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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017

Business Startup Guides
Checkout our new sister site!

Free Test Preparation Tutoring Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.



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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • FREE 30 Page Sample Private Placement Memorandum
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $50,000 for the development of a standardized test tutoring service while showcasing the expected financials and operations over the next three years. Test Preparation Tutor, Inc. (“the Company”) is a New York based corporation that will provide academic tutoring services to teenagers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

As stated above, the business intends to provide standardized test focused academic tutoring services to high school students. The Company, via independent contractors, will employ college students and teachers with a broad scope of academic knowledge. The Company will be able to provide significant improvements in standardized testing scores for its students. The Company intends to provide these services from the comfort of the customers’ homes rather than developing a tutoring facility. At the onset of operations, Mr. Doe intends to develop referral relationships with area schools, guidance counselors, and tutors in order to generate immediate revenues. The third section of the business plan will further describe the services offered by the Test Preparation Tutor.

1.2 The Financing

Mr. Doe is seeking to raise $50,000 from as a bank loan. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

Test Preparation Tutor’s mission is to become the recognized local leader in its targeted market for standardized test focused academic tutoring.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the teaching industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Test Preparation Tutor, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Test Preparation Tutor requires $50,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of Test Preparation Tutor, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Test Preparation Tutor. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the standardized test tutoring services offered by the Company. The Company will provide high school level with extensive standardized test tutoring services for students. The Company will have three part time tutors rendering the services to the students on behalf of the Company. Please note that the pricing for the Company’s services will be further discussed in the fifth section of the business plan. The Company will provide test preparation tutelage for the PSAT, SAT, SAT II, and ACT tests that are used as part of the college admissions process.Prior to hiring a tutor to work for the Company, the business will have the applicant undergo a rigorous background check to ensure that they are properly qualified to not only provide test preparation tutoring services, but also to ensure that they do not have a previous criminal record. The Company will also generate secondary streams of revenue from the sale of academic workbook materials used in conjunction with the aforementioned test preparation tutoring services.

 

 

 

 

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the academic tutoring industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.

4.2 Industry Analysis

Academic tutelage outside of an accredited institution is a substantial industry in the United States. Currently, there are 5,500 organizations that provide educational programs that are not offered as part of a regular curriculum. Among these businesses aggregate revenues have exceed $2 billion dollars per year for each of the last five years. This industry has had above average growth as competition for placement in highly ranked colleges and other schools has increased significantly. This business is expected to grow as more tutors enter the market. The five year projected growth rate for the industry is expected to remain a 10%. One of the most common trends within this industry is to integrate additional services such as application advising, financial planning, and resume services into a tutoring business. In the future, Mr. Doe may seek to integrate additional services beyond tutoring to provide parents with a comprehensive method of expanding their child’s educational experience.

4.3 Customer Profile

The Test Preparation Tutor’s average client will be a middle to upper middle class family with children that require tutoring services living in the Company’s target market. Common traits among clients will include: • Has a family with two children • Annual household income exceeding $50,000 per year • Is seeking to provide their children with assistance for scoring better on college admission and standardized tests. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Test Preparation Tutor intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of Test Preparation Tutor, Inc.

5.1 Marketing Objectives

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

  • • Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.

  • • Establish relationships with schools, guidance counselors, and teachers within the targeted market.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow Test Preparation Tutor, Inc. to easily target families with high school aged and college bound teenagers within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Test Preparation Tutor will also use an internet based strategy. This is very important as many people seeking local services, such as academic tutors, now the Internet to conduct their preliminary searches. Mr. Doe will register the Test Preparation Tutor with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will showcase the services offered by the Test Preparation Tutor, its tutors, preliminary pricing information, and relevant contact information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the tutoring services that the Company is selling. Finally, Mr. Doe will work closely with local area schools, guidance counselors, and teachers for referrals.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget



6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

  • • Test Preparation Tutor will have an annual revenue growth rate of 16% per year.

  • • The Owner will acquire $50,000 of debt funds to develop the business.

  • • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are moderately sensitive to changes in the general economy. To many parents, their children’s educations are an absolute necessity, and only a severe economic recession would result in a lower revenue base for the business. Additionally, Mr. Doe will strive to keep the costs of his Company’s services low, and as such, the business will be able to thrive despite the current deleterious economic conditions.

7.3 Source of Funds


7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

 

7.7 Balance Sheet

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7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis