business plan - name of school - burt systems

7/30/2019 Business Plan - Name of School - Burt Systems

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Entebbe Applied Academy

Draft Business Proposal

An English-modern Kindergarten and Primary School

By

MUHANGUZI CUTHBERT


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Table of Contents

I. Executive Summary

II. School Overview2.1 Vision2.2. Mission Statement2.3 The Business Opportunity and Need2.3.1 School Description2.3.2 School Premises2.4 Capital Requirements

III. School Services3.1 Overview

3.2 Student Learning3.3 Student Services3.4 School Operation3.5 School Finance and Accounting3.6 Student Auxiliary Services

IV. The Market4.1 Education Market Analysis4.2 Central Uganda Demographic Information4.3 Entebbe Municipality Demographic Information4.4 Profile of Direct Competitors4.5 Competitive Analysis and Strategy

V. Marketing Plan5.1 Marketing Overview5.2 Branding Strategy5.3 News Paper Advertising5.4 Signage5.5 Internet Marketing

VI. Management and staff6.1 Executive Management6.2 Staffing and Teachers

VII. Operational Plan7.1 Operational Overview7.2 Facility Layout7.4 Facilities and Library7.5 Campus Safety7.6 Accounting, Billing, and Collections7.7 IT Infrastructure

VIII. Financing and Growth Strategy8.1 Capital Requirements8.2 Financial Strategy8.3 Risk AnalysisIX. Financial Plan9. 1 Three-Year Budget Plan


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9.2 Revenue Model9.3 Expense Assumptions9.4 Income and Expense Estimates

AppendixAppendix A. Income and Expense Details for three YearsAppendix C. Competitor 1 Fee StructureAppendix D. Competitor 2 Fee ScheduleAppendix E. Competitor 3 Fee ScheduleAppendix F. Salaries based upon the recommendation by the MOE (the most recent) of

Uganda


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Executive Summery

Nelson Mandela said Education is the most powerful weapon which you can use to change theworld and education is at the heart of all the work we do at S.A.L.V.E. International. Education, bothformal and informal, can give you the knowledge, skills and confidence to build a better future.

In Uganda many people are competing for a limited number of good jobs, and without a decenteducation it is very hard to get one or have the confidence to initiate your own business instead.According to the World Bank Uganda has 83% youth employmentone of the highest rates in theworld.

Getting access to education in the first place can be a huge challenge. In 1997 the Ugandan governmentintroduced universal primary education (the idea that all children should be able to attend primary schoolfor free) and in 2007 universal secondary education. Unfortunately the demand for free educationoutstrips the availability of places at the free government schools. It is not uncommon for classes to havewell over one hundred students, with very little in the way of facilities, and demotivated, over-workedteachers heading them. This means that for most of the population, especially those who want a higherquality education, the only other option is private school.

It is so clear that most private schools are blinded by profit taking, admitting pupils more than a class canhandle and the teachers generally faced with such large class sizes and poor resources that it is incrediblydifficult for them to give one-to-one attention to those students who need it most.

The education system today caters for cram-work instead of understanding. That is why we produce half -baked children-the curriculum is exam oriented, not children's understanding. Passing has beencommercialised; there is a lot of undue competition with the so-called good schools and this meansstudents are "pumped" with so much information, more than they can read and understand. Coupledwith the above is the computer era, where students imagine the computer can do everything for them.

We propose to establish a school in Entebbe that will divert away from the current education system andrevert to the traditional education systems while infusing one-on-one education practices to producebright and practical minds for the development of our nation.

Entebbe Applied Academy will be a top-notch and English-medium kindergarten and primary schoolimparting quality education to children in the city of Entebbe, Wakiso, Uganda.

This is a draft business plan is to help the proprietors understand the dynamics of the education marketthat Enetebbe and the entire country face and recognize the unique opportunity to start an Infant andprimary school. We believe that the education market in its continuous growth stage and that we areuniquely positioned to successfully start and manage a KG and Primary School in Entebbe.


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2.0 Overview

2.1 Vision

Entebbe Applied Academy is committed to open life-changing opportunities for children through qualityeducation. Education will always be a combination of cognitive, social, emotional, physical and vocationalstimulation. In this way a person can develop holistically as a unique human being within her/his specificcontext and as a member of the wider community. Our motto is Imparting good education is the bestcommunity service.

2.2 Mission Statement

Our mission is to support a model high quality international level school offering a cost-effective, broad,and challenging educational program to infants and pupils in the greater Entebbe Municipality, and later

to the whole country.

A quality education is in short supply in those parts of Uganda. Children and their families are caught in avicious circle of ignorance and substandard education services. They are unable to break the shackles ofthe gripping profit minded educators and ignorance. Quality and affordable education is a major way todeal with this dire situation.

Entebbe Applied Academy believes that through quality education, the cycle of exclusion, poverty,domestic violence and breakdown of families can be broken. However, our understanding ofeducationmeans more than just a good grade.

2.3 The Business Opportunity and Need

Entebbe is everythingit is a destination for seekers of leisure, security, and jobs. The UN missions havealso helped to get the former colonial town, out of its former slow-paced shadow. With the growingpopulation of high income earners, demand for quality schools is increasing at a tremendous pace.

