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SHRI RAMSWAROOP MEMORIAL UNIVERSITY

LUCKNOW-DEVA ROAD, UTTAR PRADESH

ENTREPRENEUR PROJECT
ON

“COACHING CLASSES”

SUBMITTED IN FULFILLMENT OF REQUIREMENT FOR THE AWARD OF DEGREE

OF

MASTER OF BUSINESS ADMINISTRATION

TO

SHRI RAMSWAROOP MEMORIAL UNVERSITY

2017-18

Under Guidance of: Submitted by:


Name of the Faculty Guide- Jyoti Dewan Prashant Vikram vishen
Institute of Management, Commerce & Economics Roll No.-201610702010015
SRMU, Lucknow.

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CERTIFICATE OF ORIGINALITY

(To be filled in by the student in his / her handwriting)

I_____________________________________ Roll No __________________of, a full time


bonafide student of first year of Master of Business Administration (MBA)/ Bachelor of
Commerce (H)/ Bachelor of Business Administration (H) Programme (Year) of Shri
Ramswaroop Memorial University. I hereby certify that for this project work carried out by
me at _________________________________________________ the report submitted
in fulfillment of the requirements of the programme is an original work of mine carried out
under the guidance of the industry mentor
___________________________________________________________________ and
faculty mentor _______________________________________________________ and is
not based or reproduced from any existing work of any other person or on any earlier work
undertaken at any other time or for any other purpose, and has not been submitted anywhere
else at any time to the best of my knowledge.

(Student's Signature)

Date:

2
INSTITUTE OF MANAGEMENT, COMMERCE & ECONOMICS
SRMU

CERTIFICATE
This is to certify that the project entitled “Entrepreneurship Project on coaching classes”

submitted by Prasant Vikram Visen [Univ. Roll No. 201610702010015] and in the

fulfillment of the requirement for the award of the DEGREE OF MASTER OF BUSINESS

ADMINISTRATION/ BACHELOR OF COMMERCE (H)/ BACHELOR OF BUSINESS

ADMINISTRATION (H) of SHRI RAMSWAROOP MEMORIAL UNIVERSITY to the

best of my knowledge it is a record of student’s own work carried under our supervision and

guidance. The project report embodies result of original work and the study carried out by the

student and the contents do not form the basis for the award of any other degree to the

candidate or to anybody else.

(Project Guide)

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INSTITUTE OF MANAGEMENT, COMMERCE & ECONOMICS
SRMU

DECLARATION
I hereby declare that the project entitled “Entrepreneurship Project on coaching classes””

submitted by me in the fulfillment of the requirements for the award of the degree of Master

of Business Administration of Shri Ram Swaroop Memorial University, is a record of my

own work carried under the supervision and guidance of Jyoti Dewan To the best of my

knowledge this project has not been submitted to SHRI RAMSWAROOP MEMORIAL

UNIVERSITY or any other University or Institute for the award of any degree.

Name Prasant Vikram Visen


University Roll. No 201610702010015

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TABLE OF CONTENT

 Cover Page
 Certificate of Originality
 Introduction
 An overview of Entrepreneurship
 Entrepreneurship vs. Intrapreneurship
 Entrepreneurship & innovation
 Characteristics of Entrepreneurs critical success factors
2. A model for new ventures : Feasibility planning
 Business concept defined
 What is the purpose of the venture
 What does the entrepreneur want to accomplish with the business ?
 Product - Market Study
 Product Research need for product or service
 Market Research who will buy? Location of consumer define niche? Define
competition?
 Financial Planning
o Financial projections: What cash is needed ? How income will be generated?
Expected expenses or investment needed for operational and investment.

 3. Pre- Start up implementation


 Getting ready to start
 Making projections
o Find resources
o Purchase initial inventory
o Staff needed
o Licenses permits needed
o Facilities and equipments needed
 Bibliography
 Appendix

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Executive Summary

Coaching Company will provide top-quality professional development and


coaching services. The principal officer of Coaching Company believes that
most small businesses and entrepreneurs suffer two major problems. They lack
training or development resources and the depth of knowledge needed to focus
on their businesses from a true "ownership" perspective. Both lead to lowered
expectations, lack of business and personal growth and frequent owner
burnout. Coaching Company believes that it can improve upon and exploit these
weaknesses to gain local market share.

The objectives for Coaching Company over the next three years are:

 Achieve sales revenues of approximately Rs.81,000 by end of year one.


 Achieve sales revenues of approximately Rs.150,000 by year three.
 Achieve a client mix of 60% small business/30% entrepreneurial/10%
individual per year.
 Move into small office space by the end of the first year.

The company will provide its professional development services in the most
effective manner and with an ongoing comprehensive quality-control program
to provide 100% client satisfaction. The company's principal officer sees each
contract as an agreement not between a business and its clients, but between
partners who wish to create a close and mutually-beneficial long-term
relationship. This will help to provide greater long-term profits through referrals
and repeat business.

Coaching Company will institute the following key procedures to reach its
goals:

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 The creation of a unique, upscale, innovative environment that will
differentiate Coaching Company from other coaching or professional
development businesses.
 Educating the business community on what business and strategic
coaching has to offer.
 The formation of a learning environment that will bring people with
diverse interests and backgrounds together in a common forum to
overcome challenges both professionally and personally.
 Affordable access to the resources of business coaching and other
consulting services.

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Introduction

Entrepreneurship is the process of designing, launching and running a


new business, which is often initially a small business. The people who create
these businesses are called entrepreneurs
Entrepreneurship has been described as the "capacity and willingness to
develop, organize and manage a business venture along with any of its risks in
order to make a profit". While definitions of entrepreneurship typically focus on
the launching and running of businesses, due to the high risks involved in
launching a start-up, a significant proportion of start-up businesses have to close
due to "lack of funding, bad business decisions, an economic crisis, lack of
market demand—or a combination of all of these.
A broader definition of the term is sometimes used, especially in the field
of Economics. In this usage, an Entrepreneur is an entity which has the ability to
find and act upon opportunities to translate inventions or technology into new
products: "The entrepreneur is able to recognize the commercial potential of the
invention and organize the capital, talent, and other resources that turn an
invention into a commercially viable innovation." In this sense, the term
"Entrepreneurship" also captures innovative activities on the part of established
firms, in addition to similar activities on the part of new businesses.

Entrepreneurship is the act of being an entrepreneur, or "the owner or manager


of a business enterprise who, by risk and initiative, attempts to make
profits".[6] Entrepreneurs act as managers and oversee the launch and growth of
an enterprise. Entrepreneurship is the process by which either an individual or a
team identifies a business opportunity and acquires and deploys the necessary
resources required for its exploitation. Early 19th century French
economist Jean-Baptiste Say provided a broad definition of entrepreneurship,
saying that it "shifts economic resources out of an area of lower and into an area
of higher productivity and greater yield". Entrepreneurs create something new,
something different—they change or transmute values.[7] Regardless of the firm
size, big or small, they can partake in entrepreneurship opportunities. The

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opportunity to become an entrepreneur requires four criteria. First, there must be
opportunities or situations to recombine resources to generate profit. Second,
entrepreneurship requires differences between people, such as preferential
access to certain individuals or the ability to recognize information about
opportunities. Third, taking on risk is a necessary. Fourth, the entrepreneurial
process requires the organization of people and resources.[8]

The entrepreneur is a factor in and the study of entrepreneurship reaches back to


the work of Richard Cantillon and Adam Smith in the late 17th and early 18th
centuries. However, entrepreneurship was largely ignored theoretically until the
late 19th and early 20th centuries and empirically until a profound resurgence in
business and economics since the late 1970s. In the 20th century, the
understanding of entrepreneurship owes much to the work of economist Joseph
Schumpeter in the 1930s and other Austrian economists such as Carl
Menger, Ludwig von Mises and Friedrich von Hayek. According to
Schumpeter, an entrepreneur is a person who is willing and able to convert a
new idea or invention into a successful innovation. Entrepreneurship employs
what Schumpeter called "the gale of creative destruction" to replace in whole or
in part inferior innovations across markets and industries, simultaneously
creating new products including new business models. In this way, creative
destruction is largely responsible for the dynamism of industries and long-run
economic growth. The supposition that entrepreneurship leads to economic
growth is an interpretation of the residual in endogenous growth theory and as
such is hotly debated in academic economics. An alternate description posited
by Israel Kirzner suggests that the majority of innovations may be much more
incremental improvements such as the replacement of paper with plastic in the
making of drinking straws.

