Business Plan

Betty Mitchell Secondary

School

Managed by,
Good Samaritan Ministries -
Tanzania
(A Nonprofit Faith Based
Organization)

Supported By
Rudewa Community Members,
Kilosa, Morogoro, Tanzania.

Submitted to
The Managing Director,
Kiswira Mineral Company Ltd,
Morogoro, Tanzania.

Prepared by
Dr. Bahati Richardson,
Development Consultant,
YES I DO - Africa
P.O.Box 2377,
Morogoro.
Cell: +255714736973
Email: info@yesidotz.org
Web: www.yesidotz.org

July, 2017

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 Table of Contents
Table of Contents.......................................................................................................... 2
I. Executive Summary................................................................................................ 5
II. Organization Overview............................................................................................ 6
2.1 Vision.................................................................................................................. 6
2.2. Mission Statement............................................................................................. 6
2.3 The Business Opportunity and Need..............................................................6
2.3.1School Description............................................................................................... 6
2.3.2School Construction............................................................................................. 8
2.4 Capital Requirements....................................................................................... 12
III. School Services..................................................................................................... 13
3.1 Overview....................................................................................................... 13
3.2 Student Learning.......................................................................................... 13
3.3 Student Services........................................................................................... 13
3.4 School Operation.......................................................................................... 14
3.5 School Finance and Accounting....................................................................14
3.6 Student Auxiliary Services............................................................................14
IV. The Market............................................................................................................ 15
4.1 School Market Analysis................................................................................. 15
4.2 Morogoro Region Demographic Information................................................15
4.3 Kilosa District Demographic Information.....................................................16
4.4 Profile of Direct Competitors........................................................................16
4.5 Competitive Analysis and Strategy...............................................................17
V. Marketing Plan...................................................................................................... 19
5.1 Marketing Overview..................................................................................... 19
5.2 Branding Strategy......................................................................................... 19
5.3 News Paper Advertising................................................................................ 19
5.4 Signage......................................................................................................... 19
5.5 Internet Marketing....................................................................................... 19
VI. Management and Staf.......................................................................................... 21
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 6.1 Executive Management.................................................................................21
6.2 Stafing and Teachers................................................................................... 22
VII. Operational Plan................................................................................................... 23
7.1 Operational Overview................................................................................... 23
7.2 Facility Layout............................................................................................... 23
7.4 Laboratories and Library.............................................................................. 23
7.5 Campus Safety.............................................................................................. 23
7.6 Accounting, Billing, and Collections.............................................................23
7.7 IT Infrastructure and Power Installation.......................................................23
VIII....................................................................................................Financing and Growth Strategy
.............................................................................................................................. 24
8.1 Capital Requirements................................................................................... 24
8.2 Financial Strategy......................................................................................... 24
8.3 Risk Analysis................................................................................................. 24
IX. Financial Plan....................................................................................................... 25
9. 1 Five-Year Budget Plan...................................................................................... 25
9.2 Revenue Model............................................................................................. 27
9.3 Expense Assumptions................................................................................... 27
9.4 Income and Expense Estimates....................................................................28
Appendix...................................................................................................................... 29
Appendix A. Income and Expense Details for Five Years........................................30
Appendix B. Registration Certificate copy of Good Samaritan Ministries-TZ............32
Appendix C. Registration Certificate copy of Betty Mitchell Sec. School......................33

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 I.Executive Summary
A quality education is sorely lacking in Kilosa district of Tanzania. The lack of
quality education has had a detrimental impact on families and the society in that
part of the district with illiteracy of almost 60%.

Betty Mitchell Secondary School will be a top-notch and private secondary school
imparting quality education to children in the district of Kilosa in Morogoro
region. At least 10% of the students receive free education.

Betty Mitchell Secondary school was established in the Christian and Good
Samaritan spirit according to the scriptures found in the Book of Luke 10:25 37
owing to the act performed by the Samaritan man as the parable entails in the
Bible; the Samaritan man took pity on the person who was wounded by the
bandits and obligated himself to take care of him with the services needed at that
time as he could.

The school vision was emanated 13 years back by its founder Rev. Samuel M.
Kitwika, the National Executive Director of Good Samaritan Ministries; a
Christian based interdenominational organization operating in Tanzania. He is
soliciting US$380,000.00 in donations to help continue building of Betty Mitchell
Secondary School to its completion plus supporting its initial operations towards
sustainability.

Good Samaritan Ministries has already spent over US$79,250.00 on land clearance
after acquisition and establishment of some of the schools buildings apart from the
current total amount being sought for further investment (funding). The school has
over twelve acres of land with certain schools buildings being complete while
others are partially built. The land was provided by the villagers of Rudewa and
their local government to help build an educational centre (school) where their
children could get afordable and quality education.

Strategically, it is planned if only US$ $18,755 is solicited, will be used to purchase

lab equipments, classrooms chairs and tables first, meanwhile, Kiswira company
will provide the school with a minimum of 200 students in the first year, thus the
rest of the itemized costs in the total capital required will be generated by the
school through additional students admitted each year progressively and repaying
back within the five years covered under this plan.

To this end, in order to have this document created, Good Samaritan Ministries,
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consulted YES I DO, a development organization based in Morogoro in order to
carry out this task. To efect this activity, YES I DO made a thoroughly visitation to
survey the school plus its documents for knowledge purposes, met with staf and
students to learn more about the school and also a visit to other nearby schools
(competitors), relevant government authorities and community members around to
grasp in more about the school image, market situation, legal plus regulatory
compliance. Having attained satisfactory information, YES I DO developed this
document and handled over to GSM for their intended use.

It is the heart and passion of the founder that upon improvement and expansion of
the school, more enrolment of students into this school will be witnessed; this will
serve for a real great purpose for the people around and those from far. We pray
that it gets the support it needs for it to excel furthermore.

II. Organization Overview

2.1 Vision
Good Samaritan Ministries is a Faith Based Nonprofit Organization with a
registration SO. No. 8743 given on 21st May of 1997 by the Ministry of Home Afairs
under Societies Rules, 1954 rule 5, is committed to open life-changing
opportunities for children through quality education. Education is wealth that can
be invested by people to better their lives. Education is the most efective weapon
against poverty and social enigma. Our motto is Imparting good education is the
best community service.

2.2. Mission Statement

Our mission is to support a model high quality secondary school education level
ofering a cost-efective, broad, and challenging educational program to students in
the district of Kilosa part of Morogoro region, Tanzania. At least 10% of the
students from poor families get tuition-free education. These students do not pay
any fees.
A quality education is in short supply in this district. Children and their families
are caught in a vicious circle of poverty and ignorance. They are unable to break
the shackles of the gripping poverty and ignorance. Quality education is a major
way to deal with this dire situation.

The school is committed to inspire students to achieve the highest standards of

intellectual and personal development through a stimulating and comprehensive
educational program. The emphasis is on Science, English, Technology and Math
(STEM).
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2.3 The Business Opportunity and Need
There is an acute shortage of quality secondary education in Morogoro, especially
in Kilosa district. The lack of quality education has had a detrimental efect on
society and its development. There is no availability of a good education even for
families who can easily aford it. According to a survey on Education for Kilosa
district conducted in 2012; two-thirds of the eligible 100 population of secondary
and senior level students remain out of the school system yearly. The situation is
even worse when it comes to having access to quality education. Moreover, in the
entire district with nearly 500,000 people, there are only two private schools!

2.3.1 School Description

Betty Mitchell Secondary School, a truly private secondary school, is a start-up high
quality educational institution. The school is being built on twelve acres of land
located in the ward of Rudewa, Kilosa district, Morogoro region. The school is ideally
situated within easy traveling distance from prime residential location of Rudewa
Village along Dumila Kilosa road, and it is only 2 hours comfortably (105 km) from
Morogoro town by car. This School was established on 2nd June 2004 under the
National Education Act No. 25 of 1978 Section 26 (3), given a registration number
S.1795 along with its National Examinations Council of Tanzanias (NECTA) number
S. 2513, giving it a mandate to admit students as private candidates as well as
school candidates for national examinations.
The School accepts students who have completed standard seven to join form one or
those coming from other schools to continue with their studies with options for
either boarding or day schooling for both girls and boys.

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Figure 1. Location of Rudewa ward is indicated by a red marker.

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There are Science and Arts Streams. It has been performing very well academically
in the district by ranking the 3 rd out of 57 secondary schools available. Meanwhile,
in the region it has been among the ten best schools and nationally it is among the
best schools ofering quality education although its infrastructures are incomplete
yet.

Visualization and active learning will be integrated in every subject. The school
will have mathematics lab equipped with mathematical software to help students
understand physics- and mathematics-related concepts visually and actively in
additional to Chemistry and Biology labs. English lab will be setup to help students
practice reading, writing, and speaking English correctly and proficiently.
Students will be provided an active learning environment. Active learning refers
to methods where students do more than simply listen to class lectures. Students
do something including discovering, processing, practicing, and applying
information through interaction with teachers.

2.3.2 School Construction

The proper land-zoning was approved by the district government on July 11, 2004.
We have all necessary government approvals and formalities in place from
starting the school to continue building the remaining school facilities. Figure 2
shows the schools land and the buildings. Figure 3 shows a picture of the
completed school building. It has five classrooms, one dormitory able to
accommodate 250 students, the dormitory in use is for girls and the one for boys
is under construction. There is a need to construct laboratories, cafeteria, ofices,
kitchen, multipurpose hall and additional rooms.

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Figure 2. Top: A picture of the villagers looking at the provided school land immediately after
the village meeting held

Below: A Picture showing the school land being cleared by the villagers of Rudewa in 2004
voluntarily.

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Figure 3. A sketch showing the school land and the buildings.

Figure 4. A picture of the school building; the current administration block in the backyard
view with classrooms both sides.

The plan is to continue building the school in stages. In the first stage, the school
has been built with classes from form one up to form four. A new construction is for
both upgrading some of the existing buildings and extending with new ones, we will
be adding every year after that. In the second stage, seven classrooms, one ofice,
one teachers residence (housing for 18 teachers), and one headmaster's residence
will be built. The on-campus housing for teachers will enable us to attract better

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teachers.
These rooms will allow us to have first class laboratoriesBiology, Physics,
Chemistry, Computer labs, and a library in addition to the classrooms. In the third
stage of construction, three additional classrooms, additional ofice space, and a
multipurpose hall will be added.

2.3.2.1 Current Status of the School Construction

Good Samaritan Ministries, a Tanzania-based nonprofit organization and the
owner of the school, obtained land for free from the Rudewa Village Community
through their village government and has spent over US$ 71,000 (TZS
142,000,000/=) to partially build the school and installing furniture worth US$
8,250 (TZS 16,500,000/=) since the year 2004. Currently, there are two
unfinished, bare buildings one for laboratory and the other for boys dormitory
(each room is 30 feet by 25 feet). The foundation for the laboratory has been laid
down. The pictures below in Figures 4 and 5 show a partial view of the school
under construction.

