Business Proposal for a Tutoring Agency Essay

Executive SummaryThe design is for a give instructioning conjunction animald in the eastside capital of the United Kingdom affair in theUK. This is tone ending to be a union that leave behind be forged among 3 partners Shirin Akhter, Meer Hossain and Faisal Ifitkhar. The barter pass on be financed by the partners themselves, with the scratch distri scarceed proportionately after courts ar considered.The semiprivate tutoring industry in the UK is now experiencing a steady growth, with raft paying a massive amount of funds per bit to secure the profit of an academic ally answer tutor. However, this telephoner is foc apply much than on creating a food mart for mess that sack non afford to pay 70 to 100 for a tete-a-tete tutor. completely 3 of the partners had round experience in being just about(prenominal)(prenominal) students to private tutors and private tutors themselves, and accordingly defecate collaborated to utilise the combined skills to enter the trade of closed-door Tutoring.The first step of this venture is to be intimate up with a business conception. The programme imparting tour a document that leave assistance in the development of the partnership. As there is rattling stripped-d aver make up consideration involved in this project, the partners be non pursuit either financing from any(prenominal) separate investors.The thwartketBased on unlike youthfuls handles, individualal research conducted on p bents residing in the vitamin E capital of the United Kingdom ara and considering the experience and capability of the partners (who impart be the tutors as sanitary), the fraternity has found out the predilectionl cross grocery. The target market has 3 separate segments Students preparing for the Entrance Exam, 13+ and GCSE students. The initial base of students allow comprise of children of unlike p arnts the tutors pass a personalized connection with. The heathen similarity (the tutors and emf p atomic number 18nts be of Bangladeshi ethnicity) is and then the pivotal calculate in this take. However, the telephoner wishes to become one of the largest tutoring agencies in eastern hemisphere London. thence it plans to tutor children from other heathenish backgrounds gradually.The runThe work provided to the target result comprise of one to one tutoring, sort tutoring, GCSE exam preparation and online services ( societal media). The telephoner would i carry only promote groups academic terms as it is address effectual for both tutors and the students. Although private sessions terminate be deemed as being focused and intensive, group session make room for healthy debate and debateion, thus enhancing the erudition procedure. The serve up of direction would be found on personal skills match with salarydback from other partners and feedback from the students. The focus of the services is not of immediate satisfaction of queries, but o f damp understanding of the concepts related to tutoring.The subjects in which the participation offers private tutoring imply crinkle Studies, Accounting, Physics, Chemistry, Science and math, and verbal and Non-verbal Reasoning. advance and publicizingThe initial base of students that welcome been proposed here are not at par with the overflowing families, thence the USP of the proposed company is that it exit provide tutoring service to students for a ballparksensible price. It has been noticed that the average price range for tutors in East London is 15 to 20 per mo, therefore the company bequeath provide the sessions 1 and half(a) hour long for the same money. It mountain therefore hold it ego as a company that is inexpensive.The partnership wishes to use the most effective advertising for the marginal court as well. wherefore it would use parole of Mouth as its main promotional tool. Satisfied students and their parents are therefore the most strategic c omponent in their promotional mix. The company will as well as make use of soci equal Media for promoting the company, as well as to use the online platform for feedback from the students and to assist the students online when leaded. The company would to a fault earn some(prenominal) sales promotion in the form of introductory price offer, much(prenominal) as getting 5 sessions for the price of 4. However, the details of such(prenominal) sessions are yet to be discussed.ManagementThe management of the company would comprise of all 3 partners, however, as per the legal requirement of UK, Meer Hossain will act as the nominated / general partner for the company. However the quest for the partners to act as managers will only arise after it has grown considerably. The managers are therefore the practiceees of the company.All 3 partners are Graduate and professionals who in like manner had experience as private tutors. The partners excessively have experience in workings as supervisors / managers in their own professional area. They have become more and more heathenly tolerant and astute, as they have been working in a multicultural country for more than a some socio-economic classs.The management will act as trainers when the company is going to turn up employing other tutors for the company. afterlife plansThe company plans to ext dismiss it services to imply undergraduate students as their customers. The company in any case has plans to frozen up a website, as well as start the option of depiction conferencing in the future.1. Description of the blood1.1. legationThe company would approach t to each oneing in an forward-looking and unique expression with the idea of inspection and repairing creating a bridge between students and the subject they need to have a good grasp on. The created and focused execute of educational activity would equip the students with the necessary tools needed for improving their understanding and thus achie ving victor in their studies. The company is