bright school system

8/2/2019 Bright School System

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Of

THE BRIGHT FUTURE SCHOOL

SUBMITTED TO:

Mr. YASIR Ali SUBMITTED BY:

ZAIDYAZDANI

NADIA IKRAM

RABIA NAJAF

RABIA RAFIQUE

SADAF SHAZADI

WAQAS ALI

MBA 4th Semester

DEPARTMENT OF BUSINESS ADMINISTRATION

1



In the Name of ALLAH, The Most Gracious, The Most Merciful

Who is the most Beneficent and most Merciful, Who guides us in the darkness and helpsIn difficulties, without this help one can never achieve destination.

All respects are for His“HOLY PROPHET HAZRAT MUHAMMAD (P.B.U.H)”

Who enlighten out the minds to recognize our creature.

2



Acknowledgment

Don’t believe what your eyes are telling you.

All they show is limitation.

Look with your understanding,

Find out what you already know,

And you’ll see the way to fly.

(Richard Bach)

First of all I would like to say Thanks to almighty ALLAH (Creator of All),

who is most merciful, most beneficent & benevolent. He blessed me abilities to accomplish this

task successfully.

I would like to say special thanks to my teacher YASIR ALI who always provided me all of those facilities, which I need; thanks to their whole support for me. Who taught me that how to

evaluate the darker side of mirror with deep insight look at brighter side & the rules of research.

This thesis is because of all the efforts which my teacher has made, so that I could able to work hard with great patience & determination.

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TABLE OF CONTENT

Sr. No Contents Page No

1 Executive Summary 05

2 Company Products & Services 06

3 Business Concept 064 Sector Brief 09

5 Market & Strategies 09

6 Marketing & Operations 19

7 Management & Organizations 22

8 Financial Section 34

9 Attraction For Investor 42

10 References 43

(1) Executive Summary:

The Bright Future School has taken a step towards the building of student’s mind to

make a bright future. It is located in a highly congested, violence prone area at a

considerable distance from the centre of the city. Our School is situated at Satiana Road,

Faisalabad. The school will open its activities with strength of 230 students. It consists

of two blocks with 17 rooms. In Pakistan, a few institutions have been providing such

kind of thinking, so our school will be coming with a new thinking especially in

Faisalabad. Our school has been affiliated with Faisalabad board.

In our School all the teachers staff must be graduated or Master’s degree holder.

Special lectures have been arranged for the students that help in the character building of

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students. We are coming in Faisalabad with a new thinking and by taking a great

innovation in the field of Education. We believe that a day will come when each student

must be able to select its own future according to its own desire.

Our school is also providing lab facilities so that no student would face any

difficulty in their respective subjects. The school is trying to provide every kind of

modern facility especially for little kids. We hope that in coming years we will be in a

position to expand our school network and in providing the latest technology to meet the

modern challenges.

The Bright Future School.

(2) School Services:

Our school is providing the services of quality and research based education to the student of area

of Satiana road and nearly areas. We are running school, and our school business is not

complicated like other businesses that have provide a lot of services. So our key service is

education that we are providing our students.

(3) Business Concept :

The Bright Future School is situated on Satiana road. It comprises on one kanal area.

5



We introduced this type of school system for the students to understand about their

future. The majority of the students don’t know about their future, about their aim in

life, for which purpose they comes to school.

This is the main problem for student that is they don’t know what they want to become

After complete their education due to lack of awareness. The purpose of our school is to

Provide proper Guideline, our school provides a path a bridge to their future journey.

Our Vision

The best choice…the best results

Our Mission

The mission of The Bright Future School is to guarantee the superior preparation and

Performance of every child in school and in life

Our Goals

Our School will provide quality, universal early childhood educational opportunities. To All three

and four-year olds as measured by numbers of children served and a Research-based kindergarten

readiness assessment. Our School will recruit, prepare and support effective teachers and leaders as

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measured by the number of qualified professionals entering the profession. Demonstrated Mastery

of skills and competencies, and improved student performance.