UBOS estimated the population of Entebbe at approximately 79,700 in 2011 with enrolment of pre-primary at 1029 children, for primary schools is 13425 Children and that of secondary schools is 6009students for both private and government aided schools. There are 103 Schools with about 50 privatelyowned and the rest community or government sponsored. Considering the continued crumblingcontribution of UPE/USE educations systems coupled with Ministry of Educations very poor educationinspection and monitoring mechanism of these schools, the private schools competition is set so low andthe demand for high valued education continues to shoot up in Entebbe. There are about 10International level education centres in Entebbe.

This gives Entebbe Applied Academy a great field stretch to enjoy competition in the education businessin Entebbe.

2.3 .1 School Description

Entebbe Applied Academy, a truly English medium senior primary school, is a start-up high qualityeducational institution. The school will be looking to lease premises for the start-up of KG classes 1-3 ona yet decided location in the suburbs of Entebbe Wakiso District, Uganda.


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EAA programme will be based on the PLAY-WAY method of pre-school education that is advocatedfor by the International and Ugandan National Curriculum Development Association. Children areencouraged to develop all aspects of their learning potential in a stimulating environment. Learners willnot be forced to participate or contribute. Children will be encouraged to participate in the schoolactivities and to develop a natural love for learning. Pre-reading, pre-writing and pre-maths activities willbe introduced as fun activities, designed to stimulate the childrens interest in learning the Kindergarten.

Entebbe Applied Academy (EAA) will have a strong academic program that prepares children for asmooth transition into primary and secondary school (National and International schools). At entry, EAAgraduates will stand out as self-confident, capable and independent learners. The daily school programwill provide a wide range of social, academic, musical, artistic and other creative activities.

2.3 .2 School Premises

The proposal plan is to start by renting premises for the first phase of the School. The next phase wouldbe to have all necessary government approvals and formalities in place to start building the school. Figure

2 shows the schools land and the buildings. Figure 3 shows an artists rendering of the completed schoolbuilding. It has four wingswest, north, east, and south. These wings will have classrooms, laboratories,and offices. The eastside extension in the background will house a multipurpose hall and additionalrooms.

Figure 2. A sketch showing the proposed school land and buildings


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Figure 3. Artists rendering of the proposed school building

The plan is to build the school in stages. In the first stage, the school will have classes from KG to 4thgrade. A new grade will be added every year after that. In the first stage, 11 classrooms, one office, oneteachers residence (housing for 11 teachers), and one principal's residence will be built. The on-campushousing for teachers will enable us to attract better teachers.

These rooms will allow us to have first class Recreation rooms, Computer lab, and a library in addition tothe classrooms. In the second stage of construction, three additional classrooms, additional office space,and a multipurpose hall will be added by the beginning of the fifth year of operation.

2.4 Capital Requirements

The proprietors will require USH 166,660,000 funds to help lease school premises and support its initialoperation. The funds will help take care of rent, administration fees, salaries, teaching material, utility billsand daily school finances

The school is expected to become self-sustaining in the 5th year of its operation. At which point that willenable the school to build a total of 20 classrooms including 3 social centres, 2 laboratories (science and

computer labs) and one library, three office rooms, teacher housing for accommodating up to 16teachers, one principals residence, and a multipurpose hall.

Table 2 in section 9.1 shows the 5 year budget plan. The requested capital will enable the school tobecome self-sustaining and to have enough building space to run classes up to the 7th grade. The details ofthe five-year budget and other financial data are discussed in the financial plan section of the businessplan.


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School Services

3.1 Overview

The school will offer an ideal setting for students to get quality education. Each student will be treated asa valuable customer who expects the best learning environment. Teachers and other employees of theschool will be treated with respect. The school will engage in the following major activities:

1. Manage student learning

2. Manage student services

3. Manage School operation

4. Manage finance and accounting

5. Manage auxiliary services

These activities will go through a periodic assessment of their performance. Each of these major activitiesis briefly described below.

3.2 Student Learning

Student learning activity deals with the design and implementation of various curricular programs atvarious levelsKindergarten (KG1-3) and primary 1-7;

3.2.1 Kindergarten

The goal is the development of the child's social, mental and motor skills in a playful learningenvironment. The teaching methods employed, and the games and toys used at EAA Kindergarten will bebased on the educational theories of Friedrich Frbel and Maria Montessori. Due account is taken of thecultural requirements of the country concerned and the teaching is tailored to the local culture.

Stimulating children's talents

In addition to regular kindergarten activities, pre-school programmes are provided, designed to stimulateyoung children in line with their talents and prepare them for admission to primary school. Coachingprogrammes are also available for children with special needs. EAA Kindergarten program will bedesigned based on:-

The program will be based on accepted theories of child development.

The program will be individualized to meet the need of every child

Each familys culture will be respected and family members encouraged to participate in the program

The physical environment should be safe, healthy and contains a variety of toys and materials that are

both stimulating and familiar.

Children will select activities and materials that interest them and they will learn by being actively

involved.

Adults will show respect for children and interact with them in caring ways.

Staff will have specialized training in child development and appropriate programming.

3.2.2 Primary School


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We believe in child-centred education which respects the individual child as a resourceful, capable, uniquehuman being who actively participates in her/his own development process and respects diverse learningstyles and learning needs. Teachers and principals are the key to child-centred quality education and areactively encouraged to further their professional skills.