valued by the mental satisfaction and the unmistakable outcomes of the students. The success of the company rests on the success of the students.1.2. The key factors1. Creating effective and innovative methods of approaching individual subjects and the sections within them for the easiest possible understanding of the challenging subject matters.2. Increasing market forepart via raillery of mouth promotion achieved through the excellence in service and knowledge distribution.3. Creating a constant feedback touch whereby the needs of the individuals are assessed and the serve upes tailored as a result.1.3. Goals1. To be the market leader in tutoring service in East London, detailally in the London Borough of Tower Hamlets by the end of course of instruction 4.2. To picture the gross of the company by the end of Year 2.3. To extend the tutoring service to Undergraduate students by the end of Year 2.4. To establish a strong online presence via interactive web learning process by the end of year 2.1.4. Scope of the business tally to Smith (2012), a micro-business is defined by the involvement of 1 to 4 people, and a small business has 5 to 20 people in the enterprise Smith, H. (2012) Learn minor(ip) stemma arriveup in 7 Days, Wiley, Milton, QLD, AUS, p 2. The proposed Tuition agency after part be therefore defined as a micro-business as the list of people in the core business would be 3, at least(prenominal) at the out flummox. As farthermost as the intents and objectives are concerned, the business aims to be slightly bigger that a small business as far as the aforementioned definition is concerned.1.5. The companyThe proposed company would provide tutoring services in few selected subjects for students ranging from 11+ to the GCSE qualification, focusing primarily in the East End of London, UK. The courses the company aims to provide tutoring support embroils Mathematics, Physics, Chemistry, Busine ss Studies and Accounting. The company would to a fault provide tutoring supports for students interested in other subjects, but would act as a contact point would primarily outsource such t look ats, performing as an intermediary in the process.The tutoring sessions would focus on assisting students grasping evidently difficult concepts in the aforementioned areas of study. The process taught would attention them perform break out in their respective schools and / or educational institutes. It would in any case help them take a crap a strategy for any forth feeler exams. The service would also assist them in understanding the effective method of writing unlike essays relating to the subject(s). The company aspires to prepare student in a manner where they would empowered to enlighten miscellaneous problems on their own, preferably than approaching individual tasks on a short term root.1.6. The ownersThe proposed company would be owned by 3 people Shirin Akhter, Meer Hossa in and Faisal Iftikhar. The company would therefore be a partnership. The ownership is expect to remain un diversenessd, but extenuating circumstances might bring change to the ownership structure.1.7. Legal and regulatory frame of the companyBased on the classification as stipulated by UK, the owners will form a modified partnership express mail Partnership GPO2, http//www.companieshouse.gov.uk/about/gbhtml/gpo2.shtml, accessed 10 dread 2013. thitherfore the owners or partners of this company will be liable for all debts and obligations, however, the scope of such debts and obligations will not be more than the individual investments towards the company.As mentioned in the proposal, the company would be registered as a partnership. According to the present definitions set out by the Department of Work and Pensions, the owners (partners) of the company would therefore be classified as self-employed. The company would not itself pay any taxes rather taxes would only afford on th e individual revenue enhancements of the partners in the business Set up a business partnership, https//www.gov.uk/set-up-business-partnership, accessed 10 fearful 2013.Some of the terms of the conformity will complicate the pursuit1. The profit of the business will be proportionate to the initial capital invested by the individuals entering into the agreement.2. Meer Hossain has agreed to be the nominated partner as per the requirement of the the UK government for a partnership at the outset. Therefore the company will treat Meer Hossain as the only limited partner / general partner at the outset. Any amendments would be discussed upon and the changes would be done accordingly.3. The partners will also act as the employees of the company, and they would peck salary as employees of the company according to the service they provide, based on the rates persistent.1.7.1. DBS ChecksThe revelation and Barring receipts (DBS) has bare-assed-madely replaced the CRB checks in the UK. Although this is not a requirement for private tutors in terms of their business Fagg, H. (January 19th, 2013) young revealing and Barring Service (DBS) What it means for private tutors, http//www.thetutorblog.com/tag/crb/, accessed 10 August 2013, because the target market for this business involves working with children, the partners, as employees, would apply for a DBS check on themselves with Disclosure Scotland, a branch of DBS that allows for self employed tutors residing in England, Scotland and Wales to be checked. It is considered tobe an essential part of the company Guide Disclosure and Barring Service (DBS) checks (previously CRB checks), https//www.gov.uk/disclosure-barring-service-check, accessed 10 August 2013.2. Business opportunitiesAn investigation into a possible business always begins by analysis various opportunities. Therefore all the sources relating to an opportunity should be studied and analysed, and the process should also be done on a ashesatic and regular basis Murthy, C.S.V. (2010) elflike