We provide quality education through following means:

1 Awareness

2 Direction

3 Motivation

4 Set a Base

5 Build Confident

6 Proper Guidance

7 Environment

Business Revenue Model:

Income:

Classes Per month fee No. of students Total Fee

Nursery to prep

1 to 56 to 8

9 to 10

700 30 21,000

900 100 90,0001,200 60 72,000

1,500 40 60,000

Net fee 243,000

Total Fee 243,000

Add: Other income 7,000

Total Income 250,000

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Expenses:

Staff Salary 160,000

Building Rent 50,000

Utilities Bills 15,000

Misc. Expense 1,500-------------

Total Expense

Total profit

Threats

1 Survive

2 Competition

(4) Sector Brief:

The Education industry is only one sector in Pakistan, who progress day by day because the

increase in growth rate of population of Pakistan. Every person wants to educate his children. In

one survey of 2009 Pakistan has 69 universities and in 2010 Pakistan has 86 universities. This is

the great example of growing education sector in Pakistan. This sector also play a great role in

GDP of Pakistan and its contribution is 1.07% which was increase from 0.85%. It is very helpful

for investor to invest in this sector to earn high profit this sector plays a vital role in the

development of Pakistan as well as in Faisalabad this sector is also developed day by day.

230,000

20,000

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(5) Market and Strategy:

1. Competitor Analysis:

After deeply study the competitors which are following:

• Dar-e-Arqam school(peoples colony)

• Kingston school system(peoples colony)

• Chanar school system(peoples colony)

• Punjab school system(peoples colony)

• Umar school(peoples colony)

• Faisalabad cadet school(peoples colony)

• Paragon public high school(Mohammad abad Satiana road)

• City cadet school(peoples colony)

We‘ve come out with the following results:

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Description Dar-e-

Arqam

school

Kingston school

system

Paragon

public high

school

Punjab

school

system

Chanar

school

+system

Umar

school

Faisalaba

d cadit

school

C

ca

sc

ormation 1990 2008 2007 2007 1998 1988 2004 20

New

hinking

Islamic

revolution

Good level

education

Well

plannedcourses

Research

based

Quality

education

Free

education

Quality

education

Q

y

arget Areas OverallFaisalabad

People colony,D block,Muhammad

abad,garden

Colony

Mohammadabad,

people

colony,D- block

Peoplecolony,

D block

Satianaroad, D

block and

peoplecolony

Peoplecolony, D

block

Faisalabad Fsar

trength 100000 300 325 200 550 350 250 20

Affiliation 1-4 oxford

5-10 Fsd

board

Faisalabad board Faisalabad

board

Fsd

board

Faisalabad

board

1-4

oxford

5-10 Fsd board

Fsd board Fs

bo

ee schedule 1500-2000 500-600 1-5=700

6-8=800

9-10=900

400 500 400-500 1800 15

Avg. No. of

tudents in

ne class

20-25 20-25 30-35 15-25 30-35 20-25 30 25

Branches 20 2 2 1 2 1 6 4

eachingtaff

70%females

30% males

All females 1-5 females

6-10 males

Males&

females

Males&

Females

Allfemales

Males andfemales

M&

fe

es

Qualification

f teachingtaff

Masters and

Graduate

Masters and

Graduate

Graduate Masters

&graduates

FA and

Bsc

graduates Masters M

rs

No. of eaching

taff

15 14 12 10 16 12 16 13

Area of

chool

20 Marla 13 Marla 20 Marla 15 Marla 15 Marla 25 Marla 20

M

upplier No specific Akram uniform&

Zia book,D-ground

Anum

garments

Al gazal

& local

market

Al gazal&

Localmarket

Local

market

Local

market

Lo

m

t

10



Strengths and weaknesses for different schools

SCHOOL NAME STRENGTHS WEAKNESSES

Dar-e-Arqam Schoola) Providing special Islamic

education to students.

b) Good school

spirit/Community support.

c) Establishing workshops.

d) Providing extra

co- curriculum activities.

e) District reputation.

a) Limited technology.

b) Lower pay for teachers.

c) Less time for recess and lunch.

d) Teacher to student ratio is very

high.

e) Strict scheduling for female

teachers.

