Diploma in Business Studies (BM111) Faculty of Business Studies Universiti Teknologi MARA, Johor Bahru. ------------------------------------------------- Madam Nor Fazlin binti Uteh, Lecturer Fundamental of Entrepreneurship (ENT 300) Universiti Teknologi MARA, Johor Bahru. 25th February 2013 Madam, SUBMISSION OF BUSINESS PLAN PROPOSAL (ENT 300) Referring to the subject stated above, we submitted this proposal of our project paper for our ENT 300 subject. This business plan is focusing on doing education service. The name of the service itself explains the tuition service that we offer. 2.
We had put our best commitment to complete this business plan according to the guidelines and requirements given according to our subject syllabus. This business plan is constructed to serve as a blueprint and guide for a proposed business venture which covers administration, financial, marketing, and operation aspects. 3. We hope that this business plan wills is prepared up to the required standard. Any comments or remarks on our project are most welcomed in order to help us improve. Thank you and best regards. Yours Sincerely, …………………………………………. Muhammad Azhar bin Mat Saruan ACKNOWLEDGEMENT
Alhamdulillah and thanks to Allah SWT, whom with his willing giving us the opportunity to complete this Business Plan and named it as Victory Tuition Centre. This final year project report is prepared for UiTM Kampus Johor Bahru. This project is basically for students in final year to complete the undergraduate program that leads to the Diploma of Business Studies. This report is based on the methods given by the university itself. Firstly, we would like to express our special thanks to our beloved Madam Nor Fazlin binti Uteh, a lecturer of Fundamental of Entrepreneurship in UiTM Kampus Johor Bahru.
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We also want to thanks to, Madam Nor Ardianty Azleen binti Abu Bakar, the Principals of Tatapan Minda Sdn. Bhd. for allow us to do benchmark at their place and also give us a lot of useful and helpful information for our project. We also want to thanks to the lecturers of Diploma in Business Studies for their cooperation during we complete the final year project that had given valuable information, suggestions, and guidance in the compilation and preparation of this final year project report.
Last but not least, deepest thanks and appreciation to our parents, family and others for their cooperation, encouragement, constructive suggestion and full of support for the report completion, from the beginning until the end. Also thanks to all of our friends and everyone, those have been contributed by supporting our work and help ourselves during the final year project progress until it is fully completed. EXECUTIVE SUMMARY Victory Tuition Centre is a new partnership company that provide educational services to customers. This company is located at Taman Setia Tropika, Johor Bahru.
Victory Tuition Centre is scheduled to operate on 1st January 2014. Victory Tuition Centre is a partnership, owned and operated by Muhammad Azhar bin Mat Saruan, Shahrul Izany bin Shahir, Lisa Nadhirah binti Hisham, Natasha binti Noor Mohamed and Nor Amalina binti A. Samad. Our target are customers that living around Kempas, Johor Bahru area. However, before we proceed to the next step, we have to consider several factors, which are the existing business opportunities, strategic location, type of business, business strategies, target market and others.
We have developed a business plan that includes all factors stated above in order to cope with problems that may occur in the future. We have chosen this type of business because we believe this type of business will face less problems and it is also has wide opportunity as it is already known in the market. Our business is operates based on our own capital with personal loan or savings, which is 25% is contributed by our General Manager, and followed by 18. 75% contributed by each partners. This has made the total capital for our business is RM 100,000.
Other than that, Victory Tuition Centre has also assembled a strong management team. Muhammad Azhar bin Mat Saruan is the General Manager of the company and followed by Natasha binti Noor Mohamed as the Financial Manager who controls the skills of financial in Victory Tuition Centre on track and profitable. Other team members are Lisa Nadhirah binti Hisham as the Marketing Manager who make sure our service existence will be known to the customers and build up a strong relationship with them, Nor Amalina binti A.
Samad as the Organizational Manager who make sure the welfare of our workers and Shahrul Izany bin Shahir as the Operational Manager who make sure the smoothness of our operations. INTRODUCTION 1. 0 INTRODUCTION In Malaysia, education is one of the important factors to drive human resources to meet the country’s vision of reaching developed nation status by 2020. So, because of this awareness and after we discuss about potential business available nowadays, we had agreed to open a partnership business which is a tuition centre and named it as Victory Tuition Centre. Our business will be open in the early year of 2014 and mainly to provide uition and educational services to people. By the means of tuition and educational services, we offered extra lessons for students range from Standard 6 until Form 5 with different environment from the school and other interesting programs for students. With the established of our business, we also hope that we will open up the young generation and the important is the Bumiputera’s mind in opening up business. Through this business, we also hope that we will help to produce quality products at the end of the day. We also want to provide quality education through our qualified and committed professionals.
What makes us different than other tuition centre is we always make sure that our teachers are achieving our standard requirements to make them qualified to teach our students. This is to ensure the quality of our service. Other than that, our business also determined to give a great competition to other competitors in order to conquer the market. Therefore, we will be able to stabilize our business and trying to get an opportunity to expand our business. 1. 1 BUSINESS PLAN PURPOSE Business plan is important because it is an opportunity for entrepreneur to access the business venture objective critically and practically.
It is important for entrepreneur to take an opportunity to gain more knowledge and experiences in the field of business. Other than that, by doing this business plan we can see our business potential in penetrating the market whether we could success or not. On the other hand, this business plan is prepared to convince venture capitalist, investors and bankers in order to raise capital and obtain support venture. This business plan is also prepared as a guideline for day-to-day management of the business and for the purpose of gaining the collaboration with the suppliers.
This business is to provide quality educational service to produce quality products at the end of the day from our learning activities. Factors why we choose this business are it’s always on demand because of the Importance of education to the young generations nowadays and to offer a different learning environment for students. 1. 2 COMPANY BACKGROUND Name of the company| :| VICTORY TUITION CENTRE| Business address| :| No 12-02,Jalan Setia Tropika 1/24,Taman Setia Tropika, Kempas, Johor Bahru,Johor. | Telephone number| :| 07-2362542| Fax number| :| 07-2363542| E-mail address| :| [email protected] com|
Form of business| :| Partnership| Main activities| :| Teaching and extra educational activities| Date of registration| :| 1st January 2014| Registration number| :| M3219749-D| Name of bank| :| Maybank| Bank acc. number| :| 151061302091| 1. 2. 1 COMPANY NAME We name as Victory Tuition Centre because of victory is other name of success and excellent that is everybody want to be . Victory is best word to describe about winning. The word tuition centre gives an impression that our business is running educational services that include tutor, extra notes and other healthy activities for students. 1. 2. 2 COMPANY LOGO
We choose this logo because it reflects our nature of business. From the logo, we can see a smiling child wearing a mortar board. This picture means that our tuition centre will produce a high quality product at the end of the day. Our students will success in their study and pass their examination with a flying colours. The sign ‘V’ in the picture stand-out for the word Victory, which is our business name. Why we choose this name is because victory brings the means of the success you achieve when you win a battle. From our point of view, education is the biggest battle for student to success in their life.
