Business Plan Format

Executive Summary Sparks is a socially conscious consultancy that is concerned with the overall well being of the youth who are the major contributors to the working of the society. It offers university students, advice and help on increasing their employability, by giving them training in various fields which will help them in their encounter with the most dreaded part of a potential employee’s life i.e. the gruelling process of getting a job and surviving in it. We help our clients mould themselves according to the corporate world. We exercise special considerations in self evaluation programmes, CV writing training, interview training etc. The goal of SPARKS is to set a monopoly base in the market and to achieve targeted sales and increasing profits year on year. Eventually, entering into new markets like recruitment agencies, expanding into other Emirates and providing newer and better services is the ultimate goal of SPARKS.

1.1 Keys to Success •

To provide services to universities students which would help them in their academics by providing them techniques on effective learning.

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Provide fresh graduates with Pre-Job training which would help transit into the corporate world with ease.

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Improve self-image in university students and fresh graduates and help them feel good about themselves professionally and academically.

1.2 Objectives •

Have an increase in new customer base yearly.

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Have the company's work in our target market covered in the local media.

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To generate sufficient funds. This would enable us to start news paper in education service by the fourth year.

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To expand our reach to other Emirates and beyond boundaries.

1.3 Mission The goal of our company is to make Sparks essential for every youth to achieve their targeted goals by developing their confidence in academic as well as professional lives.

Company Summary Sparks has been a dream for the founders; it was essential for an employment training provider to help universities nurture the lives of their students who would eventually land a job. This service is hard to come by in Dubai, and so the founders decided to create the Sparks employment training consultancy. Sparks’ office is located in Sh. Zayed Road, Dubai as it is in close range of our target market.

2.1 Start-up Summary The table that follows details projected starting costs.

Start-up Requirements

Dhs.

Start-up Expenses Legal Stationery etc. Brochures, banners, advertisement

30,000 5,000 3,000

Insurance Rent

5,000 16,666

Expensed equipment Other Total Start-up Expenses

19,750 4,500 83,916

Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets

550,000 0 123,000 120,000 793,000

Total Requirements

876,916

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Startup Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

83,916 793,000 876,916 228,000 550,000 0 550,000 778,000

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities Total Liabilities

0 100,000 65,000 0 165,000

Capital Planned Investment Local Partner Partner A Partner B Additional Investment Requirement Total Planned Investment

255,000 125,000 120,000 0 500,000

Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities

(83,916)

Total Funding

876,916

416,084 581,084

Services

Sparks is a combination of employment consultancy and training provider. We specialize in formal etiquettes training, communication skill development, effective learning techniques, and pre-job training and job-survival techniques. During summer we would provide fresh graduates with the above mentioned services as well. This essential aspect of Sparks sets us apart from any training institute as we make our resources available to assist students in eliminating barriers to success and fully preparing them to transition into the workplace and, in turn, help improve self image.

Future services include providing students with supplementary CDs and books and the flexibility of online learning by making our services available to international students. Another goal for the future is providing Newspaper in Education to our consumers on weekly basis to increase commercial awareness. Ideally, Sparks would like to provide similar services in other cities as well.

Market Analysis Summary Everyone prefers to have a degree from a well established university which according to the census and the market analysis we have carried out, it is spread within the Academic City, Knowledge Village and University City with an average of 40 Universities. We have a fixed but rapidly increasing consumer base. Our sessions mainly aim to guide current youth towards their goals in the best professional manner. With a very vast multi cultural spread, students are not completely exposed to the actual job market which is very uniform in its standards.

4.1 Market Segmentation Our market segmentation is specific for the youth of today as they are the upcoming individuals of tomorrow’s challenging business world. In the working world, it is necessary for the people to look smart, think smart and deal smart. Therefore we offer guidelines to help them easily fit into this vibrant working world. In our sessions we start from scratch by guiding them to approach, respond and to manage in a professional manner in the working world.

4.2 Target Market Segment Strategy We have designed several ways to receive positive attention and publicity for our first year. We have planned on inviting the head of departments of concerned universities (Knowledge Village, Academic City, and University City) for conveying our ideas for the development of their students. After our company and the universities have come to an agreement, we will be conducting seminars and sessions weekly, starting from the week of commencement of each university.

4.3 Market Needs Our market’s needs are simple: People thrive for excellence and want to excel in whatever fieldthey opt for. In order to achieve this we aim to guide people towards their goals in the best professional manner. It has been determined that our target market is interested in helping youth in their academic life and make them perfect and strong to face the challenging business world. What makes SPARKS essential for every youth is that it develops their confidence in their academic as well as professional life to achieve their targeted GOALS.