Figure 5. A partial view of the boys dormitory under construction. But has ceased due to
financial constraints

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Figure 6. A Partial view of the laboratory foundation of the school.

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2.4 Capital Requirements
Good Samaritan Ministries seeks $ 380,000 (TZS 760,000,000/=) in donation for
the construction and the continued operation of the school. The requested seed
capital will enable Good Samaritan Ministries to help complete the school
construction and support the school operation. The school is expected to become
self-sustaining in the 4th year of its operation after completion. This funding will
enable the school to build a total of ten classrooms including five laboratories
(Physics, Chemistry, Biology, Math, and computer labs) and one library, three
ofice rooms, teacher housing for accommodating up to 18 teachers, one
principals residence, and a multipurpose hall. Good Samaritan Ministries is
expected to complete all the construction work by the year 2023. Table 2 in section
9.1 shows the five year budget plan. The requested capital will enable the school
to become self-sustaining and to have enough building space to run classes up to
form four more comfortably. The details of the five-year budget and other financial
data are discussed in the financial plan section of this business plan.

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Figure 7. A picture of Rev. Samuel Kitwika the visionare and founder of both Good Samaritan-
TZ and Betty Mitchell School.

III. School Services

3.1 Overview
Once everything is completed, the school will ofer an ideal setting for students to
get quality education. Each student will be treated as a valuable customer who
expects the best learning environment. Teachers and other employees of the school
will be treated with respect. The school will engage in the following major
activities:

1. Manage student learning

2. Manage student services

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 3. Manage school operation
4. Manage finance and accounting
5. Manage auxiliary services

These activities will go through a periodic assessment of their performance. Each

of these major activities is briefly described below.

3.2 Student Learning

Student learning activity deals with the design and implementation of various
curricular programs at secondary level. There will be emphasis on Science,
Technology, Math and English education. Programs will be designed based upon
the required knowledge, skills, and abilities (KSA). Appropriate subjects will be
designed and taught based upon the KSA specification of each program in line
with the Ministry of Educations guidelines along with its examination authority;
the National Examinations Council of Tanzania (NECTA).
Teaching and student learning will be assessed on a regular basis. Student and
teacher performance will be assessed. These assessments will be used as a
feedback to evaluate teachers as well as curricular programs. Teachers will be
given adequate resources and facilities to upgrade and refine their teaching
skills. After school coaching sessions will be conducted to help and guide
students in their assignments and homework. These sessions will allow students
to complete their assigned work without relying on their parents. Most of the
parents are not educated enough to help their children in their homework. An
English-medium education presents even more challenges to parents because
most of them do not have a good knowledge of English.
A close interface with the industry will be sought and maintained. The school will
encourage and leverage the employee volunteer program of companies/NGOs in
providing enrichment to student learning experience.

3.3 Student Services

Student services activity involves recruitment, admission, guidance, counseling,
health, etc. A well-defined process will be used to recruit and admit students. A
screening test will be given to ascertain the knowledge and deficiency for incoming-
students. This process will enable the school to identify fitting students who but
may need some remedial work in order to get up to speed with the rest of the
students. Students will be provided counseling in various career opportunities and
higher education.

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3.4 School Operation
School operation activities involve constructing the infrastructure such as
labs, library, Information Technology (IT), building, and other facilities. It
also involves maintaining the inventory of supplies, equipment, and other
assets as well as managing the security of the campus and the students as
well as teaching and learning activities which have had started plus
managing the entire operations.

3.5 School Finance and Accounting

Finance and accounting activities relate to strategic planning, budgeting, financial
management, accounting, national, ministerial and local rule compliance,
implementation of plans, etc. They are being managed by an accountant.

3.6 Student Auxiliary Services

Auxiliary services will involve management of extracurricular activities,
recreational activities, community service activities, student transportation, etc.

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Figure 8. Pictures of Staff (above) and students (below) of Betty Mitchell Secondary School

IV. The Market

Rapidly expanding industrial and service industry has put a heavy labor market
demand for graduates with higher levels of knowledge and skills. The secondary
education is the basic foundation for almost any kind of knowledge and skills. This
has resulted in a huge demand for secondary education in Tanzania.

4.1 School Market Analysis

Figure 7 shows the actual and projected demand for the secondary education in
Tanzania.

Figure 9. World Bank secondary education demand.

There are mainly three types of secondary schools based on ownership

government schools, institutional owned-private schools, and private schools in
Tanzania. Private schools account for about 20% of the secondary enrollment.
Private schools are funded completely through school fees and donations.
Institutional private schools receive some tax exemption yet they work to manage
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their operations very much like the other private schools. Private schools have to
follow state regulations, but they have more autonomy regarding curriculum,
medium of instruction, types of students admitted, fee level, and student-teacher
ratios. There are several hundred private schools in Morogoro region. Some of the
well-known private schools are Msolwa, St. Peters, Junior Seminary, Alpha Gems
and Bishop Adrian Mkoba. However in Kilosa district there are only 4 private
schools namely Msolwa, Mkono wa Mara, Carmel and Betty Mitchell.

