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I. INTRODUCTION

A tutorial service is a method of transferring knowledge and maybe

used as a part of a learning process. It is more interactive and specific than

a book or a lecture in a regular classroom set-up. It seeks to teach by

example and supply the information to complete a certain task.

A tutorial can be taken in many forms, ranging from a set of

instructions to complete a task to an interactive problem-solving session. It

is a small class of one or only a few students, in which the tutor, a lecturer

or other academic staff member gives individual attention to the students.

There are also specialized schools for tutoring such as Kumon and

EduHub. These supplemental hands-on learning programs are especially

popular in Asia particularly in the Philippines.

A tutorial service is provided by a tutor; an instructor who gives

private lessons. Normally, a tutor will help a student who is struggling in a

subject of some sort. Also, a tutor may be provided for a student who wants

to learn at home. He is a private instructor who teaches a specific subject

or skill to an individual student or small group of students. Such attention

ideally allows the student to improve knowledge or skills more rapidly than

in a classroom setting.
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Tutors are often privately hired and paid by the student or the

student’s family. Some are used for remedial students or others needing

special attention; some provide more advanced material for exceptionally

capable and highly motivated students or in the context of home schooling.

Academic tutoring for students can help to encourage and strengthen a

student so that they do not fall behind.

A home-based tutoring is a form of tutoring that occurs in the home;

either in the house of the tutor or in the house of the student. It is usually

provided after school programs or school hours. The service most often

involves one-on-one attention provided to the pupil. There are both full-time

and part-time tutors. Part-time tutors may be students who want to earn

extra money while they are still going to school, such as undergraduates of

universities. They may be self-employed and considered themselves as

full-time tutors.

Unlike in a classroom setting, in which a group of students consisting

of 40 to 50 who are simultaneously taught by a teacher or instructor, in

private tutoring there is a teaching methodology or instruction provided by

one tutor to one pupil. This set-up will provide a student faster learning

because there is a concentration on the subject/s being taught by a tutor.

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(www.homebasedtutotial.com.ph)

II. COMPANY SUMMARY/BUSINESS DESCRIPTION

The proposed project will be a home-based tutorial service located

in Manggahan Compound, Sapa I, Rosario, Cavite (See Exhibit I) just in

front of Galilee Christian Academy.

The business will be named MGS Home-Based Tutorial Center

(See Exhibit II) that will offer tutoring services for subjects covered in pre-

school and grade school particularly on English, Mathematics and Science

plus other subjects. Private sessions will be conducted through individual

teaching approach in order to achieve the maximum learning capacity on

the specified subject areas.

It will be managed by the owner. Competent tutors will be hired by the

firm as part-time teachers since the tutorial service will be provided after

class hours. It will be open from 2:00 pm to 6:00 pm Monday to Friday and

8:00 am to 5:00 pm during Saturdays.

The initial capitalization is only Php 50,000 which is just enough for

the acquisition of the needed teaching equipment and materials. On its first

three years of operation, the business will concentrate on the students of

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the two private schools in and near Sapa I, Rosario, Cavite with pre-school

and grade-school students who are in-need of private tutoring.

III. TYPE OF BUSINESS ORGANIZATION

The proposed business will be organized as a sole proprietorship.

It is considered by the owner due to the following reasons:

 It requires a limited amount of capital

 It is easy to start

 It does not require so many documents

 There is ease in the operation of a business

The owner will also serve as the manager and a full-time tutor. The

manager will see to it that all initial requirements are done during the

early stages of the project. Daily supervision will help things easily

assimilated and make sure that all details of the business are followed.

IV. PERSONNEL ASPECTS

Research on businesses has shown that the success or failure of

companies depend not only on the efficiency of the owner but also on how

well the workers perform their duties and responsibilities particularly in an

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educational set-up. Thus, the need for efficient and effective tutors is very

important.

MGS Home-Based Tutorial Center will have the following for its

manpower: a manager and three (3) part-time tutors.

A. QUALIFICATIONS OF PERSONNEL

Manager/Owner

 A graduate of a four-year course in Business Administration; with MBA

units completed and with trainings in child psychology

 With good communication and interpersonal skills

 With good public relations and can show initiative and good judgment

 Can be able to motivate students

 Has several years of teaching experience

 Very patient in dealing with students

 Proficient in subjects like Mathematics, Science and English

Part-time Tutors (3)

 Must be patient in dealing with children

 With trainings in child psychology

 Preferably female
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 A resident of Rosario, Cavite

 Proficient in subjects to be taught particularly Mathematics, Science and

English

B. DEFINITION OF FUNCTIONS

Manager/Owner

 Supervises the general operations of the center

 Has full authority over the implementation of policies, plans and

strategies of the business

 Will perform as a full-time tutor of the center

 Will also act as the cashier and secretary of the business

 In-charge of preparing books of accounts

Part-time Tutors (3)

