Business Plan
Business Plan
ED-Wise Hub Ltd
Contents
Purpose of the Document3
Executive Summary3
Educational Courses and Services Plan4
Market Research5
Stratford7
Market Segmentation8
Target Market Segment Strategy8
Competition and Buying Patterns9
Resource Management Challenge11
Finance and Facilities12
Equalities and Inclusion12
Financial Projection13
Purpose of the Document
This particular Business Plan is regarding business of educational services and the objective of this plan is primarily to provide potential entrepreneurs information on various aspects of the project including industry competition, technical requirements, marketing and financial analysis.
Executive Summary
ED-Wise Hub Ltd. is a leading UK based education consultancy firm that works as overseas education promoters and migration consultants. ED-wise Hub "is currently working with the association of leading immigration law firm ''Thomos Bingham Chamber's United Kingdom. ED-WISE HUB is registered with the Companies House England & Wales and its registration number is-.Ed-Wise Hub. ED-WISE HUB is the most experienced and reliable name when it comes to positioning students in the right international universities. It is our pride to have been recommended by parents as a trustworthy organization. ED-WISE HUB assures to provide students with the best possible professional service at all time, to direct students to the right university and enroll them in a right course. ED-WISE HUB also plays a vital role in looking after the educational institutions with a customer oriented approach.
Now ED-WISE HUB is considering the expansion of its business operations by opening a college which will offer wide range of courses. ED-WISE HUB Ltd will lead in student success. ED-WISE HUB will provide a superior working environment for its faculty and staff, and through them, an exceptional living and learning environment for its students and clients. Students will be attracted to the challenging yet supportive experience that ED-WISE HUB creates. ED-WISE HUB will provide high quality programs and services that will contribute to success in tomorrow’s workplace and society. ED-WISE HUB will work in collaboration with its communities, and optimize the unique relationship with its university partner (PEARSON EDUCATION), as ED-WISE HUB focus on excelling as a community college. The collaboration between ED-WISE HUB and the PEARSON EDUCATION provides unique expertise and capabilities that are not available at any other college. The main courses that ED-Wise Hub should offer: Diploma in Health and Social care, Diploma in management, Diploma in Business management, Corporate trainings, English courses and IT & Accounting courses. These courses will allow the ED-WISE HUB to transform the delivery of variety of education. This Business Plan sets out the College’s aims and objectives for future, including key milestones and performance indicators, and summarizes the budget and staffing resources.
Educational Courses and Services Plan
ED-WISE HUB offers a wide range of academic courses ranging from very practical, vocational foundation programs to academic levels. There are a number of reasons why students decide to study undergraduate degrees at UK colleges (ED-WISE HUB) rather than universities. Firstly, in a number of practical subjects, specialist colleges are the most highly respected institutions to study at. Equally, colleges offer a far more diverse range of courses than most universities, offering very practical courses that universities are unable to provide. ED-WISE HUB exists for its students; to help them maximize their potential, acquire skills for employment, set up a basis for further education, or all three combined.
Ensure a learning centered approach for all academic activity.
Provide a learning experience designed to inspire students to reach their career and personal goals.
Ensure students are engaged and feel connected to ED-WISE HUB welcoming environment for students from diverse backgrounds.
Provide access to opportunities for success for all students and graduates
Following are the courses that ED-WISE HUB can offer to its students:
Diploma in Health & Social care
Diploma in Hospitality & Tourism
Business Management
English Course
Corporate Training
IT and accountancy courses
Resources include collections of prior exam questions from each of the courses offered at the graduate school of management with extensive experience reviewing testing patterns. Students are provided with study strategies to help them better focus their personal study time to better prepare for their exams. Students will be encouraged to review exam results to see where they still have room for improvement. Experience has shown that many of the professors in the local programs use exams more for teaching tools than evaluation tools. Review of exams is therefore helpful in grasping concepts needed on future exams as well as gauging progress in the course.
Private tutoring sessions are available, as well as small group study sessions. Students are encouraged to come prepared with questions and items to discuss. Students are also encouraged to ask the tutor questions throughout the course sessions.
ED-WISE HUB employs the Systematic Analysis Framework (SAF), a problem solving method that students can apply to a wide range of subjects and problems. SAF provides the students with the necessary tools to solve the problem at hand, but also empowers them with a systematic approach to solving future issues. This unique approach does not just address the current question the student has, but provides them a problem solving method for all conceivable difficulties. SAF is quite effective at lowering a student's anxiety when faced with new subjects because they then have a method of approach that they can use to assist them.
Market Research
ED-WISE HUB has identified several target market segments that will be pursued. ED-WISE HUB have conducted market research for a number of client and have experience of speaking to students, parents, employers and teachers and lecturers at both the college in question or at local or regional competitors for instance. We carry out research both for colleges themselves, and for other organizations in both the further education sector and from other industries.
Much of our market research work revolves around understanding issues such as student satisfaction, employee satisfaction, perceptions and branding, new course development, vocational and non-traditional courses of study and how employers perceive colleges local to them. Research around colleges of further education often involves a wide-array of stakeholders due to their position within the education system and the number of people who may influence whether or not students attend or how a college is perceived. For instance, there are parents of prospective students, the students themselves, head teachers, form tutors and careers advisors within the feeder school, local employers and members of local government – all of whom may need to be consulted on their views on a matter. This often means that we must adopt a mixed methodology approach. In addition, as many ED-WISE HUB market research projects have a regional focus, it is sometimes impractical to utilize an online panel which contains educators from across the UK.
ED-WISE HUB was founded for the consultation of student’s study but with the passage of time ED-WISE HUB is trying to change its core segment to delivering the quality education, although other segments have been developing and show potential to provide the bulk of future income. Consultancy will remain the backbone of the company's business; other areas will help ED-WISE HUB to take off the success. ED-WISE HUB is grounded in transformational leadership and directed by a broad Vision and Mission. It articulates two goals that guide ED-WISE HUB in moving forward to meet its educational and social responsibilities within the College’s expanded legislative framework. It sets the College on a path that enhances its contributions to society through capacity building, differentiation, innovation, and continuous improvement. Significant change has occurred in post-secondary education in the last decade with the challenges and opportunities presented by the double cohort, online learning, deficit budgets, and government commissions, new educational legislation, and expanded need for applied research and innovation.
Stratford
Total Population of Stratford is almost 0.12 Million
Market Segmentation
The market segments for ED-WISE HUB are graduate students and undergraduate students.
Graduate students can be divided into two groups:
Quantitative: These are students who are at the graduate school level and enrolled in quantitative course such as: accounting, finance and business management. While this remains the backbone of the company's business, other areas have been growing quickly and are poised to take off.
Non-quantitative: These are students who are requesting tutoring for other subjects that are not quantitative. For example, marketing, international management, organizational behavior, and economics. While this was traditionally not as demanded as the quantitative reviews, the experience that the company has developed in tutoring quantitative courses lends itself well to this segment. The ability to prepare students for upcoming exams and to give them practice tests has been a popular service that should only continue to grow in the future.
For undergraduate students, this is a new and exciting area that is bound to become the main revenue generating segment (or group of segments) for ED-WISE HUB. As graduate students attended educational courses, they spoke with some of their undergraduate friends and acquaintances. Some of these undergraduate students began seeking help with their respective classes. At first it was mostly for the quantitative courses they were in. As that market began to establish itself, the company began investing time in building a database of old exams, class notes, etc., for the quantitative courses being taught on the main campus to undergraduate students. These students then began seeking help with their other courses as well. The same segments of quantitative and non-quantitative exist for students at the undergraduate level.
Target Market Segment Strategy
With the passage of time graduate quantitative segment will become the core focus of ED-WISE HUB, much time will be dedicated to developing the undergraduate quantitative segment. This is a mere matter of population dynamics.