So, when they success in their study, they will have a bright future in their life. Other than that, the picture of a pencil write on a book and clock behind of it shows that we should hold on to the principle “Time is gold” in our study. This is to make sure that we would not waste our time when we study. Students must know that time is very precious if they want to achieve an excellent result. Lastly, there is a picture of a child studying with 4 colours behind of it. The red colour shows confidence and courage. Students must have a high confidence level and courage in their study. This will help them to achieve a great achievement.
Other than that, in the meanings of colour psychology, yellow is the colour of the mind and the intellect that is optimistic and cheerful. Green is the colour of balance and growth. It can mean both self-reliance as a positive and possessiveness as a negative. The last colour is turquoise. This colour means communication and clarity of mind. 1. 2. 3 FUTURE PROSPECT OF VICTORY TUITION CENTRE Long term First year To achieve the target of having average number of students which are 475 students. Our tuition centre also wants to maintain the number of students that registered in Victory Tuition Centre. Next five years
In the next five years, our mission to attract students to get the bigger number of students to register in our tuition centre. With the bigger number of students, our tuition centre will expand the demand and open a new branch of in area Johor Bahru to ensure the people registered to Victory Tuition Centre. Next ten years In the next ten years, our tuition centre will open a few tuition centres in another state in Malaysia if we get the high demand from the people or students. 1. 3 PARTNERS BACKGROUND Current position: General Manager Name: Muhammad Azhar B. Mat Saruan. Address: No 72, Jalan Bunga Kemuning 2/10,
Seksyen 2, 40000, Shah Alam, Selangor Darul Ehsan. Email: [email protected] com Phone number: 017-6263762 Date of birth: 28 March 1985 Age: 28 Marital status: Single Academic qualification: UiTM Kampus Shah Alam - MEd. Teaching English as a Second Language (TESL) (2008-2010) UiTM Kampus Shah Alam - B. Ed. TESL (Hons) (2005-2007) UiTM Kampus Segamat - Diploma in Business Studies (2003-2005) Working experience: Home tuition for pre-schoolers and primary students Communication skills: Bahasa Melayu and English Skills: Manage workers and handle organization well, able to work under pressures Current position: Administration Manager
Name: Nur Amalina Binti A. Samad Address: No. 157, Jln. Kupang 3, Skudai Kiri, Johor Bahru. Email: [email protected] com Phone number: 017-7524189 Date of birth: 10 September 1987 Age: 26 Marital status: Single Academic qualification: UiTM Kampus Arau - Bachelor of Business Administration (Hons) Human Resource Management (2008-2010) UiTM Kampus Segamat - Diploma in Business Studies (2005-2008) Working experience: One year as Admin Officer at AEON Jucso Tebrau Communication skills: Bahasa Melayu and English Skills: Able to solve problem under pressure and administrative skills Current position: Marketing Manager
Name: Lisa Nadhirah binti Hisham Address: No 14, Jalan Saujana Bistari 10, Taman Saujana, 86000 Kluang,Johor Email: lisa. [email protected] com Phone number: 017-9940014 Date of birth: 23 November 1989 Age: 24 Marital status: Single Academic qualification: UiTM Kampus Bandaraya Melaka - Bachelor of Business Administration (Hons) Marketing (2010-2012) UiTM Kampus Segamat - Diploma in Business Studies (2007-2010) Working experience: 6 months as a Customer Service at Parkson Alamanda Putrajaya Communication skills: Bahasa Melayu and English Skills: Communication skills and computer skills Current position: Operational Manager
Name: Shahrul Izany bin Shahir Address: No 2, Jalan Uda Utama 3/12 Bandar Uda Utama 81200 Johor Bharu Email: [email protected] com Phone number: 017-3580476 Date of birth: 21 September 1987 Age: 26 Marital status: Single Academic qualification: UiTM Kampus Dungun - Bachelor of Business Administration (Hons) Operations Management (2008-2010) UiTM Kampus Segamat - Diploma in Business Studies (2005-2008) Working experience: Two years in management department at Munchy’s factory Communication skills: Bahasa Melayu and English Skills: Management and problem solving technical skills Current position: Financial Manager
Name: Natasha binti Noor Mohamed Address: No. 17, Jalan Jambu 8, Taman Kota Masai, 81700 Pasir Gudang, Johor. Email: [email protected] com Phone number: 017-7941700 Date of birth: 18 January 1989 Age: 24 Marital status: Single Academic qualification: UiTM Kampus Bandaraya Melaka - Bachelor of Business Administration (Hons) Finance (2010-2012) UiTM Kampus Segamat - Diploma in Business Studies (2007-2010) Working experience: One years as Financial Assistant at Zaqi Enterprise Communication skills: Bahasa Melayu and English Skills: Computer skills, communication skills and financial skills. . 4 PARTNERSHIP AGREEMENT This agreement will bind the partners with the following aspects : Types of Business The business has been registered under the Register of Business using the name of Print House Enterprise. This business is a company that generally offers Printing services. The service line of this company is copying, printing, business card, invitation card, banner, bunting, brochures and flyers. Capital Capital is come from loan which is RM 100,000 and each partner has contributed the capital as follows: * Muhammad Azhar bin Mat SaruanRM 25,000 Muhammad Shahrul Izany bin ShahirRM 18,750 * Natasha binti Noor MohamedRM 18,750 * Nor Amalina binti A. SamadRM 18,750 * Lisa Nadhirah binti HishamRM 18,750 Period of Partner Agreement From the consent of partners we agreed that: The business had to run at least 5 years and partners are prohibited from dissolving the business without the consent of others partners resolutions to others partners. Distribution of Profits and Loss Every partner has belonging this business and the amount of the profit from this business as well. The partners will distribute profit according to capital distribution.
Any losses will be liable among partner equally according Partnership Act 1961. Prerequisite Any additional pay is to follow current profit and will be present in the end of annual financial report. Partnership Property Owned by the partnership and partners because it is not separate legal entity (Partnership Act 1961 S. 22). Death The representive of the death partners can appoint to the business under the Malaysian Law. The close member’s of the family upon the entire death partner share can make the transmission of the state. Bankruptacy or Dissolution of Partnership When the partner is found lunatic, permanently unsound mind [Partnership Act 1961 S. 37 (a)]. •When a partner permanently incapable of performing his part of the partnership contract [Partnership Act 1961 S. 37 (b)]. •When a partner calculated to affect prejudicially the carrying on the business [Partnership Act 1961 S. 37 (c)]. •When the partner wilfully or persistently commits a breach of the partnership agreement or otherwise [Partnership Act 1961 S. 37 (d)]. •When the business of the partnership can only be carried on at a loss [Partnership Act 1961 S. 37 (d)]. Whenever in any case circumstances have arisen which in the opinion of the court, render it just and equitable that the partnership be dissolve [Partnership Act 1961 S. 37 (f)]. Retirement If any partner who want to retire from the business must have consent from others partners. They will get back their invets and the notice of retirement must be given 3 months before the retirement date. Others Each of the partners must act in good faith and respect other partners. Partners must have willingness and interested to make the business more succesful and giving full commitment for the business.
