Entebbe Applied Academy

Draft Business Proposal

An English-modern Kindergarten and Primary School

By MUHANGUZI CUTHBERT

Table of Contents
I. Executive Summary II. School Overview 2.1 Vision 2.2. Mission Statement 2.3 The Business Opportunity and Need 2.3.1 School Description 2.3.2 School Premises 2.4 Capital Requirements III. School Services 3.1 Overview 3.2 Student Learning 3.3 Student Services 3.4 School Operation 3.5 School Finance and Accounting 3.6 Student Auxiliary Services IV. The Market 4.1 Education Market Analysis 4.2 Central Uganda Demographic Information 4.3 Entebbe Municipality Demographic Information 4.4 Profile of Direct Competitors 4.5 Competitive Analysis and Strategy V. Marketing Plan 5.1 Marketing Overview 5.2 Branding Strategy 5.3 News Paper Advertising 5.4 Signage 5.5 Internet Marketing VI. Management and staff 6.1 Executive Management 6.2 Staffing and Teachers VII. Operational Plan 7.1 Operational Overview 7.2 Facility Layout 7.4 Facilities and Library 7.5 Campus Safety 7.6 Accounting, Billing, and Collections 7.7 IT Infrastructure VIII. Financing and Growth Strategy 8.1 Capital Requirements 8.2 Financial Strategy 8.3 Risk Analysis IX. Financial Plan 9. 1 Three-Year Budget Plan

9.2 Revenue Model 9.3 Expense Assumptions 9.4 Income and Expense Estimates Appendix Appendix A. Income and Expense Details for three Years Appendix C. Competitor 1 Fee Structure Appendix D. Competitor 2 Fee Schedule Appendix E. Competitor 3 Fee Schedule Appendix F. Salaries based upon the recommendation by the MOE (the most recent) of Uganda

Executive Summery
Nelson Mandela said Education is the most powerful weapon which you can use to change the world and education is at the heart of all the work we do at S.A.L.V.E. International. Education, both formal and informal, can give you the knowledge, skills and confidence to build a better future. In Uganda many people are competing for a limited number of good jobs, and without a decent education it is very hard to get one or have the confidence to initiate your own business instead. According to the World Bank Uganda has 83% youth employment one of the highest rates in the world. Getting access to education in the first place can be a huge challenge. In 1997 the Ugandan government introduced universal primary education (the idea that all children should be able to attend primary school for free) and in 2007 universal secondary education. Unfortunately the demand for free education outstrips the availability of places at the free government schools. It is not uncommon for classes to have well over one hundred students, with very little in the way of facilities, and demotivated, over-worked teachers heading them. This means that for most of the population, especially those who want a higher quality education, the only other option is private school. It is so clear that most private schools are blinded by profit taking, admitting pupils more than a class can handle and the teachers generally faced with such large class sizes and poor resources that it is incredibly difficult for them to give one-to-one attention to those students who need it most. The education system today caters for cram-work instead of understanding. That is why we produce half baked children-the curriculum is exam oriented, not children's understanding. Passing has been commercialised; there is a lot of undue competition with the so-called good schools and this means students are "pumped" with so much information, more than they can read and understand. Coupled with the above is the computer era, where students imagine the computer can do everything for them. We propose to establish a school in Entebbe that will divert away from the current education system and revert to the traditional education systems while infusing one-on-one education practices to produce bright and practical minds for the development of our nation. Entebbe Applied Academy will be a top-notch and English-medium kindergarten and primary school imparting quality education to children in the city of Entebbe, Wakiso, Uganda. This is a draft business plan is to help the proprietors understand the dynamics of the education market that Enetebbe and the entire country face and recognize the unique opportunity to start an Infant and primary school. We believe that the education market in its continuous growth stage and that we are uniquely positioned to successfully start and manage a KG and Primary School in Entebbe.

2.0 Overview
2.1 Vision
Entebbe Applied Academy is committed to open life-changing opportunities for children through quality education. Education will always be a combination of cognitive, social, emotional, physical and vocational stimulation. In this way a person can develop holistically as a unique human being within her/his specific context and as a member of the wider community. Our motto is Imparting good education is the best community service.

2.2 Mission Statement

Our mission is to support a model high quality international level school offering a cost-effective, broad, and challenging educational program to infants and pupils in the greater Entebbe Municipality, and later to the whole country. A quality education is in short supply in those parts of Uganda. Children and their families are caught in a vicious circle of ignorance and substandard education services. They are unable to break the shackles of the gripping profit minded educators and ignorance. Quality and affordable education is a major way to deal with this dire situation. Entebbe Applied Academy believes that through quality education, the cycle of exclusion, poverty, domestic violence and breakdown of families can be broken. However, our understanding ofeducation means more than just a good grade.

2.3 The Business Opportunity and Need

Entebbe is everything it is a destination for seekers of leisure, security, and jobs. The UN missions have also helped to get the former colonial town, out of its former slow-paced shadow. With the growing population of high income earners, demand for quality schools is increasing at a tremendous pace. UBOS estimated the population of Entebbe at approximately 79,700 in 2011 with enrolment of preprimary at 1029 children, for primary schools is 13425 Children and that of secondary schools is 6009 students for both private and government aided schools. There are 103 Schools with about 50 privately owned and the rest community or government sponsored. Considering the continued crumbling contribution of UPE/USE educations systems coupled with Ministry of Educations very poor education inspection and monitoring mechanism of these schools, the private schools competition is set so low and the demand for high valued education continues to shoot up in Entebbe. There are about 10 International level education centres in Entebbe. This gives Entebbe Applied Academy a great field stretch to enjoy competition in the education business in Entebbe.

