Mbirizi Primary School Bus

Empowering Children Through Education

p. [Telephone] [Email]
[Street Address][City, ST ZIP f. [Fax] [Web address]
Code]
Table of Contents
I. Executive Summary..................................................................................................1
Highlights
Objectives
Mission Statement
Keys to Success
II. Description of Business.............................................................................................1
Company Ownership/Legal Entity
Location
Interior
Hours of Operation
Products and Services
Suppliers
Service
Manufacturing
Management
Financial Management
Start-Up/Acquisition Summary
III. Marketing..................................................................................................................1
Market Analysis
Market Segmentation
Competition
Pricing
IV. Appendix....................................................................................................................1
Start-Up Expenses
Determining Start-Up Capital
Cash Flow
Income Projection Statement
Profit and Loss Statement
Balance Sheet
Sales Forecast
Milestones
Break-Even Analysis
Miscellaneous Documents
Executive Summary
Write this last so that you can summarize the most important points from your business plan.

Provide a concise but positive description of your company, including objectives and accomplishments. For example, if your
company is established, consider describing what it set out to do, how it has accomplished goals to date, and what lies ahead.
If new, summarize what you intend to do, how and when you intend to do it, and how you think you can overcome major
obstacles (such as competition).

You can also choose to use the following four subheadings to organize and help present the information for your executive
summary.

Note: to delete any tip, such as this one, just click the tip text and then press the spacebar.

Highlights
Summarise key business features, what the school has success in, i.e. exams, sports etc.

Include a chart showing, numbers of students over time; numbers of boys and girls; numbers of teachers and non-teaching
staff; sources of income, expected annual income, expected annual expenses and resultant profit or loss.

Indicate what happens to any surplus income.

Financial Overview - possible outline of

$120,000 Sales
$100,000 Net Profit
$80,000 Expenses

$60,000
$40,000
$20,000
$0
2011 2012 2013 2014

Objectives
State the major aims and objectives of the school and set down a timeline for achieving these goals.

Consider separating the goals into categories such as:

1. Developing the school infrastructure, i.e. buildings and facilities

2. Developing the current curriculum to National Education Policy standards.

3. Development and training of staff

4. Developing the School income and Expenditure projections to include any developments stated above, while
ensuring that the school shows an excellent healthy annual surplus.

Mbirizi Primary School Business Plan - [Select Date] 1

 5. Setting out a program and timetable for progressing the school to such a state as to qualify for acceptance into the
National schools program (if this is the road you wish to travel)

Mission Statement
If you have a mission statement, include it here. Also include any essential points about your business that are not covered
elsewhere in the executive summary.

Keys to Success
Describe unique or distinguishing factors that will help your business plan succeed.

Description of Business
Give a facts based precise and concise description of what you are trying to achieve at the school

Indicate any licenses and permissions required to operate the school

State what makes your school attractive to teachers, students and parents

Company Ownership/Legal Entity

State the legal form of the school and who owns it.

State the make up of the School Governors

State their responsibilities and their authority

Include a hierarchical diagram showing the relevant positions in the school and to whom they report

Indicate the controlling documents which includes all this nformation

Location
State your specific location

State its advantages and disadvantages

State the site size and any legal measures you have considered or made to secure the site and or expand it.

State any limitations of the site or access to it

Mbirizi Primary School Business Plan - [Select Date] 2

Interior
Describe the facilities you have; the facilities you need and how you propose to acquire them

Hours of Operation
Include term times and dates.

Products and Services

 Describe the type of education you deliver at the school

 Describe the exams students are entered for

 Describe the exam results

 Describe the sports activities undertaken at the school

 Describe any extracurricular activities undertake at the school.

Suppliers
Who supplies what to the school. How and when do they receive payment?

Service

Use this section to address the levels and types of education that you provide to children, during term time and
within class hours.

Highlight any out of hours’ education which you provide to children for a fee.

Indicate any paid for courses you provide to parents and other adults after hours, for a fee.

If you are competing with other schools in the area, set out how you make your service(s) stand out against the
competition?

Management

How will your background or experience help you to make this business a success? How active will you be and what areas of
management will you delegate to others?