The exploitation of entrepreneurial opportunities may include:[9]

 Developing a business plan


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 Hiring the human resources
 Acquiring financial and material resources
 Providing leadership
 Being responsible for both the venture's success or failure
 Risk aversion

Economist Joseph Schumpeter (1883–1950) saw the role of the entrepreneur in


the economy as "creative destruction" – launching innovations that
simultaneously destroy old industries while ushering in new industries and
approaches. For Schumpeter, the changes and "dynamic disequilibrium brought
on by the innovating entrepreneur [were] the norm of a
healthy economy".[10] While entrepreneurship is often associated with new,
small, for-profit start-ups, entrepreneurial behavior can be seen in small-,
medium- and large-sized firms, new and established firms and in for-profit and
not-for-profit organizations, including voluntary-sector groups, charitable
organizations and government.[11]

Entrepreneurship may operate within an entrepreneurship ecosystem which


often includes:

 Government programs and services that promote entrepreneurship and


support entrepreneurs and start-ups
 Non-governmental organizations such as small-business associations and
organizations that offer advice and mentoring to entrepreneurs (e.g. through
entrepreneurship centers or websites)
 Small-business advocacy organizations that lobby governments for increased
support for entrepreneurship programs and more small business-friendly
laws and regulations
 Entrepreneurship resources and facilities (e.g. business incubators and seed
accelerators)

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 Entrepreneurship education and training programs offered by schools,
colleges and universities
 Financing (e.g. bank loans, venture capital financing, angel investing and
government and private foundation grants)[12][need quotation to verify]

In the 2000s, usage of the term "entrepreneurship" expanded to include how and
why some individuals (or teams) identify opportunities, evaluate them as viable,
and then decide to exploit them.[13] The term has also been used to discuss how
people might use these opportunities to develop new products or services,
launch new firms or industries, and create wealth.[14] The entrepreneurial
process is uncertain because opportunities can only be identified after they have
been exploited.[15]

Entrepreneurs tend exhibit positive biases towards finding new possibilities and
seeing unmet market needs, and a tendency towards risk-taking that makes them
more likely to exploit business opportunities.[16][17]

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Characteristics of Entrepreneurship

1. Passion and Motivation

Although there are many traits that make an entrepreneur successful, perhaps
the most important are passion and motivation.

 Is there something you can work on over and over again without getting
bored?
 Is there something that keeps you awake at night because you haven't
finished it yet?
 Is there something you have built and want to continue to improve upon?
 Is there something you enjoy so much you want to continue doing it for
the rest of your life?

From building and implementing a prototype to pitching your idea to venture


capitalists, success is a function of passion and determination.

2. Not Afraid to Take Risks

Entrepreneurs are risk takers, ready to dive deep into a future of uncertainty. But
not all risk takers are successful entrepreneurs. What differentiates a successful
entrepreneur from the rest in terms of risk? Successful entrepreneurs are willing
to risk their time and money on unknowns, but they also keep resources, plans
and bandwidth for dealing with "unknown unknowns" in reserve. When
evaluating risk, a successful entrepreneur will ask herself, "Is this risk worth the
cost of my career, time and money?" And, "What will I do if this venture doesn't
pay off?"

3. Self-belief, Hard Work and Disciplined Dedication

Entrepreneurs believe in themselves and are confident and dedicated to their


project. Their intense focus on and faith in their idea may be misconstrued as
stubbornness, but it is this willingness to work hard and defy the odds that make
them successful.

4. Adaptable and Flexible

Being passionate and dedicated is important, but being inflexible about client or
market needs will lead to failure. Remember, an entrepreneurial venture is not
simply about doing what you believe is good, but also making a successful
business out of it. Successful entrepreneurs welcome all suggestions for

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optimization or customization that may enhance their offering and satisfy client
and market needs.

5. Product and Market Knowledge

Entrepreneurs know their product inside and out. They also know the market.
Most become successful because they create something that didn't already exist
or they significantly improve an existing product after experiencing frustration
with the way it worked. Remaining unaware of changing market needs,
competitor moves and other external factors can cause even great products to
fail.

6. Strong Money Management

It takes time for any entrepreneurial venture to become profitable.


Until then, capital is limited and needs to be utilized wisely. Successful
entrepreneurs plan for present and future financial obligations and set aside an
emergency fund. Even after securing funding or going fully operational, a
successful businessperson keeps a complete handle on cashflow, as it is the
most important aspect of any business.

7. Effective Planning (Not Over-Planning) Skills

Entrepreneurship is about building a business from scratch while managing


limited resources (including time, money and personal relationships), which
requires planning. However, trying to plan for everything and having a ready
solution in place for all possible issues may prevent you from ever taking the
first step. Successful entrepreneurs have a business plan in place, but remain
capable of dealing with unforeseen possibilities.

8. The Right Connections

Many people seek comfort in commiseration—friends, colleagues


and neighbors are happy to complain about "the global slowdown,” poor
demand, or unfair competition—but that won't improve the bottom line.
Successful entrepreneurs reach out to mentors with more experience and
extensive networks to seek valuable advice. If they don't have the
necessary technical or marketing skills, they find someone who does and
delegate these tasks so they can focus on growing the business.

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9. Exit Preparedness

Not every attempt will result in success. The failure rate of entrepreneurial
ventures is very high. Sometimes, the best solution is to call it quits and try
something new instead of continuing to dump money into a failing business.
Many famous entrepreneurs weren't successful the first time around, but they
knew when to cut their losses.

10. Ability to Question Themselves – But Not Too Much

You may ask yourself, am I an entrepreneur? The very question may make
you doubt the answer. Even if you don't have the flair of Steve Jobs or the hair
of Elon Musk, if you have the courage to ask yourself intimidating questions—
"Can I do this? Do I want to do this?"—you have the stuff to be an entrepreneur.

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Qualities of successful entrepreneurs

1. Disciplined

These individuals are focused on making their businesses work, and eliminate
any hindrances or distractions to their goals. They have overarching strategies
and outline the tactics to accomplish them. Successful entrepreneurs are
disciplined enough to take steps every day toward the achievement of their
objectives.

2. Confidence

The entrepreneur does not ask questions about whether they can succeed or
whether they are worthy of success. They are confident with the knowledge that
they will make their businesses succeed. They exude that confidence in
everything they do.

3. Open Minded

Entrepreneurs realize that every event and situation is a business opportunity.


Ideas are constantly being generated about workflows and efficiency, people
skills and potential new businesses. They have the ability to look at everything
around them and focus it toward their goals.

