This is a business plan – confidential in nature that outline the most exciting type of business school that can deliver huge profit potential to the investors. In this business plan, the mission and vision of the Success Entrepreneurship Business School is outlined. Besides, the various management processes are also discussed in details. The scope of discussion includes (a) marketing and sales, (b) operational management, (c) financial management, and (d) human resources management. This is not an ordinary business venture. The attractiveness of such a business venture rely partly in its ability to deliver strong financial rewards for the investors, and partyl in the founders passion in restructuring and change the educational system around the world for the benefit of the next generation.
The Success Entrepreneurship Business School is set up to deliver real life, practical and critical knowledge and educational to the students that want to learn the true small business entrepreneurship skills in the next knowledge and globalized economy. It is the aims of the business school to deliver specific education to the MBA students to set up their own business under the new business landscape. The students will be taught to acquire practical skills essential to setting up and running a small business and to learn the necessary management philosophies, experiences, knowledge and skills to bring the small businesses they founded to greater height. At the end of the day, students shall benefit from becoming a successful entrepreneurs and able to deliver significant value to the society as well as making themselves truly rich in the rewarding journey of entrepreneurship.
The Success Entrepreneurship is started off by a group by experience educators and practitioners to form a top notch and reputable business school that provide MBA degree to the students. However, the school is not set up to provide certificates to the students, but is founded with the passion to deliver true knowledge and skills to the students of the schools to become successful entrepreneurs in the new knowledge economy. In the next few decades, the business school shall become a famous and admired business school around the world for its ability to train and educate talented students to becoming those rich and famous entrepreneurs in the future.
The Success Entrepreneurship Business School is set up to deliver necessary knowledge, skills, philosophies, educations, and mental readiness and toughness for the MBA students that wish to set up their own business in the future. The MBA degree delivered by the business school is not just academic in nature, as the syllabus will be focusing in developing practical skills among the students. Besides, the teachings of the business school will be tailored to those entrepreneurs that wish to starts its own business in the future. It is a very different type of business school if compared to the conventional business school in most of the universities around the world. Instead of teaching the normal concepts and business jargons to the student, the students are expected to acquired real-life practical experiences and skills in setting up a small and successful business after the graduated and to bring the business to greater height in the future. The students will become value creators – they create wealth for themselves as well as the society and deliver significant value to the countries they venture in a socially responsible and meaningful manner.
The Success Entrepreneurship Business School will be set up in the private limited form, in which it will be owned by the investors in the project in the first stage. It is not viable to set up such a prestige and cutting edge educational provider corporations in the sole proprietorship and partnership form, as huge capital will be required.
The relevant licenses will be not an issue as the founder has deep knowledge on the UK educational system and know the procedures to apply for these licenses. In fact, the working papers as well as the required documentations to apply for such a license from regulatory agencies are already being prepared and ready for submission once the investors for the business school are found.
In this section, the various dimensions and functional areas related to management of the business school as well as the relevant strategies to bring the business school to a reputable and successful one will be discussed. Generally, the discussions will be separated into four sections as follow: (a) marketing and sales, (b) operational management, (c) financial management, and (d) human resources management.
Currently, the educational industry is a competitive one. Many traditional and contemporary business schools, colleges, and universities are available around the world. To choose where to study for a MBA degree is not an easy task for the students, as they are effectively too many choices. However, to choose the best business school is relatively easy, as there are only a few well-known business schools around the world. Thus, it is obvious that under such an environment, the profitability of the business school is highly dependent on its popularity and the recognition of society.
Besides, it is also observed that many of the business school teaching business management classes are too academic in nature. Relatively efforts are spent on teaching the students the real life entrepreneurship skills, knowledge, mental toughness, the correct mindset and the attitudes towards successes in business and life. This effectively creates a blue ocean in the business educational industry. In fact, it is not hard to comprehend that what the students want from attending a business school is to become successful entrepreneur or managers in the later days. Thus, it is critical for the educational provider to understand such a consumers demand and needs and to not just provide a platform for the students to obtain a certificates or degree that is used to decorate their resume after the completion of the MBA degree. (Remark: A detail analysis on the macro-environment and the industry competitiveness analysis are also available for the reference for investors.)
Depending on the field and the nature of the business school to be set up, the competition in the industry may differ. For example, if it is to set up a traditional business school teaching business management concepts and ideas in the traditional academic ways, the competition will be very high, as many traditional and newly set up universities and business schools are providing such services. However, there are relatively few universities or business school that are focusing on the real life and practical application of business management concept and philosophies to assist the student to become successful entrepreneur in the future. For the later, in which the business school is set up to cater a specific market niche in the educational landscape, the competition is relatively lesser and this investors can expect higher profitability from operating such a cutting edge business school.
