BUSINESS PLAN MODEL

LAB. 1_STARTING A BUSINESS

IDENTIFICATION DATA
1. Company's name:

CAT’S PRIVATE TUTORING

2. Legal form:

 Commercial Company

3. Main business activity and CAEN code:

Online private lessons services
CAEN code: 6312
4. Capital value:
1.500.000 RON

5. Contact person / address / telephone number / e-mail address:

Apetri Alexandru-Cristian – bld. Poitiers nr.6/ 0754697364 / apetri.alexandru@gmail.com

A. VISION, STRATEGY
In this chapter, try to answer the following questions:

A 1. What is the business essence? What will generate money and profit?
Describe briefly what you want to do within your future business

 Services: We offer an alternative to the usual teaching methods, provided by private teachers and universities.

A 2. Who will be your customers?

 People
 Companies

A 3. Where do you want to get within 3 years.

Fix your quantifiable objectives/ targets!

Objectives/ targets examples:

No. Objectives (Target indicators) Monetary Year N Year N+1 Year N+2
unit [MU] (current year)

1. Turnover, out of which: RON 950.400 1.123.200 1.900.800

2. Profit RON 84.000 101.520 178.200
3. Employees no. No. 3 3 3
A 4. What are the "strengths" that can determine success?
 Technological knowledge
 Market knowledge
 Capital
 Relations
 Personal relationships with customers
 High integrity

B. BACKGROUND, MANAGEMENT, HUMAN RESOURCES

B 1.Background

In this section try answering questions like:

 How did the business idea arise?

Since the recent outbreak of the new virus people have been stuck studying at home. We decided to create an online
platform for enthusiastic qualified students and teachers.

 What practical and / or theoretical experience do you bring into business?

Chirila Ramona, Apetri Alexandru and Timinger Sebastian are attending the Faculty of Electronics, Telecommunications
and Information Technology and have the necessary knowledge and skills to build the hardware and software platform.

 What financial resources you have?

We intend to contract a credit

B 2. Management, Human Resources

The management of a company is decisive for its evolution. Try to highlight how the knowledge, specialization,
experience of each manager will positively influence the company's evolution.

MANAGEMENT

Name and surname Position Competences

Chirila Ramona Co-founder Web design
Apetri Alexandru Founder Hardware
Timinger Sebastian Co-founder Software

C. MARKET ANALYSIS
Market data and promotion of the new product / service:
C 1. Potential customers:
Describe which marketing strategy you’ll apply; how you identify prospective customers and which category they belong
to (persons, public institutions); how you will expand on the market or you will identify new markets, and so on.
CAT’s Private Tutoring plans to market to families in which the parents have no time to
offer help with homework or studies to their children, students that have a different
method of studying and students that feel overwhelmed by the complexity of some

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 disciplines. Our services are also available for public institutions such as educational
institutions.
The marketing plan will highlight the following customer benefits:
1) Less time and money spent on traveling
2) Flexibility in choosing a teacher
3) The comfort of learning in your own house
4) There are studying levels for all grades

C 2. Potential competitors
Which are the main competitors?

No. Product / service offered to the market Competitors organizations

Company name Market share (%)
1 A set of online tools that help educate students Khan Academy 15%

2 A large marketplace focused on creative Skillshare 5%

education.
3 Offers massive open online courses, Coursera 8%
specializations, and degrees

What strengths and weaknesses do they have?

No. Company name Strengths Weaknesses

1 Khan Academy You can join and learn on the spot Only has math topics
2 Skillshare Courses are focusing on interaction Require a subscriptions
3 Coursera Real life universities professors Time limited courses

C 3. Main advantages of new offered products / services:

The platform is easily accessible to anyone with access to the internet. A more
welcoming environment due to the average age being closer to that of the clients. There is
more freedom in subjectively choosing the right mentor.

