Entrepreneurship: Business Plan for an Education Technology Application Company

This document discusses the business plan for an education technology application company, covering topics such as market analysis, operations plan, risk management, sales and marketing strategy, and finance and funding plans.

Entrepreneurship

Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Business details......................................................................................................................2
Location..................................................................................................................................2
Market / Industry analysis......................................................................................................3
Product/Service description....................................................................................................3
USP and Competitor analysis.................................................................................................4
Operations Plan......................................................................................................................4
Risk and Contingency plans...................................................................................................5
Sales and marketing strategy..................................................................................................7
Finance and funding plans......................................................................................................7
Management team – justifying the ability to lead and manage this venture..........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship can be defined as the activity of establishment of business with the
purpose of revenues and profit generation. There are basically four different types of
entrepreneur organisations such as small business, scalable start-ups, large companies and social
entrepreneurs. It is all about transforming the world by solving the big problems by gaining the
skills such as time management and strategic thinking along with the efficiency and residence
with the flow of good communication and networking along with the finance and many more
(Parker, 2018). The following discussion is based on the start-ups business plan which includes
the business details and location along with the market or industry analysis and product or
service description. discussion is also done on the unique selling proposition and competitor
analysis along with the operations plan and risk and contingency plans. Moreover, sales and
marketing strategy is also discussed along with the finance and finding plans with the team
management and conclusion.
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MAIN BODY
Business details
Aim
Aim of the business plan is to provide a good management plan in the domain of
education Technology application company in an effective and efficient manner to gain better
productivity and the implementation in a strategic manner.
Objective
Objective of the business plan is to establish the education Technology application
company which includes the information about location, pestle analysis, SWOT analysis, unique
selling proposition, service description, porter's five forces model, management plan, operations
plan, risk and contingency plans, sales and marketing strategy, finance and funding plans and
team management.
Background
Business details include that the entrepreneur wants to establish an education Technology
application company in order to provide the online education to the students in this covid-19
pandemic era which can prove profitable in this situation. Although it is a startup, therefore it is
decided that there must be good offers and discounts to the students along with competitive
pricing and quality education with servicing. This is to maintain stability in the marketplace
(Kyrö, 2018).
Location
Establishment of education Technology app does not need any physical infrastructure or a
proper location but only needs the virtual location to interact with the customers at initial stage.
At the time of expansion of the business, entrepreneurs will definitely require the location in
which they can set up the office where the management and functioning of the business is
performed along with the operations. Technology advancement is a high priority for educational
technology and therefore not any prior location is required but it is all about the virtual
experience and virtual interaction with the internal and external stakeholders of the company.
Even the marketing strategies of online marketing have greater weightage which is also virtual as
compared to traditional marketing (Eesley and Lee, 2021).
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Market / Industry analysis
PESTLE Analysis
Political factors of education Technology can be unstable and create a threat to the
company because of its strict policies and fluctuation in regulations. The Economic factor of the
education Technology can prove opportunity for the company because it can help in increasing
the GDP and employment. Social factors of education Technology can be an opportunity for the
company because nowadays because of the covid-19 pandemic parents and children are referring
to online education rather than physical education. Technological factor of education Technology
can prove opportunities for the company because of the introduction and advancement of the
technical devices in terms of software and hardware which can support the company in updates
and security along with the innovation. The legal factor of education Technology can prove a
threat for the company because the different types of laws that are required to be followed can
hinder the normal operations of the company. The environmental factor of education Technology
can prove a threat for the company because of the heavy networking usage which can affect the
environment and can harm sustainability (Frederick, O'Connor and Kuratko, 2018).
SWOT Analysis
Strengths of the business plan of education Technology are that they are in a strong
financial position with high customer retention along with the acquisition of competitor and
diversified products. Weaknesses include that they can paste the low return on investment
initially along with the bad reviews and inventory mismanagement along with the less number of
registrations. Opportunities include the increased trend of online education and education
because of the covid-19 pandemic along with the introduction of professional courses and
positive social factors. Threat includes the imitation of the business model and data privacy
along with that tough competitors and economic recession.