The graduate management students (as well as an occasional law student who has chosen to take a management class) are limited to a total of only 150-200 students at any given time, only half of which are in the core of the program taking the required quantitative courses. Generally, those students in the elective quantitative courses in grad school are those who enjoy the education or for whom it comes easily (as well as an increasing number who have gone through the tutoring and developed the skills they need to survive). The potential market among grad students is therefore quite finite.
The undergraduate campus, on the other hand, consists of 1,600 students, so the potential market is ten times larger. The international student population makes up a large percentage of the graduate school of management. The undergraduate non-quantitative segment is difficult and expensive to service because of the variety of courses students could need help with. For now, only the core classes required for graduation are being handled. So, the goal is to maintain the current levels among graduate student segments while over time expanding the undergraduate quantitative segment.
Competition and Buying Patterns
College competition in a wholly private market is straightforward to understand. Parents choose an institute based on price and quality, and institutes are incentivized to make themselves attractive to parents so that they can survive and make a profit. By contrast, government-funded institutes often operate on a very different basis, with administrators assigning pupils to schools, and institute having little incentive to use resources efficiently since they cannot retain surpluses. Elements of competition can be introduced into this environment, however, through the separation of funding and provision. Parents choose schools and schools receive funding for each pupil they attract. The idea is for popular institute to grow and unpopular institute to close, mimicking the effects of true competition. This market-like, or quasi-market, mechanism combines some elements of market competition and some bureaucratic elements.
Can such a quasi-market system be made to raise educational attainment? In this business plan we argue that creating enabling conditions for this is highly complex. We first review the empirical evidence on institute competition within the UK that have enacted significant choice reforms to highlight how weak supportive evidence on competition and efficiency currently is. We then discuss the conditions that are critical to ensuring that institute competition can work to raise overall attainment.
Changing behavior in higher education is not a new issue, it has been happening for a number of years through, for example, changes which have taken place as the sector has shifted from elite to a mass system. The result of this is that it is probably impossible to isolate specific behavioral changes which have occurred as a direct result of the introduction of variable tuition fees. It is, though, possible to assess the extent to which more competitive orientations and behaviors are becoming apparent in the UK higher education sector as a whole. This section of the paper deals with these issues in three ways: First, by considering it in the wider context of changes in public sector management over a number of decades and identifying why competition may be more successful in higher education than in other parts of the public sector; Second, by considering some of the more recent manifestations of a competitive orientation which is continuing to seep into higher education; Third, by offering some informed speculation on what the impact of such behavior is likely to be on the sector in the UK.
The higher education sector in the UK will be shaped and influenced in the future by a set of powerful forces, many of which have competition at their core and many of which will be exacerbated by the introduction of variable tuition fees. Whilst we would not suggest that the effect on university finances and access will not be significant, our argument has been that the most important impact of the introduction of variable tuition fees is increasing levels of competition. The most obvious outcome of all this is that universities will increasingly adopt a competitive orientation which will make issues such as management, performance measurement, globalization, mergers, acquisitions and partnerships become ever more prevalent in the sector. The international evidence presented of sectors with more experience of variable tuition fees where competition between students and institutions has become part of the everyday vocabulary of universities.
One challenge that the ED-WISE HUB faces is the cyclical nature of demand. But ED-WISE HUB understands that different people learn in different ways, so classes will conducted on various levels. Board displays and other visual aids will employ whenever possible to reach those who learn visually. Explanations will be made thorough for the audio learners. A training model should be employed that gives students a good deal of hands-on time during the session so they can learn by doing. And an analysis of each student helps determine which of these approaches will be the most useful for each individual.
Resource Management Challenge
Stewardship and Propriety: Supporting effective governance and control by:
I. Developing and regularly updating of College policies, procedures and guidelines to ensure compliance with legislative and best practice standards.