They also must be honest and straight forward in order to execute responsible as a partner. We hereby fully understand and agree all the terms and conditions stipulated above: MUHAMMAD AZHAR BIN MAT SARUANGENERAL MANAGER850328-91-5047| NATASHA BINTI NOOR MOHAMEDFINANCIAL MANAGER890118-04-5194| SHAHRUL IZANY BIN SHAHIROPERATIONS MANAGER870921-14-5581| NOR AMALINA BINTI A. SAMADORGANIZATIONAL MANAGER870910-01-6602| LISA NADHIRAH BINTI HISHAMMARKETING MANAGER891123-01-5664| | 1. 5 LOCATION OF BUSINESS Victory Tuition Centre are located at Taman Setia Tropika. Location is one of important point in deciding the opportunity in one business.
Taman Setia Tropika has strategic location because it is near to schools like SMK Kempas just 1. 4 km and just take 4 minutes to arrive. and also near to Sekolah Kebangsaan Agama that is 2. 3 km and takes 5 minutes to arrive. Taman Setia Tropika is one of the development areas at Johor Bahru because its use as the main road from Bandar Dato’ Onn from kempas . The place also are near to residential areas like Taman Kempas baru and Taman Sinaran Kempas. The type of building that we choose to operates are three storey shop. The basic amenities available there are like bus services ,restaurant and ATM machines.
ORGANIZATIONAL PLAN 2. 1 ORGANIZATIONAL VISION AND MISSION Vision The vision of Victory Enterprise is ‘Creating new generation to become leaders and become a pioneer in education industry’. Mission The mission of Victory Enterprise are providing experience and quality teachers, providing useful extra notes and exercise. Besides that, we target want to open 5 centers in 2O15 around Malaysia and creating our own seminar and activities for students such as, Science discovery, Boost camp. Lastly, our mission is to be the best tuition centre in Malaysia. 2. 2 ORGANIZATIONAL CHART 2. 3 ADMINISTRATION PERSONNEL
Position| No. Of Personnel| General Manager| 1| Operational Manager| 1| Financial Manager| 1| Marketing Manager | 1| Administrative Manager| 1| Table 2. 1 2. 4 MANPOWER PLANNING 2. 4. 1 SCHEDULE OF TASK AND RESPONSIBILITIES Position| Main task| General Manager| * Leading and managing business activities towards achieving company’s goal. * Managing all the portions of all the operations of the business. * Forecast future planning and activities for the business. * Ensure the quality of organizational training is maintained to a certain level. * As a tutor for English subject. Operational Manager| * Planning schedule for classes and teachers. * Ensure the schedule in well-organized. * Planning for selecting teachers and replacement. * Help in long term planning that includes initiatives drawn towards operational smoothness. * As a tutor for Bahasa Melayu subject. | Financial Manager| * Controlling income and debtors. * Controlling cash flows-controlling payments and payables. * Predicting the possible trends of the industry. * Formulating long-term business ideas that are useful for the organization. * As a tutor for Prinsip Akaun subject. Marketing Manager| * Planning promotions * Setting short term target and ensure the target is achieved * Interface with customer * As a tutor for Science subject. | Administrative Manager| * Maintaining a safe and secure work environment. * Handling the registration of students. * Interviewing teachers. * Evaluating teachers’ performance. * Handling administration job. * Handling employees and student attendance. * As a tutor for Mathematic subject. | Table 2. 2 2. 4. 2 SCHEDULE OF REMUNERATION Position| No. | Monthly Salary (RM)| EPFCompany(13%) (RM)| EPFContribution(12%) (RM)| SOCSO(2. %) (RM)| Total Amount(RM)| General Manager| 1| 2,500| 325| 300| 62. 5O| 2,862. 50| Operational Manager| 1| 1,800| 234| 216| 45| 2,061. 00| Financial Manager| 1| 1,800| 234| 216| 45| 2,061. 00| Marketing Manager| 1| 1,800| 234| 216| 45| 2,061. 00| Administration Manager| 1| 1,800| 234| 216| 45| 2,061. 00| Teachers | 15| | | | | Panitia- (6 xRM20x 15studentsx 4days =RM7200)Teacher -(9XRM100X4 days=RM3600)| Total | | | | | | 21,906. 50| Table 2. 3 2. 4. 3 OTHER BENEFITS OFFER TO EMPLOYEES TYPES OF BENEFITS| DESCRIPTION| A weekly rest day| * All employees are entitled one rest day per week as stated in Section 59 of Employment Act. Each employee will take turn for their rest day to ensure the smoothness of the business operations. | Annual leave| * All employees earn the rights to apply for annual leaves after he or she has completed one year of service. | Emergency leave| * All employees is allow to take emergency leave as long as there is supported document of the leave such as death certificate and medical leave certificate from qualified doctors. | Public holiday| * Section 60 entitles all employees covered by the Employment Act to a minimum of 10 paid gazette public holidays per year. Public holidays :- National Day- The Yang di-Pertuan Agong’s Birthday- The State Ruler’s Birthday- Labour Day- Malaysia Day- Chinese New Year- Hari Raya Aidilfitri- Deepavali- New Year- Awal Ramadhan- Thaipusam- Awal Muharam| The Employees Provident Fund Act (EPF)| * Employers will contribute 13% to the employees’ monthly wages. * The employees will contribute 11% from their wages. | Social Security Organization (SOCSO)| * Contributions of 2. 5% on employees’ monthly wages. | Table 2. 4 2. 5 LIST OF OFFICE EQUIPMENT
No | Description | Quantity | Cost (RM)| Total (RM)| 1| Lighting | | | | | Single light| 55| 15. 00| 825. 00| | Emergency | 2| 100. 00| 200. 00| | Down light| 12| 30. 00| 360. 00| | | | | | 2| Household | | | | | Office table| 5| 85. 00| 425. 00| | Office chair| 5| 45. 00| 225. 00| | Air conditioner| 5| 1,200. 00| 6,000. 00| | Computer | 2| 1,200. 00| 2,400. 00| | Printer | 1| 400. 00| 400. 00| | Reception table | 1| 200. 00| 200. 00| | Reception chair| 2| 45. 00| 90. 00| | Telephone & fax| 1| 200. 00| 200. 00| 3| Stationary | 1| 200. 00| 200. 00| 4| Cleansing utensil| 1| 100. 00| 100. 00| | | | | | Total| | | 34,395. 00| Table 2. 5 2. 6 ORGANIZATIONAL BUDGET Items| Fixed Assets(RM)| Monthly Expenses (RM)| Other Expenses(RM)| Furniture and Fittings| 34,395| -| -| Salary (EPF&SOCSO)| -| 13,580| -| Office Rental| -| 5,000| -| Utilities | -| 1,600| -| Business Registration| -| -| 65| Total | 34,395| 20,180| 65| Table 2. 6 MARKETING PLAN 3. 1 MARKETING OBJECTIVES Marketing plan is a key for success in any business. It is prepared to outline necessary actions to take in order to achieve our marketing objectives. Other than that, it will help us as a guidebook for our marketing activities.
