A. Executive Summary
The business plan is written for the Step Ahead Learning Center serving the children of Kennewick, Pasco, and Richland. The center educates young students in reading, writing, and math to meet or exceed the Common Core Standards for Washington State. The center will increase children’s literacy and comprehension of reading, writing, and math through practices such as one-on-one tutoring and small group sessions instructed by trained and certified personnel. The center will teach understanding and mastery of concepts over the memorization of concepts, testing comprehension by requiring practical, real life application of knowledge to prepare children for college, work, and life.
The center will have a venue available for professional private events which include work presentations, public speaking, educational classes, etc. The revenue from the outside use of this venue will help fund operations of the Center.
Step Ahead Learning Center is formally asking for $20,000 to complete a fifth fully functional computer lab, and asks for on-going contributions to further assist with the advancement of technology incorporation, helping to achieve or exceed the Common Core Standards as set forth by the Washington Education Association (WEA).
Ginsburg, Leinward, and Decker (2005) stated that the mathematics concepts in U.S. textbooks are often weak, thus presentation is becoming more mechanical than ever.
A.1 Business Identification
Step Ahead Learning Center
1000 W. 4th Ave.
Kennewick, WA 99336
A.2 Mission, Goals and Objectives
The center’s mission is to integrate technology into teaching and learning, reinforcing consistent expectations in learning for all students across all grade levels consistent with school board expectations, teaching comprehension and mastery over memorization of concepts, and emphasizing critical topics children will need to possess to succeed in school and after graduation. This mission helps the Learning Center achieve the vision of a culture that promotes high educational standards, high expectations, individual learning, collaborative learning, and excellent communication skills.
The partnership between the Learning Center and the local school board will increase the amount of highly educated children into the community, raising the community welfare and individual well-being.
The primary purposes of the Learning Center are:
1. To reinforce consistent expectations in learning for all students across all grade levels, in partnership with the Kennewick, Pasco, and Richland
2. To teach comprehension of concepts over the memorization of concepts, instilling a high personal standard of learning. a. Consistently test to ensure a high level of retention by requiring a practical, real life application of knowledge to prepare students for life beyond school
3. To introduce or reinforce critical topics students will need to succeed in the classroom and in the future.
4. To provide a venue for professional based private events, helping offset operation costs of the Learning Center
The primary objectives of the Learning Center are:
1. To increase overall average Measurement of Student Progress (MSP) test scores to “at grade level” or “above grade level” for the Kennewick, Pasco, and Richland school districts by the end of the 2015-2016 school year.
2. To increase Common Core Standards comprehension levels in reading, writing, math, and technology to “at grade level” or “above grade level” for the Kennewick, Pasco, and Richland school districts by the end of the 2015-2016 school year.
3. To decrease crime and substance abuse among children, teens, and young adults in the community by providing a safe and inviting Learning Center where children can learn and grow as individuals and as a member of the community.
4. To advocate collaboration among young children, increase comprehension in reading, writing, math, and technology, increase communication skills, broaden cultural views, increase moral reasoning, and foster growth of cognitive abilities.
5. To increase the level of personal responsibility of children in the community.
A.3 Three Keys to Success
The Learning Center anticipates success of goals and objectives through three key functions: hiring staff members that are the right fit, empowering staff to create devotion and a passion for excellence, and strong collaboration with various clientele. Hiring exceptional staff members: Step Ahead Learning Center is an equal opportunity employer. The right employees will embrace the center’s mission, hold a degree in a field of study related to education, and embody strong communication skills with peers and young children. Empowerment: This creates a high level of devotion and passion to strive for excellence. Every interaction with a child and every lesson presented, taught, or pursued by a staff member will be done with the highest goal in mind: integrating technology into a safe and inviting learning environment to increase comprehension of reading, writing, math, and technology concepts. Collaborating and communicating with others: Staff will interact with a variety of clientele including by not limited to children, parents, school board members, funders, benefactors, and other partners or agencies providing support and opportunities for the Learning Center. Every interaction with a person inside or outside the Learning Center will help the center to meet its objectives.
