Of

THE BRIGHT FUTURE SCHOOL

SUBMITTED TO:

Mr. YASIR Ali
SUBMITTED BY: ZAIDYAZDANI NADIA IKRAM RABIA NAJAF RABIA RAFIQUE SADAF SHAZADI WAQAS ALI
MBA 4th Semester

DEPARTMENT OF BUSINESS ADMINISTRATION

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In the Name of ALLAH, The Most Gracious, The Most Merciful Who is the most Beneficent and most Merciful, Who guides us in the darkness and helps In difficulties, without this help one can never achieve destination. All respects are for His “HOLY PROPHET HAZRAT MUHAMMAD (P.B.U.H)” Who enlighten out the minds to recognize our creature.

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Acknowledgment
Don’t believe what your eyes are telling you. All they show is limitation. Look with your understanding, Find out what you already know, And you’ll see the way to fly. (Richard Bach) First of all I would like to say Thanks to almighty ALLAH (Creator of All), who is most merciful, most beneficent & benevolent. He blessed me abilities to accomplish this task successfully. I would like to say special thanks to my teacher YASIR ALI who always provided me all of those facilities, which I need; thanks to their whole support for me. Who taught me that how to evaluate the darker side of mirror with deep insight look at brighter side & the rules of research. This thesis is because of all the efforts which my teacher has made, so that I could able to work hard with great patience & determination.

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TABLE OF CONTENT Sr. No 1 2 3 4 5 6 7 8 9 10 Contents Executive Summary Company Products & Services Business Concept Sector Brief Market & Strategies Marketing & Operations Management & Organizations Financial Section Attraction For Investor References Page No 05 06 06 09 09 19 22 34 42 43

(1) Executive Summary: The Bright Future School has taken a step towards the building of student’s mind to make a bright future. It is located in a highly congested, violence prone area at a considerable distance from the centre of the city. Our School is situated at Satiana Road, Faisalabad. The school will open its activities with strength of 230 students. It consists of two blocks with 17 rooms. In Pakistan, a few institutions have been providing such kind of thinking, so our school will be coming with a new thinking especially in Faisalabad. Our school has been affiliated with Faisalabad board. In our School all the teachers staff must be graduated or Master’s degree holder. Special lectures have been arranged for the students that help in the character building of

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students. We are coming in Faisalabad with a new thinking and by taking a great innovation in the field of Education. We believe that a day will come when each student must be able to select its own future according to its own desire. Our school is also providing lab facilities so that no student would face any difficulty in their respective subjects. The school is trying to provide every kind of modern facility especially for little kids. We hope that in coming years we will be in a position to expand our school network and in providing the latest technology to meet the modern challenges.

The Bright Future School.
(2) School Services: Our school is providing the services of quality and research based education to the student of area of Satiana road and nearly areas. We are running school, and our school business is not complicated like other businesses that have provide a lot of services. So our key service is education that we are providing our students. (3) Business Concept: The Bright Future School is situated on Satiana road. It comprises on one kanal area.

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We introduced this type of school system for the students to understand about their future. The majority of the students don’t know about their future, about their aim in life, for which purpose they comes to school. This is the main problem for student that is they don’t know what they want to become After complete their education due to lack of awareness. The purpose of our school is to Provide proper Guideline, our school provides a path a bridge to their future journey.

Our Vision The best choice…the best results Our Mission The mission of The Bright Future School is to guarantee the superior preparation and Performance of every child in school and in life Our Goals Our School will provide quality, universal early childhood educational opportunities. To All three and four-year olds as measured by numbers of children served and a Research-based kindergarten readiness assessment. Our School will recruit, prepare and support effective teachers and leaders as

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measured by the number of qualified professionals entering the profession. Demonstrated Mastery of skills and competencies, and improved student performance. We provide quality education through following means:

1 2 3 4 5 6 7

Awareness Direction Motivation Set a Base Build Confident Proper Guidance Environment