4.2 Morogoro Region Demographic Information

The Region lies between latitude 5o 58" and 10o 0" to the South of the Equator
and longitude 35o 25" and 35o 30" to the East. It is bordered by seven other
Regions; Arusha and Tanga regions to the North, the Coast Region to the East,
Dodoma and Iringa to the West, and Ruvuma and Lindi to the South. Morogoro
Region occupies a total of 72,939 square kilometers which is approximately
8.2% of the total area of Tanzania mainland with a total population of 2,218,492
according to the year 2012 census. It is the third largest region in the country
after Arusha and Tabora Regions. The region's 2.4 percent average annual
population growth rate was tied for the fourteenth highest in the country out of
30 regions. It was also the 22nd most densely populated region with 31 people per
square kilometers.

The region is composed of seven districts which are Gairo, Kilombero, Morogoro
Urban, Mvomero, Uranga, Morogoro Rural and Kilosa. According to regional
ofice of population this region is one of the poorest zones in Tanzania Southern
Zone which is made up by the 6 regions (Iringa, Njombe, Morogoro, Mbeya,
Ruvuma and Rukwa) of Tanzania and with per capita income of 760,2007Tshs
or 362 USD. Out of total population of the zone 46% is children while 52% and
2% are adult and old respectively.
From the whole population of the zone 92% live in rural areas engaged in
agricultural activities, which is the dominant activity. This area is recurrently hit
by food deficit mainly because of population pressure, erratic nature of rainfall;
land shortage, backward agricultural technology (lack of modern agricultural
implements and inputs) and so on. Regarding social services coverage this zone is
backward. The primary enrollment ratio doesn't exceed 70% while that of
secondary education is 15.6%. According to recent survey made by finance and
economic development department nearly 60% of the population are illiterate
in Morogoro. The health coverage of this zone is 38% while only 19% of zonal
population gets clean drinking water.

4.3 Kilosa District Demographic Information

Kilosa District is one of the districts of Morogoro region. Kilosa district is the
oldest district in Morogoro region. To the north the district borders the regions of
Tanga and Arusha, to the east is Mvomero district. On the western border are
Dodoma and Iringa while Kilombero district borders to the south. It lies between
latitudes 6 South and 8 South and longitudes 36 30 East and 38 West.
Kilosa district occupies an area of 14 918 square km and according to 2012
population census, the district has 438,175 people, out of this population 32% are
youth.
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The area is characterized by semi humid climate, receiving an average rainfall
of 800mm annually. The district receives rainfall in eight months (October-May)
with highest levels between February and March. Temperature ranges from 18C
in the hills to as high as 30C in the lowlands. Although Kilosa district has two
rain seasons, the pattern and amount of rainfall allow for one harvest of the main
staples per cropping season. The early rains start in November and end in
January followed by the period of heavy rainfall between March and June. The
district experiences a long dry season in June to October. The main economic
activity in the district is crop production and livestock keeping. Over 77% of
people in Kilosa district are fully depending on agricultural activities. Major
crops cultivated include maize, paddy, sorghum, cassava, and legumes. Major
cash crops are cotton, sisal, sugarcane and oil seeds. The district has numerous
socioeconomic problems such as poverty, poor infrastructure, unemployment,
poor social services and social ills. These make this district to be incompatible
with the booming population that is hungry for these services.

4.4 Profile of Direct Competitors

Kilosa district has only three private schools excluding Betty Mitchell Secondary
School. The schools are:

(i) Msolwa Secodary School,

(ii) Mkono wa Mara Secondary School, and
(iii) Carmelite Secondary School.

However, the direct competitor is one private school Mkono wa Mara located
about 12 kilometers (eight miles) south west of the proposed Betty Mitchell
Secondary School. It is considered one of the poor quality schools while Msolwa
which is 70 kilometers away (forty six miles) south and Carmel which is of high
quality lies far away about 80 kms in the southern. Most of the private schools hire
teachers on a contract basis. They also underpay their teachers. For example,
according to several reliable sources, a secondary teacher in Kilosa district is paid
between US $153 (TZS. 321,300) and $250 (TZS. 530,500). A teacher with similar
qualifications is paid over US $300 (TZS. 630, 000) by government schools. Private
schools can hire teachers at a lower salary because there are a lot of unemployed
teachers willing to work at a lower salary. The management at most of
these schools tends to be quite unprofessional and pays little interest in the
welfare of students and teachers. This situation creates two problemslow morale
among the teachers and a sub-par education.
Teachers are not properly respected. Low paid teachers end up doing outside-
tutoring in order to supplement their salary and show only luke-warm interest in
the schools at which they are teaching. Table 1 shows a comparison of tuition and
fees among the competitive schools in the area. The tuition and fees data has been
taken directly from the fee schedule of respective schools shown in table C-E. As
expected, Mkono wa Mara, Carmel and Msolwa fees are higher than that of the
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 proposed tuition and fees for Betty Mitchell Secondary School. Msolwa Private
Secondary School is located near a small village called Msolwa, about 67
kilometers from Kilosa town. It is included in the comparison table to show that a
well-known school can charge high tuition and fees even if it is located in a
smaller town/village.

Tuition & Fee Comparison among Schools in Kilosa (US$)

Classes Betty Carmel Msolwa Mkono wa
Mitchell Secondary Secondary Mara
Secondary School School Secondary
School School
Form I 450.00 1,250.00 1,500.00 500.00
Form II 450.00 1,250.00 1,500.00 500.00
Form III 450.00 1,250.00 1,500.00 500.00
Form IV 450.00 1,250.00 1,500.00 500.00

Table 1. A comparison of tuition & fees among private secondary schools in Kilosa
district 2017.