Kingston School systema) Highly qualified staff.

b) Special support for Kids

c) Support staff

programmers.

d) Enrichment programmers.

e) Place for students to go

sledding.

a)little or no funds for different

programmers

b)No classroom library

c)Curriculum activities are less

d)Strict scheduling

e)New established

Paragon Public High school

a) Best opportunities for

students

b) Jumpstart to literacy

c) Positive school board

d) Maintaining art and

a)Class sizes are very limited

b)No play ground for students

c)Expectation of teaching staff are

not clear

d)Unilateral decision making

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curriculum activities in

students

e)Need art room

Punjab School System a)Staff is highly qualified

b)Good communication

between teachers and

students

c)Supportive programmers

for needy students

d)Good decision making

among teaching staff

a)No. of staff is very limited

b)No planning for the future

c)Strict adherence to personnel

policies

d)Children do not participate in

special programmers

e)Limited technology

f)No computer lab

Chanar School System

a) Jump start to literacy

b) Field trips to a variety of

places.

c)Common planning time

d)Open communication

between teachers and

students

e)Discipline is a big issue

here

a)Unsupportive community

b)Teachers are not able to extend

their programmers for advanced

students

c)Teaching staff is not highly

qualified

d)Lower pay for teachers

Umar School Systema)Fee schedule is in hands of

a parents

b)Best opportunities for

students

c)Test scores are improving

a)Need more cohesiveness among

staff

b)No planning for the future

c)Lack of respect among staff and

administration

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d)A desire to improve d)No special programs for

students

Faisalabad Cadet Schoola)District’s reputation

b)Supports programs for

students are well

programmed

c)Positive school board

d)Behavior coaches

e)Jumpstart to literacy

f)Class size conducive to

effective institution

a)Need more general supportive

staff

b)Lack of wrap around approach

with external school resources

c)Unilateral decision making

d)Lack of advanced technology

City Cadet School

a)Maintaining art and

curriculum activities in

students

b)Support staff and

programs

c)Reputation is very high

d)Community connections

are well supported

a) Teacher to student ratio is very

high.

b)lower pays for teachers

These schools are our competitors on the basis of providing quality education and researched

based education because most of the schools provide quality and research based education to the

students.

Customer Analysis:

After the study of these schools we analyze that customers considers the following factors:

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• Easily accessible location,

• Comfortable environment,

• Fee situation,

• Quality of education,

• Computer labs

• Practical work

• Security

• Qualified & experienced faculty

• Attitude toward future career

• Ethical concerns

• Co curricular and extra curricular activities

So after the study of customer analysis we are hoping to provide these all types of facilities to the

students.

Supplier Analysis:

After visiting the supplier analysis of our competitors we conclude that the bargaining power of

supplier is very low.

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• Stationery

• Uniform

• Furniture

• Computers

• Utilities

These are all available from the market easily and there is no specific supplier provide these items

to different schools which are our under study. So we have to face less bargaining power of

supplier to enter in the market. But some specific suppliers provide uniform and books to some

specific schools like Al ghazal garments provide uniform to Punjab school system and Chanar

School but these schools purchase books from local market and there is no specific supplier who

provides books and uniform to other schools and these are all available on the above table.

MARKET OPPORTUNITY ANALYSIS:

There is an opportunity to grow in the market because we are entering with a new thinking.

• We can offer surrounding town’s access to our programmers and facilities.

•

Elect students who support public education.

• Increase our branches in different cities.

• Clubs for non-athletic students.

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• Starts carrier service for students.

• Technology improvements.

• To create ability in students to express their ideas.

• Differentiated teaching programs.

• We can provide a pick and drop service.

Threats:

• Under valuing education.

• Teacher’s retention against competitive salaries.

• Taxpayers association.

• Board rules and regulations.

• Global changes.

•

Funding for education.

• Family responsibilities of staff.

BUSINESS STRATEGY :

Our business is following a differentiation strategy because we are providing services by taking

new thinking and innovation.

We are providing services of:

Student’s mind building so that he must choose his occupation according to his own choice

• Extra curriculum activities

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• Modern techniques of education

• Different workshops of students

• Hiring educated faculty

• Organizing seminars on different projects

• Brief review on Islamic history

Strategies at functional level:

Marketing Strategy:

we’ll market our school in the following ways.

