Business Proposal for a Tutoring Agency Essay

Executive SummaryThe proposal is for a tutoring comp any based in the East London ara in theUK. This is going to be a partnership that onlyow be forged among 3 partners Shirin Akhter, Meer Hossain and Faisal Ifitkhar. The backup aloneow for be financed by the partners themselves, with the doughs distri just nowadaysed proportionately after be ar considered.The cloistered tutoring industry in the UK is this instant experiencing a steady growth, with people paying a considerable amount of money per hour to secure the assistances of an academically qualified tutor. and, this caller-out is focused more(prenominal) on creating a market for people that place non afford to pay 70 to 100 for a tete-a-tete tutor. either 3 of the partners had some experience in being both bookmans to esoteric tutors and private tutors themselves, and thereof have collaborated to utilise the combined skills to enter the market of secluded Tutoring.The first step of this venture is to num erate up with a profession plan. The plan exit act a document that volition assist in the development of the partnership. As there is very minimal cost consideration involved in this project, the partners be not seeking any financing from any other investors.The Market base on several(a) impudentlys reports, personal research conducted on p atomic number 18nts residing in the East London area and considering the experience and efficacy of the partners (who will be the tutors as well), the federation has found out the ideal target market. The target market has 3 separate segments Students preparing for the Entrance Exam, 13+ and GCSE students. The initial base of students will comprise of children of various parents the tutors have a personal affiliateion with. The cultural similarity (the tutors and potential parents are of Bangladeshi ethnicity) is therefore the opposite factor in this think. However, the company wishes to become one of the largest tutoring agencies in E ast London. Therefore it plans to tutor children from other cultural backgrounds gradually.The ServicesThe services addd to the target will comprise of one to one tutoring, conclave tutoring, GCSE trial preparation and online services (social media). The company would ideally promote groups sessions as it is cost impressive for both tutors and the students. Although private sessions mess be deemed as being focused and intensive, group session make room for healthy debate and dissertateion, thus enhancing the learning procedure. The procedure of inform would be based on personal skills coupled with feedback from other partners and feedback from the students. The focus of the services is not of immediate satisfaction of queries, but of better apprehensiveness of the concepts link up to tutoring.The subjects in which the company offers private tutoring complicate melodic phrase Studies, Accounting, Physics, Chemistry, Science and Mathematics, and verbal and Non-verbal Reason ing.Promotion and advertisingThe initial base of students that have been proposed here are not at par with the rich families, therefore the USP of the proposed company is that it will provide tutoring service to students for a reasonable price. It has been noticed that the fair(a) price range for tutors in East London is 15 to 20 per hour, therefore the company will provide the sessions 1 and half hour long for the same money. It can therefore establish itself as a company that is inexpensive.The partnership wishes to use the most effective advertising for the minimal cost as well. Therefore it would use password of Mouth as its main advanceal tool. Satisfied students and their parents are therefore the most important component in their promotional mix. The company will likewise make use of Social 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 needed. The company would similarly have some sales promotion in the form of introductory price offer, such as getting 5 sessions for the price of 4. However, the details of such sessions are yet to be discussed. watchfulnessThe 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 need for the partners to act as managers will only arise after it has grown considerably. The managers are therefore the employees of the company.All 3 partners are Graduate and professionals who excessively had experience as private tutors. The partners likewise have experience in working as supervisors / managers in their own professional area. They have become more and more culturally tolerant and astute, as they have been working in a multicultural country for more than a few days.The management will act as trainers when the company is going to start employing other tutors for the company.Future plansThe company plans to extend it services to let in Undergraduate students as their customers. The company as well has plans to set up a website, as well as start the option of word picture conferencing in the afterlife.1. Description of the avocation1.1. MissionThe company would get on teaching in an innovative and unique way with the idea of helping creating a bridge between students and the subject they need to have a entire grasp on. The produced and focused go of teaching would equip the students with the necessary tools needed for improving their apprehension and thus achieving success in their studies. The company is valued by the mental satisfaction and the observable 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 advent respective(prenominal) subjects and the roles within them for the easiest possible understanding of the challenging subject matters.2. Incre asing market presence via word of mouth promotion achieved through the excellence in service and knowledge distribution.3. Creating a continual feedback process whereby the needs of the individuals are assessed and the processes tailored as a result.1.3. Goals1. To be the market leader in tutoring service in East London, circumstantialally in the London Borough of Tower Hamlets by the end of year 4.2. To double the revenue 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 transactionAccording 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 elfin Business dineroup in 7 Days, Wiley, Milton, QLD, AUS, p 2. The proposed Tuition agency can be therefore defined as a micro-business as the r esult of people in the core business would be 3, at least at the outset. As far as the goals and objectives are concerned, the business nonpluss 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 mainly in the East End of London, UK. The courses the company aims to provide tutoring support entangles Mathematics, Physics, Chemistry, Business 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 tasks, acting as an intermediary in the process.The tutoring sessions would focus on assisting students grasping seemingly difficult concepts in the aforementioned areas of champaign. The process taught would help them perform better in their various(prenomi nal) schools and / or educational institutes. It would withal help them create a outline for any forthclimax exams. The service would also assist them in understanding the effective method of writing