4.3.1 Competition Our indirect competition includes recruitment consultancies, training institutes and managerial development. Because Sparks provided all these services for universities, there is no such direct competition.

Strategy and Implementation Summary The Sparks name will became familiar to the education community on different levels and by various methods. Interacting with well known Universities and students makes the pre-job training and effective learning techniques area known. Advertising in local Campus Journals, Arabic and English newspapers, radio helps get Sparks to the mass public. Mailings and newsletters keep our customer base in touch. All these promotional methods mesh together to form a sturdy advertising base for the company to grow on.

5.1 Competitive Edge Our competitive edge is that we offer services which students (future employees) require the most. This package of services helps in the overall development of students and helps them to be better organized and healthy communicators and this sets us apart, as does the availability of all services under one roof.

5.2 Sales Strategy Our strategy for earning revenues is fixed. We will be earning our revenue every month for twelve months. Different services will be provided at different levels. But the prices charged will be same for all the levels. Our

main goal is to keep up our public relations by providing them with our quality services and keeping up to their expectations.

5.2.1 Sales Forecast The Sales Forecast is in yearly detail in the chart, and the summary follows in the table.

Sales Forecast FY 2006

FY 2007

FY 2008

5,900

7,600

8,800

3,000

5,320

5,720

6,200 2,200 4,800

8,740 2,660 6,080

10,320 3,080 7,280

5,900

7,600

8,800

28,000

38,000

44,000

FY 2006 37

FY 2007 37

FY 2008 41

26

26

29

42

42

47

14 24

14 24

15 31

Unit Sales

Self evaluation and etiquettes CV writing &Interview Training Commercial Awareness Skills & management Effective learning Techniques Language and Communication Skills Total Unit Sales Unit Prices

Self evaluation and etiquettes CV writing &Interview Training Commercial Awareness Skills & management Effective learning Techniques

37

37

41

218,300

281,200

360,800

78,000

138,320

165,880

260,400 30,800 115,200

367,080 37,240 145,920

458,040 46,200 225,680

218,300

281,200

360,800

5,040,000

6,840,000

8,976,000

Language and Communication Skills Sales

Self evaluation and etiquettes CV writing and Interview training Commercial awareness Skills & management Effective learning Techniques Language and Communication Skills Total Sales

Management Summary Spark’s location in Dubai will be staffed with thirty employees and three managers. The breakdown of which is given as under. Management will have three managers, each with specific areas of expertise: financials, publicity, human resources. The Instructor’s would be certified with the following qualifications: Certified in Behavioural Interviewing Techniques. Master's degree in Career Counselling Bachelor's degree in Communications Certified Senior Professional in Human Resources (SPHR) Teach interviewing skills

6.1 Personnel Plan The Personnel Plan follows. Details are in the appendix.

Personnel Plan Management Instructors English Instructors Arabic Admin Drivers Others Total People Total Payroll

FY 2008 3 20 5 2

FY 2009 3 23 7 2 2

FY 2010 4 25 9 3 2

2 1 33

1 38

1 45

3,600,0 00

4,770,0 00

5,730,0 00

Financial Plan The plan for Spark’s financial future is steady growth. With a foundation of internal start up investment and additional investment by angel investors, Spark’s has a solid cash base from which to establish itself and build name recognition. The eventual goal is to capture an additional market base of 23% by the end of the third year. The company will breakeven shortly during the second year, increasing our revenues which in turn make the salaries self supporting. The managers and employees are paid modestly, with their pay tied to the success of the company. Even with increasing profits in every year for the first three years, the salary increment is low. But salaries to employees and managers with three years experience with Sparks would be increased.

7.1 Key Financial Indicators Key to the financial success of Sparks is gradual but continued annual growth. While there are times of the year, especially holidays, where sales are expected to be substantially less, but with summer plans set in place, annual growth is imperative. The change in direct costs of providing our services is minor, so increasing the number of clients receiving services will aid the bottom line.

7.2 Break-even Analysis The Break-even Analysis in this plan makes many assumptions to achieve an estimate. Almost all cost in the operations will remain fixed. Salary for employees, rent, and utility costs are all considered as fixed costs.

Break-even Analysis Monthly Units Break-even Monthly Revenue Breakeven Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost

2,333 Dhs.420, 000 Dhs.180 Dhs.146 Dhs.23,7 50

7.3 Projected Profit and Loss 7.4 Projected Balance Sheet : 7.5 Business Ratios: Projected Profit and Loss Accounts, Balance Sheet and Business Ratios are duly verified by an external registered auditor and the audit report is attached to the business plan.