1. SUMMARY OF THE PROJECT
This business plan is designed to substantiate the effectiveness of opening Chinese language courses in the city of Rostov-on-Don. The goal of the project is to satisfy the growing demand of residents of the city and the region for high-quality educational services for learning the Chinese language and profit. All classes will be held under the guidance of the initiator of the project - a teacher with an education in Orientalist translator, work experience in a specialty in a higher educational institution for more than 5 years, HSK level 5 certificate.
Organization of courses will require the implementation of the following steps:
registration of activity as an individual entrepreneur and registration with the tax authority;
developing a training program with lesson plans;
search for an office for rent for classes;
creating groups on social networks, posting ads on the Internet.
Starting investments in the opening of courses will amount to 41, 000 rubles. Estimated time for the preparation phase is 2 months. The payback period from the start of sales is 1 month. The launch of the activity is scheduled for September 2016. Project performance indicators are given in Table. one.
Table 1. Integrated performance indicators
Discount rate (r-year), %
20
Discount rate (r-month), %
1, 53
Payback period (PP), months
one
Discount payback period (DPP), months
one
Net present value (NPV), rub.
199589
Return on Investment (ARR), %
157.41
Internal rate of return (IRR), %
114.15
Profitability Index (PI)
4.87
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
At present, the study of the Chinese language in Russia is a promising area, which is due to both the growth of trade between the two countries and geopolitical reasons. In recent years, China has become one of Russia's most important allies in the foreign policy arena, and since 2010 it has been its largest foreign trade partner. Strengthening ties with this state is most clearly confirmed by the figures. From 2002 to 2014, trade between the two countries increased by more than 10 times (see Figure 1.)
Figure 1. Commodity circulation between Russia and China 2002-2016 *. **
* data for 2016 are presented using the extrapolation method based on data from the first 2 quarters
** according to the Federal Customs Service of Russia
The decrease in volumes that followed after 2014 can be regarded as temporary and not reflecting the general trend. It is explained by a number of objective factors, such as a deterioration in world foreign trade conditions, a slowdown in economic growth in both countries, a drop in prices for raw materials and energy resources (accounting for more than 70% of exports to China), exchange rate fluctuations of the ruble against world currencies and the renminbi in particular. Despite some economic downturn, experts are hoping for further trade growth. According to the Russian Foreign Ministry, an ambitious goal has been achieved between the two countries - to increase trade turnover to $ 200 billion a year by 2020. One of the key partners of China is for the Rostov region. According to the regional government, the share of China in the region’s foreign trade in recent years is at the level of 6.2–9.2%.
Figure 2. The number of tourists from China in Russia in 2000-2015 *
* according to the Federal Tourism Agency and the Federal State Statistics Service
The strengthening of ties between Russia and China can be traced in other directions, for example, in tourism. According to statistics, the interest of Chinese tourists in our country is gradually growing (see. Fig. 2). Currently, more than 1 million Chinese citizens visit our country annually. By the number of tourists who visited Russia in 2015, Chinese tourists are second only to Ukraine, Kazakhstan, Poland and Finland. In turn, China is an attractive tourist destination for Russians. According to the Federal Tourism Agency, in 2015, 1, 244, 000 Russian citizens visited the Celestial Empire. Statements by the Chinese authorities on the course taken to abolish a visa-free regime with Russia are encouraging regarding the prospects for this area.
Given the mutual interest of the two countries in each other, the number of people wishing to learn Chinese is also increasing. According to Deputy Prime Minister Olga Golodets, today in Russia more than 37 thousand people study the Chinese language (the figure was announced in December 2015), and over the past 5 years, the total number learning Chinese has grown by almost 8 thousand people. Among schoolchildren and students, Chinese came out on 5th place in popularity after English, German, French and Spanish. He is studied in schools, universities, institutes and classes of Confucius and in various courses. By 2020, the Ministry of Education plans to increase the number of youth exchanges to 100 thousand people annually. In addition, in 12 regions of Russia, the passing of state exams in the Chinese language in the form of the Unified State Examination and the State Examination Department is actively tested. For graduates of schools, the final certification in Chinese will be introduced no earlier than 2018.
The purpose of this project is to open private courses in Rostov-on-Don to meet the growing demand of residents of the city and the region for learning the Chinese language and profit. All classes will be held under the guidance of the project initiator - a teacher with an education in Oriental translator, more than 5 years of work experience in a specialty in a domestic municipal educational institution, and HSK level 5 certificate. Organization of courses will require the following steps from the project initiator:
registration of activity as an individual entrepreneur and registration with the tax authority;
developing a curriculum with lesson plans;
search for an office for rent for classes;
creating groups on social networks, posting ads on the Internet.