Scale Industries and Entrepreneurial Development, Global Media, (Mumbai, IND), p 43.The tutoring service is not something novel in idea however, the aim of the company is to provide the service at a reasonable court. According to Lesonsky (2001), it is not necessary (for most start-up companies) to come up with a sunrise(prenominal) and unique idea. A new business laughingstock venture into an existing industry, planning on how it can improve on the existing practices and how it can differ from its competition Lesonsky, R. (2001) Start Your possess Business The Only Start-Up Book Youll Ever Need, Entrepreneur Press, Irvine, CA, the States, p 24. The partners in this visit have agreed on an opportunity that they heart they can make the most use of by bonnie the affordable solution to tutoring needs.2.1. The driving forces2.1.1. ExperienceAs Amar Bhide looked into the private ventures in America, he discovered that new ventures in t he country were usually problems that the founders of such companies face themselves and were looking at solving those problems. 71% of these domain experts were actually people who approached an existing problem differently in their area of business, whilst 20% used their serendipitous ideas in their new business ventures Price, R. W. (2004) Roadmap to Entrepreneurial Success right Strategies for Building aHigh-Profit Business, AMACOM Books, Saranac Lake, NY, regular army, p 73.The 3 tutors have all come from Bangladesh, where they already had experience of being taught by a private tutor and being a tutor themselves. They have all felt that for some of the trickier subjects, such as higher mathematics (Binominal Equations, Matrices, Calculus, Statics and Dynamics etc.), Physics and Quantum Physics, constitutional Chemistry and various other subjects required that the students have a particular understanding outside the realms of a classroom environment. However it was not tr uly a business plan until recently, when they realised that there is a evolution pick out for such personal tutoring in the UK as well.As mentioned by Pinson and Jinnett (2006), an entrepreneur can look into his or her interests and volunteer experience for an idea of a business. They also added that capability is important in regards of a new business, and any specialised skills that can complement Pinson, L. and Jinnett, J. (2006) move to Small Business Start-Up Everything You Need to Know to Turn Your Idea Into a Successful Business, Dearborn Trade, A Kaplan Professional Company, Chicago, IL, USA, p 2-3. The partners realised that their experience in being both students and private tutors can come in handy for the new business setup. Therefore they agreed to come up with this new business venture.2.1.2. A rising marketThe market of private tutoring is now experiencing a impress growth in the UK. According to a recent news enunciate by the BBC Burns, J. (2 August 2013) one-o n-one tutors pull ahead grammar chances, advises survey, http//www.bbc.co.uk/news/education-23547666, accessed 7th of August, 2013, A pi hoi polloi study found out that many parents in the UK at present rely on the service of private tutors to maturation the chance of their children of securing a place in a grammar school. As the poll suggests, around 72% of the 212 first year grammar school students surveyed had undergone private tutoring for seize exams during their final long time in primary schools. Of this 72%, 5% accredited private tutoring as part of a small group, whilst 67%of the grammar school students subscribed to a one-to-one form of private tutoring. Around 78% of these students believed that private tutoring was adjuvant for them in the enhancement of their performance in the entrance exam. Prof Judy Ireson mentioned that some of the parents perceive that this process of private tutoring is rational as it can help their children to perform well in the entrance exams for schools of their choice Burns, J. (2 August 2013) hole-and-corner(a) tutors boost grammar chances, suggests survey, http//www.bbc.co.uk/news/education-23547666, accessed 7th of August, 2013.In a news report in 2009, Guardian stated that 45% of students based in London has had a private tutor. The percentage is now increasing, and according to TES, around 25% of all students between 11-18 years of age have all received some form of private tutoring, specifically in mathematics Dyer, A. (24 July 2013) Private Tuition Is on the Rise, Should the exertion Be Regulated? HUFFPOST STUDENTS United Kingdom, http//www.huffingtonpost.co.uk/alex-dyer/private- schooling-regulation_b_3643876.html, accessed eighth August 2013.2.1.3. Better return on investment possibilityPrivate tutoring is pretty usual in more affluent households. There are few London based tutoring firms that hire graduates from Oxford and Cambridge, who sometimes charge a hefty amount of 70 100 for a one hour sessi on, just for the preparation of entrance exams. There are also reports that suggest that parents on average incomes are also subscribing to the service of private tutors, as mentioned by the private tutoring chain Explore Learning Aug 17th 2013 Private guardianship Premium economy, The Economist (British Edition), http//www.economist.com/news/britain/21583707-private-education-becoming-more-egalitarian-premium-economy, accessed 20th of August, 2013.2.2. Potential customerThe tutors for the company are all qualified as graduates. However, given the scenario as depicted in the news reports above, the tutors have decided notto teach, as of now, any higher than GCSE aim. The target market in this regard can be broadly classified into 3 segmentsPre-Entrance students Students who want to prepare for entrance for a grammar school of their choice fall into this category. The subjects that would be taught in this regard accept Mathematics, Verbal Reasoning and Non-verbal reasoning. Engli sh