B. Company Summary
B.1 Industry History
The area in which the center will be providing educational services is well developed with current educational services. The relationship between Step Ahead Learning Center and the Kennewick, Pasco, and Richland school districts is unprecedented. Each of the three school districts strongly recommend and encourage struggling (and none struggling) students to the services offered at the center based on staff credentials and comprehension standards.
In 2001, the No Child Left Behind Act was enacted to “ensure that all children have a fair, equal, and significant opportunity to obtain a high-quality education and reach proficiency on challenging State academic achievement standards.” This act has increased the relationship between the three school districts and the Learning Center because schools are required to improve their performance to meet or exceed State standards. The Learning Center is providing extra assistance to students who need it in order for the schools to meet the expectation set forth by the No Child Left Behind Act.
The primary purpose of the center is to ensure high-quality student comprehension of key concepts in Reading, Writing, and Math, aligning concepts with State academic standards so that progress against common core standards can be measured. There are several smaller businesses which strive to achieve the same vision, but one competitor has market share. For this competitor, one disadvantage is that Step Ahead Learning Center has a direct relationship with the Kennewick, Pasco, and Richland school districts, they do not. An advantage this competitor has over Step Ahead is that they have built a reputation, having been in business for more than 30 years. This is the only other Learning Center in the area that meets an identical scope of the Step Ahead Learning Center.
The secondary purpose of the center is to provide a rental revenue for professional or semi-professional events. There is a history of professional venues available at most large hotel chains. Several venues in the area meet the Center’s scope of a rental venue.
B.2 Legal Form of Ownership
Step Ahead Learning Center is incorporated in the state of Washington. The company is established as a 501(c) (3), which facilitates contributions from donors. A large majority of financing is raised internally or from charitable donations. Step Ahead Learning Center is governed by a board of twelve trustees. Independent contractors, if any, working for Step Ahead Learning Center will be held fully responsible for their own legal requirements, taxes, and expenses. A website, “stepaheadlearningcenter.com,” has been obtained by the company. This website is used as a marketing tool for the company and a source of information for parents/young adult children.
B.3 Location and Facilities
Step Ahead Tutoring Center is located in Kennewick, WA serving students in Kennewick, Richland, and Pasco school districts. The company will conduct business in a 10,500 square-foot space dedicated entirely to the operations of the business. Business licensure has been obtained from the City of Kennewick and fulfills any and all requirements to operate such a business. No legal issues or regulations in the city or state will now, or in the future, lessen the ability to operate in Kennewick or to conduct business from the named location.
The building is equipped with general business equipment, including a high-tech computer system with Wi-Fi Internet connection, a cell phone for each staff member, Skype teleconferencing technology, and a company vehicle. The center has two computer labs, each with 25 computers and a projector. Each computer has high speed Internet connection, Microsoft Office Home and Student, and several different purchased educational programs. The venue available for professional and semi-professional events is equipped with two computers and a projector. Each employee has a designated office with their own computer. The main teaching floor (lecture hall), each of the 5 computer labs, and each of the 3 private tutoring rooms have a projector.
B.4 Management Structure
Xxxxxx Xxxxx will perform Presidential duties and perform all management positions including, but not limited to, Business Development Manager, Communications/Public Relations Manager, and Project Manager. He is a certified teacher in the state of Washington with a BA Degree in Business Management / Marketing from the accredited online school Washington Governor’s University (WGU). He will handle marketing the benefits of the company’s education services to customers, human resource duties, and overseeing day to day operations. The one-on-one and group tutoring sessions will be the responsibility of four highly qualified and trained teachers. These employees are salaried and will receive a raise increase of 1% over the prior year’s pay (starting at $18,000 the first year). They will follow the company’s high standard of excellence in education that represents the local school districts and State’s required common core standard. Currently, the company has hired four teachers. Additional teachers can be added as deemed necessary by additional workload, meaning the company is growing.
This organizational structure will meet the short-terms needs of the center, but long-term needs will require at least one receptionist and a general manager. The center plans to hire these two positions after the first 6 months of operation to reduce the work load of the teachers having to check-in students (or requiring parents to self-check-in) and the president having to oversee day-to-day operations.