EAA will run the National Curriculum set by the National Curriculum Development Centre (NCDC)with English, Mathematics, Basic Science, Social Studies and R.E as the four subjects examined by UNEBat primary seven level.

In the lower Primary section (P.1- P.3), we will run the Thematic Curriculum which was introduced bythe Ministry of Education & Sports some years ago with literacy and numeracy as its cornerstones.Alongside the above; we will have French, Art and Crafts and Computer Studies. We will also havePhysical Education, indoor and outdoor games like football, swimming, badminton, wood ball, tabletennis and more. Clubs and societies like Red Cross, Wildlife, Scouting, Home Economics, and Writers'Club form part of our range of co-curricular activities.

3.3 Student ServicesStudent services activity involves recruitment, admission, guidance, counselling, health, etc. A well-defined process will be used to recruit and admit pupils. A screening test will be given to ascertain theknowledge and deficiency for incoming-students. This process will enable the school to identify fittingstudents who but may need some remedial work in order to get up to speed with the rest of the students.The school will have a well-equiped student-health, first-aid services and keep immunization records.

3.4 School Operation

School operation activities involve maintaining the infrastructure such as recreation centres, library,Information Technology (IT), building, and other facilities. It also involves maintaining the inventory of

supplies, equipment, and other assets as well as managing the security of the campus and the pupils.

3.5 School Finance and Accounting

Finance and accounting activities relate to strategic planning, budgeting, financial management,accounting, state and ministry of education rule compliance, implementation of plans, etc.

3.5 Student Auxiliary Services

Auxiliary services will involve management of extracurricular activities, recreational activities, communityservice activities, student transportation, etc.


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The Market

The education sector in Uganda is one of the most robust, with good export potential. This involves

institutions at all. Due to the liberalization programme in the sector witnessed in the 1990s, the privatesector participation has been encouraged in the education sector. The sector has thus proactively attracted

sizeable proportions of international students contributing to national export earnings (approximately

US$30 million in 2005) through cross border mode of supply. In 2006, foreign student enrolment in

tertiary institutions in Uganda reached 6,930 enrolling in both kindergarten and primary levels.

4.1.1 Investment in Primary Education

Ugandas success in expanding primary education with more than doubling primary school enrolment

from about 3.5 million in 1997 to over 8 million by the end of 2010has created enormous investment

opportunities for private investors in the post-primary education levels. The number of pupils who sat

their primary leaving examinations in 2010 were 520,000 yet less than a half of them are expected to beadmitted to senior one in 2011 due to lack of space and other facilities. This level calls for more

investments to be able to cope with the numbers of pupils benefitting from the Universal Primary

Education programme.

4.1.2 Investment in pre-primary level of education

Of all the 2,469 schools under pre-primary category as of 2010, 75% of them are owned by the private

sector and the rest by the community. Government currently does not own any pre-primary school

although increasingly it is getting interested in standardizing its curriculum. With most primary schools

giving admission preference to pupils who have attended pre-primary, the number of pre-primary schools

will closely follow those of the primary schools overtime. Opportunities for investment are abound in thissegment of education.

4.1.3 Education demand by foreigner

The primary and secondary education enrolment by foreigners tends to be largely driven by parents who

come and stay in Uganda, mainly by their virtue of their job placements. The accompanying children then

enlist in good quality schools whose curricula and facilities are acceptable to parents. In the tertiary

institutions, the enrolment tends to be driven by the students quest for good, affordable and competitive

schools in the region. By end of December 2010, the Ministry of Education and Sports indicated that

private investment was highest in primary education as shown in the Figure 7. The private sector owned

about 58% of the secondary schools in 2009 compared to 47% in 2006. Over time, it is likely that theincrease in the number of schools will be largely propelled by the enlistment of the private sector

investment in the education sector.

Recent studies estimate the global market trend for education services at US$30 billion. World leaders in

export of education services include: the USA, UK and Australia, etc. Ugandas education sector attracts

students mostly from neigbouring countries. In 2005 for instance, Uganda attracted 20,716 students from

Kenya, 5,211 from Tanzania, 2,457 from the Sudan, 1,228 from Rwanda and 2,435 from the Democratic

Republic of Congo. Other countries are: Burundi, Zambia, Eritrea, Ethiopia, Cameron, Somalia, and

India. The EAC and the COMESA regions are therefore the major sources of foreign students to

Uganda.


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The proportion of schools founded by the entrepreneurs increased from 29% in 2006 to 32% in 2009

while those founded by the Catholic Church and Church of Uganda respectively reduced by 1% and

1.8%. Figure 8 depicts that more and more categories other than government continue to found more

schools as they view these ventures as profitable business cases for investment in the education system.

The entrepreneurs will continue to dominate this sector for the foreseeable future as long as the policies

continue to encourage private sector investment.

Entebbe Applied Academy has a focus on meeting the local need for child care services withinEntebbe. Children are taken in flexibly on either a full-time or part-time basis. The Entebbe AppliedAcademy Kindergarten is targeting one specific customer group, the middle to upper class, doubleincome professional families. These groups of families have both parents working, not allowing them

time to raise their child during the day.

These groups has the money for child care, and are willing to spend a little extra to get a higher levelof care. This customer segment has already begun teaching its child advanced concepts like reading,singing, socialization, etc. The EAA will continue to develop the children's skills. This customergroup is typically made up of two professional parents. This would explain why the parents 1) have

the money for more sophisticated child care, and 2) are ambitious in terms of their children's learningand development.

