The History Of Eandm Resource Center

Published Date: 02 Nov 2017

E&M Resource Center was founded by Ernestine Dahn while she was obtaining her MBA at Beulah Heights University. The company is currently in existence informally with operations being informal; picking up students here and there. While it has filled some of Ernestine's spare time, she is now ready to concentrate on developing this business into a more efficient source of revenue while retaining the joy of tutoring that attracted her to the business.

The first step of this transformation is the writing of a business plan. This plan is being used as an internal document to assist in the development of the business. E&M Resource Center operates with very low overhead, therefore E&M Resource Center will not be seeking capital for operations.

Financial Highlights

The business will not need a substantial start-up capital; this is because the business will be ran from the proprietor's home and church community center, at the convenience of the client. The business is intended to be a Sole Proprietorship causing the overhead to be extremely low.

Sales are expected to overall, gradually increase over the years with there being a steady increase in net profit. There are no direct costs and operational expenses will be limited to promotion of the business and simple office supplies such as stationary and pencils. Estimates are extremely conservative in the budgeting process.

Financial Highlights by Year

What We Sell

E&M Resource Center offers a wide range of academic subjects to be tutored. Sessions can be set up by subject, individually or through group sessions. Private Sessions offer individual assistance, but group sessions can be beneficial with decreased economic costs and the use of team-based approach. E&M Resource Center provides a collection of past quizzes and exams which are invaluable for facilitating the material and for exam preparation.

For all students, E&M Resource Center uses a strategic approach to studying and solving problems. This unique problem solving approach taught to students provides a system to approach all topics that they encounter in school. This system seeks to provide the student with a way in which they can better solve their own queries. This system differs from most tutors who are primarily concerned with answering the student immediate questions and not concerned with providing the students with basic problem solving skills for future applications.

Who We Sell To

E&M Resource Center has identified several target market segments that will be pursued. The largest segment is the middle and high school students. Ernestine has close relationships with most of the potential clients because they attend her local church allowing her to understand her clients; it also allows her to tailor the tutoring to the specific needs of the students. Within this market segment there will be three subgroups: quantitative clients, non-quantitative clients, and international students. E&M Resource Center hopes to also serve undergraduate and graduate students from the surrounding colleges in the near future.

Company

Company Overview

E&M Resource Center is an academic resource center that caters to changing the lives of students at various academic levels. This company's focus is primarily on offering tutoring and mentoring in the following fields of study: Math, Science, Language Arts, and Writing. Tutoring services will also available to students who are taking general education courses at the Undergraduate and Graduate level of education in time to come. Tutoring sessions will focus on helping students grasp the concepts they will need to know in order to do well in their classes; these sessions will also aim at facilitating effective strategies for preparing and studying for exams. A long-term focus of empowering students is better than a short-term problem solving strategy.

Management Team

E&M Resource Center is at the moment a Sole Proprietorship with movements being made towards a General Partnership. This company is owned and operated by Ernestine Dahn. When the company moves into a partnership, it will be owned and operated by Ernestine and her sister Deborah Dahn. Both partners will be equal and will have established a partnership agreement. Ernestine will then focus on the Undergraduate and Graduate level while Deborah will cater to the High and Middle school crowd. As the business continues to grow, the sisters wish to add qualified tutors; it is also foreseen that the company will be transitioned into a Limited Liability Company (LLC) within the next 5 years.

Company History

E&M Resource Center came into being by accident. As a part of a National Honor Science Organization called Tri-Beta and being a part of the National Honor Society in High School, the founder of E&M was constantly tutoring others in the area of Science and Math. After high school and into her undergraduate program, she still tutored friends and family whom needed help in those subjects. As she started her graduate program at Beulah Heights University, more people gravitated towards her to the point that her family persuaded her to begin charging people for her services.

Ernestine discovered that she was able to connect with both children and adults when it came to academics. She could break down the information with patience and clarity; two things that were not being received by some individuals in their educational pursuit. Though she had no certified teaching license, Ernestine realized that she could begin with a small tutoring business that catered to the people around her and in her community for a small fee. Realizing the potential for establishing something great, she decided to officially create the E&M Resource Center.

Services

Review courses and specific topic tutoring for courses in:

Math (Algebra, Geometry, Calculus, basic college math)

Science (Biology, Chemistry, and Physics at all grade levels)

Language Arts

Writing

Other courses

Experience has shown that teachers and professors utilize quizzes, tests and exams as both evaluation and teaching tools. Students are therefore encouraged to review past examinations and quizzes to see where they still have room for improvement. Reviews of previous exams and quizzes are critical when it comes to grasping the concepts needed for future exams as well as assessing progress in the class.

Based on this observation, E&M Resource Center will collect previous exams and quizzes from the students being tutored. Students will then be provided with strategic study plans to aid them during their personal study time in preparation for future quizzes and exams. Students are also prompted to come to each session with prepared questions and items to discuss.

E&M Resource Center will utilize a strategic approach to studying and solving just about any problem. The first step will be to identify and understand the problem that the student is dealing with. The next step will be to formulate an action plan specialized for the individual person because no two people are the same. The final step will be for the student to keep themselves motivated and surround themselves with positive influences. This approach is unique to the individual; it empowers the student to be less anxious and somewhat confident when faced with difficult problems in class and on examinations.

Tutoring sessions will be held in the community center at Greater Refuge Tabernacle Ministries located in Stone Mountain, Georgia. This will be the prime location because E&M wishes to begin with the church community and majority of the congregation have residence in the Decatur/Clarkston region where the church is located.

Future Services

E&M Resource Center future business endeavors will be broken down into a simple five year plan. 

In year 1:

Move from Sole Proprietorship into a General Partnership with Deborah Dahn

Establish connections with local schools around the community

Successfully tutor and mentor 20 loyal clients

Create a Website and email account where students can contact the tutors

Within three years:

Expand the number of students to 50+

Establish tutoring sessions online for people who cannot afford to come to the community center

Begin to target and receive funding from outside sources

Employ additional qualified tutors

Within five years:

Outgrow the community center and find a new location

Expand the business; become registered as an LLC

Begin branching off into new ventures such as extra-curricular activities that include Arts & Crafts, Dance and Theater 

Connect with graduate and undergraduate schools to establish writing labs

Competitors

There are a wide variety of educational and learning centers and other direct and indirect competitors in the Stone Mountain area. Some of the closest in terms of location and quality include the following:

Sylvan Learning Center. Sylvan Learning Center has a slogan: We're leading the way in personal learning. At Sylvan, they offer what is known as the Sylvan Insight which is a strategic four step process that first assesses the child's individual talents and needs. The next step is to build a learning plan to fit the child's needs. Third, the expert teachers put the plan into action and lastly, the child puts their skills and confidence into action. Sylvan offer their services to students from Kindergarten to high school

DeKalb County Board of Education Special Services. As a part of the special services offered by the Georgia Board of Education, Supplemental Educational Services (SES) is additional academic assistance program designed to increase the academic achievement of students attending a Title I school that has been designated by the state to be in need of improvement for more than one year. These services include academic assistance such as tutoring and are provided to students in subjects such as reading and math. This service is however only catered to low-income families and those in the county of DeKalb.

E&M Resource Center greatest competitor is Sylvan Learning Center because it is an established and well-known tutoring center. It caters to a similar target audience as E&M and offer similar services. However, E&M Resource Center will stand apart from the competition because our services will also be offered to adults and will be offered at a cheaper price.

Target Audience

Market Overview

Tutoring has been around as long as students. And as long as students get in over their head, they will need tutors to help them catch up and keep up with their classmates. Some materials just need to be explained in different ways for them to make sense. However, while the need for tutoring exists, the bulk of tutoring taking place in the market is very limited and unorganized. What sets this company apart is the patience and attention that is paid to the individual needs of the students.

The company was founded upon tutoring students in various grade levels at different schools. However, E&M would like to now focus on students in middle and high school in the Clarkston and Decatur area. This will remain the core segment of the company. However, other segments have been developing and show potential to provide future income. Middle and high school as well as undergraduate and graduate students can be divided into three groups: quantitative students, non-quantitative, and international students. Please review the following section which provides additional detail regarding the different target segments. 

Key Customers

Target market is segmented into three groups which are as follows:

Quantitative: These are students who are at the enrolled in quantitative classes such as: algebra, calculus, statistics, geometry and Trigonometry. While this remains the backbone of the company's business, other areas have been growing quickly and are poised to take off.

 

Non-quantitative: These are students who are requesting tutoring for other subjects that are not quantitative. For example, language arts, biology, chemistry and writing. The sciences are in demand as much as the math courses but subjects like language arts and writing are not traditionally in high demand. The ability to assist and facilitate the students with homework, studying and preparation for upcoming exams has been a popular service that should only continue to grow in the future.

 

International students: Because of the large percentage of students from foreign countries attending and going back to school, a specialized service is provided to them. The same courses are tutored, but the focus is less on the math or subject of discussion and more on helping them develop the language skills necessary or simply reviewing the subjects their professors and teachers covered. The same is true of the non-quantitative courses. The stigma and embarrassment of having to seek out help have been replaced with a view toward the services as the price of being able to compete in the foreign language (English) at their true capacity. Growth is expected to continue as more and more students use the services and their stigma diminishes.