1. Print media

2. Electronic media

Print media:

Postures

Banners

Newspapers

Pamphlets

Electronic media:

FM

Cable

Finance strategy:

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To get fees from students is a big source of our finance. We can also generate finance through

canteen.

HR Strategy:

We build a proper HR department which will recruit, select, and train the staff for a successful

organization HR department must be necessary.

Our strategy to grow and compete in the market is product differentiation not the cost

minimization because we provide better and quality education and provides a platform to the

students to choose their field of life in the early stage of school.

Porter’s five forces model

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Rivalry of competitors:

After studying a brief data about our competitors, we come to know that there is a strong

competition if we enter into market. As we are coming with a new invention so we must try to

compete and complete our vision.

Bargaining power of suppliers:

Bargaining power of supplier is very less because everyone is purchasing in local market. There is

no specific supplier that providing their necessities. So if we want to purchase anything we can get

it easily in local market without any difficulty.

Bargaining power of customer:

Bargaining power of customer is very high because everyone is coming in market with different

inventions. So if we enter into market we can face a lot of problems in attracting customers. We

must adopt a comprehensive policy in order to eliminate the problem of customer bargaining.

Threat of substitutes:

We face the threats of substitutes like,

• Government schools

• Madras as

• Other private schools.

Threat of new entrance:

19



We face the threat of new schools just like other schools are facing the threat of new entrance of

school in the market. After our study we analyze that there is no entrance of school in the market

except our school. So, if any school enter in the market then we face like other schools face.

Key success factors:

• Price competitiveness

• Quality of education

• Class environment

• Customer loyalty

• Easily accessible location

• Better management

• Advertisement

(6) Marketing and Operations:

Private school is a business just like other business and must compete not only with

Other private schools but with public schools that offer their services for free. A solid marketing

plan is essential for success.

The marketing and operation in our business of school is not multiphase and complex. We have

a simple product which is education and the education does not need any complicated process just

like production process in industry. Our qualified and educated staff is a channel of distribution for

our school.

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VALUE CHAIN ANALYSIS:

We divide the chain into 3 categories for flourisher operation of our school to make sure the

quantity of education as well as the mind grooming and mind building of our school. All of our

department work like a team to achieve the goals of our school.

1 Primary education department

2 Middle education department

3 High education department

Primary Education Department:

It is a very initial stage not only for school which is newly entered in the market and also for

students. The base of the students become in the stage. It is also a very difficult stage for teachers to

satisfy and students as well as their parents that our school to provide the quality of education and

our school place from where children take a direction to their future profession. This department

will work in team work with other department to achieve the objectives. This department also

works to retain the students for long period. This department also plays a vital role to organize the

functions for children like debates etc.

Middle Education Department:

In our school this is the actual initial stage for any student of our school on which the student

decides the right path which is helpful for the future. The marketing campaign of every successful

school comprises of their superior metric result which attract the student and their parents to

become the student of that school. This department also organizes the extra curricular and co

curricular activities for the students of middle education students.

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High Education Department:

This department deals the students in class 9 to 10 and this department plays a role of bridge for

our students to their career building. This department trying to improve knowledge and hidden

skills of our student to achieve their target in the shape of showing good result in metric and

enhance their knowledge to choose their relevant field study in future. This department also

organizes the workshop for the students especially for science students and also organizes the

functions of annual ceremony for prize distribution.

Our education departments collaborate each other for student’s future to improve their

confidence level and specific future study. How much we provide such a brilliant students. It is the

positive sign for the growth of our school.

We use print media and electronic media for the marketing of our school. And we use different

ways in print media like;

• Pamphlet

• Newspapers

• Broachers etc.

And in electronic media we use

• Local cable TV

• FM etc.

22



(7) Management and Organization:

HIERARCHY OF SCHOOL

Principal

Primary

(7 teachers)

Middle

(3 teachers)

High

(3 teachers)

1 from

Primary dept.

1 from

middle dept.

2 from high

dept.

Accountant/Computer

Lab incharge.

Practical lab ass./controller

examination

Sweeper/ Office

boySecurity guard

Adim.

Dept.

23



Who reports whom?