2.3.1 School Description

Entebbe Applied Academy, a truly English medium senior primary school, is a start-up high quality educational institution. The school will be looking to lease premises for the start-up of KG classes 1-3 on a yet decided location in the suburbs of Entebbe Wakiso District, Uganda.

EAA programme will be based on the PLAY-WAY method of pre-school education that is advocated for by the International and Ugandan National Curriculum Development Association. Children are encouraged to develop all aspects of their learning potential in a stimulating environment. Learners will not be forced to participate or contribute. Children will be encouraged to participate in the school activities and to develop a natural love for learning. Pre-reading, pre-writing and pre-maths activities will be introduced as fun activities, designed to stimulate the childrens interest in learning the Kindergarten. Entebbe Applied Academy (EAA) will have a strong academic program that prepares children for a smooth transition into primary and secondary school (National and International schools). At entry, EAA graduates will stand out as self-confident, capable and independent learners. The daily school program will provide a wide range of social, academic, musical, artistic and other creative activities.

2.3.2 School Premises

The proposal plan is to start by renting premises for the first phase of the School. The next phase would be to have all necessary government approvals and formalities in place to start building the school. Figure 2 shows the schools land and the buildings. Figure 3 shows an artists rendering of the completed school building. It has four wingswest, north, east, and south. These wings will have classrooms, laboratories, and offices. The eastside extension in the background will house a multipurpose hall and additional rooms.

Figure 2. A sketch showing the proposed school land and buildings

Figure 3. Artists rendering of the proposed school building The plan is to build the school in stages. In the first stage, the school will have classes from KG to 4th grade. A new grade will be added every year after that. In the first stage, 11 classrooms, one office, one teachers residence (housing for 11 teachers), and one principal's residence will be built. The on-campus housing for teachers will enable us to attract better teachers. These rooms will allow us to have first class Recreation rooms, Computer lab, and a library in addition to the classrooms. In the second stage of construction, three additional classrooms, additional office space, and a multipurpose hall will be added by the beginning of the fifth year of operation.

2.4 Capital Requirements

The proprietors will require USH 166,660,000 funds to help lease school premises and support its initial operation. The funds will help take care of rent, administration fees, salaries, teaching material, utility bills and daily school finances The school is expected to become self-sustaining in the 5th year of its operation. At which point that will enable the school to build a total of 20 classrooms including 3 social centres, 2 laboratories (science and computer labs) and one library, three office rooms, teacher housing for accommodating up to 16 teachers, one principals residence, and a multipurpose hall. Table 2 in section 9.1 shows the 5 year budget plan. The requested capital will enable the school to become self-sustaining and to have enough building space to run classes up to the 7th grade. The details of the five-year budget and other financial data are discussed in the financial plan section of the business plan.

School Services
3.1 Overview
The school will offer an ideal setting for students to get quality education. Each student will be treated as a valuable customer who expects the best learning environment. Teachers and other employees of the school will be treated with respect. The school will engage in the following major activities: 1. 2. 3. 4. 5. Manage student learning Manage student services Manage School operation Manage finance and accounting Manage auxiliary services

These activities will go through a periodic assessment of their performance. Each of these major activities is briefly described below.

3.2 Student Learning

Student learning activity deals with the design and implementation of various curricular programs at various levels Kindergarten (KG1-3) and primary 1-7;

3.2.1 Kindergarten
The goal is the development of the child's social, mental and motor skills in a playful learning environment. The teaching methods employed, and the games and toys used at EAA Kindergarten will be based on the educational theories of Friedrich Frbel and Maria Montessori. Due account is taken of the cultural requirements of the country concerned and the teaching is tailored to the local culture. Stimulating children's talents In addition to regular kindergarten activities, pre-school programmes are provided, designed to stimulate young children in line with their talents and prepare them for admission to primary school. Coaching programmes are also available for children with special needs. EAA Kindergarten program will be designed based on: The program will be based on accepted theories of child development. The program will be individualized to meet the need of every child Each familys culture will be respected and family members encouraged to participate in the program The physical environment should be safe, healthy and contains a variety of toys and materials that are both stimulating and familiar. Children will select activities and materials that interest them and they will learn by being actively involved. Adults will show respect for children and interact with them in caring ways. Staff will have specialized training in child development and appropriate programming.

3.2.2 Primary School

We believe in child-centred education which respects the individual child as a resourceful, capable, unique human being who actively participates in her/his own development process and respects diverse learning styles and learning needs. Teachers and principals are the key to child-centred quality education and are actively encouraged to further their professional skills. EAA will run the National Curriculum set by the National Curriculum Development Centre (NCDC) with English, Mathematics, Basic Science, Social Studies and R.E as the four subjects examined by UNEB at primary seven level. In the lower Primary section (P.1- P.3), we will run the Thematic Curriculum which was introduced by the Ministry of Education & Sports some years ago with literacy and numeracy as its cornerstones. Alongside the above; we will have French, Art and Crafts and Computer Studies. We will also have Physical Education, indoor and outdoor games like football, swimming, badminton, wood ball, table tennis and more. Clubs and societies like Red Cross, Wildlife, Scouting, Home Economics, and Writers' Club form part of our range of co-curricular activities.