Chinese courses will be a systematic group and individual lessons with people of different ages. The program will be based on the established teaching methodology developed during teaching at one of the higher educational institutions. It will consist of step-by-step lessons aimed at a comprehensive study of the language, including the practice of speaking, grammar, hieroglyphics, reading, translation, listening, etc. Classes are planned to be held both for those wishing to learn the language from scratch, and for those who have already reached a certain level of knowledge and are planning an in-depth study of the language (for more information about services, see paragraph 3 “Description of services”).
It is planned to make a rented office space in the city center a place for classes, which allows for group lessons. For individual lessons, home classes will also be possible.
Investments in the opening of courses will amount to 41, 000 rubles. Start-up cost items are shown in Table. 2 of this business plan. For the implementation of the project, own funds will be used, which are planned to be returned upon the results of the first student enrollment in the first month of work.
Table 2. Investment costs of the project
No.
NAME
AMOUNT, rub.
Equipment
one
Purchase of office equipment and supplies
12000
Intangible assets
2
Registration and registration
5000
3
Curriculum development costs
6000
four
Creation and promotion of groups in social networks
8000
Current assets
five
Current assets
10, 000
Total:
41000
3. DESCRIPTION OF SERVICES
The main specialization will be educational services, namely, conducting Chinese lessons for children and adults (see Table 3). For clients will be available both individual and group classes. The lesson program will focus on a comprehensive study of the language, including the practice of speaking, grammar, hieroglyphics, reading, simultaneous and simultaneous interpretation, listening, etc. Particular attention in the preparation will be given to the requirements of the HSK (Hanyu Shuiping Kaoshi) - a standardized qualification exam in Chinese for non-native speakers. Lessons will also be held in narrow areas (business Chinese, business correspondence, socio-political translation, etc.) and corporate classes.
The price segment of the project is below average. The established prices can be called more attractive in comparison with the offers of the city's language schools (due to the lack of extra charges from the schools themselves) and other tutors (difference in the quality of education). Analysis of market players and competitive advantages are discussed in detail in paragraph 4 “Sales and marketing”.
Table 3. List of services
No. | SERVICE | Description | Cost, rub. |
one | Individual lessons (children 8-14 years old) | 8 lessons per month (2 lessons per week for 60 minutes) | 4800 |
2 | Individual lesson (adults) | 8 lessons per month (2 lessons per week for 60 minutes) | 5200 |
3 | Group classes (children) | 8 lessons per month (2 lessons per week for 60 minutes) | 3600 |
four | Group classes (adults) | 8 lessons per month (2 lessons per week for 60 minutes) | 4000 |
five | Corporate classes | Conducting classes for legal entities | negotiable |
6 | Individual program classes | Individual lessons in narrow areas (business correspondence, etiquette of business communication, etc.) | negotiable |
4. SALES AND MARKETING
Today it can be stated that the number of residents of Rostov and the Rostov region who want to learn Chinese, is increasing from year to year. This conclusion can be made by the number of people wishing to study this language as the main language in the framework of higher education and the increased number of paid courses. According to Yandex.Wordstat, the number of search queries related to the search for Chinese courses is more than 2 thousand in the Rostov region and more than 6 thousand in the Southern Federal District, with at least 400 queries a month coming from the target audience, indicating Rostov-on - Don as a desired place of study (see Appendix 1).
Today in Rostov-on-Don, you can count more than a dozen companies offering Rostovites take Chinese language courses, as well as several dozen tutors of the Chinese language. Despite such a number of proposals, the quality of teaching, to put it mildly, leaves much to be desired, and the market can be described as 80% shadow. Only a small number of institutions have qualified Chinese teachers at their disposal who are able to conduct classes at the proper level. Moreover, trying to win a client, many schools try to pass off the so-called "native speakers" as professionals in their field, even if the latter have completely no experience as a teacher. In most cases, Chinese students of one of the universities in the region who come to the city for an exchange and barely speak Russian are offered as carriers. It is easy to guess that the quality of training in such cases is out of the question. These student teachers, as a rule, are not interested in the success of their students and are more concerned about earning money in a foreign country with minimal effort. This approach is especially sensitive for those clients who want to learn Chinese for any specific purpose, for example, getting a job abroad or finding a job in a domestic company trading with China.
A great difficulty for language schools is also the systematic nature of instruction. The lack of personnel among domestic specialists (only one university graduates Orientalists in the city) forces them to clutch at the few native speakers that are available. A significant drawback of this category of teachers is that their life is often built on permanent working trips from Russia to China, and the course is regarded by them as temporary work. As a result of this, students' knowledge is characterized by fragmentaryness and the need to constantly return to previously passed material. Some institutions try to solve this problem by conducting virtual lessons using Skype, however, this approach to the Chinese language is ineffective for some reason (for example, the inability to conduct written classes adequately).