4. Self Starter

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Entrepreneurs know that if something needs to be done, they should start it
themselves. They set the parameters and make sure that projects follow that
path. They are proactive, not waiting for someone to give them permission.

5. Competitive

Many companies are formed because an entrepreneur knows that they can do a
job better than another. They need to win at the sports they play and need to win
at the businesses that they create. An entrepreneur will highlight their own
company’s track record of success.

6. Creativity

One facet of creativity is being able to make connections between seemingly


unrelated events or situations. Entrepreneurs often come up with solutions
which are the synthesis of other items. They will repurpose products to market
them to new industries.

7. Determination

Entrepreneurs are not thwarted by their defeats. They look at defeat as an


opportunity for success. They are determined to make all of their endeavors
succeed, so will try and try again until it does. Successful entrepreneurs do not
believe that something cannot be done.

8. Strong people skills

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The entrepreneur has strong communication skills to sell the product and
motivate employees. Most successful entrepreneurs know how to motivate their
employees so the business grows overall. They are very good at highlighting the
benefits of any situation and coaching others to their success.

9. Strong work ethic

The successful entrepreneur will often be the first person to arrive at the office
and the last one to leave. They will come in on their days off to make sure that
an outcome meets their expectations. Their mind is constantly on their work,
whether they are in or out of the workplace.

10. Passion

Passion is the most important trait of the successful entrepreneur. They


genuinely love their work. They are willing to put in those extra hours to make
the business succeed because there is a joy their business gives which goes
beyond the money. The successful entrepreneur will always be reading and
researching ways to make the business better.

Successful entrepreneurs want to see what the view is like at the top of the
business mountain. Once they see it, they want to go further. They know how to
talk to their employees, and their businesses soar as a result.

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Entrepreneurial development today has become very significant; in view of its
being a key to economic development. The objectives of industrial
development, regional growth, and employment generation depend upon
entrepreneurial development.

Entrepreneurs are, thus, the seeds of industrial development and the fruits of
industrial development are greater employment opportunities to unemployed
youth, increase in per capita income, higher standard of living and increased
individual saving, revenue to the government in the form of income tax, sales
tax, export duties, import duties, and balanced regional development.

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Concept of Entrepreneurship:
The word “entrepreneur” is derived from the French verb enterprendre, which
means ‘to undertake’. This refers to those who “undertake” the risk of new
enterprises. An enterprise is created by an entrepreneur. The process of creation
is called “entrepreneurship”.

Entrepreneurship is a process of actions of an entrepreneur who is a person


always in search of something new and exploits such ideas into gainful
opportunities by accepting the risk and uncertainty with the enterprise.

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An overview of Entrepreneurship: Coaching
Entrepreneurial Talents Course

Gallup studied more than 4,000 entrepreneurs and found that the most
successful business-builders possess a rare set of talents -- and they are born,
then made. From this research, we created Entrepreneurial Profile 10 (EP10).
Formerly known as Entrepreneurial StrengthsFinder, EP10 is the only online
assessment that helps people discover and develop the 10 talents that are vital to
starting, growing, and sustaining a thriving enterprise.

The Coaching Entrepreneurial Talents Course gives you the resources and
knowledge you need to fully support current and future entrepreneurs in
understanding the EP10 and their unique talents. With your guidance,
entrepreneurs can develop their talents into strengths to achieve greater business
effectiveness and success.

Goals

The Coaching Entrepreneurial Talents Course will help you:

 explain the importance of entrepreneurship and the talents necessary for


entrepreneurial success
 demonstrate how the EP10 assessment is an effective measurement of the
10 talents necessary to meet the demands of entrepreneurship
 distinguish between the Clifton StrengthsFinder assessment and EP10
assessments
 deliver effective coaching conversations that will help individuals foster
their entrepreneurial talents
 help individuals understand and apply their entrepreneurial talents to
increase their business success

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 lead the Discover Your Entrepreneurial Talents workshop, in which small
groups discover, develop, and direct their entrepreneurial talents
 support the development of entrepreneurship in your community

Who Should Attend

If you are a professional coach, high school or higher education professional,


economic developer, or business and community mentor and you are interested
in finding, developing, and coaching current and future entrepreneurs, this
course is for you.

What You Can Expect

During this two-day course, you will explore practical ways to conduct
advanced entrepreneurial coaching conversations with others. You will learn
how to help others understand and apply their entrepreneurial talents to increase
their business success. You will also gain insights into how to help others
identify areas that can hinder business effectiveness and where to establish
complementary partnerships that will empower them to meet the demands of
being a successful entrepreneur.

What You Will Receive

 two EP10 assessment codes -- one for you and one for you to share with
someone you coach
 resources and tools to support your coaching conversations
 a one-on-one Gallup coaching session after the course

Entrepreneurship vs. Intrapreneurship

“entrepreneurship” becoming the new leadership and how large organisations


were developing incubators or creating more links with entrepreneurs, as they

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could see the benefits for their innovation, growth and ultimately gaining a
competitive advantage in their industry.

So, what about becoming an “intrapreneur”?

The term is often used for people who are working in an established company,
who come up with an idea, launch it with the organisation’s support, and are
creating something new for their company. For example, At Lockheed
Martin, intrapreneurs developed a number of famous aircraft designs and at 3M,
they came up with Post-It Notes and at Google, they came up with Google
News, AdSense and Gmail.

In a 2013 study , developed in partnership with American Express for Dan


Schawbel’s book Promote Yourself: The New Rules For Career Success, they
found that 58% of managers were either very willing or extremely willing
to support employees who wanted to capitalize on a new business opportunity
within their company. In addition, they found that 40% of millennial employees
were either very interested or extremely interested in doing this. That is
why Intrapreneurship programmes seem to become more and more popular.

As more millennials are coming onto the job market and are looking at
entrepreneurship as a viable career option, many companies have programmes
already in place to cater to this rising demographic that will become 36% of the
American workforce by end of 2014 and 46% by 2020. Closer to home, in the
UK, the New Entrepreneurs Foundation is proud to talk about similar
intrapreneurial success stories. The first one we are proud to share with you has
been achieved by one of our Class of 2012 NEFer: Hamish Grierson. After a
successful placement at Travelex, and demonstrating his innovation and
entrepreneurial flair, Hamish has launched Travelex’s own incubator.

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So, as you are looking to embark in your entrepreneurial journey, there is room
for some of you to consider intrapreneurship. But you need to find the right
organisation with the right culture, and come up with the most
relevant innovation for your organisation.

In my early career, I too became an intrapreneur: after working for 3 years for a
large conference and exhibition organisation, I launched a new Training
Business Unit within the company. This was possible because of my
knowledge of the sector I was working in, the entrepreneurial culture of the
organisation and my capability of identifying a gap in the market.

Nowadays, Intrapreneurship is recognized as a key to dynamic growth and


change and for millennial like you, it’s an opportunity to develop your
leadership skills at an early stage of your career and bring innovation to an
organisation. In addition, if you are a millennial looking to launch a business,
but are still paying back student loans, may not have access to mentors or
capital, intrapreneurship could be the perfect solution. By leveraging internal
resources and a corporate brand, you can make a big impact even at the start of
your careers. When intrapreneurs are successful, companies reap the benefits
too.

Enterpreneurship & innovation

Knowing how to incorporate innovation in your work and teams is crucial for
creating thriving workplaces and careers. The Innovation and Entrepreneurship
professional certificate program will teach participants essential skills and
effective strategies for working in and managing innovative organizations – and
for starting new ones. In classes designed to engage and inspire, you will learn
by doing from some of Stanford’s best in the field.

