ENTREPRENEURSHIP DEVELOPMENT PROJECT REPORT

ON

Edu-Starter- An info-Counselling application

Submitted By:

Samarth Vohra

(Reg. No. 1820627)

Shreya Yadav

(Reg. No. 1820651)

Under the guidance of:

Dr. Halaswamy D

In Partial Fulfillment of the Requirements for the Award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT

FEBRUARY, 2020
 DECLARATION

We, Samarth Vohra (1820627) and Shreya Yadav (1820651), hereby declare that the project
report, titled Edu-starter- An Info-Counselling application submitted to CHRIST (Deemed to
be University), in partial fulfilment of the requirements for the award of the Degree of Bachelor
of Business Administration is a record of original research work done by us during 2019 – 2020
under the supervision and guidance of Dr Halaswamy D, School of Business and Management,
and it has not formed the basis for the award of any Degree/ Diploma/ Associate ship/
Fellowship or other similar title of recognition to any candidate of any University.

Samarth Vohra (1820627)

Shreya Yadav (1820651)

Date:

Place: Bengaluru
 CERTIFICATE

This is to certify that the project report, titled EduStarter- An Info-Counselling application
submitted to CHRIST (Deemed to be University), in partial fulfilment of the requirements for the
award of the Degree of Bachelor of Business Administration, is a record of original research
work done by Samarth Vohra (1820627) and Shreya Yadav (1820651), during the period 2019 –
2020 of their study in the School of Business and Management at CHRIST (Deemed to be
University), Bengaluru, under my supervision and guidance and the project report has not
formed the basis for the award of any Degree/ Diploma/ Associate ship/ Fellowship or other
similar title of recognition to any candidate of any University.

Date:

Place: Bengaluru
 ACKNOWLEDGEMENT

We would like to express our profound gratitude to all those who have been instrumental in the
preparation of this project report. We wish to place on records, our deep gratitude to our project
guide, Dr Halaswamy D, for his expert advice and help.

We would like to thank our Vice Chancellor, Dr Fr. Abraham VM and Head, School of Business
and Management, Dr Amalanathan S for their support.

Lastly, we would like to thank our friends and family for their constant support and help.

Samarth Vohra (1820627)

Shreya Yadav (1820651)

 TABLE OF CONTENTS

Chapter. no. Particulars Page no.

Executive Summary 1-3
Introduction

 About MSME
 Purpose
1 4-16
 Industry Profile
 Company Profile
 Entrepreneur’s profile
 Approximate investment
Feasibility study –

SWOT
2 17-24
Market, Product, Technical feasibility
Data Analysis
Interpretation
Marketing

7 P’s
3 25-32
Detailed STP Analysis
Demand Analysis
Pricing Strategies
Human Resource

 Organization Structure/Hierarchy
 Qualification and conditions required for manpower training
 Working Hours
4 33-42
 Leave policy
 Loan grant policy
 Retirement policy
 Recruitment policy
 Salary Structure
Operations

 Location analysis
5 43-48
 Layout Design
 Quality testing Procedure
 Technology/Technical know-how.
6 Finance 49-61

 Investment Break up
 Projected Balance sheet for three years
 Projected P&L A/C
 Calculation of fixed assets with depreciation
 Cash Flow statement
 7 Execution Plan 61-64
8 Conclusion 65-66
9 Annexure 67-69
10 Bibliography 70-71

EXECUTIVE SUMMARY
According to a statistics of CNBC approximately 22 million students enquired for master’s and
bachelor’s degree outside their home country in the year 2018-19. With the ever growing amount
of students going abroad for their bachelor’s and master’s degrees has led to the increase in the
growing market of overseas consultant companies. But with the increase in the number of
students going abroad, the cost of hiring a consultant has become unaffordable for a lot of
aspiring students.

In order to make studying abroad possible for those aspiring students, providing information
regarding the application for studying abroad in various universities and colleges around the
world, information regarding the application for Visa and various other information required for
application like filling forms, fulfilling other documentation processes, etc. at affordable rates is
very important. In order to do that a new app and website will be created which will provide all
the information about applying abroad, housing expenses, future prospects after that, college and
university guidelines and eligibility criteria and all other information. To gain access to this pool
of information the students will need to subscribe to an annual, and semi-annual membership
will be required at a pre-determined price which will be very less as compared to the cost of
hiring a consultant for the same.

On the other hand, such a website and app based working will be beneficial for its owner as well.
As the owner will not have to give salaries to the employees as no labor, in the form of
counsellors, is required because we will take the help of counsellors from various counselling
institutes around the country who will provide counselling information through mail, messaging,
phone calls and even video calls. Moreover, not much infrastructure is required in such a type of
business as everything is on the internet. The only thing required is the website’s and app’s
advertisement to make people aware about it. Once it becomes popular among the people then
more and more corporate firms would prefer to advertise their product’s advertisement on that
website and app. In simple words, it is a business of small investment and has very less risks of
failure and involves huge profits.

Purpose of Selecting
We have selected this industry due to the following reasons:
 According to the statistics of CNBC almost 10 million students will be studying abroad
from their home countries as compared to a figure of 5 million students in the year 2016.
This means an increase in the number of students who will be requiring the services
related to enquiry about applying to colleges and universities abroad. With the increase in
number of students, the diversity of various economic segments will also increase. So the
students who are not able afford counselling services will increase thereby increasing the
market for affordable services.
 In today’s world the value of information is becoming higher and higher because people
using the internet learn how to do things but the main problem they face is that they are
not able to utilize in the right place and on what information they should rely and basing
on that they can get the work done for them.
 CHAPTER 1
INTRODUCTION
1.1 Introduction to Medium, Small & Micro Enterprises:
In a developing country like India, Small Scale Enterprise plays a significant role in economic
development of the country. These enterprises represent a stage in economic transition from
traditional to modern technology. Besides playing economic role in the country, small scale
industries, because of their unique economic and organizational characteristics, also play social
and political role in local employment creation, balanced resource utilization, income generation
and in helping to promote change in a gradual and peaceful manner. These Small Scale
Enterprises are essential not only to solve the problem of industrial development but also to solve
the problems of unemployment, unbalanced areas development, concentration of economic
power. These industries have vast and unlimited scope in India. The small industries play a vital
part in our economic life and are destined to take a larger share in our national economy in the
years to come. Small Scale Enterprises form the backbone and have become engine of economic
growth in India. They have been one of the major planks of India's economic development
strategy since Independence.
In India, the Small-Scale Enterprise industry is defined in terms of investment ceiling. According
to the new Act, The Micro, Small and Medium Enterprises Act, 2006, enterprises are defined on
the basis of investment in plant and machinery, as follows:

Category Investment (Plant & Service

Machinery)
Micro Enterprises Less than 25 lacs Less than 10 lacs
Small Enterprises Less than 5 crores Less than 2 crores
Medium Enterprises Less than 10 crores Less than 5 crores

Micro, Small and Medium sized enterprises in both the Manufacturing and Service sector can
obtain MSME registration or SSI registration under the MSMED Act. Although getting MSME
registration is not mandatory but it is always suggested to small and medium enterprises to get it
done as it provides a variety of benefits. Benefits such as rate of interest charged would be very
less, tax subsidies, capital investment subsidies and other support from the government sector is
provided. Small Scale and ancillary units (i.e. undertaking with investment in plant and
machinery of less than Rs. 10 Crores) should seek registration with the Director of Industries of
the concerned State Government.
Major contribution of MSMEs is as follows:

1. It provides opportunities at comparatively lower cost;

2. It helps in industrialization of rural and backward areas;
3. Reduce Regional imbalances through the optimum utilization of their resources;
4. More equitable distribution of national income and wealth;
5. Major partner in the process of inclusive growth.

Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the country’s
GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the
largest share of employment after agriculture. They are the nurseries for entrepreneurship and
innovation. They are widely dispersed across the country and produce a diverse range of
products and services to meet the needs of the local markets, the global market and the national
and international value chains.
1.2 Introduction to Information Industry:

The information industry comprises a group of enterprises and organizations whose purpose is to
produce and process information and to develop the infrastructure and delivery mechanisms to
distribute information. For the individuals and companies that implement these functions, it is
important to understand the nature of the industry and the issues that affect its activities. For the
people and organizations that use information, it is helpful to develop an understanding of the
larger picture of the industry as a whole so they know where to find the information they need
and how it is being made available.

The definition of "information" that will be used in this entry is that of Michael Buckland (1991),
which regards information as objects. Information objects include things such as databases,
electronic documents, newspapers, books, and calendars. Information is thus something that can
be produced, sold, delivered, and used. In order for these activities to happen, however, some
aspects of the nature of information objects must be properly understood.

Information processing comprises a large portion of the activities within the information
industry; processing transforms information into products that can be packaged and sold as
usable goods. For example, publishing a journal involves processing a number of articles into an
edited and integrated package. Creating an electronic database of journal articles involves
assembling citations and abstracts for articles from a carefully selected group of journals and
integrating them into a large, usable database system.

Distribution of information also comprises a large part of industry activity; distribution includes
marketing the information products that were processed and delivering the products to the
customers who purchase them. For example, once an electronic database of journal articles has
been assembled, proper distribution ensures that potential customers know it exists and that they
can access it after purchase. When the product is delivered to the customer, that individual might
be a librarian or other information professional. This person, who then distributes information to
specific information users, is often called an "intermediary." For nonprofit segments of the
information industry, such as libraries, this may be referred to as "access"; rather than delivering
information products to customers, they are making them available to people for their use.

1.3 Company Profile

EDUSTARTER PVT. LTD., is a Private company that is created to provide information about
how to go about in applying for a college or university outside your home country. This is an app
based company which will provide information about all the things that are required by a student
to apply abroad. The app will provide the following services:
1. Information about application in Universities abroad
2. Procedures to be followed for applying
3. Consultations on-demand
4. Visa application procedures
5. Financial requirements
6. Recent updates on application
1.4 Entrepreneur’s Profile

NAME SAMARTH VOHRA

POSITION Second Partner
BIRTH DATE 31st January 2000
QUALIFICATION BBA 2018-21, Christ University, Bangalore

RESIDENTIAL B-54 Chandanvan Phase 2, Mathura-281001

ADDRESS

NAME SHREYA YADAV

POSITION First Partner
BIRTH DATE 27th December 1999
QUALIFICATION BBA 2018-21, Christ University, Bangalore
WORK Marketing Manager in Mahindra and Mahindra Automobiles for 1 year
EXPERIENCE
RESIDENTIAL F11/29-B, Krishna Nagar, Delhi-110051
ADDRESS
1.4 Approximate Investment

Approximate Investment made by the Firm will be Rs.10,00,000 which will be used for meeting
the initial startup costs, purchase of fixed assets, and for meeting working capital requirements of
the initial stage.

Capital Structure:
Source Amount (Rs.)
Owners investment (Samarth Vohra) 2,00,000
Owners investment (Shreya Yadav) 2,00,000
Mr. Rajesh Arora A/c (Angel investor) 6,00,000
Initial Investment 10,00,000

1.5 Partnership Deed

This deed of partnership is made on 31st August, 2017 between:

1. Samarth Vohra, son of Mr. Rajesh Kumar Vohra, residing at B-54 Phase-2, Chandanvan,
Mathura-281001, Uttar Pradesh hereinafter referred to as FIRST PARTNER.
2. Shreya Yadav, son of Mr. Umesh Yadav, residing at F11/29-B, Krishna Nagar, Delhi-110051
hereinafter referred to as SECOND PARTNER.

Whereas, the parties hereto have agreed to commence business in partnership and it is expedient
to have written instrument of partnership. Now this partnership deed witnesses as follows:

1. BUSINESS ACTIVITY
The parties here have mutually agreed to carry on the business of Educational counselling for
study abroad programs.
2. PLACE OF BUSINESS
The principal place of the partnership business will be situated at Bangalore, Karnataka.
3. DURATION OF PARTNERSHIP
The duration of the partnership will be at will.
4. CAPITAL OF THE FIRM
Initially the capital of the firm shall be Rs. 10,00,000.
5. PROFIT SHARING RATIO
The profit or loss of the firm shall be shared equally among all the partners and transferred to
partner’s current account i.e. 1:1.
6. MANAGEMENT
The First Partner (Samarth Vohra) of the firm shall be Managing Partner and he will look after
all the day to day transaction of the firm and any legal activities in the name of the firm and the
remaining partners shall co-operate to do so.
7. OPERATION OF BANK ACCOUNTS
The firm shall open a current account in the name of The Firm Cooperation at any bank and such
account shall be operated by Samarth Vohra and Shreya Yadav jointly as declared from time to
time to the Banks.
8. BORROWING
The written consent of all Partners will be required for the partnership to avail credit facilities
from any financial institution.
9. ACCOUNTS
The firms shall regularly maintain in the ordinary course of business, true and correct accounts of
all its transactions and also of all its assets and liabilities, the property books of account, which
shall ordinarily be kept at the firm’s place of business. The accounting of the same shall be
signed by all the Partners. Every Partner shall have access to the books and the year shall be the
financial year from 1st April onwards and the balance sheet shall be properly audited a right to
verify their correctness.
10. RETIREMENT
If any partner shall at any-time during the subsistence of the partnership, be desirous of retiring
from the firm, it shall be competent from her to do so, provided she shall give at least one
calendar month notice of her intention of doing so. The remaining partner shall pay to the
retiring partner or her legal representatives of the deceased partner, the purchase money of her
share in the assets of the firm.
11. DEATH OF PARTNER
In the event of the death of any partners, one of the legal representatives of the deceased partner
shall become the partner of the firm and in the event the legal representative show their denial to
point the firm, they shall be paid the part of the part of the purchase amount calculated as on the
date of the death of the partner.
12. ARBITRATION
Whenever there, by any difference of opinion or any dispute between the partners, the partners
shall refer the same to an arbitration of one person. The decision of the arbitration so nominated
shall be final and binding on all partners, such arbitration proceedings shall be governed by
Indian Arbitration Act, which is in force.

In witness whereof, this deed of partnership is signed sealed and delivered this [31st August,
2017] at [Bangalore, Karnataka ]:

Samarth Vohra Shreya Yadav

WITNESS ONE WITNESS TWO

Dhanush Tolia Deepkaran Singh
 CHAPTER-3
MARKET RESEARCH
3.1 FEASIBILITY OF THE PROJECT

The project basically focuses on the students who want to study abroad as a freshman, graduate
or post-graduate. Every year a number of students study abroad for their higher education but
they are not aware about how much they are wasting by paying to the counsellors. And even if
they have some idea they are helpless because there is no other way to get the information which
is being provided by the counselors. Therefore, in this situation this business idea will enter the
picture of providing study abroad information and counselling (An extra fee will be levied on
such services) at very low prices as compared to the existing counselling institutions.

Nowadays, due to growing competitions among the counselling institutions it is difficult to set
up a physical institution at a particular place, which makes the customer base very small and
limited, so, creating an app which will operate at the National level make it a lot easier to build a
Nation-wide customer base and in a much lesser time, raising higher profits and greater future
growth. The only comparatively onerous task is to build contacts with the counselling institutions
around the country and creating profitable associations with to provide human contact in the
counselling plan provided by us. These will be counselling institutions which will provide
counselling information online through our app to the final customers i.e. students who want to
study abroad.

