Global Opportunity, LLP - UM College of Business · Global Opportunity, LLP Page 3 of 25 1.0 EXECUTIVE SUMMARY Introduction: Global Opportunity will be organized as a Limited Liability

The Future Starts Here

Business Plan

Global Opportunity, LLP

Entrepreneurs: Hojamurod Hojaev, Saltanat Valiyeva

Copy # 2


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TABLE OF CONTENT

1.0 Executive Summary 3

2.0 Market Analysis 5

2.1 Industry Analysis…………………………………………5

2.2 The Problem………………………………………………6

2.3 The Business………………………………………………6

2.4 Service Description……………………………………….6

2.5 Customers…………………………………………………7

2.6 Benefits offered to customers…………………………….7

3.0 Competition 8

3.1 Competing Strategy………………………………………8

3.2 Exit Strategy………………………………………………9

3.3 Substitute Products……………………………………….10

4.0 Marketing Plan 10

4.1 Entry and Growth Strategy………………………………10

4.2 Target Market Strategy…………………………………..11

4.3 Product/Service Strategy…………………………………11

4.4 Pricing Strategy…………………………………………...11

4.5 Advertising and Promotion………………………………12

5.0 Operation Strategy 13

6.0 Team 14

7.0 Critical Risks 15

8.0 Offerings 15

9.0 Summary of Significant Assumptions 16

10.0 Financial Plan 21

APPENDIX 22

Map

Operations Map

Schedule for Opening

Revenue Projection

Loan Payment

Balance Sheet

Income Statement

Statement of Cash Flow

Revenue Model


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1.0 EXECUTIVE SUMMARY

Introduction:

Global Opportunity will be organized as a Limited Liability Partnership and will provide

affordable assistance to individuals that would like to enter Western Europe, Canada, Australia,

and especially United States as a student, intern or temporary worker. The Global Opportunity

LLP team is dedicated to offer a professional “one-stop-shop” service and remove barriers that

individuals face while going through the college application and the visa issuance process. The

service package offered by the firm will include the following:

Temporary free first-time consulting

School selection that corresponds to the future plan of the client

School acceptance application; include all administrative paperwork

Housing in the hosting school

Visa application

Internship abroad/temporary employment

Tourism

Travel arrangements

Opportunity:

Global Opportunity LLP plans to take advantage of the increasing demand for the western

education among the middle and upper class families that requires minimal initial investment. The

demand brings a sub-demand for a professional service that helps individuals to successfully

complete the process without having any obstacles due to the lack of language skills and cultural

knowledge.

Industry Overview:

In recent years western schools and colleges, especially ones that are located in the United States,

have become number one destination for students that go abroad to pursue an academic degree. In

2008-2009 academic years, around eight hundred students from Tajikistan received their visas to

enter the United States for the purpose of study.1 However, majority of students that come to the

United States from Central Asia are the citizens of Kazakhstan. Thus, the numbers of students that

come from Kazakhstan are much higher than Tajikistan.

Target Market:

1 Ozodi News Agency, Tajikistan; www.ozodi.org


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The Global Opportunity team will satisfy the needs of two groups of customers. The first group

will include individuals from middle class or upper class families that want to pursue their degree

outside the borders of Central Asia. The second group will include the families of the first group of

customers.

Competitive Advantage:

Global Opportunity LLP will have the first mover advantage. This will allow the firm to enter the

market and trough high quality services establish its brand equity and reputation. The business that

we are proposing would be an innovation itself. Currently, no other firm exits in the region that is

providing high quality services that we are aiming to provide. Moreover, introducing the US

market based concept of the superior customer service and responsiveness will allow us to

differentiate our business from day one of the operations. The superior customer service and

responsiveness will allow us to gain a reputation and use the reputation towards building

distinctive competencies.

Management:

Both partners have gone through the similar experience that most of the student that want go to

study abroad go through on a regular basis. It is their experience helped them to realize that there

was a gap that needs to be filled. Therefore, Mr. Hojaev and Mrs. Valiyeva decided to use the

opportunity. By utilizing their knowledge and skills they will help the future of Central Asia

countries.

Currently, both partners are in the process of completing their MBA degrees from The University

of Montana. The academic training that they receive while going trough the MBA program will

allow them to successfully implement the business.

Financial Highlights:

Our financial plan which is based on the revenue projections was constructed by month. According

to table 2-3 (appendix) in first year the company will reach $395,236 of revenue by providing

services to 1078 people in Almaty and Astana cities (Kazakhstan). In year 2012 we will open two

new offices in Dushanbe and Bishkek according to the schedule (see table 1). We made revenue

projections for 2012, and according to the table 13, the gross profit ratio is 92%.