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Be prepared to get out of your chair and use your whole brain, because
creativity and innovation take practice.

You Will Gain

 A greater understanding of the tools that every innovative organization


needs to succeed
 A wider and deeper set of innovation skills, customized to fit both your
organization’s needs and your career goals
 A greater understanding the best and most current research on innovation
and entrepreneurship
 Deeper insights into the people you are serving - a powerful tool for
innovation
 The joy of learning from and engaging with some of Stanford’s smartest
and most entertaining teachers
 Personal feedback and advice from Stanford’s team of innovation
coaches
 A greater capacity to keep honing your innovation skills for years after
you’ve completed the program – we teach participants how to keep
learning and, in turn, to teach what they learn to others

Who Should Enroll

 Leaders of innovative teams, or teams that wish to be innovative


 Professionals from startups, Fortune 500 companies, non-profits and the
public sector
 Marketing, sales, finance, and project management teams
 Engineers and project team leads who want to be more creative
 Entrepreneurs and aspiring entrepreneurs

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Earning the Certificate

This certificate is offered online. Courses may be taken in any order and are
self-paced. Participants have the flexibility of taking individual courses within
the program or earning the Innovation and Entrepreneurship Certificate by
completing 8 courses.

Each course consists of online lecture videos, self-paced assignments and a final
exam. A discussion forum allows participants to interact with the teaching team
and others who are enrolled in the course. The teaching team also provides
feedback on select assignments.

Application

Program requires an accepted application. Applications may be submitted


online at anytime. Sample Application

Prerequisites

 5 years work experience


 Bachelor's degree, or equivalent, with minimum of 3.0 GPA
 Background in management or working in teams
 An entrepreneurial and innovative spirit

Each application will be evaluated as a whole, taking into consideration both the
candidate's academic and professional experience. If you do not have all the
prerequisites but still wish to be considered for the program, we encourage you
to submit your application.

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Tuition

 Rs.995 per online course


 Rs.7,960 total for the 8 courses needed
 Rs.75 one-time document fee ?

Time to Complete Certificate

Courses are self-paced. Each course is approximately 4 hours of online lectures


and 4 hours of assignments. Each course is available for 90 days after the date
of enrollment.

Characteristics of Entrepreneurs critical success factors

Entrepreneurial coaching appears to be a sufficiently customized way to help


novice owner-managers develop their managerial skills. However, its usefulness
remains to be verified. The purpose of this research is thus to examine the
effectiveness of coaching as a support measure for young entrepreneurs and to
identify the factors likely to have an impact on the success of coaching
initiatives Coaching unquestionably has a role to play in the start-up
process. Isolated entrepreneurs risk lacking the tools and support (advice,
practical aids) needed to build a successful business (Gibb, 2000). They
mostly require help asking the “right” questions, i.e. developing their own
representations iteratively and not just in an ad hoc fashion. In particular, they
must formulate and give concrete expression to their vision (Filion, 2004)
through their business ventures and resulting accomplishments by
developing appropriate heuristics. The coach can play the role of
facilitator and catalyst. It implies a personalized approach to coaching, focusing
not on the business but on the entrepreneur as an individual. Entrepreneurial
coaching thus appears to be a sufficiently customized way to help novice

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owner-managers develop their managerial skills (Bisk, 2002; Deakins et al.,
1998; Graham and O’Neil, 1997).
conceptual framework is derived.

The first thing to consider is if you want to be a generalist or specialist. Using


medicine as an example, consider the difference between a family physician and
a cardiologist.

Cardiologists make at least twice the annual income of family physicians. Why
is this? The answer, is that by specializing, cardiologists are solving a specific
problem that provides life-changing results. Compare life-saving cardiac bypass
surgery to visiting your family doctor for a cold…or hemorrhoids….or take
your pick of mild health nuisances. I urge you to consider specializing in your
own coaching business. For example, one of my primary target markets as a
health coach is busy moms between 29 and 55 years of age who want to lose
weight. It is much easier to convey my expertise and provide transformational
results by focusing on this smaller segment of the weight loss market.

Next, you need to answer the following two questions to determine who you
want to serve as your audience:

1. What is the No. 1 problem you can solve for others? Think about your
skills, knowledge, and experience. How are you uniquely positioned to
solve this problem in a powerful way?
2. Who do you want to be a hero to? When you provide life-changing
results in an authentic way, you create loyal followers who will hang on
your every word and sing your praises to anyone who will listen.

Now that you’re clear on who you want as your target audience, the next step is
attracting your ideal clients.

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2. How to easily attract your ideal clients.

These are the three primary ways that I market my coaching business and you
can do the same.

1. Pay per click advertising. This includes Facebook ads, Google


Adwords, and LinkedIn ads. Pay per click (PPC) is the fastest way to start
sending people to your funnel and content. Platforms like Facebook make
it simple to target members of your audience with laser precision. With
Facebook in particular, it’s easy to connect with your ideal clients
through demographic, interest, and behavior based advertising. You’ll
need to allocate a budget dedicated to PPC costs. Keep in mind, testing
different ad variations and campaigns is the key to turning your
advertising into a profitable venture.
2. Strategic partnerships. The secret to developing a profitable partnership
is finding someone who provides a service or product that complements
what you offer. They are not your competition, but you have the same
target audience. Let me give you an example. I partnered with a popular
mommy blogger for my health coaching business targeting busy moms.
She promotes my coaching business to her blog readers and I promote her
blog to my clients and audience.
3. Expert positioning. The best way to position yourself as an expert in
your space is by creating insanely valuable content for your audience.
This could be almost anything, including a blog post, video, or social
media post. If your content is good enough, people will start sharing it on
social media, helping your content to go viral. Place yourself in the mind
of your audience. Determine their most pressing problems and fears. This
will allow you to create quality content that your prospects will happily
devour, leaving them hungry for more. While I’m generating leads

28
through these three marketing channels, I’m sending them to the
beginning of my sales funnel. And that leads us to the third step:

29
Coaching Company is a start-up limited liability company (LLC) consisting of
one principal officer with 15 years of industry experience. Frank Smith
(principal) will be investing significant amounts of his own capital into the
company to cover start-up costs and future growth. Coaching Company will
partner with the national franchise, Coaching Company®, to provide services.
Coaching Company will be limited in a home office in Anytown, MI. Workshop
facilities will be contracted from various professional venues.

The company plans to use its existing contacts and customer base to generate
both short and long-term coaching contracts. Its long-term profitability will rely
on professional contracts obtained through strategic alliances, a comprehensive
marketing program and a successful referral program.

Initially, the company will focus on professional development, strategic


workshops, one-on-one coaching and special project relationships. Beginning in
year two, Coaching Company will provide a separate and comprehensive career
counseling service which will include resumé assistance, interviewing skills,
job-seeking strategies and networking opportunities. The company has
rigorously examined its financial projections and concluded that they are both
conservative in profits and generous in expenditures. This was done deliberately
to provide for unforeseeable events. The company's principal believes that cash
flow projections are realistic.

.
30
1.1 Objectives

Coaching Company's objectives for the first three years of operation include:

 The creation of a unique, upscale, innovative environment that will


differentiate Coaching Company from other coaching or professional
development businesses.
 Educating the business community on what business and strategic
coaching has to offer.
 The formation of a learning environment that will bring people with
diverse interests and backgrounds together in a common forum to
overcome challenges, both professionally and personally.
 Affordable access to the resources of business coaching and other
development services.

