Professional Documents
Culture Documents
Business Plan Sample
Business Plan Sample
The Learning
Experience
30-08-2010
Bandari Street
Tabata
P.O. Box 105237
Dar es Salaam
Tanzania
CONTENTS
0. Executive Summary ........................................................................................... 2
1. THE BUSINESS ................................................................................................. 3
2. THE FINANCIAL PLAN ........................................................................................ 9
3. THE DEVELOPMENT IMPACT ..............................................................................10
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0. EXECUTIVE SUMMARY
The Learning Experience is a training centre for computer and business courses. Tanzania
has a growing economy and especially Dar es Salaam is expanding fast. There is a large
and still growing demand for all kinds of education.
Our training centre will provide those courses that are needed in the market and doing so
will focus on job and business oriented training. It will provide necessary practical
training and set up a program with small businesses to ensure on the job experience for
our students.
Standard price for a course will be $ 26 at which price the break even point will be
reached at 100 sold courses per month. With an intended 4 classrooms, situated in a
residential house at an easy accessible location and a small group of dedicated teachers
and staff we expect to reach that point at the end of the first quarter.
Our customers will be secondary school students, small business entrepreneurs, school
leavers and other job seekers. Between the many competitors our centre will stand out
by offering practical experience in cooperation with business partners.
To start this business a capital of $ 35.000 is needed, $ 13.250 for fixed assets and $
21.750 for start up and running costs. Of this amount $ 25.000 is being invested by the
management team. An additional $ 10.000 is still required.
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1. THE BUSINESS
Give a short description of the business model of the company – how will you make
money?
The Learning Experience is a training centre. It will provide courses and training. The
centre will be located in a residential house in one of the more populated and accessible
area‟s of Dar es Salaam (Ubungo or Morocco/Victoria). 4 rooms will be used as
classrooms. At start up 2 rooms will be used, each quarter one will be added. Standard
price for a standard course will be $26 (40.000 Tsh). A standard course will consist of 10
sessions of 2 hrs. Break even point, according the data in this plan, lies at 100 sold
courses a month.
In the chosen setting, monthly costs at around $ 2600 are realistic, with little possibility
to reduce them. At the same time an increase of students and courses increases the
monthly costs only marginally. Profit will be made from 100 sold courses a month and
up. We aim and expect to reach this target at the end of the first quarter.
Our standard courses will provide the bulk of our income. Our newly developed and
custom made courses will put the name The Learning Experience in the market as an
innovative and high quality training centre.
Introduce your product/service, how it works and why a consumer would buy your
product/service. Describe the value it will create for the customers and the market. Why
is there a need for your product?
We will develop new products. A Job Seeking training is one. From our own experience
and from what we hear from other entrepreneurs it is very hard to get good personnel.
That starts with the letter and the interview. Despite the obvious need there is very little
training offered in this field.
Another course to develop is a training for small business entrepreneurs. To be self
employed is still the dream of many people. Yet the failure rate of small businesses is
high. Many of the mistakes made are avoidable. Our course will focus on needed skills
and provide training in those skills.
There is a need for advanced training in computer skills. Many employees in small and
medium sized businesses have received basic training, but in their job they experience
challenges that they cannot address alone. Unlike in Europe for example they lack the
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network to find answers to their questions. We will set up a help-desk like service to
cater these businesses and NGO‟s experiencing this problem.
Small business entrepreneurs. There are many Micro Finance initiatives and many
Saccos, loan and savings cooperatives. They supply short term loans for their customers
and members. Some of them also provide some kind of training. Yet the supply of
training is not enough and not always adequate. We intend to offer a training that is
adequate and we will offer this training to members of Saccos and clients of Micro
Finance businesses. We will set up co operation with those organisations to reach their
clients and members.
Secundary school students. Many use the end of term breaks (a month after each term)
to get extra training, mostly in computer skills, or to do tuition. We will provide the
courses they need.
Dar es Salaam is a fast growing city. It is economically booming and demand for all kinds
of education and training is growing and will continue to grow for the coming years. In
2009/2010 the government built many new secondary schools in the country. However
there are not enough teachers, in fact a shortage already existed. Computer skills are
being put on the curriculum. Teachers will have to be trained. Here lies another
opportunity for our centre.
Tanzania has an economic growth (GDP) figure of 6% in 2010 and an expected growth
rate of 7% in 2011. The demand for knowledge and skills will stay high.
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Are there any companies in your target market with a complementary product/service?
Are these players successful, if so why, and what is their market share? Is the target
market still wide open, or is the entry level high, and why?
There are many competitors. From one-room facilities to fully equipped centres with full
curricula, specialized teachers and lodging facilities. They will be successful in providing
an income to teachers and owners. The larger institutes are successful in numbers of
provided courses. Results in effect of training, quality of training or jobs found are not
available.