Our app will not only provide information regarding counselling but also related to the visa
applying process. The visa process related information will include everything from how to
apply, where to apply, how much will it cost, how much time will it take, what type of visa to
apply for (i.e. student visa) and much more. And the information regarding visa will be provided,
the only plan fee the student has to pay is at the beginning of the subscription based
app(Annually, Semi-quarterly, Semi-Annually) that will be very affordable as compared to the
payment made to the existing counselling institutions. This whole idea of an information
providing app with step wise layout to guide the student in the whole procedure of starting their
educational journey abroad is a lot more feasible and easier than to set up or build a physical
counselling institution at the National level.
3.2 SWOT ANALYSIS

SWOT analysis is a framework used to evaluate a company's competitive position by identifying

its strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis is a
foundational assessment model that measures what an organization can and cannot do, and its
potential opportunities and threats.

In this project, the following Strengths, weaknesses, opportunity and threats can be identified:

 Strengths-
 This project being the first in India has no competitions at all in its category.
 Difficult for the competitor to enter the competition ones the business is established at the
National level because of its complexity of operations.
 A large population of students who want to pursue their studies abroad.
 A lot of experienced counselling institutions around the country to provide counselling to the
students (providing counselling as our clients, through our site).
 Easy to acquire the first moving advantages.
 Fewer permanent employees required in the initial phase of the project (specifically only the IT
professionals, advertising team, and the management).
 Less capital investment required in this type of business.

 Weaknesses-
 Difficult to establish long term contracts with counselling institutions as it will indirectly cut
down their profits drastically.
 Difficult to build trust among the students as people prefer physical experience more over online
system.
 Extra fee levied on counsellors may discourage the students to take up the app option.
 Difficult to enter international markets because of intense competition and variations of similar
business models.

 Opportunity-
 Growing trend of studying abroad in India over the recent years.
 Growing number of student population in India.
  No competition, present in this sector of business.
 High chances of fast paced growth of this business because of high demand and want for such
type of affordable service and lack of competition.
 Low chances of failure.

 Threats-
 Chances of attracting competition which will be not beneficial for the business in the long run.
 Business can face heavy losses in the initial face (i.e. first 1-2 years) because of lack of trust and
interest shown by the people.

3.3 PRESENT AND FUTURE SCENARIO OF THE SECTOR

According to the international Organization for Economic Co-operation and Development, the
number of international students worldwide rose from 0.8 million in 1975 to 3.7 million in 2009.
In addition, UNESCO’s Institute for Statistics finds that the number is increasing by about 12%
each year.

The United States attracts the most international students, according to the Institute of
International Education, with 691,000 students studying abroad in the US during the 2009 to
2010 school year. Of students who study in the US, the majority go to California, New York and
Texas, respectively. The world’s second most popular study-abroad destination is the United
Kingdom. The education sector all over the world is burgeoning and now is the right time to
enter it. As per the data provided by the government of India, there are an estimated 5.53 lakh
Indian students studying in 86 multifarious countries. USA, Canada and Australia account for
2/3rd of this number. The government data on the number of students in USA and Canada does
not match with the data released by those respective governments.

Every year students go abroad to study as a freshman, graduate, or post-graduate but most of
them do not know how much money they are directly putting in the pockets of the counsellors. In
India each student who takes the counseling help from the counseling institutes spends Rs
50,000/-(Estimated cost for applying in only 10 university or college) which goes to the
counseling institutes.
The counselling institutions, particularly, in Northern India are growing at a massive pace
because of the rising trend of studying abroad in countries such as USA, Canada and Australia.
Therefore, this educational counselling sector is the next big thing in the service-business
industry. And, due to the skyrocketing student population in India, the online counselling
business has a great future ahead.

3.4 COMPETITORS

In India, there are a large number of counselling institutions particularly in the northern states,
however, all these institutions are offline one. Currently, there are some online counselling
institutions, such as hotcourses India which is an idp company located in Chennai, that are
already in this business, however, none of them provide college forms and visa related
information, they only provide guidance of where to apply. And the biggest setback in them is
that they have hired their own counsellors to whom they have to pay on permanent basis even
when they are not getting any online student customers, making such online counselling
institutes a lot more vulnerable to loses due to lack of online traffic (i.e. students).
On the other hand, the business model we are focusing on is completely different in its approach
of having counsellors to instruct the students. Links will be made through contracts with
different counseling institutes at the national level which will help and guide the students who
want to study abroad. And in this case, the counsellors will not be made on permanent basis, they
will be commission basis i.e. they will be paid per student applied through them basis.
Therefore, the commission of each counseling institute, connected with our site, will not be fixed
whereas it will vary, depending on how many students are going abroad through their institute.

3.5 CHALLENGES

In this form of business, focusing solely on providing information to students with optional
counselling, there are some serious challenges to overcome. One of the major obstacles is to
attract customers, this is because people find it more convenient to go to a counselling institute
near them rather than getting counselling help and educational guidance through an online
counselling institution. The students usually would like to pair the information with counsellors
as it makes it easier for them to match their needs with their resources.

Secondly, despite the fact that this business model will generate additional income for the offline
counselling institutions but it will also indirectly cut off their own profits as their own customers
will decline. Not only this but also, they may ask for higher commission from each student who
has applied for abroad studies through them.

Finally, the institutions which are already operating in this category of online counselling
business such as hotcourses India which is an IDP company located in Chennai, are already not
making much because they are not focusing on aggressive advertising strategy to promote their
business, therefore, in order to make such type of business work and operate profitably in the
long run massive advertising is required at the initial stage to make people aware of the business
and it will further build trust among the people. For this, huge funds are required at the initial
stage.

There are a lot more obstacles and challenges which this type of business may face but they are
not big enough to mention separately as compared to the above stated challenges.
3.6 WORST CASE SCENARIO AND CONTINGENCIES

The worst-case scenario in this type of counselling business can be not able to attract or
persuade the customers to get online counselling from the website.

Secondly, not able to persuade much of the offline counselling institutions to become your
business clients in providing counselling to the online customers can lead to failure of the
business idea in the initial stage itself.

Moreover, as the business will require huge funds for the advertisement purpose in the initial
phase, lack of funds can be fatal in the growth of the business and getting established at the
national level. Failure in anyone of these scenarios can pose a serious threat to the survival of the
business or can even lead to complete shutdown in worst-case scenario.

The application market is saturated, though info-counselling through these apps is a relatively
newer concept. We wish to leverage this market condition, but there is always a possibility of
failing to connect to the right audience at the time.

The time taken to break even may exceed our expected time, and the funds in such a case will
run out to sustain the business further.
CHAPTER-4
MARKETING
4.1 STP ANALYSIS

Segmentation
 Demographic Segmentation:
The EduStarter consultation for Regular student consultation and also those students looking for
guidance, as a result, the demand for the educational services would increase every year.
Age group- 18 and above

 Geographic Segmentation:
We will be providing services to Tier 2 cities, because of the fact that most of the cities in the
Tier 2 cities have a greater number of firms in the market and also targeting the rural areas more,
as a result, they appreciate the idea of Online consultation.

 Psychographic Segmentation:
We will be providing consultation to upper- middle students, it becomes difficult for them to
meet their consultation fee if they inquire in different firms. In Tier 2 cities, it is very much
required to a large extent, as most of them live in their villages which tend to provide
consultation less, as a result, a crew of consultation for such students will be essential.