B.5 Products and Services
The Common Core Standards in Washington state at the highest levels ever. Step Ahead Tutoring Center will use technology and hands-on methods to
educate children ranging from Kindergarten to high school seniors. Students will be given additional tools and resources aligned with established school district procedures to help them succeed in school and in the future.
The following services are offered by the Step Ahead Tutoring Center: Reading Tutoring: Academy of Reading, a program designed by EPS for students’ grades 2-12 (EPS Literacy and Intervention, 2014), will be used by a designated reading teacher. Sessions will be one hour in length in a group setting of no more than 10 students per one teacher. Students will log in to their account and begin working in the program. Teachers will introduce a lesson, review basic concepts, monitor progress, and view reports on each student daily to ensure progression. If teachers see a regression in progress, the student will be given a higher level of attention in the group setting. If this does not help the student improve, the student may be recommended to one-on-one tutoring sessions. Writing Tutoring: Writing Skills (2nd Edition), a program designed by EPS for students’ grades 2-12, will be used by a designed writing teacher. Writing Book A is for grades 2-4, Writing Book 1 is for grades 5-6, Writing Book 2 is for grades 7-8, and Writing Book 3 is for grades 9-12. Students will be expected to complete one lesson every two sessions (with each session being one hour long with no more than 10 students in a group). If teachers see a regression in progress, the student will be given a higher level of attention in the group setting. If this does not help the student improve, the student may be recommended to one-on-one tutoring sessions.
Math Tutoring: Academy of Math, a program designed by EPS for students’ grades 2-12, will be used by a designated math teacher. Sessions will be one hour in length in a group setting of no more than 10 students per one teacher. Students will log in to their account and begin working in the program. Teachers will introduce a lesson, review basic concepts, monitor progress, and view reports on each student daily to ensure progression. If teachers see a regression in progress, the student will be given a higher level of attention in the group setting. If this does not help the student improve, the student may be recommended to one-on-one tutoring sessions.
One-on-one Services: An individualized one-on-one session can be scheduled with any of our four highly trained teachers in reading, writing, and/or math to ensure children are getting the help that they need. Parents can enroll their child directly into a one-on-one session with a teacher for one session, or on a continual basis. A teacher may recognize that a student is struggling in a group atmosphere, making the recommendation that the child work in a one-on-one session until he/she shows signs of academic improvement. A one-on-one teacher will provide the student with assistance on their homework upon request. Venue Rental: Step Ahead Tutoring Center has a venue available for rent by outside parties for professional and semi-professional events such as guest speaking, presentations, meetings, etc.
C. Market Analysis
C.1 Target Market
Step Ahead Tutoring Center’s primary target audience consists of mothers/fathers or grandparents of children enrolled in the Kennewick, Pasco, or Richland School Districts in grades 2-12. The primary target for the message is the parents/grandparents of students who are at or below State Common Core Standards in Reading, Writing, and Math. The secondary target for the message is the parents/grandparents of students who are at or above State Common Core Standards.
Step Ahead Tutoring Center’s secondary audience consists of businesses and professionals, traveling and stationary, who require a venue to hold a professional or semi-professional meeting or event. The goal behind providing a venue for such meetings is to (1) gain exposure for the Tutoring Center, and (2) generate additional revenue for the operating expenses of the Tutoring Center.
C.2 Industry Analysis
Future trends that may affect the center’s efforts to educate students’ grades 2-12 in the Kennewick, Pasco, and Richland school districts include: Basic education and Common Core Standards goals are met. An average of 85% of students in the Kennewick, Pasco, and Richland school districts meet these standards. As the economy changes, the need for more highly educated and skilled workers will increase. The education and Common Core Standards goal and philosophy should be continually updated to reflect cultural and economic needs. Expansion of Common Core Standards. A higher level of standards for students will mean updated training and certifications for staff, higher levels of work for students, and an increase in the number of students not meeting these standards, requiring extra attention. Mission, Goals, and Objectives creep. As the center gains momentum, other established or start-up business may use a similarly formatted mission statement for their company. It will be important for Step Ahead Tutoring Center to ensure the impact of the mission is not lessened by another groups’ participation in similar missions, goals, and objectives. Down time. The school year for the Kennewick, Pasco, and Richland school districts in from late August to the middle of June. During the summer months, summer school sessions take place around the area at various different school locations. There will be a significant decrease in the amount of students attending at the Tutoring Center during this time. The venue for rent by outside professional or semi-professional groups will help to offset costs during this time. Cash flow. During this down time during the summer months (middle of June to late August) there will be a decrease in revenues, resulting in the temporary release of two employees, or utilizing other rooms in the center for other uses, such as additional rental space.
