Business Plan Sample

BUSINESS PLAN
For a start-up company
The Learning Experience Limited
The Learning
Experience
30-08-2010
Jeroen van Laar
Bandari Street
Tabata
P.O. Box 105237
Dar es Salaam
Tanzania
Tel. : +255 (0)763 051 060

E-mail : Jeroen.58@gmail.com
BiD Network – Business Plan format 2009
FOR A START UP COMPANY
CONTENTS
0. Executive Summary ........................................................................................... 2
1. THE BUSINESS ................................................................................................. 3
2. THE FINANCIAL PLAN ........................................................................................ 9
3. THE DEVELOPMENT IMPACT ..............................................................................10
Confidential & Copyrights © 2009 – Request permission to share or copy from the author 1
0. EXECUTIVE SUMMARY
Give an executive summary of your business plan.
The Learning Experience is a training centre for computer and business courses. Tanzania
has a growing economy and especially Dar es Salaam is expanding fast. There is a large
and still growing demand for all kinds of education.
Our training centre will provide those courses that are needed in the market and doing so
will focus on job and business oriented training. It will provide necessary practical
training and set up a program with small businesses to ensure on the job experience for
our students.
Standard price for a course will be $ 26 at which price the break even point will be
reached at 100 sold courses per month. With an intended 4 classrooms, situated in a
residential house at an easy accessible location and a small group of dedicated teachers
and staff we expect to reach that point at the end of the first quarter.
Our customers will be secondary school students, small business entrepreneurs, school
leavers and other job seekers. Between the many competitors our centre will stand out
by offering practical experience in cooperation with business partners.
Our management team is:

Jeroen van Laar, shareholder, director and teacher of accounting courses. Jeroen is a
qualified administrator and has experience in starting a business in Tanzania.
Winni John Shoo, shareholder. Winni will be a management trainee, she will start her
career in reception and marketing. She has experience in running small businesses in Dar
es Salaam.
Johan Brummelman, a qualified teacher (Pedagogic Academy, Netherlands). Johan has
experience in project management and in working with lesser able persons, coaching
them towards a job.
Stephen Paul Chambo, a qualified teacher in Tanzania. Stephen has additional training in
Waldorf Education and has experience in project management working with young
Tanzanians.
To start this business a capital of $ 35.000 is needed, $ 13.250 for fixed assets and $
21.750 for start up and running costs. Of this amount $ 25.000 is being invested by the
management team. An additional $ 10.000 is still required.
1. THE BUSINESS
1.1 Business model and value proposition
Give a short description of the business model of the company – how will you make
money?
The Learning Experience is a training centre. It will provide courses and training. The
centre will be located in a residential house in one of the more populated and accessible
area‟s of Dar es Salaam (Ubungo or Morocco/Victoria). 4 rooms will be used as
classrooms. At start up 2 rooms will be used, each quarter one will be added. Standard
price for a standard course will be $26 (40.000 Tsh). A standard course will consist of 10
sessions of 2 hrs. Break even point, according the data in this plan, lies at 100 sold
courses a month.
In the chosen setting, monthly costs at around $ 2600 are realistic, with little possibility
to reduce them. At the same time an increase of students and courses increases the
monthly costs only marginally. Profit will be made from 100 sold courses a month and
up. We aim and expect to reach this target at the end of the first quarter.
Our standard courses will provide the bulk of our income. Our newly developed and
custom made courses will put the name The Learning Experience in the market as an
innovative and high quality training centre.
1.2 Product / Service
Introduce your product/service, how it works and why a consumer would buy your
product/service. Describe the value it will create for the customers and the market. Why
is there a need for your product?
Our products are courses and training.