Business Revenue Model: Income: Classes Nursery to prep 1 to 5 6 to 8 9 to 10 Net fee Per month fee 700 900 1,200 1,500 No. of students 30 100 60 40 Total Fee 21,000 90,000 72,000 60,000 243,000

Total Fee Add: Other income Total Income

243,000 7,000 250,000

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Expenses: Staff Salary Building Rent Utilities Bills Misc. Expense Total Expense Total profit Threats 1 2 Survive Competition 160,000 50,000 15,000 1,500 -------------

230,000 20,000

(4) Sector Brief: The Education industry is only one sector in Pakistan, who progress day by day because the increase in growth rate of population of Pakistan. Every person wants to educate his children. In one survey of 2009 Pakistan has 69 universities and in 2010 Pakistan has 86 universities. This is the great example of growing education sector in Pakistan. This sector also play a great role in GDP of Pakistan and its contribution is 1.07% which was increase from 0.85%. It is very helpful for investor to invest in this sector to earn high profit this sector plays a vital role in the development of Pakistan as well as in Faisalabad this sector is also developed day by day.

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(5) Market and Strategy:
1. Competitor Analysis:

After deeply study the competitors which are following: • • • • • •

Dar-e-Arqam school(peoples colony) Kingston school system(peoples colony) Chanar school system(peoples colony) Punjab school system(peoples colony) Umar school(peoples colony) Faisalabad cadet school(peoples colony) Paragon public high school(Mohammad abad Satiana road) City cadet school(peoples colony)

We‘ve come out with the following results:

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Description

Dar-eArqam school 1990 Islamic revolution Overall Faisalabad

Kingston school system

Paragon public high school 2007 Well planned courses

Punjab school system 2007

Chanar school +system 1998

Umar school

Faisalaba d cadit school 2004

City cadit school 2003 Qualit y edu.

Formation New thinking Target Areas

2008 Good level education People colony,D block,Muhammad abad,garden Colony

1988

Research Quality based education Satiana road, D block and people colony 550

Free Quality education education

Mohammad People abad, colony, people D block colony,Dblock 325 Faisalabad board 200 Fsd board

People Faisalabad Fsd colony, D area block

Strength Affiliation

100000 1-4 oxford 5-10 Fsd board

300 Faisalabad board

350

250 Fsd board

200 Fsd board

Faisalabad 1-4 board oxford 5-10 Fsd board

Fee schedule

1500-2000

500-600

1-5=700 6-8=800 9-10=900

400

500

400-500

1800

1500

Avg. No. of students in one class Branches Teaching staff Qualification of teaching staff No. of teaching staff Area of school Supplier

20-25

20-25

30-35

15-25

30-35

20-25

30

25

20 70%females 30% males Masters and Graduate 15

2 All females

2 1-5 females 6-10 males

1 Males& females Masters &gradua tes 10

2 Males& Females FA and Bsc 16

1 All females graduates

6 Males and females Masters

4 Males & femal es Maste rs 13

Masters and Graduate 14

Graduate

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12

16

20 Marla No specific Akram uniform& Zia book,Dground

13 Marla Anum garments10

20 Marla 15 Marla Al gazal & local market Al gazal& Local market

15 Marla Local market

25 Marla Local market

20 Marla Local marke t

Strengths and weaknesses for different schools SCHOOL NAME Dar-e-Arqam School education to students. b) Good school spirit/Community support. c) Establishing workshops. d) Providing extra co- curriculum activities. e) District reputation. a) Highly qualified staff. Kingston School system b) Special support for Kids c) Support staff programmers. programmers b)No classroom library c)Curriculum activities are less b) Lower pay for teachers. c) Less time for recess and lunch. d) Teacher to student ratio is very high. e) Strict scheduling for female teachers. a)little or no funds for different STRENGTHS a) Providing special Islamic WEAKNESSES a) Limited technology.