3.3 Student Services

Student services activity involves recruitment, admission, guidance, counselling, health, etc. A welldefined process will be used to recruit and admit pupils. A screening test will be given to ascertain the knowledge and deficiency for incoming-students. This process will enable the school to identify fitting students who but may need some remedial work in order to get up to speed with the rest of the students. The school will have a well-equiped student-health, first-aid services and keep immunization records.

3.4 School Operation

School operation activities involve maintaining the infrastructure such as recreation centres, library, Information Technology (IT), building, and other facilities. It also involves maintaining the inventory of supplies, equipment, and other assets as well as managing the security of the campus and the pupils.

3.5 School Finance and Accounting

Finance and accounting activities relate to strategic planning, budgeting, financial management, accounting, state and ministry of education rule compliance, implementation of plans, etc.

3.5 Student Auxiliary Services

Auxiliary services will involve management of extracurricular activities, recreational activities, community service activities, student transportation, etc.

The Market
The education sector in Uganda is one of the most robust, with good export potential. This involves institutions at all. Due to the liberalization programme in the sector witnessed in the 1990s, the private sector participation has been encouraged in the education sector. The sector has thus proactively attracted sizeable proportions of international students contributing to national export earnings (approximately US$30 million in 2005) through cross border mode of supply. In 2006, foreign student enrolment in tertiary institutions in Uganda reached 6,930 enrolling in both kindergarten and primary levels.

4.1.1 Investment in Primary Education

Ugandas success in expanding primary education with more than doubling primary school enrolment from about 3.5 million in 1997 to over 8 million by the end of 2010 has created enormous investment opportunities for private investors in the post-primary education levels. The number of pupils who sat their primary leaving examinations in 2010 were 520,000 yet less than a half of them are expected to be admitted to senior one in 2011 due to lack of space and other facilities. This level calls for more investments to be able to cope with the numbers of pupils benefitting from the Universal Primary Education programme.

4.1.2 Investment in pre-primary level of education

Of all the 2,469 schools under pre-primary category as of 2010, 75% of them are owned by the private sector and the rest by the community. Government currently does not own any pre-primary school although increasingly it is getting interested in standardizing its curriculum. With most primary schools giving admission preference to pupils who have attended pre-primary, the number of pre-primary schools will closely follow those of the primary schools overtime. Opportunities for investment are abound in this segment of education.

4.1.3 Education demand by foreigner

The primary and secondary education enrolment by foreigners tends to be largely driven by parents who come and stay in Uganda, mainly by their virtue of their job placements. The accompanying children then enlist in good quality schools whose curricula and facilities are acceptable to parents. In the tertiary institutions, the enrolment tends to be driven by the students quest for good, affordable and competitive schools in the region. By end of December 2010, the Ministry of Education and Sports indicated that private investment was highest in primary education as shown in the Figure 7. The private sector owned about 58% of the secondary schools in 2009 compared to 47% in 2006. Over time, it is likely that the increase in the number of schools will be largely propelled by the enlistment of the private sector investment in the education sector. Recent studies estimate the global market trend for education services at US$30 billion. World leaders in export of education services include: the USA, UK and Australia, etc. Ugandas education sector attracts students mostly from neigbouring countries. In 2005 for instance, Uganda attracted 20,716 students from Kenya, 5,211 from Tanzania, 2,457 from the Sudan, 1,228 from Rwanda and 2,435 from the Democratic Republic of Congo. Other countries are: Burundi, Zambia, Eritrea, Ethiopia, Cameron, Somalia, and India. The EAC and the COMESA regions are therefore the major sources of foreign students to Uganda.

The proportion of schools founded by the entrepreneurs increased from 29% in 2006 to 32% in 2009 while those founded by the Catholic Church and Church of Uganda respectively reduced by 1% and 1.8%. Figure 8 depicts that more and more categories other than government continue to found more schools as they view these ventures as profitable business cases for investment in the education system. The entrepreneurs will continue to dominate this sector for the foreseeable future as long as the policies continue to encourage private sector investment. Entebbe Applied Academy has a focus on meeting the local need for child care services within Entebbe. Children are taken in flexibly on either a full-time or part-time basis. The Entebbe Applied Academy Kindergarten is targeting one specific customer group, the middle to upper class, double income professional families. These groups of families have both parents working, not allowing them time to raise their child during the day. These groups has the money for child care, and are willing to spend a little extra to get a higher level of care. This customer segment has already begun teaching its child advanced concepts like reading, singing, socialization, etc. The EAA will continue to develop the children's skills. This customer group is typically made up of two professional parents. This would explain why the parents 1) have the money for more sophisticated child care, and 2) are ambitious in terms of their children's learning and development.

