ExcelHub: Business Plan for Technology College in Somalia - Analysis

This business plan outlines the establishment of ExcelHub, a technology-focused college, in Somalia. It begins with a background on Somalia's education challenges and presents the rationale for the business idea, including market opportunities and competitive analysis. The plan details the college's objectives, ownership structure, and a PESTEL analysis to assess the political, economic, social, technological, environmental, and legal factors. It emphasizes the importance of life skills and employment opportunities for students. The plan also includes a five-year budget, capital expenditure, and operational, tactical, and strategic decisions. The college aims to offer quality education and collaboration with international universities to provide certification programs. Financial projections include sales, expenses, and net balances, demonstrating the viability of the business idea. The plan highlights the use of online classrooms and the importance of technological environment for the business. The budget includes costs for laptops, furniture, and power generators. The goal is to increase the knowledge base of students and offer them relevant designation in the business firms.

BUSINESS PLAN FOR EXCELHUB

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background of nations.....................................................................................................................1
Afghanistan......................................................................................................................................1
Somalia............................................................................................................................................1
Liberia..............................................................................................................................................1
Reasons for working on business idea.............................................................................................2
Innovative way to meet needs..........................................................................................................2
Key competitors...............................................................................................................................2
Four objectives of company.............................................................................................................3
Ownership structure and suitability.................................................................................................3
PESTEL analysis.............................................................................................................................3
Gaining of life skills and employment.............................................................................................4
Budget for five years.......................................................................................................................5
Operational, tactical and strategic decisions....................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Education sector is one of domain which is growing at fast rate across globe. In current
report business plan is prepared and under this opening of technology related collage is
proposed. Business idea is analyzed from different sides in respect to business enironment
factors and strategic decisions that need to be made in business. At end of the report, budget of
five years is prepared and on that basis viability of business idea is measured. In this way, entire
business plan is prepared.
Background of nations
Somalia
Somalia is considered as one of the nation that face attacks and terrorism for almost two
decades. Less then 60% population of the nation is educated and due to this reason there is huge
population that remain uneducated and contribute nothing to nation economy. Codition in
Somalia is critical as parents find it difficult to pay for education of their childrens. However,
government open its own schools. There are less number of girls that are getting education in the
nation (Education in Somalia, 2017). Society is supporting boys in respect to education and does
not allow girls to go to schools. Moreover, there are security issues in respect to women in the
nation. Somalia is the nation in the world that is heavily affected by terrorism. For almost
three decades terrorist activities consistently going on in mentioned nation among terrorist
groups and army of Somalia. This happened because there was dictator rule in Somalia before
1991. After 1992 rebeal groups were created against dictator and it was forced to leave nation.
Thereafter these terrorist groups fight with each other for power and this lead to losse of life of
lakhs of people in Somalia. This have severe impact on the nation education system. Literacy
rate is already very low in Somalia and due to presence of less number of schools large number
of childrens failed to gain education (Harmer, Stoddard and DiDomenico, 2011). As per facts
education percentage is about 60% in the mentioned nation. It can be said that condition in
mentioned nation is very critical and there is strong need to improve education system of
mentioned nation.
Civial war is going on consistently in Somalia and this to great extent affected mentioned
nation. It can be observed that in the mentioned nation civil war takes place from 1991 to till date
consistently. During this time period at large scale number of people died and this negatively
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affect education system of mentioned nation. Government of Somalia need to take stiff action to
eliminate terrorisim from its soil so that peaceful environment can be created in the nation.
Due to less education of people economy of Somalia is heavily affected as it can be
observed that if people are less educated then can not run country in proper manner. Due to lack
of technical know how people often failed to discharge their responsibuilities perfectly. Hence,
due to less education economy of mentioned nation badly affected. Skill shortage is another big
problem for Somalia because people are not highly educated and due to this reason they does not
have required skills. Hence, human resources failed to contribute to economy up to required
extent. Skill shortage have negative impact on nation as it is growing at very low pace. Thus,
government of Somalia need to focus on education and skill development of workforce.
Reasons for working on business idea
There are varied reasons for working on education system of Somalia. There are ample
opportunities that are in mentioned country and if same will be explored in proper manner then
in that case huge profit can be made in the business. There are already less number of education
institutes in these nations that give education in technical cources (Education, 2017). Hence, by
exploring this opportunity command can be made on unexplored market. Business idea is to
open engeniering and analytics college in three nations. As it is well known fact that there are
few colleges of such kind in these nations. Thus, at imitial stage good number of students can be
attracted for education in college and in first year business can be bring in profit.