Initially we will set up a program for the standard Microsoft courses. Demand for these
courses is high. There are only very few private secondary schools offering computer
classes. Yet computer skills are required in higher education and in many jobs.
Secondly we will offer the standard accounting packages. Tally and QuickBooks are
widely used by many companies. Demand is high. Many competitors offer these courses
as well, but from our own experience we have seen that offered quality is low. I will be
teaching the accounting courses myself.
Graphics design and web design courses will be offered.
We will develop new products. A Job Seeking training is one. From our own experience
and from what we hear from other entrepreneurs it is very hard to get good personnel.
That starts with the letter and the interview. Despite the obvious need there is very little
training offered in this field.
Another course to develop is a training for small business entrepreneurs. To be self
employed is still the dream of many people. Yet the failure rate of small businesses is
high. Many of the mistakes made are avoidable. Our course will focus on needed skills
and provide training in those skills.
There is a need for advanced training in computer skills. Many employees in small and
medium sized businesses have received basic training, but in their job they experience
challenges that they cannot address alone. Unlike in Europe for example they lack the
network to find answers to their questions. We will set up a help-desk like service to
cater these businesses and NGO‟s experiencing this problem.
1.3 Market structure and analysis
1.3.1 Target market and customer base

Specify your target customers/clients (any concrete names you can already give here
please add!), and why you selected this specific market. Describe the main
characteristics of your (potential) customer base and their demand; if segmented,
describe the different customer segments. Why did you select this group/these groups?
Our target marked is segmented.

School leavers and other job seekers. In Tanzania many young people leave school after
form IV. They have failed their exams and cannot continue to study. After form VI the
same happens again. Many fail to pass with high enough marks to enter university or
other institutes. All these young people enter the job market, hardly prepared and ill-
equipped. There are by far not enough jobs to go around. Our Training Centre will, in
cooperation with small and medium sized enterprises in our neighbourhood, provide and
develop adequate training to serve students and businesses both. We intend to set up
practical experience with those businesses in the form of on the job training.
Small business entrepreneurs. There are many Micro Finance initiatives and many
Saccos, loan and savings cooperatives. They supply short term loans for their customers
and members. Some of them also provide some kind of training. Yet the supply of
training is not enough and not always adequate. We intend to offer a training that is
adequate and we will offer this training to members of Saccos and clients of Micro
Finance businesses. We will set up co operation with those organisations to reach their
clients and members.
Secundary school students. Many use the end of term breaks (a month after each term)
to get extra training, mostly in computer skills, or to do tuition. We will provide the
courses they need.
1.3.2 Market size and potential

Describe the market size (i.e. is it a growing market, is it stable or subject to change,
etc): Name your customers/clients or clients types and estimate the value of orders they
will place and when.
Describe the trends for the target market in a 3-year outlook.
Describe the market potential for your product/service in this target market.
Dar es Salaam is a fast growing city. It is economically booming and demand for all kinds
of education and training is growing and will continue to grow for the coming years. In
2009/2010 the government built many new secondary schools in the country. However
there are not enough teachers, in fact a shortage already existed. Computer skills are
being put on the curriculum. Teachers will have to be trained. Here lies another
opportunity for our centre.
Tanzania has an economic growth (GDP) figure of 6% in 2010 and an expected growth
rate of 7% in 2011. The demand for knowledge and skills will stay high.
1.3.3 Competitor analysis

Describe the structure of your target market.
Who are the main players (competitors, suppliers, other companies, etc) in your target
market? Are there any companies in your target market with a similar product/service?
Are there any companies in your target market with a complementary product/service?
Are these players successful, if so why, and what is their market share? Is the target
market still wide open, or is the entry level high, and why?
There are many competitors. From one-room facilities to fully equipped centres with full
curricula, specialized teachers and lodging facilities. They will be successful in providing
an income to teachers and owners. The larger institutes are successful in numbers of
provided courses. Results in effect of training, quality of training or jobs found are not
available.
The market is wide open. It is very easy to establish another training centre. And it will
be relatively easy to be distinctive and different. Too many centres and teachers copy
others and provide the obvious only.
1.3.4 Competitive advantage

What are the unique selling points of your products/services; how will you deal with risks
of potential competitors; if relevant: how will you protect your product (legally)?
We intend to go beyond the obvious. We will set up a training program in cooperation

with small business owners in order to give our students practical experience, and where
possible will stimulate and coach our students to set up their own businesses. In this way
we intend to build up a network of small businesses, supporting each other and working
close together with the training centre.
The training centre will be a frontrunner in developing new courses, in line with the
policies of the Ministry of Education and institutions like VETA (Vocational Education and
Training Authority).
Copying is widespread, and surely our success will have many followers. They will remain
followers however, were we will remain the innovators. Furthermore core-values such as
integrity, transparency and accountability are internalized in our team and will be an
integral part of our courses and training.
"It is our choices, Harry, that show what we truly are, far more than our abilities." (J.K.
Rowling)
1.4 Marketing and distribution
1.4.1 Marketing & Communication