The financial objectives for Coaching Company over the next three years are to:

 Achieve sales revenues of approximately Rs.81,000 by end of year one.


 Achieve sales revenues of approximately Rs.150,000 by year three.
 Achieve a client mix of 60% small business/30% entrepreneurial/10%
individual per year.
 Move into small office space by end of first year.
 Hire one salesperson / coach by end of second year.

31
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32
1.2 Mission

Coaching Company offers small business owners, managers and entrepreneurs a


reliable, high-quality resource for business coaching, and professional and
management development on both a local and national scale. Its mission is to
help clients develop the strategy, motivation and accountability required to
succeed in their business and personal lives. The company sees each contract as
an agreement not between a business and its customers, but between
partners who wish to create a close and mutually beneficial long-term
relationship. This will help to provide greater long-term profits through referrals
and repeat business. Coaching Company must also be able to maintain financial
balance, charging a high value for its services, and delivering an even higher
value to its clients.

1.3 Keys to Success

1. Excellence in fulfilling the promise--completely confidential, reliable,


trustworthy expertise and information
2. Developing visibility to generate new business leads
3. Leveraging from a single pool of expertise into multiple revenue
generation opportunities: retainer coaching, project consulting, workshop
facilitation and individual coaching
4. Consistently developing productive and thought-provoking learning
experiences to maintain growth and success with each client
5. Our use of state-of-the-art technology
6. Easy access to services
7. Establishing a seasoned advisory team

33
Services

Coaching Company provides strategic coaching, professional development and


counseling for small business owners, entrepreneurs and self-employed
professionals. The core services that will be offered from day one will be:

Two Year Strategic mindset Program: these quarterly workshops include


strategic planning, peer advisory counseling, marketing/sales planning,
accountability processes, business planning and work/life balance
implementation.

One-on-One Coaching includes ongoing reinforcement to support Strategic


Coaching program, professional development coaching, leadership, career or
management coaching.

On Demand Coaching (for time restricted clients) includes but is not limited to,
private and objective business or professional coaching, affordable and "on-
demand," access to coaching via phone/email.

Special Projects includes strategic business planning and implementation,


marketing plans and implementation, leadership development, people
management and systematizing businesses.

Beginning in year two (2006), Coaching Company will provide a separate and
comprehensive career counseling service which will include but will not be
limited to, resumé assistance, interviewing skills, job seeking strategies and
networking opportunities.

34
Requirements for starting up the business

You would need a commercial space at a central location for the children to
reach easily. Adequate lighting, furniture for seating arrangements, lockers for
children to keep their belongings, competent staff and dedicated support staff
are the basic requirements. If you are planning to conduct a small scale
coaching center, you need not obtain few licenses from the government. But, if
your coaching center venture is as big as an institution, you would need to get a
trade license and pay tax for the revenue generated through the center. If your
income exceeds 9 lakhs per annum, you need to register your business and pay
service tax within thirty days.

About the market

Since the capital involved in the business is moderate and the barriers for new
comers in the market are less, there are a lot of competitors in the market.
Switching power of the buyers is very restricted as a student might not float
from one coaching center to another. With increasing number of students in the
city, the scope of the market in the future is immeasurable.

Capital involved in this business

If you are planning to lease a large area as your premise with the furniture, it
would cost you around 50,000 to 60,000 rupees per month. The salary for a staff
would be around 15,000 to 20,000 per month (experienced staff). Support staff
can be hired at 7,000 to 10,000 per month. Thus, you would need to have a
working capital of not more than one lakh to 1.25 lakh per month, including the
variable costs. If you own a house or a room which can be converted into a
classroom, you can cut short on the rent factor. Based on the subject, class,
board of education and others, a student can be charged between 6,000 and

35
10,000 per month. All you would need is just 10 to 15 students to break-even
and create good revenue.

Profitability of the market

Apart from college and school subjects,


IAS coaching, bank exam coaching and other competitive exam coaching would
yield more revenue. Make sure that you have the expert teachers to train the
students. Your syllabus is your tool. The number of students who have enrolled
would make a difference in the profitability of the market. Do not start the
business until you know that you can make a considerable amount of students to
enroll in your program.

83% of the parents are looking for a coaching center for their children in
primary classes. On an average, a household pays 500 to 700 rupees per hour
for the centers that takes care of the primary school students till one of the
parent returns to pick them up. In such cases, apart from the subjects, you need
to train them on extra-curricular activities too. You need to create an aesthetic
environment for coaching small children which would increase the capital
involved but, the return on investment is very high.

According to a report, in the last three years, a rural family spends 2,000 rupees
for coaching centers for a child and a family in an urban area spends about
2,750 to 3,500 rupees for coaching their children. This fee can go up if the
coaching for some competitive examination or college syllabus.

36
Scope of the market

With the constant rise in the number of colleges and schools without increase in
the standard of education, there is an accelerated increase in the scope for this
market. Since the craze for government jobs is very high among the youth, the
coaching centers for competitive examinations would be profitable in the future.

Important tips

1. You need to have separate and experienced teachers for each subject.
2. Your premises should be large enough to hold many students without
congestion.
3. Provide discounts and referral discounts to increase your customer base.
4. Make sure to pick a location near an institution like school or college to
increase the exposure of the business.
5. You need to make sure to adhere to the standards that are followed by the
government or else, you would be out of business in no time.
6. Create a logo and demonstrate professionalism in your business to attract
more students.

Marketing and Growth

The result that you produce in one academic year would stand as your base of
advertisement. Make sure to hire some famous instructors to gain more
customer base. Handing pamphlets and advertising through bills would be very
effective. Remember that the profitability of the business totally depends upon
the number of students in the institute. You should aim at increasing the number
of students by at least 10% every year to have a sustainable business.

37
Market Analysis Summary

Coaching Company will focus on small business owners, managers and


entrepreneurs who are concerned that their businesses have not grown at the rate
they want or need them to, frustrated that they are spending too much time in
their businesses and may be burning out and worried that their business will
not survive without them. These companies will have revenues of Rs.10 million
or less.

According to the July, 2002 census, there are approximately 81,600 small
businesses in the 5 county Anytown Metropolitan area. Although the majority
are manufacturing based, there are a significant number of service related
companies. Coaching Company will not take a position of industry expert but of
leadership and development expert; therefore industry will not have an impact
on any prospective markets.

4.1 Market Segmentation

Coaching Company will focus on two markets within the Anytown Metro area,
the small business segment (businesses with more than one employee/owner),
and the entrepreneur segment, which includes home-based and one-person
business operations. Although the company can handle larger organizations, the
greatest benefit will come to businesses with under Rs.10 million in annual
sales. The majority of these companies are comprised of "technicians" who are
gifted in the work of their business, but typically do not have the resources to
have in-house staff dedicated to strategic planning, professional development
and/or coaching. Our goal is to eventually obtain approximately two-thirds of
all our business from the small business segment, since this generates the
greatest cash flow. Furthermore, this segment has the lowest percentage of

38
variable costs. The small business segment is considered to be the company's
cash cow.

Initially the company will focus on the two segments in just the A County
and B County area. However, by the end of the three-year projections, the
company expects to be serving the entire Anytown Metropolitan area. The
Market Analysis table and chart show the number of small businesses in each
county.

