EAG Home Tutor Service

.docx

School

Ashland University**We aren't endorsed by this school

Course

EDFN 202

Subject

Communications

Date

Dec 23, 2024

Pages

Uploaded by TeshomeA

Executive SummaryEAG Home Tutors Services is going to teach varieties of subjects within the scope of (kg –grade12) of the education board in Addis Ababa. The intention of starting the Home tutorial services isto soundly educate people in various subjects and of course to make profits from the educationindustry.There are many reasons parents choose tutoring for their children. Some parents feel unable tohelp their children with schoolwork. Others may find their children are more receptive toworking through school struggles with another person. Tutoring can help strengthen subjectcomprehension, boost confidence, and build important learning skills.Tutoring gives students individualized attention that they don’t get in a crowded classroom. Thishelps children who struggle to keep up, as well as those who aren’t challenged enough. It alsokeeps students on track during breaks from school, such as during March Break, or during thesummer.Home tutoring is a form of Tutoring that occurs in the home. Tutoring is receiving guidance orinstruction by a tutor. Most often the tutoring relates to an academic subject or test preparation.This is in contrast to tutoring centers or tutoring provided through after-school programs. Theservice most often involves one-on-one attention provided to the pupil; otherwise, it is calledsmall group tuition, in which the tutor and a small number of pupils gather at one of their homesfor Tutoring.EAG home tutor services is a business that will be located in Addis Ababa ,Ethiopia .So any onein Addis Ababa having a child or family which is student from kg-Grade 12 and willing /abilityto pay for the service is our client.The service offerings are listed below;Offering Home tutor services (teaching various subjects to students at different learninglevels)Retailing of educational materials work sheet and teaching head Giving advice for family related to her child talent Providing entertainments program The strategies to reach the customers are:-Print out fliers and business cards and strategically drop them in schools, libraries andeven student organizations.Creating a website, allows parents to be able to look you up, and also allows you to postgeneral study tips, giving you an added advantage.Introduce yourself to learning specialists, school coaches, school administrators, teachers,guidance counselors.

Using tutorial referral networks such as agencies that will help match students with ourhome tutorial service.Engage direct marketing approach.Encourage word of mouth marketing from loyal and satisfied clients (students).The SWOT of EAG can be seen as follows:Our core strength lies in the power of our team; our workforce. We have a team that hassuccessfully run a standard tutorial college, a team with excellent qualifications and experiencein education. Trust and competence are key factors in this line of business and we can boast ofhaving healthy dose of both.As we are new for a business, it might take some time for our organization to break into themarket and gain acceptance in the already saturated tutorial / education industry; that is perhapsour major weakness.The opportunities in the tutorial / education industry is massive considering the number ofparents who would want their wards to perform excellently well in their education and alsoadults who would want to learn how to read and write and also obtain high school diplomas. As astandard Home tutorial services provider, we are ready to take advantage of any opportunity thatcomes our way.Other competitors entering your space pose the greatest threat. If a competitor is trying to poachyour best people, find out what motivates your tutors and make sure you provide it. We didn’tfear competition. Competition is a sign that there is a market for our lessons, which is a greatsign. However, if you just copy your competitor’s strategy in terms of marketing and pricing,you’ll probably lose your shirt. We need to stand out from the crowd.We use different strategies to help with this and here’s one of the most effective ways.Target market: - as a home tutorial services provider cuts across people of different class andpeople from all walks of life. We are coming into the tutorial / education industries with abusiness concept that will enable us work with the students at different learning stages.In Home tutor business, the amount or cost will depend on the approach and scale you want toundertake. If you intend to go big by renting a place, then you would need a higher amount ofcapital as you would need to ensure that your employees are taken care of.The capital for a home-based tutor might fall between 150,000 and 300,000 ETB while that of amedium and large scale would definitely be higher.1

Acquiring an office space that will accommodate the number of teaching and non – teachingstaff (Re – Construction of the facility inclusive) will cost – 90,000 ETBEquipping the office (computers, printers, markers, pens and pencils, furniture,telephones, filing cabinets, and electronics) will cost – 90,000 ETBLaunching an official Website will cost – 30,000 ETBAdditional Expenditure such as Business cards, Adverts and Promotions will cost– 30,000ETBWhile a home tutor might not have to incur all these expenses but going by the above report, wewill need an average of– 240,000 ETB to start Tutors Services is a partnership business that isowned and managed by EAG team. These are the areas we intend generating our start – up capital;Generate part of the start – up capital from personal savings and sale of his stocksGenerate part of the start – up capital from friends and other extended family membersGenerate a larger chunk of the startup capital from the bank (loan facility). We have been able to generate about 240,000ETB (Personal savings 60,000 and soft loan fromfamily members 30,000 ETB) and we are at the final stages of obtaining a loan facility of150,000ETB with interest of 11% from Agar micro Finance. Payment requirement forManpower is covered from business since payment is after service we aqua income at that time.We expect minimum of 12 hour duty per week by each 20 tutors for 1styear 40 for 2nd& 18 hourduty per week by each of 30 tutors. Service provided for 10 month per year with the followingprice and working hour.2

Descriptions Availability from total working hour (248 per week)Coverage of time per week Price per hourPre-primary school student20%48 hour450 ETBlower class of primary school25%60hour420ETBPrimary school student40%96 hour480 ETBPreparatory school student10%24 hour540 ETBPreparatory school student5%12 hour600 ETBFinancial statement: Forecasted income statementYearYear 1Year 2Year 3Total Sales376,800ETB753,600 ETB1,130,400 ETBOperational Cost343,760 ETB657,920 ETB926,280 ETBDepreciation-200 ETB400 ETBTotal Cost343,760 ETB675,920 ETB926,280 ETBNet Income before Tax33,040 ETB96,980 ETB204,120 ETBIncome Tax (30%)9,912 ETB28,824 ETB61,236 ETBNet Income after Tax23, 132 ETB67,256 ETB142,884ETB3