4.2 Competition

There are mainly two types of kindergartens in EntebbeCommunity aided and private aided pre-primary schools and daycare. On the other hand Entebbe has three types of Primary schools -government schools, government-aided private schools, and private schoolsin Entebbe.

Private schools account for about 40% of the primary enrolment. Private schools are funded completely

through school fees and donations. Aided private schools receive government grants-in-aid and work verymuch like government schools. Private schools have to follow state regulations, but they have moreautonomy regarding curriculum, medium of instruction, types of students admitted, fee level, and student-teacher ratios. There are about 58 private schools and pre-primary. Some of the well-known privateschools in EntebbeWakiso region are Entebbe School, Taibah Junior School, Entebbe ChristianSchool, and Entebbe School.

Entebbe Junior School (EJS)was established as a public school in 2000 in Entebbe, kitooro on theAirport Highway. It is a private institution run by the Omamteker family. The school runs a daycare, pre-primary and primary services with boarding section with self contained dormitories and a sick bay. EJSruns a dual curriculum - Ugandan Curriculum set by the National Curriculum Development Centre(NCDC) and examined by Uganda National Examinations Board (UNEB) at Primary Seven level and the

Cambridge International Primary. EJS enrols pupils from all over East Africa.

Taibah Junior School (TJS)was founded in 1994 as private school running programs fromkindergarten through to primary 7. Taibah JS offers both the Ugandan curriculum and British curriculum.The Ugandan curriculum prepares the children for national examinations while the British curriculumprepares them for Cambridge International Primary Programme. TJS has of 2012 attained internationalstatus by enrolling children from around the world.

Entebbe Christian School (ECS)is a private owned was founded in 2001 in Lunyo Entebbe

Others Include:


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SOS KindergartenAbaita Entebbe

Kissyfur International School Entebbe

Entebbe Modern School

Joy Infants Primary School

Tom & Jerry School

St. Johns Kindergarten

Crownland pre-primary & Primary School

Entebbe Early Learning Centre

4.3 Entebbe Demographic Information

Entebbe is a major town in Central Uganda. Located on a Lake Victoria peninsula, the town sits the StateHouse, the official office and residence of the president of Uganda and the International Airport,Ugandas largest commercial and military airport and the Largest UN Base in Africa. Entebbe is a majortown in Central Uganda. Located on a Lake Victoria peninsula, the town sits the State House, the officialoffice and residence of the president of Uganda and the International Airport, Ugandas largestcommercial and military airport.

Entebbe has slightly over 103 schools with half of that number privately owned and the otherGovernment or Community sponsored. With many the high creation on jobs by the many organisationsestablishing base in Entebbe and moving to create residence in the area, demand for high quality

education school is high.

4.4 Profile of Direct Competitors

Entebbe Municipality has several private schools. The popular schools are:

1. Entebbe Junior School2. Taibah Junior School3. Entebbe Christian Academy

However, the direct competitors are the two private schoolsEntebbe Junior School and Entebbe

Christian Academy. They are both located in close proximity with 4 km apart. They are considered someof the better quality schools. Most of the private schools hire teachers on a contract basis. They alsounderpay their teachers. For example, according to several reliable sources, a primary school teacher inwakiso is paid between USH 250,000 and USH 400,000 depending on the grade. A teacher with similarqualifications is paid about USH 300,000 by government schools.

Private schools can hire teachers at a lower salary because there are a lot of unemployed teachers willingwork at a lower salary. The management at most of these schools tends to be quite unprofessional andpays little interest in the welfare of students and teachers. This situation creates two problemslowmorale among the teachers and a sub-par education. Teachers are not properly respected. Low paidteachers end up doing outside-tutoring in order to supplement their salary and show only luke-warminterest in the schools at which they are teaching.
http://en.wikipedia.org/wiki/Central_Region,_Ugandahttp://en.wikipedia.org/wiki/Central_Region,_Ugandahttp://en.wikipedia.org/wiki/Central_Region,_Ugandahttp://en.wikipedia.org/wiki/Central_Region,_Uganda


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Marketing Plan

5.1 Marketing Overview

Entebbe Applied Academy will use a dynamic marketing campaign to achieve branding and promotevisibility in the city as well as in the region. The school plans to initially establish brand visibility withinthe local community market of the Entebbe Municipality and eventually expand into the regional statemarket. Currently children of this region easily travel 6 to 20 kilometers to attend a good school. Schoolbuses transport students from home to school and back. The school will involve itself into volunteeringwork in and around the city in order to create a more positive and true image of the school.

The following marketing strategies will be integral in generating sustainable revenue and growth.

5.2 Branding Strategy

Entebbe Applied Academy will bring to educational market a high quality educational experience byproviding excellent facilities and service to students and teachers. The branding objectives for EntebbeApplied Academy will focus on building credibility for its high quality education at a competitive price,backed by highly qualified teachers and an active learning infrastructure. The school will strive forexposing students to British English speaking and teaching. It will establish collaboration with the Britishwhere university students will do internships at the school and teach English to primary students. Theschool will hope to build a reputation for its educational program. Entebbe Applied Academys brand willeventually convey the following five strategic goals:

Excellence in well-rounded education

Focus on quality and relevance

Exceptional Social and Family Values

Excellent learning and teaching environment Educational outreach

5.3 News Paper Advertising

Spotlight Ad and Informational Ad about the school and its activities will be published in the local andother newspapers regularly.