How will your (potential) customers know about your product? What means (media,
advertisements, other PR tools) will you use to reach your target market?
Our first and main way of advertising will be by handing out flyers at busy places such as
bus stations and schools.
Secondly we expect considerable spin off from mouth to mouth advertising.
Then we will use newspaper adds, periodical adds in one to the journals that are
distributed free in Dar es Salaam, and possibly a radio or television add.
We will make sure, using our networks, that our new and innovative courses get the
attention they deserve. And many of these courses will cater different groups of
students, thus enlarging our market.
Last but not least we intend to create a quarterly „buzz‟ with social projects. Of course
our students will play a role in these projects as wel as staff an management of the
centre.
Where appropriate we will actively adverstise our new courses by visiting Micro Finance
Institutions, Saccos and schools and businesses.
1.4.2 Distribution
Elaborate on the distribution of your product/service. How will you set up your
distribution? Will you make use of (existing) distribution channels/networks?
Does not apply.
1.4.3 Sales
What are your sales targets? How will you achieve them? Which percentage of the total
market will you claim?
Our targets are to have in use 3 classrooms at the end of quarter 3 and 4 classrooms at
the end of quarter 2. We aim at occupancy of 75% to achieve at the end of quarter 1.
Target for average number of students per course is 5.5 to achieve at the end of quarter
1. In this way break even point will be reached at the end of quarter 1.
We will achieve this through monitoring the results of our marketing strategy and apply
more effort to marketing when needed.
With a market so large and open it is difficult to predict how large our market share will
be, or even should be.
1.5 Production process & development
Describe the production process of the product/service. How will you develop the
products / services? What resources do you need and how will you get access to these
resources?
Is there a need for (additional) Research & Development (R&D)? What resources will you
tap for this R&D and how will you finance it? Who will be your R&D suppliers and in what
country are they located? Are there quality standards or requirements for your
product/service or is there any certification involved?
Registration with VETA (Vocational Education and Training Association) is necessary to

provide students with certificates.
We will develop our own courses with our own material. This is a responsibility of our
teachers with support from management.
1.6 The suppliers and raw materials
Elaborate on the supply chain of your product/service. Which suppliers do you rely on to
acquire your resources and do you already have agreements in place with suppliers?
(Any concrete names you can already give here please add!)
Does not apply.
1.7 Company structure & management
1.7.1 Entrepreneur
Introduce yourself, your qualities and the reason why you want to start this business.
Describe what drives you as a person and how others would describe you. Explain what
your ambitions are with your business between now and 3 years from now?
What is your (professional) background and how will you employ this in your new
venture? Do you have experience in your target sector? Please include a track record
with your previous experience indicating your current knowledge and in which way you
have the capability to use this experience to make the business a success?
My name is Jeroen van Laar, born in Amsterdam in 1958.

I have a professional background in administration. In the Netherlands I have worked in
various companies both in production and trade environment. I am qualified in business
administration which I will put to use in my new business. I will be teaching the same
skills in our training centre.
In Tanzania I founded a computer business with two local partners. I have experience
how to set up a business in this country. I have made mistakes which enables me to
avoid making those again. My existing business is currently object of a court case. It is
yet unclear how the case will go. Besides sales and maintenance of computers and
hardware our current business also has a small training centre. It is from this experience
that I have the knowledge how to set up a new centre.
As a person I enjoy to think of new things and to make them happen. Others describe
me sometimes as „preacher‟ or „teacher‟. A nice compliment given to me was from a
colleague trying to pass an economical exam. She said “I studied this subject so many
times and failed each time, but the way you explain it to me I understand it
immediately”.
Also:
 Add the details of at least two professional references, i.e. their name, address,
phone number, email address, etc.
Reference 1:
Winnie Peter Mulder
Director and Coordinator, Peninsula English Medium School
Masaki off Chole, Kahama Rd.
P.O.Box 10147
Dar es Salaam
Tanzania
Tel: +255 22 260 2657
Mobile: +255 754 370 621
Website: www.pems.ac.tz
E-mail: winnie@pems.ac.tz
Reference 2:
Stephen Paul Chambo
Teacher and Internal Coordinator Hekima Waldorf School
P.O.Box 34754
Dar es Salaam
Tanzania
Tel: +255 222 771 854
E-mail: hekimawaldorfschool@gmail.com
 Add your CV as annex
1.7.2 Management team

