LessonUp Business Plan by Kenneth Jay Ramping

LESSONUP BUSINESS PLAN

ACE TUTORING

EXECUTIVE SUMMARY BRIEF DESCRIPTION OF THE SERVICE AND ITS MARKET The product that will be offered is the Lesson Up. Basically, this is a tutorial subscription-based service for those students that seek help. Each tutorial session lasts for three hours and would cover the lectures under the subject subscription of the student. The courses available will depend on the courses currently offered to the engineering students of Mindanao State University – General Santos City and courses with related or similar subjects. However, this does not mean that those from other universities and the like are unable to subscribe. Ace Tutoring is the first in the tutoring industry. Although there are review centers, they cater only those that have graduated from their courses and are about to take the board exam. Of course, there are also tutoring courses online, however, in General Santos City catering to MSU-Gensan, there are none.

OUR MISSION Ace Tutoring will create an academic environment outside the university to help students better pursue knowledge and learning via tutoring.

OUR VISION Ace Tutoring envisions seeing students struggle less in academics to create a better foundation for their future and the country.

lessonupbyace@gmail.com

PURPOSE OF THE PLAN

Ace Tutoring is a Filipino-owned c the Philippines. It is owned by the C Leonin and managed by five individu that knew the struggles firsthand of be student at Mindanao State Universit City. Ace Tutoring is inclined to h targeted learning materials and assis qualified and experienced tutors.

company based in CEO John Christian uals along with him eing an engineering ty - General Santos help students with stance given by our

Leading the way in student success

HOW MUCH FINANCE IS REQUIRED AND WHAT IS THE PURPOSE? For starters, Ace Tutoring will require a fund enough for a year for the materials needed as well as to sustain its employees. An amount of P356,000 would be sufficient to start Ace Tutoring’s service-based business to ensure that the Lesson Up services will meet the company’s goals, which is to satisfy the learning needs of the students. In the first year, P140,000 in capital would be needed for the assessment and planning phase, and in the second year, P216,000 is needed to finance all the expenses of the business.

HIGHLIGHTS OF FINANCIAL PROJECTIONS From the initial capital of one hundred forty thousand. Then, at the end of the first year, the Ace Tutoring will have a -54.3% rate of return, which symbolized that the business is not in good shape. However, at the end of the second year, the rate of return will drastically rise to 81.57%. Lesson Up might have a rough time at the start, however, it will recover and rise after some time and the Ace Tutoring will earn a

143-0058 | ACE TUTORING

TABLE OF CONTENTS

01 06

PURPOSE OF THE PLAN Purpose of the Plan, 2 Our Mission, 2 Our Vision, 2 How Much Finance is Required and What is the Purpose, 2 Brief Description of the Service and Its Market, 2 Highlights of Financial Projections, 2

TABLE OF CONTENTS THE COMPANY THE INDUSTRY THE SERVICE Description of the Service and its Application, 4 Distinctive Competencies and Uniqueness of the Service, 6 Technologies and Skills Required in the Business, 6 License/Patent Rights, 7 Future Potentials, 7

MARKET ANALYSIS Customers, 8 Market Size, 8 Competitors, 8 Market Segments, 8 Estimated Market Share, 9

MARKETING PLAN Market Positioning, 10 Pricing Policy, 10 Service Delivery/Availability Policy, 10 Advertising and Promotion Policy, 11 Service Support Policy, 11 Interest Shown by Prospective Customers, 11

DESIGN & DEVELOPMENT Stage of Development, 12 Difficulties and Risks, 12

MANUFACTURING AND OPERATIONS Premise Location, 13 Production Capacity, 13 Source and Supply of Key Materials and Workforce, 13 Nature of Productive Process, 14

lessonupbyace@gmail.com

TABLE OF CONTENTS

16 25

MANAGEMENT Owner Director and Key Managemen, 16 Key Management Compensation, 18 Job Description, 20 Consultants and Advisers, 20 Planned Staff Members and Recruitment Plan, 21 Training Policy, 21 Annual General and Special Meetings, 21

FINANCES

Funds Required and Timing, 22 Anticipated Gearing, 22 Financial Highlights, Risks, and Assumptions, 22 Risks and How They Will Be Handled, 23 Detailed Financial Plan, 23 APPENDICES Profit and Loss Facilities Floor Plan, 25 Break-Even Analysis Gantt Chart, 26 Balance Sheet Financial Documents, 27 Correspondencies with Potential Tutors. 29 Management Curriculum Vitae, 30