has been excluded callable to the non-native status of the tutors.13+ students Students in this target student can receive tutoring in Science, Mathematics and Verbal and Non-verbal Reasoning.GCSE students for the GCSE students, the subjects that will be covered will include Business Studies and Accounting, Science, Chemistry, Physics and Mathematics.2.3. CompetitionTutors are generally people who have specific expertise and little extra time. A significant amount of competitors are mainly one-to-one private tutors that advertise on various online websites, such as Gumtree http//www.gumtree.com/other-tuition-lesson-services/london/private+tutor, accessed 09 August, 2013.With the growing number of tutoring agencies with a carnal establishment and a strong online presence, the competition in the private tutoring market is varied and intense. According to a directory website of East London, the average rate per hour as charged ranges from 15 to 20 per hour http//www.hometutorsdire ctory.co.uk/EastLondonTutors.html, accessed 09 August, 2013.3. selling plan and StrategyThe difference between a rapidly growing company and a slowly growing or declining company operating in the same target market is in the effectivemarketing of the former. As an example, companies such as Coca-Cola, Frito-Lay and Gillette have all succeeded in their respective market because of the fact that they were able to market better than their competitors. Therefore to grow a business, it is essential to become an effective marketer, promoter and advertiser as well Henricks, M. (2001) Grow Your Business, Entrepreneur Press, Irvine, CA, USA, p 152.The marketing plan in this regard includes the construction of a successful strategy for the target. Burk and Lehman (2004) define strategy as a plan of action that has been designed purposely towards a goal or a set of goals. The components of a good strategy should include an assessment of the state of the business at the time of formulating the strategy, identification of the goals to be achieved, and the processes adopted to reach the goal and to consider the problems in the process Burk, J. and Lehman, R. (2004) financing Your Small Business, Sphinx Publishing, an Imprint of Sourcebooks, Inc., Naperville, IL, USA, p 21.3.1. Initial essentialsThis is a start-up business therefore an analysis of present performance of the business cannot be done. There are however a few essentials that has been agreed upon forward the business can be started. These essentials include3.1.1. DBS checksThe DBS checks of the 3 person involved will be done via Disclosure Scotland, and will cost 25 for each person involved Disclosure Scotland Apply online for Basic Disclosure represent, http//www.disclosurescotland.co.uk/apply-online/cost, accessed 10 August 2013.3.1.2. adjustment and licensingThe Company name would be registered and would aim for a certifiedauthentication by filling up an IN01 form and that would cost 20 http//www.companies house.gov.uk/infoAndGuide/faq/registerNewComp.shtml, Accessed 19 August, 2013. The company would also apply for a limited partnership by filling up an LP5 form LP5 form, restrain PARTNERSHIPS ACT 1907 Application for registration of a curb Partnership(In unity with section 8 of the Limited Partnerships Act 1907), http//www.companieshouse.gov.uk/forms/generalForms/LP5_Application_for_Registration_of_a_Limited_Partnership_and_Statement_of_particulars_and_of_the.pdf, and the cost in this regard is also 20.3.1.3. Company spoken languageFor the time being, the company will be registered against the residential address of Meer Hossain as the nominated / general partner of the firm.3.2. Objectives of the BusinessThe goals of the business have already been discussed in the short description of the business. However, in this section, the goals would be further disquieted down in what is known as SMART objectives.SMART is an acronym that is ordinarily used for determining objectives of a business. SMART objectives are objectives that are Specific, Measurable, Achievable, realistic and Timebound, or SMART Martin, V. (2006) Managing Projects in Human Resources, pedagogy and Development, Kogan Page Ltd., London, GBR, p 11.Based on the goals of the organisation, the objectives set for the company therefore are as follows1. To have an overall average revenue of 5,000 per month at the end of 1st year.2. To increase the revenue to 10,000 at the end of year 2.3. To employ at least 2 local (UK academic qualification) graduate students before the end of year 2.4. To create an interactive website at the end of year 2 for potential and existing customers.The objectives here specified are generally related to the expected future performance of the business.3.3. The Unique Selling bid (USP)It is important for a company to come up with a USP for its products or services to stand out from the competition. USP has been defined by Rosse Reeves (1961) as a proposition that com municates to the customers about a unique benefit that can be acquired from a product or service and the benefit needs to have enough power to account for extensive revenue Reeves, R. (1961) Reality in advert, Knopf, New York, NY, USA. USP was considered to be advertising imperative for any brand structure exercise.This company will promote tutoring at a reasonable cost. The USP of this company is therefore affordable education for aspiring students. It is evident that although the target customers are students, the USP will be aimed at parents who would pay for the service and therefore would discipline the benefit in this process3.4. PricingAfter looking at various figures in the market, the pricing that has been set for various students are as followsFor Entrance Exam preparation 15 per session of 1 and half hour.For 13+ tutoring 15 per session of 1 and half hour.For GCSE preparation 20 per session of 1 and half hour.The pricing has been