The market is wide open. It is very easy to establish another training centre. And it will
be relatively easy to be distinctive and different. Too many centres and teachers copy
others and provide the obvious only.
The training centre will be a frontrunner in developing new courses, in line with the
policies of the Ministry of Education and institutions like VETA (Vocational Education and
Training Authority).
Copying is widespread, and surely our success will have many followers. They will remain
followers however, were we will remain the innovators. Furthermore core-values such as
integrity, transparency and accountability are internalized in our team and will be an
integral part of our courses and training.
"It is our choices, Harry, that show what we truly are, far more than our abilities." (J.K.
Rowling)
Our first and main way of advertising will be by handing out flyers at busy places such as
bus stations and schools.
Secondly we expect considerable spin off from mouth to mouth advertising.
Then we will use newspaper adds, periodical adds in one to the journals that are
distributed free in Dar es Salaam, and possibly a radio or television add.
We will make sure, using our networks, that our new and innovative courses get the
attention they deserve. And many of these courses will cater different groups of
students, thus enlarging our market.
Last but not least we intend to create a quarterly „buzz‟ with social projects. Of course
our students will play a role in these projects as wel as staff an management of the
centre.
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Where appropriate we will actively adverstise our new courses by visiting Micro Finance
Institutions, Saccos and schools and businesses.
1.4.2 Distribution
Elaborate on the distribution of your product/service. How will you set up your
distribution? Will you make use of (existing) distribution channels/networks?
1.4.3 Sales
What are your sales targets? How will you achieve them? Which percentage of the total
market will you claim?
Our targets are to have in use 3 classrooms at the end of quarter 3 and 4 classrooms at
the end of quarter 2. We aim at occupancy of 75% to achieve at the end of quarter 1.
Target for average number of students per course is 5.5 to achieve at the end of quarter
1. In this way break even point will be reached at the end of quarter 1.
We will achieve this through monitoring the results of our marketing strategy and apply
more effort to marketing when needed.
With a market so large and open it is difficult to predict how large our market share will
be, or even should be.
Describe the production process of the product/service. How will you develop the
products / services? What resources do you need and how will you get access to these
resources?
Is there a need for (additional) Research & Development (R&D)? What resources will you
tap for this R&D and how will you finance it? Who will be your R&D suppliers and in what
country are they located? Are there quality standards or requirements for your
product/service or is there any certification involved?
We will develop our own courses with our own material. This is a responsibility of our
teachers with support from management.
Elaborate on the supply chain of your product/service. Which suppliers do you rely on to
acquire your resources and do you already have agreements in place with suppliers?
(Any concrete names you can already give here please add!)
1.7.1 Entrepreneur
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Introduce yourself, your qualities and the reason why you want to start this business.
Describe what drives you as a person and how others would describe you. Explain what
your ambitions are with your business between now and 3 years from now?
What is your (professional) background and how will you employ this in your new
venture? Do you have experience in your target sector? Please include a track record
with your previous experience indicating your current knowledge and in which way you
have the capability to use this experience to make the business a success?
As a person I enjoy to think of new things and to make them happen. Others describe
me sometimes as „preacher‟ or „teacher‟. A nice compliment given to me was from a
colleague trying to pass an economical exam. She said “I studied this subject so many
times and failed each time, but the way you explain it to me I understand it
immediately”.
Also:
Add the details of at least two professional references, i.e. their name, address,
phone number, email address, etc.
Reference 1:
Winnie Peter Mulder
Director and Coordinator, Peninsula English Medium School
Masaki off Chole, Kahama Rd.
P.O.Box 10147
Dar es Salaam
Tanzania
Tel: +255 22 260 2657
Mobile: +255 754 370 621
Website: www.pems.ac.tz
E-mail: winnie@pems.ac.tz
Reference 2:
Stephen Paul Chambo
Teacher and Internal Coordinator Hekima Waldorf School
P.O.Box 34754
Dar es Salaam
Tanzania
Tel: +255 222 771 854
E-mail: hekimawaldorfschool@gmail.com
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be in this. Indicate the necessary skills and knowledge which are needed to make this
venture a success and include profiles of the people who will be responsible for this
success (also if applicable add who has been acquired and which human resources are
still sought after).
Winnifrida John Shoo, owner and partner of Jeroen van Laar. Winni is 29 years old. She
has finished form II. Winni will be working as management trainee, starting in reception
and marketing. She has experience in several jobs and has run her own business. She
has good people skills. She will start a training program to finish her formal education.
Johan Brummelman. Johan has the Dutch nationality, is 52 years old and will join the
company in 2011. Johan has finished Pedagogic Academy in the Netherlands and is a
teacher by profession. Johan has worked with less able people in training and coaching
them in temporary jobs.
Stephen Paul Chambo. Stephen is 32 years old and is a qualified teacher with additional
training in Waldorf Education. He has experience in working in projects with youth.