5.4 Signage

The school will feature prominent signage along walls that are visible to walk-by and drive-by traffic. Thesigns will be large banners that garner attention of individuals that pass by the school facility.

5.5 Internet Marketing

Entebbe Applied Academy will implement a variety of Internet marketing techniques to promote its

brand, mission, and services. The school will use website, email marketing, blogging, and social media to

reach various kinds of families in the community. Website will be a base for pupils information. The

website will become an accessible source of information about the school and its services.

5.6 Door to door marketing


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BUSINESS MODEL

This Business Model is based on that Entebbe Applied Academy will start-up as a kindergarten & crchecentre which is for the children from age of 2 Years to 6 years and as far as future prospects areconcerned, the company is planning to develop into a primary school to retain children from KG.

The business model itself is an important determinant of the profits to be made from an innovation. Amediocre innovation with a great business model may be more profitable than a great innovation with amediocre business model.

The business model is simply a working description that includes the general details about the operationsof a business. There are major six components of Business Model

1. Value PropositionWhat will make Entebbe Applied Academy different from many programs is our decision to limitenrolment to small group size approx.25 with more than adequate staff to ensure a satisfying experiencefor children and families. For shy or introverted children, it is sometimes a struggle to find a comfort levelin a large group. Our staff understands child growth and development and makes a point to adapt theirstyle of interaction to the specific needs of your child. We will offer uniquely premium child careservices, as measured by the curriculum and activities offered, experience and educational level of theinstructors & parents involvement.

2. Market SegmentsEntebbe Applied Academy will compete well in market by offering competitive prices, high-quality childcare services, and leading-edge educational programs with certified, college-educated instructors, and bymaintaining an excellent reputation with parents. Childrens are taken in flexibly on either a full time orpart time basis

Part time working couplesThe ongoing trend of Entebbe reveals that the full time working couples are comparatively lessbut approximately comprise of 30% of total client base

Full time working couplesPart time working couples will become a major client base i.e. approximately 50%.

OthersThere are some other families also for whom high quality education is important or who what toprovide a very strong base education to their children, comprise of approximately 20%.

3. Value Chain structureValue is primarily a combination of quality, service and price. Value Chain Analysis is an organizedapproach to explore the progress of competitive advantage. The chain consists of a series of activitiesperformed by a firm in the creation, development, marketing & support of its product or services. Theproduct or service offering will be successful if it delivers value and satisfaction to the target buyer whochooses between various market options on the basis of what they perceive to hold most value.

Inbound logisticsAs for the Entebbe Applied Academy Kindergarten, the inbound logistics are children aged 2 - 6 yearsold who are enrolled to study Crche and Kindergarten education.

Operations

Entebbe Applied Academy exists to provide premier child care services that are aimed at enhancingtraditional day care methodologies, introductory reading (Jolly phonics), painting, writing and integrating


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extracurricular interests (such as arts and crafts, dance, theatre and gymnastics) into one comprehensiveprogram. Our developmental programs will reinforce basic social, listening, independence and motorskills and prepare students for future related interaction.

Outbound logistics

The outbound logistics of the kindergarten is when the children graduate from basic pre-school educationat the age of 5/6 where they are prepared and trained to be able to cope with primary school education.

Marketing & salesMarketing in the child care industry depends largely on reputation and referral. In Uganda, Word ofmouth is the best instrument of marketing &promotion strategies as people rely on their neighbourhoodmore rather than print & media advertisements. The company will be giving more emphasizes onproviding quality care so that good word of mouth can be spread.

ServicesBasically, Entebbe Applied Academy will provide education from the level of nursery(age 2) to the levelof pre-school education (age 6). Apart from the usual learning modules, the kindergarten also providesactivities as arts and crafts, dance, theatre and gymnastics. We will offer state-of-the-art technologyprograms in leading-edge facilities which help prepare students for the technology age in which they live.

Human Resource ManagementIn Entebbe Applied Academy, all the employees are appreciated for their services and usually rewardedfor their work by giving them quarterly bonuses, annual dinners, group holidays and increment on theirpay. The teachers are also sent for special Montessori workshops (if available) to be able to improve ontheir teaching skills. The administration of the kindergarten is in charge of employing new employees whois seen to have a bright future at the kindergarten and the principal is responsible to keep all theemployees in line and also motivated to be able to provide the best learning experience to the children.

Technological DevelopmentAs the public is more aware of the growth of information technologythese days, technology plays animportant role to gain the competitiveadvantage. By implementing the use of technology into thebusinessorganization, it enables any organization to reduce cost and also maintaina good competitiveadvantage. Example of existing technology that iscurrently used at the kindergarten are studentmanagement system, usingemail as a form of communication between the two branches and toparents,having a website as a form of communication between theparents and the kindergarten, the use of a faxmachine, photo-copier andalso computers for the use of staff, teachers and student.