Innovative way to meet needs
College main marketing will be done in basis of quality of education that will be
imparted to students. As part of innovative strategy ExcelHub college will enter in to
collaboration with international Universities to provide education on technical topics to students.
In collaboration with these universities certification program will be organized time to time so
that students can get best education and high level of knowledge. This will make ExcelHub
different from its competitors and will help it in increasing number of students at fast pace in its
business. Through videos different concepts will be taught to students which will help them in
understanding it in proper manner.
Apart from engeniering cources certification program for analytics will be conducted
separately as there is huge demand in the market. Firms wants to hire people but they are not
getting candidates with relevant skill set. Hence, by imparting education in analytics placement
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chances of students will also increased. This will create good image of educational institute
among people.
Key competitors Jammacada Kismaayo University: It is private University that is located in small town
Kismayo and is offering high level of education to students. Thus, it is considered as
major competitor. Dar Al-ulum University: It is one of well known university in Somalia as it is offering
best education to students under varied disciplines. Hence, due to this reason it is also
considered as major competitor of business firm.
Four objectives of company
In respect to ExcelHub four objectives are given below.
1) Background of the country
2)Budgeting for five years including new building which has got sports halls.
3) Number of student in college is 300-500 per annum intake.
4)How young people will gain life skills and employment.
Ownership structure and suitability
Busines will be operated by sole trader and under this there will be single entity that will
look after implementation of project and operation of business. Through online mode of
classroom in three states of Somalia education will be provided to students. There will be small
three collages in the relevant states. Few specialist teachers will be hired for college and in case
of most of cources online lectures will be given to students by doing so cost of project will be
controlled. This business model will be suitable because in current time period in these nations
no one is imparting online education. By giving education online to students different image of
educational institute will be created among people.
PESTEL analysis
PESTEL analysis stands for political, economic, social, political, environment and legal
environment. All these factors need to be consdiered while opening business. These factors are
explained below. Political environment: It cover ruling government that strategy that it is following to
promote education in the nation. under this, education policies of relevant nations can be
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evaluated and best place for investment can be identified. In Somalia governments are
fully focused on promoting education in the nation. They are making changes in their
education policy and due to this reason it is expected that it is bst time to make
investment in the relevant nations. Economic environment: Economic environment completely is not in favour of business
firm because people income level in these nations is very low and due to this reason they
are not able to heavy expenditure on their students education. Hence, on this front there is
big threat to firm (Lambert and et.al., 2011). However, in order to deal with this situation
online mode of class is selected so that less employee cost maintained in the business and
cources can be offered at low price to students. In this way threat created by economic
environment will remain in control. Social environment: Social factor have impact on education sector as it can be observed
that in Somalia there is less percentage of woemen education. In order to handle such
kind of situation awareness programs will be conducted so that more and more girls can
be promoted to take education from college. Technological environment: Technology environment will positively affect firm because
it is already going to deliver education in technology related cources. Thus, changes in
technology environment have positive impact on the business firm. Environmental: There is no threat to educational institute on this front because its
operations are not affecting environment negatively. Hence, there is no need to do
anything on this front.
 Legal environment: ExcelHub need to follow rules and regulations tightly because in
case of failure to do strict action can be taken against it.
Gaining of life skills and employment
In order to ensure that students will suerly get employment after education time to time
certification cources will be conducted under which students will be made familiar to latest
technology. This will increase their skills and increase chances of employment. students
registration for free online cources will be done on websites like Courcera and MOOC where
students without paying any amount can do cource and if want certificate can make payment to
relevant firm. By doing so it will be ensured that students are not completely dependent on Excel
Hub for learning new things and their overall development is taking place. Such kind of efforts
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and learning model will be new for people of these nations and same will ensure that knowledge
base of students increased at rapid pace. Hence, suerly students will get relevant designation in
the business firms
Budget for five years
Table 1Budget for five years
2017 2018 2019 2020 2021
Opening balance 100000 25100000 51350000 78912500 107853125
Sales
2500000
0 26250000 27562500 28940625 30387656.25
Total
2510000
0 51350000 78912500 107853125 138240781.3
Expense
Salaeries and wages 1000000 1050000 1102500 1157625 1215506
Employee benefits 100000 105000 110250 115763 121551
Consultants 140000 147000 154350 162068 170171
Rent 50000 52500 55125 57881 60775
Utilities 4000 4200 4410 4631 4862
Equipment maintenance 5000 5250 5513 5788 6078
Insurance 600 630 662 695 729
Travel 10000 10500 11025 11576 12155
Postage 2000 2100 2205 2315 2431
Office supplies 30000 31500 33075 34729 36465
Printing 4000 4200 4410 4631 4862
T&D 140000 147000 154350 162068 170171
Contraction cost 20000 21000 22050 23152.5 24310.125
Other expenses 5000 5250 5513 5788 6078
Sum 1510600 1586130 1665436.5 1748708.325 1836143.741
Net balance 23589400 49763870 77247063.5 106104416.7 136404637.5
It can be observed that sales revenue and expenses are increasing consistently in the business.
