Business plan

Name
Australian Students Universal Service Group

Executive summary
Our core services are tutoring, rental and luggage maintenance and second-
hand goods online trading (primarily textbooks). All services provided are
exactly and precisely targeted at students (mainly tertiary students)
1Description of business
Start up with tutoring, rental and luggage maintenance and second-hand
goods online trading and gradually diverse into universal service
conglomerate.
2Market
Markets are primarily students (especially international students). Recently
Australia has seen unprecedented level of education exports from overseas
as well as ever increasing mobility and flexibility with domestic students’
tertiary education. State Government of South Australia aims to double its
overseas students share in 2013 in strategic plan. University of Adelaide has
seen its international students raised from109 in 2002 t o1750 in 2006. The
number shows clear sign to skyrocket into foreseeable future.
Resource: http://www.adelaide.edu.au/news/news14021.html
3Management team and structure of business
Start with sole trader structure and gradually move into company structure.
Management team is divided into three sections according to our core
service sections: tutoring, rental and luggage maintenance and second-hand
goods trading initially. To pilot start from Adelaide University city campus
and strategically move across all university campus as well as other
educational institutions is our current tactic. Importantly, our business will
try to acquire own property resources from current financial year to stabilize
supply and reduce tax payment combined with managed funds. (Noticeably,
foreigners’ purchase of residential property in Australia are only and strictly
restricted under FIRB with conditions attached).
Resources: http://www.firb.gov.au/content/application_form.asp?NavID=46
4Financial plan of three years

Year 1 Year 2 Year 3

Income Statement
Revenue 24860 31000 39680
Revenue annual growth 24.7% 28% 28%
Net profit margin 2170 9160 17840
Balance Sheet
Total assets 290000 292170 301330
Total liabilities 226000 223267 220293
Net equity 64000 69443 81037
Cash Flow Statement
Cash on hand 2000 3000 4000

Resource: http://www.home-loans.com.au/calculators/principal-interest.html
5Sources of capital
Summary of Capital Requirements
Summarize in the following format:

Uses of Fund Amount

Purchase of building $ 270000
Equity requirement $ 54000

Sources of Fund Amount

Personal investment $ 14000
Angel investors $ POA
Parents $ 40000
Total Sources $ 54000

Additional fund needed $ POA

Specific description of business

1Tutoring
Through broad network to find individuals with HD for relevant subjects to
tute peer students. Hourly charge of $5 is evenly split between tutors and
students. Swot vac revision is also available.

Tutors
Through personal network as well as advertising through email and
multimedia approaches.
Customers
General but mainly tertiary students with difficulty in certain subjects are
targeted. International students are particularly aimed given language
barriers and cognitive obstacles.
Advantages and disadvantages
Marketing and resources is the key to success in this field as well as good
reputation. Establishment for reliability and demonstration of honesty locks
in continuous tutors and students via massive marketing.
Timeline for commencement and short term plan
End of 2008
Targeted tutors number: 10
Covered areas: High school (Math/ Science /English/Commerce)
University (Commerce/Math/Engineering)
Available languages: English/Mandarin/Cantonese/ Vietnamese/Indian
African
Current tutors number: 5
Commencement time: now
2Rental and luggage maintenance
Through internal and external sources to acquire potential property portfolio
and widely advertise to university students and other young professionals is
the key business process. Luggage maintenance is customer- tailored for
those international students going back home during holidays to save them
from paying premium holding fees.

Suppliers
Internal: Own property portfolio (1 through FIRB as residential in 2009 and
more through aunt in Melbourne)
External: Anas’ property trust and other websites plus advertiser.
Customers
Mainly international students at the lower end as well as domestic students
in need of accommodation
Advantages and disadvantages
Multilanguage approaches ensure the maximum hold of international
students combined with lowest possible rent through low overhead and
acquisition of low-end property. Access to campus network and word of
mouth advertising also significantly attribute to our competitiveness.
However, lack of reputation and recognition is still worrisome in start-up
phase as our competitors have better existing market share and reputation.
Timeline for commencement and short term plan
End of 2008
FIRB application finished with start-up capital ready
First property is chosen through shortlisted available properties with high PE
ratio (>5.5%) and individual value under $300000(restricted by FIRB)
Actively look for strategic partner: Anas’ property trust /Remax property
agency/Domain property agency/Knight Frank property agency
End of 2009
More properties are acquired under aunt’s name or through forming property
trust with cousin or aunt with targeted value less than $250000
Start-up capital are acquired through parents, stock market cash-out and
potential investors (No equity compensation available)
Current stage
Current cash on hand: $14000
Cash available from stock market: $50000
Fund from parents annually: $40000
Funds from other sources: Uncertain without marketing campaigns carried
out so far
Equity needed end of 2008: $64000 ($54000 in property equity and $10000
for sundry expense)

3Secondhand goods trading

The rationale behind running a uni second-hand E-store is born with
competitors’ (Such as cash converter) relatively large gap between purchase
and sale price (Well above of 100% for cashconverter). While Ebay’s remote
and universal strategy is its weakness in the sense of efficiently and cheaply
delivering goods to a group in certain geographical area in need. Second-
hand textbooks and relevant materials are especially ideal for our business to
trade given the proximity to campus network and agility to liaise buyers and
sellers.