Indicate the management team that will be running the business and what your role will
be in this. Indicate the necessary skills and knowledge which are needed to make this
venture a success and include profiles of the people who will be responsible for this
success (also if applicable add who has been acquired and which human resources are
still sought after).
Winnifrida John Shoo, owner and partner of Jeroen van Laar. Winni is 29 years old. She
has finished form II. Winni will be working as management trainee, starting in reception
and marketing. She has experience in several jobs and has run her own business. She
has good people skills. She will start a training program to finish her formal education.
Johan Brummelman. Johan has the Dutch nationality, is 52 years old and will join the
company in 2011. Johan has finished Pedagogic Academy in the Netherlands and is a
teacher by profession. Johan has worked with less able people in training and coaching
them in temporary jobs.
Stephen Paul Chambo. Stephen is 32 years old and is a qualified teacher with additional
training in Waldorf Education. He has experience in working in projects with youth.
Stephen will be the managing director of the centre.
1.7.3 Partners and sponsors

Will you work with technical or financial partners? What are their roles, motives, ties and
commitment? Have partners already been selected, if not, how will you select them?
What other stakeholders will be involved in your business?
Are there any shareholders involved? If yes, indicate who they are and what their share
is.
Does not apply.
1.7.4 Legal status

Will your product be commercialised under a new / separate legal entity (e.g. Ltd
Company)? If yes, please specify how and when. Which licenses and/or permits will be
needed, and how will you obtain them?
 If the company (or other legal entity) that will execute this plan already has been
established, please include proof of company registration.
The Learning Experience Limited will be a new legal entity. Registration with BRELA
(Business Registration and Licensing Agency) and VETA (Vocational Educational and
Training Authority) is required. That process starts with the writing of the Memorandum
and Articles of Association by a lawyer. We have already selected a lawyer for this
purpose. After receiving the registration from BRELA, the company can now apply for a
Tax Identification Number, a bank account and the process of receiving a residence and
work permit for foreign investors can be started with TIC (Tanzania Investment Centre).
At the same time the centre can apply for a registration with VETA. These procedures,
although they consume considerable time in visiting and waiting hours, are quite
straightforward and do not consume a lot of time, in a matter of a few weeks the whole
process can be finished. The last step is to receive a business license from the local
municipality. For companies registered with TIC and receiving the Certificate of
Incentives, the process is governed by TIC, thus saving time and trouble.
1.8 Milestones and strategy
Give an overview of the important goals you have set for the new business. What are
these, when are they to be met, how do you plan to reach them and who will be
responsible? Also make clear what has been done so far; so what is the current status of
the business?
The first goal is to reach 100 sold courses per month, to run break even. This should be
possible at the end of the first quarter and is the responsibility of the entrepreneurs,
Jeroen and Winni.
Second is the expansion of the centre to its full capacity. That should be achieved at the
end of the second quarter. It is again the responsibility of Jeroen and Winni.
Then it is very important to develop new courses. Introducing one newly developed
course each quarter seems realistic. Depending on the preferred teacher responsibility
lies with the teacher and the director of the centre. Each new course is to be
accompanied by adequate marketing.
The current status is START UP. Apart from planning and building up of a part of our
network we have not yet started.
1.9 SWOT analysis
Indicate the internal (you, your company and product‟s) strengths and weaknesses. Then
indicate the external (market, consumers, economy, prices, competitors, etc.)
opportunities and threats.
STRENGTHS WEAKNESSES (internal Measures to

risks) counteract the risks
 European background,  Jeroen and Winni have  We will build up a
many things considered limited experience as network of
normal in Europe are entrepreneurs professionals, and
considered new and  … compensate lack of
innovative in Tanzania.  … experience with
 Through Johan and Stephen study and effort.
we have experienced  …
people, in Waldorf  …
education and in mentoring
young people
 …
OPPORTUNITIES THREATS (external risks)