Stephen will be the managing director of the centre.
The Learning Experience Limited will be a new legal entity. Registration with BRELA
(Business Registration and Licensing Agency) and VETA (Vocational Educational and
Training Authority) is required. That process starts with the writing of the Memorandum
and Articles of Association by a lawyer. We have already selected a lawyer for this
purpose. After receiving the registration from BRELA, the company can now apply for a
Tax Identification Number, a bank account and the process of receiving a residence and
work permit for foreign investors can be started with TIC (Tanzania Investment Centre).
At the same time the centre can apply for a registration with VETA. These procedures,
although they consume considerable time in visiting and waiting hours, are quite
straightforward and do not consume a lot of time, in a matter of a few weeks the whole
process can be finished. The last step is to receive a business license from the local
municipality. For companies registered with TIC and receiving the Certificate of
Incentives, the process is governed by TIC, thus saving time and trouble.
Give an overview of the important goals you have set for the new business. What are
these, when are they to be met, how do you plan to reach them and who will be
responsible? Also make clear what has been done so far; so what is the current status of
the business?
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The first goal is to reach 100 sold courses per month, to run break even. This should be
possible at the end of the first quarter and is the responsibility of the entrepreneurs,
Jeroen and Winni.
Second is the expansion of the centre to its full capacity. That should be achieved at the
end of the second quarter. It is again the responsibility of Jeroen and Winni.
Then it is very important to develop new courses. Introducing one newly developed
course each quarter seems realistic. Depending on the preferred teacher responsibility
lies with the teacher and the director of the centre. Each new course is to be
accompanied by adequate marketing.
The current status is START UP. Apart from planning and building up of a part of our
network we have not yet started.
Indicate the internal (you, your company and product‟s) strengths and weaknesses. Then
indicate the external (market, consumers, economy, prices, competitors, etc.)
opportunities and threats.
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At break even capacity the price of one course at $ 26.32 (Tsh. 40.000) breaks down as
follows: Salaries (direct costs) $ 5.75 Overhead costs $ 7.68 Housing $ 6.65 Other costs
$ 1.05 Marketing costs $ 0.94 Depreciation $ 3.30 Interest $ 0.95
Above that capacity costs will grow only marginally and the centre will start to generate
profit.
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A - Finance needed
- How much capital do still you need to get this business in operation?
- On what exactly will you spend this capital? Specify as much as possible.
B - How do you plan to acquire this capital? This means describe the possible
sources:
- Own contribution*
- Equity (capital in exchange for a share in your company),**
- Loan(s),
- Grants / subsidies (only fill this in if you can explicitly name organisations/individuals
from which you realistically expect to get (part of) this finance. Please name them
and explain what kind of relation you have with this financier and what has already
been agreed on).
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Capital still needed (the total here has to be the same amount as the total ‘A -
Finance needed’!)
Name of Typ of finance USD
organisation/individual
(if known)
Jeroen and Winni Own contribution* 15000
Johan Brummelman Equity** 10000
Loan 10000
Other, please specify:
TOTAL INVESTMENT STILL NEEDED: 35000
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2.6 Planning
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- Number of direct employees per year (note also how many of these were previously
unemployed or earned and income below the minimum wage).
- Number of indirect jobs created or income increased (e.g. employment spin offs of
your business for suppliers and buyers, distributors, sales)
In the first year we will employ 7 people, one or two of them currently unemployed. The
others will receive an increase in income. Furthermore we plan to set up an employee
benefits program. This however is depending on profit made and on the wishes of the
employees as well.
Indirect jobs: this is difficult to quantify. We will not generate much spin off in the fields
mentioned above. We do hope that through our centre students will find the knowledge
and skills, and the courage, to find their way in life and/or to start their own businesses.
It goes without saying that our training centre will increase access to education. As far as
environmental impact or social impact (living standards) are concerned, these issues will,
where possible, be integrated in our teaching.
We do intend to define social projects in which our students can participate, as part of a
practical learning experience. This is however not yet worked out or planned at this
moment. These projects can be part of a paid temporary job or part of a volunteer
project, organized by us or by others. One such project I can name, is the launching of a
biodynamic farm at the Hekima Waldorf School in Goba, an rural area adjacent to the
city. The Hekima Waldorf School is one school with which we intend to develop
collaboration. As soon as our company is fully registered we will formalize this
collaboration.
Overall: It should be clear in the business plan where value is added in the developing
country.
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Annex:
CURRICULUM VITAE
Personal
Education
1970-1977 : Gymnasium B
1985-1990 : Higher Economic and Administrative Education
1995-1997 : Higher Technological Education in Environmental studies
1995-1999 : SPD Higher Education in Business Administration
1995-2005 : Open University, various courses in Science, Environment and Economy
2001 : Course in Import and Export regulation
Work experience
Various
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