THE COMPANY

ce Tutoring is a Filipino-based company that is headed by six young Filipino engineers. The company focuses on sharing knowledge and enhancing the minds of aspiring professionals. At the present, Ace Tutoring is

the leading as well as the only one in the tutoring industry. The company aims to equip students with knowledge despite not being an institution or a university. Furthermore, the company also aims to lessen the burden

on students when it comes to studying via tutoring. And lastly, it is investing in the country’s future, not only for money, by ensuring that the university student would be able to learn what they ought to learn.

THE INDUSTRY The tutoring industry is divided into two parts, online tutoring, and offline tutoring. Online tutoring mainly happens remotely. Or to be precise, it happens in online meetings between either the platform Zoom, Skype, or Google Meet. Usually, online tutoring is offered by companies that focus on the industry. However, there are also tutoring sessions that do not involve any companies and such. Rather, it is just the agreement

between the tutee and the tutor. Meanwhile, for offline tutoring, there will no need of any online platforms like Zoom, Google Meet, and more. It happens face to face where the tutee and the tutors would see each other face to face. One of which that could be considered as part of offline tutoring industry are the Review Centers. However, they are wide scaled and only chose to teach those that have already graduated. Further than the Review Centers,

there are no more known companies that are involved in the industry. The only ones that are involved in the industry are individuals who offer services and individuals who seeks it. So far, at General Santos City, the Ace Tutoring is confident to say that there are no companies involved in the tutoring industry and could therefore be said to be the pioneer with the said industry in General Santos City.

143-0058 | ACE TUTORING

THE PRODUCT

CHAPTER I

THE SERVICE

DESCRIPTION OF THE SERVICE AND ITS APPLICATION

tudents have different needs when it comes to course work. Some students need a lot of help with the material, while others can handle it on their own. For some students, the use of a review center can be very helpful in getting them up to speed on the material. However, for other students, the use of a review center can be counterproductive. It is important to understand why a review center can be helpful for some people and less effective for others. Students’ ability to learn effectively is directly related to how well they understand what they’re

learning in class. If a student does not fully understand the material presented in class, they will not be able to apply what they’ve learned in their courses. Since learning is the primary purpose of taking classes, it is important that students do everything they can to understand the material they are presented with in the classroom. In order to help students better understand their coursework, many schools have tutorial and review centers available where students can get additional help with the material that is being presented in class. The goal of the

lessonupbyace@gmail.com

LessonUp tutorial center is to help struggling students understand course material more effectively so that they can perform better in their courses. This is accomplished by providing students with targeted and group tutoring sessions in which they are able to ask questions and receive help with the material that is being taught in the classroom. The tutoring sessions are typically only held once or twice a week, so they are scheduled in a way that allows students to still have time to complete their other work.

THE PRODUCT

DISTINCTIVE COMPETENCIES AND UNIQUENESS OF THE SERVICE Existing review centers focus mainly on graduate students that are about to take board and licensure examinations. Ace Tutoring will focus on undergraduate students that are having a hard time to catch up with their fellow students and in the class as well. The experience and the attention paid to individual needs of students is what makes this company sets itself apart from others.

TECHNOLOGIES AND SKILLS REQUIRED IN THE BUSINESS Educators that are expert in various fields of engineering are needed for the operation of the business. An accountant or a marketing graduate is also needed to handle and secure the matters of money and to lead the development of market strategies to convince potential clients to enroll in the company.

LICENSE/PATENT RIGHTS The tutorial services that was envisioned by the company has no existing or pending patents so far as tutorials do not generally involve the use of patented technology or techniques.

FUTURE POTENTIALS The initial offer of the company is to provide tutorial services to engineering students who are having a hard time catching up lessons in the formal classroom. Since not only engineering students are struggling to get back on track since the pandemic, then the company targets to provide the same services to other courses outside engineering.

143-0058 | ACE TUTORING

MARKET ANALYSIS

CHAPTER II

MARKET ANALYSIS

15.8%. Now that we are in the new normal, some of the students prefer face-to-face classes or tutoring because this is way more interactive and engaging. Tutoring centers cater to the needs of the students through hands-on teaching - lengthening their attention span and removing

possible distractions while studying. According to Fleet Tutors, mathematics is one of the most in demand subjects sought to be learned in tutoring centers. This strengthens the proposed business since engineering courses are rooted in mathematics as their fundamentals.

