a home office start-up, utilizing one studio room in the owner's home.

2.1 Start-up Summary

In keeping with the company philosophy of avoiding the use of debt, the goal is to start-up as inexpensively as possible. This is in line with industry figures that show that computer tutoring start-ups are ideal entrepreneurial opportunities with very low start-up costs. Total start-up expenses for EC come to 9.5L INR , all of which will be financed through owner investment.

2.2 Company Locations and Facilities

This is a home office venture, located in one studio of the owner's home.

Computer facilities will initially consist of 2 Computers for remote help. Telephone - one line currently serves the location.

ECOMPStart-up Expenses BudgetOne-Time Expenses Cost

% of Total Capital

Source of Estimate/Notes

Furniture 150,000.00 15.95% Cabins for 10 Computers Lighting Fixtures 50,000.00 5.32% Counters, Shelves, Display Fixtures 10,000.00 1.06% Equipment 2,500.00 0.27% White Board Printing 10,000.00 1.06%Other Professional Fees 10,000.00 1.06%Supplies 5,000.00 0.53% StatinaryInsurance 3,850.00 0.41%Telephone/Internet Installation 4,000.00 0.43%

Computer/Copier 385,000.00 40.94% 10 Comps+1 Fax cumprintercom copierPersonnel Recruitment Costs 10,000.00 1.06%Pre-Opening Salary 300,000.00 31.90%Total Estimated Start-up Capital 940,350.00 100.00%

An internet connection will be required

2.3 Company Ownership

EasyCOMP will be created initially as a sole proprietorship, owned and operated by Ganesh Lad

Services

Easy COMP will offer a one on one personal computer tutoring service to the school kids and also will be made avl at their door step ,flexible to accommodate varied timings, learning structure is made easy and customized per students requirements and above personal attention is given to guarantee success.

EC will offer 5 main services , as sources for Revenue.

Service Description with the Types of Services offered.

3.1 Sales Literature

EasyCOMP will start with some basic self-generated literature to establish initial positioning:

Logo .theme and Introduction pamphlets - A graphic artist friend of the owner has already commenced work on a matching logo. We will tie up with a local newspaper agency to distribute these papmplets along with the daily newspaper to predefined area.

Web Presence - Eventually a website will be developed as an "electronic brochure" as well as a resource site for the owner's established client base.

3.2 Fulfillment

The fulfillment of services for EC is provided by the owner. The ultimate deliverable is the owner's and his team’s expertise to make simple the Computer lessons , coupled with an innovative and customized

Nos of Months

Upgrades

Tutoring (adults)Revenue

Nos of Students

Revenue/ Student

Nos of desktops

Revenue/ Desktop

Nos of desktops

Revenue/ Desktop

Nos of Adults

Revenue/ ReportPrice/ Report

Revenue/ Adult

Nos of Months

Price/ Month

Nos of Months

Price/ Month

Nos of Upgrades

Price/ Upgrade

Nos of StudenstNos of Reports

Total Revenue

Tutoring (school kids) Revenue

Repairs and Manintainance Contracts

REVENUE SOURCES

Price/ Month

Report Writing College Students

teaching methods with an open mind and ease of communication that will result in the customer's complete confidence in immediate and lasting results.

3.3 Competitive Comparison

There seems to be four major classes of competition in the local computer tutoring industry:

Larger network and tutoring academies - Large, known-name companies such as NIIT ,Educomp ,Computer Kids specialize in providing total computer lessons.

Internet- Online Computer Classes Private Home Tutors : An agency which has a database of tutors for various subjects and offers

them on demand. Computer stores offering tutoring services.

Of course, EasyCOMP fits into the largest group as a sole proprietorship . The primary reason that customers would buy from EasyCOMP rather than competitors is the existing relationships that exist. Customer loyalty and satisfaction are the way to success for small service businesses such as this.

Differentiation is created by :-Flexible Payment Terms.-Raising convenience factor. personal door to door Services-Lowering perceived risk for learning computers by personal attention and remote help.Payment post evidence of success.

Value add by a) Offering professional COmputer maintainance Services ,professional COmputer repair with quick turnaround time.b)Providing service at Flexi Timingsc) Customizing course to suit student's learning interests and capacity.

3.4 Technology

Technology is, of course, vital to the success of EC. It is imperative that the owner stay up-to-date on the latest technological developments in the computer industry. In addition, it will be important to devote a reasonable portion of each year's revenues toward upgrading the equipment and software used by EC in its normal operations.

Market Analysis Summary

EasyCOMP will adopt a fairly intently focused market strategy.

4.1 Market Segmentation A logical segmentation breaks the market down into the following: The largest and most logical target markets for EC are school going children Std III to Std VIII of

CBSE and ICSE board schools. They mostly have a need for term tutoring aid, usually billed at an monthly basis. Some opportunity does exist, however, for parents and senior citizens who have the learning appetite.