24



Principal

25



Principal

Administration

(4 teachers)

Primary Department.

(1 from this dept.)

High Department

(2 from this dept.)Middle Department

(1 from this dept.)

Nursery Class

Prep Class

One Class

Two Class

Three Class

Four class

Five Class

Six Class

Seven class

Eight class

Nine class

Ten class

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All the operations of school are managed by the administration department and 1 person is

include from primary section and 1 person is include from middle section and 2 persons are include

from high section of education. This department all the jobs like;

Here in this department one of them is leader and others are subordinates of him. But all the fee are

collected by the accountant and all the payments of teachers are made by the accountant also.

Job Analysis:

The opportunity of job is produced by the principal of the school and set the salary of the teachers.

1. Job description:

• Job prerequisites:

For primary section:

• Must be graduate

• 1 year experienced required

• Must work full time

• Must work outside and inside the school

Principal

Administration

Sweeper & security guard Accountant & Lab incharg

27



• Must read and understand English

• Must supply job related references

• Must be 18 years of age

• Must have valid degrees

For middle and higher section:

• Must be B.A, B.Sc. and M. Sc. etc.

• 2 year experienced required

• Must work full time

• Must work outside and inside the school

• Must read and understand English

• Must supply job related references

• Must have valid degrees

The result of analysis was used to generate an organized listing of all the job requirements.

2 Job specifications:

It may includes some points required by job

• Follow established rules and procedures

• To be held accountable for daily and weakly results

• Work in a frequently changing environment

•Focus on making decisions quickly

• Do the work yourself

• Follow clearly specified plans

• Be paid a fixed salary

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• Work on problems related to people

• Work on many short term projects or assignments

• Work within clear lines of authority

• Work on flexible schedule

• Give direction and guidance to others

• Work behind the scenes

• Produce better results of his class

• Work mostly alone

Some points are also to be included in this sections those are as follows

• Knowledge

• Skills

• Abilities

• Work activities

• Work environment

• Work styles

Now we will discuss each point in detail

a) Knowledge:

It represents assets related to knowledge in work related areas of education. The following

list shows some points related about knowledge.

• Knowledge of all the rules and regulations of school

• Complete information about his subject

• Knowledge of laws and legal codes of school

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• Knowledge of the whole educational system

b) Skills:

• Must have good communication skills

• Must have good decision making ability

• Ability to read comprehension

• Ability to identifying complex problems

• Actively looking for ways to help people

• Managing one’s own time and time of others

c) Abilities:

• Ability to make fast simple repeated movements of fingers during lecture to attract students

• Complete hold on oral expressions

• Ability to combine pieces of information to form general rules

• Ability to tell the direction from which a sound originated

• Ability to concentrate on a task over a period of time without being distracted

d) Work activities:

• Observing, receiving and obtaining information from all relevant sources

• To check papers on time

•To fulfill all the requirements about the students

• Handling complaints, settling disputes among the students

e) Work environment:

• To provide good thinking and information to the students

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• To fully cooperate with students

• To guide students in all fields

• To provide extra information about the history of Islam

• To communicate in English with students

f) Work styles:

• Self control during lecture

• Accept criticism and behave calmly

• Being open to change and to considerable variety in the class

• Being reliable, responsible and dependable during lecture

• Persistence in the facts of obstacles

3) Job objectives:

• To make our school fully progressive

• To see the future of students bright and vivid

• To get better results for the school management and its society

• To produce better output by strong management and through better rules and regulations.

We have two types of teachers.

1. Teaching and also perform admin activity

2. Simple teaching

Administration

Administration department include 1 person from primary section and 1 person is

include from middle section and 2 persons are include from high section.

Duties of school Staff .

31



In our school there are different people in different level and also provide different duties.

We also discuss one by one

1) Duties of principal

a) All the board activities like registration, rules and regulation are handled by

b) Principal.

c) All the tax relevant activities perform by the principal

d) To fixed the salary of teacher.

e) General problems are handled by the principal

f) To solve the problem of admin, lab assistant and accountant

2) Duties of administration.

a) To hire the teacher, and conduct the interview

b) To set the date sheet

c) To set the time table

d) To set the papers

e) To fix the fees of the students

f) To hear the problem of sweeper and guard

g) To conduct the staff training program.