4) Revenue generation and margins

School feesCanteenMedical facilitiesPick & drop facilities

Extracurricular activities

5) Position in value networkEntebbe Applied Academy is operating on a franchisee model. There are various kinds of servicesprovided by the academy i.e. transportation, food & beverages, medicalservices and extracurricularactivities. Among these, facilities as pick & drop andcanteen will be outsourced.

6) Competitive strategyTheres not a single competitor in Jaipur providing specialized kindergarten &


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crche services but there are some others who are either providing pre-schooleducation or providingeducation from primary to higher education. Competitors of Entebbe Applied Academy are Dolphinpreschool, Turtles, Bachpan, Euro kids and SubodhSchool.

Entebbe Applied Academys competitive edge is four-fold:

Specialized trainingThe facility can only be as good as the teachers and assistants. With this inmind, The Entebbe AppliedAcademy has a specialized training program that allteachers and assistants are put through so they areproficient at teaching thespecific programs that the academy has developed for kids age two to four.Theemployees are put through an intensive week long course and only afterthey pass the intensive trainingwill they be allowed to work with thechildren.

Innovative learning programsTypical learning programs for kids this age focus on specific traits and onlywork on one trait/ skill atonce. While this is successful in reinforcing theskill, it is often very difficult for the child to appreciate theinterrelationshipsof the different skills. Consequently, the child can learn the skill, but hasdifficulty inapplying the skill when faced with multiple stimuli. Then thechild tends to shut down out of confusion.Therefore skills are necessarily betaught together, just as we would expect to encounter them in real life,thechildren are able to assimilate the new task into their skill set much quicker.

Custom made servicesServices will be provided to childrens as well as their families according totheir needs. For ex. Pick & drop facility will be provided according to theirneed.

SafetyOne of the goals of Entebbe Applied Academy is to provide a safe environment forchildren and to giveparents a sense of security when their children are in ourcare. We take this commitment seriously andhave systems in place to ensureThis goal is carried out.

Classrooms and common areas are equipped with closed circuitcameras to Allow constant monitoring byparents and management

The entry of each school is equipped with a magnetic lock and codedkey pad for added security. A staffperson is centrally located toScreen visitors upon arrival

A fence surrounds all of our playgrounds and gates remain secured

SALES/MARKETING PLAN

The Entebbe Applied Academy is targeting a very specialize niche in child care space. Withthis in mind,The Company must then carefully communicate it's services if thecompany is to be patronize by thistarget segment. What will be communicated areEntebbe Applied Academy competitive advantages:specialized training of the staff andinnovative learning programs. If the targeted parent hears andunderstands theseadvantages, they will more likely be willing to switch to Entebbe AppliedAcademyservices.Companys sales approach would preferably be indirect sales strategy as the mainfocus is to introduce new capabilities & criteria that the competitor may not haveand targeting thosecompetitive advantages mainly available for buyers evaluation criteria.


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Marketing StrategyMarketing in the child care industry depends largely on reputation and referral. InIndia, Word of mouth isthe best instrument of marketing & promotion strategiesas people rely on their neighborhood morerather than print & mediaadvertisements. The company will be giving more emphasizes on providingqualitycare so that good word of mouth can be spread.

Promotion StrategyWe will depend on client referrals, community exposure and direct mailcampaigns as our main way toreach new clients. As we change strategies,however, we need to change the way we promote ourselves:

AdvertisingWe'll be developing our core positioning message: Early Child Care Development and EducationExcellence to differentiate our service fromthe competition. We will be placing advertisements innewspaper and magazines like India Today2)

Sales BrochureOur theme and curriculum will help sell the school to prospective clients.3)

Referral schemeOur main strategy for promotion will be referral scheme. In India we havenoticed people get influencedmore by what their friends and relative say ,rather what is been advertised in newspaper and television.So, based on thisbelief referral scheme will be used to promote school and to get admissionsof morenumber of students. This scheme will include providing 10 percentdiscount on monthly fees of students,whoever gets 2 students as referral foradmissions.4)

Direct MailWe will send quarterly direct mail campaigns to the working women inJaipur and we will also offermonthly calendars for parents.Marketing ProgramsOur marketing effort will include an application fee waiver, free children IDcards, T-shirts and a welcomeparty sponsored and hosted by Entebbe Applied Academy

Positioning StatementFor families who value the importance of higher education and quality child careservices, EntebbeApplied Academy offers a great alternative to traditional child careservices and specific interest basedprograms. Unlike those programs, LegacyAcademy combines child care services with a modifiedcollegiate level curriculum, just for kids!

Pricing StrategyEntebbe Applied Academy must charge appropriately for the high-end, high-qualityeducational and caregiving services we offer. Our revenue structure has tosupport our cost structure, so the salaries we pay toassure quality services must bebalanced by the revenue we charge. Basically value based pricing will befollowedi.e. how customers perceive or value or product.We will be price competitive in the market weserve; however, we will notsubscribe to the "low price leader" concept. The quality of our service willsupportthe prices we charge.

Sales StrategyEntebbe Applied Academy will sell its standard theme, services and offerings, separatingitself fromtraditional daycare-only offerings.We will be a one-stop shop for child care services, advanced learningandspecialized program offerings. We will also be active in building a solid reputationwith parents. Bysucceeding in these areas, we expect to begin seeingan operational net profit in month nine of the 1st

year, while increasing enrolment by 32% monthly for the first 8 months and gradually thereafter, until ourmaximum allowed capacity is reached.