Describe any other people who will be/are managing the school business, including the following:

 Teachers, Administration staff - What are their qualifications and background? (Resumes can be included in an

Mbirizi Primary School Business Plan - [Select Date] 3

 Appendix.)

 What are their strengths or areas of expertise that support the success of the school?

 What are their responsibilities and are those clearly defined (particularly important if they have more than one job at the
school.

 What skills does your management team lack that must be supplied by outside sources or by additional training or
hiring?

Your business has employees, namely teachers and non teaching staff.

Describe the chain of command. What training and support (such as a handbook of school operating policies) will you provide
to employees? Will you provide any incentives to employees that will enhance the growth of the school?

What type of assistance or support can you expect, from the local Education Department?

TRAINING

Training is essential in order to ensure that staff are all upto date with current thinking. Methods and technology. Set up a
system sheet on which you record the skills and qualifications of each person and the job they do.

Determine what they would like to do and how they would like to do it.

Determine what additional training they need (identify their skills gap).

Compare what you would like them to do and what they do and identify the extra skills they need.

Specify they training they need and how you will meet those needs.

Clearly identify anything which stops you achieving these training goals.

(Please remember that increasing staff skills will lead to increased expectations of better pay and conditions. If you cannot
meet those expectations, it could be that the staff member might move to another school.)

Financial Management
As you write this section, consider that the way the school finances are managed how the management style can affect success
or failure.

Based on the particular education products or services you intend to offer, explain how you expect to make your school
profitable and within what period of time.

Will your business provide you with a good cash flow or will you have to be concerned with non payment of fees and the
inability of parents to pay fees? with sizeable Accounts Receivable and possible bad debts or collections?

Do you receive any Bursary Funds to help pay for students fees?

Do you have a “Payment in Kind” policy, i.e. parents offering to undertake work in the school in exchange for education for
their children?

The full details of your operating costs should be included in the Appendix. However, you can reference appropriate tables,
charts, or page numbers as you give a brief, summary accounting of your operating budget.

 You should include any one-time only purchases, such as major equipment or supplies, down-payments, or deposits, as
well as legal and professional fees, licenses/permits, insurance, renovation/design/decoration of your location, personnel
costs paid through school funds; advertising or promotion

 Describe your operating budget and how you prioritize expenses. It should include the money you need to run the school
for a period of one school year, or more.

 Indicate how you intend to control the finances of your company. Include the following expenses: rent, utilities,
insurance, payroll (including taxes), loan payments, office supplies, travel and entertainment, legal and accounting,
advertising and promotion, repairs and maintenance, depreciation, and any other categories specific to your business.

You can also include information (or cross-reference other sections of this business plan if covered elsewhere) about the type

Mbirizi Primary School Business Plan - [Select Date] 4

 of accounting and information handling system you are using, or intend to use.

Marketing
How well you market your business can play an important role in its success or failure. It is vital to know as much
about your business and its unique Selling Points (USP) as possible. —What are you “selling” - To whom are you
selling it- is it what they want (and don’t want), and expectations they may have.

Remember, for example, that when you submit an application for funding, you are marketing your school to various
funders, whose skeptical approach is to ask themselves, “What is in it for Me”. So you have to know what each
funder wants and meet that need.

Know who you are marketing to, and know what they want.

Market Analysis
What is your target market? Who will use the services of the school?) What are the demographics? What is the size
of your potential customer base?

Where are they? How are you going to let them know who and where you are and what you have to offer?

If you believe that you have something new, innovative or that isn’t generally available: How do you know that there
is a market for it—that people are willing to pay for what you have to offer?

Consider the market you are trying to reach: Is it growing, shrinking or static?

What percentage of the market do you think you will be able to reach? How will you be able to grow your market
share?

Note: You might include a chart, such as the one that follows, to demonstrate key points about your market potential
at-a-glance.