d) Enrichment programmers. d)Strict scheduling e)New established e) Place for students to go sledding. a) Best opportunities for Paragon Public High school students b) Jumpstart to literacy c) Positive school board d) Maintaining art and b)No play ground for students c)Expectation of teaching staff are not clear d)Unilateral decision making a)Class sizes are very limited

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curriculum activities in students a)Staff is highly qualified Punjab School System b)Good communication between teachers and students c)Supportive programmers for needy students d)Good decision making among teaching staff a) Jump start to literacy Chanar School System b) Field trips to a variety of places. c)Common planning time d)Open communication between teachers and students e)Discipline is a big issue

e)Need art room

a)No. of staff is very limited b)No planning for the future c)Strict adherence to personnel policies d)Children do not participate in special programmers e)Limited technology f)No computer lab a)Unsupportive community b)Teachers are not able to extend their programmers for advanced students c)Teaching staff is not highly qualified d)Lower pay for teachers

here a)Fee schedule is in hands of a)Need more cohesiveness among Umar School System a parents b)Best opportunities for students c)Test scores are improving staff b)No planning for the future c)Lack of respect among staff and administration

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d)A desire to improve a)District’s reputation Faisalabad Cadet School b)Supports programs for students are well programmed c)Positive school board d)Behavior coaches e)Jumpstart to literacy f)Class size conducive to effective institution a)Maintaining art and City Cadet School curriculum activities in students b)Support staff and programs c)Reputation is very high d)Community connections are well supported

d)No special programs for students a)Need more general supportive staff b)Lack of wrap around approach with external school resources c)Unilateral decision making d)Lack of advanced technology

a) Teacher to student ratio is very high. b)lower pays for teachers

These schools are our competitors on the basis of providing quality education and researched based education because most of the schools provide quality and research based education to the students. Customer Analysis: After the study of these schools we analyze that customers considers the following factors:

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• • • • • • • • • • •

Easily accessible location, Comfortable environment, Fee situation, Quality of education, Computer labs Practical work Security Qualified & experienced faculty Attitude toward future career Ethical concerns Co curricular and extra curricular activities

So after the study of customer analysis we are hoping to provide these all types of facilities to the students.

Supplier Analysis: After visiting the supplier analysis of our competitors we conclude that the bargaining power of supplier is very low.

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• • • • •

Stationery Uniform Furniture Computers Utilities

These are all available from the market easily and there is no specific supplier provide these items to different schools which are our under study. So we have to face less bargaining power of supplier to enter in the market. But some specific suppliers provide uniform and books to some specific schools like Al ghazal garments provide uniform to Punjab school system and Chanar School but these schools purchase books from local market and there is no specific supplier who provides books and uniform to other schools and these are all available on the above table.

MARKET OPPORTUNITY ANALYSIS: There is an opportunity to grow in the market because we are entering with a new thinking. • • • • We can offer surrounding town’s access to our programmers and facilities. Elect students who support public education. Increase our branches in different cities. Clubs for non-athletic students.

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• • • • •

Starts carrier service for students. Technology improvements. To create ability in students to express their ideas. Differentiated teaching programs. We can provide a pick and drop service.

Threats: • • • • • • • Under valuing education. Teacher’s retention against competitive salaries. Taxpayers association. Board rules and regulations. Global changes. Funding for education. Family responsibilities of staff.

BUSINESS STRATEGY: Our business is following a differentiation strategy because we are providing services by taking new thinking and innovation. We are providing services of: Student’s mind building so that he must choose his occupation according to his own choice • Extra curriculum activities

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• • • • •

Modern techniques of education Different workshops of students Hiring educated faculty Organizing seminars on different projects Brief review on Islamic history

Strategies at functional level: Marketing Strategy: we’ll market our school in the following ways. 1. Print media 2. Electronic media Print media: Postures Banners Newspapers Pamphlets Electronic media: FM Cable Finance strategy:

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To get fees from students is a big source of our finance. We can also generate finance through canteen. HR Strategy: We build a proper HR department which will recruit, select, and train the staff for a successful organization HR department must be necessary. Our strategy to grow and compete in the market is product differentiation not the cost minimization because we provide better and quality education and provides a platform to the students to choose their field of life in the early stage of school.