Net balance increased from 23589400 to 136404637.5. In same way sales revenue also increased
to great extent. It can be said that business idea is viable in nature. At initial stage small centers
will be opened in Somalia three states and due to this reason there will be less investment on
building or office construction. It is expected that all expenses will increase by 5% on yearly
basis. Similarly revenue will also elevate by same percentage.
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Table 2Capital expenditure budget
Capital expenditure
budget
Capital expenditure
Laptops
1500000
0 15000000 15000000 15000000 15000000
Tables and chairs 700000 700000 700000 700000 700000
Power generator 100000 0 0 100000 0
Total capital expenditure
1580000
0 15700000 15700000 15800000 15700000
Fixed assets are classified or break down in to three categories namely laptops and tables
as well as chairs. Apart from this, investment is also made on power generators which are
important asset for college. It can be seen that laotops purchase cost is same across all years as it
is assumed that in all years at same rate students will take admission in college. Same thing is
assumed about furniture. In case of power generators investment will be made in first and fourth
year as power generator may be needed more with expansion of business. Due to this reason
investment in same is made in year three again.
Number of teachers will be 20 and each one will be paid 50000 in Somalian currency.
For three disciplines of engeniering there will be 15 teachers and for analytics domain there will
be 5 teachers. On yearly basis increase of 5% will be made on employee cost.
With increase in business if required operations can be clubbed and deparment activities
may be contract. Restructuring cost willl be bear by college if any contraction happened in
busines operations.
Operational, tactical and strategic decisions
As part of operational decisions data related to business operations will be gathered
consistently. By using advanced softwares same will be analyzed and areas where work need to
be done will be identified. On other hand, in case of tactical decisions time to time meetings will
be organized with business heads and issues in business will be identified. By taking action on
time it will be ensured that business firm will perform in better manner. In order to take strategic
decisions in proper manner time to time review will be taken from students and data related to
their presence, absence from class will be gathered. Apart from this, information about their
performance will also be gathered and analyzed. Action will be taken in respect to students that
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does not perform well and by doing so it will be ensured that all students are giving good
performnace.
CONCLUSION
On the basis of above discussion it is concluded that there is ample opportunity for
educational institutes in Afghanistan, Liberia and Somalia. By making available best quality
education to childrens good command can be maintained on the market asd there are less number
of customers in the business. It is also concluded that more and more childrens will like to take
education in technical cources. Hence, there are lots of hidden opportunities in the market.
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REFERENCES
Books and Journals
Harmer, A., Stoddard, A. and DiDomenico, V., 2011. Aiding education in conflict: The role of
international education providers operating in Afghanistan and Pakistan. Prospects. 41(2).
pp.205-221.
Lambert, J.H. and et.al., 2011. Prioritizing infrastructure investments in Afghanistan with
multiagency stakeholders and deep uncertainty of emergent conditions. Journal of
infrastructure systems. 18(2). pp.155-166.
Online
Education in Somalia, 2017. [Online]. Available through:<
https://www.unicef.org/somalia/education.html>. [Accessed on 23rd September 2017].
Education, 2017. [Online]. Available through:< https://www.usaid.gov/afghanistan/education>.
[Accessed on 23rd September 2017].
Liberia literacy rate, 2017. [Online]. Available through:<
https://www.indexmundi.com/facts/liberia/literacy-rate>. [Accessed on 23rd September
2017].
Top 5 private Univerisites in Kabul, 2017. [Online]. Available through;<
https://dubaiposter.com/blog/private-university-kabul-afghanistan/>. [Accessed on 23rd
September 2017].
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