Local Market Growth

% growth over prior period

40% Potential Customers

35%
New Homes
30%
New Businesses
25%
20%
15%
10%
5%
0%
2008 2012 2016

Mbirizi Primary School Business Plan - [Select Date] 5

Market Segmentation
What percentage of the population is of kindergarten age

What percentage of the population is of junior school age

How many children go on to secondary school

How many children of secondary school age who do not enter

Which other groups or individuals could you tailor courses for? (Think about education for parents an what you could offer
them. Your “pupils” are not just children. Look at the wider population and see what education or specific information they
need.

Could you train women in sewing or Knitting so that they could make items for sale or uniforms for the children?

Is there a need to inform people about their rights and entitlements?

Is there a problem with HIV/Aids? If so could you design a course (full time for one week in Holiday time) and either get one
of your teachers trained up to present it or hire a presenter in to do it?

If the likely answer is “Yes” to any of these, could you find external sources of funding to run them?

Remember, the school is an education and information centre and it is not restricted to teaching children.

Market Segments

Competition
Who else is doing what you are trying to do?

Briefly describe several of your nearest and greatest competitors.

What percentage of the market does each reach?

What are their strengths and weaknesses?

What can you learn from the way they do business, from their pricing, advertising, and general marketing approaches?

How do you expect to compete?

How do you hope to do better?

What indirect competition will you face, such as from web based teaching?

How will you keep abreast of technology and changing trends that may impact your business in the future?

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Pricing

How have you decided what to charge, for

Day Pupils

Boarders

Use of the school premises by persons or businesses for their functions?

What are your competitors’ pricing policies and how does yours compare? Are your prices in line with education averages?

How will you monitor prices and overhead to ensure that your business will operate at a profit?

How do you plan to stay abreast of changes in the marketplace, to ensure that your profit margins are not adversely affected
by new innovations or competition?

Advertising and Promotion

How do you intend to advertise the school?

Describe the advertising and promotion options open to you and which offer you the best chances of successfully achieving
your ambitions for the school

Don’t forget directory services, social networking websites, media (newspaper, magazine, television, radio), direct mail,
telephone solicitation, seminars and other events, joint advertising with other schools or businesses, sales representatives,
word-of-mouth, other?

How will you decide what to spend on your advertising budget?

How will you track the results of your advertising and promotion efforts?

Will you advertise on a regular basis or will you be conducting seasonal campaigns?

Have you checked how other schools promote themselves? Can you do it better, slicker, cheaper? one research what type of
Marketing and Advertising will best appeal to your customers? Have you done a cost analysis of different forms of Marketing
and Advertising?

Lateral thinking

When drawing up the plans, remember that a school is a business and that business does not need to run on rails, i.e. never deviating from the
original idea or plan.

Even though you set up the school to educate the children in Mbirizi Village, you also build a school with many facilities, some of which can be
put to other uses. You are consolidating people around the school. Those people have other needs, some of which the school may be able to
supply at a cost and to the benefit of the school finances.

What else could be done in the school kitchen? It is the place where food is prepared. If it was set up differently could it prepare some food for
sale to people in the village? Let us assume that people like bread, but none is available in the village. Could it be made in the kitchen and sold
to the villagers?

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I expect that people must mill flour and corn etc. Could a small mill be set up by the school to do the milling for the villagers who in turn would
pay for that service, either by giving an agreed amount of the milled product to the school to be used to fed the children, or by paying cash for the
service. Any surplus milled product could also be sold to raise money.

There are many services which will assist the villagers and earn cash for the school. Think laterally and you may well find other ideas.

Strategy and Implementation

Now that you have described the important elements of your
school business plan, you may want to state how you will
make all this happen. List the steps you must take to make
progress along the pathway for the school’s development,
then prioritise them. Show how long each step will take and
what it will cost.

BE REALISTIC – BE HONEST WITH YOUR SELF – DON’T

HIDE FACTS AWAY BECAUSE THEY ARE
UNFAVOURABLE TO YOU – DON’T TRY AND FOOL
FUNDERS – THEY WILL KNOW AND YOU WILL ONLY
END UP FOOLING YOURSELF

Describe your objectives and how you intend to reach them

and in what time parameters.

Review your completed business plan and ask others to do

the same. Listen to comments and make necessary changes.