CUSTOMERS

MARKET SIZE

MARKET SEGMENTS

The target customers of LessonUp are the students of Mindanao State University - General Santos Campus, specifically in the College of Engineering. Majority of these customers reside indefinitely or temporarily in the vicinity of the campus since most of the students are from distant provinces that they usually live in dormitories or in nearby boarding houses. Other than the engineering students, the [proponents] could expand LessonUp to cater other courses as well that are rooted in mathematics including [insert other courses].

lessonupbyace@gmail.com

The Private Tutoring market size was worth around US$ 29.6 billion in 2021 and is estimated to hit approximately US$ 49.9 billion by 2028 in the global scale. Due to a variety of driving factors, the market is predicted to rise at a significant rate. In the Philippines, about 20% of the students who go to college have private tutors or tutorial sessions. These numbers are pretty low for the reason that the Philippines is a thirdworld country.

COMPETITORS Online tutors are still in-demand even if we’re now in the new normal. These online tutoring services are the main competitors of Ace Tutoring Inc. However, since the classes now in Mindanao State University are held offline (face-to-face) and adding the fact that online classes vary differently from offline, LessonUp has the edge.

The main customers of LessonUp are the students of Mindanao State University College of Engineering. Approximately 1400 students are enrolled in Academic Year 2022-2023, and subdivided into freshmen, sophomores, juniors, and seniors. Most of our clients will be 1st years (freshmen) and 2nd years (sophomores) although there will be some juniors and just a few of the senior students for they will be focusing more on their thesis. Shown in the figure on the right, the freshmen cover 50% of the market. They are in need of guidance due to the transition from senior high school to college. Sophomores will cover 40% since “filtration” of the students occurs in the 2nd year. 10% will be the juniors and seniors combined because most of their subjects would be majors and also their thesis or capstone projects.

MARKET ANALYSIS

ESTIMATED MARKET SHARE

After the survey we have conducted on the engineering students these past few weeks, approximately 15% of them are willing to enroll in LessonUp. Going by these data, it is estimated that around 200 of the students (15% of College of Engineering) will enroll upon opening and within the next 5 years, LessonUp will be catering other six (3) colleges as well and roughly estimated that around 800 students (approximately 200 students per college) will be added on top of the engineering students having a grand total of 800 students.

JUNIORS & SENIORS

10%

FRESHMEN 50%

40%

SOPHOMORES

* SAMPLE OBTAINED FROM 1,400 STUDENTS

MARKET SEGMENTS BASED ON RECENT DATA FROM COLLEGE OF ENGINEERING A.Y. 2022-2023

143-0058 | ACE TUTORING

MARKETING PLAN

CHAPTER III

MARKETING PLAN MARKET POSITIONING

he sudden rise of online tutors due to the recent pandemic have helped the students through their asynchronous classes. According to [insert source] the global online tutoring market grew from $8.36 billion in 2022 to $9.68 billion in 2023 at a compound annual growth rate (CAGR) of 15.8%. Now that we are in the new normal, some of the students prefer faceto-face classes or tutoring because this is way more interactive and engaging. Tutoring centers cater to the needs of the students through hands-on teaching lengthening their attention span and removing possible distractions while studying. According to Fleet Tutors, mathematics is one of the most in demand subjects sought to be learned in tutoring centers. This strengthens the proposed business since engineering courses are rooted in mathematics as their fundamentals.

PRICING POLICY The capacity of students to afford the service and the sustainability goals of our company, along with great consideration of the wages of our tutors is greatly considered in the formulation of our service prices. That is, students should be convinced to avail our tutoring services. The price of supplementary materials is also added to the total package price. The total package price to register for a tutoring package is P5,000. For a total of 10 sessions at 3 hours each, each tutoring session is priced competitively to accommodate the tutor’s fee, the place and its amenities, and the staff. Added to it is the cost of supplementary materials and other extra services amounting to P1,000. It includes handouts and test reviewers along with a reference book and supplies, access to our online database of books to be used, the free internet access when at our premises, volume-licensed account for subscription-based software and account that includes (1) complementary storage of 2TB that can be shared by 6 people and (2) unlimited access to Google Workspace, and limited direct access to our tutors including their recorded and tailored lessons is included in the fee as well.