agreed upon based on the market in Eas t London, and the quoted price above offers more for the money as spent in the existing market of Private tutoring.3.5. Promotion and AdvertisingThe company would be promoted via 2 major media The net and word of mouth. The former can also be termed as change Media Marketing, and will rely mainly on a Facebook page. There would also be Sales promotion, therefore inserting a bit of inducing for the beginners and encouraging quite a little purchase for the company.3.5.1. forge of MouthAs it has been mentioned before, the partners of the company has each conducted (unstructured) info collection in areas in the Tower Hamlets Borough in an attempt to assess the need of a tutoring service. These surveys were conducted among people that they personally knew. This is where the word of mouth process comes in.Word of mouth is considered to be the most effective method in make the process of decision easier and also in accelerating the decision process of potential customers Silverman, G. (2001) Secrets of word-of-mouth Marketing How to Trigger Exponential Sales with Runaway Word of Mouth, AMACOM Books, New York, NY, USA, p 21. Word of mouth advertising is done by fulfil customers, friends and normally close relatives, but satisfied customers are the most desired in the mix.Each of the partners started private tutoring in the process of helping out a friend or a family member, and that would also be the starting point for this company. The partners would start by tutoring children of the parents they have conducted a survey on, and that would ensure that the process of word of mouth gets started. They would ask these parents to refer them toothers, as well as refer any essay student to them.3.5.2. Sales PromotionSales promotion will also be adopted by the company, whereby the target customers would be given an incentive outside the scope of advertising Hundekar, S.G., Appannaiah, H.R. and Reddy, P.N. (2010) Principles of Marketing, Global Media, Mumbai, IND, p 103. In this case, the potential customers will be offered to take advantage of bulk purchases, therefore they can vitiate 5 sessions for the price of 4. The sales promotion would also propel customers to create a small group of students at their homes for studying, thus lessen the cost per head in the process..3.5.3. sociable media marketingIn this twenty-four hour period and age of Facebook, Twitter, Buzzfeed, LinkedIn and various other social media networks, it has become easier to setup a platform that is virtually free and tremendously interactive.The act of posting and creating various contents online creates a circle of like minded individuals that interact with each other Agresta, S., Bough, B. B. and Miletsky, J. I. (2010) Perspectives on Social Media Marketing, ground level engineering / Cengage Learning, Boston, MA, USA, p 2, p 36. Social media have now become an important sector on its own right is considered vital for influencing behaviour of consumers Assenov, I . (2012) Social Media Marketing and the cordial reception Industry Evidence from Thailand. 6-7 folkt. The participants in social media interaction becomes part of the oscillation of social feedback, as demonstrated in the figure below. The Cycle also illustrates how social media can influence a market Evans, D (2010) Social Media Marketing The Next generation of Business Engagement, Sybex, Hoboken, NJ, USA.picFigure 1 Social Feedback Cycle(Source Evans. D, 2010)Amongst the existing set of Social Media Network, Facebook is considered to have the highest reach. As of 2011, Facebook had more than five hundred million users worldwide Weintraub, M. (2011) Killer Facebook Ads Master Cutting-Edge Facebook Advertising Techniques (2nd Edition), Sybex, Hoboken, NJ, USA, p 2. The number of Facebook users is ever increasing. Facebook also has the capability to be personal and professional. It can be used to promote a venture as well as to connect with close ones and friends Adler, L. and Si llars, R. (2010) Linked Photographers Guide to Online Marketing and Social Media, run-in Technology / Cengage Learning, Boston, MA, USA.The partners have decided to open up a Facebook page under the name of the company. The page would act not only as a promotional tool, but it would also act as a platform for feedback from existing students, as they will be able to post various of their queries on a session they have already undergone. The page would also include useful links, videos and study materials relating to the sessions.4. trading operations and Processes4.1. Background of the owners / employees1. Shirin Akhter She is currently doing her MBA with a reputed institute in the UK. He is from a Bangladeshi descent, and has been an experienced private tutor for some time in Bangladesh. Her areas of expertise include Business Studies, Mathematics and Chemistry.2. Meer Hossain An ex-engineer in the marine industry, Mr. Meer Hossain has in depth academic knowledge of Applied Physic s and Electronics. Like his partner, He also was a house tutor in Bangladesh for a considerable period of time before he moved out to Russia, at long last coming to the UK. He works as a trainer in a retail setting, and therefore is also adept in communicating in the most culturally relevant manner. His are of expertiseinclude Physics, Mathematics and Chemistry.3. Faisal Iftikhar Alumni of one of the top business schools in Asia, Faisal Ifitkhar is currently working in the retail industry as a trainer and a customer service assistant. He is adept in creative writing, and recent interests into Physics have increased his understanding of the subject. He has the experience of teaching in a classroom environment as well as a one to one private tutor. His Area of Expertise include Mathematics, Business Studies and Accounting.All of these individuals have one thing in common they are all good at assessing the