Restructuring a school

Business Plan Synopsis

Content

Background
History
Problem
Objective

Methodology

Financial Analysis

Why restructure?

Short and medium term goals

Implementation plan

History - the School

the School was borne out of the passion to fill the gap in the inequitable
access to quality education in Nigeria by providing affordable yet quality
education to children from poor homes.

Founded 8th February 2006 as a crche and Kindergarten in Mushin Lagos

with 3 pupils in the living room of the Proprietress mother.

By September 2007, the school had grown from using the living room to a
9-room one-story building in Cardoso street Mushin and extended its
admission to primary school pupils.

While continuing operation in the 9-room school facility, the school grew
again and leased a 2-storey building at Onanuga street in Mushin in 2009.

Presently, the school has grown from 3 pupils in 2006 to over 250 pupils
and operates from 2 locations Onanuga and Olowo streets in Mushin
local government area of Lagos State.

The Problem

Declining growth and cash flow challenges

In xxx 201x, the school relocated due to unreasonable financial demands

from the land lord. The former school building was a bigger, nicer facility
in a relatively high brow area of Mushin when compared to the current
location which is close to the popular Ojuwoye market. This move
negatively impacted student attendance. In addition the profile of parents
also changed from middle income to lower class and as such the school
has been experiencing late or non payment of school fees which as
resulted in cashflow crunches in meeting its working capital needs.

Fierce competition

There are over xxx schools within the environs of the school, from high
brow schools charging school fees of N200,000 per term to budget schools
charging N50 per day. the school faces stiff competition as new

schools are springing up every day.

Objective
The objective of the project is to develop and implement a plan that
would:

Introduce quick wins in the short term to address the current

challenges in order to improve the cash flows, market share and
profitability of the Schools

Develop a medium to long term strategy to create a distinctive

competitive advantage for the through establishment of governance
systems, processes and formal structures

To transform the brand so as to attract more upwardly mobile clientele

from middle class families

Methodology
The research would be primarily conducted through
observation of the pupils, staff and parents of the
schools
Performing a current situation assessment
Identifying the gaps in the current situation
Developing vision of where the school wants to be
Developing a business plan to address the gaps and
support that vision
Developing phased implementation plan
Develop metrics for measuring performance

Financial Analysis
Revenue
Clients are charged
Client pays through
Expenses
Cost of Power
Logistics costs
Labour costs
Administrative costs phone calls etc.
Materials such as stationery
Profitability

Financial Analysis
Financial analysis of the Schools
Revenue per term
Classes

Number of
students

Rate

Creche

Amount
9000

Nursery 1- prep

13300

Basic 1 -2

14600

Basic 3-6

16000

Total

256

13225

3000/ month

3,385,600.00

Expenses

Net profit or loss

cash flow
Fees received
Expenses
Cash in/outflow

Month 1

Month 2

comments

Month 3

Why Restructure?
Improve corporate governance
Financial receivables management
Institutionalization of processes

Short, Medium and Long term

Goals and Objectives
Short /Medium term objectives:
the School aims to provide enhanced quality of education in
the Mushin area.

Long term objectives:

To establish another branch of the School in an upwardly
mobile part of Lagos (Ilupeju) to compete with the other
middle class priced schools. Some of the revenue from this
school would help to cover for any financial insufficiency of
the current branch at Mushin.

Implementation plan
Short term

Medium term

Long term

Duration- Six months

Duration- One three years

Perform current situation

analysis

Develop a medium to long term business

plan

Perform competitor
analysis

Develop implementation plan

Identify the gaps in

existing model
Develop quick wins
Commence stakeholder
engagement on new
implementation of quick
wins
Measure performance
against set targets

Develop performance measurement

metrics