Description of the Business
Likewise the physical development is essential for a company, mental health and mental development is also extremely essential and it is one of those provisions from which a positive impact over the mentality would have been analyzed. By considering the importance of physical and mental development of children, we have started a new business for the similar sake. The name of our business is “The Keys to Children Success”.
It is basically an educational institute for the children and we will give information and knowledge to them regarding different ways and phases of life.
Owners and Credentials
The ownership of our company is in the hands of two different individuals, which are, the Chief Executive Officer (CEO) and Director Operations (DO) of the company. The name of CEO of the company is Ms. Lightfoot, while the name of DO of the company is Mr. Hussey. Both of them have a MBA degree in Marketing from Stanford University, USA with extensive marketing and operational based experience.
The mission of our business is mentioned below in italic,
’To become the most preferable Children Institutions of the USA, that assists them in attaining their future success’
We are intending to establish our business in one of the busiest and perfect cities of the United States and the company is strategizing to establish their business in Sunrise, Florida. Sunrise is the most famous city of the United States, with around 84,439 residents. The address of the company is 5930 nw 14 place Sunrise fl, 33313.
Product and Services
We are an education institute and we are providing all sorts of educations and manners to the children who are essential for their future growth and success. Both of these things are essential for Children in their success.
There are number of consulting companies are operating in the United States, and we are willing to work with KPMG, one of the largest consulting and external audit companies, which will give fruitful business advice to us along with managing all of the audit and financial based issues of our business.
It has been observed that the life here at Sunrise is extremely fast and hectic, and due to the external pressure of job and personal finance, both mom and dad has to do the job, therefore the essence of taking care of the children would also be in blurred mode predominantly in this particular city. Therefore it is required to come up with such an educational institute which will enhance the grooming of the children accordingly. Our business will open at 7:00 Am sharp and will close by 7: Pm in the evenings, therefore the total time allocation is 12 hours.
Equipment & Process
The equipment which we are intending to have in our education institutes are blackboards, toys, baby furniture, supplies and other important things. The process starts from the physical grooming and exercise of the children and ends on their mental health in total. The process is indeed perfect and we will soon get effective result from our operations.
We are not a manufacturing company, therefore we are not required any sort of supplier, however regarding having fixture and furniture, we would like to have Inter-wood Company as our supplier which will provide furniture and other office based supplies to us.
The functions of marketing could be extremely important and vital for an organization and no organization could get effective added advantages without effective marketing principles and stance. We as a company believe in effective and timely marketing strategy because we know the relationship between effective marketing and long term economic prosperity of a company. At “Keys to Children Success”, we have effective and intelligent team under or net which will provide all sort of marketing based information to us along with the perfect marketing based strategies.
Sunrise is a big city and it is known as the financial hub of the state of Florida. There are number of companies currently operating in the same business line, and we have to compete with them, in order to become economically and strategically effective and fit. Competition could be over ruled with the help of effective and timely pricing and promotional based strategies in total.
Pricing is the most important and effective things from the standpoint of a product and from the standpoint of a company as a well which is used to enhance the productivity of a product accordingly. In order to be competitive, the company has to adopt a low pricing strategy because the company is in the position to enhance its brands in front of the consumers. We have to adopt a pure play method to apply the right price for its products. According to this model, price should be lower than the competitor’s price. The pricing strategy would be competitive.
Pricing Strategy Model:
The advertisement and promotional strategy adopted by us is pulling. There are diverse mediums, which we have opted to pursue in order to advertise ourselves in Sunrise, Florida. All the practices inherited, will help the business in creating awareness in the minds of public and shall play a role in influencing them, to visit our place. In the pursuance of pull strategy, we will be adopting different offline channels.
Different newspapers circulating in Sunrise, Florida; related to health, fitness and training of children will be selected by us for print promotions.
We have planned to design different eye catching flyers and brochures, which will be distributed in public places; specifically to people who love sports.
We are strategizing to initiate sponsorships of educational institutes around the country, which will also assist us to recognize our name among the general public.
Banners on Websites
We are planning to post our banners on different websites, which will surely help us to promote The Keys to Children Success.
Social Media Marketing:
This is another very significant medium. We will be promoting our name on Face book, Twitter, and YouTube. Videos of The Keys to Children Success and its facilities will be provided and uploaded on all such mediums, which will be as effective as T.V. advertisement.
The revenues of company are divided in following 3 general categories
It is assumed that all the students will register at the start of the year. There is 6.95% growth in parent fees or no of students in a year and 7.44% increase in registration fee because of number of students increase. Company will make the following expenses on the first year
- There is 5% growth in above expenses each year except food supply rent, others and payroll in which there in no growth on yearly basis
- There is 10% of depreciation rate on fixed assets
- The Income Tax rate is 30% each year
- Three partners of the company has invested $ 5000 each and $15000 of capital at the start of the business
- Company purchased the equipments at the start of the business in year 1 worth $15000
- There is $3,000 replacement & repair cost on yearly basis from year 2 to 5 each year
Start up Expense
Profit & Loss (3 Years)
Ms. Lightfoot and Mr. Hussey are two individuals who will start the business. Both of them studied MBA marketing from Stanford University and have sufficient operational management experience.
Personal Financial Statement
The share of each individual from the net income would 50%
Federal Tax Return and Credit Score
There is no tax on the dividend in the city of Sunrise; hence the income would be tax free. The credit score of both of these individuals are AA.