Porter’s five forces model

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Rivalry of competitors: After studying a brief data about our competitors, we come to know that there is a strong competition if we enter into market. As we are coming with a new invention so we must try to compete and complete our vision. Bargaining power of suppliers: Bargaining power of supplier is very less because everyone is purchasing in local market. There is no specific supplier that providing their necessities. So if we want to purchase anything we can get it easily in local market without any difficulty. Bargaining power of customer: Bargaining power of customer is very high because everyone is coming in market with different inventions. So if we enter into market we can face a lot of problems in attracting customers. We must adopt a comprehensive policy in order to eliminate the problem of customer bargaining. Threat of substitutes: We face the threats of substitutes like, • • • Government schools Madras as Other private schools.

Threat of new entrance:

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We face the threat of new schools just like other schools are facing the threat of new entrance of school in the market. After our study we analyze that there is no entrance of school in the market except our school. So, if any school enter in the market then we face like other schools face. Key success factors: • • • • • • • Price competitiveness Quality of education Class environment Customer loyalty Easily accessible location Better management Advertisement

(6) Marketing and Operations: Private school is a business just like other business and must compete not only with Other private schools but with public schools that offer their services for free. A solid marketing plan is essential for success. The marketing and operation in our business of school is not multiphase and complex. We have a simple product which is education and the education does not need any complicated process just like production process in industry. Our qualified and educated staff is a channel of distribution for our school.

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VALUE CHAIN ANALYSIS: We divide the chain into 3 categories for flourisher operation of our school to make sure the quantity of education as well as the mind grooming and mind building of our school. All of our department work like a team to achieve the goals of our school. 1 2 3 Primary education department Middle education department High education department

Primary Education Department: It is a very initial stage not only for school which is newly entered in the market and also for students. The base of the students become in the stage. It is also a very difficult stage for teachers to satisfy and students as well as their parents that our school to provide the quality of education and our school place from where children take a direction to their future profession. This department will work in team work with other department to achieve the objectives. This department also works to retain the students for long period. This department also plays a vital role to organize the functions for children like debates etc. Middle Education Department: In our school this is the actual initial stage for any student of our school on which the student decides the right path which is helpful for the future. The marketing campaign of every successful school comprises of their superior metric result which attract the student and their parents to become the student of that school. This department also organizes the extra curricular and co curricular activities for the students of middle education students.

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High Education Department: This department deals the students in class 9 to 10 and this department plays a role of bridge for our students to their career building. This department trying to improve knowledge and hidden skills of our student to achieve their target in the shape of showing good result in metric and enhance their knowledge to choose their relevant field study in future. This department also organizes the workshop for the students especially for science students and also organizes the functions of annual ceremony for prize distribution. Our education departments collaborate each other for student’s future to improve their confidence level and specific future study. How much we provide such a brilliant students. It is the positive sign for the growth of our school. We use print media and electronic media for the marketing of our school. And we use different ways in print media like; • • • Pamphlet Newspapers Broachers etc.

And in electronic media we use • • Local cable TV FM etc.

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(7) Management and Organization: HIERARCHY OF SCHOOL Principal

Primary (7 teachers)

Middle (3 teachers)

High (3 teachers)

1 from Primary dept.

1 from middle dept.

2 from high dept.

Adim. Dept.

Accountant/Computer Lab incharge.

Practical lab ass./controller examination

Sweeper/ Office boy

Security guard

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Who reports whom?

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25 Principal

Principal
Administration (4 teachers) Middle Department (1 from this dept.) High Department (2 from this dept.)

Primary Department. (1 from this dept.)

