Jomo Kenyatta University of Agriculture And Technology

Msc(Entrepreneurship)

Hee 3213: Business Planning

Name: Elizabeth Njoki Kung’u

Adm: Hde 313 C007-0703/2024

Business Plan

Tutoring Business

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 Table of Contents
1.0Business Profile......................................................................................................................................1
1.1 Business Overview..........................................................................................................................1
1.2 Director’s Profile.............................................................................................................................1
1.3 Location..........................................................................................................................................1
1.4 Vision..............................................................................................................................................1
1.5 Mission...........................................................................................................................................1
1.6 Motto...............................................................................................................................................1
1.7 Values..............................................................................................................................................1
1.8 Goals & Objectives.........................................................................................................................2
2.0 Business Description.............................................................................................................................3
2.1 The Greats Tutorial Services...........................................................................................................3
2.2 Service Breakdown.........................................................................................................................3
2.3 Management Team..........................................................................................................................3
3.0 Market Research....................................................................................................................................5
3.1 Industry Analysis.............................................................................................................................5
3.2 Customer Segmentation..................................................................................................................5
3.3 Competition Analysis......................................................................................................................5
3.4 SWOT Analysis...............................................................................................................................5
3.5 Competitive Advantage...................................................................................................................6
3.6 Key Performance Indicators............................................................................................................6
3.7 Risk Management...........................................................................................................................6
3.7.1 Potential Risks..............................................................................................................................6
3.7.2 Mitigation Strategies....................................................................................................................6
3.8Marketing Plan.................................................................................................................................7
3.8.1 Value Proposition.........................................................................................................................7
3.8.2 Promotion Strategy.......................................................................................................................7
3.8.3 Pricing..........................................................................................................................................7
4.0 Operations Plans....................................................................................................................................8
4.1 Team................................................................................................................................................8
4.2 Technology......................................................................................................................................8
4.3 Milestones.......................................................................................................................................8
5.0 Financial Plan........................................................................................................................................9

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 5.1 Key Revenue and Costs...................................................................................................................9
5.2 Funding Requirements and Use Of Funds.......................................................................................9
5.3 Key Assumptions............................................................................................................................9
5.4 Financial Projections.....................................................................................................................10
5.4.1 Projected Income Statement.......................................................................................................10
5.4.2 Projected Balance Sheet.............................................................................................................10
5.4.3 Projected Cash Flow Statement..................................................................................................11
6.Conclusion..............................................................................................................................................13
7. Appendices............................................................................................................................................14

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 Executive Summary

The Greats Tutoring Services is a newly established educational initiative situated in the Zaburi
Area of Nakuru, with a mission to provide comprehensive and personalized tutoring solutions
that cater to students across various educational levels. This business is the brainchild of
Elizabeth Njoki Kung’u, an experienced and passionate educator dedicated to fostering academic
excellence and nurturing each student’s unique abilities. The tutoring center addresses the
growing demand for supplementary education by offering a reliable, cost-effective, and high-
quality service designed to meet the specific needs of learners aged 5 to 18. Recognizing the
diverse educational challenges students face today, The Greats Tutoring Services is structured to
provide curriculum-aligned tutoring that supports students in their current studies and prepares
them for future academic success. The inclusion of an interactive digital platform enhances the
learning experience, making it more engaging and effective in helping students achieve their full
potential.

The distinguishing feature of The Greats Tutoring Services is its focus on the educational
process, which is oriented on an individual approach and characterized by students’ special
working speed, learning preferences, and learning abilities. The center provides services in
curriculum-specific tutoring, advanced course tutoring, and language teaching, implying that it is
a perfect match for a wide array of students. For instance, we have children from public and
private schools and even those who are homeschooled, and the center can accommodate all of
them. The tutoring team consists of highly qualified and certified individuals with strong
experience in different fields of education. Incorporating the teaching techniques differentiates
The Greats Tutoring Services as it provides digital tutoring options that become conducive and
convenient to accommodate all learning environments. Further, the conference with a parent-
tutor is also a significant aspect of the service since parents are always informed about their
child's academic accomplishments.