needs of the individual and customise their process of teaching accordingly. Th e partners have also decided to hold weekly meetings that would discuss the problem areas of their own students and work out the best solutions, so that the individual is catered for in a more effective process.4.2. Personnel planThe company plan to improve their capability and try to reach the undergraduate market by the end of Year 2. It also plans to employ more tutors at the beginning of Year 2. However, the requirement of extra tutors depends on the faculty and the willingness of the existing teachers.There would be a training plan devised for any prospective teacher who is being hired. The training plan would involve the following few processes1. Training on the Job The trainer that has been recruited will be asked to accompany the existing tutors and learn how tutoring is done. This would give them a practical sentience of what is involved in the process of teaching.2. Personal assessment on the skills Although a tutor will be hired based on a respectable academic record, they would still need to be assessed by the company, and educate if necessary on areas where there is room for improvement.3. Feedback and group communication The new tutor will be included in the weekly meetings that discuss specific problems relating to specific students. The discussion would not only assist in learning various tricks of the trade, but the employee will be able to put in his or her feedback and thus add value to the company.4.3. dealing with the start upMartin and Crisp (1992) have described that the initial few months of a business are usually the most expensive ones, and a successful business must have enough to keep it going for several months Martin, C. L. And Crisp, M. G. (Editor) (1992) Starting Your New Business A Guide for Entrepreneurs, Course Technology / Cengage Learning, Menlo Park, CA, USA, p 12. This has been considered by the partners. They have all decided that would expand to work in their present workplace, but with reduced hours, and therefor e any special cost relating to the company would be reimbursed by the partners of the company. The input in this regard would count as investment, and therefore the profit would be share accordingly, at the end of they 1st year, in proportionate to individual investment.4.4. The process of value creationMore and more companies are now becoming socially responsible. It is not enough that a company is profitable, but it is important that a company adds value to the society. Social Entrepreneurs are therefore considered to be the new wave of entrepreneurs.In terms of creating value, the distinction can be made between those who are social entrepreneurs and those who are commercial entrepreneurs. According to Volkmann, Tokarski and Ernst (2012), Commercial entrepreneurs are more focused on value appropriation, whilst the social entrepreneurs are focused on value creation Volkmann, C. K., Tokarski, K. O. and Ernst, K. (2012) Social Entrepreneurship and Social Business An Introduction a nd Discussion with suit of clothes Studies, Springer Gabler, p 106.The company in this regard can be termed as a motley of both. The obvious value is that of a commercial nature, the business is going to be involved in a profit oriented service industry. However, due to the nature of the service provided, it can be said that the company will also add value as it becomes part of the educational system in the country.4.5. Diversity managementThe company aims at tutoring students who are based in the East London Area. East London has a lot of Bangladeshi people, which is therefore culturally and linguistically easier for the owners to relate to. Keeping that in mind, the company is to consider that fact that to be the top of all tutoring agencies, it would need to be able to deal with a diverse group of students coming from a diverse group of ethnicity. Therefore a certain level of Cultural Intelligence or CQ is expected from the tutors.According to Ang & Dyne (2008), CQ or cultural intelligence is the capability of a person to function in various cultural settings Ang, S. and Van Dyne, L. (Editor) (2008) Handbook of Cultural Intelligence Theory, Measurement, and Applications, M.E. Sharpe, Inc., Armonk, NY, USA. The partners, working and quick in UK for a considerable period of time, has exhibited CQ towards their co-workers, managers and employees. That learning will be incorporated as the company starts to serve in different cultural settings.The hiring process as explained would also consider in these facts, and preference would be given to someone from a different cultural background than that of the owners.4.6. Services offeredThe target market has been identified and classified in preceding sections of this proposal. In this section the services are classified and explained in terms of what kind of tutoring services can be provided among the target consumers.4.6.1. One to one tuitionOne to one tuition would obviously be the most common one in this regard . The teacher will travel to the students residence and teach him or her on an individual basis.4.6.2. Group sessionNot only is group session more cost effective, it is also more effective in terms of learning. A group session enables the students to interact and communicate with each other and thus creates a better understanding of the subject matter. Group sessions would therefore be especially further for the students.4.6.3. GCSE revision coursesAs the GCSE exams approach the students, this service would enable the students to get help with the following Preparing for the exam Learning various exam techniques Guidance for courseworkThis would also include appraisal services for dissertation and for coursework.4.6.4. Online servicesBased mainly on social media feedback, this service would actually use the online platform for feedback and queries from the