Target
Our Target Market is Upper- Middle Class students and Higher Economic Sections as per the
segmentation above, the students in the Tier 2 cities usually chose the option of studying abroad.
Over that, they are the ones that invest in services like counselling for study abroad programs.
Especially, class 9th and class 11th students who readily engage in services that secure their higher
education.
 Upper-
middle class

Target
Market

lower class
students

Positioning:
The value we strive to create for EduStarter is the consistency in the consultation and the
availability of the workforce throughout the time period, as per the contract between the students
and the company.

Economical

Non- Convenient Convenient

Non-Economical
4.2 MARKETING MIX (7P’S)

Product:
The EduStarter is a platform which provides student consultation by a crew of employees. The
crew of the employees can be customized by the students according to their
preferences/requirements. Our info-consultancy will be known for its consistency and regularity.
Each domestic helper will be assigned to a particular student for long term, to ensure proper
relation between the student and the staff.

Price:
The pricing will be according to the requirements/preferences made by the students. The pricing
will be subject to change on the basis of time exceeding working hour (Rs.30 per hr.) and on
Sundays (Rs. 100). Table below shows the standard prices for each kind of consultation
provided.

Place:
We are targeting Tier 2 cities, because of the fact that most of the students in the Tier 2 cities
have their own houses and not apartments, as a result, they appreciate the idea of Domestic Help.
In Tier 2 cities, Consultations very much required to a large extent, as most of them live in their
own houses and not apartments which tend to provide consultation like security, gardening
already. As a result, a crew of consultation for such students will be essential. Employees will be
given transportation fees, so that they can reach the students assigned to them on a regular basis.

Promotion:

 Business cards and Flyers

Business Cards will be given to most potential customers and flyers will be distributed to
customers visiting the company office. Office staffs will also distribute flyers to their contact
people.
 Print advertising
Being a startup, common print ad, run in a local newspaper, will be the most basic and efficient
unit of advertising as it will ensure these ads to reach our target audience.

 Social media
The Educate worldwide plans to buy ads in electronic media especially in Instagram and
Facebook and TV scroll advertisement. Instagram advertisements will be carried out 200 days in
a year and its frequency will increase every year. TV Scroll advertisements will be carried out
135 times in a year and its frequency will increase every year. This can deliver information right
to the students that need our consultation.

 Other Media
Other inexpensive and efficient strategies that The Educate worldwide target will use are
Referrals and Word of Mouth (WOM).

Items Price per ad. (Rs.) Qty Amount

Business Cards 10 5,000 50,000
Flyers 5 600 3,000
Print Advertising 4,50,000 10 45,000
Instagram and Facebook 10.67 (Insta.) per 200 days 21,34,000 +
view & 15.00 per 30,00,000 (estimating
view 1000 views)
TV Ads. 16,00,000 60 days 9,60,00,000
Other Media 50,000
Total 10,12,82,000

After a year of operations, we will approach Celebrities to come in a contract with the company
to endorse our brand. This will act as a First Mover Advantage for our company, as none of our
existing competitors have had a celebrity to endorse their brand yet.
People:
The Firm will provide consultations to regular students who own house, and not apartment. Our
main people who will be providing these consultations are the employees who initially were
unemployed villagers from rural areas near Lucknow. The company invited all the unemployed
villagers for training and development program. They were trained to ensure specialization in a
particular consultation job. We ensure the gap between the best staff and the least efficient staff
to be the minimum, because all of them together will be learning from the scratch. Providing
standard consultation to the students by the employees is our objective.

Process:

Regular
Appointment of consultations
a worker to a provided
Payment particular
transaction student

Customization
of Package by
customers

Account in
website

The students will be required to get themselves registered by having a Login ID in the
company’s website, which will give them access customize their package. The payment will
have to be made online, so that the monetary transactions will be limited between the company
and the students. The staff will be appointed to a particular student on the basis of the
accessibility to the location for giving regular consultation to ensure proper relations between the
staff and the student.
Physical Evidence:
The Educate worldwide will reassure the students by regular availability of the employees and a
website which has Simple and Professional Design which will be compatible with different
browsers. The website will ensure safe monetary transaction, which will lead to reliability.

4.3 UNIQUE SELLING POINT (USP)

The USP of our service is that our app is not a counselling service but an info-counselling
service, it provides a step-wise layout to guide the entire process of study-abroad programs with
an optional support of a counsellor. It saves the effort and cost of a counsellor by providing a
step by step layout for the entire process for students who want to understand and match their
needs through our app.

4.4 PRODUCT LINE

The product line of Edustarter includes subscription plans (Yearly, Semi-annually, quarerly)
which the student can take up according to his needs and his progress in the process of studying
abroad.

4.5 MICHAEL PORTER’S 5 FORCE ANALYSIS

Threat of

entrants
new

Threat of substitutes
Intensity of competition
within the Consultations
industry
Bargaining
Power of
Buyers

Bargaining Power of Suppliers

Bargaining Power of Buyers:
Buyers' i.e., Student’s Power is high as they have many alternatives. Apart from our consultation,
they can approach their personal contact, or agencies which provide specialized consultation,
such as security, laundry consultation or short-term consultation by startups like Urban Clap, etc.
As a result, Bargaining Power of the Buyers is higher. But we also provide the students with
different packages of long-term consultation with settled expenses. The students will be
permitted to customize their own package, as per their preference. The rates at which we provide
consultations are additionally conservative. Subsequently, the value weight i.e., the price
pressure from the students will be insignificant. As a result, the bargaining power of buyers will
not be extremely high.

Bargaining Power of Suppliers:

Considering Consultation as a menial job, the staff may demand higher wages and can cause
strikes, depending on the situation. Which may affect the value of our company i.e., regularity
and consistency of the consultation. To ensure the availability of the staff, we need to negotiate
in satisfying terms and conditions for suppliers, i.e., employees and in case the staff feel deprived
of their right and freedom, as other domestic staff take uninformed leave usually, our company
staff may demand for many leaves. As a result, we will need to encourage them to make them
available and work hard all the time, by bestowing loyalty towards our company. We need to
encourage them to think that the value of our company matches with theirs.

Threat of substitutes:
Apart from our consultation, they can approach their personal contact, or agencies which provide
specialized consultation, such as security, laundry consultation, online food delivery or short-
term consultation by startups like Urban Clap, etc. for meeting their daily student requirements.
As a result, Buyers' i.e., Student’s Power is high as they have many alternatives. Hence, we face
a relatively higher threat of substitutes.

Threat of new entrants:

Since the Educate world-wide provides long-term-based consultations, it will lead to high
customer loyalty as a result the threat of new entrance can be reduced but if the students do not
prefer the long-term consultations from a single source. The threat of new entrance can be
increased as we will not have any customer loyalty.

Industry rivalry:
As there are many existing agencies, personal contact, and start-ups, which provides a variety of
consultation, the intensity of competitive rivalry is major determinant of competitiveness of the
Consultation industry. We need to sustain our competitive advantage and feature, i.e.,
availability of consultation every-day and develop more through innovation, so that we can make
the lives of students less hectic. We will make our own unique and different image through
strategic marketing scheme, in the form of regular and consistent long-term consultations, which
will ensure customer loyalty. We will allow the maximum degree of transparency of the
company to make the students to trust our company. The students can freely report the
absenteeism of the worker to the company, as absenteeism of staff will be the responsibility of
the company; alternatives will always be available to ensure consultation are provided regularly.
 CHAPTER 5
HUMAN RESOURCE
5.1 ORGANISATIONAL CHART

Samarth Vohra Shreya Yadav

Co-founder Co-founder

Sales &Marketing Customer Relations Finance Application development

Head Head Head Head

Ms. Y Mrs. S Mr. Z

Mr. X Manager/supervisor Manager/supervisor
Manager/supervisor Manager/supervisor

Employee Employee Employee Employee

Employee Employee Employee Employee

Employee Employee
Employee
5.2 NUMBER OF EMPLOYEES IN EACH DEPARTMENT – TOTAL HEADCOUNTS

The Organization will have 4 departments in total as shown in the Organization chart. They are
as follows:

Finance Department- the Finance Department Manager will be heading this department and
there will be a Financial Accountant working under him/her.

