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Business Plan Perfection Institute, Inc.

BusinessPlan: Perfection Institute, Inc.

Tableof Contents

Statement of Purpose, Goals, and Objectives 3

Vision 3

Mission 3

Objectives 3

Executive Summary 3

Brief Business Description 4

Company Structure 4

Market Analysis 6

Business Gap and Target Audience 6

SWOT Analysis 6

Strengths 6

Weaknesses 7

Opportunities 8

Threats 9

Marketing Action Plan 10

Advertising 10

Sales Promotion 11

Website Marketing 12

Personal Selling 12

Public Relations 13

Marketing Action Plan Summary 13

Financial Projections 16

Supportive Business Plan Documents 21

Student’s Fee Structure Contents 21

Training Agreement 21

References 24

Statement of Purpose, Goals, and ObjectivesVision

Tobe an outstanding student training institute on application of HazardAnalysis Critical Control Point (HACCP) principles on food safetymanagement and produce highly qualified personnel.

Mission

Toensure consumption of the healthiest and safest food from farmsthrough the manufacturing and preparation processes to the mouth.

Objectives

  1. Offer a conducive education environment for individuals working in food related departments in companies, hospitals, and other organizations.

  2. Provide detailed and clear instructions and assessments for high-quality training

  3. Use technology to come up with effective and efficient means and modes of instruction that increase the accessibility of learning and learning materials to students.

  4. Enable students to participate in and promote innovative, inventive and creative activities in the field of food safety through research.

  5. Provide guidance, leadership and consultation services to the students and communities they serve.

Executive Summary

Aftermy graduation with a bachelor’s degree in nutrition from KingFaisal University, I was privileged to secure a three years job in ahospital as a nutritionist. At the same time, I managed the nutritiondepartment. From the hospital, I acquired a lot of experience. One ofthe most crucial skills that I gained as part of my experience is theapplication of HACCP principles. It is the acquisition of theseskills that largely inspired me to start this business. The SaudiArabian community is in dire need of food safety professionals andnutritionists who are well conversant with the application of HACCPprinciples. It is upon the identification of this need that I startedthinking of how I could satisfy it. It is the society’s need totake nutritious meals that makes the presence of highly qualifieddietitians and nurses essential. The business is to be located in theDammam region in Saudi Arabia. The Perfection Institute, Inc. intendsto serve more members of the society’s social middle class than thelower and the upper classes.

Brief Business Description

Servicesoffered include

  • Provide material resources relating to nutrition and food safety

  • Teach and train about HACCP principles

  • Conduct exams and award successful candidates with internationally acceptable certificates

  • Provide accommodation for students at a specified fee

  • Hold sessions with members of the community who have nutrition-related vulnerabilities without charging them as part of the organization’s corporate social responsibility

  • Liaising with other local and international learning institutions in the same industry to organize for forums where students can debate on various problems.

Company Structure

ThePerfection Institute is owned and operated by Yousef Al Yousef who isa nutritionist with a bachelor’s degree in nutrition from KingFaisal University and a master’s degree in clinical nutrition fromthe Life University. The organization has seven full-time employeeswith three of them being full-time lecturers. Besides, threepart-time lecturers will be hired for the start-up.

Theinstitution operates in a three storey building in Dammam (one of themost economically prosperous cities in the eastern province of SaudiArabia). Clients (mainly potential students) are mainly served in asmall front office (480 square feet). Beyond providing serviceswithin the institution, Perfection Institute, Inc. enters into legalcontracts with interested organizations to train their employeesabout the application of HACCP principles for food safety. In mostcases, if employees exceed ten, the Perfection Institute, Inc.prefers training them from their places of work.

Beinga learning institutions that accommodates some of the studentswithin, the organization runs on full-time basis. Even so, PerfectionInstitute, Inc. maintains the following office hours:

Market AnalysisBusiness Gap and Target Audience

Thecompany’s target audience is corporations especially those in thefood, hospitality and health sectors in Saudi Arabia and the largerMiddle East region. I also target the employees of theseorganizations individually. As such, one may apply to study in theinstitution as an individual self-sponsored student or theirorganizations may do so on their behalf. The current need of thisaudience is an institution that comprehensively offers training onthe application of HACCP principles and food safety. The business gapis that such institutions do not exist in Dammam and the best thatpeople do (when they are interested) is to study from an onlineplatform. This is the gap that the Perfection Institute, Inc. intendsto fill.