3) Duties of Accountant.

a) To handle the computer lab

b) Maintain the record of students.

c) Maintain the record of teachers.

d) Collect the fees of students.

e) Prepare the salary of teachers and other staff.

f) Collect the fine of students.

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g) Present report to principal about all things.

h) To provide the hard copy of date sheet and papers

4) Duties of Lab assistance

a) To control the lab

b) .All the stationary maintain, purchase and provide

c) To purchase the books from market

d) Sell the books to students

e) To report principal about all things

5) Duties of Sweeper

a) To sweep the school early in morning

b) Work for office boy like tea and water from outside the school

c) And report to administration.

d) Any extra activity like help in wear and tear, electric problem etc

6) Duties of guard

a) To open the school early in the morning

b) Co-operate with students

c) Security provide to school

d) Good behave with student, parents of students, teacher and outsiders

e) Give report to administration.

Data Flow Diagrams of “Bright Future School”

A data-flow diagram (DFD) is a graphical representation of the "flow" of data through an

information system. DFD’s can also be used for the visualization of data processing (structured

design).Here we draw some DFD’s of our school. These can be presented as follows:

• Salary

33



• Information

• Job opportunity

• Timetable and other schedules etc.

(a) Salary:

(b) Information:

Any information likes to manage the date function of prize distribution etc.

34



(c) Job Opportunity:

Every job opportunity is produced by the principal and then administration made test and

interview and then selects the right person for right job.

(d) Timetable and Date sheets:

The DFD of date sheets and time table is just like the process of information.

35



(e)Examination Procedure.

Implement in the

school

Time table &Datesheets are made by

the admin department

Passed by the principal

Discuss in the groupof administrative

people

After that

examination are held

as per schedule.

Examination papers

are prepared by the

relevant teachers.

Papers are passed to

the admin dept. and

they discuss on

paper.

Papers are sent to

accountant for

printing.

36



(8) Financial Section:

TABLE - HUMAN RESOURCE:

POSITIONS NUMBER SALARY/

MONTH

TOTALSALARY/

YEAR Administrativestaff

(Rs.) (Rs.)

Principal 1 20,000 240,000

Accountant 1 10,000 120,000

Practical Lab in-

charge

1 6,000 72,000

Faculty members

Primary teachers 7 7,000 688,000

Middle teachers 3 10,000 360,000

High teachers 3 120,00 432,000

Maintenance staff

Guards 1 5,000 60,000

Sweeper/Boy

office

1 4,000 48,000

Total : 18 74,000 1,920,000

37



TABLE – IT EQUIPMENT:

IT Equipment Quantity Unit Cost Amount (Rs.)

Computers-Office 2 10,000 20,000

Computers-Laboratory

8 8,000 64,000

Networking cost Lump Sum 5,000 5,000

Printer 2 2,000 4,000

Total: 93,000

TABLE – FURNITURE & FIXTURES:

38



Principal’s

Office

Quantity Unit Cost Amount (Rs.)

Table and chair 1 10,000 10,000Additionalchairs

7 2,000 14,000

Computer 1 10,000 10,000

Small Table 1 1,000 1,000

Staffroom

Computer table 1 3,000 3,000

Chairs 9 2,000 18,000Small Table 1 1,000 1,000

Nursery &

Prep Class

Tables 12 500 6,000

Chairs 36 500 18,000

Primary &

Middle Section

Student desks 64 700 44,800

Student chairs 192 1,000 192,000

High Section

Student desks 16 1,000 16,000

Student Chairs 48 1,000 48,000Classroom

Cupboard &

Whiteboard

12 2,200 26,400

Teacher Tableand chair

12 2,500 30,000

Computer

Laboratory

Computer LongTables 2 ------- 10,000

Computer 8 10,000 80,000

Chairs 8 1,500 12,000

Cupboard &Whiteboard

1 2,200 2,200

Science

Laboratory

Long tables 4 10,000 40,000Cupboard &

Whiteboard

1 2,200 2,200

Total furniture

and fixtures

584,60039



TABLE – OFFICE & SCHOOL EQUIPMENT:

Office/School

Equipment

Quantity Unit Cost Amount (Rs.)

