A Business Plan Template for a language School

When writing the plan bear in mind your reader. If it is for internal use only then it can be very focused on the areas that concern you most. If it is for other investors then they will want to know things like anticipated rate of return. If it is for a bank, with the intention of obtaining finance, the bank you should include, amongst other things, what security you offer against the loan. The B.P. should address the interests and concerns of the intended reader. In this case I assume the document is for internal use. Keep simple, clear and concise. Try not to go over 10-12 pages.

Author: Version & Date: Business Name: Pablo's Anywhere Language School Address: Contact Details: Include phones, fax, email, skype, website
Ownership Details: Who are the owners, and what percentage of the company do they own. Include other relevant details such as overseas investment, or silent partners.

1. Executive Summary
Bear in mind this should be written at the end of your B.P. preparation. In a couple of brief paragraphs outline what the school delivers and where. For Example: - Spanish courses to overseas students in Sevilla. - Teacher Training to local high school teachers in Shenyang, China. - Associated accommodation services.

1.1 Objectives.
Note: You are almost certain to find that you have to write, or re-write your objectives and aims after you have completed the business plan and you become clearer on what is or is not realistic. Here you identify your key objectives for the coming year(s). You should limit these (probably) to three or less, otherwise your focus will suffer. These should be both

MEASURABLE, and REALISTIC. Examples could be financial, in terms of student numbers, or a specific objective, perhaps relating to growth. For Example: Income of 100,000 equivalent in first 6 months of operation.

- Delivery of 500 student hours/week after first 3 months of operation. the opening of a second campus near the airport in year 2 of operation.

1.2 Aims
These identify more precisely HOW you will achieve your objectives. For example, for objective 2 above the following aims might be: - offer General English classes at 3 levels. - offer IELTS preparation courses

1.3. SWOT Analysis

Strengths & Weaknesses: Here you should address these aspects of yourself/potential business that relate to you directly, as distinct from Opportunities & Threats where you consider outside influences. Address these as honestly and comprehensively as you can. You will have plenty of weaknesses - this is normal. What matters here is that you can identify them and then, as your project progresses, you work towards eliminating/limiting them. Examples of these might include: Strengths 1. I have ten years experience of teaching in different schools to different cultures. 2. I have another teacher who wants to go into business with me, thus sharing the load. 3. I have some promotional experience from my days as a sales assistant with Toyota. 4. I have financial resources sufficient for 40% of the projected cost of the project. Weaknesses 1. I lack the remaining financial resources to begin this project. 2. Neither of us have experience in administration. 3. My partner has just has a baby, limiting the number of hours she can dedicate to this project. 4. If I get sick there is nobody to replace me. Opportunities

1. Cheap and appropriate premises are abundant at present in Shenyang. 2. Shenyang has few language schools offering our intended quality. 3. The local government is currently encouraging IELTS preparation programs in Shenyang with funding. Threats 1. The local government initiative may attract powerful language school chains to Shenyang. 2. GDP in Shenyang is lower than many Chinese cities - we have been unable to establish how many students will be able to afford our prices. It will not be possible to find solutions to all of your weaknesses, and even more difficult, some of the threats. What matters is that you are aware of them and do what you can about each of them when possible. It also matters that you know which ones are 'deal breakers' - in other words which of these, if unresolved, mean that you can't go ahead.

1.4

Key Issues for Success

In many cases these will arise from your work in the SWOT analysis. Examples might include: 1. Obtaining sufficient finance at acceptable interest rates and flexibility. 2. Finding premises that don't lock us into a lease for longer than 1 year of occupation. 3. Finding an appropriate, trustworthy administrator who can deal with authorities in Shenyang. 4. Achieving a minimum of 400 student hours/week in the first three months of operation. These are often deal breakers issues which, if unresolved mean you are unlikely to be able to go ahead with your project, at least in its current form.

1.5 An analysis of Competitors

As far as possible understand the strengths and weaknesses of your competitors. Identify their packages. What courses do they offer, at what price? Which segments of the markets are they focused on? Do they do it badly, in which case it is an opportunity for you to provide a better service? Or do they do it well, in which case your package should perhaps offer something different.

2. Marketing Strategy 2. 1 Research

Outline all the information you currently have about the market and how you obtained it. Include: Facts and figures regarding GDP per capita and potential size of market.