C.3 Competitive Analysis
Competition for education services comes from several sources, the biggest competition being Sylvan Learning Center. According to the Sylvan Learning website, Sylvan offers tutoring in all levels for Math and Reading; they assess students’ needs and create a personal education development plan targeting select math and reading concepts; they offer their own technology for an engaging experience on the iPad; they also offer flexible schedules that fit any busy family schedule. To compete with Sylvan, Step Ahead will heavily market the availability of highly trained staff in each subject area, the inclusion of Writing concepts into the curriculum, the inclusion of technology in the administration of each subject to improve the child’s overall competence, and the partnership with the Kennewick, Pasco, and Richland school districts to ensure focus on helping students achieve proficient or advanced levels according to the State’s Common Core Standards.
A second competitor is actually the Kennewick, Pasco, and Richland school districts. Select schools are offering after school programs focused directly on helping students understand the material being taught in the class room. This program is free of charge to students who need the additional attention. This is not a requirement of the school nor is it being offered at every school for every grade level, primarily because the school board cannot fund these programs. While the teachers at Step Ahead can assist with solving homework problems, the focus is on administering Math, Reading, and Writing programs to provide additional concepts that will further the students comprehension in the subject.
Another competitor is after school clubs such as the YMCA or Boys and Girls Club of America. These programs are great for children who are succeeding in school and do not require additional attention to meet the State’s Common Core Standards. They provide children with the opportunity to play and interact with other children their own age while being supervised in a safe environment. At Step Ahead, students are being supervised in a safe environment, but they are also learning and growing their minds. A marketing approach to be taken by Step Ahead is that children who require additional help should be enrolled in an “afterschool program” such as Step Ahead where they will spend time immersed in educational programs.
Competition from hotels or reception buildings that host weddings, receptions, and other private events are not considered. In general, the rental of the venue at Step Ahead is not the primary objective, thus marketing the venue against competition is not pursued. While Word of Mouth marketing will be the primary marketing strategy for the venue, the goal is that the income generated by rental of the venue will help cover operating costs of the center.
Many people in the area see the need for private and semi-private educational assistant with all grade levels in the Kennewick, Pasco, and Richland school districts. The main trigger for this realization is the lack of students meeting the States Common Core Standards. With awareness of this issue increasing, there is a positive and a negative for Step Ahead. The positive is that more children will be enrolled into private and semi-private educational services, which means a possible increase in enrollment for Step Ahead, resulting in increased revenue and possible future growth of the business. The negative is that more schools, groups, or qualified individuals will begin to offer more private and semi-private educational services, which means an increase in competition for Step Ahead.
D. Market Strategy
D.1 The 4 P’s
Pricing: The pricing strategy used to determine a price for the services provided by Step Ahead was a variation of Penetration Pricing and Predatory Pricing. Penetration Pricing is when a company sets their prices low to attract customers and gain market share, and then raises the prices once they have a large market share. Step Ahead used the first half of this strategy, which is setting prices low to attract customers and gain market share. Predatory Pricing is known as an aggressive strategy, intended to drive competitors from the market. Step Ahead is not interested in becoming market leader and running other companies out of business. The goal is simply to educate children and raise comprehension to the State Common Core Standard level, while covering expenses. In regard to the mission of the center, profitability is not the number one goal. Profitability, however, is still required in order to continue and expand the business, increasing efforts in providing higher levels of educational services to children.