Offerings:

The capital influx that Global Opportunity LLP is seeking will primarily provide us with a 6-

month cash reserve to meet the payroll requirements and acquire the needed administrative and

marketing tools to start up the business. The team needs 65,000 to start the business. We are

planning to finance 60% of the startup capital with a bank loan, and 40% with family savings.


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2.0 MARKET ANALYSIS

2.1 Industry Analysis

In recent years western schools and colleges, especially ones that are located in the United States,

have become number one destination for students that go abroad to pursue an academic degree. In

2008-2009 academic years, around eight hundred students from Tajikistan received their visas to

enter the United States for the purpose of study.2 Majority of students that come to the United

States from Central Asia are the citizens of Kazakhstan. Thus, the numbers of students that come

from Kazakhstan are much higher than Tajikistan.

After the collapse of Soviet Union, Central Asia countries opened their economy to the rest of the

world and the investment from around the world started to flow into the region, especially to

Kazakhstan. The reforms in the economy allowed individuals to increase their capital. In result,

elite and middle class families started to emerge. In order to provide a better future for their

children these families started to look for a better education. However, the education system in the

region still resembled the one during the Soviet Union. Thus, families started to look for locations

that could provide the modern education. Universities located in the United States and United

Kingdom became the number one destination for families to send their children.

Central Asia countries are rapidly growing in terms of population. Due to the culture and religious

beliefs number of marriages is growing and families are having at least two babies. Thus, number

of high school graduates is increasing from year to year. For instance, number of high school

graduates in Kazakhstan for the year of 2008 was around 500,000. 3 This data implies that the

demand for US colleges and language school will increase year by year.

In order to enter countries such as United States and United Kingdom, individuals from Central

Asia need a visa. The visa Issuance to above mentioned countries depends on their diplomatic and

economic relations with a particular country. Currently, the United States and United Kingdom

have a good diplomatic relations with the countries of Central Asia. For instance, due the war in

Afghanistan, the United States needs Central Asia to transfer supplies to war zones. Also, United

States and United Kingdom have economic interests on the natural resources of Central Asia

countries, such as the oil and natural gas in Kazakhstan and the water resources in Tajikistan.

Students that attend schools in the United States pay out-of-state tuition fees. The universities

located in the Unites States are interested in increasing the number of international students on

their campuses, not only for economic reasons but also for academic and diversification reasons.

Therefore, due to the importance of Central Asia as a strategic partner to the government of the

United States and the economic benefit brought by students from Central Asia to US colleges and

2 Ozodi News Agency, Tajikistan; www.ozodi.org

3 Census Agency of the Republic of Kazakhstan. www.stat.kz


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language school, students from Central Asia countries will continue receiving visas to enter the

United States.

2.2 The Problem

Although the popularity and the usage of the English language are growing in Central Asia, it is

still not widely spoken. Students from Central Asia that enroll US colleges, most of the time take

English classes, pass the TOEFL (Test of English as a Foreign Language) exam and then begin

taking classes toward their academic degree. Due the insufficient language skills and sophisticated

and sometimes confusing process of getting into US colleges, a lot of families that want to send

their children to US colleges start to look for assistance or give up on the beginning stage of the

process.

Thus, we decided to enter the market and offer a service package that would allow families from

Central Asia mitigate obstacles associated with the process and give a better future to their children

by educating them in western colleges and schools.

2.3 The Business

The Global Opportunity will be organized as a Limited Liability Partnership and will provide

affordable solutions for individuals that would like to enter Western Europe, Canada, Australia,

and especially the United States as a student, intern or temporary worker. The Global Opportunity

LLP team is dedicated to offer a professional “one-stop-shop” service that would mitigate

obstacles for the customers and allow them to have a pleasant experience of studying in a foreign

country.

The Global Opportunity LLP will be located in Almaty city of Kazakhstan and initially will

operate in four large cities of the region, which are Astana, Almaty, Dushanbe and Bishkek.

2.4 Service Description

The dedicated team of Global Opportunity LLP recognizes that a strong brand name and

recognition will support the business, strengthen the customer loyalty and allow the firm to earn a

reputation in the market. In order to earn the trust in the market, we are dedicated to allocate

sufficient resources and capabilities to provide excellent customer service and responsiveness.

Global Opportunity LLP will provide a service package to individuals who are planning to attend a

college or a language school outside Central Asia, especially school that are located in the United

States. Customers can buy the whole service package or a particular service from the package. The

service package will include the following:

Temporary free first-time consulting for clients


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School selection that corresponds to the future plan of the client

School acceptance application; includes all administrative paperwork

Housing in the hosting school

Visa application and process

Internship abroad/temporary employment

Tourism

Travel arrangements

The above mentioned services will allow customers to solve all problems associated with getting

acceptance to a foreign school. The consultants in Global Opportunity LLP will make sure that

customers get accepted to a school and to a program that they think fit their lifestyle and future

plans.