II. Maintaining an effective inventory system to ensure effective control of assets
III. Providing facilities and advice on procurement issues.
IV. Promoting an anti-fraud culture
Financial Management: Ensure effective financial management and reporting by:
I. Implementing a comprehensive resource allocation process to determine curriculum and service requirements
II. Establishing a clear scheme of delegation setting out budget management responsibilities
III. Ensuring regular, comprehensive reporting function
IV. Enhancing financial reporting processes and systems including development and improvement of financial advice and guidance.
Collaboration
I. Develop strategic collaborations to increase effectiveness and efficiency
II. Integrate and harmonies financial strategies, plans and process with other aspects of College business
III. To promote and support the development of the College’s Business Services curriculum.
Estates Management: The College will refresh its Estates strategy and continue to implement developments in order to:
I. Ensure a safe and healthy environment for staff and students
II. Provide education facilities which will inspire learning, innovation and development
III. Improve utilization of College facilities and space
IV. Promote sustainability initiatives in the College to reduce environmental impact and improve efficiency.
Risk Assurance
I. Regular, thorough and transparent risk management will be used by the College to enhance decision making, to improve performance management and to minimize negative impacts
II. Implementation of formal risk management policies
III. Regular reviews of risk by College Managers and reporting to Governing Body
IV. Clear assessment, quantification and disclosure of risks in key planning processes
V. Consideration of specific project risks
Finance and Facilities
To implement the College’s accommodation and facilities strategy to support the delivery of high quality learning and teaching and student outcomes, promoting sustainability and respect for the environment.
Key Performance Indicators:
Successful implementation of the College Accommodation and Estates Strategy
Reduction in carbon emission and consumption of non-renewable resources
To implement a financial strategy that secures the longer term financial sustainability of the
College and the achievement of the College’s strategic aims
Equalities and Inclusion
To promote equality of opportunity for all learners and staff, and advance social inclusion by removing barriers to learning
Key Performance Indicators
Staff and student origins representative of College’s service area
Recorded instances of grievances, incidents and complaints of discrimination
Enrolments and success of students from disadvantaged and hard to reach groups and areas
Numbers of students form disadvantaged groups accessing the curriculum
Allocation of Additional Learning Support (ALS) funds
Financial Projection
Project Investment
Following table is showing the breakup of investment required for the project:
Description
Sterling (£)
Capital Invested by the Owner
40,000
Capital in the form of Bank Loan
30,000
Total
70,000
Description of Profit & Loss element
ED-WISE HUB will attract almost 500 students in first years out of them majority of students will attract toward Diploma in health and social care and diploma in hospitality. This figure of student is based in effective marketing of ED-WISE HUB. Only 80 numbers of students will be attracted toward corporate training courses. ED-WISE HUB will charge £150 as admission fee for each student excluding the students of English courses. Tuition fee includes the exam fee. Business Management, Diploma in Health & Social Care, Diploma in Hospitality and Tourism will be recognized as the backbone for the success of ED-WISE HUB. In next years number of students will also increase and the rate of fee will also increase as well.
Faculty Payroll:
Faculty Payroll
In the start, college will appoint 5 teacher and they will lead all the courses and diploma. They will be paid as per the standard rate which is GBP 20 per hour and normally 6 hours are teach by one professor. It is also assumed that one professor/teacher will teach 325 days in a year after all the public and national holidays.
Other Salaries and Wages:
Other expenses include various human resources which comprises Admin officer, Sales Officer, Accountant cum cashier, IT incharge and office boy.
Interest Expense:
Interest Expense
Description
£
Loan
30,000
Interest Rate 5%
1500
ED-WISE HUB will get the bank loan which is required for capital investment but the primary aim of ED-WISE HUB is to return the loan amount within its first year.
Financial Statements:
Profit and Loss account:
Balance Sheet:
Cash Flow statement:
Key Assumptions:
Number of students will increase as per the demand
Salaries and wages will increase as 10% per annum.
Sales and marketing expenses will increase as 10% per annum.
Premium on lease will be fixed for 3 years and will increase if it needs.
All other expenses will increase by 10% per annum.