9. Management Functions:
Planning
First Year Second Year
• 15-25 tutors in the next
two years
• Strategic alliance with
Polyglot Translations
• Make over $400,000 in
non-VE sales
• Reach break-even by
December 2014
• Positive cash flow for FY
• Great cooperative
relationship with Liberty
Partnerships Program
11. Cash Budget (Condensed)
Actual
As of 12/31/14
• Starting Balance: $0.00
• Total Inflows: $967,359.00
• Total Outflows: $343,583.64
• Cash Balance: $623,775.36
Projected
As of 4/30/15
• Starting Balance: $0.00
• Total Inflows: $952,253
• Total Outflows: $600,898
• Cash Balance: $351,355
12. Actual Totals a/o
December 31, 2014
Projected Totals
a/o April 30, 2015
Sales revenues
Trade fair revenues 198,278 88,125
Contractual sales to non-VE entities 407,000 941,844
Other than trade fair revenues 57,219 26,250
Total sales revenues 662,497 1,056,219
Gross profit 662,497 1,056,219
Operating expenses
Salaries 173,316 474,833
Rent 9,374 18,747
Depreciation 12,250
Matching Medicare & F.I.C.A. 20,757 1,200
Advertising 2,868
Promotion 35,418 2,476
Furniture and Equipment 57,094 41,514
Pension or 401(k) 3,680
Interest 22,400
Supplies 8,513
Utilities 1,840 22,944
Other $ -
Total operating expenses 297,798 611,425
Net income before taxes 364,699 444,794
Facts
Comparison of Projected Income Statement with Actual Income Statement
13. Actual: December 31 2014 Projected: April 30 2015
623,775.36$ 351,354.45$
57,946.41$ 62,584.01$
681,721.77$ 413,938.46$
-$ 35,099.20$
57,093.70$ 9,359.37$
-$ 22,399.64$
-$ (13,371.64)$
57,093.70$ 53,486.57$
738,815.47$ 467,425.03$
3,391.67$
4,205.67$
10,236.68$
983.58$
2,684.17$
-$ 5,189.26$
16,887.34$ 7,000.00$
16,887.34$ 33,691.03$
360,000.00$ 360,000.00$
361,928.13$ 73,734.00$
Total owner's Equity 721,928.13$ 433,734.00$
738,815.47$ 467,425.03$
Fixed Assets†
Liabilities
Medicare Payable
FWT Payable
FICA Payable
Owner's Equity
Matching Medicare & FICA
Outstanding Stock
Retained earnings
Total Liabilities and Owner's Equity
SWT Payable
Projected Balance Sheet
Total Liablilties
F.A.C.T.S.
Sales Tax Payable
Assets
Total Assets
Cash
Furniture
Computers
Accumulated Depreciation
Machinery & Equipment
Current Assets
401(k) Payable
Total Current Assets
Accounts Receivable
Total Fixed Assets
15. Real Tutoring Industry
• Top 16 industries worldwide
• 7% growth rate last year
• Surpass $102.8B by 2018
• Desire of parents fueling of growth
16. Virtual Industry
• 45 VE firms in NYC
• Over 500 in US
• 5000 overall
• 20-25 students, earn $10-50 virtually
• E-commerce / trade fairs
17. Competitive Analysis
• No direct competitors
• Indirect competition consists of:
• Free online resources and computer
software
• Build Your Future=only indirect
competition
• Trade fair booths with raffles and
giveaways
18. SWOT Analysis
Internal Strengths
• No start-up loan
• Only indirect competition=
Build Your Future
• Alliance with Liberty
Partnerships
Internal Weaknesses
• Brand new firm
• Limited work hours per
weekday
External Opportunities
• 3 trade fairs to increase
exposure and profits
• New alliance with Polyglot
Translations
External Threats
• Free online tutorials
• Tutoring availability may not
align with needs of clients
19. Risks and Mitigations
Risks
• Not reaching our
break-even point of
$614,265 this fiscal
year
• Customer
dissatisfaction
Mitigations
• Attend 3 trade fairs to
maximize revenue
• Customer surveys
20. Product
Liberty Partnerships
Tutoring Program
• Real tutoring
program at New
Dorp High School
• They rely upon us
for referrals and
funding
• F.A.C.T.S is paid
based upon the
amount of referrals
provided
Online Peer
Tutoring Program
• F.A.C.T.S tutors
from the US Sales
department via
Skype to other VE
firms that request
our service
Online Tutorials
• We have a
question box in
the “Contact”
Category of our
website that
forwards the
questions directly
to our firm’s e-
mail address
• Online videos
21. Pricing
• One indirect competitor
Competitive Pricing
• Attract buyer to our service
not to the competition
22. Placement
• 48% of sales from Non-VE sales (New
Dorp High School)
• 23% from e-commerce and phone sales
• 29% from Trade Fairs
Non-VE
Sales
48%
Commercial
Sales
23%
Trade Fairs
29%
23. Positioning
• Tutor by your side
• We act as the client’s guide, not just as his
or her tutor
• Help students attend the best college
possible based on their academic ability
24. Promotion
• Appeal to iGeneration
• Brains process info more swiftly shorter
attention spans
• Instagram, Facebook, Twitter
• Campaigns on these social media sites
• 3 Trade Fairs
• E-mails/phone calls
26. Remember…
• Best investment choice
• Strong financial position
• Excellent liquidity
• Well-trained management team
• Dedicated staff and tutors
• Strategic alliance with Polyglot Translations
• Great cooperative relationship with Liberty
Partnerships Program