4.2 Competition
There are mainly two types of kindergartens in Entebbe Community aided and private aided preprimary schools and daycare. On the other hand Entebbe has three types of Primary schools government schools, government-aided private schools, and private schoolsin Entebbe. Private schools account for about 40% of the primary enrolment. Private schools are funded completely through school fees and donations. Aided private schools receive government grants-in-aid and work very much like government schools. Private schools have to follow state regulations, but they have more autonomy regarding curriculum, medium of instruction, types of students admitted, fee level, and studentteacher ratios. There are about 58 private schools and pre-primary. Some of the well-known private schools in Entebbe Wakiso region are Entebbe School, Taibah Junior School, Entebbe Christian School, and Entebbe School.

Entebbe Junior School (EJS) was established as a public school in 2000 in Entebbe, kitooro on the

Airport Highway. It is a private institution run by the Omamteker family. The school runs a daycare, preprimary and primary services with boarding section with self contained dormitories and a sick bay. EJS runs a dual curriculum - Ugandan Curriculum set by the National Curriculum Development Centre (NCDC) and examined by Uganda National Examinations Board (UNEB) at Primary Seven level and the Cambridge International Primary. EJS enrols pupils from all over East Africa.

Taibah Junior School (TJS) was founded in 1994 as private school running programs from

kindergarten through to primary 7. Taibah JS offers both the Ugandan curriculum and British curriculum. The Ugandan curriculum prepares the children for national examinations while the British curriculum prepares them for Cambridge International Primary Programme. TJS has of 2012 attained international status by enrolling children from around the world.

Entebbe Christian School (ECS) is a private owned was founded in 2001 in Lunyo Entebbe

Others Include:

SOS Kindergarten Abaita Entebbe Kissyfur International School Entebbe Entebbe Modern School Joy Infants Primary School Tom & Jerry School St. Johns Kindergarten Crownland pre-primary & Primary School Entebbe Early Learning Centre

4.3 Entebbe Demographic Information

Entebbe is a major town in Central Uganda. Located on a Lake Victoria peninsula, the town sits the State House, the official office and residence of the president of Uganda and the International Airport, Ugandas largest commercial and military airport and the Largest UN Base in Africa. Entebbe is a major town in Central Uganda. Located on a Lake Victoria peninsula, the town sits the State House, the official office and residence of the president of Uganda and the International Airport, Ugandas largest commercial and military airport. Entebbe has slightly over 103 schools with half of that number privately owned and the other Government or Community sponsored. With many the high creation on jobs by the many organisations establishing base in Entebbe and moving to create residence in the area, demand for high quality education school is high.

4.4 Profile of Direct Competitors

Entebbe Municipality has several private schools. The popular schools are: 1. Entebbe Junior School 2. Taibah Junior School 3. Entebbe Christian Academy However, the direct competitors are the two private schoolsEntebbe Junior School and Entebbe Christian Academy. They are both located in close proximity with 4 km apart. They are considered some of the better quality schools. Most of the private schools hire teachers on a contract basis. They also underpay their teachers. For example, according to several reliable sources, a primary school teacher in wakiso is paid between USH 250,000 and USH 400,000 depending on the grade. A teacher with similar qualifications is paid about USH 300,000 by government schools. Private schools can hire teachers at a lower salary because there are a lot of unemployed teachers willing work at a lower salary. The management at most of these schools tends to be quite unprofessional and pays little interest in the welfare of students and teachers. This situation creates two problemslow morale among the teachers and a sub-par education. Teachers are not properly respected. Low paid teachers end up doing outside-tutoring in order to supplement their salary and show only luke-warm interest in the schools at which they are teaching.

Table 1 shows a comparison of tuition and fees among the competitive schools in the area. The tuition and fees data has been taken directly from the fee schedule of respective schools shown in Appendices CE. The proposed tuition and fees for Entebbe Applied Academyl are priced conservatively and are closer to that of Entebbe Junior schools tuition and fees.

4.5 Competitive Analysis and Strategy

Current economic and labor market trends have marked a continued growth in demand for quality kindergarten and primary education in Entebbe and throughout central Uganda. Entebbe Municipality families with children are hungry and desperate for their children to have an education that propels them into a better future. As a result, a competitive environment for a well-funded school providing quality education is extremely favourable. The demand for additional schools was recently demonstrated by the fact that two new schools attracted over 900 students in their first year of operation in and around the city. There is a very strong demand for quality pre-primary and primary education. The competitive environment offers ample opportunity for organizations wishing to provide primary and secondary education. The above competitors serve similar populations and similar admission criteria. However, Entebbe Applied Academy will use a more comprehensive educational service model, attract better teachers, and provide high quality education. EAA will quickly establish a competitive advantage by focusing on the needs of the students and teachers. Teachers will be well paid. The principal and most of the teachers will be offered on-campus residence. This will enable us to attract better teachers from the various parts of East Africa. State-of-the-art facilities and IT infrastructure will create a more hands-on learning environment for students. STEM education will have high priority. The school will differentiate itself by providing excellent service to students.

Marketing Plan
5.1 Marketing Overview
Entebbe Applied Academy will use a dynamic marketing campaign to achieve branding and promote visibility in the city as well as in the region. The school plans to initially establish brand visibility within the local community market of the Entebbe Municipality and eventually expand into the regional state market. Currently children of this region easily travel 6 to 20 kilometers to attend a good school. School buses transport students from home to school and back. The school will involve itself into volunteering work in and around the city in order to create a more positive and true image of the school. The following marketing strategies will be integral in generating sustainable revenue and growth.

5.2 Branding Strategy

Entebbe Applied Academy will bring to educational market a high quality educational experience by providing excellent facilities and service to students and teachers. The branding objectives for Entebbe Applied Academy will focus on building credibility for its high quality education at a competitive price, backed by highly qualified teachers and an active learning infrastructure. The school will strive for exposing students to British English speaking and teaching. It will establish collaboration with the British where university students will do internships at the school and teach English to primary students. The school will hope to build a reputation for its educational program. Entebbe Applied Academys brand will eventually convey the following five strategic goals: Excellence in well-rounded education Focus on quality and relevance Exceptional Social and Family Values Excellent learning and teaching environment Educational outreach

5.3 News Paper Advertising

Spotlight Ad and Informational Ad about the school and its activities will be published in the local and other newspapers regularly.

5.4 Signage
The school will feature prominent signage along walls that are visible to walk-by and drive-by traffic. The signs will be large banners that garner attention of individuals that pass by the school facility.

5.5 Internet Marketing

Entebbe Applied Academy will implement a variety of Internet marketing techniques to promote its brand, mission, and services. The school will use website, email marketing, blogging, and social media to reach various kinds of families in the community. Website will be a base for pupils information. The website will become an accessible source of information about the school and its services.

5.6 Door to door marketing

BUSINESS MODEL
This Business Model is based on that Entebbe Applied Academy will start-up as a kindergarten & crche centre which is for the children from age of 2 Years to 6 years and as far as future prospects are concerned, the company is planning to develop into a primary school to retain children from KG. The business model itself is an important determinant of the profits to be made from an innovation. A mediocre innovation with a great business model may be more profitable than a great innovation with a mediocre business model. The business model is simply a working description that includes the general details about the operations of a business. There are major six components of Business Model 1. Value Proposition What will make Entebbe Applied Academy different from many programs is our decision to limit enrolment to small group size approx.25 with more than adequate staff to ensure a satisfying experience for children and families. For shy or introverted children, it is sometimes a struggle to find a comfort level in a large group. Our staff understands child growth and development and makes a point to adapt their style of interaction to the specific needs of your child. We will offer uniquely premium child care services, as measured by the curriculum and activities offered, experience and educational level of the instructors & parents involvement. 2. Market Segments Entebbe Applied Academy will compete well in market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents. Childrens are taken in flexibly on either a full time or part time basis

Part time working couples

The ongoing trend of Entebbe reveals that the full time working couples are comparatively less but approximately comprise of 30% of total client base

Full time working couples Others

Part time working couples will become a major client base i.e. approximately 50%. There are some other families also for whom high quality education is important or who what to provide a very strong base education to their children, comprise of approximately 20%. 3. Value Chain structure Value is primarily a combination of quality, service and price. Value Chain Analysis is an organized approach to explore the progress of competitive advantage. The chain consists of a series of activities performed by a firm in the creation, development, marketing & support of its product or services. The product or service offering will be successful if it delivers value and satisfaction to the target buyer who chooses between various market options on the basis of what they perceive to hold most value.

Inbound logistics

As for the Entebbe Applied Academy Kindergarten, the inbound logistics are children aged 2 - 6 years old who are enrolled to study Crche and Kindergarten education.

Operations

Entebbe Applied Academy exists to provide premier child care services that are aimed at enhancing traditional day care methodologies, introductory reading (Jolly phonics), painting, writing and integrating

extracurricular interests (such as arts and crafts, dance, theatre and gymnastics) into one comprehensive program. Our developmental programs will reinforce basic social, listening, independence and motor skills and prepare students for future related interaction.

Outbound logistics

The outbound logistics of the kindergarten is when the children graduate from basic pre-school education at the age of 5/6 where they are prepared and trained to be able to cope with primary school education.

Marketing & sales

Marketing in the child care industry depends largely on reputation and referral. In Uganda, Word of mouth is the best instrument of marketing &promotion strategies as people rely on their neighbourhood more rather than print & media advertisements. The company will be giving more emphasizes on providing quality care so that good word of mouth can be spread.

Services

Basically, Entebbe Applied Academy will provide education from the level of nursery(age 2) to the level of pre-school education (age 6). Apart from the usual learning modules, the kindergarten also provides activities as arts and crafts, dance, theatre and gymnastics. We will offer state-of-the-art technology programs in leading-edge facilities which help prepare students for the technology age in which they live.