Suppliers
All university advertisements are collected and then categorized under E-
store. With tiny profit margin ($3 to $5 depends on condition per item)
added only to items being ordered our profit could be maximised through
low to almost-none overhead and large number of transactions.
Customers
All university students in need of textbooks are targeted. Reasons of buying
used textbooks and price comparison s are posted to convince their purchase
on the website.
Advantages and disadvantages
Complete information dominance and close to targeted group are apparent
advantages in this aspect. However, a low threshold for competitors’
entrance and relatively small space for potential growth are also great
concern for us.
Timeline
Commence date: now
E-store with unlimited number of items: end of 2008
Platform of all used items: end of 2008

4Market analysis
Nationality 2006 2007 Growth on 2006 Share of all nationalities

China 90,048 107,071 18.9% 23.5%

India 38,804 63,604 63.9% 14%

Republic of Korea 31,142 34,674 11.3% 7.6%

Thailand 17,865 19,987 11.9% 4.4%

Malaysia 19,118 19,874 4% 4.4%

Other 185,503 209,975 13.2% 46.1%

All nationalities 382,480 455,185 19% 100%

The most significant growth in enrolments in 2007 came from outside the top 10 markets, with

Nepal increasing by 241.2%, North Africa and the Middle East by 42.7% and Vietnam by 44.1%.

New South Wales and Victoria attract by far the greatest numbers of international students. New
South Wales alone accounts for just over 40% of all international students in Australia; Victoria has
around 29%; Queensland 15%; Western Australia 7.8%; South Australia 5.0%; the Australian
Capital Territory around 1.5%; Tasmania 1%; and the Northern Territory 0.1%.

Resources:
http://www.studiesinaustralia.com/why_study_in_australia/international_stu
dents_in_australia
According to estimation above, South Australia should have approximately
23000 international students in 2007 enrolled solely of which about 1/3 are
tertiary education or above. The total number enrolled in university of
Adelaide should be around half due to its reputation and prestige. Thus,
roughly around 3000 international students should have enrolled in 2007.
The total number (including students enrolled before 2006) in 2006 is
reported to be 4500, which is consistent with my estimation.
Adelaide campus in 2009
1Textbooks sale
Est No of total students: 20000
Number of textbooks needed: 80000
Number of second-hand books needed: 30000
Profit per textbook: $4
Total market value: $120000
Est market share: <1%
Revenue margin: $500
Revenue per semester: $250
2Rental
Number of internal properties in 2009: 1
Available rooms: 3
Weekly rent: $330
Revenue in 2009 only: $17160
Est Number of students undertaking luggage maintenance: 10
Charge per person: $200
Revenue: $2000
Total revenue: $19160
3Tutoring
Number of tutors: 10
Number of hours per tutor per week: 2
Number of hours weekly: 20
Charge per hour: $5
Total revenue per week: $100
Total revenue per year: $5200
4Financial forecast in 2009
Revenue in total: $24860
Website maintenance: $200
Mortgage payment: $21840
Rental of garage: $450
Others: $200
Total expense: $22690
Total profit: $2170

5Stategic plan (5 years or beyond)

1Tutoring
Increase in both number and quality of tutors is mapped out within next five
years. Afterwards a professional part-time school is established with broad
network of tutors and students offering lessons more than academic content.
Est number of tutors in 2009: 10
2010: 20
2011: 40
2 Rental and luggage maintenance
Increasing number of properties on the lower end with high rent yield in our
portfolio. Tactical partnering up with some property agencies also ranks high
in our current priority list.
Number of property in 2009: 1(FIRB as residential)
2010: 2 (Another one under aunt name)
2011: 2(Depends on circumstances)
Tactical partner: Anas’ property trust/Cousin’s investment properties in
Adelaide
3E-store selling
Both vertical and horizontal expansion is facilitated via purchase of large
website and massive amount of advertising emphasizing textbooks but not
limited. Gradually cut single item profit margin level and boost total profit
via economies of scale. Strong reputation and unique differentiation is
needed to defend competitors like Ebay and any retail and online stores.
Est of transactions in 2009: 100
2010: 200
2011:400
4Long term plan
Plan close to or above five years are targeted towards directions below:
1Partner up: Offer all resources (VC/partners/network/advice/workshop) to
young entrepreneurs
2 Legal consultations: All relevant legal consultation linked to international
students
3 Property trust: Property trust itself could be spined off as our flagship
business attracting both domestic and international investors.
4Career consultation and internship program: Professional development on a
customer-to-customer base. Possible further interview with alumni and
professionals in relevant fields are provided. Possible direction also includes
employment agency liaising companies and uni students.
5Social network (Australian young entrepreneurs/ professionals): Non-profit
organisations aim to spread reputation and build up network domestically
and internationally.