students and deal with the queries promptly.4.7. Future operationsThese services will be part of the start up business, and the company has plans to add more services as the company improves. By the end of year2, the company plans to serve Undergraduate students, and has plans to include place learning, whereby the internet will be used for group session via video conferencing.5. Technological considerationThere is no denying the impact internet has on the present business scenario. It is considered as one of the greatest disruptive engineering to hit the world since electricity. GE chairman Jack F. Welch (1999) said that the internet was the single most important event in the U.S. economy since the industrial Revolution Price, R. W. (2004) Roadmap to Entrepreneurial Success Powerful Strategies for Building a High-Profit Business, AMACOM Books, Saranac Lake, NY, USA, p 45.The technological consideration in this regard is mainly the maximum customs duty of the internet, especially via Facebook. A Facebook Page will be created for the students and the parents. The Facebook page will include the following1. Discussion (Generated by the App Forums) It is important that students discuss various problems they face with specific subject areas.2. Videos various useful hints and tips would be uploaded from the tutors, discussing very specific methods and processes of overcoming various problems regarding subjects.3. Photos Photos will include the success of various students who have subscribed to the service of the company, as well as various other related photos, and, true to the internet generation, various Memes will also be uploaded to maintain a lighter side of studying.4. Docs this is more catch for a group rather than a page. The docssection will include various useful hints and tips, shortcuts, and various other methods and processes that are categorised in a coherent order for existing sets of students.However, a Page on Facebook is more public, whereas the privacy of a group can be controlled. Therefore most of the materials will become part of a Facebook group, enabling fee payin g students to get the most out of social media.5.1 Future online plans5.1.1. Website umpteen renowned Tutor services, as well as companies, have their own websites. Although there is a cost consideration in a website, the flexibility that can be offered on a website would outweigh the comparatively minimal cost. The website would mainly have the option to pay / register online, therefore making it easier on future customers.5.1.2. Distance learning via video conferencingThere are numerous softwares, apps and programmes that allow for video conferencing for virtually no cost. The only cost consideration in this regard therefore is the initial setup, which would buying a business internet connection for the company, a physical facility to set the computers, and of course, computers that will be used for video conferencing. Video conferencing would thus increase the reach and decrease the cost of locomotion.5.2 CommunicationTo ensure cost minimisation, the partners will make use of th eir existing mobile phones for various forms of communication. However, there are plans to subscribe pay-as-you-go phone services to deal with future communication, if frequency of calls increase, and also if the cost becomes more than thenumber of calls the partners can afford. The company expects to include pay-as-you-go phones in the 2nd half of the year.6. Financial ConsiderationThere is little start-up cost involved in the business. Investment would come mainly from the partners themselves. However, there are future cost and investment considerations in this business that have been mentioned, however, the tenderness is based on the gibbousness of increase in business.6.1. Estimated initial / fixed costsThe total cost for the start-up is 115 in total. There are also costs of travelling, which comes at 96.80 per month for each tutor (based on a govern 2-4 rate in a travel card). The travelling cost might increase if the target audience lives in zone 1 (which includes Aldgate a nd Liverpool Street) or is outside zone 4 in East London. These costs will be accounted and paid for from the revenue of the individual tutors. The tutors in this regard might come up with a travel allowance account to adjust for the salary of the employee.Adjusting the total cost of travelling to 3,500 for the year (rounded from 3484.80 yearly for the company based on zone 2-4 travelling only), the total cost comes as followspicFigure 2 Estimated (fixed) Cost for Year 1 summarize Cost for Year 1 Travel cost 3,500 Start up cost 115 Total Cost 3,615 6.2. Other CostsThere are other costs that might occur, which can be termed as variable costs, though not in its strictest terms of production cost per unit.As far as the plans are concerned, if the company needs to buy pay-as-you-go connections, internet connection, a facility and a video conference setup, additional costs will occur.As an example, if the company is able to rent a space in East London for the aforementioned purposes, t he cost would be as followsRent / month 1,000 2,000 (depending on the facility and the area)Internet payment / month 16 (BT Business Broadband) latest Bt Business Deals http//www.uswitch.com/broadband/providers/bt_business/?bb=1&gclid=CJ2ZrMW3m7kCFZPItAodcAIAPQcontent, accessed 19 August 20133 pay-as-you-go phones 20 x 3 = 60 per month (O2 pay and go-go-go service) O2 Pay and Go Go Go https//www.o2.co.uk/freesim/, accessed 19 August 20133 laptops (with webcams and microphones) Average market price 320*3 = 960 http//www.currys.co.uk/gbuk/computing/laptops-315-c.html, accessed 19 August 2013.6.3. Expected revenueIn terms of the projection of the revenue expected in the future, the company has gone for a conservative approach. The demand for tutors only from private contacts is deemed enough to reach a monthly target of 5,000. Therefore it does not account for any new students that will be make use of the service in the future. However, the 2nd year projection can be termed as opti mistic, as the assumption is that the business will actually grow and will be able to generate double the revenue.The revenues, as expected from the operations, are as followspicFigure Expected Revenue for Years 1 and 2 Average income / month Year 1 Year 2 Entrance students 2500 3,500 13+ 1500 3,500 GCSE 1000 3,000 References1. Smith, H. (2012) Learn Small Business Startup in 7 Days, Wiley, Milton, QLD, AUS, p 22. Murthy, C.S.V. (2010) Small Scale Industries and Entrepreneurial Development, Global Media, (Mumbai, IND), p 433. Lesonsky, R. 