Human Resource Management

In Entebbe Applied Academy, all the employees are appreciated for their services and usually rewarded for their work by giving them quarterly bonuses, annual dinners, group holidays and increment on their pay. The teachers are also sent for special Montessori workshops (if available) to be able to improve on their teaching skills. The administration of the kindergarten is in charge of employing new employees who is seen to have a bright future at the kindergarten and the principal is responsible to keep all the employees in line and also motivated to be able to provide the best learning experience to the children. Technological Development As the public is more aware of the growth of information technologythese days, technology plays an important role to gain the competitiveadvantage. By implementing the use of technology into the businessorganization, it enables any organization to reduce cost and also maintaina good competitive advantage. Example of existing technology that iscurrently used at the kindergarten are student management system, usingemail as a form of communication between the two branches and toparents, having a website as a form of communication between theparents and the kindergarten, the use of a fax machine, photo-copier andalso computers for the use of staff, teachers and student. 4) Revenue generation and margins School fees Canteen Medical facilities Pick & drop facilities

Extracurricular activities 5) Position in value network Entebbe Applied Academy is operating on a franchisee model. There are various kinds of services provided by the academy i.e. transportation, food & beverages, medicalservices and extracurricular activities. Among these, facilities as pick & drop andcanteen will be outsourced. 6) Competitive strategy Theres not a single competitor in Jaipur providing specialized kindergarten &

crche services but there are some others who are either providing pre-schooleducation or providing education from primary to higher education. Competitors of Entebbe Applied Academy are Dolphin preschool, Turtles, Bachpan, Euro kids and SubodhSchool. Entebbe Applied Academys competitive edge is four-fold: Specialized training The facility can only be as good as the teachers and assistants. With this inmind, The Entebbe Applied Academy has a specialized training program that allteachers and assistants are put through so they are proficient at teaching thespecific programs that the academy has developed for kids age two to four.The employees are put through an intensive week long course and only afterthey pass the intensive training will they be allowed to work with thechildren. Innovative learning programs Typical learning programs for kids this age focus on specific traits and onlywork on one trait/ skill at once. While this is successful in reinforcing theskill, it is often very difficult for the child to appreciate the interrelationshipsof the different skills. Consequently, the child can learn the skill, but hasdifficulty in applying the skill when faced with multiple stimuli. Then thechild tends to shut down out of confusion. Therefore skills are necessarily betaught together, just as we would expect to encounter them in real life, thechildren are able to assimilate the new task into their skill set much quicker. Custom made services Services will be provided to childrens as well as their families according to their needs. For ex. Pick & drop facility will be provided according to theirneed. Safety One of the goals of Entebbe Applied Academy is to provide a safe environment forchildren and to give parents a sense of security when their children are in ourcare. We take this commitment seriously and have systems in place to ensureThis goal is carried out. Classrooms and common areas are equipped with closed circuitcameras to Allow constant monitoring by parents and management The entry of each school is equipped with a magnetic lock and codedkey pad for added security. A staff person is centrally located toScreen visitors upon arrival A fence surrounds all of our playgrounds and gates remain secured

SALES/MARKETING PLAN The Entebbe Applied Academy is targeting a very specialize niche in child care space. Withthis in mind, The Company must then carefully communicate it's services if thecompany is to be patronize by this target segment. What will be communicated areEntebbe Applied Academy competitive advantages: specialized training of the staff andinnovative learning programs. If the targeted parent hears and understands theseadvantages, they will more likely be willing to switch to Entebbe Applied Academyservices. Companys sales approach would preferably be indirect sales strategy as the main focus is to introduce new capabilities & criteria that the competitor may not haveand targeting those competitive advantages mainly available for buyers evaluation criteria.

Marketing Strategy Marketing in the child care industry depends largely on reputation and referral. InIndia, Word of mouth is the best instrument of marketing & promotion strategiesas people rely on their neighborhood more rather than print & mediaadvertisements. The company will be giving more emphasizes on providing qualitycare so that good word of mouth can be spread. Promotion Strategy We will depend on client referrals, community exposure and direct mailcampaigns as our main way to reach new clients. As we change strategies,however, we need to change the way we promote ourselves: Advertising We'll be developing our core positioning message: Early Child Care Development and Education Excellence to differentiate our service fromthe competition. We will be placing advertisements in newspaper and magazines like India Today2) Sales Brochure Our theme and curriculum will help sell the school to prospective clients.3) Referral scheme Our main strategy for promotion will be referral scheme. In India we havenoticed people get influenced more by what their friends and relative say ,rather what is been advertised in newspaper and television. So, based on thisbelief referral scheme will be used to promote school and to get admissionsof more number of students. This scheme will include providing 10 percentdiscount on monthly fees of students, whoever gets 2 students as referral foradmissions.4) Direct Mail We will send quarterly direct mail campaigns to the working women inJaipur and we will also offer monthly calendars for parents. Marketing Programs Our marketing effort will include an application fee waiver, free children IDcards, T-shirts and a welcome party sponsored and hosted by Entebbe Applied Academy

Positioning Statement For families who value the importance of higher education and quality child careservices, Entebbe Applied Academy offers a great alternative to traditional child careservices and specific interest based programs. Unlike those programs, LegacyAcademy combines child care services with a modified collegiate level curriculum, just for kids! Pricing Strategy Entebbe Applied Academy must charge appropriately for the high-end, high-qualityeducational and care giving services we offer. Our revenue structure has tosupport our cost structure, so the salaries we pay to assure quality services must bebalanced by the revenue we charge. Basically value based pricing will be followedi.e. how customers perceive or value or product.We will be price competitive in the market we serve; however, we will notsubscribe to the "low price leader" concept. The quality of our service will supportthe prices we charge. Sales Strategy Entebbe Applied Academy will sell its standard theme, services and offerings, separatingitself from traditional daycare-only offerings.We will be a one-stop shop for child care services, advanced learning andspecialized program offerings. We will also be active in building a solid reputationwith parents. By succeeding in these areas, we expect to begin seeingan operational net profit in month nine of the 1st year, while increasing enrolment by 32% monthly for the first 8 months and gradually thereafter, until our maximum allowed capacity is reached.