various essays relating to the subject(s). The company aspires to prepare student in a manner where they would empowered to solve various problems on their own, rather than approaching individual tasks on a short term basis.1.6. The ownersThe proposed company would be owned by 3 people Shirin Akhter, Meer Hossain and Faisal Iftikhar. The company would therefore be a partnership. The ownership is expected to remain unchanged, 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 Limited Partnership GPO2, http//www.companieshouse.gov.uk/about/gbhtml/gpo2.shtml, accessed 10 opulent 2013. Therefore the owners or partners of th is 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 separate as self-employed. The company would not itself pay any taxes rather taxes would only apply on the individual revenues of the partners in the business Set up a business partnership, https//www.gov.uk/set-up-business-partnership, accessed 10 lordly 2013.Some of the call of the agreement will include the following1. The profit of the business will be proportionate to the initial capital invested by the individuals entering into the agreement.2. Meer Hossain has concord to be the nominated partner as per the requirement of the the UK government for a partnership at the outset. Therefor e the company will look at 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 receive salary as employees of the company according to the service they provide, based on the rates fixed.1.7.1. DBS ChecksThe revelation and Barring Service (DBS) has recently 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) radical Disclosure and Barring Service (DBS) What it means for private tutors, http//www.thetutorblog.com/tag/crb/, accessed 10 howling(a) 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 systematic and regular basis Murthy, C.S.V. (2010) Small Scale Industries and Entrepreneurial Development, orbicular 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 cost. According to Lesonsky (2001), it is not necessary (for most start-up companies) to come up with a new and unique idea. A new business can 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) prick Your Own Business The Only Start-Up Book Youll Ever Need, Entrepreneur Press, Irvine, CA, ground forces, p 24. The partners in this regard have agreed on an opportunity that they feel they can make the most use of by becoming 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 the country were usually problems that the founders of such companies faced themselves and were looking at solving those problems. 71% of these domain experts were actually people who approached an existing problem other than in their area of business, whilst 20% used their serendipitous ideas in their new business ventures Price, R. W. (2004) Roadmap to Entrepreneurial Success Powerful Strategies for construct aHigh-Profit Business, AMACOM Books, Saranac Lake, NY, USA, p 73.The 3 tutors have all come from Bangladesh, where they already had ex perience 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, Organic Chemistry and various other subjects required that the students have a special understanding extracurricular the realms of a classroom environment. However it was not really a business plan until recently, when they realised that there is a increase demand 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) Steps to Small Business Start-Up Everything You Need to bash 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 surprising growth in the UK. According to a recent science report by the BBC Burns, J. (2 August 2013) sequestered tutors boost grammar risks, suggests survey, http//www.bbc.co.uk/ intelligence agency/education-23547666, accessed seventh of August, 2013, A pilot study found out that many parents in the UK nowadays rely on the service of private tutors to increase 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 entrance exams during their final years in primary schools. Of this 72%, 5% received private tutoring as pa rt of a small group, whilst 67%of the grammar school students subscribed to a matched form of private tutoring. Around 78% of these students believed that private tutoring was helpful 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) Private 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 application Be Regul ated? HUFFPOST STUDENTS United Kingdom, http//www.huffingtonpost.co.uk/alex-dyer/private-tuition-regulation_b_3643876.html, accessed 8th August 2013.2.1.3. Better return on investment incidentPrivate tutoring is pretty common 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 session, 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 tuition bounteousness 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 n ews reports above, the tutors have decided notto teach, as of now, any higher than GCSE level. 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 include Mathematics, Verbal Reasoning and Non-verbal reasoning. English has been excluded collectable 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 Gumtr ee http//www.gumtree.com/other-tuition-lesson-services/london/private+tutor, accessed 09 August, 2013.With the festering number of tutoring agencies with a physical giving medication 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.hometutorsdirectory.co.uk/EastLondonTutors.html, accessed 09 August, 2013.3. marketing 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 advertizer as well Hen ricks, M. (2001) farm 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 opinion 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 before the business can be started. These essentials include3.1.1. DBS checksThe DBS checks of th e 3 person involved will be done via Disclosure Scotland, and will cost 25 for each person involved Disclosure Scotland Apply online for Basic Disclosure Cost, http//www.disclosurescotland.co.uk/apply-online/cost, accessed 10 August 2013.3.1.2. Registration and licensingThe Company recognise would be registered and would aim for a certifiedcertificate by filling up an IN01 form and that would cost 20 http//www.companieshouse.gov.uk/infoAndGuide/faq/register bran-newComp.shtml, Accessed 19 August, 2013. The company would also apply for a limited partnership by filling up an LP5 form 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, and the cost in this regard is also 20.3.1.3. Company AddressFor the time being, the compan y 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 broken crop up in what is known as injure objectives.SMART is an acronym that is commonly 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, Training 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 topical anesthetic (UK academic qualification) graduate students before th e end of year 2.4. To create an interactive website at the end of year 2 for potential and existing customers.The objectives here contract are mostly related to the expected future performance of the business.3.3. The Unique Selling Proposition (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 communicates 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 considerable revenue Reeves, R. (1961) Reality