Planning is one of the most overlooked but most vital parts

of your business plan to ensure that you are in control (as
much as possible) of events and the direction in which your
business moves. Describe how you will plan and how often
you will do it or review it.

Mbirizi Primary School Business Plan - [Select Date] 8

Appendix
Cash Flow Analysis
Money Coming Month Month Month Month Month Month Month Month Month Month Month Month
in 1 2 3 4 5 6 7 8 9 10 11 12
Fees – full fees

Deposits – part
paid fees
Sale of school
materials to
pupils
Exam Fees

Income from
concerts, galas,
and sales of
other goods
Cash Donations
from
Wellwishers
Official
funding (from
Dept of
Education)
External
funding
received for
extra-curricular
courses
Project funding
received
Photocopying
and printing
income
Insurance
claims
Income from
general appeals
Income from
Raffles and
draws
Sale of surplus
goods or
equipment
COMMISSIO
NS AND
AGENCY
FEES

Cash Out Month Month Month Month Month Month Month Month Month Month Month Month
(expenses): 1 2 3 4 5 6 7 8 9 10 11 12
Rent

Utilities

Mbirizi Primary School Business Plan - [Select Date] 9

 Payroll
(incl. taxes)
Benefits

Loan
Payments
Travel

Insurance

Advertising

Professiona
l fees
Office
supplies
Postage

Telephone

Internet

Bank fees

Food

Repairs

Project
Costs
Other
(Please
List)

TOTAL CASH
OUTGOING

Mbirizi Primary School Business Plan - [Select Date] 10

Determining Actual Cashflow
The Total inserted here are the totals worked out above.

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Mont Mont
h 11 h 12
Opening Bank
Balance (1)
Add:

income received (2)

Less:

Total expenditure (3)

Closing Bank
Balance (1+2-3)

CHANGE (CASH FLOW) (1-

4)

Mbirizi Primary School Business Plan - [Select Date] 11

Income Projection Statement
The Income Projection Statement is another management tool to preview the amount of income generated each month based on reasonable predictions of the monthly level of sales and
costs/expenses. As the monthly projections are developed and entered, these figures serve as goals to control operating expenses. As actual results occur, a comparison with the predicted
amounts should produce warning bells if costs are getting out of line so that steps can be taken to correct problems.

The Industrial Percentage (Ind. %) is calculated by multiplying costs/expenses by 100% and dividing the result by total net sales. It indicates the total sales that are standard for a
particular industry. You may be able to get this information from trade associations, accountants, banks, or reference libraries. Industry figures are a useful benchmark against which to
compare the costs/expenses of your own business. Compare your annual percentage with the figure indicated in the industry percentage column.

The following is an explanation for some of the terms used in the table that follows:

Total Net Sales (Revenue): This figure is your total estimated sales per month. Be as realistic as possible, taking into consideration seasonal trends, returns, allowances, and markdowns.

Cost of Sales: To be realistic, this figure must include all the costs involved in making a sale. For example, where inventory is concerned, include the cost of transportation and shipping.
Any direct labor cost should also be included.

Gross Profit: Subtract the cost of sales from the total net sales.

Gross Profit Margin: This is calculated by dividing gross profits by total net sales.

Controllable Expenses: Salaries (base plus overtime), payroll expenses (including paid vacations, sick leave, health insurance, unemployment insurance and social security taxes), cost of
outside services (including subcontracts, overflow work and special or one-time services), supplies (including all items and services purchased for use in the business), utilities (water, heat,
light, trash collection, etc.), repair and maintenance (including both regular and periodic expenses, such as painting), advertising, travel and auto (including business use of personal car,
parking, and business trips), accounting and legal (the cost of outside professional services).

Fixed Expenses: Rent (only for real estate used in business), depreciation (the amortization of capital assets), insurance (fire, liability on property or products, workers’ compensation,
theft, etc.), loan repayments (include the interest and principal payments on outstanding loans to the business), miscellaneous (unspecified, small expenditures not included under other
accounts or headings).

Net Profit/Loss (Before Taxes): Subtract total expenses from gross profit.

Taxes: Inventory, sales, excise, real estate, federal, state, etc.

Net Profit/Loss (After Taxes): Subtract taxes from net profit before taxes.