- Analysis of the market. How many will want to study General English? How many will be at each level? How many will want IELTS? How many will want Business English, for example Details about opposition schools. How big are they? What do they tell you about the market? Profile of potential students: are they young learners? Are they local high school teachers? If the latter which authority do you have to approach, and so is the authority, in fact, your target market.

This kind of information is vital so that you can decide where to target your limited resources.

2.2 Strategy.
Outline, in some detail, the courses and other services you will be offering to the market, including length of course, times of day offered, whether they are full-time or part-time, and the goal(s) of each course. Include other services such as selfaccess, conversation club, accommodation (if you are bringing students from Russia to Shenyang to study Mandarin for example). Establish a price for each service. Dont start with too wide a range of services and overstretch yourself.

2.3 Price
There are two main ways to set your price. One is to cover your costs, and the other is to set yourself within the market place. In brief, by pursuing the latter you often cover costs in any case unless you are at the budget end of the market. Decide how you want to position yourself in the market. This is about offering value for money. Both Ferrari cars and McDonalds hamburgers offer value, according to the people who buy from them. What are you going to charge per hour, or per week, and what are you going to offer as distinct from your competitors. Will you offer something

extra, and charge a little more, or will you lower your price below your competition and bring students with a value-for-money, sound but basic study approach.

2.4. Promotion
Decide how much you are going to spend and select carefully where and how to promote. Make sure you stick to your budget. Promotion is your third big cost and the one most likely to be poorly directed. Be sure you have feedback arrangements in place so that you can see the results of each promotion that you pay for.

3. Premises
From your financial projections (below) you will know what budget you have set yourself. You will need two figures: a. Capital Outlay; Are you purchasing the premises? Also, purchase or not, what expense will you incur converting them to the school you want. b. Ongoing expense rent/mortgage repayment. Consider the following issues: Costs. Apart from wages this is likely to be your biggest cost. Access for students (public transport availability, parking, etc) Other tenants in the building. Will your sudden surges of students arriving and leaving create problems for you? Natural light for your classrooms. Legal requirements; health & safety, fire, emergency exits and so forth. Discover what insurance will cost, particularly public liability insurance. Potential income. How many classrooms can you operate, and how many classes will go through each classroom in a day? At what point will your premises limit your potential growth? What level of outfit are you going to apply to your premises, given that you want to impress your students with a professional set up on the one hand, but not blow your limited budget on the other.

4. People
Identify who you are going to employ and at what point? Will you do all the work at

the beginning? If so how many students will it take before there is too much for you to do yourself and you need to take on teachers or administrative staff. Will these begin as part-timers? Your wage bill will be your biggest cost, and it is vital that you keep it under control at all times. It can be tricky to find the balance where you are employing enough people to do the job, and deliver the service well, but not so many that you lose your profit. Also consider your employment procedures; How are you going to find the right people for your school? Precisely when you employ people, and how much you will pay them, should be reflected in your financial planning figures.

5. Physical Evidence
Unlike a product, such as a shirt, a hamburger or a car, which you can inspect at your leisure, a service is harder to make tangible. Most teachers are familiar with disillusioned students, frustrated because they cant see the progress they are making. Physical Evidence is about two things: a. Helping students to see their progress. Examples include tests, external exams, course books, identifying the aims of each class, moving to the next level. b. Giving students confidence in you, so they believe your school is the one to help them achieve their goals. For example show any accreditations and memberships on walls, and do the same with teachers diplomas. Maintain high levels of fit out and technology and make sure your teachers present themselves well. Ensure your website and all other technology works well.

6. Process
Consider a potential students every encounter with your organization, from making the first contact to the moment they sit in a classroom and begin learning with you. Make sure each step is conducive to moving the client to the next step. Consider information and levels of interest. In the former what is necessary? With the latter how do you heighten it? At each stage new information should be available, and the interest level should increase.

For Example: 1st contact newspaper ad o Website address o promotion (an offer, for example).

2nd Contact Website o Greater information about courses. o Explaining that the offer can be accessed at the school premises. o Address and phone number.

3rd contact First face-to-face meeting. Reception? o Opportunity to see the school. o Opportunity to register for more information (technology?) o Opportunity to do a free level test (technology). o A clearly defined next step for client to take if she/he wishes.

4th Contact. DOS o Testing procedure professionalism. o Clear result. o Clear opportunity for next step.

7. Financials
You need to prepare - a profit and loss plan - a cash flow forecast. - Also identify your anticipated sources of finance.

8. Work Emerging from this plan

Identify your key tasks in order of priority.