The venue rental prices were set depending on cost of utilities used during these times, the cost of having a Step Ahead staff member on the premises during the event, and generating revenue for covering operating costs of the center. Product: As described previously, the service provided by Step Ahead Learning Center is additional education services. A profound need for higher levels of comprehension and Common Core concept teaching is found in the Kennewick, Pasco, and Richland school districts. Because of this need, the center will offer tutoring sessions at different times throughout the day Monday thru Saturday. Highly trained and qualified teachers will teach one-on-one and semi-private groups (no more than 10 students) on concepts aligning with the State’s Common Core Standards in Reading, Writing, and Math. Academy of Math, Academy of Reading, and Writing Skills (2nd Edition) are programs distributed through EPS for use by teachers to improve struggling students comprehension in the concepts of Reading, Writing, and Math. The teachers at Step Ahead are trained on these programs and will monitor students’ use of these programs to ensure the highest quality comprehension and learning. A one-on-one teacher will assist a student with their homework upon request, a Reading teacher, Writing teacher, or Math teacher will not provide assistance with homework.
Promotion: Promoting education services to mothers, fathers, and grandparents (even college age students with younger brothers or sisters) has been primarily easy. A quality education is easy to market, and if a parent or relative sees that a child is struggling with their education, the first option to consider is additional education services.
Methods for promoting the services offered at Step Ahead Tutoring Center include radio advertisements, television commercials, flyers, word-of-mouth, direct mail, Facebook, and blogs. The primary channel for promoting the center is the partnership with the Kennewick, Pasco, and Richland school districts. Teachers, Paraprofessionals, Secretaries, and Principals can promote Step Ahead through word-of-mouth marketing. Flyers posted at each of the schools on a main bulletin board at the front office, or an informational pamphlet sent home with a student’s report card can promote Step Ahead.
The biggest promotion for the center to date is the planned grand opening scheduled for August 2014. This event is geared to be a celebration of education and it will include students, parents, grandparents, brothers, sisters, teachers, paraprofessionals, secretaries, principals, donors, and any member of the community devoted to the success of children in their education. Promotion for the event will include television and radio advertisements, flyers, and direct mail to all households in the Kennewick, Pasco, and Richland school districts.
A promotional tool to be used will be brochures. These informational brochures will be given at every consultation, will be available at the front desk, and will be sent to every school is the Kennewick, Pasco, and Richland school districts. The information in this brochure will cover the mission, goals, and objectives of the center, the location of the center with hours of operation, contact information, and session times, a breakdown of cost compared to competitors, and information regarding the highly trained and certified teacher staff.
Another promotional tool is a fully functional website for the center. It will include all the information placed in the brochure, plus much more. A staff directory will be included along with links to different online educational tools (learning games, Common Core Standard guides, school board information, school websites, etc.). The website URL is: stepaheadlearningcenter.com.
Place (Distribution): Points of distribution for information about the services provided by the Step Ahead Learning Center are found (1) on site in each computer lab, at the front desk, and in the venue, (2) on the website (stepaheadlearningcenter.com), and (3) by phone call or direct mail. All promotional efforts for the Step Ahead Tutoring Center are targeted geographically to reach households in the Kennewick, Pasco, and Richland school districts. While select publications will reach locations outside the intended geographic area, a requirement to enroll in the learning center is enrollment in either the Kennewick, Pasco, or Richland school district. Any enrollment requests received for a student residing outside of these school district boundaries will be referred to a learning center (or equivalent) in their area.
D.2 Price List
The following prices are for services offered at Step Ahead Tutoring Center. Prices listed are per session.
The following prices are for rental of the venue for professional and semi-professional events at the Step Ahead Tutoring Center.
D.3 Selling Strategy
There are many strengths of the center including: the location in the center of the three school districts which provides easier access for the families living in the area, highly trained and certified teacher staff, and a true focus in further educating students to help achieve the goals listed in the Common Core Standards set forth by the State of Washington.
More companies and small business are requiring their employees, vested and entry level, to have a degree or some form of education beyond high school. The center’s mission is to increase the level of education in the area, increasing the number of educated young adults entering the work force.