Strategy and Implementation

Marketing Plan

Overview

Our marketing strategy is a simple one: satisfied customers are our best marketing tool. When a client leaves our sessions less anxious and more confident in their ability to understand the work being assigned to them, our name and service will stand on its own. We have spoken to several potential clients in the church community who are excited about our plans. In addition to word of mouth advertising, we will distribute flyers around the community and at local schools for bulletin boards, offering an initial free consultation during the summer months and a discount to students referred by a school and not church.

Positioning

We hope to identify with low income families who cannot afford expensive tutoring sessions at other facilities. We also, in the future, hope to identify with the undergraduate and graduate campuses that do not have effective tutoring and writing labs in place.

Pricing

Rates for each session are set at the discretion of the partners based on the needs and financial situations of each individual student. Presently, the rates are as follows:

Math & Science tutoring--$15/hour (for individuals)

Writing--$12/hour (for individuals)

Language arts and other subjects--$10/hour (for private and group sessions)

All group sessions--$10/hour

Promotion

Promotion will be spearheaded by word of mouth because of its low cost; it will then be followed by distributing and posting flyers around the community center and local schools.

Distribution

We will offer tutoring services which will be distributed directly to the clients from the church community center and my home via private or group sessions.

Sales Plan

The bulk of sales come from word of mouth. The church community consist a small group of well-known individuals who can express their gratitude at the service they have received from E&M Resource Center. Therefore past clients provide most of the advertising for the company. Getting seen and getting word out to potential clients is always important. One important message to convey is that the tutoring services are not just for slow students who are having a hard time keeping up, but for anyone who wants an edge and to get the most out of their learning experience.

E&M Resource Center will develop and maintain testimonials of past student clients for a sales pitch indicating just how helpful E&M Resource Center has been to the students. E&M Resource Center will periodically offer a free session, typically during the summer months when regular classes are not in session. The goal of this session is to provide qualified leads with an opportunity to experience E&M Resource Center and view for themselves how effective the service can be. This sales event will be able to convert many possible customers into paying customers, people that possibly would not have even considered a tutoring service, not previously recognizing their own need for such a service. After the free session many "doubters" will be converted into customers.

The sales strategy will also emphasize the ability for students to create private groups for tutoring. By forming a group, the students pay less per person, E&M Resource Center makes more per hour, and it promotes group work, a fundamental educational and real world tool.

SWOT Analysis

Strengths

The greatest strengths that E&M Resource Center possesses are the attention, patience and care that we provide each client. We make them feel comfortable and less intimidated about the subject matter at hand. Through experience, we have gathered that when clients are anxious and their anxiety level is high, no learning can effectively take place; however, when clients feel confident, their ability to achieve more out of their learning experience is brought to fruition.

Another strength that E&M Resource Center possesses is our invaluable ability to connect to our clients. Because we cater to church members and their friends in the surrounding communities, we have strong existing customer relationships as well as strong knowledge of our target market.

Weaknesses

As we build on our strengths, we need to also stay conscious of those areas of weakness. We are a new business that is currently in Sole Proprietorship form that has to compete with well-known companies such as Sylvan Learning Center. Though we have clients from the church community, we still need to break into the local markets and form connections/partnerships with local schools.

Being that the founder of this business originates from a foreign country, she can form connections quickly with clients who experience fear and anxiety when it comes to learning and taking examinations. However, this could eventually lead to a downside for the company when it comes to expanding the business in order to create a more diverse clientele base.

Opportunities

The greatest opportunity for E&M Resource Center is the need for tutors; especially tutors for students in the low-income family bracket. These students cannot afford the high-paying tutoring programs and are therefore left without much hope. At E&M Resource Center, we can cater to their needs at a price they can afford.

Threats

A major threat that could possibly face E&M Resource Center is the DeKalb County Special Service program that offers after school tutoring to Title I schools.

Strategic Alliances

E&M Resource Center will professionally partner up with local schools in the area to receive past examinations and quizzes targeted at helping clients better prepare for future teaching evaluations. In addition to receiving these resources, the schools would be advertising for the company as well.

In the future, we hope to strategically align ourselves with undergraduate and graduate schools that do not have effective resource centers to offer writing labs and tutoring assistance. One such school we hope to acquire is Christian University Beulah Heights located in the Atlanta, Georgia area.