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PRODUCT/SERVICE DEVELOPMENT PLANEntebbe Applied Academy will start-up as a kindergarten & crche centre which is for thechildren fromage of 4 months to 4 years and as far as future prospects areconcerned, the company is planning to makefollowing developments-

Increase the number of branches in Jaipur as well as throughout IndiaEntebbe Applied Academy will start-up as a single branch in Jaipur. But, within thetime span of 2 yearscompany aims to increase its branches in Jaipur as wellas throughout India. With the increase in numberof working women andgrowing importance of education the demand for Entebbe Applied Academywilldefinitely enhance-

Start primary schoolEntebbe Applied Academy will initially start up as a Kindergarten & crche centre butsoon after achieving good amount of response, itll set up an elementaryschool so that

ROAD MAPSales and Marketing ObjectivesGrow the number ofcustomers by 25% annually.Build customer loyalty through superior service and educational/ development systems.Increase the referral rate by 5% per quarter.

Sales ForecastAs the following table shows, the company plans to deliver sales of approximatelyRs. 36, 00,000 in thefirst year, Rs.54, 00,000 in the second year, and Rs. 80,00,000 in the third year plan implementation.


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Management and Staff

The school will be registered with the Ministry of Education and Sports, the primary curriculum will bedesign in accordance with the National Curriculum Development Centre (NCDC) and primary 7 examsset by UNEB. It will follow the MOED bylaws as it pertains to the management of a primary school. Asper the bylaws, the managing committee of a private school shall consist of not more than 21 members.The Entebbe Applied Academys Management Committee shall include the following namely:

1. The manager of the school;

2. The head of the school. He/she will be a Member Secretary of the School Managing Committee;

3. Two parents of students in the school;

4. Two teachers of the school;

5. Two other persons, who are, or have been teachers of any other school or of any college, to benominated by the EAA Trust;

6. Two members, from out of a panel recommended by EAA Trust to be nominated by the Board;

7. One additional member to be nominated in accordance with the rules and regulations of EAATrust by which the school will be run.

Thus, the Entebbe Applied Academys Management Committee will consist of 11 members.

6.1 Executive Management

The overall operation and management of Entebbe Applied Academy will be handled by EAA Trust, theowner of the school. The trust board members are listed below:

1._____________2._______________3.________________4.______________________5.________________________6._____________________________


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6.2 Staffing and Teachers

Entebbe Applied Academy will conduct a nationwide search to recruit an able, personable, and well-qualified principal. The school will work to hire and to keep highly qualified teachers. The school willmake use of recruiting services nationwide in order to find good teachers.The school will carefully hire new workers due to the special needs of the nature of the workdealing

with students and their safety. Extensive background checks will be conducted on all potential staff and

teachers to verify academic and criminal records and their social skills. Extra care will be taken to ensure

that new workers represent their background and skills honestly.

Personnel Plan

Year 1 Year 2 Year 3Board MembersPrincipal

KG TeachersPrimary TeachersAccountantAdministrative Assistant


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Operational Plan

7.1 Operational Overview

The primaryschools academic session starts in January. According to the current plan, the school willstart the operation in the month of ______. It is estimated that it will take about six months to securerent premises, recruit and make the facilities ready for educational use. Therefore, the funding calculatedin this document is to take care of the first phase of establishing the school.

7.2 Facility Layout

The sketch in Figure 2 shows the schools land. The school building and two residences are also shownwith the raised blocks. This is for the consideration of the sponsors. It should be very strategically locatedinside the city limit but away from the city crowd. But since the school trust is not consideringconstruction in the first phase of establishment, EAA will seek out to rent equally feasible premises.

Management will ensure that the facility is properly licensed and in full compliance with all applicableMOES and state regulations governing the operation of an educational institute.

7.4 Recreation Centre and Library

The school will have a fully equipped recreation room/s for social hours especially for nursery pupils.There will be visualization aids and other tools in the centre in addition to the playmate equipment.Excellent library facilities will be provided to encourage reading.

7.5 Campus Safety

The campus safety will be maintained all the time. The campus will be secured with a well-constructed

and fenced boundary with a manned entry gate. A security firm will be hired to secure the premises 24hours.

7.6 Accounting, Billing, and Collections

Accounting and other related operations will be stream-lined. Best-practice accounting techniques such asactivity-based accounting will be used to manage expenses. A proper separation of duties andresponsibilities will be maintained in financial and other areas. Appropriate accounting and billingsoftware will be utilized to support the schools operation. Student registration and fee collection softwarewill be integrated with the accounting and billing software.

7.7 IT Infrastructure

It is envisioned that IT will play a major role in creating a highly effective educational environment. Ahighly secured network of servers and client workstations will be maintained. Cloud computing and otherappropriate IT concepts will be used to minimize the storage and maintenance of physical devices on thecampus.