 In-charge of the actual tutoring to students

 Assures good teaching results to students

COMPENSATION PLAN

The tutors of the center shall be compensated equitably and the

policy shall be maintained thereafter. The salary and fringe benefits are

itemized below:
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1. A monthly salary of Php 15,000 is allotted to the manager

2. All part-time tutors will be paid on an hourly basis. Each will receive

an hourly rate of Php 100.00 per student

3. A Christmas bonus of Php 2,000 will also be provided

V. MARKET ANALYSIS

Marketing is a very important aspect in business since it contributes

greatly to the success of the organization. In service marketing, since there

is no tangible product, good relationship with customers is the key. Service

marketers must understand the importance of listening and understanding

the needs of customers to build loyalty and trust. Ultimately, effective

relationships in service marketing will lead to repeat sales and positive

word-of-mouth. Because of this, it is important for employees of a service

company to focus on providing customers exceptional value.

The market study seeks to determine the following:

1. The size, nature and growth of the total demand for the service;

2. The description and price of the service to be offered;

3. The supply situation and nature of competition;

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4. The different factors affecting the market; and

5. The appropriate marketing program for a home-based tutorial center.

TARGET MARKET

The target market of MGS Home-Based Tutorial Center was

identified to be the students (pre-school and grade-school) of the 2 private

schools in Sapa, Rosario, Cavite.

TABLE 1
Pre-Schoolers and Grade Schoolers Population
(As of 2017)
Galilee Rosario TOTAL
Christian Institute
Academy
Pre-School 160 200 360
Grade-School 1,325 1,400 2,725
TOTAL 1,485 1,600 3,085

From the actual number of students enrolled in the two target schools

which was provided by the registrar’s office, table 1 presents that there will

be a good market for tutorial services.

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TABLE 2
Projected Student Population
YEAR Galilee Rosario Projected
Christian Institute Student
Academy Population
2018 1,524 1,760 3,284
2019 1,676 1,936 3,612
2020 1,846 2,130 3,976

The projected student population of the two target schools was computed

by having an assumption of 10% increase annually from the 2017 data

(Table 1).

TABLE 3
Projected Demand
(For Home-based Tutorial Services)
YEAR Projected % of Demand Projected
Student Demand
Population
2018 3,284 20% 657
2019 3,612 25% 903
2020 3,976 30% 1,193

Table 3 presents the projected demand for the next three years for home-

based tutorial services. From the projected student population of the two
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private schools in Rosario, Cavite, and from the interviews conducted to

teachers who are conducting tutorial services, a potential market of 20%

was computed for Year 1 and a 5% increase for the succeeding years.

SUPPLY ANALYSIS

The supply for children customers can be determined by analyzing

the number of competitors or existing businesses in the area who are

offering the same type of business or service.

Presently, there is only one home-based tutorial service business

which is located in Ligtong I, Rosario, Cavite. The viability of putting up

MGS Home-Based Tutorial Center in the place will become feasible and

profitable.

TABLE 4
Projected Supply
YEAR Projected % of Supply Projected
Demand Increase Supply
2018 657 15% 99
2019 903 17% 154
2020 1,193 19% 227

The above data is based on the interviews conducted to the business

owner of a homed-based tutorial service in Ligtong, Rosario, Cavite, in

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which they can only accommodate 13% of demand for tutorial in 2017

which is equivalent to 60 students. Their assumption is to have a 2%

increase starting in 2018 up to 2020.

DEMAND AND SUPPLY ANALYSIS

The unfilled demand can tell if the proposed business will become

viable in Rosario, Cavite particularly its profitability. Therefore, these

unfilled demand should be given an immediate solution or action in order to

increase revenue and to serve many student-customers.

TABLE 5
Projected Unfilled Demand
YEAR Projected Projected Projected
Demand Supply Unfilled
Demand
2018 657 99 558
2019 903 154 749
2020 1,193 227 966

There is a big difference between the projected demand and the projected

supply that the existing competitor can provide to students who would want

to acquire such service. With this unfilled demand, it will be a big factor to

push through with this type of business.

TABLE 6
Projected Market Share
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YEAR Projected % of Projected Market Share

Unfilled Market Share
Demand
2018 558 15% 84
2019 749 17% 127
2020 966 19% 184

From the projected unfilled demand, a 15% projected market share will be

the target of MGS for Year 1 which is equivalent to 84 students. From this

projected market share, two batches will be scheduled for tutoring services.

The first batch will be assigned every Monday, Wednesday and Friday

while the second batch will be assigned every Tuesday, Thursday and

Saturday. Each student will have a minimum of 2 hours and a maximum of

4 hours per day for tutorial services. The center can accommodate at least

19 students per day from 2:00 pm to 6:00 pm., Monday to Saturday.