Training on the customers' own computer at their home : The target Segment will be high-income families and businesses for the obvious reason that they can afford a larger hourly fee and because they are more likely to have at least one computer in the home.

While there are a fair number of competitors in the local area, they seem to be widely specialized and widely sized, leaving ample opportunity for EC to create and expand a niche in the chosen market segments.

Finally worth noting is the growth trend for this market, estimated at around 9 to 10 percent annually through the beginning of the next year

4.2 Market/Industry Attractiveness

The market is growing and attractive as Computer education is made mandatory in the schools. Every year there is an addition of schools and no’s of schools and students are increasing. Many tuitions do not offer practical hands on training on the machines. Parents are releasing the importance of computers and want their kids to make a good start and

are willing to pay for these services.information I will need through Market Research.

4.3 information Derived through Market Scanning .

Nos of computer facilities and teaching methods of ICSE /CBS board Schools. Computers labs, Computers/Student. Frequency of Computer Teaching sessions.

Nos of Household with school going children and having Computers. High Income Families ( Level#1 ,High Profile Societies) Nos of pvt computer classes for tutoring school going children in the Vicinity. Computer consultants who perform repairs and upgrades so that I can make recommendations

to my clients when necessary; in return, I should expect these consults to refer clients who are seeking instruction.

Fees charges and methods of tutoring by these private classes. Textbooks the student are using and becoming familiar with the subject matter I will be

covering.In some school districts I have worked closely—though informally— with guidance, counselors, teachers, and administrators. Made them aware of my resume and references and asked them to recommend me to parents who seek help for their children, as appropriate.

4.4 Customer Pain Points / Market Needs

Sometimes our children—need some extra help or one-on-one instruction to achieve success in school .The kid may be a math prodigy, but may be unable to master computers. As a parent, we all want our children to do well and succeed in school. However, any parent will quickly learn that it is somewhere between extremely difficult and impossible to teach your own child without a descent into screams and tears . . .and a personal tutor would be of help.

The Schools have limited Machines to teach the students and personal attention to teach computers is deprived

Most of the school kids are baffled, bewildered, and sometimes terrified of the machine.

4.3 Service Business Analysis

The computer tutoring business for the local area is getting established, yet still allows ample opportunity for entry and growth for new participants. This is supported by the following points:

While there already exists a large number of competitors (NIIT,Educomp, Bright Kids) , there is also a wide range of sizes and specialties. This leaves plenty of opportunity for EC to find and develop a particular niche.

Customers in this industry tend to be loyal, relying on the same Tutot for future needs once a relationship has been established.

An analysis of EC's main competitors shows no overwhelming strengths that would be significant barriers to EC's success. Likewise, identifying competitor's weaknesses (Closeness, Quality of teaching ,Teaching Methods) has illuminated several areas that EC can target as marketing strategies.

4.3.1 Business Participants

A search of the local Yellow Pages revealed the following:

Under the search for Computer Training / Tutions there were a total of four listings

No of Societies 25Avg Familes/society 75Total familes 187540% Familes with min School kid 40% 750Offer to join 15% 112.5 Class room EnviormnmentOne to One 20% 22.5 High Income FamiliesBalance for Tutions 90

Tutions#1 Tutions#2 Home#1 Home#2Tutor21 Tutor3 Owner#1 Tutor#1

3:15 to 4:15 10 10 1 14:30 to 5: :30 10 10 1 16:15 to 7:15 10 10 1 17:30 to 8:30 10 10 1 1

Sat08:00 to 10:00 10 1010:00 to 12:00 10 10

Frequency Nos Monthly Rate TotalWeekly 80 1500 120000Home 8 5000 40000Weekly batches 40 1200 48000

Total/Month 208000

Expected Monthly Sales (INR) 208000

No of Estimated Customers

BreakDown for Expected Customers

Under Computers - Service & Repair there were 51 total listings, the majority of which seemed to be stores or companies

Under Computers - Software & Services there were 88 total listings. Thirteen of those were large companies such as [NIIT ], [EDUCOMP], and [BrightKIDS] ,4 were specialists in computer eductaion

Under Pvt tutors there were 45 total listings. About half had larger listings and/or company names that implied larger size.

The conclusion is that while there a fair number of competitors in the geographic area, they are widely specialized and widely sized. None exist near to the locality where I plan to have these Tutoring classes

4.3.2 Main Competitors

Below are examples of a brief analysis of EC's main competitors.

1. NIIT

Top strength - A very memorable name that will stick in customer's minds. Pioneers in Computer Education. Well Established network

Primary weakness – Teaching methods mostly professional (corporate type) .Not customized for the school children

2. Growell Information India Pvt. Ltd

Top strength - Longevity and experience, someone who has been in the business locally a long time.