Product/Service description
Product is all about the education learning application in which the online education
servicing is provided to the students. Description of the types of services given in the application
are the online courses provided from the lower classes to the higher classes along with the
professional courses and competitive exams along with the government exams preparations.
Some lectures are free and some are paid. Free lectures are for the trial basis and paid are for the
learning plan purchased by the student to pursue further courses. There are also live classes
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services provided by the application as per the demand of the customer along with the special
offers and discounts with each and every purchase (Baker and Welter, 2018).
USP and Competitor analysis
USP
Unique selling proposition of the education Technology application is the student
counselling about their career planning. This feature is rarely in other brands and therefore this is
one of the unique selling proposition of the application. The student counselling is not only for
the career development but also to advise and suggest about the planning of the study and the
daily routine along with the time management and also taught about the gaining of the
transferable skills which are essential for the professionalism and for the personal life as well.
this is a special feature which can be a unique selling proposition of the application and can help
the large number of sales and revenue generation.
Porter’s five forces model
There are five forces given by Porter in order to analyse the industry. Threat of new
entrants can be at a moderate risk to education Technology because of the low capital required
but tough competition available. Bargaining power of suppliers can be at a high risk to education
Technology because the teachers will first prefer the brands to work with but not start-ups.
Bargaining power of customers will be at low risk because there are so many online registrations
by the students for online education they can definitely outreach the new start-ups as well. Threat
of substitutes will be at low risk because if a company provides competitive prices of their
courses and learnings then the students will not switch to other brands because at the time of
pending they are searching for low price online education which must be qualitative.
Competitive rivalry will be at high risk because the competitors of education technology that are
extra marks, byju's, unacademy and many more are having large number of sales and marketing
strategies with good offers and discounts (Venkataraman, 2019).
Operations Plan
Management plan
There are five functions of Management which are necessary for the proper management
plan of the organisation. First is the planning in which the goals and objectives are set and the
procedure is made to follow and implement. Second is organising in which the planning of
operations and the whole functioning is organised as per the needs and requirements of different
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departments. Third is staffing in which the employees are hired with the specialised knowledge
and experience in the domain of education Technology who can manage the whole functioning
of the company from marketing to executive departments. Fourth is directing in which the
guidance is given to the employees on what they have to do as per the task assignment and how
they can perform. Fifth is controlling in which the management and employees are controlled in
terms of their job roles and responsibilities and productivity (Liang, Wang and Lazear, 2018).
Total quality management
This is an operational technique which is important to adopt because it provides the
complete quality management to the customers about the studies and courses they have
registered for. This quality includes the quality of study material and the teachers who have the
good experience in teaching the students in the specific subject and this can provide the perfect
quality management to the students for which they are aspiring for.
Just in time management
This is an operational technique which is essential to adopt because generally in the
education Technology application, there is a delay in services in running of the websites or in the
teaching time zone and therefore it should be managed in order to be quick and fast in delivering
the services to the students so that they don't have to wait any of the services asked by the
application. Moreover, it is important to develop the application in a light manner with the light
coding so that loading of the website could not take much time and the internet as well (Julien,
2018).
Six sigma
This is an operation technique which is significant to adopt because they must be the
continuous improvement in the operations and management of the organization otherwise
expansion and growth of the company cannot be done. Improvement supports the company to
innovate and create new things as per the needs and requirements of the customers to maintain
the long term relationship with the customers along with the loyalty. Therefore, in order to grow
and develop the organization in an effective and efficient manner, it is necessary to adopt six
sigma methodology.
Risk and Contingency plans
Risk Identification
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There is different risk that can be identified in the education Technology application
company. Such as the risk of security and privacy of the website which includes the cybercrime
and data breaches which can result in the huge loss in the organization and it and it is a major
risk. Risk of employee turnover which can result in the loss of skilled teachers and staff. Risk of
competitive market which can result in low sales and revenue generation. Risk of failing of
techniques applied in the management and operations which can result in the obstacles of smooth
functioning and working of the organization.