TABLE 6.1
Projected Market Share
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(Total No. of Hours for Tutorial Services)

YEAR Market Frequency Average No. Projected
Share (No. of of Hours Per Market
of Students) Visit/Student Week/student Share (in
hrs.)
2018 84 3 times per 6 60,480
week x 40
weeks = 120
2019 127 120 6 91,440
2020 184 120 6 132,480

Table 6.1 presents the projected market share or the total number of hours

per year that the target students will acquire the tutorial services from MGS

Home-Based Tutorial Center.

VI. PRICING STRATEGIES

Pricing service offerings is something that a business owner should

be careful about because most customers before acquiring a particular

service from a firm will first want to know its prices. From the brochures and

leaflets that the business will distribute before its opening, parents of target

students will have the idea and can make comparisons with other tutorial

business.

MGS Home-Based Tutorial Center will consider the economic status

of parents within Rosario, Cavite in setting its price.

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TABLE 7
Prices of Tutorial Services
SUBJECTS Price Per Hour
Competitor’s Price – MGS Price
Mathematics Php 150 - Php 130
Science Php 150 - Php 130
English Php 130 - Php 110
Other Subjects Php 120 - Php 100

The above prices were based from the existing competitor in Rosario,

Cavite. MGS Home-Based Tutorial will have a decrease of Php 20.00 per

subject for its prices. This will be applied on its first year of operation; a 5%

increase in prices of services will be done on the succeeding years.

VII. MACHINERIES, EQUIPMENT, TOOLS AND SUPPLIES

These are very important in putting up and running a business. It will

be the one that will help the business in rendering quality service. It will

also be of great help to cater the needs of children who will be left by their

parents and guardians in the tutorial center. Listed below are the

machineries, equipment, tools and supplies that the entrepreneur/owner

will acquire.

TABLE 8
Machineries, Equipment, Tools and Supplies
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NAME PRICE QUANTITY TOTAL PRICE

Computer & Php 10,000 1 set Php 10,000
Printer
Computer Table Php 1,500 1 Php 1,500
Air Conditioner Php 10,000 1 Php 10,000
Flat Screen TV Php 8,000 1 Php 8,000
Student Table Php 500 5 Php 2,500
Student Chairs Php 300 15 pcs. Php 4,500
Bookshelf Php 2,000 1 Php 2,000
Office Supplies Php 1,000 1 set Php 1,000
Office Table & Php 3,000 1 set Php 3,000
Chairs

The total amount of Php 42,500 is needed to acquire these equipment and

tools.

VIII. FACTORS AFFECTING THE MARKET

There are various factors or future events that may affect the demand

for a tutorial center; either complimentary or threat to the business.

Demand Size. There are students who were taught or tutored only by their

older brothers and sisters. This is due to the reason that their parents could

not afford the fees offered by a tutorial center; it follows the growth in

population, the more households with both parents who are working the

more that they can afford to acquire the services of a tutorial center.
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Economic Stability. It is essential to know if parents in the locality of

Rosario, Cavite can afford to avail the service; if the economy gets

unstable, there will be a low demand for the service and the possible

solution for this is to lower the service fee and conduct promotions within

the target place.

Competitors. This factor could not be avoided by any type of business.

Through quality service plus the affordable service fees that the center will

provide, parents will be encouraged to send their children for tutoring

service.

IX. MARKETING PROGRAM

The business will implement a strategic yet cost-efficient marketing

program that is easy to implement and control.

These strategies will be used not only to establish recognition for the

Home-Based Tutorial Center but also for competition. They are the

following:

 Leaflets will be distributed to different strategic places in Rosario, Cavite

having the information about the new business.

 Tarpaulins will also be posted to attract parents and kids.

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 Giving a 10% discount to parents who can bring at least 3 of his

children to the center.

X. FINANCIAL ASPECT

The financial aspect provides quantitative information to determine

whether the business will be viable or not. The following sections lay out

the details of the financial plan for the next three years of operation.

Major Assumptions and Policies

1. The average tutorial fee charge to students per subject per hour was

P145 per hour.

2. The average tutorial rate paid to teachers per student per hour was

P100.

3. Students pay the tutorial fee at the end of every session.

4. Tutors were paid daily based on the actual teaching hours.

5. SSS, Philhealth and HDMF benefits were based on the current

applicable tables.

6. The equipment and machineries have a depreciable life of 3 to 5

years.