Annual Total: Add all monthly figures across the table for each sales and expense item.

Annual Percentage: Multiply the annual total by 100% and divide the result by the total net sales figure. Compare to industry percentage in first column.

Annual
Ind. % Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total Annual %

Est. Net Sales

Mbirizi Primary School Business Plan - [Select Date] 12

 Annual
Ind. % Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total Annual %

Cost Of Sales

Gross Profit

Controllable Expenses:

Salaries/Wages

Payroll Expenses

Legal/Accounting

Advertising

Travel/Auto

Dues/Subs.

Utilities

Misc.

Total Controllable Exp.

Fixed Expenses:

Rent

Depreciation

Insurance

Permits/Licenses

Loan Payments

Misc.

Total Fixed Expenses

Total Expenses

Net Profit/Loss Before Taxes

Taxes

NET PROFIT/LOSS
AFTER TAXES

Mbirizi Primary School Business Plan - [Select Date] 13

Profit and Loss Statement
This table essentially contains the same basic information as the income projection statement. Established businesses use this
form of statement to give comparisons from one period to another. Many lenders may require profit and loss statements for the
past three years of operations.

Instead of comparing actual income and expenses to an industrial average, this form of the profit and loss statement compares
each income and expense item to the amount that was budgeted for it. Most computerized bookkeeping systems can generate a
profit and loss statement for the period(s) required, with or without budget comparison.

Profit and Loss, Budget vs. Actual: ( [Starting Month, Year]— [Ending Month, Year])
[Starting Month, Year]—
[Ending Month, Year]
Budget Amount over Budget
Income:

Sales

Other

Total Income

Expenses:

Salaries/Wages

Payroll Expenses

Legal/Accounting

Advertising

Travel/Auto

Dues/Subs.

Utilities

Rent

Depreciation

Permits/Licenses

Loan Repayments

Misc.

Total Expenses

NET PROFIT/LOSS

Mbirizi Primary School Business Plan - [Select Date] 14

Balance Sheet
Following are guidelines for what to include in the balance sheet: (For use in established businesses)

Assets: Anything of value that is owned or is legally due to a business. Total assets include all net values; the amounts that
result from subtracting depreciation and amortization from the original cost when the asset was first acquired.

Current Assets:

Cash—Money in the bank or resources that can be converted into cash within 12 months of the date of the balance sheet.

Petty Cash—A fund of cash for small, miscellaneous expenditures.

Accounts Receivable—Amounts due from clients for merchandise or services.

Inventory—Raw materials on hand, work-in-progress, and all finished goods (either manufactured or purchased for resale).

Short-term Investments—Interest or dividend-yielding holdings expected to be converted to cash within a year; stocks, bonds,
certificates of deposit and time-deposit savings accounts. These should be shown at either their cost or current market value,
whichever is less. Short-term investments may also be called “temporary investments” or “marketable securities.”

Prepaid Expense—Goods, benefits or services that a business pays or rents in advance, such as office supplies, insurance or
workspace.

Long-term Investments—Holdings that a business intends to retain for at least a year. Also known as long-term assets, these
are usually interest or dividend paying stocks, bonds or savings accounts.

Fixed Assets—This term includes all resources that a business owns or acquires for use in its operations that are not intended
for resale. They may be leased rather than owned and, depending upon the leasing arrangements, may have to be included
both as an asset for the value and as a liability. Fixed assets include land (the original purchase price should be listed,
without allowance for market value), buildings, improvements, equipment, furniture, vehicles.

Liabilities:

Current Liabilities: Include all debts, monetary obligations, and claims payable within 12 months.

Accounts Payable—Amounts due to suppliers for goods and services purchased for the business.

Notes Payable—The balance of the principal due on short-term debt, funds borrowed for the business. Also includes the
current amount due on notes whose terms exceed 12 months.

Interest Payable—Accrued amounts due on both short and long-term borrowed capital and credit extended to the business.

Taxes Payable—Amounts incurred during the accounting period covered by the balance sheet.

Payroll Accrual—Salaries and wages owed during the period covered by the balance sheet.