SERVICE DELIVERY/AVAILABILITY POLICY The chief marketing officer will directly manage service sales, advertising functions, and the research of the current demand trends for subjects and services primarily consumed by the students.

Payments can be made in cash at no extra charge. Payments through check, credit card, or online transfer should include transaction fees affiliated with the process. Online fund transfers are encouraged through GCash.

lessonupbyace@gmail.com

Our distribution will primarily be through direct service delivery.

The marketing department will be reachable via personal, phone, and e-mail for transactions and concerns. Scheduled meetings can be conducted face-to-face at our main office located at Brgy. Fatima, General Santos City near the back gate or online. Arranged meetings outside office premises can also be scheduled ahead of time.

A one-time payment can be made upon enrollment or for each session.

MARKETING PLAN

ADVERTISING AND PROMOTION POLICIES

ur platform will leverage free advertisement enabled by social media. As this concerns the Engineering students, LessonUp tutorial center will be connecting with the student organizations, particularly the Engineering Students Organization (ESO), Organization of Electrical and Electronics and Communications Engineering Students (OEECES), Junior Institute of Electronics Engineers of the Philippines (JIECEP), Junior Philippine

Society of Mechanical Engineers (JPSME), and Association of Civil Engineering Students (ACES) to promote to their online accounts targeted promotional materials for our students and tutor recruitments aside from posting on our official online channels to help us gain traction. Promotional materials are created digitally in-house by a team directly managed by our chief information officer, and are printed through a partner

INTEREST SHOWN BY PROSPECTIVE CUSTOMERS We have interviewed potential customers of our services and some of them said they would avail from us because they have the difficulty in keeping up to the pace of face-to-face learning from their usual setup during the pandemic. Also, a portion of them stated that they need the learning materials and guidance from tutors because they were not able to fully grasp the concepts in the classroom setting. The additional services gained us more interest in our services from the students, especially the direct access to our tutors. We also got positive responses along with recommendations from department chairs and professors of the recommended subjects to teach due to the correlation between performance levels of students and the performance of college professors, as they support us in our business.

“

printing press. These are posted mainly in the serviced college and campus bulletin boards and famous buildings like the Y-Bldg and the campus library. We will advertise that we are in need of tutors as the need arises right away and contact firsthand potential tutors to let them know right away we are in need of tutors, to finalize the availability of our subjects, and that they are already open for enrollment.

SERVICE SUPPORT POLICY We intend to provide services through the following conditions: •

The tutorial services end until the tenth session is finished, along with its supplementary benefits including access to accounts, online materials, and tutors.

•

The reference materials and printouts are kept by the tutees.

•

Service-related materials, such as the recorded videos, reference materials, and others would be exclusively accessible for the tutees.

•

Our customer service is available through our online and offline channels during office working hours (8AM - 5PM, Mon-Fri).

•

Our social media channels and app is available any time to access service availability.

LessonUp would be of great help to students since we transitioned to the face-to-face setup...

Stephen Rizaldo ECE Student

fb.com/lessonupPH twitter.com/lessonupPH

you.tube/lessonup

143-0058 | ACE TUTORING

DESIGN & DEVELOPMENT

CHAPTER IV

DESIGN & DEVELOPMENT STAGES OF DEVELOPMENT

he initial goal is to have a minimum of 10 students enrolled per subject, with a total of 200 students in total per semester to start the regular sessions for it to be sustainable for the company and the tutors. Students should also secure a Certificate of Registration so that the tutoring service could verify the enrollees’ current subjects enrolled. By providing a constant listing of available and ongoing subjects and tutors, students can timely check whether a subject that they need help with is available and this may help them decide to enroll. New enrollees, review center reviews given by our tutees, and weekly or monthly academic achievers of assessments will be posted on social media to potentially give encouragement

to others and boost our trust ratings. Regular snapshots of classes conducted at the review center would also be posted to promote the overall feel, condition, and the place of the LessonUp tutorial center. Incentives will also be given to performing students in the actual academic environment. As LessonUp grows, it will eventually move to accommodate students from other courses and colleges within Mindanao State University - General Santos City. Later on, other modes of delivering content may be adapted to cater students who want to enroll in a particular subject but are not enrolled in a partner school. An app is planned to be built in the future to unify the experience of each student for every transaction.