SWOT AnalysisStrengths

  • I am a nutritionist and, therefore, well aware of what should be taught in the institution. There is, therefore, a considerably high likelihood that the curriculum and the syllabus will be relevant unlike in cases where institutional heads are technocrats.

  • I will soon be graduating with a master’s degree in clinical nutrition. This poses as a major personal as well as organizational strength because I will be well updated with the current trends in this fields and the challenges that practitioners are faced Loyal, experienced and committed members of staff.

  • Competitive products the international certificates.

  • Highly qualified contracted professionals also pose as a major strength for the organization.

  • Strong and credible examination system

Weaknesses

  • One of the two main weaknesses that are likely to influence the performance of the organization is my inability to delegate. I am not able to fully and comfortably delegate tasks to individuals without interfering with their work. I feel that they might not do it as well as I would have done it. This makes employees feel that I do not believe in them.

  • Secondly, I am so passionate about what I believe is right. As such, I might not consider the other party’s stance if I believe that my stance is right and the best. This makes other individuals (especially the subordinates) to perceive me as a dictator .

  • The organization at large is also faced with various weaknesses including the weak financial base with (Thomas et al., 2014).

  • The Perfection Institute, Inc. is a private organization and cannot, therefore, be financed by the government.

  • Being a startup, the organization has low capital investments and low capacity to raise funds from other sources such as donations.

  • Weak legal framework that does not adequately address the challenges facing the firm as a startup.

Opportunities

  • Potential to increase financial base through promotion of the organization’s products

  • Government commitment to finance small and medium enterprises

  • In the internal customer pillar, the organization has rare internal skills that can be exploited

  • Potential to integrate ICT into all the internal process operations thereby making them more efficient and effective

  • The capacity to build human capital also poses as a major opportunity for the organization

  • Potential to strengthen the research function at the Perfection Institute, Inc. and exploit it.

  • Potential to benchmark against world standards to improve service delivery processes.

  • Potential to focus on the core processes and outsource the non-core functions

  • In the learning and growth support pillar, the organization has the potential to develop an integrated research function (Hollensen, 2015).

  • The capacity to automate the internal processes and improve internal efficiency and effectiveness

  • The opportunity to enhance existing internal talents and developing a succession plan.

Threats

  • Competition from colleges and other institutions of higher learning offering nutrition and food safety studies (both local and international)

  • Ever increasing cost of administering the services.

  • The main threat in the internal customer pillar is the weak succession planning

  • Increasing costs of production

  • Cases of internal examination irregularity thereby interfering with the organization’s credibility and perception by the people.

  • High staff stress levels

Marketing Action PlanAdvertising

Advertisingis one of the many tools of promotion that the Perfection Institute,Inc. intends to use. The organization intends to use visual, audioand print media in its advertising efforts (Gallagher &amp McGorry,2015). For the visual media advertisement, the organization intendsto use the MBC TV while MBC radio will be used for the audio mediaadvertisement. The Saudi Gazette will be preferred for print mediaadvertisement over other newspapers. The target audience isindividuals who work in the food safety and nutritional companies.Advertising on the TV will be the first, followed by audio media andprint media advertisement in that order. These adverts will be madefor two consecutive years with a frequency of eight, twenty andeighteen days per month in the visual, audio and print mediarespectively.

Sales Promotion

ThePerfection Institute, Inc. also intends to use sales promotion as anadditional tool. The main intention behind this is to drive upshort-term service sales. While the organization will use advertisingto prove to the customer the reason behind purchasing its services,it will use sales promotion to provide incentives to the customer. Assuch, the Perfection Institute, Inc. will use various discountingrates including free training for one employee for each twentyemployee that a company registers with the institute for training.Trade incentives such as price offs will as well be used based on theorganization’s discount policies. In addition to this objective,the sales promotion activities will as well be used to grab theattention of new customers who will be the majority going by the factthat the Institute is a startup. Other than targeting the newcustomers, the sales promotion efforts will also target existingcustomers with the intention of rewarding them so that they will becompelled to refer other customers to the Institute. Sales promotionis the second priority, coming after advertising, and the proposedtime frame is five strategic years with a frequency of six months perannum.