Nursery Class

Six Class

Nine class

Prep Class

Seven class

Ten class

One Class

Eight class

Two Class

Three Class

Four class

Five Class

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Principal

Administration

Sweeper & security guard

Accountant & Lab incharg

All the operations of school are managed by the administration department and 1 person is include from primary section and 1 person is include from middle section and 2 persons are include from high section of education. This department all the jobs like; Here in this department one of them is leader and others are subordinates of him. But all the fee are collected by the accountant and all the payments of teachers are made by the accountant also. Job Analysis: The opportunity of job is produced by the principal of the school and set the salary of the teachers. 1. Job description: • Job prerequisites:

For primary section: • • • • Must be graduate 1 year experienced required Must work full time Must work outside and inside the school 27

• • • •

Must read and understand English Must supply job related references Must be 18 years of age Must have valid degrees

For middle and higher section: • • • • • • • Must be B.A, B.Sc. and M. Sc. etc. 2 year experienced required Must work full time Must work outside and inside the school Must read and understand English Must supply job related references Must have valid degrees

The result of analysis was used to generate an organized listing of all the job requirements. 2 Job specifications: It may includes some points required by job • • • • • • • Follow established rules and procedures To be held accountable for daily and weakly results Work in a frequently changing environment Focus on making decisions quickly Do the work yourself Follow clearly specified plans Be paid a fixed salary

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• • • • • • • •

Work on problems related to people Work on many short term projects or assignments Work within clear lines of authority Work on flexible schedule Give direction and guidance to others Work behind the scenes Produce better results of his class Work mostly alone

Some points are also to be included in this sections those are as follows • • • • • • Knowledge Skills Abilities Work activities Work environment Work styles

Now we will discuss each point in detail a) Knowledge: It represents assets related to knowledge in work related areas of education. The following list shows some points related about knowledge. • • • Knowledge of all the rules and regulations of school Complete information about his subject Knowledge of laws and legal codes of school

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• b) • • • • • • c) • • • • •

Knowledge of the whole educational system Skills: Must have good communication skills Must have good decision making ability Ability to read comprehension Ability to identifying complex problems Actively looking for ways to help people Managing one’s own time and time of others Abilities: Ability to make fast simple repeated movements of fingers during lecture to attract students Complete hold on oral expressions Ability to combine pieces of information to form general rules Ability to tell the direction from which a sound originated Ability to concentrate on a task over a period of time without being distracted

d) • • • • e) •

Work activities: Observing, receiving and obtaining information from all relevant sources To check papers on time To fulfill all the requirements about the students Handling complaints, settling disputes among the students Work environment: To provide good thinking and information to the students

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• • • • f) • • • • •

To fully cooperate with students To guide students in all fields To provide extra information about the history of Islam To communicate in English with students Work styles: Self control during lecture Accept criticism and behave calmly Being open to change and to considerable variety in the class Being reliable, responsible and dependable during lecture Persistence in the facts of obstacles

3) Job objectives: • • • • To make our school fully progressive To see the future of students bright and vivid To get better results for the school management and its society To produce better output by strong management and through better rules and regulations.

We have two types of teachers. 1. Teaching and also perform admin activity 2. Simple teaching Administration Administration department include 1 person from primary section and 1 person is include from middle section and 2 persons are include from high section. Duties of school Staff.

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In our school there are different people in different level and also provide different duties. We also discuss one by one 1) Duties of principal a) All the board activities like registration, rules and regulation are handled by b) Principal. c) All the tax relevant activities perform by the principal d) To fixed the salary of teacher. e) General problems are handled by the principal f) To solve the problem of admin, lab assistant and accountant 2) Duties of administration. a) To hire the teacher, and conduct the interview b) To set the date sheet c) To set the time table d) To set the papers e) To fix the fees of the students f) To hear the problem of sweeper and guard g) To conduct the staff training program. 3) Duties of Accountant. a) To handle the computer lab b) Maintain the record of students. c) Maintain the record of teachers. d) Collect the fees of students. e) Prepare the salary of teachers and other staff. f) Collect the fine of students. 32