A good marketing plan is important to any business because it can help to boost our sales and increase our profit margins. It details out our target market, market size, sales forecast, list of competitors and others. The main marketing objective of Victory Tuition Centre is : * To attract customers to use our service that providing high quality education for students through our qualified and committed professionals and in the same time meets their needs and wants. * To develop brands awareness for people around Kempas and also for the future, in Johor Bahru. * To increase sales and fixed assets. 3. 2 SERVICE DESCRIPTION
Victory Tuition Centre services will starts on January 2014. Our service provides educational services to students. This is specifically in tutoring services and educational activities such as Boost Camp, Excellent UPSR and SPM and more. Our service is established especially for students’ age from 12 until 17 years old, and for those who will be sitting in the special examination which is UPSR and SPM. * Specification : * Satisfy needs and wants i. A conducive learning environment ii. Suitable and comfortable facilities iii. An affordable price for high quality service * High quality service iv. High qualified and committed tutors Types of services : * Tutoring service STANDARD / FORM| TYPES OF EXAM THAT WILL BE TAKEN| SUBJECTS| Standard 6| UPSR| Bahasa MelayuEnglishMathematicsScience| Form 1, 2 and 3| -| Bahasa MelayuEnglishMathematicsScienceSejarah| Form 4 and 5| SPM| Basic subjectsBahasa MelayuEnglishMathematicsScienceSejarahPrinsip AkaunAdditional subjectsAdditional MathematicsPhysicsChemistryBiology| Table 3. 1 * Educational activities v. Boost Camp vi. Excellent UPSR and SPM vii. Little Scientist 3. 3 TARGET MARKET Target market can be defined as a group of people that will basically need or want your products or services.
It is very important for us to identify our target market because it will ensure our business to operate for a long time and also ensure a profitable business. For the time being, Victory Tuition Centre’s service focuses on Kempas area, which is located in the development area. Our target market comes from the parents who have children age from 12 until 17 years old and who will be sitting for special examination. Our location is located at the development centre, which is Taman Setia Tropika. Most of the students come from Taman Setia Tropika, Bandar Baru Uda, Bandar Dato’ Onn and also Kempas.
Our than that, our location nearest to schools, which is Sekolah Menengah Kebangsaan Kempas, Sekolah Menengah Jenis Kebnagsaan (C) Kempas and Sekolah Kebangsaan Kempas. In targeting our market, we use demographic segmentation by dividing our market according to their age, which is for student age from 12 until 17 years old. 3. 4 MARKET SIZE Market size is defined as the number of certain market who is potential buyers of our service. We estimate that population in Kempas is around 100,000 people. This is the calculation for our market size : STANDARD / FORM| MARKET SIZE|
Standard 6| RM 40 x 15 students = RM 600RM 600 x 4 subjects = RM 2,400RM 2,400 x 12 months = RM 28,800| Form 1, 2 and 3| 3 classes x 15 students = 45 studentsRM 50 x 45 students = RM 2,250RM 2,250 x 5 subjects = RM 11,250RM 11,250 x 12 months = RM 135,000| Form 4 and 5| Basic subjects2 classes x 15 students = 30 studentsRM 55 x 30 students = RM 1,650RM 1,650 x 6 subjects = RM 9,900RM 9,900 x 12 months = RM 118,800Additional subjects2 classes x 15 students = 30 studentsRM 60 x 30 students = RM 1,800RM 1,800 x 4 subjects = RM 7,200RM 7,200 x 12 months = RM 86,400| Table 3. 3. 5 COMPETITORS Every business must have competitors especially for a new venture business like us. It is important to recognize the competitors, so that we can compete with them. After a survey, we have identified a few tuition centres that might be our competitors since it is located nearest to our location. Furthermore, they are also located in the Kempas area. Competitor 1 NAME OF COMPETITOR| DETAILS OF BUSINESS| Pusat Tuisyen ADAMi | 4A, Jalan Padi Emas 6/2, Bandar Baru Uda,81200 Johor Bahru, Johor. Tel : 019-7788010| Table 3. 3 STRENGTHS| WEAKNESSES| A well established business * Have more experience than us * High quality tutors * Affordable price| * Many competitors * Too many students in one class| Table 3. 4 Competitor 2 NAME OF COMPETITOR| DETAILS OF BUSINESS| Pusat Tuisyen Tatapan Minda| 21-01 Medan Aliff Harmoni 1/1,Taman Damansara Aliff,81200 Johor Bahru, Johor. Tel : 07-2329888| Table 3. 5 STRENGHTS| WEAKNESSES| * A well established business * Have more experience than us * Offers a conducive learning environment * High quality tutors| * Many competitors * Expensive price| Table 3. Competitor 3 NAME OF COMPETITOR| DETAILS OF BUSINESS| KumOn| No. 7-01, Jalan Setia Tropika 1/15Taman Setia Tropika81200 Johor Bahru, Johor. Tel : 012-714 7330| Table 3. 7 Strengths| Weaknesses| * Using special learning techniques * A well known learning centre | * Limited subjects * Expensive price| Table 3. 8 3. 6 SWOT ANALYSIS STRENGTHS| * We have recognize a few strengths of our business. The first one is our location. Taman Setia Tropika is one of the strategic places and it is in the development area. Furthermore, there is no existence of other tuition centre. Other than that, our price is also affordable to the customer. We offered a medium price compared to the other tuition centre, which is not too expensive or too cheap. This factor will help us to maintain our profits. * We also provide conducive learning environment for students. We provide a different learning environment from school. This will help the students to be more focus and enjoy the learning process in class. * Lastly, we also provide qualified and committed professionals as our tutors. Most of them have teaching experience and as an examiner in UPSR and SPM.
We also do regular evaluation for our tutors in order to maintain our business quality. | WEAKNESSES| * Our tuition centre is a new business in the industries. This factor is one of our weaknesses. We difficult to gain trust from the parents to send their children in a new place like us. | OPPORTUNITY| * Our business is located nearest to school and residential areas. We have recognized a few schools nearest to us which is Sekolah Menengah Kebangsaan Kempas, Sekolah Agama Kempas and also Sekolah Menengah Jenis Kebangsaan (C) Kempas.
We also nearest to a many residential areas such as Taman Sinaran Kempas, Taman Anggerik and Taman Bukit Kempas. | THREAT| * Our threat is comes from a few tuition centres. This is because they have operated for a long time. So, this factor shows that they already have regular customers. | Table 3. 9 3. 7 MARKET SHARE Market share before entering the business : NAME OF BUSINESS| MARKET SHARE (%)| MARKET SIZE ESTIMATION (RM)| Pusat Tuisyen ADAMi| 45| 45,000| Pusat Tuisyen Tatapan Minda| 35| 35,000| KumOn| 20| 20,000| TOTAL| 100| 100,000| Table 3. 10
Before Victory Tuition Centre entered the market, Pusat Tuisyen ADAMi has the largest market share which is 45% since their price is affordable to the customers. The price is in medium range. Other than that, this tuition centre also uses professional and experienced tutors such as examination markers. While, Pusat Tuisyen Tatapan Minda is the second largest market shares which is 35%, since this tuition centre their price is a bit expensive compared to Pusat Tuisyen ADAMi. But, one of the factors that have made their tuition centre famous is because of the focus on maintaining high quality services.
