- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
(Scholarship Informarion Services)
Scholarship Information Services will be a company organized to help students and their parents better finance higher education. This will be done by providing them with addresses of foundations, trusts, and charitable institutions which "lend" financial aid towards higher education.
This business plan provides detailed information regarding our planned functional areas; operating requirements, production, marketing and sales, finance, accounting, R&D, human resources, organizational structure, and information systems. All functional areas are inter-related and each support our overall business strategy.
The primary TARGET market consist of university students and their parents, while the secondary TARGET market consists of senior high school students and their parents. In Year One (July 1 to December 31, 200X), concentration will be on the Canadian Maritime Provinces. In year Two (January 1 to December 31, 200Y), the company wishes to expand its marketing efforts to include the entire Canadian market. The company anticipates to enter the United States market by year three. However, if competition increases within the Canadian market, Scholarship Services will expedite its anticipation to enter the American market.
The total cash and capital asset investment required in order to successful launch the product is estimated at $20,000 . This amount is divided among items such as assets necessary for starting up the company, to support corporate objectives, to enable the company to successfully implement its crucial strategies, and to provide some " financial security" if the initial demand is lower than envisioned. The purpose of this application (business plan) is to receive the state government grant entitled "The Rural Youth Grant" valued at $5,000. The remaining cash and capital asset investment required to launch the business will be invested by the owner.
The company's 200X RETURN ON TOTAL ASSETS is expected to be 22% , RETURN ON OWNERS EQUITY is expected to be 28% and INVESTMENT TURNOVER RATIO is forecasted at 4.17 . The company's 200Y RETURN ON TOTAL ASSETS is expected to be 48% , RETURN ON OWNERS EQUITY is expected to be 69% and INVESTMENT TURNOVER RATIO is forecasted at 5.26. These figures are shown in the forecasted statements and ratio analysis sections. The main factors influencing the feasibility of this project are increased cost of higher education, gross margin, competition, low overhead & low investment to name a few.
The cost of higher education has risen sharply within the past few years. A 10% increase in tuition fees has been seen in many areas throughout Canada the United States. In monetary terms, students are paying between $800 and $1,500 more in tuition fees each year. The issue is compounded by the fact that the purchasing power of the dollar is declining.
In 200X the cost of goods sold and total sales are forecasted to be $12,000 and $104,000 respectively; leaving a gross profit of $92,000. Thus, providing a gross margin of approximately 88.5%. A lower gross margin is expected in 200Y, resulting from changes in corporate objectives and strategies. (I.E. reduction is selling price and higher direct material costs) .
Scholarship Information Services strongly believes that the proposal is feasible. Many reasons may exist for individuals not recognizing the potential for this business. First of all, many companies, for some reason, believe that university and high school seniors students do not have the resources to purchase particular products. And secondly, a major problem for marketers is that university students cannot be easily reached by media as they are classified as light television viewers and radio listeners. These two problems are addressed and resolved throughout this presentation.
It is important that these markets be exploited as soon as possible. The company does not hide the fact that competition increases as an industry becomes attractive. Therefore, as soon as this company can enter the industry, the sooner it can take advantage of its attractiveness and build a strong corporate image.
Scholarship Information Services has developed a modern day management philosophy which is directed towards customer and employee satisfaction. A high level of autonomy is given to each team member (employee) in order to increase productivity, creativity, and efficiency. All issues mentioned above are fully discussed throughout this presentation.