g) Present report to principal about all things. h) To provide the hard copy of date sheet and papers 4) Duties of Lab assistance a) To control the lab b) .All the stationary maintain, purchase and provide c) To purchase the books from market d) Sell the books to students e) To report principal about all things 5) Duties of Sweeper a) To sweep the school early in morning b) Work for office boy like tea and water from outside the school c) And report to administration. d) Any extra activity like help in wear and tear, electric problem etc 6) Duties of guard a) To open the school early in the morning b) Co-operate with students c) Security provide to school d) Good behave with student, parents of students, teacher and outsiders e) Give report to administration. Data Flow Diagrams of “Bright Future School” A data-flow diagram (DFD) is a graphical representation of the "flow" of data through an information system. DFD’s can also be used for the visualization of data processing (structured design).Here we draw some DFD’s of our school. These can be presented as follows: • Salary 33

• • •

Information Job opportunity Timetable and other schedules etc.

(a) Salary:

(b) Information: Any information likes to manage the date function of prize distribution etc.

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(c) Job Opportunity: Every job opportunity is produced by the principal and then administration made test and interview and then selects the right person for right job.

(d) Timetable and Date sheets: The DFD of date sheets and time table is just like the process of information.

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Time table &Date sheets are made by the admin department

Passed by the principal

Discuss in the group of administrative people

Implement in the school

(e)Examination Procedure.

Examination papers are prepared by the relevant teachers.

Papers are passed to the admin dept. and they discuss on paper.

Papers are sent to accountant for printing.

After that examination are held as per schedule.

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POSITIONS
Administrative staff Principal Accountant Practical Lab incharge Faculty members Primary teachers Middle teachers High teachers Maintenance staff Guards Sweeper/Boy office Total :

NUMBER

SALARY/ MONTH
(Rs.) 20,000 10,000 6,000

TOTALSALARY/ YEAR
(Rs.) 240,000 120,000 72,000

1 1 1

7 3 3

7,000 10,000 120,00

688,000 360,000 432,000

1 1 18

5,000 4,000 74,000

60,000 48,000 1,920,000

(8) Financial Section:

TABLE - HUMAN RESOURCE:

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TABLE – IT EQUIPMENT: IT Equipment Computers-Office ComputersLaboratory Networking cost Printer Total: Quantity 2 8 Lump Sum 2 Unit Cost 10,000 8,000 5,000 2,000 Amount (Rs.) 20,000 64,000 5,000 4,000 93,000

TABLE – FURNITURE & FIXTURES:

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Principal’s Office Table and chair Additional chairs Computer Small Table Staffroom Computer table Chairs Small Table Nursery & Prep Class Tables Chairs Primary & Middle Section Student desks Student chairs High Section Student desks Student Chairs Classroom Cupboard & Whiteboard Teacher Table and chair Computer Laboratory Computer Long Tables Computer Chairs Cupboard & Whiteboard Science Laboratory Long tables Cupboard & Whiteboard Total furniture and fixtures

Quantity

Unit Cost

Amount (Rs.)

1 7 1 1 1 9 1

10,000 2,000 10,000 1,000 3,000 2,000 1,000

10,000 14,000 10,000 1,000 3,000 18,000 1,000

12 36 64 192 16 48 12 12

500 500 700 1,000 1,000 1,000 2,200 2,500

6,000 18,000 44,800 192,000 16,000 48,000 26,400 30,000

2 8 8 1

------10,000 1,500 2,200

10,000 80,000 12,000 2,200

4 1

10,000 2,200 39

40,000 2,200 584,600

TABLE – OFFICE & SCHOOL EQUIPMENT: Office/School Equipment Air Conditioner Ceiling fan Energy saver Science lab equipment Generator-10kVA Water tank and electric motor Water colors Telephone/facsimile Wall clock Security equipment: Metal detector+projector Total : Quantity 1 30 60 Lump sum 1 1 2 2 6 100,000 30,000 20,000 5,000 400 Unit Cost 28,000 2,000 120 Amount (Rs.) 28,000 60,000 7,200 150,000 100,000 30,000 40,000 10,000 2,400