C 4. Competitors reaction regarding the emergence of new offers on the market:

 Lower the prices

 Marketing by supporting charities
 Marketing by taking an environmental approach

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C 5. Product distribution:
Try to find the most advantageous distribution forms of your products

Products / product groups Turnover share Distribution forms

(%) (%)
A 2-hour session 0.63% 10%

C 6. Sales promotion activities:

Describe the promotion strategy for launching products / services and then estimate the annual promotion costs
CAT’s Private Tutoring will engage in three types of promotional activities:

 Online advertising on social networks: 41.344 RON

 The distribution of fliers: 15.662 RON
 Promotion at local universities: free

D. OPERATING COSTS ANALYSIS

D 1. New products
(describe the products / services type and its features, the total sales percentage, sales price)

Product Price (lei or euro / Total sales share

monetary unit [MU])
A 2-hour session 60 RON 59.69 RON

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LAB. 2_DECISIONS (in certainty conditions)

D 2. The main raw materials/ services suppliers:

Suppliers Annual Purchase Value

(thousands of lei)
Raw materials / services Electricity 4,981 RON
Internet 0,600 RON
Maintenance 1,200 RON
Rent 24,000 RON
Total 30,081 RON

You can attach offers from your primary raw material suppliers.

Further for one of the raw materials / services (mention before) you have to develop an
analysis:

The raw materials / services is: ………………………………..

Variants/ alternatives of Supplier (organizations names):

V1- ………………………………………………..
V2- ………………………………………………..
V3- ………………………………………………..
V4- ………………………………………………..

[Proposed] Criteria for assessing variants/ alternatives:

C1- price (for example: thousands of lei)
C2- delivery time (for example: hours)
C3- estimated quality (for example: %)
C4- maintenance costs/ insurance (for example: thousands of lei)
C5- potential price deductions regarding n purchased quantity (for example: %)

The consequences of the variants/ alternatives according to the criteria’s are as follows:
C1 (thousands C2 (hours) C3 (%) C4 (thousands C5 (%)
of lei) of lei)
V1
V2
V3
V4

Further with the help of the Manag. software you will develop the analysis attaching in the text print-
screens of the results .

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LAB. 3_TRANSPORT PROBLEM

D 3. Supply and Transportation

(Describe how you plan to operationalize supply problem; who will provide the transportation, an so on.)

In this section after you explain your particular transportation problem (what it is [1] supply, [2] demand, [3] unitary
transport costs, and so on) you must put the calculation/ solution obtained with the help „ POM – QM for Windows”
software (print screens).

D1 D2 D3 ... Dn Supply
O1 ... ... ... ... ...
O2 ... ... ... ... ...
...
Om ... ... ... ... ...
Demand ... ... ... ... ... ======

Sources: O1…..Om
Destinations: D1…..Dn

USE „POM – QM for Windows” (Software for Decision Sciences: Quantitative Methods, Production and Operations Management)
STEPS:
MODULE -> Transportation -> File -> New -> in „Create data set for Transportation” set the origin and destination no. ->
OK -> introduce associated data (for your particular case)-> Solve
(Print Screen [the the obtained results] -> Paste).

D 4. Technological process description:

4.1. Describe briefly the technological process associated to your products / services:

4.2. Describe how the new business can affect the environment, and what possible solutions do yo have to eliminate
these effects (environmental impact):

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LAB. 4_BREAKEVEN/ COST-VOLUME ANALYSIS

D 5. Annual production costs:

Presents (determine) the direct and indirect annual costs associated to your business activity - following implementation
at the maximum production / year

Direct production costs Amount (lei/ euro) % from total

costs
Raw materials
Auxiliary materials
Direct labor (salaries + taxes and social contributions)
Energy, other utilities
Subansamble
Sub-contracted services
Other direct costs (details)
Total direct costs
Indirect production costs Amount (lei/ euro) % from total
costs
Administration / Management
Office / Secretariat costs
Transport costs
Security costs
Safety and environmental costs
Other indirect costs (details)
Total indirect costs
TOTAL

In this section (after you fill in with data the table) you must put the result/ solution obtained with the help „POM” soft
(print screens - table obtained and the associated (b) Crossover Graph).