4.5 Competitive Analysis and Strategy

Current economic and labor market trends have marked a continued growth in
demand for quality secondary education in Morogoro region and throughout
Tanzania. Kilosa district families with children are hungry and desperate for their
children to have an education that propels them into a better future. As a result, a
competitive environment for a well-funded school providing quality education is
extremely favorable. The demand for additional schools was recently
demonstrated by the fact that after we started our operation we admitted a total of
200 students in 2007 which stands to be the highest number of enrolment since we
started with our partially constructed school, currently the number has fallen down
due to poor quality, facilities, infructures and status of the school however, it
attracts students to come and study but not in a good number currently standing at
79 in which 9 are form one, 20 form two, 16 form three and 34 are form four. We
are not in a smooth operation. There is a very strong demand for quality secondary
education hence students move to other schools.

The competitive environment ofers ample opportunity for organizations wishing to

provide secondary education. The above competitors serve similar populations and
similar admission criteria.
However, Betty Mitchell Secondary School will use a more comprehensive
educational service model, attract better teachers, and provide high quality
education.

Betty Mitchell Secondary School will quickly establish a competitive advantage by

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focusing on the needs of the students and teachers. Teachers will be highly paid.
The principal/headmaster and most of the teachers will be ofered on- campus
residence. This will enable us to attract better teachers from the various parts of
Tanzania. State-of-the- art laboratories and IT infrastructure will create a more
hands-on learning environment for students. STEM education will have high
priority. Students will get after-school help in completing their homework. The
school will diferentiate itself by providing excellent service to students.

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 V. Marketing Plan
5.1 Marketing Overview
Betty Mitchell Secondary School will use a dynamic marketing campaign to
achieve branding and promote visibility in the district as well as in the region. The
school plans to initially establish brand visibility within the local community
market of the Kilosa and eventually expand into the regional community market.
Currently students of this region easily travel 30 to 40 kilometers to attend a good
school. There are no School buses transport students from home to school and
back instead they board any buses and or use their bicycles for those who have
one. The school will involve itself into volunteering work in and around the district
in order to create a more positive and true image of the school.
The following marketing strategies will be integral in generating sustainable
revenue and growth.

5.2 Branding Strategy

Betty Mitchell Secondary School will bring to educational market a high quality
educational experience by providing excellent facilities and service to students
and teachers. The branding objectives for Betty Mitchell Secondary School will
focus on building credibility for its high quality education at a competitive price,
backed by highly qualified teachers and an active learning infrastructure. The
school will strive for exposing students to American English speaking and
teaching. It will establish collaboration with US universities where university
students will do internships at the school and teach English to secondary students.
The school will hope to build a reputation for its educational program. Betty
Mitchell Secondary Schools brand will eventually convey the following five
strategic goals:

o Excellence in well-rounded education

o Focus on quality and relevance
o Educational accessibility to poor students
o Excellent learning and teaching environment
o Educational outreach

5.3 News Paper Advertising

Spotlight Ad and Informational Ad about the school and its activities will be
published in the local and other newspapers regularly.

5.4 Signage
The school will feature prominent signage along walls that are visible to walk-by

23
and drive-by trafic. The signs will be large banners that garner attention of
individuals that pass by the school facility. Plus creating and disseminating fliers
and brochures to people in ofices, residences and public areas.

5.5 Internet Marketing

Betty Mitchell Secondary School will implement a variety of Internet marketing
techniques to promote its brand, mission, and services. The school will use
website, email marketing, blogging, and social media to reach various kinds of
families in the community. Website will be a base for student information. The
website will become an accessible source of information about the school and its
services.

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 VI. Management and Staf
The school is afiliated with the Ministry of Education and Vocational Training
(MoEVT). It follows the MoEVT afiliation bylaws as it pertains to the management
of a secondary school. As per the bylaws, the managing committee of a private
school shall consist of not more than 21 members. The Betty Mitchell Secondary
Schools Management Committee shall include the following namely:

(i)The manager of the school;

(ii) The head of the school. He/she will be a Member Secretary of the School
Managing Committee;
(iii) Seven people from within the community-anyone who is a citizen of
Tanzania holding a minimum of form four education can be appointed;
(iv) One teacher from among the teachers of the school;
Thus, the Betty Mitchell Secondary Schools Management Committee will consist of
10 members.

6.1 Executive Management

The overall operation and management of Betty Mitchell Secondary School will be
handled by Good Samaritan Ministries, the owner of the school. The
organizations board members are listed below:
o Samuel M. Kitwika, Executive Director, Good Samaritan Ministries
-Tanzania,
o Bahati Richardson, Treasurer, and
o Antonia Sostenes, Secretary.

Bio: Rev. Samuel Kitwika He received his Diploma in Human Resources in 2000
from College online. He has a Bachelors degree in Counseling and Psychology
from GSM College, USA in 2005.
He served as pastor with the United Brothers in Christ for 9 years. He has been the
national Executive Director of Good Samaritan Ministries for 26 years now
supervising and managing all operations of this organization countrywide. He has
had several frequent to travels across African for Samaritan missions and the USA.

Bahati Richardson, Treasurer, Good Samaritan Ministries Tanzania

Bio: Dr. Bahati Richardson is a graduate in Medical Ophthalmology from the

College of Hygiene and Tropical Medicine of the University of London, UK, in
2008, he has a Bachelor of Science in Accounting and Finance Degree from
Tumaini University, Iringa Tanzania in 2012. Dr. Bahati Richardson currently is
studying a combined distance plus on campus Masters of International
Development and Management at Lund University, Sweden. Dr. Bahati is a
founder of an NGO known as YES I DO and he works as its President. He has
25
worked as an administrative manager and accountant with SALT International, an
American based organization for several years. As a former government worker in
senior positions, he has firsthand experience in dealing with secondary schools in
Tanzania. He is knowledgeable in dealing with district and national government
ofices.