DIFFICULTIES & RISKS Throughout the first year of operation, difficulties and risks are expected. Some are the following: COMPETITION

STAFFING

MARKETING

RETENTION

The tutoring industry is becoming increasingly competitive, and it can be difficult for a company to stand out and attract customers.

Finding and retaining qualified tutors can be a challenge, especially if the company is not able to offer competitive compensation or benefits.

Effectively reaching and attracting potential customers can be difficult, especially if the company has a limited budget for marketing.

Keeping students engaged and motivated over a long period of time can be a challenge, and a high student turnover rate can negatively impact the business.

FINANCIAL Tutoring service companies may have trouble generating a profit and breaking even, especially if they have high overhead costs or are not able to charge enough for their services.

lessonupbyace@gmail.com

LEGAL & REGULATORY COMPLIANCE

TECHNOLOGICAL ADVANCEMENTS

Tutoring service companies are subject to various laws and regulations that govern the education industry, and failure to comply with these regulations can result in fines or penalties.

With the fast-paced advancement of technology, the company may find it difficult to keep up with the demand and the need for incorporating technology in their service.

MANUFACTURING & OPERATIONS

CHAPTER V

MANUFACTURING & OPERATIONS PREMISE LOCATION The Ace Tutoring Incorporated Facility will be located near the Mindanao State University - General Santos City Campus. This site is obviously strategically located since it is near the target customers of the service. Company activities such as board and technical meetings will be held in the service center as well as the actual tutoring services. The proponents decided to lease a facility capable of accommodating the target audience and as well as all the company activities.

PRODUCTION CAPACITY The Ace Tutoring Incorporated Facility will be located near the Mindanao State University - General Santos City Campus. This site is obviously strategically located since it is near the target customers of the service. Company activities such as board and technical meetings will be held in the service center as well as the actual tutoring services. The proponents decided to lease a facility capable of accommodating the target audience and as well as all the company activities.

SOURCE AND SUPPLY OF KEY MATERIALS AND WORKFORCE SOURCES OF KEY MATERIALS TEXTBOOKS

These can be purchased from educational publishers or sourced from online retailers. OFFICE & CLASSROOM SUPPLIES

These can be purchased from office supply stores or sourced from online retailers.

SUPPLY OF WORKFORCE

PROPOSED BUILDING FOR LESSONUP TUTORIAL CENTER ** Ace Tutoring is going to rent a 3-room facility at Uhaw, Brgy. Fatima GSC to accomodate students and to make it more accessible to them, as it is near the university and the boarding houses where most of the students reside.

TUTORS, SUPPORT STAFF AND ADMINISTRATIVE STAFF

These can be recruited through job postings on online job boards, through referrals from current tutors, or through partnerships with universities or other educational institutions.

143-0058 | ACE TUTORING

MANUFACTURING & OPERATIONS

NATURE OF PROD The first step in the productive process is to assess the student’s needs and determine their current level of knowledge and understanding in the subject being tutored.

Based on the asse will develop a custo and curriculum tha student’s needs an

ASSESSMENT

PLAN

RECORD KEEPING

FEED

The tutor will then deliver the lesson or curriculum to the student, providing instruction and guidance as needed. Tutors may use a variety of techniques such as lectures, discussions, exercises, and assessments to help the student learn.

lessonupbyace@gmail.com

The student and t feedback on the le progress, and on th process, to ensure th the best ed

MANUFACTURING & OPERATIONS

UCTIVE PROCESS The tutor will then deliver the lesson or curriculum to the student, providing instruction and guidance as needed. Tutors may use a variety of techniques such as lectures, discussions, exercises, and assessments to help the student learn.

essment, the tutor omized lesson plan at is tailored to the nd learning style.

NING

DELIVERY

BACK

EVALUATION

the tutor will give esson, the student’s he overall tutoring he student is getting ducation.

4 The tutor will then deliver the lesson or curriculum to the student, providing instruction and guidance as needed. Tutors may use a variety of techniques such as lectures, discussions, exercises, and assessments to help the student learn.

143-0058 | ACE TUTORING

18 20

THE THE MANAGEMENT MANAGEMENT

KEY MANAGEMENT COMPENSATION The six management positions will each receive a compensation of P10,000 every month for 10 months in a year.