D 7. Expected annual revenue:

Presents (determine) the volume of annual sales for each category of your business product / service (at the maximum
equipment capacity / year)

Sales [full capacity] Amount (lei/ euro)

Product 1
Product 2
Product 3
…..
Product n
Total

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LAB. 5_Project Management [PERT/ CPM]

E. NECESSARY INVESTMENTS
E 1. Description of the proposed investment
Investment object Supplier Estimated value
(euro/ lei)
Equipment 1
Equipment 2
...
TOTAL:

E 2. Utilities:
Specify where the project will be implemented, the address, the space description and how the necessary utilities are
provided
(a layout of the fixed assets that will be purchased can be attached)

E 3. Investment implementation chart (Operational plan)/ Project Management

Activity Activity simbol Activity time

[Start node – End node]

In the following this section must presents the Project Management (PERT/ CPM) operated with the POM QM
software.

……………………………..
……………………………..
……………………………..

E 4. Production facilities
Specify what arrangements are needed to conduct in good condition the technological process associated to product /
service (if appropriate)

E 5. Structure and number associated to human resources [HR]

Present:
 the number of created posts correlated with the investment implementation (according to the Operational Plan);

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  type of jobs;
 the necessary qualification;
 the proposed monthly salary - including the related costs to taxes and social contributions.

Likewise describe how you intend to recruit the necessary staff and how you will train them for the job; also how you
intend to motivate your staff.
(The organizational chart may be attached, if applicable)

F. FINANCIAL PROJECTIONS
F 1. Data associated to the fixed assets

EQUIPMENT, BUILDINGS, WORKS, OTHER Value Amortization period

AMORTIZABLE ASSETS (Euro/ Lei)

F 2. Investment financing plan

Sursa de finanţare Amount %

Bank credits
Personal capital
Other sources
Total

F 3. Production capacity
Define the production capacity of 100%.

Units produced / 8 hours: __ pcs.

Number of shifts __
Average price / product unit: _____euro/ lei

F 4. Determine the breakeven threshold

……………

F 5. Data associated to production costs

Note: costs per year are required at 100% capacity

Cost type Value (euro/ lei)

Raw materials costs, of which:
a)...
b)...
c)...
Direct salary (salary total cots – includes all the taxes)
Utilities (energy, water, steam, gas, and so on)

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Periodic repairs
Maintenance and spare parts
Other direct costs
Administrative costs
Sales and promotion costs
Bank fees
Insurance
Other fixed costs

F 6. Other activity data

Indicator Year 1 (%)

Tax rate on profit

Annual sales at 100% capacity (Euro/ Lei): ___________

Dividend forecast (% from the available net profit): ___________
When will the invoices be collected? ___ days
Do you supply with raw materials for how many days?
Raw material a) ___ days
Raw material b) ___ days
Raw material c) ___ days
Do you stock with spare parts for how many days? ___ days
You will maintain an average stock of finished products equivalent to ___ production days
On average, you will pay your bills on ___ days

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Lab. 6/ 7_CASH FLOW
F 7. Revenue and costs statement

Indicator Value (Euro/ Lei)

Year 1

Sales income
Production costs
Gross profit (taxable)
Tax profit
Net profit
Dividends paid
Non-distributed profit
Interests due
Available profit
Cumulatively available profit
Losses

F 8. Cash flow

Indicator Value (Euro/ Lei)

Year 1

Financial resources at the beginning of the period

Credits
Sales
TOTAL CASH INFLOWS
Investment + net working capital increase
Operational expenses
Financial costs - interest
Credit rates
Tax profit
Dividends paid
TOTAL CASH OUTFLOW
SURPLUS / CASH DEFICIT

In the following this section must presents the Cash flow operated with the CashflowSim software [from
CASHFLOW_software folder]

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