If we talk about prices for studying the Chinese language in Rostov, then on average the price for group classes in language schools in 2016 is 600 rubles, individual - 850 rubles. Classes with a tutor will cost about 550-600 rubles. In Tab. 4 presents prices for services offered by the city's language schools.
Tab. 4. The cost of teaching Chinese in language schools in Rostov-on-Don
Language school
price, rub.
per month
(for 1 lesson)
Language School 1
Group lessons - 3500 (8 lessons of 60 minutes each)
(437.5)
Language School 2
Group lessons - 3800 (8 lessons of 60 minutes each)
(475)
Individual lessons - 5400 (8 lessons of 60 minutes each)
(675)
Language School 3
Group lessons - 8400 (8 lessons of 60 minutes each)
(1050)
Language School 4
Group lessons - up to 4000 (8 lessons of 60 minutes each)
(up to 500)
Individual sessions -
from 5200
(from 650)
Language School 5
Group lessons - 4000 (8 lessons of 45 minutes each)
(500)
Language School 6
Group lessons - 6000 (8 lessons of 60 minutes each)
(750)
Language School 7
Group lessons - 3000 (8 lessons of 80 minutes each - subscription from 1 year)
(375)
Language School 8
Group lessons - from 4000 (8 lessons of 60 min each)
(from 500)
Language School 9
Group lessons - from 6400 (8 lessons of 60 min each)
(from 800)
The competitive advantages that are planned to be used in the work include:
availability of the necessary education (regional translator) and HSK level 5 certificates.
experience in teaching Chinese for more than 5 years at a university;
well-developed communication skills, the ability to find an approach to a person;
the availability of proven teaching methods;
the ability to work in large groups of more than 20 people (competitors do not undertake groups of more than 5 people);
availability of tests to determine knowledge levels;
systematic work on the job for business trips and other work, the possibility of recruiting students for a long time, interest in achieving results;
the presence of specific labor results (students who left to study / work in China, examples of successful passing the HSK exam at various levels, etc.)
reasonable prices for training.
To search for clients, we will use both our own connections, which formed during the teaching at the university, and additional funds. So, for starters, it is planned to create and promote groups in popular social networks (Vkontakte, Faceebook, Instagram), and in the future, with an increase in the number of customers, create your own website, since the Internet is the main channel for obtaining information about Chinese courses. Also, ads will be placed on free electronic platforms, business cards will be distributed, etc.
5. PRODUCTION PLAN
For the first six months of work, it is planned to recruit at least 1 group of adults and 1 group of children of 5 people each, as well as 3 people for individual lessons. Revenues at this load, taking into account the established prices, will amount to more than 53 thousand rubles, net profit, taking into account rental costs, consumables, transportation costs and tax deductions (6% of revenue) will be at least 41 thousand rubles.
If individual lessons will be held mainly at home, then for group lessons an hourly rental of a furnished office area of 20 square meters is required. meters. A suitable option in the city center is already selected. The rental price per hour is 400 rubles. In the future, with an increase in the number of customers, monthly office rent will be used.
To conduct classes, you will need to purchase some equipment, including an MFP (printer, scanner, copier) worth 6, 000 rubles, an audio recorder for listening lessons (2, 500 rubles), and some consumables (markers, paper, etc.).
6. ORGANIZATIONAL PLAN
Educational activity will be fully legalized, for which purpose the certificate of the IP on OKVED 18.08.2019 “Other activities in additional professional education that are not included in other groups” will be obtained. From a formal point of view, this type of business will represent individual labor teaching or tutoring, which, in accordance with the Law of the Russian Federation “On Education”, is not subject to licensing.
The opening of the courses will require a preparation stage for a period of 2 months, including: registration of activity as an individual entrepreneur and registration with the tax authority, development of a training program with lesson plans (it is required to systematize and bring up the accumulated teaching experience), create groups in social networks and conduct their promotion for the organization of the first set, place advertisements on the beginning of the courses. The start of activities is scheduled for early September 2016. This choice is explained by the fact that the peak of search queries to search for Chinese courses falls on July-October: here, as in other areas of educational activity, there is a strong link to the beginning of the school year.
7. FINANCIAL PLAN
Starting investments in opening Chinese language courses will amount to 41, 000 rubles. Start-up cost items are shown in Table. 2 business plans. Current expenses will include rent, transportation costs, purchase of consumables. Appendix 2 presents financial calculations made for a three-year perspective under load:
1-6 months of work - 2 groups (adults and children of 5 people each), 3 students
7-12 months of work - 2 groups (adults and children of 5 people each), 5 students
13-18 months of work - 3 groups (adults, 10 people, and children, 5 people), 5 students
19-36 month of work - 3 groups (adults, 10 people, and children, 5 people), 7 students
If there are 3 groups, the monthly rental of the office is feasible (rent - 8, 000 rubles).
