Violin English School

Kyle McCormick

The Problem

•Taiwanese pre-school and elementary school

students need a fun, unique way to enhance their learning experience and environment for English speaking cram schools offered in Taiwan. My Violin/English school will offer them an alternative way to learn English, through learning the Violin. The more senses you get involved in a learning process, the more one is to retain in the end, and playing a string instrument like the Violin, strengthens your reading, writing, and opens your mind to unlimited potential and adventure.

The Problem Cnt.

• I have seen the stress filled nights and ever so long days of the average Taiwanese student. Every day besides Sunday is all about learning; math, social studies, history, and English (especially English) is crammed down their throats so they can keep up with, and stay ahead of, intellectual competition throughout the world. What they tend to lose out on is a more well rounded learning experience, where classroom learning is fun, filled with music, good feelings and an atmosphere where students look forward to going. Creating an English teaching cram school that teaches English through teaching the Violin creates a new classroom experience, offereing Taiwanese parents a place to enroll their childeren where they can learn a string instrument and the English language all in one.

Company Name: ViolishKyle McCormick

• Mission- Establish new way to learn English

• Vision- Introduce a successful concept

• Values- Responsibility, Integrity, Passion, Leadership

• Strategy- Relaxed, Fun and teamwork environment

Industry Analysis

• The English teaching Industry in which I will be entering is extremely popular with the majority of Taiwanese Families.

• 80% of elementary students attend cram schools

• English is very important to the Taiwanese people knowing that it is essential for the international business world.

• Music is also important in their culture and highly valued.

Target Market

• Elementary school students

• The younger children of Taiwan, are the people who need to be offered an alternative learning technique.

• This way, I can attract and retain committed and interested students for a longer time

• High school students are too busy studying for college to participate in the program I plan on creating

Competition

• Competing Schools ;Strengths and Weakness• 1. Hess-

– Large with many franchised locations– Curriculum and too many teachers

• 2. Giraffe– Popular (strength)– Curriculum (weakness)

• 3. Joy– Large (strength)– Curriculum (weakness)

• 4. Sesame Street– Very Popular (strength)– Dying down (weakness)

•

SWOT

• Strength- My Violin/English school will stand out amongst the large chain, and small privately owned English schools, because of the uniqueness and genuine love of music and language that will eminent from me and my staff. Students will learn a string instrument, as well as real, American English, from an American, born and raised, and study out of a book written by an American author.

• Weakness- We will be small and new, so our presence will not be well advertised, by being small is not always a bad problem to have.

• Opportunities- I feel that I have the opportunity to truly change the idea of cram school, and formulate a new, much more enjoyable and effective way to teach English. I will make a name for myself, and establish a credible school that provides people the opportunity to try something different.

• Threats- I think there are few threats towards my Cram school and me. There is always the threat of failure, or getting a bad or negative review from parents or students, but my objective would be to have fun and I’m pretty good at doing so. I know my students will get something out of the classes I teach and I can’t wait to give them an opportunity to learn.

Making Money

• My violin school will primarily bring money in through students tuition.

• I will also be able to sell t-shirts, violins, my curriculum and other essential tools needed in order to play the violin and/or learn English.

Start Up Expenses

• Requirements Start-up Expenses (6 Months) • Plane Ticket $1,000 • Resident Visa $500 • Advertising $250 • Per Diem $9,900 55$ per day, food, housing etc. • Classroom Cost $2,400 10$ per head per week • Supplies (violins and curriculum books) $2,000 10

violins=150$ each books=15$ • Website (Domain & Hosting Monthly) $150 • Total Start-up Expenses $16,200

Start Up Assets

• Start-up Assets Cash Assets $16,200 (savings) Other Current Assets $2,000 (my violin)