Risk Quantification
To quantify the risk on the basis of priority then on the priority there is a security and
privacy of the website risk which is required to be resolved on a priority basis. Then it is a risk of
competition in the market on the second priority to be resolved. Then it is a risk of employee
turnover which is required to be resolved on a third priority. Then it is a risk of failing techniques
of operations and Management which is required to be resolved on a fourth priority (Fayolle,
2018).
Risk Response Development
All this risk can be resolved and solutions can be developed such as security and privacy
issues can be resolved by updating the application on a frequent basis with a tight security of
data access control along with the password management and giving training and education to
the employees about the privacy while using the technical devices. Risk of competition in the
market can be resolved by frequent development of innovation and creativity in the services
provided to the customers along with the special offers and discounts with the competitive
pricing. Risk of employee turnover can be resolved by adopting the strategic employee
management which includes the proper training and development not only the professional but
also personal as well along with the performance appraisal and a good pay. Risk of failing
techniques operations and management can be resolved out by adopting the strategic
management techniques in which the decision making process must be done with the help of
brainstorming and employee engagement by following the operational techniques in a systematic
and potential manner effectively and efficiently.
Risk Response Control
All these risk can be evaluated and control by preparing the proper feedback systems
from the customers and improvement areas so that the enhancement can be made in the terms of
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gaining competitive advantage and employee retention techniques along with the strategic
operations and Management with an appropriate security and privacy methods. This can help the
business in achieving good will and image and reputation in the marketplace of the education
Technology application among the stakeholders of the company which includes the employees
and customers along with their suppliers and competitors and investors as well (Fairlie and
Fossen, 2018).
Sales and marketing strategy
Marketing techniques
Education Technology can adopt two types of marketing techniques that are traditional
and online marketing. They both are important to use so that the promotion can be done on a
large scale. For example, marketing with the traditional methods can be done with the help of
newspapers, magazines, radios and television. Marketing with the online methods can be done
with the help of social media, search engine optimisation, Google ads and pay per click (Alvarez
and Barney, 2020).
Sales techniques
Education Technology can adopt the sales strategies such as by building a powerful value
proposition and creating urgency by telling a compelling and memorable story to create
connection with the customers along with the attractive delivery content. Moreover, speaking
about the decision making journey but not about the sales process. Focusing on the target market
by targeting the innovative and creative features of the product to be sold to the customers with
the competitive prices and giving knowledge about offers and discounts and telling them why
referring to this company is good as compared to other brands.
Finance and funding plans
Funding plan
There are different types of funding which can be used by an entrepreneur to start their
education Technology such as crowd funding in which the funds can be raised collectively with
the help of friends and families along with the investors. Loans is another finding type which
includes the small business administration loan, credit cards, short term loans and friends and
family. Venture capital and Angel investors are also the funding sources where entrepreneurs of
education Technology can raise funds to start their application (Wadhwani, Kirsch, Welter and
Jones, 2020).
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Finance plan
Estimation of the cost of educational technology programs ranges from $142 per student
per year to $490 per year including infrastructure, human resources, operations and study
materials. This range depends on the level of quality materials used by the entrepreneur.
Although initially the profit margin will be less but as soon as stability takes place of the
company in the market place, it will start receiving the high profit margin with revenues and
moreover nowadays advancement of Technology is taking a very high pace because of the covid-
19 pandemic. Some start-ups fail because of no uniqueness in that idea and not the quantitative
and qualitative education provided by them. Therefore, the estimation of cost must be clear and
efficient so that effectiveness can be maintained.
Management team – justifying the ability to lead and manage this venture
Technical expert
There is a technical team which includes the manager of the technical department along
with the executives and leaders which handles the whole software and application of the
education Technology with frequent updates and Management of it along with the maintenance
of privacy and security methodology (Olanrewaju, Hossain, Whiteside and Mercieca, 2020).