For example, they will make sure their tutors will always meet the specific standard. Lastly, KumOn is a learning centre that offered only two subjects which is English and Mathematics for students aged from 4 until 17 years old. Other than that, their price is also expensive. This has made their market size smaller than the other two tuition centres even though they are located at a development area. Market share after entering the market : NAME OF BUSINESS| MARKET SHARE (%)| MARKET SIZE ESTIMATION (RM)| ADAMi Tuition Centre| 40| 40,000| Pusat Tuisyen Tatapan Minda| 30| 30,000| KumOn| 10| 10,000|
Victory Tuition Centre| 20| 20,000| TOTAL| 100| 100,000| Table 3. 11 After Victory Tuition Centre entered the market, Pusat Tuisyen ADAMi and Pusat Tuisyen Tatapan Minda still conquered the market, which is 40% and 30% respectively, while Victory Tuition Centre has 20% of the market share and KumOn has 10% of the market share. We have 20% of the market share because our tuition centre offered an affordable price for each subject. We also use professionals and experienced tutors. Besides that, our tuition centre also located at a strategic place. So that, students from a nearby places will come registered at our place. . 8 SALES FORECAST MONTHS| STANDARD 6(RM)| FORM 1,2 and 3 (RM)| FORM 4 and 5(RM)| OTHERS(RM)| TOTAL(RM)| January| 2,400| 11,250| 17,100| -| 30,750| February| 2,400| 11,250| 17,100| -| 30,750| March| 2,400| 11,250| 17,100| -| 30,750| April| 2,400| 11,250| 17,100| -| 30,750| May| 2,400| 11,250| 17,100| -| 30,750| June| 2,400| 11,250| 17,100| -| 30,750| July| 2,400| 11,250| 17,100| -| 30,750| August| 2,400| 11,250| 17,100| -| 30,750| September| 2,400| 11,250| 17,100| -| 30,750| October| 2,400| 11,250| 17,100| Excellent UPSR and SPMRM80 x 200 students = RM16,000| 46,750| November| 2,400| 11,250| 17,100| -| 30,750|
December| -| -| -| Boost CampRM 200 x 250 students = RM 50,000Little ScientistRM 80 x 100 students = RM 8,000| 58,000| TOTAL (2014)TOTAL (2015)TOTAL (2016)| | +3%+5%| | | 412,250424,617. 50445,848. 38| Table 3. 12 3. 9 MARKETING STRATEGY Product Strategy Victory Tuition Centre is a business that provides a high quality service to its customers. The services’ quality will be maintained by doing a regular inspection towards its tutors and students. For the tutors, we will evaluate the ability of the tutors to teach and attract their students in classes.
If it is not achieve the standard required, we will take the corrective action by recruiting new tutors. As for the students, we will evaluate their performance in class. If they did not performed well, we will take corrective action by taking their parents feedback and review them back in the next evaluation. Our service also comes with package. We offered a discount to every student who takes four subjects with us. So, the price will be a bit cheaper and it is affordable by the parents. Furthermore, our service also offered a few educational activities for students.
For example, Excellent UPSR and SPM. This program is intended to help the students in the techniques of answering examination paper for each subject. So, they can score in their examination. Other than that, we also offered a program for Standard 6 students, which is Little Scientist. Little Scientist is a program that will create and attract the interest of students in Science. For a school holidays special, we offered a Boost Camp program. This is to boost the confidence and motivational level of the students. Our business also will promote more educational activities in the future.
We will follow up every customer by keep in touch with them from time to time with our activities and their children’s performance. This is to build a strong relationship with our customers and also to maintain a high profit for our business. Price Strategy Price is the value exchanged between the seller and the buyer in order for the buyer to posses, use or experience the product or service offered. So, it is important for us to know our pricing strategy in order to attract customers. If our service is expensive, customers will not use our service and try to find another tuition centre for their children.
There are few factors that we consider when we setting our price. The factors are our marketing objectives and competitor’s pricing. As we looked at our competitor’s price, we noticed that we offered a moderate price to our customers. For our service, we used product bundle pricing: STANDARD / FORM| PRICE| Standard 6| Per subject = RM 35Package = RM 140 for 4 subjects| Form 1, 2 and 3| Per subject = RM 50Package = RM 180| Form 4 and 5| Basic subjectPer subject = RM 55Package = RM 200| Table 3. 13 Common Pricing Method * Based on Competition NAME OF BUSINESS| PRICE|
ADAMi Tuition Centre| Per subject = RM 503 subject and above = RM 40 per subject| Pusat Tuisyen Tatapan Minda| Not stated| KumOn| Age 4 to 12 years old = RM 120Age 13 to 17 years old = RM 130*per subject| Victory Tuition Centre| Per subject = RM 40 until RM 60Package = Standard 6 (4 subjects for RM 140) Form 1,2,3 (4 subjects for RM 180) Form 4,5 (4 subjects for RM 200)| Table 3. 14 Place Strategy This strategy is refers to the decision made on the location of the business, while channel of distribution is a network developed to ensure our product or services reach target consumers.
Victory Tuition Centre used Level 1 distribution strategy. This strategy channelled our services straight to the customers. We consider a few factors for this type of strategy, which is our type of services that give tutoring classes to students and our target market. Other than that, we also consider the market coverage. Our market coverage is around Kempas area. Promotion Strategy In order to achieve our marketing objectives, we have used a few promotion tools. First promotion tools by using flyers. We distribute 3,000 pieces flyers, A5 size to the customers by insert it inside the newspaper and spread it to the students at schools.
Other than that, we also distribute 1,000 pieces brochure, A4 size to the customers during our special event and also to the new customers that come at our tuition centre. We also design 30 pieces bunting, size 2’x6’ to be hanging along the roadside. Besides that, we also used business card as one of our promotion tools. We provide 100 pieces of business card to each of our employees. This entire promotions tool is used in order to let people know about the existence of our business. PROMOTION TOOLS| EXAMPLE| Flyers| | Brochures| Front sideBack side| Bunting| | Business card| | Facebook| http://www. facebook. om/victorytutitioncentre| Table 3. 15 3. 10 MARKETING BUDGET ITEMS| FIXED ASSETS (RM)| WORKING CAPITAL (RM)| OTHER EXPENSES(RM)| Fixed AssetsSignboardWorking CapitalPromotionOther ExpensesGrand Opening| 2,530--| -2,000-| --1,500| TOTAL| 2,530| 2,000| 1,500| Table 3. 16 OPERATIONS PLAN 4. 1 OPERATIONAL OBJECTIVE * To ensure the business operations are cost effective to be able to compete. * Able to offer lowest price and make the highest profit margin * To measure the productivity and efficiency of the operations and to calculate the number of customers per period. 4. 2 PROCESS PLANNING SYMBOL| TYPE OF ACTIVITY| DESCRIPTION| Operation| Activity that modify transform or give values to the input| | Transportation| Transport activity occur when materials are transported from one point to another| | Inspection| Activity that measures standard of the in process material, finished product or services| | Delay| The symbol is used when in process materials restrained in a location waiting for next activity| Table 4. 1 Once the customers registered at our tuition centre, we will have them to fill up student’s form. This process has enables us to review the contract of the customers and also to know the exact number of students at our tuition centre.