Financially, The Greats Tutoring Services aims to acquire KSh. 600,000 in the form of debt to
finance overheads required at the business's start-up stage. It will be used towards basic costs like
salaries, utilities, commercial space, promotions, and other operating costs, allowing the business
to run effectively as it seeks to gain a footing in the market. The revenue projection reveals that
the company is on the right track to experience gradual growth very soon due to the escalating

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demand for quality tutoring services in the area. The Greats Tutoring Services is well placed for
future growth with plans for expansion as students are added. This expansion will help cement its
position as one of Nakuru's most prominent educational institutions. With professional
leadership, student-centered and innovative learning models, and sound financial strategies and
frameworks in place, The Greats Tutoring Services has the potential to transform students'
academic performance in Nakuru and beyond.

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 1.0 Business Profile
1.1 Business Overview
The Greats Tutorial Services is a newly established, full-service tutoring based in Nakuru Zaburi
Area. The Greats Homeschool will be the most reliable, cost effective and efficient choice for
students in Nakuru and surrounding Areas.

The full-service approach includes a comprehensive array of curriculum choices and tutoring
styles in addition to a digital platform that is interactive for students.

The teaching team comprises of highly qualified and experienced tutors.

1.2 Director’s Profile

The tuition centre is a mastermind of Elizabeth Njoki Kung’u an experienced teacher mentor and
Scholar. Elizabeth is passionate about giving each and every child an opportunity to learn at their
own pace and style and be the highest truest expression of themselves.

1.3 Location
The Tuition Centre is located in Zaburi Area, Nakuru, Near SDA Church.

1.4 Vision
To Steer a mental revolution amongst young people for socio-economic development.

1.5 Mission
To Nurture learners, gifts, talents and Abilities

1.6 Motto
Education is life not preparation for life.

1.7 Values
i. G-God Led
ii. R-Relevant
iii. E-Excellent
iv. A-Authentic
v. T-Teachable

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 vi. S-Social Justice

1.8 Goals & Objectives

i. 1.Make learning a fun Experience.
ii. 2.Help Learners discover their God -given gifts, talents and Abilities.
iii. 3.Allow learners to learn at their own pace and style.

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 2.0 Business Description
2.1 The Greats Tutorial Services
The Greats Tutorial Services will focus on specific age groups in order to maximize efficiency
and ensure the students receive the highest level of teaching and tutoring.

i. Elementary children Ages 5-12

ii. Middle School Students Ages 13-14
iii. High School Students Ages 14-18

The learners will receive tutoring that is in line with the course curriculum they study at their
individual schools whether public or private.

Science students will have access to the lab to do practicals

Language courses will be offered to interested students including English Set books, Kiswahili
Set books, Kiswahili as a foreign language, German and French Foreign Languages.

Final year students will receive personalized revision tuition in preparedness to their final
examination.

Offers IGCSE, CBC, KCSE, EDEXCEL Curriculums

2.2 Service Breakdown

i. 1.Assigned 7 days a week tutoring service
ii. 2.Curriculum specific tutoring as needed.
iii. 3.Advance course curriculum tutoring as needed
iv. 4.Parent/Tutor weekly conferences
v. 5.Focused Academic tutoring programmes
vi. 6.Digital tutoring pathways
vii. 7.Monthly online payment for ease of clients

2.3 Management Team

The Greats Tutorial Services is owned and operated by Elizabeth Njoki. She has recruited
academic experts in areas of International Curriculum, CBC, Physical Fitness and Early
Childhood Education.

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 i. 1.Patrick Mwema Wanjuki-International System and Physical Fitness
ii. 2.Grace W Ndung’u-Retired Elementary Teacher brings a wealth of experience and
capacity building skills.
iii. 3.Rahab Nini a senior tutor CBC expert
iv. 4.Benson Kamau Nyambura an experienced science examiner KCSE.
v. All our tutors have certification with the Teacher Service Commission.

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 3.0 Market Research
3.1 Industry Analysis
The academic tutoring industry is expected to grow over the next five years. The demand will be
driven by

(i) High rate of interest for supplementary learning services

(ii) Technological advancements that make tutoring platforms and tutors easily accessible
(iii) A growing acceptance of tutors for students who need extra training and cognitive
understanding of various subjects
(iv) Lower costs as tutoring services become more available and accessible.