Milestones

Milestone

Due Date

Who's Responsible

Business plan completion

April 20, 2013

Ernestine

Begin advertising

May 04, 2013

Ernestine

Successfully complete first month session

May 18, 2013

Ernestine

Connect with local schools

August 31, 2013

Ernestine

Exit Strategy

The principal owner of E&M Resource Center, founder Ernestine Dahn, believes in her business model, and in her experience-based view of the future. She foresees the business growing steadily for many years, and plans to be an active participant in the business. By the end of year seven, the principal investor, Ernestine, will have been repaid several times over.

At that time, she envisions her employees becoming full partners with concomitant investment. If the original investor wishes to exit the company, this will be the time.

Financial Plan

Sales Forecast

FY2014

FY2015

FY2016

Unit Sales

Math Tutoring

188

200

250

Science Tutoring

189

200

250

Writing

149

175

200

Language Arts

163

175

200

Others

151

175

200

Price Per Unit

Math Tutoring

$15

$15

$15

Science Tutoring

$15

$15

$15

Writing

$12

$12

$12

Language Arts

$10

$10

$10

Others

$10

$10

$10

Sales

Math Tutoring

$2,820

$3,000

$3,750

Science Tutoring

$2,835

$3,000

$3,750

Writing

$1,788

$2,100

$2,400

Language Arts

$1,630

$1,750

$2,000

Others

$1,510

$1,750

$2,000

Total Sales

$10,583

$11,600

$13,900

Direct Cost

Math Tutoring

$0

$0

$0

Science Tutoring

$0

$0

$0

Writing

$0

$0

$0

Language Arts

$0

$0

$0

Others

$0

$0

$0

Total Direct Cost

$0

$0

$0

Gross Margin

$10,583

$11,600

$13,900

Gross Margin %

100%

100%

100%

Sales by Month

About the Sales Forecast

The sales forecast has been developed to predict future sales in a conservative manner. It is expected that sales will gradually increase as more students are served and the company receives more testimonials.  Though there will be an overall increase in sales over time, there will be varying sales at different times of the year. During the school months, sales will increase and during the summer and winter months, sales will decrease due to students being on vacation from classes. Please review the following table and chart which details monthly and yearly sales broken down by the various sessions being offered.

Budget

Budget Table

FY2014

FY2015

FY2016

Operating Expenses

Salary

$3,550

$3,700

$3,800

Employee Related Expenses

$180

$185

$190

Marketing & Promotion

$30

$30

$30

Office Supplies

$688

$812

$973

Total Operating Expenses

$4,448

$4,727

$4,993

Expenses by Month

About the Budget

There are no direct costs to E&M Resource Center because it is a Sole Proprietorship that will be run from a church community center and the home of the sole proprietor. The sole proprietor lives with parents and the church is run by the father so no extra expenses will be incurred.

Operating costs include marketing/promotion and office supplies such as stationary and pencils.

Startup Costs

Although this is a new business venture, there will be no start-up costs until the business can expand from a Sole Proprietorship to a Limited Liability Company (LLC). The business will continue to be run from the home of the proprietor and her church community center.

Personnel Plan

Personnel Table

FY2014

FY2015

FY2016

Tutor

$3,550

$3,700

$3,800

Total

$3,550

$3,700

$3,800

About the Personnel Plan

E&M Resource Center is currently a one woman show. Ernestine is able to have flexible hours with her school hours; therefore she is able to serve students during the weekdays in the evening and during the day as needed for the undergraduate and graduate students. This business plan is being written to maintain the status quo.

Ernestine enjoys the time she spends tutoring. While she has a limited amount of time to tutor, it is ample for now. There is a strong possibility of training tutors in the future to allow the business to serve more clients, however it is unlikely for now due to income.

Financial Statements

Profit and Loss Statement

FY2014

FY2015

FY2016

Revenue

$10,583

$11,600

$13,900

Direct Cost

$0

$0

$0

Gross Margin

$10,583

$11,600

$13,900

Gross Margin %

100%

100%

100%

Operating Expenses

Salary

$3,550

$3,700

$3,800

Employee Related Expenses

$180

$185

$190

Marketing & Promotion

$30

$30

$30

Office Supplies

$688

$812

$973

Total Operating Expenses

$4,448

$4,727

$4,993

Operating Income

$6,135

$6,873

$8,907

Income Taxes

$1,223

$1,371

$1,777

Total Expenses

$5,671

$6,098

$6,770

Net Profit

$4,912

$5,502

$7,130

Net Profit / Sales

46%

47%

51%

Gross Margin by Year

Net Profit (or Loss) by Year

About the Profit and Loss Statement

The previous charts and tables indicate the projected profit and loss.