After totaling up the students, we will select tutors through the interview. From this interview, we will see if the tutors have the qualification and experience to be a tutor at our tuition centre. This process is to maintain our quality service. However, this process will be repeated if the tutors did not maintain their quality of service. Other than that, if the students fees is late than the fixed date given, we will call the customers to remind them about the fees as the first warning. If the customers still not do so, reminder letters will be given.
This is because, our tuition centre generate sales from the fees collected. In class, we also will inspect the tutors and students performance. If they did not achieve the specific standard, corrective actions will be taken. For example, if the student performance is poor, we will take corrective actions by getting the parent’s feedback about their children’s performance. 4. 3 OPERATIONS LAYOUT This is our operations layout for 2nd floor. This is our operations layout for 3rd floor. 4. 4 PRODUCTION PLANNING * Calculation for output per day STANDARD / FORM| CALCULATION|
Standard 6| Average sales forecast per month = RM 2,400Price per unit = RM 40Number of output per month = RM 2,400 ? RM 40 = 60 units The number of working days per month is 4 days because 1 month has 4 classes. The amount of output to be produced per day is : = 60 units ? 4 days = 15 units per day. | Form 1, 2 and 3| Average sales forecast per month = RM 11,250Price per unit = RM 50 Number of output per month = RM 11,250 ?
RM 50 = 225 units The number of working days per month is 5 days because 1 month has 5 classes. The amount of output to be produced per day is : = 225 units ? 5 days = 45 units per day. | Form 4 and 5| * Basic subjectsAverage sales forecast per month = RM 9,900Price per unit = RM 55Number of output per month = RM 9,900 ? RM 55 = 180 units The number of working days per month is 6 days because 1 month has 6 classes.
The amount of output to be produced per day is : = 180 units ? 6 days = 30 units per day. * Additional subjectsAverage sales forecast per month = RM 7,200Price per unit = RM 60Number of output per month = RM 7,200 ? RM 60 = 120 units The number of working days per month is 4 days because 1 month has 4 classes. The amount of output to be produced per day is : = 120 units ? 4 days = 30 units per day| Table 4. 2
Product No| Description | Specification| Quantity | Cost(RM) | Total (RM)| 101| White board| 90cmx120cm| 4| 104. 00| 416. 00| 102| White board eraser| 35cmx51cmx95cm| 4| 3. 90| 15. 60| 103| Dustbin | 30cmx29cmx14cm| 9| 2. 90| 26. 10| 104| Marker pen| 17cmx1. 5mm| 12| 1. 50| 18. 00| 105| A4 papers| 8. 3 in ? 11. 7 in | 5 reams| 82. 50| 82. 50| TOTAL| | | | | 558. 20| 4. 5 MATERIAL PLANNING Table 4. 3 4. 6 MACHINES AND EQUIPMENT PLANNING No| Material and equipment| Quantity| Price/unit (RM)| Total (RM)| 1| Bookshelf| 2| 319. 00| 638. 00| 2| Books| -| 2,000. 00| 2,000. 00| | Classroom table| 30| 75. 00| 2,250. 00| 4| Classroom chair| 80| 29. 90| 2,392. 00| 5| Table| 2| 79. 90| 159. 90| 6| Chair| 4| 29. 90| 119. 60| 7| Wifi| 1| 199. 90| 199. 90| 8| Sofa| 1| 300. 00| 300. 00| 9| Module| 450| 10. 00| 4,500. 00| 10| White board| 4| 104. 00| 416. 00| 11| White board eraser| 4| 3. 90| 15. 60| 12| Dustbin| 9| 2. 90| 26. 10| TOTAL| | | | 13,017. 10| Table 4. 4 4. 6. 1 SUPPLIERS NAME OF SUPPLIERS| ADDRESS| IKEA Store| No. 2 Jalan PJU 7/2,Mutiara Damansara,47800 Petaling Jaya,Selangor Darul Ehsan, Malaysia. Tel : +(603) 7726 7777| Popular Book Co. (M) Sdn Bhd (Co. No. 13825-W)| Lot J4-06A & J4-07,Level 4 Johor Bahru City Square 106 & 108,Jalan Wong Ah Fook 80000 Johor Bahru. Tel| : | 07-221 8970 / 07-221 8971| | Inter IT Trading| 91-G Jalan Mutiara Emas 10/19, Taman Mount Austin,81100 Johor Bahru Johor. Tel : +607-2953166| Online website * Materials and Equipment * Flyers and bunting * Business cards and brochures| http://www. lelong. com. myhttp://www. facebook. com/izrekaprintinghttp://www. ninidesign. blogspot. com| Table 4. 5 4. 7 MANPOWER PLANNING No | Position | No. of Staff Required| Salary /month (RM)| EPF (RM) 13%| SOCSO (RM) 2. 5%| 1| Operation Manager| 1| 1800| 234| 54| | Part time Teacher| 15| Panitia- (6xRM75x4 days=RM1800)Teacher -(9XRM45X4 days=RM1620)| -| -| Total| | 16| 5220| 234| 54| Table 4. 6 Worker status : Our company employed part time worker and full time worker. Half of full-time employees consist of our own staff. 4. 8 OVERHEADS REQUIREMENT I. Wi-Fi a. P1 Wimax Unlimited II. Insurance b. Building Insurance 4. 9 LOCATION Our Shop Lot Our Business Card Our business is located at Taman Setia Tropika, Kempas, Johor Bahru. There are a few factors that we consider before we choose this location.
The first one is, this location is located at new development areas. There are many other business operates at the location such as bridal and restaurants. Other than that, we also noticed that there is no tuition centre at Setia Tropika. So, this has made our business as one of the potential business that may be open at Setia Tropika. Moreover, our business is located nearest to residential areas such as Taman Setia Tropika, Taman Sinaran Kempas, Taman Anggerik and others. This factor has shows that this business will have a pool of target market. 4. 10 BUSINESS AND OPERATIONS HOURS
Operation schedule Day of work| Working Hours| Monday| 1. 30 pm – 10. 30 pm| Tuesday| | Wednesday| | Thursday| | Friday| | Saturday| 7. 30 am – 6. 30 pm| Sunday| | Table 4. 7 Business schedule Day of work| Working Hours| Monday| 2 pm – 10 pm| Tuesday| | Wednesday| | Thursday| | Friday| | Saturday| 8 am – 6 pm| Table 4. 8 4. 11 LICENSE, PERMITS AND REGULATIONS REQUIRED To open a tuition centre, first we must register our business under Companies Commission of Malaysia. This is to ensure that our business is legally operates. It is done within 30 days from the date of commencement of the business.