Primary weakness - Slow response and an unwillingness to take on new customers.

3.Computer Kids

Top strength – Excellent teaching staff. Good Facilities /Enviornment

Primary weakness – Focusses on Multimedia , Games No school curriculum

4.3.3 Competition and Buying Patterns

As noted above, the local computer tutoring industry is fragmented, with a wide variety of sizes and specialties. Two general factors of competition immediately show up in the analysis:

The larger competitors seem to be grouped into two main categories: those who provide network expertise to large companies (Corporate Clients), and those who provide "tutoring" services.

Of the smaller sized companies, about half still seemed to favor larger businesses (mainly college gong students) as their clients.

While larger companies tend to look for College going students, Corporates, the home business/small business owner tends to favor the personal relationship that can develop with the smaller tutoring firm. Several parents of school going children very much preferred having a tutoring class nearby to their homes (child safety) and dealing with a person they knew through prev references and who existed in the nearby locality.

This leads to another very important buying pattern. Customers who have established a relationship with a computer tutor tend to stay very loyal as long as the service and results remain acceptable. This will be critical to the success of a new company like EC.

Strategy and Implementation Summary

EC will focus on the following to establish and grow the business:

Four main promotion strategies: networking and referrals, traditional media advertising, and some non-traditional promotion methods.

A value proposition of timely and practical solutions, at a reasonable rate, coupled with a 100% guarantee.

A competitive edge based on cultivating existing customer relationships.

5.1 Strategy Pyramid

Most of the experienced business people who contributed to the research for this plan suggested some combination of the following four marketing strategies. These are especially suited for a home business such as computer tutoring.

Strategy 1 - Networking & Referrals - Using existing contacts and clients to build a larger network of potential clients.

Strategy 2 - Advertising - Traditional methods such as Yellow Page ads, newspaper classified and display ads, local television cable access advertisements.

Strategy 3 - Non-traditional - Creative and unique advertising such as shop door hangers, , etc.

5.2 Value Proposition

The value proposition offered by EC is quite simple: Offer 100% satisfaction guarantee at a very reasonable and competitive rate. thus building and retaining the client's confidence.

Guaranteed Success: One-on-one training. A personal coach/mentor /guide to your wonderful kid to help him achieve success in school.

Convenience At your Doorstep: We bring flexibility into your schedule. The customer can choose the frequency of his personal computer lessons and eliminate any concerns of falling behind in class due to illness, travel or needing more time on a certain lesson.

Remote help - We use a special software installed on both the student’s and the teacher’s machine that allows the instructor to demonstrate tasks and make adjustments to settings by remote control over the Internet.

Familiarity: Learning on your own computer provides your kid a consistent learning environment. This allows us to fully customize your private computer lessons, computer settings and software programs to match your specifics needs. We make learning a fun activity

5.3 Competitive Edge

EC's competitive edge is that the owner already has a significant number of high quality relationships with current and potential clients. In essence, EC has already overcome the barriers to entry in the tutoring field and is simply in the process of formalizing the business.

5.4 Marketing Strategy

The topics below briefly outline the marketing strategy for EasyCOMP.

5.4.1 Marketing Programs

The most important marketing program for EC is to get the word out, through a combination of the following:

Sending a letter of announcement and brochure to all existing contacts and customers. Following the well-established steps of a public relations campaign (press releases, announcements,

etc.). Developing and purchasing "grand opening" announcements in the local news media.

5.4.2 Positioning Statement

For the wonderful school going kinds who need to excel, stay ahead in class and need help for computer knowledge, EasyCOMP provides a fun and creative learning environment which makes computers the best friends of the students, easy to learn and play. Unlike the other tutors, EC offers a 100% satisfaction guarantee.

5.4.3 Pricing Strategy

EasyComp will adopt a price matching strategy rather than entry pricing. A survey of local tutoring businesses revealed the following:

Monthly Rate Pricing - The average price charged was 1500/Month. Home Tutors –Avg Price was 5000 /Month

5.4.4 Promotion Strategy

The primary promotion strategy for EC will be directly in line with the strategy pyramids mentioned previously. The lead strategy will be to focus on cultivating existing relationships, using known networking techniques to develop referrals and new customer leads. Added to this will be a blend of traditional public relations and media marketing. The ultimate promotion strategy, however, will be in guaranteeing customer satisfaction: happy customers will generate repeat and new business.

5.5 Sales Strategy

Sales strategy for EC is simple and straightforward: customer satisfaction! Happy customers will be repeat customers, and they will provide referrals to new customers.

5.5.1 Sales Forecast ( Nos of Customers)

The sales figures shown below include the projection based solely on Number of students tutored every year . Yearly figures for subsequent years include the growth of retainer and new students.