3.2 Customer Segmentation

(i) Parents of students who need tutoring
(ii) Public and Private schools’ students who need extra tutoring support.
(iii) Parents who want advanced curriculum teaching for their children.
(iv) Parents who are homeschooling their children

3.3 Competition Analysis

Potential competitors offering tutoring services are
i. 1.Individual teachers who offer their services to students at the comfort of their homes.
ii. 2.Nakuru Homeschooling: This act as an agent that connects homeschooling parents to
qualified teachers to teach the children at the comfort of their Homes. They also offer
courses such as coding, robotics, music for regular students.
iii. 3.Holiday Tuition Services offered by a variety of groups during long Holidays

3.4 SWOT Analysis

Strengths Weaknesses
1.Familiar with local community Limited Physical teaching Space in
2.Experience in tutoring Home Office
3.Unique Approach to learning that is
tailor-cut for each student

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 Opportunities Threats
1.Making Learning exciting for students Parents addiction to tuition at the
2.Socialization amongst students comfort of their own homes.

3.5 Competitive Advantage

i. Friendly, knowledgeable and highly qualified team.
ii. Digital Tutoring pathways
iii. Advanced Course Curriculum tutoring as needed.
iv. Parent/Tutor weekly conferences
v. Reasonable, hourly/monthly pricing for tutoring students of all ages. Discounts for
families with multiple children in tutoring.
vi. Teaching of few subjects at a time and sitting for exams.eg Science subjects then sit for
science exams, followed by Language subjects then sitting of Exams.

3.6 Key Performance Indicators

i. Number of students
ii. Students/Parents satisfaction and feedback
iii. Teacher engagement and retention rates

3.7 Risk Management

3.7.1 Potential Risks
i. Low enrolment numbers
ii. High turnover of teachers
iii. Technical issues with online platforms

3.7.2 Mitigation Strategies

i. Conduct market research and holiday programme to gauge interest
ii. Develop a robust teacher recruitment and retention plan
iii. Invest in reliable technology and have a backup plan in place
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3.8Marketing Plan
3.8.1 Value Proposition
i. Highly qualified team who are able to provide a comprehensive academic programme for
tutoring services.
ii. Parent tutor weekly conferences
iii. Enhanced tutoring featuring digital tutoring pathways
iv. Fair pricing to clients especially those with multiple students

3.8.2 Promotion Strategy

i. Word of mouth/Referrals
ii. Professional associations and Networking
iii. Print Advertising/Fliers
iv. Online Marketing

3.8.3 Pricing
The pricing will be moderate and on par with competitors so that customers feel they receive
excellent value for their purchase.

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 4.0 Operations Plans
4.1 Team
Elizabeth Njoki will be the owner and director of the company. She will oversee all staff and
manage client relations. Elizabeth has spent some time recruiting the following staff.

i. Grace W Ndung’u a Retired Elementary Teacher will become an academic expert and
tutor to oversee elementary learners.
ii. Rahab Nini a Senior Tutor will become the Academic Expert Tutor for Junior High
School.
iii. Patrick Mwema will be the senior School Leader and physical Fitness expert.
iv. Benson Nyambura a full time tenured high school teacher will become the Science
Practicals Leader for the secondary school students.

4.2 Technology
i. 1.The use of website for learning and communication
ii. 2.Online/Webinar communication with Parents
iii. 3.Online classes

4.3 Milestones
i. 5th September 2024-Finalize contract to lease office space
ii. 5th October 2024-Finalize Personnel and staff employment contracts
a. -Finalize Fee structures and discount offer
iii. 5th November -Begin marketing and Networking
iv. 15th November -The Greats Tutoring Services Opens its doors for business.

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5.0 Financial Plan
5.1 Key Revenue and Costs
The Revenue Drivers for the Greats Home Schooling are the fees charged for tutoring services.

The expenses will be the payroll cost, rent, utilities, office supplies and marketing materials.

5.2 Funding Requirements and Use Of Funds

The Greats Tutoring Services is seeking KSh 600,000 in debt financing to Launch. The funding
will be dedicated towards 3 months of overhead costs to include payroll of the staff rent and
marketing costs. The breakdown is as follows.

(i) Premise space-150,000

(ii) Office equipment-100,000
(iii) Three months overhead expenses (payroll, utilities)-150,000
(iv) Marketing Costs-50,000
(v) Working Capital -150,000

5.3 Key Assumptions

The following key assumptions have been made in order to achieve the revenue and cost
numbers in the financials and in order to pay off the start-up business loan.

i. Number of clients per month: 20 in FY1, growing by 20% annually.

ii. Average revenue per client per month: KSh 20,000.
iii. Cost of goods sold (COGS): 25% of revenue.
iv. Operating expenses: Fixed with some variable increases in marketing and salaries due to
growth.
v. Tax rate: 30%.