Application Development Department- the Project Managers will monitor the work of two
Designers, Three Developers and two Quality Assurance Analysts.

Sales and Marketing Department- the Sales and Promotion Division will have two employees.

Customer Relations- Two Customer Relations Managers would be appointed to care of the
Customer Relations

5.3 TRAINING PROCEDURE AND IMPLEMENTATION

1. Identify Business Impact:

Designing and developing the training procedure to meet the company’s overall goals. Keeping
business goals in focus ensures training and development makes a measurable impact.

2. Analyze Skill Gaps:

By finding out what the gaps are between employees’ current and ideal skills, one can better
pinpoint what their specific learning objectives should be. Categorize these learning objectives
into these three groups, and have activities in the training plan that target all three.

 Motivation: How can one help learners understand why they need to change their
behaviors? By working with employee motivations–for example, pinpointing a
purpose–one is more likely to change behavior over the long term.

 Skills Mastery: What do the learners need to be able to do the job? These behaviors
will have the most impact on performance.
  Critical Thinking: What must the learners know to perform their jobs well?
Distinguish critical knowledge from nice-to-know information to identify what content
should be in the course, and what should be in optional resources.

3. Layer Training Methods:

The most effective training programs use layered, sustainable learning activities to create
performance improvement over time. A layered approach makes sure the program targets the
essential employee, customer, and business needs while training the right people at the right
time in the right way. A layered approach is the best of all worlds because it blends learning
experiences and training methods that maximize the benefits of your time.

4. Evaluate Effectiveness and Sustain Gains:

Employees’ need for training and support don’t end when they get back to work. In fact,
continued support is required to ensure that initial training sticks. Measurable learning
objectives are the foundation for one to evaluate an initiative’s impact.

4.5 Qualification of posts

❖ Application Development

● Our fundamental focus would be on the Application Development as our principle

administration is simply the application. The MDs that is, one of us would head Marketing
and Finance Department and one of us will head the Application Development Team and
Customer Relations.

● There would be 7 workers in the Application Development.

● Project Manager, Business Consultant or Strategist – the position has numerous names,
nearly the same number of, as the obligations it includes. In any case, the Visionary joins
numerous assignments under one term, which likewise catches the position's primary
 capacity: driving the whole task to the vision of a perfect portable application. To do that,
an individual ought to have profound and assorted information on the business focused by
the versatile venture just as be knowledgeable in the board, advancement systems, and
portable improvement. A visionary is additionally liable for the application's consistency
and ensures it coordinates the client's necessities portrayed in the detail records.

o There will be 2 task supervisors. One would be a guaranteed instructor who has over 10
years of involvement with the field of educational training consultancy. The purpose for
such a post is along these lines, that the application is as exact as it very well may be and
that the clients get all the essential highlights which really help and which work. The other
task administrator will be liable for the specialized parts of the application advancement,
who is a specialist in AI applications and has the specialized skill.

● Designers - Design execution may just stable as a one-advance work. Actually, portable
structure specialists initially need to work with documentation. In the wake of handling the
necessities, the group devises the application's route mechanics and makes essential
wireframes. At that point, planners take a shot at the look and feel of the application,
duplicating indistinguishable UI/UX for explicit stages or making an independent one for
crossover applications. There would be 2 originators, a content organizerand a visual
creator.

● Developers - The activity of the Android or iOS advancement group is to process the
completed UI/UX designs and actualize them all in a genuine application. Engineers ought
to have involvement with working with a foundation of decision and its dialects. There
would be 3 engineers. Two of the designers would concentrate on the application
advancement and one will be given the duty regarding the site improvement. The purpose
for such dissemination of work is on the grounds that the site is going to fill in as an entry
for data and connection to download the application itself. The site isn't the principle
center, however the application is. As the business grows and the application extends, new
increments would be made.

● Quality Assurance and Feedback masters - QA specialists are the first and the most basic
crowd of the final result. As they test a versatile application, they reserve the option to
 choose when the task is fit to be exhibited to the client or conveyed to the market. Be that
as it may, before settling on this choice, they should bring up all the alternatives for
development and demonstrate how these enhancements are undoubtedly fundamental.
There would be one QA and Feedback Specialist.

❖ Marketing and Finance

● There would be 2 representatives dealing with the showcasing exercises of the business
which incorporates making print promotions, commercials, arranging nonconventional
advertising exercises and computerized and social advertising. The advertising
representatives ought to have a base work understanding of a half year and must hold at
least four year certification in promoting specialization and must have a normal total of
70% from a rumored school or college.

● There would be 2 workers who will be answerable for dealing with the account and assets
of our business. These representatives would need to get ready records every day and
furthermore should monitor costs brought about and income earned. These workers would
likewise be required to set up the yearly reports of our business toward the finish of each
money related year and toward the start of budgetary year, they would need to set up a
financial limit for the year. The workers must hold a four year certification in represent
considerable authority in account foundation and must have a score of a normal total of
70% from a rumored school or college.

❖ Customer Relations

The client relations division will deal with the client input and inquiries from the application
end. There would be two representatives in the client relations office and they would
legitimately answer to the Managing chief.
5.4 MANAGEMENT STRUCTURE

Functional structure to be established in the company

Under this structure, employees are grouped into the same departments based on similarity in
their skill sets, tasks, and accountabilities. This allows effective communications between people
within a department and thus leads to an efficient decision-making process.

5.5 SALARY, BREAK UP AND FRINGE BENEFITS

Salary:
 Department Heads- Rs. 12,00,000 per annum
 Marketing and HR employees- Rs. 4,00,000 per annum
 Accounting and Finance employees- Rs. 4,50,000 per annum
 Application development professionals- Rs. 5,50,000 per annum

Fringe Benefits:

 Medical Claim Policy: Medical Claim refers to the reimbursement given by our company on
an employee’s health expenses. The families of the employees are also given such kind of a
benefit. General Manager and his family would get a medical claim up to Rs.2 Lakhs and all
the other employees would get a medical claim up to Rs. 1 lakhs.
 All the benefits of the co-working space like leisure room, canteen facilities, game room,
break room etc.
 Provident Fund Employer: will contribute 12% of Basic and DA towards provident fund
contribution. Similarly, 12% of Basic and DA from employees‟ salary and paid to provident
fund which will be in credit of respective employees.
 Group Insurance In case of unforeseen death of an employee, his or her dependent family
members will be given Rs. 3 lakhs as benefit for which company will have tie up with an
insurance company.
 Food Allowance up to Rs. 2000 per month will be given to the employees.
 Free counseling sessions will be given to the employees when required.

5.6 WORKING HOURS AND CONDITIONS

 Employees are expected to work in general shift which starts at 9 AM and ends at 4:30 PM.
 Company will be working 5 days week and Saturday and Sunday will be the weekly
holiday. The employees can choose any one day per week to work from home.
 Company will give 5 National holidays and 5 Festival Holidays in a year with regard to as
festival holidays are concerned, the same will be decided based on the local preference.

