Business plan of jermyn street school


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The business plan for a Jermyn Street school features excellence in pre and primary education by offering project-based-learning. Project-based-learning is the most modern system in the education of children. The target of the school is the niche we have called Jermyn Street. It constitutes of parents from influential families with high spending power. This market faces very little competition with only one school offering project-based-learning education in Pakistan.

With a differential advantage of project-based-learning education, a fee of Rs. 20,500/- per child per month will be charged. The school will break even at a low volume of 47 students in the first year of its operations

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Business plan of jermyn street school

  1. 1. Business plan for a project-based-learning school Authors: Babar Malik and Farooque MalikProject Based Learning School – BusinessPlanThis is a business plan for a project based learning school. It will serve the Jermyn street segment inLahore and Islamabad. It will offer pre-school and primary school education services.Schools such as Aitcheson (Junior school) etc. are constricted by teaching through conventionalpractices. They haven’t progressed to acquire latest teaching methodologies. Many parents of thechildren studying in these schools are aware of this fact, and a sizeable number of them have got theirchildren admitted to modernized schools like the Lahore American School, The International School ofChouffiat and The New School etc. However, many parents continue to avail services of Aitcheson(Junior school) etc. due to patronage and prestige associated with these institutions.The clientele of these schools is a niche residing in major metropolitan cities. There is a steady growth indemand for these schools. This has resulted in the opening of several new modernized schools in thelast few years, but none of these are a project-based-learning school.This potential demand of project-based-learning schools has been tapped into by Beacon House and ithas pioneered The New School. This project has done business since last 3 years. By now, it hasapproximately 70 students enrolled. The parents view is satisfactory. This school is growing. However,the factor hampering its robust growth is the scarcity of professionally trained project-based-learningschool teachers. This scarcity is further compounded by the inflexible mindset of available teachers toadapt to the project-based-learning methodology.Schools serving in this segment: Lahore American School The International School of Chouffiat Freobels American International School System Aitcheson (Junior school) The New SchoolNote: None except The New School are project-based-learning schoolsMARKET SEGMENT - The Jermyn Street:This segment consists of moneyed families where both parents are well educated and at least one ofthem is an accomplished professional, or is placed in an influential position. They are usually theinheritors of their family wealth and businesses as well. This segment is defined as “The Upper Class” inthe American terminology of marketing. They are cognizant of the value of excellent education, and are
  2. 2. Business plan for a project-based-learning school Authors: Babar Malik and Farooque Malikaware of the environment that is required for pre-school and primary education of their children. Thissegment is very demanding of the pedagogical skills and efforts of the faculty, along with theenvironment of the institution.Recreational facilities, e.g. swimming pools, music and theaters, sporting facilities are also veryimportant for this segment. Education of their children is a statement of their social status. They arebrand loyal if the educational institution meets their expectations. This segment resides in poshneighborhoods, (for example Model Town, Scotch Corner Upper Mall, GOR 1, Cantonment, MuslimTown, Gulberg, Defense, in Lahore). They can afford to spend Rs. 10,000/- to Rs. 30,000/- or more permonth per child for its pre-school and primary education. Nevertheless, they are vaguely cognizant ofproject-based-learning schools. In Lahore, we have been able to identify only 1 such school, i.e. The NewSchool which is based in Gulberg.The needs of the segment are as below;The segment defines its needs as “MOST MODERN EDUCATION SYSTEM”. We identify it as a project-based-learning school, where a child is proactivated by a teacher to learn by using its own inbornfaculties. Excellence in teaching through advanced pedagogical methods, i.e. learning through activity Conducive environment with a range of extra-curricular activities that aid learning Learning of social skills made easy for their children, for better interaction within their own social class Enabling their children to use most modern English language syntax Building a knowledge base of their children on those lines that will enable them to progress towards modern professional skills and integrate them within the institutions and societies of the knowledge based economies of the developed world.TARGET MARKET:Our target market is the Jermyn street segment in Lahore and Islamabad. We can introduce our firstbranch of the school in Lahore and would progress towards a second branch in Islamabad. It could alsobe the other way around. This decision for placement of the first branch is pending based on theoutcome of competitive analysis and availability of a suitable place in these cities.POSITIONING:The ideal position for our school would be to appear as an institution with excellence at impartingeducation to children, while nurturing their cognitive, creative and physical development needs. Thepossible position statement would be “Proactive pedagogy applied at its best.”