Human resource expert
There is a human resource team which includes the manager of the human resource
department along with the executives and leaders which handles the hiring and recruitment of the
new employees for the vacancies, they are also responsible for the performance management and
training and development of employees along with the onboarding of new employees.
Finance expert
There is a finance team which includes the manager of the finance department along with
the executives and leaders which handles the cash flow and budgeting of the company along with
the expenses control so that the profit margin can be maintained and extra expenses can be
examined in order to control and to be cost efficient (Kuratko and Morris, 2018).
Operations expert
There is an operations team which includes the manager of the operations department
along with the executive and leaders which handles the total quality management and just in time
management along with the six sigma techniques of the operations so that the better data analysis
can be done with better future considerations and decision making process in the company.
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Sales expert
There is a sales team which includes the manager of the sales department along with the
executive and leaders which handles the planning and the implementation of the sales strategy in
order to gain large number of sales to meet the target to sell the courses maximum per month or
per year by following the strategy planned and the execution of it (Wiklund, Nikolaev, Shir and
Bradley, 2019).
CONCLUSION
It is concluded that entrepreneurship is an important concept to learn and study in order to
apply its knowledge in real world organisations. This is because it supports the person in its
career growth and development. It also enhances the personal skills as well for better
development along with the professionalism. Therefore it is important to analyse the business
details to start the business plan, it is necessary to examine the location strategy for the business,
it is is essential to determine the market and industry analysis, it is significant to gain the
knowledge about product and service description, it is crucial to assess the unique selling
proposition and competitor analysis, it is imperative to study about the operations plan to
conduct in the business, it is required to conduct the investigation about the risk and contingency
plans, it is needed to prepare the sales and marketing strategy in the business plan, it is vital to
plan about the finance and funding and along with the management team in order to justify the
ability to lead and manage the venture. Hence this report covers all such areas in order to better
understand the concept of entrepreneurship.
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REFERENCES
Books and journal
Alvarez, S. and Barney, J.B., 2020. Has the concept of opportunities been fruitful in the field of
entrepreneurship?. Academy of Management Perspectives. 34(3). pp.300-310.
Baker, T. and Welter, F., 2018. Contextual entrepreneurship: An interdisciplinary perspective.
Now.
Eesley, C.E. and Lee, Y.S., 2021. Do university entrepreneurship programs promote
entrepreneurship?. Strategic Management Journal. 42(4). pp.833-861.
Fairlie, R.W. and Fossen, F.M., 2018. Opportunity versus necessity entrepreneurship: Two
components of business creation.
Fayolle, A., 2018. Personal views on the future of entrepreneurship education. In A research
agenda for entrepreneurship education. Edward Elgar Publishing.
Frederick, H., O'Connor, A. and Kuratko, D.F., 2018. Entrepreneurship. Cengage AU.
Julien, P.A. ed., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kuratko, D.F. and Morris, M.H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Kyrö, P., 2018. The conceptual contribution of education to research on entrepreneurship
education. In A research agenda for entrepreneurship education. Edward Elgar Publishing.
Liang, J., Wang, H. and Lazear, E.P., 2018. Demographics and entrepreneurship. Journal of
Political Economy. 126(S1). pp.S140-S196.
Olanrewaju, A.S.T., Hossain, M.A., Whiteside, N. and Mercieca, P., 2020. Social media and
entrepreneurship research: A literature review. International Journal of Information
Management, 50, pp.90-110.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal ideas
for the next twenty-five years of advances. Emerald Publishing Limited.
Wadhwani, R.D., Kirsch, D., Welter, F. and Jones, G.G., 2020. Context, time, and change:
Historical approaches to entrepreneurship research. Strategic Entrepreneurship
Journal. 14(1). pp.3-19.
Wiklund, J., Nikolaev, B., Shir, N. and Bradley, S., 2019. Entrepreneurship and well-being: Past,
present, and future. Journal of Business Venturing. 34(4). pp.579-588.
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