 Open market with  A threat will always be the  The saying here is:
considerable expected difference in culture and a its not what you
growth lack of legal and social know but who you
 The average product quality security in Tanzania know. We will
and level of customer care  … capitalize on our
are not very high, it is a  … contacts and again
challenge to do better than make sure we have
the others a solid network of
 … friends with
influence.
 …
 …
1.10 Price breakdown of your product/service
Please give a short breakdown of the price of your product/service.

e.g. Begin with the sale/ retail price of your product. Then indicate how much of the price
is your margin, transportation costs, labour, raw materials, etc.
At break even capacity the price of one course at $ 26.32 (Tsh. 40.000) breaks down as
follows: Salaries (direct costs) $ 5.75 Overhead costs $ 7.68 Housing $ 6.65 Other costs
$ 1.05 Marketing costs $ 0.94 Depreciation $ 3.30 Interest $ 0.95
Above that capacity costs will grow only marginally and the centre will start to generate
profit.
1.11 Investment Plan
A - Finance needed
- How much capital do still you need to get this business in operation?
- On what exactly will you spend this capital? Specify as much as possible.
Please fill this in, in the following template, in US Dollars.

Fixed assets: Amount (USD)
Furniture classes 3300
Computers 5700
Air conditioning 1640
Copier 1400
Office Furniture 1250
Working capital: Amount (USD)

Rent and housing costs 7000
For Salaries 9460
Registration, start up 3250
Marketing 1000
Other costs 1000
TOTAL INVESTMENT 35000

still NEEDED (USD):
B - How do you plan to acquire this capital? This means describe the possible
sources:
- Own contribution*
- Equity (capital in exchange for a share in your company),**
- Loan(s),
- Grants / subsidies (only fill this in if you can explicitly name organisations/individuals
from which you realistically expect to get (part of) this finance. Please name them
and explain what kind of relation you have with this financier and what has already
been agreed on).
Capital ALREADY invested in the company

Name of Typ of finance USD
organisation/individual
Own contribution*
Equity**
Loan
Other, please specify:
TOTAL INVESTMENT ALREADY DONE:
Capital still needed (the total here has to be the same amount as the total ‘A -
Finance needed’!)
Name of Typ of finance USD
organisation/individual
(if known)
Jeroen and Winni Own contribution* 15000
Johan Brummelman Equity** 10000
Loan 10000
Other, please specify:
TOTAL INVESTMENT STILL NEEDED: 35000
2. THE FINANCIAL PLAN

2.1 Budgeting Sheet
2.2 Fixed Asset Purchases
2.3 Cash Flows
0% VAT applies to educational institutes
2.4 Profit and Loss Statement
2.5 Balance Sheet
2.6 Planning
3. THE DEVELOPMENT IMPACT

Describe the impact (where relevant) of your business on the following points.
Quantify as much as possible and mention both short-term (1-2-3 years) and long-term
(10 years) spin-offs.
3.1 Local economic impact of the business
- Number of direct employees per year (note also how many of these were previously
unemployed or earned and income below the minimum wage).
- Number of indirect jobs created or income increased (e.g. employment spin offs of
your business for suppliers and buyers, distributors, sales)
In the first year we will employ 7 people, one or two of them currently unemployed. The
others will receive an increase in income. Furthermore we plan to set up an employee
benefits program. This however is depending on profit made and on the wishes of the
employees as well.
Indirect jobs: this is difficult to quantify. We will not generate much spin off in the fields
mentioned above. We do hope that through our centre students will find the knowledge
and skills, and the courage, to find their way in life and/or to start their own businesses.
3.2 Local social impact of the business’s products or services
- Increased access to education (knowledge & skills)