POSITION

JOB DESCRIPTION

COMPENSATION

Chief Executive Officer

Is in-charge of administration

P10,000 per month

Consultant

To assess the current state of the business, develop strategies and suggest changes, measure progress, and provide support

P10,000 per month

Assistant CEO

Provides administrative support to the CEO, and is incharge of answering inquiries

P10,000 per month

Chief Financial Officer

Responsible for the planning, implementation, managing and running of all the finance activities of a company

P10,000 per month

Chief Information Officer

Assesses agency IT workforce needs, and is responsible for the safekeeping and updating of records of students, tutors, and offerings

P10,000 per month

Chief Marketing Officer

Oversees the planning, development and execution of an organization’s marketing and advertising initiatives

P10,000 per month

Chief Operations Officer

Designs and implements policies to promote tutor center’s culture and vision and oversee core operations to keep the business on track

P10,000 per month

CONSULTANTS AND ADVISORS Consultants and advisors are inquired for valuable insights and expertise regarding the performance and efficiency of a service-based business like LessonUp. They are consulted during board meetings that help us identify and solve

LessonUp Tutorial Center lessonupbyace@gmail.com ACE TUTORING

problems, capitalize on opportunities, and make strategic decisions that will encourage growth, stay ahead of industry trends, and drive success to the business.

THE MANAGEMENT

PLANNED STAFF MEMBERS AND RECRUITMENT PLAN STAFF

FUNCTION

COMPENSATION

Tutor

Provides instruction to students and communicate necessary feedback based on their performance to help them in their academic goals

P10,000 per month

Accountant

Record, analyze, and monitor finances, implement developed financial regulations

P10,000 per month

Human Resource Staff

Manage personnel functions (recruiting, training, hiring employees), benefits, payroll, and employee relations

P10,000 per month

Software Engineer

Do backend and frontend software development, maintain application

P10,000 per month

TRAINING POLICY Training and management of newly-hired staff and tutors is handled by the Human Resource Staff. It is to be made sure that the trainees pass a series of qualifications and a screening period to assess whether they are suitable for the company. The tutors must have relevant qualifications and experience in their field of teaching. All new tutors will get basic training from the center to ensure they

are familiar with its teaching strategies and standards as well as to provide them with the tools they need to begin instructing. The center will frequently assess the effectiveness of its tutors and offer helpful criticism and encouragement to help them develop. Tutors who fall short of the center’s expectations will be given the chance to do better; nevertheless, if no progress is made, they will be not be hired.

ANNUAL GENERAL AND SPECIAL MEETINGS The executives are to convene of the business financial and operational performance, to assess its overall health and to identify which aspects may need improvement, and to vote on important decisions. It is required that the management team report to them

regularly of the key status of their business area, in which they have strengths and weaknesses, and to recommend solutions to problems. The meetings are done once a year, except emergency meetings where a special meeting may be called.

143-0058 | ACE TUTORING

FINANCES

CHAPTER VII

FINANCES FUNDS REQUIRED & TIMING The original LessonUp development strategy (Tutorial Center) involves a number of key stages, including Market Penetration, Research and Development, and the transition to Sustainable Operation. The total startup capital amounts to P800,000, which is comprised of the funds they have collected from friends, family, their own funds, and two investors in order to cover this sum. This capital is needed at the beginning of the endeavor to cover costs associated with marketing and facility setup. Profitability is achieved in the third year.

ANTICIPATED GEARING Through research and development efforts aimed at enhancing the effectiveness of the tutorial center, operations in the first year are anticipated to solidify the company’s marketing strategy. The company’s cash reserves are anticipated to increase by the second year thanks to service sales. The business is anticipated to reach break-even at this point, at which point it will explore investing in new tutoring resources and facilities as well as expanding. In order to maintain its competitive advantage, the organization will keep developing and enhancing the tutor facilities and components. By the third year, there should be a consistent stream of service sales thanks to a network of potential customers and connections to institutions and tutoring centers. The business might also use the financial reserves to investigate potential alliances with universities and expansions. Success in the home market validates our service business’ efficacy, allowing for planned development into wider markets.