Long-term Liabilities—Notes, contract payments, or mortgage payments due over a period exceeding 12 months. These
should be listed by outstanding balance less the current position due.

Net Worth—Also called owner’s equity. This is the amount of the claim of the owner(s) on the assets of the business. In a
proprietorship or partnership, this equity is each owner’s original investment plus any earnings after withdrawals.

Most computerized bookkeeping systems can generate a balance sheet for the period(s) required.

Note: Total assets will always equal total liabilities plus total net worth. That is, the bottom-line figures for total assets and
total liabilities will always be the same.

Assets Liabilities
Current Assets: Current Liabilities:

Cash: Accounts Payable

Petty Cash Notes Payable

Accounts Receivable Interest Payable

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 Assets Liabilities
Inventory Taxes Payable:

Short-Term Investment Federal Income Tax

Prepaid Expense State Income Tax

Long-Term Investment Self-Employment Tax

Fixed Assets: Sales Tax (SBE)

Land Property Tax

Buildings Payroll Accrual

Improvements Long-Term Liabilities

Equipment Notes Payable

Furniture NET WORTH/OWNER’S

EQUITY/RETAINED
Automobiles/Vehicles EARNINGS

Other Assets:

Item 1

Item 2

Item 3

Total Assets: Total Liabilities:

Income Forecast
This information can be shown in chart or table form, either by months, quarters or years, to illustrate the anticipated growth
of sales and the accompanying cost of sales.

Milestones
This is a list of objectives that your business may be striving to reach, by start and completion dates, and by budget. It can also
be presented in a table or chart.

Break-Even Analysis
Use this section to evaluate your business profitability. You can measure how close you are to achieving that break-even point
when your expenses are covered by the amount of your sales and are on the brink of profitability.

A break-even analysis can tell you what sales volume you are going to need in order to generate a profit. It can also be used
as a guide in setting prices.

There are three basic ways to increase the profits of your business: generate more sales, raise prices, and/or lower costs. All
can impact your business: if you raise prices, you may no longer be competitive; if you generate more sales, you may need
added personnel to service those sales which would increase your costs. Lowering the fixed costs your business must pay each
month will have a greater impact on the profit margin than changing variable costs.

Fixed costs: Rent, insurance, salaries, etc.

Variable costs: The cost at which you buy products, supplies, etc.

Contribution Margin: This is the selling price minus the variable costs. It measures the dollars available to pay the fixed

Mbirizi Primary School Business Plan - [Select Date] 16

 costs and make a profit.

Contribution Margin Ratio: This is the amount of total sales minus the variable costs, divided by the total sales. It measures
the percentage of each sales dollar to pay fixed costs and make a profit.

Break-even Point: This is the amount when the total sales equals the total expenses. It represents the minimum sales dollar
you need to reach before you make a profit.

Break-even Point in Units: For applicable businesses, this is the total of fixes costs divided by the unit selling price minus the
variable costs per unit. It tells you how many units you need to sell before you make a profit.

Break-even Point in Dollars: This is the total amount of fixed costs divided by the contribution margin ratio. It is a method of
calculating the minimum sales dollar to reach before you make a profit.

Note: If the sales dollars are below the break-even point, your business is losing money.

Miscellaneous Documents
 Insert here all the documents you are relevant to your business plan. These may include:

 Personal details of all Governors

 Personal details and qualifications certificates of teachers

 Contracts or letters of employment, including details of any benefits in kind included as part of the remuneration
package.

 Outline of proposed training for teachers indicating the qualifications this training will lead to.

 Land Deeds for the purchase or lease of lands associate with your project

 Copies of licenses allowing you to operate as a school

 A list of directives from the Department of Education regarding the operation of the school

 Any agreement or schedule of achievements which are necessary for the school to become part of the national
Government Scheme.

 A Pathway program that signposts the way for the school to be included in the national scheme

 Copies of any co-operation or partnership arrangements with any external organization or business

 Any other document which supports facts stated in the business plan.

 Building Plans and BOQs

 Photos

Mbirizi Primary School Business Plan - [Select Date] 17

Mbirizi Primary School Business Plan - [Select Date] 18