8. EVALUATION OF EFFICIENCY
The project can be called effective, which is confirmed by the calculations and performance indicators given in Table. 1. Investments in the opening of courses and production costs are minimal, in connection with which the project initiator has the right to count on the return on investment according to the results of the first month. So, the profitability ratio exceeds 157%. Net present value (NPV) is positive, profitability index (PI) is greater than 1, internal rate of return (IRR) is significantly higher than the established discount rate.
9. RISKS AND WARRANTIES
Риски по организации курсов минимальны: отсутствуют вложения в недвижимость, нет необходимости в закупке дорогостоящего оборудования, найме персонала, невелики текущие затраты. Основным ресурсом и реализуемой услугой являются знания инициатора проекта, которые нуждаются лишь в умении их продавать. Возможные риски представлены в Табл. five.
Таблица 5. Возможные риски и способы их предотвращения или их последствий
Risk factor | Probability of occurrence | Severity of consequences | activity |
Недостаточный набор учеников | average | average | Привлечение клиентов комплексными методами, создание групп в социальных сетях, сайта-визитки; печатные и электронные объявления, использование собственных связей |
Рост числа конкурентов | low | low | Позиционирование себя как преподавателя с большим опытом и необходимой квалификацией; работа на результат, создание позитивного образа с первых дней работы; более выгодная цена, использование всех конкурентных преимуществ |
Снижение выручки в несезон | average | low | Снижение расценок в несезон, предоставление скидок на обучение летом, сезонные работы в смежных областях (перевод), поиск корпоративных клиентов |
Rent increase | average | low | Выбор наиболее оптимального варианта по цене, смена помещения |
Претензии со стороны проверяющих органов, налоговой | low | low | Деятельность в легальном поле, регистрация в качестве ИП, своевременная уплата налогов |
10. Applications
Mikhail Semynin
(c) www.clogicsecure.com - a portal to small business business plans and guides
ANNEX 1
Количество поисковых запросов, связанных с изучением китайского языка по данным Яндекс.Wordstat
No.
Request
ЮФО
Ростовская область
Rostov-on-Don
one
курсы китайского (китайский курс)
953
259
203
2
курсы китайского языка (китайский язык курс)
525
124
105
3
Учить китайский
505
176
125
four
Китайский урок
491
185
129
five
китайский язык начинающий
400
108
92
6
Китайский изучение
390
129
94
7
учить китайский язык
360
114
77
eight
китайский язык изучение
308
100
79
9
Китайский школа
296
90
64
ten
Китайский обучение (обучение китайскому)
258
102
67
eleven
Китайский язык урок (уроки китайского языка)
181
84
34
12
китайский язык обучение
170
70
36
13
изучать китайский
119
48
42
14
Китайский репетитор (репетитор по китайскому)
108
41
29th
15
изучать китайский язык (изучаем китайский язык)
86
35
34
sixteen
китайский язык репетитор (репетитор по китайскому языку)
83
33
21
17
школа китайского языка
74
nineteen
15
18
Китайский учитель
73
32
27
nineteen
Вузы с китайским языком
35
ten
eight
20
Учитель китайского языка
21
9
eight
21
Изучаем китайский язык с нуля
18
3
3
22
школа с изучением китайского языка
17
eight
7
23
Курс обучения китайскому
9
2
2
24
репетитор китайского для детей
eight
four
3
25
В каких вузах изучают китайский язык
five
2
2
26
обучение китайскому языку в школе
five
one
one
27
хочу изучать китайский
3
one
one
28
Где изучить китайский язык
3
0
0
29th
Школа китайского языка для детей
2
one
one
thirty
Где можно изучать китайский язык
2
0
0
ВСЕГО:
5508
1790
130
ЗАПРОСЫ С ПРИВЯЗКОЙ К МЕСТНОСТИ
No.
Request
Количество запросов в месяц
one
Китайский язык в ростове
81
2
Китайский язык в ростове на дону
54
3
курсы китайского ростов
45
four
Китайский изучение ростов
38
five
курсы китайского ростов на дону
27
6
Обучение китайскому ростов
nineteen
7
Обучение китайскому языку ростов
18
eight
курсы китайского языка ростов
18
9
курсы китайского языка в ростове на дону
sixteen
ten
Изучать китайский ростов
sixteen
eleven
Репетитор китайского ростов
14
12
Изучение китайского языка в ростове на дону
eleven
13
Репетитор китайский язык ростов
ten
14
Уроки китайского ростов
9
15
Школа китайского ростов
eight
sixteen
Учить китайский ростов
6
17
Школа с изучением китайского языка
3
18
Уроки китайского ростов
3
nineteen
Учить китайский язык ростов
2
20
Где изучать китайский ростов
2
ВСЕГО:
400
ПРИЛОЖЕНИЕ 2
Three-year production plan and key financial indicators