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Antonia Sostenes, Secretary, Good Samaritan Ministries,

Bio: Mrs. Antonia Sostenes is a farmer and a long time volunteer in the Good
Samaritan Ministries. She has an interest in children development and maintains
a good contact with local parents. She has two school-age children. Antonia
Sostenes will be the Secretary of the school.

6.2 Staffing and Teachers

Once everything is completed as planned, Betty Mitchell Secondary School will
conduct a nationwide search to recruit an able, personable, and well-qualified
principal/head master. The school will work to hire and to keep highly qualified
teachers. The school will make use of recruiting services nationwide in order to
find good teachers.

The school will carefully hire new workers due to the special needs of the nature
of the workdealing with students and their safety. Extensive background checks
will be conducted on all potential staf and teachers to verify academic and
criminal records and their social skills. Extra care will be taken to ensure that
new workers represent their background and skills honestly. Currently the school
has only 6 teachers only.

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 VII. Operational Plan
7.1 Operational Overview
The secondary schools academic session starts in January each year. According to
the current plan, the schools operation will resume in the month of January 2018.
It is estimated that it will take about six months to complete the partially-
constructed school. Therefore, the funding should be secured by the end of
September 2017 in order to resume the school in year 2018. The school is
anticipated to complete its total construction and reopen in 2023 if the funding is
not available in time.

7.2 Facility Layout

The sketch in Figure 2 shows the schools land. The school building and two
residences are also shown with the raised blocks. The land is over two acres, and
it is located in an open area. Its very strategically located because it is inside the
village limit but away from the village crowd. The land was given for free, and the
school building has been partially constructed. The facility will be outfitted with
proper plumbing, wiring and security cameras. An inviting campus will be
maintained through proper landscaping and cleanliness. The facility is properly
licensed and in full compliance with all applicable ministerial and national
regulations governing the operation of an educational institute. The land is
already zoned for educational purposes.

7.4 Laboratories and Library

The school will have fully equipped laboratories. There will be visualization
software and other tools in every lab in addition to the standard lab equipments.
Excellent library facilities will be provided to encourage reading.

7.5 Campus Safety

The campus safety will be maintained all the time. The campus will be secured
with a well-constructed and fenced boundary with a manned entry gate. Web-
camera based surveillance system will be used to monitor the campus activities.

7.6 Accounting, Billing, and Collections

Accounting and other related operations will be stream-lined. Best-practice
accounting techniques such as activity-based accounting will be used to manage
expenses. A proper separation of duties and responsibilities will be maintained in
financial and other areas. Appropriate accounting and billing software will be
28
utilized to support the schools operation. Student registration and fee collection
software will be integrated with the accounting and billing software.

7.7 IT Infrastructure and Power Installation

It is envisioned that IT will play a major role in creating a highly efective
educational environment. A highly secured network of servers and client
workstations will be maintained. Cloud computing and other appropriate IT
concepts will be used to minimize the storage and maintenance of physical devices
on the campus. Additionally, power (electricity) will have to be installed.

VIII. Financing and Growth

Strategy

8.1 Capital Requirements

Betty Mitchell Secondary School seeks $380,000 in funding to finance the successful
implementation of the schools educational venture. The fund will be used as follows:

(i)$5,000 will be used for marketing.

(ii) $309,504 will be used to cover the construction cost of the school and the
residential buildings.
(iii) $18,755 will be used to purchase lab equipments, classrooms chairs,
etc.
(iv) $20,408 will be used to build a networked computer lab with 50
computers.
(v) $26,333 will be used to support the school operation for the first four years.
It will be used mainly to cover the salary expenses.

8.2 Financial Strategy

Good Samaritan Ministries financing strategy is to solicit donations from
organizations and individuals who invest in social and educational activities. The
foundation seeks to secure $380,000 to help complete Betty Mitchell Secondary
Schools building and to support the initial operation of the school. Good
Samaritan Ministries, a Tanzania -based nonprofit Faith Based and the owner of
the school, has spent over $79,000 to partially build the school and install some
furniture being used currently. The seed fund of $380,000 will enable the school to
build out its operating facilities as provided for its capital plan, recruit teachers,
and commence its marketing and operation smoothly. It is projected that the seed
fund will enable the school to launch its educational operations and successfully

29
implement its business operations plan for providing a life-changing education to
children underserved for quality education.

The foundation will focus on securing donation from multiple sources including
organizations that believe in social investing.

8.3 Risk Analysis

The risk associated with this venture is very negligible. The primary source of risk
is related to the future uncertainties about the need for quality education in
Morogoro region. The market demand for secondary education is growing rapidly
throughout Tanzania. More families have high enough income to provide good
education to their children. The management believes that the market
opportunities are significant and the chances for success are excellent.