5.7 PUNCTUALITY, LEAVE POLICY AND MATERNITY BENEFIT

● Annual Leave: Employees will be given one day of annual leave for every 20 days
worked. Employee can avail this leave in the subsequent calendar year.
● Casual Leave: Employee will be given 12 days of casual leave in a calendar year. In case
an employee joins the company, in between a calendar year, the casual leave will be
calculated on a pro-rata basis. Casual leave cannot be availed for more than 3 days at a
stretch. Casual leave also cannot be clubbed with annual leave.

● Maternity and Paternity Benefit:

Maternity Benefit:

A. A Regular female employee who:

1. delivers a baby (i.e. birth mother), or
2. legally adopts a child below the age of one year (i.e. adoptive mother),
or
 3. 1Is a commissioning mother. Commission mother means a biological
mother who uses her egg to create an embryo implanted in any other
woman.
B. There is no minimum service year requirement for employees to be eligible for
the benefits under this policy.
C. A female employee are eligible for a total of twenty-six (26) calendar weeks of
Maternity Leave. This leave duration also applies to a female employee having
two or more than two surviving children.
1. For birth mother – may start the leave up to eight weeks before the expected
delivery.
2. For adoptive and commissioning mother – may start the leave from the date the child
is handed over to the adopting mother or the commissioning mother, as the case may
be.
D. They will be paid at 100% of pre-leave Annual Fixed Salary
E. The twenty-six (26) calendar weeks are inclusive of rest days, off days and
public holidays.

Paternity Leave:

A. A Regular male employees who

(1) Is having a new born child (i.e., birth father), or
(2) legally adopts a child below the age of one year (i.e. adoptive father)
B. There is no minimum service year requirement for employees to be eligible for
the benefits under this policy.
C. They are eligible for two (6) weeks (30 working days) of company-paid
paternity leave at 100% of Fixed Annual salary.
D. The 30 working days are exclusive of public holidays and paid time off.
 CHAPTER 6
HUMAN RESOURCE
6.1 SOURCES
Internal sources
1. Former employees:
Former employees who had performed well during their tenure may be called back, and
higher wages and incentives can be paid to them.
2. Promotion:
The promotion policy is followed as a motivational technique for the employees who work
hard and show good performance. Promotion results in enhancements in pay, position,
responsibility and authority. The important requirement for implementation of the promotion
policy is that the terms, conditions, rules and regulations should be well-defined.

External sources

1. Press advertisement:
A wide choice for selecting the appropriate candidate for the post is available through this
source. It gives publicity to the vacant posts and the details about the job in the form of job
description and job specification are made available to public in general.
2. Campus interviews:
It is the best possible method for companies to select students from various educational
institutions. It is easy and economical. The company officials personally visit various
institutes and select students eligible for a particular post through interviews. Students get a
good opportunity to prove themselves and get selected for a good job.
3. Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and agencies get
commission in return.
4. Walk in interviews:
These interviews are declared by companies on the specific day and time and conducted for
selection.
5. E-recruitment:
Various sites such as jobs.com, naukri.com, and monster.com are the available electronic
sites on which candidates upload their resume and seek the jobs.
6.2 RETIREMENT POLICY

In this company, there will be no retirement policy because of its nature particularly, as it is
service providing company and the number of employees is also very limited.
 CHAPTER 7
PRODUCTION AND OPERATIONS
7.1 MACHINERY USED

The main machinery used in the companies are the computer systems for all the departments and
the servers and backup servers. The internet and all the furniture is provided by the co-working
space.

Machinery Used Quantity

Computers 8
Computers – high powered 7
Server System 1
Backup Server 1
Mobile Platforms 4

7.2 FLOOR PLAN

The office layout in the case of The Educate worldwide is not as important to other service
providers because we cater our customers outside our office premises. However, the company
will have comfortable furnishings and reasonable ambience in order to attract all the visiting
clients and create good working environment. The EduStarter will use a rented house of
approximately 5 rooms from where to conduct business operations.
The company’s layout consists of following areas:
● Managing Director’s Room

● Administrative/ Account Officers Room (with database operator’s cabin)

● Human Resource / Customer Relationship Officers Room

● Security Guard Room

Following is the operational layout design:

7.3 LOCATION ANALYSIS

Being a service provider, the location strategy will focus on revenue maximization. The higher
contact with clients means higher possibility of turning prospective clients into actual clients. So,
the company has given careful consideration while selecting the site location.

Factors considered while selecting the site

● Office site should be located in the area easily accessible by clients and

● The site should provide proximity to target business area

● The office site should be located with room for future expansion

● Office should be located on the ground or at least first floor.

● Office should cover space not less than 900 square feet and reasonable rental charges.
Considering all the above factors, this site location provides the best proximity to customers
using public transportation. Customers will not have difficulty in finding the office. Most
importantly it provides proximity to target business area. Gomti Nagar is one of the most
populated wards city. The office building is situated near the main road and has room for
expansion. The office space meets the requirement of 900 square feet for the office setup.

7.4 QUALITY POLICY STATEMENT

The Educate worldwide is dedicated to the quality policy that will ensure that its consultation
fully meet the requirements of its households at all times. The goal of the company is to achieve
a high level of customer satisfaction at all times by giving regular quality consultation. The
Educate worldwide believes in continually striving for improvements in service quality.

The quality policy is based on 3 fundamental principles:

1. Ensuring that we fully identify and conform to the needs of the households.
2. Identifying the potential for errors and taking the necessary action to eliminate them.
3. Consistency, regularity and punctuality in giving quality consultation every day.

Objectives needed to ensure that the requirements of this policy are met and that continual
improvement is maintained in line with the spirit of the policy, will be set, determined and
monitored by management. The quality policy principles and objectives will be communicated
and available to the employees at all times. Training will be an integral part of the strategy to
achieve the objectives. We are all committed to operating continuously to this standard and we
will maintain the necessary Quality Approvals consistent with our customer requirements.

Our Company will constantly review and improve on our consultation to ensure tasks are
completed in the most cost effective and timely manner for the benefit of all our customers.
We shall ensure that all our personnel understand and fully implement our Company's policies
and objectives and are able to perform their duties effectively through an ongoing training and
development program.
 7.5 MAINTAINENCE POLICY

Maintenance is defined as a process in which working condition of plant or machinery is

maintained at the optimum level as to give maximum output.

Maintenance at EduStarter app is done through:

1. Adding New Feature Updates

Monitoring the app in the long-term and find out how users are interacting with the app. This could give
useful insight on what features they are using the most, and which ones they find unnecessary.
Adding new feature updates to the app based on user feedback and usage patterns helps retain
them and keep them interested.
We would also keep a check on app reviews. Most users tend to leave suggestions for improvements and
new features. We will use those ideas to add better updates to the app. Adding regular, minor
feature updates is also a more cost-effective solution compared to building an entirely new one
or updating after a long time.
1. Ensuring App Support with New Hardware/Software
Technology never stays stagnant. There’s a new iOS or Android version coming out every year. We will
incorporate the latest hardware features into the functionality of our app, like enabling support
for fingerprint logins and push notifications.
1. Keeping User Interface Updated
Keeping up with the changing styles, trends, and usage habits of the customers is an essential part of an
app’s long-term success. And that means always keeping the user interface (UI) updated. The
more time users spend with the app, the more mature they get.
1. Fixing Bugs Timely
The app will be checked regularly to fix issues in a timely manner. We will also keep track of user
feedback and reviews to efficiently address any issues or complaints.
1. Monitoring Performance
We will keep an eye on loading times, lags, and responsiveness issues. Along with monitoring the
technical performance of the app, we will also stay updated with our analytics reports.
Monitoring patterns of customer usage, and engagement and conversion rates will help you
improve the app, minimize loss of users, and keep the app in its best condition over the long-
term.
 1. Offering Scheduled System Maintenance
Scheduling regular system maintenance is a good way to avoid missing out on issues or bugs. It also
ensures the app is always up-to-date and works smoothly over time. Also, we will be informing
users beforehand about the scheduled maintenance.