The business school is designed to cater for a niche market segment. Firstly, it is designed to provide education to those who wanted to become successful entrepreneur in the future. Secondly, it is provided to those who wanted to start a small business on their own, or is having a small business and wanted to learn more on how to bring the business to greater height. Thirdly, it is designed to those who believe that the traditionally educational system is a failure and too academic in nature. For that, the business school will focus on more behavioral change and practical knowledge to be taught to the students. Besides, the business school will cater for those students who wish to change their personal mindset, philosophies, and attitudes not only in business, but also in their personal life. In fact, the design of the syllabus and the activities in the business school will be beneficial not only to potential entrepreneurs, but also to managers managing a small business in growing the small business entity to larger corporation in the future.
To formulate marketing strategies should not be too hard for the business school, as the market segment is viable. Firstly, advertisement on educational related magazine will be made. Besides, online and internet market strategies will be employed. Not only is that, relevant Guerilla market techniques and strategies will also be carried out. For example, social media marketing channel such as Facebook and Google will be used to promote the business school. Strategic alliances with successful educational providers such as the Anthony Robbins Foundation, Robert Kiyosaki Rich Dad companies will also be investigated. All these will surely enhance the marketing effects of the business school in a short period of time.
To operate a business school is not something to hard to do, as the founder has strong experiences and candidates that can handle the daily administrative and operational work in a university competently. There are at least ten to fifteen candidates that had decided to help up in the administration of the business school and they possess the experiences (some even having more than thirty years of experiences) in running the administrative works of a business school.
In this section, a projected income statement as well as the projected balance sheet for the Success Entrepreneurship Business School will be provided. Generally speaking, the investors can expect that the business school will be managed using conservative financial management strategies and it is one of the missions of the business to deliver strong financial rewards for the shareholders or investors in the venture. All of the projected incomes in the following sections are conservative and investors can expect to see better performance on the business school in reality. Apart from that, at the end of this section, the critical financial information for the references and decision making by the investors are also provided. The investors will be happy and surprise that such a business venture can be truly rewarding for them financially.
|Less: Sales Commission|
|– Commissions to Salesperson (10%)||100,000,000||105,000,000||110,250,000||115,762,500||121,550,625|
|– Direct Labor Costs||500,000,000||525,000,000||551,250,000||578,812,500||607,753,125|
|– Purchasing of Educational Materials||3,505,000||3,685,000||4,105,000||4,650,000||5,070,000|
|– Indirect Labor Costs||116,000||156,000||156,000||196,000||196,000|
|– Other Overhead||3,000,000||3,000,000||3,000,000||3,000,000||3,000,000|
|– Item #1: Buildings||30,000,000||30,000,000||30,000,000||30,000,000||30,000,000|
|– Item #2: Vehicles||1,000,000||1,000,000||1,000,000||1,000,000||1,000,000|
|Less: Taxes (20%)||58,475,800||62,431,800||66,547,800||70,840,800||75,387,300|
|Liabilities + Equity||300000000||300000000||533903200||783630400||1049821600||1333184800||1634734000|
Sensitivity analysis is the altering or changing of an independent input variable to see how sensitive the dependent variable is to the input variable. In our case study below, by varying sales, it is observed that the various costs elements in the income stamen will be changed, and ultimately, the net income will also be changed due to the changes in sales figure.
The Worst-Case Scenario (Sales decreased by 50%)
The Best-Case Scenario (Sales increased by 50%)
Under the sensitivity analysis, it is found that is the sales of the business varies by 50%, the expected net income figure will varies greatly. However, it is also found that even though the sales figure changes in such a large degree, the investors are still getting return on their investment as the net income is positive under both the worst case and best case scenario.
With the simulated financial statement as shown above, it is found that the NPV of the business venture is approximately GBP 500 million. The Internal Rate of Return for the Project is expected to be 35% per annum and the Return on Investment at the end of five years under the simulation is an astounding 288%. All these indicate that the business venture is a highly profitable one for the investors.
In founding a top-notch business school, human resources management is very important, as it is only by recruiting and retaining the best lecturers, practitioners, consultants and experienced entrepreneurs in the group that the business school able to deliver cutting edge knowledge, experiences and knowledge to the students – that expect themselves to becoming a highly successful and rich entrepreneurs in the future. The experienced and highly qualified educators in the business school will provide constant support to the student, to serve as the mentors to guide the student, until they successful setting up a small business and in the adventure to bring that small business to greater height in the future.
Although the business plan is obviously viable, we as the founder of the business school is nonetheless aware of possible business risk in this venture. We try to maintain independence in analyzing the viability of such business venture. The potential risks include wrong assumptions used in financial simulation, the sudden increase in competition in the educational landscape, the sudden come back of the depressionary economic environment around the world and the failure to obtain sufficient funding for such business venture.
The concept of Success Entrepreneurship Business School is a cutting edge and innovating one, as none of such ideas have been implemented successfully in a large scale around the world. Perhaps the current educational provider never sees the value such a concept can bring, or the resistance to change is too huge in the industry. However, it is not hard for investors and entrepreneurs that possess excellent visionary mindset to see the potential in such kind of business venture. Besides gaining an opportunity to reap huge financial rewards from such venture, investors can expect them to deliver significant value to the society – for better future for the next generations of human beings.
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