- A healthier environment
- Improved quality of living standards (access to food, health, and housing)
(example: mosquito nets, which have a clear positive effect on the health of the
local population).
It goes without saying that our training centre will increase access to education. As far as
environmental impact or social impact (living standards) are concerned, these issues will,
where possible, be integrated in our teaching.
We do intend to define social projects in which our students can participate, as part of a
practical learning experience. This is however not yet worked out or planned at this
moment. These projects can be part of a paid temporary job or part of a volunteer
project, organized by us or by others. One such project I can name, is the launching of a
biodynamic farm at the Hekima Waldorf School in Goba, an rural area adjacent to the
city. The Hekima Waldorf School is one school with which we intend to develop
collaboration. As soon as our company is fully registered we will formalize this
collaboration.
Overall: It should be clear in the business plan where value is added in the developing
country.
Annex:
CV Jeroen van Laar
CURRICULUM VITAE
Personal
Name : Jeroen van Laar

Address : Tabata, Dar es Salaam
Mobile phone : +255 763 051 060
Nationality : Dutch
Place of Birth : Amsterdam
Date of Birth : 21-08-1958
Marital Status : Engaged, two children
Education
1970-1977 : Gymnasium B
1985-1990 : Higher Economic and Administrative Education
1995-1997 : Higher Technological Education in Environmental studies
1995-1999 : SPD Higher Education in Business Administration
1995-2005 : Open University, various courses in Science, Environment and Economy
2001 : Course in Import and Export regulation
Work experience
1986-1988 : Administration and IT at PK Woldijk, an import and export company in

seeds and grains
1991-1995 : Foreman Packing Department at EMI, a CD producing company
1997-2001 : Semecs International, a company producing Printed Circuit Boards,
performed various functions: production, machine maintenance, cost
price calculation, import and export
2002-2006 : Administration at Boley BV, a company producing open fireplaces
2009- : Founder and director of Fursa Ltd. a company in computer hardware,
sales and maintenance, including training center. Based in Dar es Salaam
Various
1979-1980 : Military service

1981-1982 : Traveling in the USA and Central America for a year
1989-1990 : Lived in Moscow for one year as an exchange student
2006-2007 : Traveling in Africa
Languages : Dutch, English, Russian, German and Swahili

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BUSINESS PLAN

For a start-up company

The Learning Experience Limited

Jeroen van Laar

Tel. : +255 (0)763 051 060

Give an executive summary of your business plan.

Our management team is:

1.1 Business model and value proposition

1.2 Product / Service

Our products are courses and training.

1.3 Market structure and analysis

1.3.1 Target market and customer base

Our target marked is segmented.

1.3.2 Market size and potential

1.3.3 Competitor analysis

1.3.4 Competitive advantage

We intend to go beyond the obvious. We will set up a training program in cooperation

1.4 Marketing and distribution

1.4.1 Marketing & Communication

Does not apply.

1.5 Production process & development

Registration with VETA (Vocational Education and Training Association) is necessary to

1.6 The suppliers and raw materials

Does not apply.

1.7 Company structure & management

My name is Jeroen van Laar, born in Amsterdam in 1958.

 Add your CV as annex

1.7.2 Management team

1.7.3 Partners and sponsors

Does not apply.

1.7.4 Legal status

1.8 Milestones and strategy

1.9 SWOT analysis

STRENGTHS WEAKNESSES (internal Measures to

OPPORTUNITIES THREATS (external risks)

1.10 Price breakdown of your product/service

Please give a short breakdown of the price of your product/service.

1.11 Investment Plan

Please fill this in, in the following template, in US Dollars.

Working capital: Amount (USD)

TOTAL INVESTMENT 35000

Capital ALREADY invested in the company

2. THE FINANCIAL PLAN

2.2 Fixed Asset Purchases

2.3 Cash Flows

0% VAT applies to educational institutes

2.4 Profit and Loss Statement

2.5 Balance Sheet

3. THE DEVELOPMENT IMPACT

3.1 Local economic impact of the business

3.2 Local social impact of the business’s products or services

- Increased access to education (knowledge & skills)

CV Jeroen van Laar

Name : Jeroen van Laar

1986-1988 : Administration and IT at PK Woldijk, an import and export company in

1979-1980 : Military service

Languages : Dutch, English, Russian, German and Swahili

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