30
 IX.Financial Plan

9. 1 Five-Year Budget Plan

Table 2 shows the five-year budget plan. The school has been running form one
through form four in its operation. It is estimated that the school will enroll 200
tuition-paying students in the first year. Ten percent of the total enrolled students
will receive free education. Each grade will have 45 to 55 students. An earnest
attempt will be made to reduce the class sizes in two to three years once the
school gets established. We are very confident that it would be possible to charge
a higher tuition and fees once the school gains reputation for high quality
education. This will enable us to reduce the class sizes and possibly run multiple
sections of classes. The first column in Table 2 shows $138,845.92 (88,714.29 +
50,131.63), which is the money already spent on the partially built school
buildings. The construction year column shows the estimated donation of
$380,000. It also shows the various expenses for the construction year. The
construction year represents a time period before the commencement of the
school operation. The construction year expense is projected to $252,504.04.

The enrollment estimate of 370 students in the first year of operation is a

conservative estimate for the number of students. There is a waiting line of
students to get into good schools. We have no written evidence on the waiting
lines since schools do not publish this kind of information. However, our own
experience and the experiences of families with children in Kilosa district tell us
that not only are there a waiting line of students but also there is a desperate
desire on the part of parents to find better schools even if the children are bussed
more than 20 kilometers (12 miles) away from their homes.

31
 Table 2. Five Year Budget Plan.

Five Year BudgetBetty Mitchell Secondary School --A NonProfit School (in US $)
Note: At least 10% of the students will get free education. Exchange
Rate (1
US$)
Item Current Capital Constructi Year 1 of operation- Year 2 of Year 3 of operation Year 4 of Operation Year 5 of TZS 2000
(land & Building) on Year (Forms I,II,III & operation (Forms (Forms I, II, III & IV) (Forms I, II, III & IV) Operation (Forms
IV) I, II, III & IV I, II, III & IV)

Estimated Number of Students 370 460 540 590 640

Annual Revenue from Operation (in 0.00 113,139.46 144,782.65 173,922.08 195,964.29 218,021.98
$)
Estimated Contribution Through 380,000.00 0.00 0.00 0.00 0.00 0.00
Donation (US$)
Annual Operational Expenses
(in US $)
Principal (Salary including retirement fund 11,992.87 12,232.73 12,477.38 12,726.93 12,981.47
(RF)) (All salaries are based upon our own
salary recommendations.)

Teachers (Salary including RF) 77,865.33 87,146.56 96,767.90 106,739.24 108,874.02

Staff (Salary including RF) 16,287.09 16,612.83 16,945.08 20,740.78 24,681.53

Other Expenses (Electricity, Water, Magazines, 5,632.65 5,914.29 11,070.00 11,623.50 12,204.68
Books, Supplies, etc.)

Computer & Building Maintenance 6,857.14 7,200.00 7,560.00 7,938.00 8,334.90

Administrative and Incidental Expenses 1,000.00 20,816.33 21,857.14 22,950.00 24,097.50 25,302.38
Marketing Expense 5,000.00
Note: Organizations are not required to
provide health and insurance benefits.
Note: No taxes are levied on a nonprofit
school if 10% of the students get free
education
Total Annual Operational 6,000.00 139,451.40 150,963.54 167,770.37 194,477.35 214,026.23
Expense (US $)
Capital Expenses
Land--over two acres 88,714.29
School Building-Partially Completed 79,000.00
Building Construction Expense--Building three 160,869.39 0.00
wings (West, North, and East)--One Floor for
a total of 13 Class Rooms and One Office,
Teacher Housing (One floor), and Principal's
Residence

Auxiliary Items--(Lab Equipment, Coolers, 15,693.88 0.00

Generator, 100 set of Bench and Table,
Library Books, etc.)

Construction Expense-- on the classrooms 70,938.78

east wing a n d Teacher Housing and an
additional Office room

Construction Expense-- of the North Wing at 77,695.92

the end of Year 1 of Operation w i t h c l a s s
r o o m s for a MultiPurpose Hall

50 Computers for Lab--At the beginning 20,408.16

of Year 2
Expense for an Additional 100 sets of Bench 3,061.22
& Table at the of the Beginning of the the 2nd
Year

Total Expenses (US$) 253,502.04 237,555.48 154,024.77 167,770.37 194,477.35 214,026.23

Net Working capital (US$) 126,497.96 -124,416.03 -9,242.12 6,151.71 1,486.94 3,995.75

Cummulative Net Working 126,497.96 2,081.93 -7,160.18 -1,008.47 478.47 4,474.22

Capital (US$)
Note: The positive net working capital, if any, will be reinvested. It will be used to expand the school and to offer other charity-related activities.

32
9.2 Revenue Model
Betty Mitchell Secondary School will generate revenues from tuition and fees
charged to students. Table 3 shows the details of tuition and fees for diferent
classes. The row titled Total Monthly (including tuition and fees) shows the total
monthly charge for each student. These estimates are very competitive for the
education market in Morogoro, Tanzania. As can be seen from the fee schedules
of other schools shown in Appendices C-E, Betty Mitchell Schools monthly
charges are very reasonable. These monthly charges will be paid by a students
parents during the first week of every month in advance. Some private schools
collect tuition and fees on a quarterly basis.

Betty Mitchell Sec. School

Tuition & Fee Schedule
(US$)
Exchange
Amounts
(Estimates) rate (1 US$=

Form I Form IV
Annual Fee Form II Form III 49

Admission fee 5 5 5 5

(i) School Diary, Folder 5 5 5 5

(ii) Games & Activities 20 20 10 10

(iii) Library & Audio-Visual 10 10 15 15

(iv) Science Fee 45 45 50 50

(v) Maintenance &
25 25 25 25
Development Fee
(vi) Electricity & Water 10 10 10 10
(vii) Magazine Charge (in
5 5 5 5
July)
(viii) Computer Fee 75 75 75 75
(ix) Term Fee (two Times in a
250 250 250 250
year (August & January)
Total Annual Fee 450 450 450 450

Security Deposit--New
Admission (refundable only 10 10 10 10
with the Original receipt)

Table 3. Tuition and fees estimates.