MGS Home-Based Tutorial Center

Income Statement
For the 3-year ended December 31,
2020
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Sales Revenue 2018 2019 2020

Tutorial Fee 8,769,600.00 13,258,800.00 19,209,600.00

Less: Expenses
30,000.0
Pre-Operating Expenses 0 - -
6,048,000.0 9,144,000.0 13,248,000.0
Salaries 0 0 0
19,800.0 19,800.0 19,800.0
Benefits 0 0 0
20,000.0 20,000.0 20,000.0
Insurance 0 0 0
263,088.0 397,764.0 576,288.0
Utilities 0 0 0
80,000.0 80,000.0 80,000.0
Advertising & Marketing 0 0 0
613,872.0 928,116.0 1,344,672.0
Instructional Materials and Study Aids 0 0 0
131,544.0 198,882.0 288,144.0
Supplies and Overhead 0 0 0
9,293.3 9,293.3 9,293.3
Depreciation 3 3 3
Total Expenses 7,215,597.33 10,797,855.33 15,586,197.33
Net Income 1,554,002.67 2,460,944.67 3,623,402.67

MGS Home-Based Tutorial Center

Statement of Changes in Equity
For the 3-year ended December 31,
2020
2018 2019 2020

Capital Beginning - 2,054,002.67 3,514,947.33

Investment of Owner 500,000.00

Withdrawal by Owner (1,000,000.00) (1,000,000.00)

Add Net Income 1,554,002.67 2,460,944.67 3,623,402.67

Capital End 2,054,002.67 3,514,947.33 6,138,350.00

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MGS Home-Based Tutorial Center

Statement of Financial Position
For the 3-year ended December 31, 2020
2018 2019 2020
ASSETS
CURRENT ASSETS

Cash in Bank 2,017,918.80 3,484,789.90 6,113,022.80

Supplies Inventories 6,577.20 9,944.10 14,407.20
Total Current Assets 2,024,496.00 3,494,734.00 6,127,430.00

LONG TERM ASSETS

Equipment (Net) 29,506.67 20,213.33 10,920.00

Total Non Current Assets 29,506.67 20,213.33 10,920.00
TOTAL ASSETS 2,054,002.67 3,514,947.33 6,138,350.00

OWNER'S EQUITY

Owner's Capital 2,054,002.67 3,514,947.33 6,138,350.00

TOTAL LIABILITIES & EQUITY 2,054,002.67 3,514,947.33 6,138,350.00

MGS Home-Based Tutorial Center

Cash Flow Statement
For the 3-year ended December 31, 2020
2018 2019 2020
Cash Inflow from Operations
Collection from Customers 8,769,600.00 13,258,800.00 19,209,600.00
Cash Outflow from Operations (Schedule 1)

Cash Outflow from Operating Expenses (7,212,881.20) (10,791,928.90) (15,581,367.10)

Net Cash Inflow from Operations 1,556,718.80 2,466,871.10 3,628,232.90

Cash Outflow from Investing Activities

Cash Outflow from Purchase of Equipment (38,800.00)

Cash flow from Financing Activities

Owner's Withdrawal (1,000,000.00) (1,000,000.00)

Investment by Owner 500,000.00    
Net Cash Inflow from Financing Activities 500,000.00
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(1,000,000.00) (1,000,000.00)
Net Cash Inflow 2,017,918.80 1,466,871.10 2,628,232.90
Add Prior Year's Cash Balance   2,017,918.80 3,484,789.90
Ending Cash Balance 2,017,918.80 3,484,789.90 6,113,022.80

Schedule 1      
Cash Outflow from Operating Activities      

Pre-Operating Expenses 30,000.00 - -

Salaries 6,048,000.00 9,144,000.00 13,248,000.00

Benefits 19,800.00 19,800.00 19,800.00

Insurance 20,000.00 20,000.00 20,000.00

Utilities 263,088.00 397,764.00 576,288.00

80,000.0 80,000.0 80,000.0
Advertising & Marketing 0 0 0

Instructional Materials and Study Aids 613,872.00 928,116.00 1,344,672.00

Supplies and Overhead 138,121.20 202,248.90 292,607.10

Total 7,212,881.20 10,791,928.90 15,581,367.10

Schedule 2          
QUANTIT TOTAL Useful Depreciatio
Tools & Equipment PRICE
Y PRICE Life n
Computer & Printer 1 set
10,000.00 10,000.00 3 3,333.33
Computer Table 1
1,500.00 1,500.00 3 500.00
Air Conditioner 1
10,000.00 10,000.00 5 2,000.00
Flat Screen TV 1
8,000.00 8,000.00 5 1,600.00
Student Table 5
500.00 2,500.00 5 500.00
Student Chairs 15 pcs.
300.00 4,500.00 5 900.00
Bookshelf 1
2,000.00 2,000.00 5 400.00
Office Table & Chairs 1 set
3,000.00 300.00 5 60.00
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TOTAL 35,300.00   38,800.00   9,293.33