  3. 3. Business plan for a project-based-learning school Authors: Babar Malik and Farooque MalikCRITICAL SUCCESS FACTORSCSF 1: Adopt and implement the latest methodologies and systems that are being successfully used inthe project-based-learning schools in the developed world. This would reflect on the child itself.CSF 2: Build firm and confident relationships with the parents that would result in brand loyalty.CSF 3: Recruit, train and retain teaching staff, enhance and hone their skills. This should reflect on theschool itself.STRATEGIC OBJECTIVES:Objective 1: To fit the idea and services of project-based-learning in the mind frame of the Jermyn streetclassObjective 2: Acquire and maintain a progressively growing enrollment of accomplished students andtheir satisfied parentsSTAFFING PLAN:  Following is the staffing plan for our school Staffing Table Designation Number Monthly salary Annual Salary Salary/person Principal 1 200,000 2,400,000 200,000 Teacher 14 490,000 5,880,000 35,000 Visiting psychologist HRM 1 50,000 600,000 50,000 Coordinator 1 50,000 600,000 50,000 Receptionist 1 10,000 120,000 10,000 Security Guard 2 12,000 144,000 6,000 Ayaa 5 60,000 720,000 12,000 Janitor 2 24,000 288,000 12,000 Admn & Accounts 3 45,000 540,000 15,000 Office peon 1 5,000 60,000 5,000 Total 946,000 11,352,000  The mindset of the teacher must demonstrate flexibility to learn and adopt a new teaching methodology of project based learning.  The principal or the coordinator should be an expert and a trainer for teachers on project based learning.
  4. 4. Business plan for a project-based-learning school Authors: Babar Malik and Farooque Malik  HRM expert Psychologist to be a counselor to the teachers in adapting to new teaching mindset and coping with stress, and also to counsel the students if they have any learning difficulties  To acquire and implement established projects-based-learning systems  Link appraisals of teachers on their ability to achieve project based learning goals INFRASTUCTURE PLAN  Comfortable and stress free environment for children.  The campus will be constructed on a 2 kanal area with 7 spacious classrooms, library, labs, activity halls, playground, swimming pool, dining hall, administration block etc.  Latest aids and teaching materials including recommended curriculum for project-based- learning schools will be installed. This will also include overhead projectors and PC in every classroom.  Furniture and fixtures will include tables and chairs, activity mats, cabinets for books and bags etc. for every classroom  Space for indoor sports and activities will include a large size activity hall. This will be used for activities like dance, music, karate classes etc.  Playground, game courts and indoor swimming pool will be available for the children.  Following is the list of Assets for the School: Assets Amount Library & Curriculum 700,000 Teaching aids, projectors etc 1,000,000 ACs 500,000 Furniture and Fixtures 400,000 Water dispensers 100,000 Computers 600,000 Building structure renovation 500,000 Total 3,800,000MARKETING PLAN:1. Service  Our school shall reflect of an expert of project-based-learning schools  Teaching shall be intelligible and based on the latest psychological methodologies that are being successfully applied in the best schools of the highly developed countries.  Thematic extra-curricular activities will be practiced for tapping the creativity and physical development of children.  Involve parents in intra-parent networking/meetings to build relationships that strengthen their confidence in our school.  Consultant psychologist specializing in the psychology of teaching to be on the panel
  5. 5. Business plan for a project-based-learning school Authors: Babar Malik and Farooque Malik2. Price  Premium fees will be charged based on value-added education being offered to the students.3. Promotion  Very appealing and registering displays  The launch will be supported by a focused marketing communication campaign to tap into the market niche.  The selection of the medium and the message of the communication campaign will be designed keeping in view the behavior and preferences of the target market.  Events and promotions will also include formation and functioning of intra-parent networking groups. These groups will convene regularly, giving parents opportunities to network and participate in children learning experience at the school.4. Placement  Approachable from posh residential localities in Lahore and Islamabad.  Identifiable easily5. People  Professional, courteous and well groomed teaching staff that is able to impart high quality teaching.  Teaching staff to have an appropriate interpersonal skill to communicate with management and the parents.  Trained and responsible administrative staff to manage security and facilities properly6. Process:  Identify and develop procedures for all staff, as per their assigned scope of work.  Training of staff on the SOPs  Ethical codes  Hygiene codes  Training to staff on a regular basis of carrying out project-based-learning  Rewarding based on clearly stated performance measures7. Physical evidence:  It should appear as an attractive campus for children for up to class 5
  6. 6. Business plan for a project-based-learning school Authors: Babar Malik and Farooque Malik  Consistency of place and service  On campus facilities including those in the classrooms must be state of the art. This should create a perception of quality in the minds of parentsBREAKEVEN ANALYSIS  Our school will break even at sales of 562 fee cycles or 47 students. This number is based on assumptions that unit price is Rs. 20,500/- and the unit variable cost is Rs. 6,172/- and fixed cost is Rs. 8,052,000/-.  Based on our sales forecast, the breakeven will be achieved in the first year of operationsFINANCIAL ASSUMPTIONS:1. Revenues assumptions  First year revenue if based on 40% capacity utilization. The total capacity of the school is 160 students with a maximum of 20 students in each class.  Capacity utilisation will gradually increase to 80% in year 2015 and will stay at this level in the following years.  The unit price will increase at 10% per annum.  Preschool students will pay Rs. 18,000/- per month and primary school students will pay Rs. 22,000/- per month.2. Cost of services sold assumptions  Cost of services and utilities will increase at 10% per annum.3. General administration expenses  Rent will be paid at Rs. 150,000 per month. The rent will increase at 10% per annum  Depreciation is calculated at 10% per annum on the book value of assets, using the diminishing balance method.