Air Conditioner 1 28,000 28,000

Ceiling fan 30 2,000 60,000

Energy saver 60 120 7,200

Science labequipment

Lump sum 150,000

Generator-10kVA 1 100,000 100,000

Water tank and

electric motor

1 30,000 30,000

Water colors 2 20,000 40,000

Telephone/facsimile 2 5,000 10,000

Wall clock 6 400 2,400

Security

equipment:

Metaldetector+projector

1+1 3,500+5000 8,500

Total : 440,100

TABLE – AREA REQUIREMENT:

40



Space

Requirements

Area/Room No. of Rooms Total Area

Administrative

Block

(Sq. ft) (Sq. ft)

Principal’s office 154 1 154Staff office 162.4 1 162.4

Lobby 36 1 36

Store room 107.88 1 107.88Toilet 47.4 1 47.4

Nursery, Prep &

Primary Section

Nursery, Prep

Classrooms

238 2 476

Primary Classrooms 280 5 1400

Toilet 41 6 246Middle & High

Section

Classrooms 280 5 1400

Staffroom 125 1 125

Toilet 45 1 45Science Laboratory 242.4 1 242.2

Computer

Laboratory

246.4 1 246.4

Space for corridor &stairs

------- ------ 1400

Total Covered

Area

6088.28

Playground ------- ------ 636

TABLE – FINANCIAL ANALYSIS:

41



Initial Investment Amount

st Capital Investment:ment: Rs. in actual

Office school equipment 440,100Furniture & Fixtures 584,600Computer & Equipment

Prepaid rent

93,000

500,000

Total Capital Cost 1,112,700

Working Capital: Rs. in actual

Building Rent 300,000

Cash 1,625,700

Total Investment 3,038,400

TABLE – FEE INCOME SCHEDULE:

(Year – 1) (Year – 2) (Year -3)Fee Per

student

No. Rupees Fee Per

student

No. Rupees Fee Per

student

No. Rupees

No. of students

New

Old

230 130 180

- 210 320

Total student 230 340 500

Non-Operating

revenue

Security(Refund

able)

Registration fee

Admission fee

1,000 230,000 1,000 130,000 1,000 180,000

1,500 345,000 1,500 195,000 1,500 270,000

3,000 690,000 3,000 390,000 3,000 540,000

Total: 1,265,000 715,000 990,000

Operating

revenue

Yearly Fee

Nursery to prep

1 to 56 to 8

9 to 10

700 30 252,000 800 60 576,000 900 100 1,080,000

900 100 1,080,000 1,000 140 1,680,000 1,100 180 2,376,000

1,200 60 864,000 1,300 80 1,248,000 1,400 120 2,016,000

1,500 40 720,000 1,600 60 1,152,000 1,700 100 1,800,000Net fee 2,916,000 4,656,000 7,512,000

TABLE – ESTIMATED EXPENSE:

42



Particulars Year-1 Year-2 Year-3

No Monthly Total for

the year


the year


the year Salary &

allowance

principal 1 20,000 240,000 1 21,000 252,000 1 22,050 264,600

Faculty

member

Primary

teachersMiddle

teachers

High teachers

7 7,000 588,000 7 7,350 705,600 9 7,700 831,600

3 10,000 360,000 4 10,500 504,000 5 11,000 660,0003 12,000 432,000 3 12,600 453,600 5 13,250 795,000

Admin staff Accountant

Practical Lab.

Assistant

1 10,000 120,000 1 10,500 126,000 1 11,000 132,000

1 6,000 72,000 1 6,300 70,600 1 6,600 79,200

Maintenance

Staff

Sweeper/OfficeBoy

Security Guard

1 4,000 48,000 1 4,200 50,400 1 4,400 52,8001 5,000 60,000 1 5,250 63,000 1 5,500 66,000

Total: 18 1,920,000 19 2,142,000 24 2,881,200

PROJECTED INCOME STATEMENT:

Income Statement Year-1 Year-2 Year-3

Revenue 4,181,000 5,371,000 8,502,000

Salary 1,920,000 2,142,000 2,881,200

Gross Profit 2,261,000 3,229,000 5,620,800General

administration &

selling expenses

Building rental

expense

600,000 600,000 600,000

Utilities - elect, gas,

telephone

200,000 220,000 240,000

43



Diesel Expense 20,000 22,000 24,000

Internet expense 25,000 27,000 30,000Science &

Computer lab

expenses

10,000 12,000 15,000

News Paper Exp. 8,000 8,500 9,000Advertisement 50,000 40,000 30,000

Stationery Exp. 30,000 35,000 40,000

Depreciation Exp. 58,460 52,614 47,352School events &

programmers

50,000 60,000 70,000

Misc. Officeexpense

20,000 25,000 30,000

Total Admin

Expenses

1,071,460 1,102,114 1,135,352

Operating

Income/Loss

1,189,540 2,126,886 4,485,448

Other Income 30,000 35,000 50,000

Net Earnings 1,219,540 2,161,886 4,535,448

BALANCE SHEET:


Assets

Current Assets:

Cash & Bank 2,297,700 3,190,640 5,531,320

Pre-Paid Building Rent 500,000 ----- -----Total Current Assets 2,797,700 3,190,640 5,531,320

Net Fixed Assets:

Furniture & Fixtures 526,140 518,526 538,673Office Equipment 435,100 450,000 475,000

Total Fixed Assets 961,240 968,526 1,013,673

Total Assets 3,758,940 4,159,166 6.544,993

Liabilities & Shareholder’s

Equity;

Current Liabilities

Accounts Payable -----Total Current Liabilities

Net profit 1,219,540 2,161,886 4,535,448

Total Equity 2,539,400 1,997,280 2,009,545

Total capital & Liabilities 3,758,940 4.159.166 6.544,993

44



CASH FLOW STATEMENT:


Operating Activities:

Net Profit 1,219,540 2,161,886 4,535,448Add: Depreciation Expense 58,460 52,614 47,352

Cash Provided by Operations 1,278,000 2,214,500 4,582,800

Financing Activities:

Cash provided by financingactivities

------ ------ ------

Investing activities:

Capital Expenditure 1,019,700 976,140 948,520

Cash Provided by investingactivities

------

Net cash 2,297,700 3,190,640 5,531,320

(9) Attraction For Investo r :

Return on investment (ROI)

First year

Net income / Total assets

1219540 / 3758940 = 0.3333 %

Second year

Net income / Total assets

2161886 / 4159866 = 0.52

52 %

Third Year

Net income / Total assets4535448 / 6544993 = 0.69

69 %

Total asset turnover (TAT)

First year

Net sale / Total asset4181000 / 3758940 = 1.11

45



Second year

Net sale / Total asset5371000 / 4159866 = 1.29

Third Year

Net sale / total asset8502000 / 6544993 = 1.30

Payback period (PBP)

Initial investment = 3,038,400

Net cash flow in 1st year = 2,297,700

Net cash flow in 2nd year=3,190,640 Net cash flow in 3rd year=5,531,320

A+ (B-C)/D= 1+ (3038400-2, 297,700)/3,190,640= 1.23 year

As our business results shows that we make the initial investment of Rs.3, 038,400 and our cash

inflow in the first year is 2,297,700 and in 2nd year is 3,190,640. It shows that our initial

investment will cover with in 2nd year. So our business pay back period is less then two years.

Attraction for Investors.

School Business has a lot of opportunities to grow and earn huge profit because the demand for

education industry product increase day by day and the less chances of failure of business. With

the present era peoples are liking to invest more then ever before. With the rise of education

industry demand.

More, there is no need of huge amount of capital to start this business. Education business gives

Maximum output from the least inputs. The financial results showing that there is huge profit

margin in this business and create more investor attraction

Purposed offerings.

46



This business can be started on Musharikah bases considering the Islamic mode of

financing. In Musharikah both parties invest their resources and efforts and share the profit and

loss in agreed ratio or according to the amount of investment. If investor wants to invest in our

school then he can share the profit and loss with the margin of his investment.

REFERENCE:

• Sir Qamar Waince

• School Principal’s

•Internet

• Friends

• Group coordination

bright school system

Documents