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Market Analysis

39
Year 1 Year 2 Year 3 Year 4 Year 5

Potential
Growth CAGR
Customers

County A 3% 31,424 32,367 33,338 34,338 35,368 3.00%

County B 2% 14,130 14,413 14,701 14,995 15,295 2.00%

County C 3% 6,189 6,375 6,566 6,763 6,966 3.00%

County D 2% 2,849 2,906 2,964 3,023 3,083 1.99%

County E 2% 27,008 27,548 28,099 28,661 29,234 2.00%

Total 2.46% 81,600 83,609 85,668 87,780 89,946 2.46%

40
4.2 Target Market Segment Strategy

The small business and entrepreneur markets are ideal targets for several
reasons:

1. As a small or entrepreneurial business, resources are often limited to core


business functions such as production, administration, finance and
distribution. Professional development, training, coaching or planning
frequently goes unnoticed or even forgotten. As economic pressures
increase and competition becomes more intense, these companies are
always looking for effective ways to make themselves more prosperous.

2. As a small or entrepreneurial business, the owner is typically an


accountable technician which means he or she has everything on the line
with regard to their business succeeding or not, and that their area of
expertise is in the business they are "in." Frequently, a technician will be
attracted to the "work" of the business and neglect the fundamental health
of the business, which includes nurturing both themselves and the
customer base.

4.3 Service Business Analysis

The United States spends more per capita on education than any other country.
Training or professional development in America is a Rs.210+ billion industry.

There are five basic groups that need training as follows:

1. Government – Those employed in federal, state, and local governments,


the military, post office personnel, school teachers and administrators.
This group spends more than Rs.23 billion in training funds annually.

41
2. Large Businesses – These are firms with 100 or more employees. This
group spends more than Rs.28 billion in training, with the largest portion
going to training managers and career personnel.

3. Small Businesses – These are firms with fewer than 100 employees.
There are more than 79 million small businesses in the U.S. This group
spends more than Rs.20 billion on training each year.

4. Professional Service Firms – This group includes doctors, lawyers,


accountants, engineers, consultants, etc. Continuing education
requirements move this group to spend training dollars
disproportionate to their size, more than Rs.11 billion per year.

5. Individuals – Those who buy training with their own money and on their
own time. This group spends more than Rs.2.5 billion on training and
they tend to be highly motivated.

4.3.1 Competition and Buying Patterns

The key element in purchase decisions made at Coaching Company client level
is trust in the professional reputation and reliability of the professional
development firm. The professional development industry is pulverized and
disorganized, with thousands of smaller consulting organizations and individual
consultants for every one of the few dozen well-known companies.

42
Competitors range from major international name-brand consultants to tens of
thousands of individuals. One of Coaching Company's challenges will be
establishing itself as a real professional development company, positioned as a
relatively risk-free corporate purchase.

When dealing with the small or entrepreneurial business market, cost or price
will be one of the greatest obstacles Coaching Company will face. It will be up
to Coaching Company to assist its clients in the discovery of how much it may
cost them NOT to pursue professional development and establish Coaching
Company as the most effective solution to their challenges.

With time, reputation and referrals will allow for a steady stream of new clients
as well as regular price increases. This is not a business to build brand as much
as it is to build reliability.

43
Strategy and Implementation Summary

Emphasize results
We will differentiate ourselves with results. We will establish our business
offering as a clear and viable alternative for our target market, from the scores
of unrefined, one-time seminar, consulting, and "feel good motivational"
companies.

Build a relationship-oriented business


Build long-term relationships with clients, not single-visit deals. Become
their advisor and partner of choice. Make them understand the value of long-
term relationships.

Focus on target markets


We need to focus our offerings on small business owners and entrepreneurs who
have a passion for their business and have the willingness to work for what they
receive. We do not want to compete for the buyers who seek "get rich
quick" types of resources. We need to be able to sell to smart, quality-conscious
clients.

5.1 Competitive Edge

The most unique benefit that Coaching Company offers to clients is the ability
to experience ongoing, reinforcement development, versus a typical "one-time"
seminar format. Coaching Company provides development and support for a
year or more. Since each Strategic Workshop client will be immediately
qualified for one-on-one coaching, we will manage and monitor the specific
progress of each client to ensure appropriate development.

44
5.2 Marketing Strategy

Coaching Company plans to reach their target companies by four methods


which have been proven to be effective. They are:

Lead Generation Program: Coaching Company will do a direct mailing to


3,000 potential customers in the A and B county areas. Interested companies
reply by mail or phone. In this industry, an average of 3% of the recipients
typically respond.

Sample Previews: These are invitation-only workshops that Coaching


Company will host for referral sources (i.e., accountants, attorneys, financial
planners, insurance professionals) as well as owners of businesses in a target
market. The previews will be the actual first year program offered to paying
clients. The intent is to provide value and proof of the Strategic Workshop
process so that clients will be comfortable making referrals. Coaching Company
will be responsible for the generation of the lists to which these invitations will
be sent. The franchiser, Coaching Company, recommends that one of these
briefings be held monthly. Referral sources and business owners who attend and
are interested will have a follow-up call made to them to further discuss what
Coaching Company can do for their company.

Free Talks/Networking: These are talks given to Chambers of Commerce,


trade councils, professional organizations, etc. It has been industry experience
that it is most beneficial to have at least two of these talks per month and attend
two networking events per month.

Referrals: Referrals will not be a large part of Coaching Company's business


until late in the first year. In the second and third year they should account for
as much as 50% of new business.

45
Other Income Generators: Special Project Assistance. This includes writing
private programs for specific businesses, designing custom programs and
retainer based coaching on an ongoing basis.

5.3 Sales Strategy

Coaching Company will make a significant profit through the delivery of top-
of-the-line professional development services. The company will see profit
within the first year due to beneficial word-of-mouth advertising and referral
networking. The company expects to double its clientele every six months, for
the first 18 months.

Pricing

Strategic Workshops (two year program) - Rs.3000 for year one, Rs.2500 for
year two. Includes 1 hour per month one-on-one coaching.

Platinum Package - Rs.5000 for one year of Strategic Workshops, 1 hour per
month of one-on-one coaching & membership to the On Demand Coaching.

Gold Package - Rs.4000 for one year of Strategic Workshops, 1 hour per
month of one-on-one coaching.

Silver Package - Rs.3000 for one year of Strategic Workshops

Second year - Rs.2500 per year for any client continuing with Strategic
Workshops (applies to workshop only)

One-on-one Coaching - Rs.125/hr for any personalized coaching for non-


workshop clients. Rs.100/hr for workshop clients.

On Demand Coaching - Rs.250 per month. minimum purchase of 3 months.

46
Special Projects - Priced as needed

5.3.1 Sales Forecast

Coaching Company expects a slow start to 2005, but a strong finish with
referral marketing beginning to replace hard marketing dollars. The core
business will be the Strategic Workshops, which have a second year tied to the
initial purchase (two year program - Rs.3,000 for year one, Rs.2,500 for year
two). Based on this, we should be able to obtain and manage a 25% increase in
sales. Sales exceeding the 25% would place a tremendous burden on the
acceptable delivery of service. Consistent efforts made by Coaching Company
based on the marketing plan will drive enough opportunities to supply both
initial and ongoing growth. At this growth rate, Coaching Company will be in a
position to hire one more salesperson beginning year four (2008).