• Long-term Assets N/A

• Total Assets $18,200

Sales Forecast and Schedule

• Per student

– Beginner Class

– Intermediate Class

– Advanced Class

• Per Month

– 200$ or 6000 NTD

– 300$ or 9000 NTD

– 320$ or 9600 NTD

Class 1 Beginner Class 2-3 students

Class 2 Intermediate Class 2-3 students

Class 3 Advanced class 3-4 students

Class 4 Beginner Class 2-3 students

Class 5 Intermediate Class 2-3 students

Class 6 Advanced Class 3-4 students

Private Lessons Varies 1 lesson = 1 hour

Private Lessons Varies 1 lesson = 1 hour

Time of Day Monday Tuesday Wednesday Thursday Friday

6:oo am School closed School closed School closed School closed School closed

7:oo am School closed School closed School closed School closed School closed

8:oo am School closed School closed School closed School closed School closed

9:oo am School closed School closed 7 School closed 7

10:oo am School closed School closed 7 School closed 7

10:30 am School closed School closed 7 School closed 7

11:oo am School closed School closed Office hours School closed Office hours

12:oo pm School closed School closed Office hours School closed Office hours

1:oo pm Office hours Office hours Office hours Office hours Office hours

2:oo pm Office hours Office hours Office hours Office hours Office hours

3: oo pm Office hours Office hours Office hours Office hours Office hours

4:oo pm Office hours Office hours Office hours Office hours Office hours

5:oo pm 1 4 1 4 Private Lessons

6:oo pm 1 4 1 4 Private Lessons

6:30 pm 2 5 2 5 Private Lessons

7:oo pm 2 5 2 5 Private Lessons

7:30 pm 2 5 2 Private Lessons

8:00 pm 3 6 3 6 Private Lessons

8:30 pm 3 6 3 6 Private Lessons

9:00 pm 3 6 3 6 Private Lessons

9:30 pm End 3 End 6 End 3 End 6 Office Hours

10:00 pm Closed Closed Closed Closed Closed

• 1-6 months: I will be establishing, building and preparing my school so it will be ready for the upcoming semesters. As previously stated in my market analysis, I am prepared to have around 10 beginner students in my first year, so the above classroom schedule is designed towards what my 4th

or 5th year schedule may be like. • As you can see from the previous schedule, I will have

plenty of flexibility to adapt to whatever schedule is appropriate for the students interested in participating in my school. The earlier hours of my day will be spent planning organizing and recruiting students. As the years go on, I will design a more accurate and detailed schedule to better accommodate the skill levels and/or ages of my students.

• 6 – 12 months: This will be the first few months I will be teaching. I am not going to be focused on bringing in the most cash flow, I will be testing my target market to try and really understand what they want. I will also be focused on making a good impression on the parents and students who will be participating in my classes.

• 1-5 years: After I am comfortable with my routine and am confident enough to bring on more and mores students, I will start recruiting as many students and potential teachers as I can. These are the year that I will look forward to start making real profit.

•

• 5-10 years: After either finding a few good teachers to help me out or after my students have progressed far enough, I expect to be a fully functioning well known and respected English school with a large student body and several good teachers working for me.

SALES TABLE YR 1-5Table: Sales Forecast Year 1 Year 2 Year 3 Year 4 Year 5

Sales

Beginner $20,000 $24,000 $20,000 $20,000 $20,000

Intermediate $0 $24,000 $30,000 $30,000 $30,000

Advanced $0 $0 $19,200 $25,600 $32,000

Private Students $4,000 $4,000 $6,000 $8,000 $8,000

Violins $2,000 $3,000 $3,000 $3,000 $3,000

Curriculum $840 $1,260 $700 $875 $700 School Merchandise $0 $240 $240 $240 $240

Total Sales $26,840 $56,500 $79,140 $87,715 $93,940

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

Beginner $0 $0 $0 $0 $0

Intermediate $0 $0 $0 $0 $0

Advanced $0 $0 $0 $0 $0

Private Students $0 $0 $0 $0 $0

Violins $1,500 $2,250 $2,250 $2,250 $2,250

Curriculum $360 $540 $300 $375 $300 School Merchandise $0 $200 $200 $200 $200 Subtotal Direct Cost of Sales $1,860 $2,990 $2,750 $2,825 $2,750

Profit and Loss Analysis

• This is my projected profit and loss table. Year 1 is my start up year, and my expences will be high due to the initial start up expenses my business will encounter. However after I get started, some of the expenses won't be around anymore, like plane ticket and different Visa costs. Because I am offering my knowledge and teachings, my direct cost of sales is low, which I will be able to use to my advantage to later maximize my profits.

Profit and Loss Analysis

Table: Profit and Loss

Year 1 Year 2 Year 3

Sales 26,840 56,500 79,140

Direct Cost of Sales 1,860 2,990 2,750

Other Costs of Sales - - -

Total Cost of Sales 1,860 2,990 2,750

Gross Margin 24,980 53,510 76,390

Gross Margin % 93% 95% 97%

Pro Forma Ratios

Current Ratio 1.5

Quick Ratio 1

Debt/Equity Ratio Have no debt!

Inventory Turns

Cash Flow Cycle 1