After that, we have to gain approval from Pejabat Pendidikan Daerah (PPD) to operate a tuition centre. This has to be done to inform about our business existence, so that they will be able to inspect our business places. There are a few factors they will inspect such as the suitability of our business to operate at the places since it is involving the educational service. Other than that, PPD also will inspect our teaching syllabus in order to ensure our tuition centre is following the national education standard requirement. After we have gained the approval, we have to inform the Jabatan Bomba dan Penyelamat.
So that, they will inspect our place before we operate in order to ensure the safety requirement standard. It is a must because it is important to make sure the safety of the customers in our place. 4. 12 OPERATIONS BUDGET Items| Fixed Assets (RM)| Monthly Expenses (RM)| Other Expenses (RM)| Material & Equipment| 13,017. 10| | | Renovation | 5,500. 00| | | Salary (EPF & SOCSO) Operation manager and part time teachers. | | 5,508. 00| | Office rental| | | | Utilities | | 1,600. 00| | Total | 18,517. 10| 7,108. 00| | Table 4. 9 4. 13 IMPLEMENTATION SCHEDULE Activities| Deadlines| Durations|
Incorporation of business| January – March 2013| 3 months| Application for permits and license| January – April 2013| 4 months| Searching for business premise| February – April 2013| 2 months| Renovation of premise| April 2013| 1 month| Recruitment of labours| April – June 2013| 1 months| Table 4. 10 This is our company implementation schedule. This is the time taken to open our company. It takes one year to settle down all this activities. After one year our company will make a full operation. FINANCIAL PLAN 5. 1 FINANCIAL OBJECTIVES * To determine the required amount of capital. * To determine the increased in profit. Financial planning helps in making growth and expansion programmes which helps in long-run survival of our tuition centre. * To attract investors to invest in our business. 5. 2 FINANCIAL INPUT BUSINESS LEGAL ENTITY| 2| | | NATURE OF BUSINESS| 3| 2 = Partnership| | | 3 = Service| | Victory Tuition Centre occur a partnership for business legal entity. There are five investor that invests in the amount of capital required. Our nature of business is service. 5. 2. 1 PROJECTED EXPENDITURE Marketing Budget Particulars| F. Assets| Monthly Exp. | Others| Total| | | | | | Fixed Assets| | | | | Signboard| 2,500| | | 2,500|
Working CapitalPromotion| 3,000| | | 3,000| Pre-Operations & Other ExpenditureOther Expenditure| | | 1,500| | Total| 5,500| 2,000| 1,500| 5,500| Table 5. 1 Sales Projection SALES PROJECTION| Month 1| 30,750 | Month 2| 30,750 | Month 3| 30,750 | Month 4| 30,750 | Month 5| 30,750 | Month 6| 30,750 | Month 7| 30,750 | Month 8| 30,750 | Month 9| 30,750 | Month 10| 46,750 | Month 11| 30,750 | Month 12| 58,000 | Total Year 1| 412,250 | Total Year 2| 424,618 | Total Year 3| 445,848 |
Table 5. 2 Administrative Budget Particulars| F. Assets| Monthly Exp. | Others| Total| | | | | | Fixed AssetsLand & BuildingFurniture & Fittings| 34,400| | | 34,400| Working CapitalSalaries, EPF & SOCSORental| | 21,9075,000| | 21,9075,000| Pre-Operations & Other ExpenditureOther ExpenditureDeposit (rent, utilities, etc. )Business Registration & LicencesInsurance & Road Tax for Motor VehicleOther Pre-Operations Expenditure| | | 10,000165400| 10,000165400| Total| 34,400| 26,907| 10,565| 71,872| Table 5. 3 Operations Budget Particulars| F. Assets| Monthly Exp. | Others| Total| | | | | | | | | | Fixed AssetsMaterial and EquipmentRenovation| 13,00011,500| | | 13,00011,500| Working Capital Raw MaterialsCarriage Inward & DutySalaries, EPF & SOCSOUtilities| | 2501,600| | 1,600| Total| 24,500| 1,850| -| 26,100| Table 5. 4 Purchase Projection PURCHASE PROJECTION| | Month 1| 250| Month 2| 250| Month 3| 250| Month 4| 250| Month 5| 250| Month 6| 250| Month 7| 250| Month 8| 250| Month 9| 250| Month 10| 250| Month 11| 250| Month 12| 250| Total Year 1| 3,000| Total Year 2| 3,090| Total Year 3| 3,245| Table 5. 5 5. 3 SOURCES OF FINANCING The pre finalized investment (RM110,000)
Sources of financing | Capital Contribution | Profit Sharing Ratio| Amount (RM)| | First partner| 25 %| 27,500| | Second partner| 18. 75 %| 20,625| Personal loan and saving| Third partner| 18. 75 %| 20,625| | Fourth partner| 18. 75 %| 20,625| | Fifth partner| 18. 75 %| 20,625| | Total | 100%| 110,000| Table 5. 6 This table shows that the sources of financing of our tuition centre. The partners contribute their own capital with personal loan or savings. Profit sharing terms is a profit or loss based on income for the month or fiscal year. Our general manger contribute 25% of the capital which the amount is
RM27,500 while the other partners contributes the same amount, RM 20,625 which are 18. 75%. So, the total that the capital needed is RM110,000. 5. 3. 1 PROJECT IMPLEMENTATION COST | | | | | | | | - | PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE| Project Implementation Cost | Sources of Finance| | | Requirements| Cost| Loan| Hire-Purchase| Own Contribution| Fixed Assets | | | | Cash | Existing F. Assets| Land & Building| | | | | | Furniture and Fittings| 34,400 | | | 34,400 | | | | | | | | | | | | | | | | | | | | Signboard| 2,500 | | | 2,500 | | | | | | | | | | | | | | | | | | | Material and Equipment| 13,000 | | | 13,000 | | Renovation| 11,500 | | | 11,500 | | | | | | | | | | | | | | Working Capital| 1| months| | | | | | Administrative| 26,907 | | | 26,907 | | Marketing| 3,000 | | | 3,000 | | Operations| 1,850 | | | 1,850 | | Pre-Operations & Other Expenditure| 12,065 | | | 12,065 | | Contingencies| | | | | | | | | | | | | | | | TOTAL| | | 105,222 | | | 105,222 | | Table 5. 7 DEPRECIATION SCHEDULE Fixed Asset| Furniture & Fittings| Cost (RM)| 34,400| | Method| Straight Line| |