Fig1:

5.5.2 Sales Forecast (Fig2_ YOY Predicted Sales (INR)

Nos of Students

128140

155

2010 2011 2012

2,941,537.76

3,235,691.53

3,397,476.11

2010 2011 2012

5.6 Strategic Alliances

EC will need to focus on networking with local computer stores and local schools (such as Bishops, DPS) to develop strategic alliances. Such organizations, which may not be customers in themselves, will be valuable in providing leads to new customers.

5.7 Milestones

The milestones listed in the table below outline primarily the tasks needed to develop this business plan and get the start-up business to opening day. The milestones table in the marketing plan will be a more comprehensive listing of the tasks involved in promoting and sustaining EC's business.

Milestone Start DateDays reqd End Date Budget Manager

Research the right business 10/01/2010 30 09/02/2010 0.00 OwnerTest assumptions 09/02/2010 15 24/02/2010 0.00 OwnerDetermine the right business 24/02/2010 7 03/03/2010 0.00 OwnerPrepare personal financials 09/02/2010 10 19/02/2010 0.00 OwnerDecide on target customers 24/02/2010 15 11/03/2010 0.00 OwnerKnow the industry 24/02/2010 15 11/03/2010 0.00 OwnerDecide on location 24/02/2010 15 11/03/2010 0.00 OwnerSelect business name 24/02/2010 15 11/03/2010 0.00 OwnerSecure location 24/02/2010 15 11/03/2010 10,000.00 OwnerEstablish business contacts 11/03/2010 30 10/04/2010 0.00 OwnerExpand information base 10/04/2010 30 10/05/2010 0.00 OwnerEstablish good information flow 11/03/2010 30 10/04/2010 5,000.00 OwnerResearch demographic info 24/02/2010 45 10/04/2010 15,000.00 OwnerEstablish financial objectives 10/04/2010 15 25/04/2010 0.00 OwnerEstablish pricing strategy 25/04/2010 30 25/05/2010 0.00 OwnerEstablish sales forecast 10/04/2010 30 10/05/2010 0.00 OwnerDetermine capital needs 10/04/2010 30 10/05/2010 0.00 OwnerPrepare marketing plan 10/05/2010 30 09/06/2010 0.00 OwnerPrepare balance sheet 10/05/2010 30 09/06/2010 0.00 OwnerPrepare for opening 09/06/2010 30 09/07/2010 0.00 OwnerCheck all systems 09/07/2010 15 24/07/2010 0.00 OwnerOpening final prep 24/07/2010 15 08/08/2010 0.00 OwnerTotals 30,000.00

7.3 Break-even Analysis

The following table and chart summarize the break-even analysis for EasyCOMP. Variable costs are assumed as 15% of sales, an average figure provided by sources within the tutoring field

Break-even Analysis

Total Sales 2,941,537.76 Variable Operating Expenses (Minus) 441,230.66 Contribution Margin (Equals) 2,500,307.09

Calculate Contribution Margin Percentage (Contribution Margin / Total Sales) 0.85Total Fixed Costs 940,350.00

(Fixed Operating Expenses/Contribution Margin %) 1,106,294.12Break Even Months 11

INCOME STATEMENT:

EasyCOMP

Income Statementfor the period 2010 -2012

INCOME 2010 2011 2012Cash Sales 0.00 0.00 0.00Total Gross Income 2,941,537.76 3,235,691.53 3,397,476.11TOTAL NET INCOME 2,941,537.76 3,235,691.53 3,397,476.11 OPERATING EXPENSES Salaries and Wages Owner's Compensation+ Salaries 936,000.00 1,076,400.00 1,237,860.00 Payroll Taxes 0.00 0.00 0.00 Employee Benefits 84,500.00 92,950.00 102,245.00Total Salaries and Wages 1,020,500.00 1,169,350.00 1,340,105.00 Business Expenses Advertising & Promotion 72,000.00 79,200.00 83,160.00 Legal Fees 26,000.00 28,600.00 30,030.00 Maintenance & Repairs 13,000.00 14,300.00 15,015.00 Printing 13,000.00 14,300.00 15,015.00 Supplies 26,000.00 28,600.00 30,030.00 Taxes & Licenses 2,600.00 2,860.00 3,003.00 Telephone & Internet 42,250.00 46,475.00 48,798.75 Travel & Entertainment 65,000.00 71,500.00 75,075.00 Utilities 26,000.00 28,600.00 30,030.00 Vehicle Expenses 6,500.00 7,150.00 7,507.50Total Business Expenses 292,350.00 321,585.00 337,664.25 TOTAL OPERATING EXPENSES 1,312,850.00 1,490,935.00 1,677,769.25

Net Income Before Taxes 2,649,187.76 2,914,106.53 3,059,811.86

Less Income Taxes 1,059,675.10 1,165,642.61 1,223,924.74

NET PROFIT/LOSS 1,589,512.65 1,748,463.92 1,835,887.12