The five-year budget plan in Table 2 shows the revenue projection for five years.
The school is projected to be self-suficient by the fourth year of operation.

9.3 Expense Assumptions

The building construction expense shown in Table 2 has been computed based
upon the square footage of the building multiplied by the construction cost per

33
square foot. The current construction cost in Kilosa is $11.23 per square foot.

34
The salary expense has been computed based upon private schools own salary
recommendation. The salary estimates are based upon the governments
recommendation for salaries. However, the private schools in Tanzania hire
teachers on a contract basis and pay a lot less (up to 50% less) than the oficial
recommendations. The reason for this is that the unemployment rate is quite high
in Tanzania, and teachers are willing to work at a lower salary. This indicates that
Betty Mitchell Secondary School will be able to attract better teachers even if the
school hires them on contract as long as the school pays more salary than the
salary paid by other area schools.

The expenses for other items such as utilities, tables and chairs, computers, etc.
have been determined based upon the current going rates in Tanzania.

9.4 Income and Expense Estimates

Appendix A shows five-year income and expense estimates. The estimate
indicates that the net cash flow from the schools operation will become more
positive in the third year. The management strongly believes that the school will
not need any external financing to support its operations. It is anticipated that
the internally generated cash flows will be more than suficient to support growth
and sustained financial liquidity.

35
 Appendix

The Appendix contains several supplemental tables and figures plus registration certificates copies of GSM and BSS.

29
Appendix A. Income and Expense Details for Five Years
Betty Mitchell Secondary School--Revenue & Expense Estimate Tuition & Fees

MoEVT Requirements Assumptions: Form I,II,III & IV Form I, II,III & IV Form I, II,III & IV Form I,II,III & IV Form I,II,III & IV Form I,II,III & IV Exchange rate :
Number of classes (form ($1=TZS 2000)
1. Class size: 40 to 50 I u p t o form IV) = 4
2. 1 and teachers per section. Number of students per
3. Library with 5 books per student (at least 1500) excluding text books class=40 to 50, two
4. At least 15 magazines streams each class
5. Volleyball, 200 meter track, and football field Total number of teachers
6. 1.5 to 12 acres land required= (4*1.5=16.)
Staffs (Watchman, Peon, Principal, Clerk, Gardener, Driver) Number of staff= 22;

Monthly Revenue (based upon number of students and monthly tuition & Fees)) Monthly Tuition

Annual Fee

Year 1 Year 2 Year 3 Year 4 Year 5

Number of students
200 360 400 450 600

Average Monthly Tuition Charge

37.5 37.5 37.5 37.5 37.5
Gross Monthly Tuition Income (based upon number of students.)The monthly income
= # of Students* Average Monthly Charge
7,500 13,500 15,000 16,875 22,500

Annual Fee per student (Minimum)

450 450 450 450 450

Annual Fee- monthly Conversion (Annual Fee * # of students/12)

7,500 13,500 15,000 16,875 22,500
Total Monthly Revenue (based upon number of students and monthly 7,500 13,500
Tuition & Fees) 16,875 22,500
15,000 Salary Increment
The Estimated Monthly Expenses are below 80%

Unit Expense Unit Expense Unit

# of Expense Number Expense Number of Expense Number Unit Expense Expense Number Unit Expense
Expense
Item Description Unit (monthly) of Unit (monthly) Unit (monthly) of Unit (Monthly) of Unit Expense (Monthly)

1 250 2501 300 300 1 400 400 1 500 500 1 500 500

Headmistress Salary (includes Provident Fund contribution)

8 200 200 12 250 250 14 300 300 16 350 350 16 350 350

Secondary Teachers Salary (includes Provident Fund contribution)

5 75 75 6 100 100 6 120 120 6 50 150 6 50 150

staff Salary (includes Provident Fund contribution)

3 50 150 3 50 150 3 50 150 3 50 150 3 150 150

Utility (Electricity, Water, and others)

1000 5 420 1800 5 750 2000 5 835 2250 5 940 3000 5 1250

Other Expenses (Magazines, books)

200 7.5 1500 360 7.5 2700 400 7.5 3000 450 7.5 3375 600 7.5 4500

Miscellaneous (supplies, etc.)

1 50 50 1 50 50 1 50 50 1 50 50 1 50 50

Car Maintenance
50 5 250 50 5 250 50 5 250 50 5 250 50 5 250

Computers Maintenance (50 computers-Lab)

5 20 100 5 20 100 5 20 100 5 20 100 5 20 100

Building Maintenance, etc.

1 50 50 1 50 50 1 50 50 1 50 50 1 50 50

Incidental Expenses
1 600 600 1 600 600 1 600 600 1 600 600 1 600 600

Management And Administrative Expenses

3,645 5,300 5,855 6,515 7,950

Total Expenses (Per Month)

3,855 8,200 9,145 10,360 14,550

Net Revenue (Per Month)

Note: No taxes are levied on a nonprofit school if 10% of the
students get free education. All salaries are based upon own salary
recommendations.

Net Annual Revenue in US $ 553,320 46,260 98,400 109,740 124,320 174,600

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Appendix B. Registration Certificate copy of Good Samaritan Ministries-TZ

32
Appendix C. Registration Certificate copy of Betty Mitchell Sec. School

33