PRODUCT/SERVICE DEVELOPMENT PLAN Entebbe Applied Academy will start-up as a kindergarten & crche centre which is for thechildren from age of 4 months to 4 years and as far as future prospects areconcerned, the company is planning to make following developmentsIncrease the number of branches in Jaipur as well as throughout India Entebbe Applied Academy will start-up as a single branch in Jaipur. But, within thetime span of 2 years company aims to increase its branches in Jaipur as wellas throughout India. With the increase in number of working women andgrowing importance of education the demand for Entebbe Applied Academy willdefinitely enhanceStart primary school Entebbe Applied Academy will initially start up as a Kindergarten & crche centre but soon after achieving good amount of response, itll set up an elementary school so that ROAD MAP Sales and Marketing Objectives Grow the number of customers by 25% annually. Build customer loyalty through superior service and educational/ development systems. Increase the referral rate by 5% per quarter. Sales Forecast As the following table shows, the company plans to deliver sales of approximatelyRs. 36, 00,000 in the first year, Rs.54, 00,000 in the second year, and Rs. 80,00,000 in the third year plan implementation.

Management and Staff

The school will be registered with the Ministry of Education and Sports, the primary curriculum will be design in accordance with the National Curriculum Development Centre (NCDC) and primary 7 exams set by UNEB. It will follow the MOED bylaws as it pertains to the management of a primary school. As per the bylaws, the managing committee of a private school shall consist of not more than 21 members. The Entebbe Applied Academys Management Committee shall include the following namely: 1. 2. 3. 4. The manager of the school; The head of the school. He/she will be a Member Secretary of the School Managing Committee; Two parents of students in the school; Two teachers of the school;

5. Two other persons, who are, or have been teachers of any other school or of any college, to be nominated by the EAA Trust; 6. Two members, from out of a panel recommended by EAA Trust to be nominated by the Board; 7. One additional member to be nominated in accordance with the rules and regulations of EAA Trust by which the school will be run. Thus, the Entebbe Applied Academys Management Committee will consist of 11 members.

6.1 Executive Management

The overall operation and management of Entebbe Applied Academy will be handled by EAA Trust, the owner of the school. The trust board members are listed below: 1. 2. 3. 4. 5. 6. _____________ _______________ ________________ ______________________ ________________________ _____________________________

6.2 Staffing and Teachers

Entebbe Applied Academy will conduct a nationwide search to recruit an able, personable, and wellqualified principal. The school will work to hire and to keep highly qualified teachers. The school will make use of recruiting services nationwide in order to find good teachers. The school will carefully hire new workers due to the special needs of the nature of the workdealing with students and their safety. Extensive background checks will be conducted on all potential staff and teachers to verify academic and criminal records and their social skills. Extra care will be taken to ensure that new workers represent their background and skills honestly.

Personnel Plan Board Members Principal KG Teachers Primary Teachers Accountant Administrative Assistant Year 1 Year 2 Year 3

Operational Plan
7.1 Operational Overview
The primary schools academic session starts in January. According to the current plan, the school will start the operation in the month of ______. It is estimated that it will take about six months to secure rent premises, recruit and make the facilities ready for educational use. Therefore, the funding calculated in this document is to take care of the first phase of establishing the school.

7.2 Facility Layout

The sketch in Figure 2 shows the schools land. The school building and two residences are also shown with the raised blocks. This is for the consideration of the sponsors. It should be very strategically located inside the city limit but away from the city crowd. But since the school trust is not considering construction in the first phase of establishment, EAA will seek out to rent equally feasible premises. Management will ensure that the facility is properly licensed and in full compliance with all applicable MOES and state regulations governing the operation of an educational institute.

7.4 Recreation Centre and Library

The school will have a fully equipped recreation room/s for social hours especially for nursery pupils. There will be visualization aids and other tools in the centre in addition to the playmate equipment. Excellent library facilities will be provided to encourage reading.

7.5 Campus Safety

The campus safety will be maintained all the time. The campus will be secured with a well-constructed and fenced boundary with a manned entry gate. A security firm will be hired to secure the premises 24 hours.

7.6 Accounting, Billing, and Collections

Accounting and other related operations will be stream-lined. Best-practice accounting techniques such as activity-based accounting will be used to manage expenses. A proper separation of duties and responsibilities will be maintained in financial and other areas. Appropriate accounting and billing software will be utilized to support the schools operation. Student registration and fee collection software will be integrated with the accounting and billing software.

7.7 IT Infrastructure
It is envisioned that IT will play a major role in creating a highly effective educational environment. A highly secured network of servers and client workstations will be maintained. Cloud computing and other appropriate IT concepts will be used to minimize the storage and maintenance of physical devices on the campus.