The following is the 4-step maintenance system:

A. Prioritization of work.
B. Comprehensive work procedures.
C. Performance standards and goals.
D. Work order system.
CHAPTER-8
FINANCIALS
8.1 INITIAL INVESTMENT

6.1 INITIAL INVESTMENT

PARTICULARS Rs.

Computers And Server 10,00,000

App Design 1,35,00,000

Advertisement And
Branding 50,00,000

Licensing 10,00,000

Rent(2500 sq ft) 30,00,000

Website 1,00,000

Salaries 15,00,000

Contingency 8,12,000

Total 2,59,12,000

8.2 SOURCES OF FUND

6.2 SOURCES OF FUND

DETAILS AMOUNT

Investor’s Capital 49,00,000

(PSB 59 Scheme) 1,44,12,000

Samarth (Partner A) 33,00,000

Shreya (Partner B) 33,00,000

Total 2,59,12,000
The Loan taken from the Bank is at 8.5% interest for a period of 10 years.
While the amount we get through the private investors is to be given the return after a four year
grace period.

8.3 COST OF CAPITAL

The cost of capital for the firm would be the cost incurred on the amount raised through the loans
undertaken.
Bank Loan:1,44,12,000 @ 8.5%
Investors: 49,00,000 @ 10%
For finding out the cost of capital, we use the weighted average method, which will be as
follows:
1,44,12,000 @ 8.5% = 12,25,020
49,00,000 @ 10% = 4,90,000
The total = 17,15,020
Now WACC (Weighted average cost of capital) would be:
=17,15,020/25912000*100
=6.618%
8.4 Depreciation
A 20% annual depreciation on written down value method will be charged on the computers
respectively.

Dep

Particulars Computers
₹
Purchase as on 1/4/20
10,00,000
₹
Value on 1/4/2021
16,80,000
₹ -
Less: Depreciation
3,36,000
₹
Value on 1/4/2022
13,44,000
₹ -
Less: Depreciation
2,86,600
Value on 1/4/2023 ₹
 10,75,200
8.5 Projected Profit & Loss Statement

6.5.1 Projected Profit & Loss Statement

2021 2022 2023

Sales ₹ 1,50,00,000 ₹ 2,50,00,000 ₹ 5,50,00,000

COGS ₹ 68,00,000 ₹ 1,49,60,000 ₹ 3,38,75,000

Gross Profit ₹ 1,38,60,000 ₹ 1,72,20,000 ₹ 2,66,70,000

Gross Profit 82,00,000 1,00,40,000 2,11,25,000

Operating Expenses

Employee expenses ₹ 55,80,000 ₹ 64,17,000 ₹ 73,79,550

Stationery ₹ 10,000 ₹ 8,000 ₹ 7,000

Repairs/ Maintenance ₹ 50,000 ₹ 75,000 ₹ 1,00,000

Advertising ₹ 10,00,000 ₹ 15,00,000 ₹ 22,50,000

Audit Fees ₹ 1,00,000 ₹ 1,10,000 ₹ 1,25,000

Rent & Related Costs ₹ 30,00,000 ₹ 33,00,000 ₹ 36,30,000

Telephone ₹ 5,000 ₹ 2,000 ₹ 2,000

Insurance ₹ 80,000 ₹ 90,000 ₹ 1,00,000

Interest ₹ 12,25,020 ₹ 11,20,893 ₹ 9,30,341

Depreciation ₹ 4,20,000 ₹ 3,36,000 ₹ 2,68,800

Trademark and Copyright
₹ 4,500 ₹ - ₹ -
Registration
Ammortisation of licensed technology ₹ 4,00,000 ₹ 4,00,000 ₹ 4,00,000

Total Expenses ₹ 1,18,74,520 ₹ 1,33,58,893 ₹ 1,51,92,691

Net Profit Before Taxes ₹ -36,74,520 ₹ -33,18,893 ₹ 59,32,309

Taxes ₹ 13,34,769

Net Operating Income ₹ -36,74,520 ₹ -33,18,893 ₹ 45,97,539

Notes on Accounts –

A. Revenue from operations –

Revenue Model

2021 2022 2023

Package/Service Units Price Amount Units Price Amount Units Price Amount

Basic 1500 5000 ₹ 75,00,000 3000 5000 ₹ 1,50,00,000 5000 5500 ₹ 2,75,00,000

Premium 500 15000 ₹ 75,00,000 1000 10000 ₹ 1,00,00,000 2500 17000 ₹ 2,75,00,000

Total ₹ 1,50,00,000 ₹ 2,50,00,000 ₹ 5,50,00,000

The Revenue from operations is calculated by the no. of subscriptions sold through the
app. The subscriptions are classified into two broad categories: Basic and Premium. The
Basic is ₹5000 annually and whereas, Premium is ₹10000 annually.
 8.5 Projected Balance Sheet from 2020-2023

2021 2022 2023

Assets

Current Assets

Cash in bank ₹ 1,38,250 ₹ 1,43,250 ₹ 86,75,000

Total Current Assets ₹ 1,38,250 ₹ 1,43,250 ₹ 86,75,000

Fixed Assets

Machinery & equipment ₹ 10,00,000 ₹ 16,80,000 ₹ 13,44,000

(LESS accumulated depreciation on all fixed assets) ₹ 4,20,000 ₹ 3,36,000 ₹ 2,68,800

Total Fixed Assets (net of depreciation) ₹ 5,80,000.0 ₹ 13,44,000.0 ₹ 10,75,200.0

Other Assets

Intangibles ₹ 2,36,00,000 ₹ 2,36,00,000 ₹ 2,36,00,000

Total Other Assets ₹ 2,36,00,000 ₹ 2,36,00,000 ₹ 2,36,00,000

₹ 2,50,87,250 ₹ 3,33,50,200

TOTAL Assets ₹ 2,43,18,250 ₹ 2,50,87,250 ₹ 3,33,50,200

Liabilities and Equity

Current Liabilities
 8.6 Cash Flow Statement

Long-term Debt
For the Year Ending 12/31/2021 12/31/2022 12/31/2023
Bank loans payable ₹ 1,64,92,770 ₹ 1,69,06,143 ₹ 1,59,17,891
Cash at Beginning of Year 70,00,000 1,38,25,500 1,43,20,500
Total Long-term Debt ₹ 1,64,92,770 ₹ 1,69,06,143 ₹ 1,59,17,891