Goal: Further the education in children to assist with increasing the percentage of students testing “at grade level” or “above grade level” as defined by Washington State Common Core Standards to 65% by 2016, 70% by 2018, 75% by 2020, 80% by 2021, and 85% by 2022 (and to continually maintain an average of 85% or better). A milestone for this goal, set in 2001 after the “No Child Left Behind Act” was initiated, was achieved in 2011: 50% of students within the Kennewick, Pasco, and Richland school districts will test “at grade level” or “above grade level” in 10 years.
Goal: Record, edit, and publish four videos to be posted on the Step Ahead Learning Center website. The videos will show how the teacher staff at the center teaches private and semi-private groups the concepts of Reading, Writing, and Math using technology to administer helpful programs. An HD recorded and latest editing software will be used to capture and edit the videos. The videos will be uploaded to the website by January 2015.
Goal: Produce the Information Brochure mentioned earlier to be distributed to Kennewick, Pasco, and Richland school districts and to be sent out by direct mail to households within the school district boundaries. 10,000 brochures should be produced and distributed by the end of September 2014 after the first Washington State Assessment test is administered to every student in the Kennewick, Pasco, and Richland school districts.
D.4 Sales Forecast
Step Ahead operates under a fiscal calendar year of August 1 to July 31. Following figures are based on expected market conditions.
The two year totals are: Fundraising $27,000, Learning Center Sales Revenue $359,000, Venue Rental Revenue $53,400, and Funding from Donors $126,000. It is estimated that fundraising will continue at its current momentum of $5,000 for year one, and increase to $6,000 per month for year two. It is estimated that the center’s sales revenues will increase as the goals and objectives of the center become better known by the residents of the Kennewick, Pasco, and Richland school districts. The forecasted two year revenue for Step Ahead Tutoring Center is $565,400.
E. Implementation Strategy
E.1 Overall Strategy
The center will benefit from its location in the city. It is easily accessible by everyone in the Kennewick, Pasco, and Richland School District Boundaries. The grand opening will be the official launch of the business, set to take place this year in late summer, early fall (2014). During the event, there will be an open house where anyone from the community can take self-tours of the building, viewing all computer labs, reception area, and rental venue. Demonstration tutoring sessions will be taking place during the duration of the event with 10 children who were asked to simulate an actual classroom environment. There will alo be a registration at the reception area for those families that feel their student will benefit from tutoring sessions at the center and wants to sign up immediately.
Fundraising will be taking place each month, with the money going to different projects or needs of the center. The fundraiser during August 2014 will be “First Day Back School Supplies.” Many different businesses from the area have donated back-to-school supplies to the center with the intent that the center would sell these items to raise money for the center. Every Monday thru Saturday in August, back-to-school supplies will be for sale at the center, with registration taking place at the same time.
The items that will be on sale for the fundraiser include:
Ruled/Unruled Notebook Paper (100 sheets): $1.00
Three-Ring Spiral Notebook (75 sheets): $1.50
Composition Notebook (100 sheets): $2.00
Pencils (package of 10): $2.00
Pens (package of 10): $2.00
Erasers (package of 4): $2.50
Pencil Pouch: $5.00
Three-Ring Binder (1”): $3.00
Evaluating the success of the center will be determined by two factors: did the business meet the financial goal to be considered a financial success, and did the percentage of students in the Kennewick, Pasco, and Richland school districts test “at grade level” or “above grade level” meet the set goal.
Grand opening date for the Step Ahead Tutoring Center: August 1, 2014. The following is a list of items to be completed and a date that they must be completed by.
Target Completion Date
Private Tutor Teacher
Invitation list for grand opening
Invites sent out
July 1, 2014
Purchase EPS programs
Install programs on each computer
Ensure full functionality
July 5, 2014
Create 10,000 brochures
Deliver adequate amounts to each school in the districts
Mail to cover school district boundaries
July 10, 2014
August 2014 Fundraiser
Obtain donated materials from local businesses
Send out announcements
Ensure staffing plan
July 20, 2014
Grand Opening Event
August 1, 2014
E.3 Control Plan
The overall success of the Step Ahead Tutoring Center will be measured by: (1) the business’ ability to sustain its own operations through Sales, Venue Rental, Fundraising, and Donor Contributions, and (2) the percentage of students who test “at grade level” or “above grade level” according the Washington State Common Core Standards is at goal. The following is a table representing student enrollment and the percentage of students “at grade level” or “above grade level” from 2001 to 2013. From 2014 to 2022 is a projection of expected student enrollment and how many students will have to test “at grade level” or “above grade level” to meet the goal. The milestones set by Washington State are listed in bold.