Financing and Growth Strategy

8.1 Capital Requirements
Entebbe Applied Academy seeks USH 166,660,000 in funding to finance the successful implementation of the schools educational venture. The fund will be used as follows: Marketing Rent Equipment & Furniture Leasehold Improvement IT Infrastructure Support the school operation for 3 years Unforeseen expenses TOTAL CAPITAL FUNDS USH 10,000,000 USH 24,000,000 USH 37,510,000 USH 12,000,000 USH 15,000,000 USH 53,150,000 USH 15,000,000 UHS 166,660,000

8.2 Financial Strategy

Sun Academic Foundations financing strategy to _______________________________________ _______________________________________________________________________________ The seed fund of $380,000 will enable the school to build out its operating facilities as provided for its capital plan, recruit teachers, and commence its marketing and operation smoothly. It is projected that the seed fund will enable the school to launch its educational operations and successfully implement its business operations plan for providing a life-changing education to children deserved for quality education.

8.3 Risk Analysis

The risk associated with this venture is very negligible. The primary source of risk is related to the future uncertainties about the need for quality education in Entebbe areas. The market demand for primary education is growing rapidly throughout Uganda. More new families in Entebbe have high enough income to provide good education to their children. The management believes that the market opportunities are significant and the chances for success are excellent.

Financial Plan
9. 1 Five-Year Budget Plan
Table 2 shows the five-year budget plan. The school will run KG1-3 and Primary 1-4 the first year of operation. It is estimated that the school will enrol 235 tuition-paying students in the first year. Each grade will have 30 to 40 students. An earnest attempt will be made to reduce the class sizes in two to three years once the school gets established. We are very confident that it would be possible to charge a higher tuition and fees once the school gains reputation for high quality education. This will enable us to reduce the class sizes and possibly run multiple sections of classes. The enrolment estimate of 235 students in the first year of operation is a conservative estimate for the number of students. There is a waiting line of students to get into good schools. We have no written evidence on the waiting lines since schools do not publish this kind of information. However, our own experience and the experiences of families with children in Entebbe Municipality tell us that not only are there a waiting line of students but also there is a desperate desire on the part of parents to find better schools even if the children are bussed more than 20 kilometers (12 miles) away from their homes.
Table 2; 3 Year Budget Plan Five Year Budget--Surya International School--Junior High To High School--A NonProfit School (in US $) Item Estimated Number of Students Annual Revenue from operations Estimated External Funding Annual operational Expenses Principals Salary Teachers Salary Staff Salary Other Expenses (Electricity, Water, Books and Supplies) Computer & Building Maintenance Administrative and Incidental Expenses Marketing Expenses Total Annual Operational Expenses Capital Expenses Rent (12 months) Auxiliary Items (Equipement, Furniture, Books) Leasehold improvements Total Expenses Net Working Capital Cumulative Net Working Capital Current Capital Preparation Months Year 1 (KGP3) 235 384,225,000 14,400,000 57,000.000 23,000,000 12,000,000 2,560,000 10,000,000 12,560,000 175,582,000 17,142,000 52,040,000 Year 2 upto P5 Year 3 Upto p7

166,665,000

24,000,000 37.510,000 12,000,000 62,070,000 199,582,000

9.2 Revenue Model

Entebbe Applied Academy will generate revenues from tuition and fees charged to students. Table 3 shows the details of tuition and fees for different classes. The row titled Total Monthly (including tuition and fees) shows the total monthly charge for each student. These estimates are very competitive for the education market in central regions of Uganda. As can be seen from the fee schedules of other schools shown in Appendices C-E, Entebbe Applied Academys monthly charges are very reasonable. These monthly charges will be paid by a students parents during the first week of every month in advance. Some private schools collect tuition and fees on a quarterly basis.

Table 3. Tuition and fees estimates.

Tuition & Fee Schedule (Estimates) Annual Fee Registration Fees (paid once) Tuition Fees Day care fee (optional) Boarding Fee (optional) Swimming Fee (optional) Uniform Fee (1 pair) Total Term Fees Total Annual fee

Kindergarten New 150,000 300,000 90,000 00 70,000 75,000 685,000

Continuing 00 300,000 90,000 00 70,000 75,000 535,000 1,605,000

Primary New 150,000 400,000 00 350,000 70,000 75,000 695,000

Continuing 00 400,000 00 345,000 70,000 75,000 545,000 1,635,000

The three-year budget plan in Table 2 shows the revenue projection for three years. The school is projected to be self-sufficient by the fourth year of operation.

9.3 Expense Assumptions

The building rent shown in Table 2 has been computed based upon ...... The salary expense has been computed based upon the Pay Commissions recommendation shown in Appendix G. The salary estimates are based upon the governments recommendation for salaries. However, the private schools in Uganda hire teachers on a contract basis and pay a lot more than public schools (up to 20% less) than the official recommendations. The reason for this is that the unemployment rate is quite high in Uganda, and teachers are willing to work at a lower salary. This indicates that Entebbe Applied Academy will be able to attract better teachers even if the school hires them on contract as long as the school pays more salary than the salary paid by other area schools. The expenses for other items such as utilities, tables and chairs, computers, etc. have been determined based upon the current going rates in Uganda.

9.4 Income and Expense Estimates

Appendix A shows three-year income and expense estimates. The estimate indicates that the net cash flow from the schools operation will become positive in the third year. The management strongly believes that the school will not need any external financing to support its operations. It is anticipated that the internally generated cash flows will be more than sufficient to support growth and sustained financial liquidity.

Appendix A. Income and Expense Details for three Years