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Financing and Growth Strategy

8.1 Capital Requirements

Entebbe Applied Academy seeks USH 166,660,000 in funding to finance the successful implementationof the schools educational venture. The fund will be used as follows:

Marketing USH 10,000,000

Rent

Equipment & Furniture

Leasehold Improvement

IT Infrastructure

Support the school operation for 3 years

Unforeseen expenses

USH 24,000,000

USH 37,510,000

USH 12,000,000

USH 15,000,000

USH 53,150,000

USH 15,000,000

TOTAL CAPITAL FUNDS UHS 166,660,000

8.2 Financial Strategy

Sun Academic Foundations financing strategy to______________________________________________________________________________________________________________________

The seed fund of $380,000 will enable the school to build out its operating facilities as provided for itscapital plan, recruit teachers, and commence its marketing and operation smoothly. It is projected that theseed fund will enable the school to launch its educational operations and successfully implement itsbusiness operations plan for providing a life-changing education to children deserved for qualityeducation.

8.3 Risk Analysis

The risk associated with this venture is very negligible. The primary source of risk is related to the future

uncertainties about the need for quality education in Entebbe areas. The market demand for primary

education is growing rapidly throughout Uganda. More new families in Entebbe have high enough

income to provide good education to their children. The management believes that the marketopportunities are significant and the chances for success are excellent.


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Financial Plan

9. 1 Five-Year Budget Plan

Table 2 shows the five-year budget plan. The school will run KG1-3 and Primary 1-4 the first year ofoperation. It is estimated that the school will enrol 235 tuition-paying students in the first year. Eachgrade will have 30 to 40 students. An earnest attempt will be made to reduce the class sizes in two tothree years once the school gets established. We are very confident that it would be possible to charge ahigher tuition and fees once the school gains reputation for high quality education. This will enable us toreduce the class sizes and possibly run multiple sections of classes.

The enrolment estimate of 235 students in the first year of operation is a conservative estimate for the

number of students. There is a waiting line of students to get into good schools. We have no written

evidence on the waiting lines since schools do not publish this kind of information. However, our own

experience and the experiences of families with children in Entebbe Municipality tell us that not only are

there a waiting line of students but also there is a desperate desire on the part of parents to find betterschools even if the children are bussed more than 20 kilometers (12 miles) away from their homes.

Table 2; 3 Year Budget Plan

9.2 Revenue Model

Five Year Budget--Surya International School--Junior High To High School--A NonProfit School (in US $)

Item Current

Capital

PreparationMonths

Year 1 (KG-P3)

Year 2upto P5

Year 3Upto p7

Estimated Number of Students 235Annual Revenue from operations 384,225,000Estimated External Funding 166,665,000Annual operational Expenses

Principals Salary 14,400,000Teachers Salary 57,000.000Staff Salary 23,000,000Other Expenses (Electricity, Water,Books and Supplies)

12,000,000

Computer & Building Maintenance 17,142,000Administrative and IncidentalExpenses

2,560,000 52,040,000

Marketing Expenses 10,000,000

Total Annual OperationalExpenses

12,560,000 175,582,000

Capital Expenses

Rent (12 months) 24,000,000Auxiliary Items (Equipement,Furniture, Books)

37.510,000

Leasehold improvements 12,000,000

Total Expenses 62,070,000 199,582,000

Net Working CapitalCumulative Net Working Capital


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Entebbe Applied Academy will generate revenues from tuition and fees charged to students. Table 3

shows the details of tuition and fees for different classes. The row titled Total Monthly (including tuition

and fees) shows the total monthly charge for each student. These estimates are very competitive for the

education market in central regions of Uganda. As can be seen from the fee schedules of other schools

shown in Appendices C-E, Entebbe Applied Academys monthly charges are very reasonable. These

monthly charges will be paid by a students parents during the first week of every month in advance.Some private schools collect tuition and fees on a quarterly basis.

Table 3. Tuition and fees estimates.

Tuition & Fee Schedule(Estimates)

Annual Fee Kindergarten PrimaryNew Continuing New Continuing

Registration Fees (paid once) 150,000 00 150,000 00

Tuition Fees 300,000 300,000 400,000 400,000Day care fee (optional) 90,000 90,000 00 00Boarding Fee (optional) 00 00 350,000 345,000Swimming Fee (optional) 70,000 70,000 70,000 70,000Uniform Fee (1 pair) 75,000 75,000 75,000 75,000

Total Term Fees 685,000 535,000 695,000 545,000

Total Annual fee 1,605,000 1,635,000

`


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The three-year budget plan in Table 2 shows the revenue projection for three years. The school isprojected to be self-sufficient by the fourth year of operation.

9.3 Expense Assumptions

The building rent shown in Table 2 has been computed based upon ......

The salary expense has been computed based upon the Pay Commissions recommendation shown inAppendix G. The salary estimates are based upon the governments recommendation for salaries.However, the private schools in Uganda hire teachers on a contract basis and pay a lot more than publicschools (up to 20% less) than the official recommendations. The reason for this is that the unemploymentrate is quite high in Uganda, and teachers are willing to work at a lower salary. This indicates that EntebbeApplied Academy will be able to attract better teachers even if the school hires them on contract as longas the school pays more salary than the salary paid by other area schools.The expenses for other items such as utilities, tables and chairs, computers, etc. have been determinedbased upon the current going rates in Uganda.

9.4 Income and Expense Estimates

Appendix A shows three-year income and expense estimates. The estimate indicates that the net cash

flow from the schools operation will become positive in the third year. The management strongly

believes that the school will not need any external financing to support its operations. It is anticipated that

the internally generated cash flows will be more than sufficient to support growth and sustained financial

liquidity.

Appendix A. Income and Expense Details for three Years

business plan - name of school - burt systems

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