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(2001) Secrets of Word-of-Mouth Marketing How to Trigger Exponential Sales Through Runaway Word of Mouth, AMACOM Books, New York, NY, USA, p 21.11. Hundekar, S.G., Appannaiah, H.R. and Reddy, P.N. (2010) Principles of Marketing, Global Media, Mumbai, IND, p 10312. Agresta, S., Bough, B. B. and Miletsky, J. I. (2010) Perspectives on Social Media Marketing, Course Technology / Cengage Learning, Boston, MA, USA, p 2, p 36.13. Assenov, I. (2012) Social Media Marketing and the Hospitality Industry Evidence from Thailand. 6- 7 Sept14. Evans, D (2010) Social Media Marketing The Next Generation of Business Engagement, Sybex, Hoboken, NJ, USA15. Weintraub, M. (2011) Killer Facebook Ads Master Cutting-Edge Facebook Advertising Techniques (2nd Edition), Sybex, Hoboken, NJ, USA, p 2.16. Adler, L. and Sillars, R. (2010) Linked Photographers Guide to Online Marketing and Social Media, Course Technology / Cengage Learning, Boston, MA, USA17. Martin, C. L. And Crisp, M. G. (Editor) (1992) Starting Your New Business A Guide for Entrepreneurs, Course Technology / Cengage Learning, Menlo Park, CA, USA, p 12.18. Volkmann, C. K., Tokarski, K. O. and Ernst, K. (2012) SocialEntrepreneurship and Social Business An Introduction and Discussion with Case Studies, Springer Gabler, p 10619. Ang, S. and Van Dyne, L. (Editor) (2008) Handbook of Cultural Intelligence Theory, Measurement, and Applications, M.E. Sharpe, Inc., Armonk, NY, USA20. Price, R. W. (2004) Roadmap to Entrepreneurial Success Powerful Strategies for Building a High-Profit Business, AMACOM Books, Saranac Lake, NY, USA, p 45.21. Limited Partnership GPO2, http//www.companieshouse.gov.uk/about/gbhtml/gpo2.shtml, accessed 10 August 201322. Set up a business partnership, https//www.gov.uk/set-up-business-partnership, accessed 10 August 201323. Fagg, H. (January 19th, 2013) New Disclosure and Barring Service (DBS) What it means for private tutors, http//www.thetutorblog.com/tag/crb/, accessed 10 August 201324. Guide Disclosure and Barring Service (DBS) checks (previously CRB checks), https//www.gov.uk/disclosure-barring-service-check, accessed 10 August 201325. Burns, J. (2 August 2013) Private tutors boost grammar chances, suggests survey, http//www.bbc.co.uk/news/education-23547666, accessed 7th of August, 201326. Dyer, A. (24 July 2013) Private Tuition Is on the Rise, Should the Industry Be Regulated? HUFFPOST STUDENTS United Kingdom, http//www.huffingtonpost.co.uk/alex-dyer/private-tuition-regulation_b_3643876.html, accessed 8th August 2 01327. Aug 17th 2013 Private tuition Premium economy, The Economist (British Edition), http//www.economist.com/news/britain/21583707-private-education-becoming-more-egalitarian-premium-economy, accessed 20th of August, 201328. http//www.gumtree.com/other-tuition-lesson-services/london/private+tutor, accessed 09 August, 201329. http//www.hometutorsdirectory.co.uk/EastLondonTutors.html, accessed 09 August, 2013.30. Disclosure Scotland Apply online for Basic Disclosure Cost, http//www.disclosurescotland.co.uk/apply-online/cost, accessed 10 August 201331. http//www.companieshouse.gov.uk/infoAndGuide/faq/registerNewComp.shtml, Accessed 19 August, 201332. LP5 form, LIMITED PARTNERSHIPS ACT 1907 Application for Registration of a Limited Partnership (In accordance with section 8 of the Limited Partnerships Act 1907), http//www.companieshouse.gov.uk/forms/generalForms/LP5_Application_for_Registration_of_a_Limited_Partnership_and_Statement_of_particulars_and_of_the.pdf, accessed 19 August 201 333. 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O2 Pay and Go Go Go https//www.o2.co.uk/freesim/, accessed 19 August 201335. http//www.currys.co.uk/gbuk/computing/laptops-315-c.html, accessed 19 August 2013AppendixTable 1 Expected Revenue, Year 1Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Entrance Exam 1,000 1,000 1,500 2,000 2,500 5,000 6,000 6,500 4,500 0 0 0 13+ 1,500 1,500 2,000 2,000 2,000 2,500 1,500 0 1,000 1,500 1,500 1,000 GCSE 1,000 1,000 1,000 1,500 2,500 2,500 1,500 0 0 0 500 500 Total Revenue 3,500 3,500 4,500 5,500 7,000 10,000 9,000 6,500 5,500 1,500 2,000 1,500 Table 2 Teachers Payment, Year 1Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Shirin 800 800 1200 1200 2000 2 cd 2400 1600 1440 400 480 400 Meer 1200 1200 1200 1600 2000 2800 2400 1600 1520 400 560 400 Faisal 800 800 1200 1600 1600 2800 2400 2000 1440 400 560 400 Total Payroll 2,800 2,80 0 3,600 4,400 5,600 8,000 7,200 5,200 4,400 1,200 1,600 1,200 Table 3 Profit and Loss (Before Taxes), Year 1Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Revenue 3,500 3,500 4,500 5,500 7,000 10,000 9,000 6,500 5,500 1,500 2,000 1,500 60,000 Fixed Cost 3615 0 0 0 0 0 0 0 0 0 0 0 3,615 Variable Costs 35 35 45 55 70 100 90 65 55 15 20 15 600 Teachers payment 2,800 2,800 3,600 4,400 5,600 8,000 7,200 5,200 4,400 1,200 1,600 1,200 48,000 Total Cost 6,450 2835 3,645 4455 5,670 8100 7,290 5265 4,455 1215 1,620 1215 52,215 Total Profit -2,950 665 855 1045 1,330 1900 1,710 1235 1,045 285 380 285 7,785 Note Variable costs are primed(p) as 1% of the expected revenue assumption includes additional cost of travelling (Zone 1).