Potential obstacles to achieving these results:

1. Prospecting/marketing plan not followed


2. Poor delivery of service
3. Any health problems of owner

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48
Sales Forecast

Year 1 Year 2 Year 3

Sales

Strategic Workshops Rs.64,000 Rs.95,000 Rs.115,000

One On One Coaching Rs.5,622 Rs.6,844 Rs.8,555

Coaching Club Rs.8,760 Rs.8,760 Rs.8,760

Special Projects Rs.3,085 Rs.10,000 Rs.15,000

Total Sales Rs.81,467 Rs.120,604 Rs.147,315

Direct Cost of Sales Year 1 Year 2 Year 3

Royalties Rs.5,654 Rs.7,236 Rs.8,839

Marketing Rs.5,000 Rs.6,250 Rs.7,500

Subtotal Direct Cost of Sales Rs.10,654 Rs.13,486 Rs.16,339

49
5.4 Milestones

Coaching Company has a big year coming. In order to achieve the sales and
marketing goals that have been outline in this business plan, the company has
deadlines to meet and ideas to implement. Frank Smith is accountable for all
items. Some of these are outlined below:

 March 1, 2005 is the date Coaching Company must commence


operations. This requires a trip to Anytown in January 2005 with final
franchise agreements signed by February 1, 2005. Frank Smith will be
visiting Anytown on January 14, 2005 to take care of this.

 March 1, 2005 is the date specified to begin the Lead Generation Program
(direct marketing) which includes direct mail, email marketing,
advertising and phone sales calls.

 February 28, 2005 is the deadline for joining two chamber of commerces
(Anytown and Pleasantville), and other networking groups; this is key to
the marketing/networking effort. This will be effective immediately after
submitting application and membership fee. Frank Smith will begin
scheduling free talks immediately.

 April 15, 2005 is the deadline for scheduling the first of monthly Sample
Previews.

50
 Marketing materials. Printing costs are involved in printing brochures,
business cards, and developing website. This can't be done until after the
photo/logo design work (costing Rs.1,000) has been completed.

 February 28, 2005 is deadline for joining the Anytown Chamber of


Commerce and a secondary Chamber. Cost is Rs.195-Rs.225/year.
Benefits include networking, marketing and free talks.

 February 28, 2005 is the deadline to join Local Business Network. Cost
is Rs.360/year. Benefits include networking, marketing and free talks.
May also be used to populate first workshops.

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Milestones

Milestone Start Date End Date Budget Manager Department

Lead Generation
3/1/2005 3/15/2005 Rs.1,000 ABC Marketing
Prgm

Sample Previews 2/15/2005 3/15/2005 Rs.300 ABC Marketing

Free Talks 3/1/2005 3/1/2007 Rs.50 ABC Marketing

Start Business 2/1/2005 2/28/2005 Rs.17,900 ABC Finance

Marketing
2/15/2005 2/28/2005 Rs.500 ABC Marketing
Materials/Stationery

Chamber of
2/1/2005 2/28/2005 Rs.195 ABC Marketing
Commerce

Networking Group 2/1/2005 2/28/2005 Rs.360 ABC Marketing

Second Chamber 2/1/2005 2/28/2005 Rs.200 ABC Department

Totals Rs.20,505

52
Management Summary

The initial management team depends on the founder himself, with little back-
up. As we grow, we will take on additional consulting, sales, and marketing
help.

6.1 Personnel Plan

The following table is the personnel plan for Coaching Company. The table
reflects the hiring of a second full-time salesperson / coach in year 2.

Personnel Plan

Year 1 Year 2 Year 3

President Rs.27,000 Rs.50,000 Rs.50,000

Second salesperson/coach Rs.0 Rs.20,000 Rs.42,000

Total People 1 2 2

Total Payroll Rs.27,000 Rs.70,000 Rs.92,000

53
Financial Plan

Our financial plan is based on conservative estimates and assumptions. We will


need initial investment to make the financials work, but the owner is prepared to
contribute that funding.

We can minimize risk factors by:

1. Obtaining initial capitalization of the company to sustain operations


through year one
2. Maintaining low overhead through the use of shared office space and
home-based office through year one
3. Developing a strong customer base through aggressive marketing
4. Creating strong community ties and involvement
5. Eliminating collection costs, by establishing cash/credit/debit card only
facilities

7.1 Start-up Funding

The start-up costs are to be financed by the owners' personal funds.

Start-up Funding

Start-up Expenses to Fund Rs.22,250

Start-up Assets to Fund Rs.10,500

Total Funding Required Rs.32,750

Assets

54
Non-cash Assets from Start-up Rs.2,500

Cash Requirements from Start-up Rs.8,000

Additional Cash Raised Rs.950

Cash Balance on Starting Date Rs.8,950

Total Assets Rs.11,450

Liabilities and Capital

Liabilities

Current Borrowing Rs.0

Long-term Liabilities Rs.0

Other Current Liabilities (interest-free) Rs.0

Total Liabilities Rs.0

Capital

Planned Investment

Owner Rs.33,700

Investor Rs.0

Additional Investment Requirement Rs.0

Total Planned Investment Rs.33,700

Loss at Start-up (Start-up Expenses) (Rs.22,250)

55
Total Capital Rs.11,450

Total Capital and Liabilities Rs.11,450

Total Funding Rs.33,700

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7.2 Projected Profit and Loss

The following table and chart shows the projected Profit and Loss for Coaching
Company. The majority of our operating expenses are the owner's payroll,
benefits and taxes. This includes a standard PPO health plan, since the owner is
sole provider of services; if he gets sick, sales stop. The second largest category
is Marketing and Promotion, necessary for establishing brand recognition and
generating new business, as a start-up.

The moving expenses in December and increased rent starting at the same time
reflect the planned move into an office space, and out of the owner's home.

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Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales Rs.81,467 Rs.120,604 Rs.147,315

58
Direct Cost of Sales Rs.10,654 Rs.13,486 Rs.16,339

Other Costs of Sales Rs.0 Rs.0 Rs.0

Total Cost of Sales Rs.10,654 Rs.13,486 Rs.16,339

Gross Margin Rs.70,813 Rs.107,118 Rs.130,976

Gross Margin % 86.92% 88.82% 88.91%

Expenses

Payroll Rs.27,000 Rs.70,000 Rs.92,000

Marketing/Promotion Rs.4,800 Rs.5,400 Rs.6,400

Depreciation Rs.0 Rs.0 Rs.0

Rent Rs.2,335 Rs.10,000 Rs.10,000

Utilities Rs.480 Rs.528 Rs.580

Insurance Rs.972 Rs.1,020 Rs.1,072

Payroll Taxes Rs.4,050 Rs.10,500 Rs.13,800

Moving Expenses Rs.1,000 Rs.0 Rs.0

Other Rs.0 Rs.0 Rs.0

Total Operating Expenses Rs.40,637 Rs.97,448 Rs.123,852

Profit Before Interest and


Rs.30,176 Rs.9,670 Rs.7,124
Taxes

EBITDA Rs.30,176 Rs.9,670 Rs.7,124

59
Interest Expense Rs.0 Rs.0 Rs.0

Taxes Incurred Rs.9,053 Rs.2,901 Rs.2,137

Net Profit Rs.21,123 Rs.6,769 Rs.4,987

Net Profit/Sales 25.93% 5.61% 3.39%

7.3 Break-even Analysis

Break-even data is presented in the chart and table below.

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Break-even Analysis

Monthly Revenue Break-even Rs.3,896

Assumptions:

Average Percent Variable Cost 13%

Estimated Monthly Fixed Cost Rs.3,386

7.4 Projected Cash Flow

The following table and chart show the Cash Flow for Coaching Company.
After the first six months, cash flow should be positive for all months. We
expect an initial period of decreasing cash balance, until sales reach mid-year
targets.