1+1

3,500+5000

8,500 440,100

TABLE – AREA REQUIREMENT: 40

Space Requirements Administrative Block Principal’s office Staff office Lobby Store room Toilet Nursery, Prep & Primary Section Nursery, Prep Classrooms Primary Classrooms Toilet Middle & High Section Classrooms Staffroom Toilet Science Laboratory Computer Laboratory Space for corridor & stairs Total Covered Area Playground

Area/Room (Sq. ft) 154 162.4 36 107.88 47.4 238 280 41

No. of Rooms

Total Area (Sq. ft)

1 1 1 1 1 2 5 6

154 162.4 36 107.88 47.4 476 1400 246

280 125 45 242.4 246.4 -------

5 1 1 1 1 ------

1400 125 45 242.2 246.4 1400 6088.28

-------

------

636

TABLE – FINANCIAL ANALYSIS:

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Initial Investment st Capital Investment:ment: Office school equipment Furniture & Fixtures Computer & Equipment Prepaid rent Total Capital Cost Working Capital: Building Rent Cash Total Investment

Amount Rs. in actual 440,100 584,600 93,000 500,000 1,112,700 Rs. in actual 300,000 1,625,700 3,038,400

TABLE – FEE INCOME SCHEDULE: (Year – 1)
Fee Per student No. of students New Old Total student Non-Operating revenue Security(Refund able) Registration fee Admission fee Total: Operating revenue Yearly Fee Nursery to prep 1 to 5 6 to 8 9 to 10 Net fee 700 900 1,200 1,500 30 100 60 40 252,000 1,080,000 864,000 720,000 2,916,000 800 1,000 1,300 1,600 60 140 80 60 576,000 1,680,000 1,248,000 1,152,000 4,656,000 900 1,100 1,400 1,700 100 180 120 100 1,080,000 2,376,000 2,016,000 1,800,000 7,512,000 230 230 130 210 340 180 320 500 No. Rupees Fee Per student

(Year – 2)
No. Rupees

(Year -3)
Fee Per student No. Rupees

1,000 1,500 3,000

230,000 345,000 690,000 1,265,000

1,000 1,500 3,000

130,000 195,000 390,000 715,000

1,000 1,500 3,000

180,000 270,000 540,000 990,000

TABLE – ESTIMATED EXPENSE: 42

Particulars Salary & allowance principal Faculty member Primary teachers Middle teachers High teachers Admin staff Accountant Practical Lab. Assistant Maintenance Staff Sweeper/Office Boy Security Guard Total:

Year-1 No Monthly Total for the year 1 7 3 3 20,000 7,000 10,000 12,000 240,000 588,000 360,000 432,000

No

Year-2 Monthly Total for the year 21,000 7,350 10,500 12,600 252,000 705,600 504,000 453,600

Year-3 No Monthly Total for the year 1 9 5 5 22,050 7,700 11,000 13,250 264,600 831,600 660,000 795,000

1 7 4 3

1 1

10,000 6,000

120,000 72,000

1 1

10,500 6,300

126,000 70,600

1 1

11,000 6,600

132,000 79,200

1 1 18

4,000 5,000

48,000 60,000

1 1

4,200 5,250

50,400 63,000

1 1

4,400 5,500

52,800 66,000 2,881,200

1,920,000 19

2,142,000 24

PROJECTED INCOME STATEMENT:

Income Statement Revenue Salary Gross Profit General administration & selling expenses Building rental expense Utilities - elect, gas, telephone