Website Marketing

Itis another crucial tool of sales promotion especially in today’sworld which is a global village due to the high levels of technology.The institute’s website is considerably important, especially forthe occasional bloggers. Website marketing will target the youthfulpopulation (which forms a considerable percentage of the institute’smarket). Most of the young people desire to acquire information fromonline platforms as opposed to booklets and brochures (Hutt &ampWalker, 2015). Bonuses will be awarded to those who share theorganization’s information using their personal domain names.Another promotion tool that will be used is the social mediaplatforms such as Facebook, Twitter, Instagram and WhatsApp amongstothers.. By and large, website marketing and social media marketingwill be the third priority. Owed to its low variable costs ofproduction, this tool will be used throughout the institute’sstrategic period of five years.

Personal Selling

Thishas been used in this context to refer to the type of promotion toolwhere sales personnel will be used to sell the institute’s servicesdirectly to the clients. The main activities include deploying a teamof five sales personnel in various regions in Saudi Arabia. Themembers will individually approach clients (both companies andindividuals) and sell the services to them. This tool will, however,be more dedicated towards reaching self-sponsored individuals asopposed to organizations. These will, therefore, be the main target.Even if the plan is to use all the promotion tools simultaneously,this tool is priority number four in the action plan. The proposedtime frame is three years with a frequency of 20 weeks per annum.

Public Relations

Thisrefers to activities that are geared towards interacting withcustomers and other stakeholders. The main activities includeshandling press releases, creating a good corporate image andmaintaining it, scanning issues in the public domain and assessingthe people’s perception of the organization. Most of theseactivities are not driven by the organization’s decision makingprocesses but by the consequences of the external environment. Thepublic relations cannot, therefore, be fully relied upon forpromotion of the organization. Besides, it is an indirect marketingtool since the immediate goal is not to have sale’s increment onorganization’s services but to maintain proper relations withmembers of the public. As such, the tool is the fifth priority with aproposed timeframe of five strategic years.

Marketing Action Plan Summary

Belowis a summary of the marketing action plan:

Activity

Target Market

Priority

Proposed Time Frame

Advertising

  • Visual Media: MBC TV

  • Audio Media: MBC Radio

  • Print Media: Saudi Gazette

  • Employees working in the food safety and nutrition sector watching, listening and reading at different house.

One

2yrs

Sales Promotion

  • Discount

  • Allowance

  • Price pack

  • Purchasers of short-term services

  • New customers

  • Existing customers

  • Brand switchers

  • Foot sitters

Two

5yrs

Website Marketing

  • Perfection Institute, Inc. website

  • Social Media Platforms e.g. Facebook and Twitter

  • Youthful clients

  • Occasional bloggers

Three

5yrs

Personal Selling

  • Deploying sales personnel in various regions

  • Approaching both individuals and organizations directly

  • Self-sponsored individuals in hospitals, food safety, and nutrition-oriented companies

Four

3yrs

Public Relations

  • Handling press release

  • Creating a good corporate image and maintaining it

  • Scanning Perfection-related issues in the public domain

  • Assessing the people’s perception of the organization

  • Members of the public

Five

5yrs

Financial Projections

Asa startup, the Perfection Institute, Inc. will be a medium size. Thefinancial estimates made here are based on this fact. Like mostinstitutions of higher education in Saudi Arabia, the PerfectionInstitute, Inc. will be having short breaks per annum. Even so, thiswill not affect the organization’s finances because payments willbe done at every beginning of a new semester for continuing studentsand upon admission for new students. The goals is to increase theinstitute’s revenues by 20% per annum.

Thefigure below provides the projected annual revenues generated thevarious services offered in the institution (the projections havebeen made for the first two years):

Year 1

(50 Students)

Training (Tuition)

Examination Administration

Accommodation

Forums, Workshops and Seminars

Semester One

January

$150000

$5000

$810

February

$5000

$500

March

$5000

$200

April

$12500

$5000

Semester Two

May

$100000

$5000

June

$5000

$810

July

$5000

$300

August

$12500

$5000

Semester Three

September

$75000

$5000

$850

October

$5000

$700

November

$5000

$650

December

$12500

$5000

Year 2

(60 Students)

Training (Tuition)

Examination Administration

Accommodation

Forums, Workshops and Seminars

Semester One

January

$180000

$6000

$972

February

$6000

$600

March

$6000

$240

April

$12500

$6000

Semester Two

May

$120000

$6000

June

$6000

$972

July

$6000

$360

August

$12500

$6000

Semester Three

September

$90000

$6000

$1020

October

$6000

$840

November

$6000

$780

December

$12500

$6000

Table1: Projected Annual Revenue for Two Years

Source:Author

Theestimated expenses per semester in both year one and two are as shownin the table below:

Year One (Expenses)