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 5.4 Financial Projections
5.4.1 Projected Income Statement
Description FY1 (KSh) FY2 (KSh) FY3 (KSh)
Revenue 4,800,000 5,760,000 6,912,000
Cost of Goods Sold 1,200,000 1,440,000 1,728,000
(COGS)
Gross Profit 3,600,000 4,320,000 5,184,000
Operating
Expenses
Salaries and Wages 1,200,000 1,440,000 1,728,000
Rent 500,000 500,000 500,000
Utilities 150,000 160,000 170,000
Marketing 200,000 240,000 280,000
Expenses
Office Supplies 100,000 110,000 120,000
Depreciation 50,000 50,000 50,000
Operating Income 1,400,000 1,820,000 2,336,000
Interest Expense 50,000 40,000 30,000
Net Income Before 1,350,000 1,780,000 2,306,000
Tax
Tax (30%) 405,000 534,000 691,800
Net Income After 945,000 1,246,000 1,614,200
Tax

5.4.2 Projected Balance Sheet

Description FY1 (KSh) FY2 (KSh) FY3 (KSh)
Assets
Current Assets
Cash 200,000 300,000 450,000
Accounts 100,000 150,000 200,000
Receivable
Inventory 50,000 60,000 70,000
Fixed Assets
Equipment 100,000 100,000 100,000
Leasehold 150,000 150,000 150,000
Improvements
Accumulated (50,000) (100,000) (150,000)
Depreciation
Total Assets 550,000 660,000 820,000
Liabilities

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 Current Liabilities
Accounts Payable 50,000 60,000 70,000
Short-Term Loans 100,000 80,000 60,000
Long-Term
Liabilities
Long-Term Debt 500,000 400,000 300,000
Total Liabilities 650,000 540,000 430,000
Equity
Owner’s Equity
Retained Earnings (100,000) 120,000 390,000
Owner's Investment 100,000 0 0
Total Equity 0 120,000 390,000
Total Liabilities 550,000 660,000 820,000
and Equity

5.4.3 Projected Cash Flow Statement

Description FY1 (KSh) FY2 (KSh) FY3 (KSh)
Operating
Activities
Cash Inflows - 4,800,000 5,760,000 6,912,000
Revenue
Cash Outflows - 1,200,000 1,440,000 1,728,000
Salaries and Wages
Cash Outflows - 500,000 500,000 500,000
Rent
Cash Outflows - 150,000 160,000 170,000
Utilities
Cash Outflows - 200,000 240,000 280,000
Marketing
Expenses
Cash Outflows - 100,000 110,000 120,000
Office Supplies
Net Cash from 2,650,000 3,310,000 4,114,000
Operating Activities
Investing
Activities
Cash Outflows - 100,000 0 0
Purchase of
Equipment
Cash Outflows - 150,000 0 0
Leasehold
Improvements
Net Cash Used in (250,000) 0 0
Investing Activities

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Financing
Activities
Cash Inflows - 600,000 0 0
Loan
Cash Outflows - 0 100,000 100,000
Loan Repayment
Net Cash from 600,000 (100,000) (100,000)
Financing Activities
Net Increase in 3,000,000 3,210,000 4,014,000
Cash

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 6.Conclusion
The Greats Tutoring Services represents an innovative and timely solution to the educational
needs of today’s learners. In an era where personalized learning is increasingly recognized as
vital for academic success, this tutoring service stands out by offering a well-structured and
individualized approach tailored to each student’s unique learning style and pace. With a team of
highly qualified tutors and a comprehensive curriculum that spans various subjects and
educational levels, The Greats Tutoring Services is well-positioned to make a substantial impact
on students' academic performance. The service’s commitment to providing expert guidance
ensures that each learner receives the support they need to excel, not just in their current studies,
but in their long-term educational journey. The integration of technology and traditional teaching
methods also enhances the learning experience, making it more engaging and effective.
Ultimately, The Greats Tutoring Services is set to foster significant, lasting success for all its
learners.

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 7. Appendices
7.1 Appendix 1: Location of Tuition Centre

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