Students At/Above Grade Level
# of Students
# of Students
% of Students (Actual)
% of Students (Goal)
The first milestone, achieving a 50% pass rate by 2011 as determined by the Washington State Common Core Standards, was set in 2001 following the initation of the No Child Left Behind Act of 2001. This milestone was achieved. The second milestone will occur when a 65% pass rate has been achieved. Annual tracking (using a table such as this) will allow measurement of progress so marketing can be adjusted to the needs of the students in the area.
There are several benefits of the center, including the monthly contributions from donors in the area who share the same dedication in seeing children succeed in education. Successful fundraising will raise $52,000 in the first two years to cover the daily operations of the center, including utilities and salaries. Rental fees are determined by the cost of utilities and salary during the reservation of the venue for a professional or semi-professional event.
F. Financial Statement and Projections
F.1 Revenue and Cost Estimate
The following is a projection for the Step Ahead Tutoring Center’s first year in business:
F.2 Forecasted Profit and Loss Statement
The following is a projection for the Step Ahead Tutoring Center’s first year in business. Sales Revenues include Fundraising, Venue Rental, Sales, and Donor Contributions. Expenses include Utilities, Software, and Salaries (four teachers and owner), starting in August 2014.
F.3 Forecasted Balance Sheet
The following reports the Projected Balance Sheet for Step Ahead Tutoring Center after their first year of business:
G. Financial Report
G.1 Financial Projections
The assumptions made in estimating the projected revenues in the prior section was based on expert judgement from past fundraising experience, anticipated demand for venue rental (based on community interest), and the cost of each private and semi-private tutoring session. Outside donor contributions are consistent each month during the first year and second year of operations. Projections for fixed expenses (Utilities) came from estimates provided by the building architect.
G.1a Breakeven Point
The following shows that the Step Ahead Tutoring Center will achieve a breakeven point in the fifth month of the first year.
G.1b Financial Position
After analyzing the estimated revenues and expenses for the first year, the company will be in a good financial position at the conclusion of operations on July 31, 2015. During the first year, the center will have $50,900 in revenue. The center would not be self-sustaining without the contributions from donors and the fundraising efforts. Sales are in line for the needs of the center during the first year. After successfully launching a website for the center and continual marketing efforts throughout the year, great awareness and a strong reputation will be build by the end of the firsr year. During the second year, further sales growth is planned with the addition of two staff members and the need to purchase replacement utilities along with additional software programs. The center will be self-sustaining without the requirement of donor contributions and fundraising efforts during the second year.
G.1c Capital/Investment Needs
The company will receive a $10,000 Capital Investment from Xxxxxx Xxxxx to assist with marketing the launch of the center. Step Ahead Learning Center’s website and email program have been developed prior to company planning by the owner. Using “in-house” resources to develop a product is much less expensive then contracting the work through an outside vendor.
The center is seeking a total of $20,000 to complete a fifth fully functioning computer lab (computers, projector, chairs, desks) plus on-going contributions to further assist with the incorporation of advancing technology.
Donors should be prideful in knowing they helped create a better community through the higher education of children in the area, helping thousands of children to have a better future, allowing them to enter the work force better educated with high, attainable goals.
Ginsburg, Leinward, and Decker. (n.d.). Office of superintendent of public instruction. Retrieved from http://www.k12.wa.us/CoreStandards/Mathematics U.S. department of education. (2010). Retrieved from
EPS literacy and intervention. (2014). Retrieved from https://eps.schoolspecialty.com/ Sylvan learning. (2013). Retrieved from http://www.sylvanlearning.com/
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