in Advertising, Knopf, impertinently York, NY, USA. USP was considered to be advertising imperative for any brand building 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 see 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 East 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 Social Media Marketing, and will rely mainly on a Facebook page. There would also be Sales promotion, therefore inserting a bit of incentive for the beginners and encouraging bulk bargain for for the company.3.5.1. Word of MouthAs it has been mentioned before, the partners of the company has each c onducted (unstructured) data 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 making the process of conclusion 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 Through Runaway Word of Mouth, AMACOM Books, New York, NY, USA, p 21. Word of mouth advertising is done by satisfied 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, an d 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 assay 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 removed 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 buy 5 sessions for the price of 4. The sales promotion would also inspire customers to create a small group of students at their homes for studying, thus reducing the cost per head in the process..3.5.3. Social media marketingIn this day 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 enormously interactive.The act of posting an d 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, cut across engineering science / 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 Hospitality Industry Evidence from Thailand. 6-7 Sept. The participants in social media interaction becomes part of the cycle of social feedback, as demonstrated in the figure below. The round of drinks 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, Fac ebook had more than 500 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 Sillars, R. (2010) Linked Photographers Guide to Online Marketing and Social Media, Course 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. Operations and Processes4.1. Background of the owners / e mployees1. Shirin Akhter She is currently doing her MBA with a re prescribeed 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 Physics 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, eventually 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 expertness 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. The 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 capacity 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 clientele 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 sense 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 trained 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 continue to work in their present workplace, but with reduced hours, and therefore any additional 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 shared 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 dist inction can be made between those who are social entrepreneurs and those who are commercial entrepreneurs. According to Volkmann, Tokarski and Ernst (2012), technical 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 basis and Discussion with Case Studies, Springer Gabler, p 106.The company in this regard can be termed as a mixture 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 linguisticall y easier for the owners to relate to. tutelage 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 forefront Dyne, L. (Editor) (2008) Handbook of Cultural Intelligence Theory, Measurement, and Applications, M.E. Sharpe, Inc., Armonk, NY, USA. The partners, working and living 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. iodin 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 encouraged 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 vario us 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 distance 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 debauched technology 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 Revolut ion 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 usage 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 brightness side of studying.4. Docs this is more appropriate 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 paying students to get the most out of social media.5.1 Future online plans5.1.1. Website umteen 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 consi deration 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 travel.5.2 CommunicationTo ensure cost minimisation, the partners will make use of their 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 estimation is based on the task 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 order 2-4 rate in a travel card). The travelling cost might increase if the target audience lives in zone 1 (which includes Aldgate and 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 to adjust for the salary of the employee.Adjusting the total cost of travelling to 3,500 for the year (rounded from 3484.80 annually for the company based on zone 2-4 travelling only), the total cost comes as followspicFigure 2 Estimated (fixed) Cost for Year 1 tally 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, the 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 term s 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 periodical 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 optimistic, 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. (2001) Start Your Own Business The Only Start-Up Book Youll Ever Need, Entr epreneur Press, Irvine, CA, USA, p 244. Price, R. W. (2004) Roadmap to Entrepreneurial Success Powerful Strategies for Building a High-Profit Business, AMACOM Books, Saranac Lake, NY, USA, p 73.5. Pinson, L. and Jinnett, J. (2006) Steps 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 2-3.6. Henricks, M. (2001) Grow Your Business, Entrepreneur Press, Irvine, CA, USA, p 152.7. Burk, J. and Lehman, R. (2004) Financing Your Small Business, Sphinx Publishing, an Imprint of Sourcebooks, Inc., Naperville, IL, USA, p 21.8. Martin, V. (2006) Managing Projects in Human Resources, Training and Development, Kogan Page Ltd., London, GBR, p 11.9. Reeves, R. (1961) Reality in Advertising, Knopf, New York, NY, USA10. Silverman, G. 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(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 Ern st, 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 Au gust 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 201327. 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.sh tml, 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 201333. 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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 2013Appendix dining table 1 Expected Revenue, Year 1Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov celestial latitude 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 2400 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 2,800 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 determined as 1% of the expected revenue assumption includes additional cost of travelling (Zone 1).