Cash at End of Year 1,38,250 1,43,250 86,75,000

Total Liabilities ₹ 1,64,92,770 ₹ 1,69,06,143 ₹ 1,59,17,891

Operations 2021 2022 2023

Owners' Equity

Partner's capital ₹ 66,00,000 ₹ 66,00,000 ₹ 66,00,000

Investor's Capital ₹ 49,00,000 ₹ 49,00,000 ₹ 49,00,000

Retained earnings - beginning

Retained earnings - current ₹ -36,74,520 ₹ -33,18,893 ₹ 59,32,309

Total Owners' Equity ₹ 78,25,480 ₹ 81,81,107 ₹ 1,74,32,309

Total Liabilities & Equity ₹ 2,43,18,250 ₹ 2,50,87,250 ₹ 3,33,50,200

Cash receipts from

Customers 1,38,60,000 1,72,20,000 2,66,70,000

Other operations

Cash paid for

Tax Paid -10,39,984

General operating and

-48,09,500 -58,00,000 -68,49,000
administrative expenses

HR expenses -55,80,000 -60,00,000 -85,00,000

App Development -1,35,00,000 -45,00,000 -55,00,000

Net Cash Flow from

3,50,500 9,20,000 47,81,016
Operations

Investing Activities

Cash receipts from

Sale of property and

equipment
Collection of principal on
loans
Sale of investment
securities

Cash paid for

Purchase of property and

-21,00,000
equipment

Licensing Technology -20,00,000

Purchase of investment
 securities

Net Cash Flow from

-41,00,000 0 0
Investing Activities

Financing Activities

Cash receipts from

Issuance of stock

Borrowing 1,10,00,000

Cash paid for

Repurchase of stock
(treasury stock)
Payment of Interest on
Capital

Interest on loans (8.5%) -4,25,000 -4,25,000 -4,25,000

Net Cash Flow from

1,05,75,000 -4,25,000 -4,25,000
Financing Activities

Net Cash Flow 68,25,500 4,95,000 43,56,016

 8.7 Break-Even Analysis
1. Break-Even Sales level:

1.5 Break-Even Analysis

Cost Description Amount Total Amount

Variable Costs
₹ ₹
Cost of Goods Sold
68,00,000 68,00,000

Fixed Costs

HR expenses ₹ 55,80,000

Outside Services ₹ 35,00,000

Stationery ₹ 10,000

Repairs/ Maintenance ₹ 50,000

Advertising ₹ 10,00,000

Audit Fees ₹ 1,00,000

Rent & Related Costs ₹ 30,00,000

Telephone ₹ 5,000

Insurance ₹ 80,000

Interest ₹ 12,25,020

Depreciation ₹ 4,20,000

Ammortisation ₹ 4,00,000 ₹ 1,53,70,020

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Total Costs ₹ 2,21,70,020

Breakeven Sales level ₹ 2,21,70,020

2. Break-Even point (units sold):

We know that,

Break Even Point = Total Fixed Costs / (Sales per unit- Variable cost per unit)

A. Fixed Costs –

Fixed Costs

HR expenses ₹ 55,80,000

Outside Services ₹ 35,00,000

Stationery ₹ 10,000

Repairs/ Maintenance ₹ 50,000

Advertising ₹ 10,00,000

Audit Fees ₹ 1,00,000

Rent & Related Costs ₹ 30,00,000

Telephone ₹ 5,000

Insurance ₹ 80,000

Interest ₹ 12,25,020

Depreciation ₹ 4,20,000

Ammortisation ₹ 4,00,000 ₹ 1,53,70,020

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 Break Even Point = Total Fixed Costs/Sales per unit – Variable cost per unit

= 15370020/7500-3400 = 3750 Subscriptions sold

8.8 Rate of Return

We know that,

Average rate of return = (Average Annual Profit/Net Investment) * 100

Average Annual Profits = ((-36,74,520)+(-33,18,893)+59,32,309)/3)

= (-10,61,104/3)
= (-353700)

Average rate of return = (-353700/2,59,12,000)*100

= -1.365 %

8.9 Pay Back Period

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Payback period is the amount of time taken by a company to gain back the amount of
money invested in the business.

Pay Back Period = Year+ ((Investment-Cf Value)/Next Inflow)

Initial Investment = Rs 2,59,12,000

Year Inflow Cf

1 0 0

2 0 0

3 3687216 3687216

4 4214487 7901703

5 4817158 12718861

6 5506011 18224872

=5+ ((25912000-12718861)/ 5506011)

=7.396 years

Approx. 7.5 years

Therefore it would take approximately 7.5 years to recover the initial investment (assuming a
conservative growth of 14.3% in earnings after tax)

6. EXECUTION PLAN

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STAGE-1 (duration 2-3 months)
 Raising funds for the business project (phase-1 funding, i.e. angel investing and self-
arrangement of funds) and establishing it as a Limited Liability Partnership with a capital
of Rs. 10,00,000/- with two partners sharing profits in 1:1.
 Preparing a partnership deed and registering the enterprise under LLP Act, 2008. Getting
the enterprise authorized stamp and seal.
 Staffing the enterprise with a marketing team of 2-3 employees, and employing 3 I.T.
professionals to build and operate the website and app. of the enterprise.
 Developing an App. and a website to operate.
 Launching the App. in Bangalore region.

STAGE-2 (duration 1-2 months)

 Creating links and connections with all foreign education consulting institutes in and
around Bangalore.
 Marketing the App. of the business in all schools, university and college campuses in
Bangalore such as Manipal university, Christ (deemed to be university), etc.
 Initiating social media marketing in Bangalore which includes Instagram, Facebook and
YouTube.
 Providing “early-bird” offers to students who are in their final year of school or college
education.

STAGE-3 (duration 3-4 months)

 Transforming the enterprise from LLP to a Private ltd. Company by taking government
permission and making necessary arrangements and changes in the Article of Association
of the enterprise.
 For raising further funds to enter the National market (i.e. by through IPO). Issuing
50,000 equity shares at Rs. 100/- in the stock market.
 Increasing workforce and developing separate departments such as Marketing, HR, IT,
and Finance.

65
  Expanding the connections to all major states of India which includes Punjab, Delhi,
Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh and Kerala.
 Marketing the App. at the National Level through social media platforms, newspaper
advertisements in major cities, and direct school and university campuses advertisement.

STAGE-4 (life-long)
 Establishing proper regulations and revising the already established contracts with the
major foreign education consultancy institutes all over India.
 Opting for aggressive advertising and marketing policies.
 Issuing more shares or raising unsecured bank loans from HDFC and Yes banks in case
of more fund requirement.
 Increasing the number of connections and links all over India.

7. CONCLUSION

66
The business sector which is being selected, is till now, have not been tapped by anyone except a
few but still not in depth. Therefore, there resides a great opportunity for our business to burgeon
and develop rapidly in no time. There are some obstacles for the business such as persuading the
public i.e. students to apply through our website for their further education abroad, however,
there is no business if there are no obstacles to overcome. Besides the few obstacles there are a
ton of advantages for the business to extract in this sector which includes the growing trend of
studying abroad and acquiring better education from best colleges or universities around the
world.

This form of business, in order to become successful and profitable, requires heavy and
aggressive advertisement strategies in its initial stage, specifically. In the later stages as well,
advertisement plays a crucial role in maintaining and burgeoning the business operations and in
order to keep persuading, thus, expanding the customer base.

The enterprise will be established, at first, in the form of Limited Liability Partnership as per the
LLP Act 2008, section 12(1). This is because it is easier to start a business as a partnership
startup due to a smaller number of employees and also less requirement of capital funding
needed in early phase of business operations and activities and with time transform it into a Joint
Stock Company as per the Company Act 2013. This will not only make sure that the available
business resources are put to use in an efficient and effective manner but also the growth of the
business gains proper momentum before entering the stock exchange market and becoming a
IPO company.

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8. BIBLOGRAPHY

 Khanna L. (Oct 30, 2018), The Challenges of Business Consulting. Hindustan Times.
Retrieved from https://www.hindustantimes.com
 Dea A. L. (Oct 11, 2018), 6 Challenges of Working in Consulting. Retrieved from
http://mbaschooled.com
 The Room 241 Team (Jan 11, 2013), What are the Benefits of Working for an
Educational Consulting Firm. Retrieved from https://education.cu-portland.edu
 Tripathy A. (Jan 27, 2018), the future of American jobs lies with the Tech industry. The
Tech Crunch. Retrieved from https://techcrunch.com
 Mazur L. (Sept 04, 2018), Student Services Consulting Firm. Retrieved from
https://www.referenceforbusiness.com
 Overseas Students & Consulting Services. Retrieved from
http://www.overseasstudentsconsulting.com

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