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Published by: Thakur Prasad Adhikari on Jun 30, 2012
Copyright:Attribution Non-commercial


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** * ** * ** * ** * ** * ** * **
Prepared by:
Ramesh Regmi 
 Kids Montessori Home
1.0 Executive Summary
The purpose of this business plan is to raise the bank loan of Rs.3,500,000 for the development of aMontessori School while showcasing the expected financials and operations over the next three years.The Kids Montessori Home
. (“the
”) is a
Chabahil based entity that provides early childhoodeducation to customers in its targeted market using the Montessori system. The Concern was founded byMr. Ramesh Prasad Regmi and his family members.
1.1 Products and Services
The Montessori School will provide students (age 3 through 5th grade) with a specialized form ofeducation that was developed by Dr. Montessori. Unlike traditional teaching methods, this style providesstudents with an interactive approach to learning that focuses on independent problem solving, self-discovery, and nature intensive learning. This teaching method has become extremely popular over thelast one hundred years, and has proliferated worldwide. There are approximately 7,000 Montessorischools operating worldwide. The third section of the business plan will further describe the servicesoffered by the Montessori School.
1.2 The Financing
Mr. Ramesh Prasad Regmi is seeking to raise Rs. 3,500,000 from your esteemed organization as abusiness loan. The interest rate and loan agreement are to be further discussed during negotiation. Thisbusiness plan assumes that the business will receive a 3 year loan with a 15% fixed interest rate. The
financing will be used for the following: • Development
of the Concern
’s Montessori School location. •Financing for the first six months of operation. • Capital to purchase FF&E. Mr.
Regmi will contributeRs.1,500,000 to the venture.
1.3 Mission Statement
The Montessori School provides a quality Montessori educational background that influences andsupports life long learning for children in the Baudhanath, Chabahil.
1.4 Mangement Team
The Concern was founded by Ramesh Prasad Regmi. Mr. Regmi has acquired experience in the earlychildhood education industry. Through his expertise, he will be able to bring the operations of thebusiness to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Regmi expects a strong rate of growth at the start of operations. Below are the expected financialsover the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation.Mr.Regmi intends to implement marketing campaigns that will effectively target individuals with childrenwithin the target market.
2.0 Concern and Financing Summary2.1 Registered Name and Corporate Structure
Kids Montessori Home, The Concern is registered as an entity with the Kathmandu Metropolitan City inWard No. 7, Chabahil Kathmandu Metropolitan City.
2.2 Required Funds
At this time, the Montessori School requires Rs.3,500,000 of debt funds. Below is a breakdown of howthese funds will be used:
ParticularsActual Cost(in NRs.)
Lease Hold Improvement 850,000.00Computer & Accessories 100,000.00Furniture & Fixtures 1,112,000.00Office Equipments 350,000.00Other Assets 128,000.00Software Exps 45,000.00Working Capital 1915,000Cash 500,000Total 5,000,000Owners Investment 1,500,000Debt Finance 3,500,000
2.3 Investor Equity
Mr. Regmi is not seeking an investment from a third party at this time.
2.4 Management Equity
Ramesh Prasad Regmi and his family owns 100% of the Kids Montessori Home.
2.5 Exit Strategy
If the business is very successful, Mr. Regmi may seek to sell the business to a third party for a significantearnings multiple. Most likely, the Concern will hire a qualified business broker to sell the business onbehalf of the Montessori School. Based on historical numbers, the business could fetch a sales premiumof up to 4 times earnings.

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