Year-1 4,181,000 1,920,000 2,261,000

Year-2 5,371,000 2,142,000 3,229,000

Year-3 8,502,000 2,881,200 5,620,800

600,000 200,000

600,000 220,000

600,000 240,000

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Diesel Expense Internet expense Science & Computer lab expenses News Paper Exp. Advertisement Stationery Exp. Depreciation Exp. School events & programmers Misc. Office expense Total Admin Expenses Operating Income/Loss Other Income Net Earnings BALANCE SHEET: Particulars Assets Current Assets: Cash & Bank Pre-Paid Building Rent Total Current Assets Net Fixed Assets: Furniture & Fixtures Office Equipment Total Fixed Assets Total Assets Liabilities & Shareholder’s Equity; Current Liabilities Accounts Payable Total Current Liabilities Net profit Total Equity Total capital & Liabilities

20,000 25,000 10,000 8,000 50,000 30,000 58,460 50,000 20,000 1,071,460 1,189,540 30,000 1,219,540

22,000 27,000 12,000 8,500 40,000 35,000 52,614 60,000 25,000 1,102,114 2,126,886 35,000 2,161,886

24,000 30,000 15,000 9,000 30,000 40,000 47,352 70,000 30,000 1,135,352 4,485,448 50,000 4,535,448

Year-1 2,297,700 500,000 2,797,700 526,140 435,100 961,240 3,758,940

Year-2 3,190,640 ----3,190,640 518,526 450,000 968,526 4,159,166

Year-3 5,531,320 ----5,531,320 538,673 475,000 1,013,673 6.544,993

----1,219,540 2,539,400 3,758,940 2,161,886 1,997,280 4.159.166 4,535,448 2,009,545 6.544,993

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CASH FLOW STATEMENT: Particulars Operating Activities: Net Profit Add: Depreciation Expense Cash Provided by Operations Financing Activities: Cash provided by financing activities Investing activities: Capital Expenditure Cash Provided by investing activities Net cash (9) Attraction For Investor: Return on investment (ROI) First year Net income / Total assets 1219540 / 3758940 = 0.33 33 % Second year Net income / Total assets 2161886 / 4159866 = 0.52 52 % Third Year Net income / Total assets 4535448 / 6544993 = 0.69 69 % Total asset turnover (TAT) First year Net sale / Total asset 4181000 / 3758940 = 1.11 Year-1 1,219,540 58,460 1,278,000 -----1,019,700 -----2,297,700 Year-2 2,161,886 52,614 2,214,500 -----976,140 3,190,640 Year-3 4,535,448 47,352 4,582,800 -----948,520 5,531,320

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Second year Net sale / Total asset 5371000 / 4159866 = 1.29 Third Year Net sale / total asset 8502000 / 6544993 = 1.30 Payback period (PBP) Initial investment = 3,038,400 Net cash flow in 1st year = 2,297,700 Net cash flow in 2nd year=3,190,640 Net cash flow in 3rd year=5,531,320 A+ (B-C)/D= 1+ (3038400-2, 297,700)/3,190,640= 1.23 year As our business results shows that we make the initial investment of Rs.3, 038,400 and our cash inflow in the first year is 2,297,700 and in 2nd year is 3,190,640. It shows that our initial investment will cover with in 2nd year. So our business pay back period is less then two years. Attraction for Investors. School Business has a lot of opportunities to grow and earn huge profit because the demand for education industry product increase day by day and the less chances of failure of business. With the present era peoples are liking to invest more then ever before. With the rise of education industry demand. More, there is no need of huge amount of capital to start this business. Education business gives Maximum output from the least inputs. The financial results showing that there is huge profit margin in this business and create more investor attraction

Purposed offerings. 46

This business can be started on Musharikah bases considering the Islamic mode of financing. In Musharikah both parties invest their resources and efforts and share the profit and loss in agreed ratio or according to the amount of investment. If investor wants to invest in our school then he can share the profit and loss with the margin of his investment. REFERENCE: • • • • • Sir Qamar Waince School Principal’s Internet Friends Group coordination

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