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Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales Rs.81,467 Rs.120,604 Rs.147,315

Subtotal Cash from Operations Rs.81,467 Rs.120,604 Rs.147,315

Additional Cash Received

Sales Tax, VAT, HST/GST Received Rs.0 Rs.0 Rs.0

New Current Borrowing Rs.0 Rs.0 Rs.0

New Other Liabilities (interest-free) Rs.0 Rs.0 Rs.0

New Long-term Liabilities Rs.0 Rs.0 Rs.0

Sales of Other Current Assets Rs.0 Rs.0 Rs.0

Sales of Long-term Assets Rs.0 Rs.0 Rs.0

New Investment Received Rs.0 Rs.0 Rs.0

Subtotal Cash Received Rs.81,467 Rs.120,604 Rs.147,315

62
Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending Rs.60,344 Rs.113,835 Rs.142,328

Subtotal Spent on Operations Rs.60,344 Rs.113,835 Rs.142,328

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out Rs.0 Rs.0 Rs.0

Principal Repayment of Current


Rs.0 Rs.0 Rs.0
Borrowing

Other Liabilities Principal Repayment Rs.0 Rs.0 Rs.0

Long-term Liabilities Principal


Rs.0 Rs.0 Rs.0
Repayment

Purchase Other Current Assets Rs.0 Rs.0 Rs.0

Purchase Long-term Assets Rs.0 Rs.0 Rs.0

Dividends Rs.0 Rs.0 Rs.0

Subtotal Cash Spent Rs.60,344 Rs.113,835 Rs.142,328

Net Cash Flow Rs.21,123 Rs.6,769 Rs.4,987

Cash Balance Rs.30,073 Rs.36,842 Rs.41,829

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7.5 Projected Balance Sheet

The following table presents the Balance Sheet for Coaching Company. It
shows our projected steady increase in Net Worth over the next three years. As
a consulting company, we do not need a great deal in the way of assets, so the
largest factor in the Balance Sheet is our cash balance.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash Rs.30,073 Rs.36,842 Rs.41,829

Other Current Assets Rs.2,500 Rs.2,500 Rs.2,500

Total Current Assets Rs.32,573 Rs.39,342 Rs.44,329

Long-term Assets

Long-term Assets Rs.0 Rs.0 Rs.0

Accumulated Depreciation Rs.0 Rs.0 Rs.0

Total Long-term Assets Rs.0 Rs.0 Rs.0

Total Assets Rs.32,573 Rs.39,342 Rs.44,329

Liabilities and Capital Year 1 Year 2 Year 3

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Current Liabilities

Current Borrowing Rs.0 Rs.0 Rs.0

Other Current Liabilities Rs.0 Rs.0 Rs.0

Subtotal Current Liabilities Rs.0 Rs.0 Rs.0

Long-term Liabilities Rs.0 Rs.0 Rs.0

Total Liabilities Rs.0 Rs.0 Rs.0

Paid-in Capital Rs.33,700 Rs.33,700 Rs.33,700

Retained Earnings (Rs.22,250) (Rs.1,127) Rs.5,642

Earnings Rs.21,123 Rs.6,769 Rs.4,987

Total Capital Rs.32,573 Rs.39,342 Rs.44,329

Total Liabilities and Capital Rs.32,573 Rs.39,342 Rs.44,329

Net Worth Rs.32,573 Rs.39,342 Rs.44,329

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7.6 Business Ratios

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The following table shows the projected business ratios. We expect to maintain
healthy ratios for profitability, risk, and return. The industry comparisons are for
Management Consulting Services, SIC code 8742.

Ratio Analysis

Industry
Year 1 Year 2 Year 3
Profile

Sales Growth 0.00% 48.04% 22.15% 7.74%

Percent of Total Assets

Other Current Assets 7.68% 6.35% 5.64% 48.61%

Total Current Assets 100.00% 100.00% 100.00% 77.64%

Long-term Assets 0.00% 0.00% 0.00% 22.36%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.00% 0.00% 0.00% 31.75%

Long-term Liabilities 0.00% 0.00% 0.00% 18.72%

Total Liabilities 0.00% 0.00% 0.00% 50.47%

Net Worth 100.00% 100.00% 100.00% 49.53%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 86.92% 88.82% 88.91% 100.00%

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Selling, General &
60.99% 83.21% 85.52% 83.82%
Administrative Expenses

Advertising Expenses 0.00% 0.00% 0.00% 1.12%

Profit Before Interest and Taxes 37.04% 8.02% 4.84% 2.69%

Main Ratios

Current 0.00 0.00 0.00 1.69

Quick 0.00 0.00 0.00 1.36

Total Debt to Total Assets 0.00% 0.00% 0.00% 56.50%

Pre-tax Return on Net Worth 92.64% 24.58% 16.07% 2.64%

Pre-tax Return on Assets 92.64% 24.58% 16.07% 6.07%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 25.93% 5.61% 3.39% n.a

Return on Equity 64.85% 17.21% 11.25% n.a

Activity Ratios

Accounts Payable Turnover 8.98 12.17 12.17 n.a

Total Asset Turnover 2.50 3.07 3.32 n.a

Debt Ratios

Debt to Net Worth 0.00 0.00 0.00 n.a

Current Liab. to Liab. 0.00 0.00 0.00 n.a

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Liquidity Ratios

Net Working Capital Rs.32,573 Rs.39,342 Rs.44,329 n.a

Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios

Assets to Sales 0.40 0.33 0.30 n.a

Current Debt/Total Assets 0% 0% 0% n.a

Acid Test 0.00 0.00 0.00 n.a

Sales/Net Worth 2.50 3.07 3.32 n.a

Dividend Payout 0.00 0.00 0.00 n.a

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FUTURE PLAN

 After the establishment of COACHING CLASSES, it will focus on


to increase a new COACHING CLASSES at the other place in
,LUCKNOW.

 COACHING CLASSES wants to provide residential facilities and


will be converted in INSTITUTE.

 More and More skilled and famous cooks will be employed.

 COACHING CLASSES wants to start new dishes that are not


prepared right now. that will be the core competency of my
COACHING CLASSES.

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SUGGESTIONS

After a plan of my business, I think that COACHING CLASSES will be well


and efficient there will be nothing as such which I can suggest to the sector.
But, I also want to tell something to the COACHING CLASSES that I think is
necessary to attract more and more customers.

 The COACHING CLASSES is strongly recommended to introduce


dishes that are not still served.

 The major problem faced by customers is parking so COACHING


CLASSES must make some arrangement for parking.

 The COACHING CLASSES should provide home delivery so that


the customers for distance place can also attracted.

 The COACHING CLASSES should promote cooking competitions


and also accept the cooking recipe from the people outside.

So, this is one the views from my point of view, which I hope
may be taken positively and will not be misunderstood.

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CONCLUSION

I think that this is a golden opportunity for me to establish my own restaurant


called COACHING CLASSES. I have gained over all information regarding
personnel, financial and marketing. During my study, I marked that the
COACHING CLASSES is best in management, working in providing facilities
to the workers and provide food facility to the people.

I have come to the conclusion that this sector has an efficient in


financial and marketing process. It possesses proper finance. Hence, this sector
has a huge scope for expansion and development. The Name is ‘COACHING
CLASSES’, Customers would like to visit often to this COACHING
CLASSES. The staff will be interested to improve the food product as per
change in test of the customers.

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