FINANCIAL HIGHLIGHTS, RISKS, AND ASSUMPTIONS Service sales will start in the 1st quarter of the second year. The number of service units to be sold should not be less than 200 units per semester, thus 400 units per year, so that the total service sales will be able to pay for the total costs. The operational capacity to be achieved within the second year of operation is designed for profitability and service cost, and this is the year with the payback. The business aims to service 400 total subscriptions within the first two semesters of operation. By the third year, the company’s retained earnings will already start to grow as the service expands to another college. At the end of the fifth year, it is expected that the company will have a net worth of 13,027,428.03 million pesos. The total retained earnings after five years will amount to 16,189,604.72 million pesos.

LessonUp Tutorial Center lessonupbyace@gmail.com ACE TUTORING

PROJECTED NET WORTH

P 13,027,428 PROJECTED TOTAL RETAINED EARNINGS

P 16,189,604 **AT THE END OF YEAR 5

FINANCES

RISKS AND HOW THEY WILL BE HANDLED Major risks are expected in the service-based business, and they are to be handled accordingly.

RISK

SOLUTION

Low service unit sales due to customers not being able to afford the product

Offer staggered payment at the same price, but the money is to be lent or invested to induce interest

Existence of competitors

Recalibrate business strategy to anticipate revenue by releasing exclusive offers and studying for potential competitive strategies and implementing

Unavailability of tutors from either resignation or lack of applicants hired

Promotional efforts to reach more potential or interested applicants

Service sales target not achieved for the semester

Boost promotional efforts by gathering testimonies and to reach more audience

Unprecedented increase in goods and complementary services offered

Reevaluate business strategy to increase the number of service units targeted to obtain optimal number of service units for profitability

No growth

Reevaluate company policies and business structure Focus more on research and development activities

DETAILED FINANCIAL PLAN PROFIT & LOSS The company will be experiencing a loss in the second year where we need to pay the tutors, water and building expenses without assurance that we are earning. But when the product continued to sell steadily, profits would eventually be made. The business’s projected profit and loss for the first five years of development are shown. However, in the graph on the right, profits will be made after the second quarter of the second year. The company’s quarterly profit or loss for each point on the graph over the course of the five-year study is represented.

143-0058 | ACE TUTORING

DESIGN & DEVELOPMENT

BREAK-EVEN ANALYSIS Break Even point estimates suggest that during a five-year study period,The company should aim to sell at least approximately 231 units per semester in order to break even. It is accomplished in the third year.

BALANCE SHEET

REDACTED

LessonUp Tutorial Center lessonupbyace@gmail.com ACE TUTORING

APPENDICES

CHAPTER VII

APPENDICES LESSONUP FACILITIES FLOOR PLAN

REDACTED ADMIN OFFICE

CLASSROOM

143-0058 | ACE TUTORING

APPENDICES

REDACTED

S2 Y1

S1 Y2

S2 Y2

S1 Y3

S2 Y3

S1 Y4

S2 Y4

S1 Y5

GANTT CHART

S1 Y1

lessonupbyace@gmail.com

APPENDICES

OVERHEAD COST

FINANCIAL DOCUMENTS

REDACTED

143-0058 | ACE TUTORING

APPENDICES

INCOME STATEMENT

FINANCIAL DOCUMENTS

CASH FLOW PROJECTIONS

REDACTED

lessonupbyace@gmail.com

APPENDICES

CORRESPONDENCIES WITH POTENTIAL TUTORS

143-0058 | ACE TUTORING

APPENDICES

MANAGEMENT CURRICULUM VITAE

lessonupbyace@gmail.com

APPENDICES

MANAGEMENT CURRICULUM VITAE

143-0058 | ACE TUTORING

APPENDICES

MANAGEMENT CURRICULUM VITAE

lessonupbyace@gmail.com

APPENDICES

MANAGEMENT CURRICULUM VITAE

143-0058 | ACE TUTORING

APPENDICES

MANAGEMENT CURRICULUM VITAE

lessonupbyace@gmail.com

APPENDICES

MANAGEMENT CURRICULUM VITAE

143-0058 | ACE TUTORING

APPENDICES

MANAGEMENT CURRICULUM VITAE

lessonupbyace@gmail.com

APPENDICES

MANAGEMENT CURRICULUM VITAE

143-0058 | ACE TUTORING

APPENDICES

MANAGEMENT CURRICULUM VITAE

lessonupbyace@gmail.com

APPENDICES

MANAGEMENT CURRICULUM VITAE

143-0058 | ACE TUTORING