Semester One

Semester Two

Semester Three

Accommodation

$10000

$10000

$10000

Telephone

$1000

$800

$950

Office Equipment

$8500

$8000

$8500

Advertising and Marketing

$5000

$4000

$3000

Insurance

$3000

$3000

$3000

Legal fees

$2000

$2000

$2000

Entertainment and Gifts

$1500

$1750

$1800

Library (Books and other learning resources)

$5000

$4500

$4000

Internet Fees

$1000

$1500

$950

Salaries and wages

$7000

$7500

$8000

Printing and Reproduction

$1000

$950

$1500

Official Travel

$500

550

$600

Total Expenses

$49500

$44550

$41300

Year Two (Expenses)

Semester One

Semester Two

Semester Three

Accommodation

$12000

$12000

$12000

Telephone

$1200

$1000

$1050

Office Equipment

$10000

$9500

$10000

Advertising and Marketing

$6000

$5000

$4000

Insurance

$4000

$4000

$4000

Legal fees

$2000

$2000

$2000

Entertainment and Gifts

$1700

$1950

$2000

Library (Books and other learning resources)

$6000

$5500

$5000

Internet Fees

$1000

$1500

$950

Salaries and wages

$8000

$8500

$9000

Printing and Reproduction

$1200

$1100

$1300

Official Travel

$500

$550

$600

Total Expenses

$53400

$52600

$51900

Figure2: Estimated Expenses for Two Years

Source:Author

Thetable below provides a summation summary for the projected netrevenue for two years for the Perfection Institute, Inc. (figureshave been adapted from figure 1 and figure 2 above):

Year One

Year Two

Semester 1

Semester 2

Semester 3

Semester 1

Semester 2

Semester 3

Total Revenue

$184010

$133610

$109700

$218312

$157832

$129140

Total Expenses

$49500

$44550

$41300

$53400

$52600

$51900

Net Revenue

$134510

$89060

$68400

$164912

$105232

$77240

Net Revenue per annum

$291970

$347384

Figure3: Projected Net Revenue Summation Summary

Source:Author

Supportive Business Plan DocumentsStudent’s Fee Structure Contents

Non-refundable admission fee

Tuition Fee

Library Fee

Internet Charges

Educational and Software Aids Fee

Other Fees

Accommodation fees

Insurance

School ID charges

Student’s Union fees

Bus Fees

Total Semester Fees

Thespecific fee charges will vary depending on the semester and theyear.

Training Agreement

Student’sProfile

Dateof Birth:

Phone/Email:

Employed/Unemployed:

MaritalStatus:

Instructor’sInformation

Email:

Phone:

Responsibilityof Training Participants

  • Portray positive image of the institution

  • Attend lessons as scheduled

  • Relate with other students, workers and instructors in a courteous and responsible manner

  • Meet the institution’s codes of ethics and behavior

  • Comply with the institution’s health and safety regulations

  • Complete weekly assignments and sit for monthly continuous assessment tests (CATs)

  • Report to the instructor, two days before if not able to report to the institution for classes

Parents/Guardians/ Spouses

  • Give all necessary support to the trainee

  • Encourage the trainee to display strong institutional ethics

  • Emphasize on the significance and necessity of good attitude

  • Organize with the learner for the payment of fees on or before time

PerfectionInstitute’s Management

  • Ensure conducive environment for learning

  • Assign students to instructors and supervisors who will take the through the course

  • Monitor the student’s activities throughout the course of the study

  • Assess the performance of the student in liaison with the school board of examiners.

ITOTALLY AGREE WITH THE CONDITIONS SET FORTH IN THIS AGREEMENT

Student:__Date_

Parent/Guardian/ Spouse Date_

ManagementRepresentative&shy __Date_

References

Gallagher,M. J., &amp McGorry, S. Y. (2015). Service learning and the capstoneexperience. InternationalAdvances in Economic Research,21(4),467-476.

Hollensen,S. (2015). Marketingmanagement: A relationship approach.Pearson Education.

Hutt,M. D., &amp Walker, B. A. (2015). Bridging the Theory-Practice Gapin Business Marketing: Lessons from the Field—The JBBM at 21.Journalof Business-to-Business Marketing,22(1-2),67-72.

Thomas,D. F., Gudmundson, D., Turner, K., &amp Suhr, D. (2014). BusinessPlan Competitions and Their Impact on New Ventures` Business Models.Journalof Strategic Innovation and Sustainability,10(1),34.