Economic Life (yrs)| 5| | | Annual| Accumulated| | Year| Depreciation| Depreciation| Book Value| | -| -| 34,400| 1| 6,880| 6,880| 27,520| 2| 6,880| 13,760| 20,640| 3| 6,880| 20,640| 13,760| 4| 6,880| 27,520| 6,880| 5| 6,880| 34,400| -| Table 5. 8 | | | | | | | | | | | | | | | | | | | Fixed Asset| Signboard| Cost (RM)| 2,500| | Method| Straight Line| | Economic Life (yrs)| 5| | | Annual| Accumulated| | Year| Depreciation| Depreciation| Book Value| | -| -| 2,500| 1| 500| 500| 2,000| 2| 500| 1,000| 1,500| 3| 500| 1,500| 1,000| 4| 500| 2,000| 500| 5| 500| 2,500| -| Table 5. 9 Fixed Asset| Material & Equipment|
Cost (RM)| 13,000 | | Method| Straight Line| | Economic Life (yrs)| 5| | | Annual| Accumulated| | Year| Depreciation| Depreciation| Book Value| | -| -| 13,000| 1| 2,600| 2,600| 10,400| 2| 2,600| 5,200| 7,800| 3| 2,600| 7,800| 5,200| 4| 2,600| 10,400| 2,600| 5| 2,600| 13,000| -| Table 5. 10 Fixed Asset| Renovation| Cost (RM)| 11,500| | Method| Straight Line| | Economic Life (yrs)| 5| | | Annual| Accumulated| | Year| Depreciation| Depreciation| Book Value| | -| -| 11,500| 1| 2,300| 2,300| 9,200| 2| 2,300| 4,600| 6,900| 3| 2,300| 6,900| 4,600| 4| 2,300| 9,200| 2,300| 5| 2,300| 11,500| -| Table 5. 11 5. PRO-FORMA CASH FLOW STATEMENT 5. 5PRO-FORMA INCOME STATEMENT | | | | | | | | VICTORY TUITION CENTRE| PRO-FORMA INCOME STATEMENT| | | | | | | | | | | | | | Year 1| Year 2| Year 3| | Sales| 412,250 | 424,618 | 445,848 | | Less: Cost of Sales| | | | | Opening stock| | | | | Purchases| | 3,000 | 3,090 | 3,245 | | Less: Ending Stock| | | | | Carriage Inward & Duty| | | | | | | | | | | | | Gross Profit| 409,250 | 421,528 | 442,603 | | | | | | | Less: Enpenditure| | | | | Administrative Expenditure| 322,884 | 322,884 | 322,884 | | Marketing Expenditure| 36,000 | 36,000 | 36,000 | Other Expenditure| | | | | Business Registration & Licences| 165 | | | | Insurance & Road Tax for Motor Vehicle| 400 | 400 | 400 | | Other Pre-Operations Expenditure| 1,500 | | | | Interest on Hire-Purchase| | | | | Interest on Loan| | | | | Depreciation of Fixed Assets| 12,280 | 12,280 | 12,280 | | Operations Expenditure| 19,200 | 19,200 | 19,200 | | Total Expenditure| 392,429 | 390,764 | 390,764 | | Net Profit Before Tax| 16,821 | 30,764 | 51,839 | | Tax| | 0| 0| 0| | Net Profit After Tax| 16,821 | 30,764 | 51,839 | | Accumulated Net Profit| 16,821 | 47,585 | 99,424 | Table 5. 12 . 7PRO-FORMA BALANCE SHEET VICTORY TUITION CENTRE| PRO-FORMA BALANCE SHEET| | | | | | | | | | Year 1| Year 2| Year 3| ASSETS| | | | | | | | | | | | Non-Current Assets (Book Value)| | | | | Land & Building| | | | | Furniture and Fittings| 27,520 | 20,640 | 13,760 | | | | | Signboard| 2,000 | 1,500 | 1,000 | | | | | Material and Equipment| 10,400 | 7,800 | 5,200 | Renovation| 9,200 | 6,900 | 4,600 | | | | | Other Assets| | | | | Deposit| 10,000 | 10,000 | 10,000 | | | | | | | | | | 59,120 | 46,840 | 34,560 | Current Assets| | | | | Cash Balance| 63,173 | 106,307 | 170,581 | | | 63,173 | 106,307 | 170,581 | | | | | | | TOTAL ASSETS| | 122,293 | 153,147 | 205,141 | | | | | | | Owners' Equity| | | | | Capital| | 105,222 | 105,222 | 105,222 | Accumulated Profit| | 16,821 | 47,585 | 99,424 | | | | 122,043 | 152,807 | 204,646 | Long-Term Liabilities| | | | | Loan Balance| | | | | Hire-Purchase Balance| | | | | | | | | | | Current Liabilities| | | | | Accounts Payable| | 250 | 340 | 495 | | | | | | | TOTAL EQUITY ; LIABILITIES| | 122,293 | 153,147 | 205,141 | Table 5. 13 5. 7FINANCIAL ANALYSIS VICTORY TUITION CENTRE| FINANCIAL RATIO ANALYSIS| Year 1| Year 2| Year 3| | | | | PROFITABILITY| | | | | Net Profit Margin| 4. 08%| 7. 24%| 11. 63%| | Return on Assets| 12. 71%| 18. 86%| 24. 10%| | Return on Equity| 13. 78%| 20. 13%| 25. 33%| | | | | | SOLVENCY| | | | | Debt to Equity| 0. 20%| 0. 22%| 0. 24%| | Debt to Assets| 0. 19%| 0. 21%| 0. 23%| | | | | | Table 5. 14 5. 7. 1GRAPH Profitability Graph 5. 7. 1 shows a Net Profit Margin The graph above shows the net profit margin for our business. This ratio indicates the pricing strategy adopted by the firm. The first year shows a net profit margin is 4. 08%. The percentage increases to 7. 4% at the second year and this indicates that our business generate higher on net profit. In third year, the percentage increases to 11. 63%. Graph 5. 7. 2 shows a Return on Assets The graph above shows return on assets of our business. This ratio indicates the management’s ability to make profits from the business’s investments in assets. The first year shows the percentage of return on assets is 12. 71% and on the next year the percentage increases to 18. 86%. In third year, the percentage also increases to 24. 10%. This show the higher return on assets in investments. Graph 3 shows a Return on Equity
The graph above shows return on equity of our business. This ratio indicates the management’s ability to make profits from the business’s investments in equity. The first year shows the percentage of return on equity is 13. 78% and increase in the next year which is 20. 13%. In the third year, the percentage is 25. 33% which is still increasing good for profitability of our company. Solvency Graph 5. 7. 4 shows a Debt to Equity The graph above shows a debt to equity in this business. The ratio indicates the proportion of equity and debt the company is using to finance its assets.
The first year shows the percentage of debt to equity is 0. 20%. In the second year, the ratio become higher to 0. 22% and also increases in the next year. Less than 1 ratio shows that most funds are provided by shareholders. Graph 5. 7. 5 shows a Debt to Assets As we can see in the graph above, it shows a debt to assets of the business. The debt to assets indicates the proportion of a company’s assets which are financed through debt. The first year shows the percentage of 0. 19%. While in the second year, the percentage decreases to 0. 21% and become higher 0. 23% in the third year.
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