Although the Global Opportunity team will be offering almost same services to all customers, each

customer will be approached according to their needs and desires. Therefore, free consulting is

included in the service package. Free consulting session will help consultants to gather sufficient

information about the client in order to serve them better. Thus, this process will allow Global

Opportunity LLP to guarantee hundred percent satisfactions among customers.

However, it is very important to mention that like any other entity we will not guarantee the

issuance of visa in order to enter the United States or any other foreign countries. The United

States embassy makes the final decision in terms of issuing visas, thus we do not have any power

to affect the outcome of the decision making process.

While dealing with clients, our consultants will not only interact with the clients but also with their

families. Therefore, consultants will be expected to provide a professional assistance and not only

satisfy individual clients but also their families.

2.5 Customers

The Global Opportunity team will satisfy the needs of two groups of customers. The first group

will include individuals from middle class or upper class families that want to pursue their degree

outside the borders of Central Asia. The second group will include the families of the first group of

customers.

Group 1: Individuals that want to go abroad to get a degree or a temporary job will be the main

target group for Global Opportunity LLP. These individuals will be the main source of revenue.

Most of the individuals that we expect to serve will need assistance with a college or a school

application process and will be around 18-24 years old.


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Since their families will support them financially, family will play an important role in the whole

process. Thus, the second group that needs to be served will be the families of clients.

Group 2: The culture of Central Asia is very family oriented and families will have a huge role in

the decision making process of clients. In order to get a reputation and increase the market share,

the Global Opportunity team will treat the families of clients as customers. The target group 1 will

leave the region once they successfully receive their visas. However, their families will stay

around. Thus, in order to make sure that the families approach Global Opportunity LLP when they

need same service again, the team of consultants has to make sure that families of clients are

treated professionally and satisfied with the level of the service provided.

2.6 Benefits offered to Customers

Global Opportunity LLP is dedicated to mitigate barriers that different individuals from Central

Asia face in the process of traveling abroad for the purpose of study. The barriers are created due

to the lack of language skills, culture knowledge and the lack of experience. By approaching

Global Opportunity LLP customers will be able to chose right school and right program for

themselves and get a professional consulting to make a better decision. Moreover, customers will

decrease the risk associated with not getting accepted into a university and not getting visa to a

host country.

Meanwhile, the families of individuals will save time and decrease the level of stress just by

approaching Global Opportunity LLP. Since families will be involved in the decision making

process, our professional team will make sure that they receive all necessary information in order

to make a better decision.

3.0 COMPETITION

3.1 Competing Strategy

Currently, there are different individuals in the region that can provide assistance with school and

visa application process. Since most of them have a job, they approach this process as an activity

that will allow them to earn extra money. However, there is no any entity in the region that

provides services that we are aiming to provide in our service package. No other entity is currently

focused on going after the market that we would like to pursue, there are no direct competitors.

No direct competitors and the low capital required to establish the proposed business make the

level of barriers to enter the market low.

The Global Opportunity LLP will have a number of indirect competitors that consist of following

entities and individuals:


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Travel Agencies: employees of travel agencies have sufficient skills and experience to

provide some of the services that the team of Global Opportunity LLP wants to provide. Since

their target market is people who need assistance with travel arrangements, they will not be

considered as a direct competitor.

Employees of International Organizations and Multinationals: Most of them have a degree

from a college in the United States or Europe. Thus, this group as well has sufficient knowledge to

assist individuals who want to study abroad with administrative paper work. However, due to the

workload that they have, most of the time they are not available to assist. Moreover, the salary that

these individuals receive is relatively high and monetary incentive that comes with assisting

individuals with school and visa application paperwork is not attractive to them.

Students that study abroad and go home during breaks: Students that come home during the

summer break will have a potential to create a competition for Global Opportunity LLP. However,

their resources and capabilities will not allow them to conduct promotions and provide efficient

and high quality service that we are aiming to provide.

The above analysis of each potential competitor proves that Global Opportunity LLP will not have

a direct competitor that has the same resources and capabilities to provide similar services.

However, due to the low barriers of entry and low degree of dependency on suppliers, some

competitors might arise in the future.

The first mover advantage will allow Global Opportunity LLP to dictate the movement of

customers in the market and increase its power. This will allow us to keep low the power of buyers

and dictate the price of the services.

The strategy to compete in the market will be focused differentiation. From day one of operation

the team of Global Opportunity will focus on providing high quality service and establishing long-

term relationships with clients and their families. Trust and relationship plays a huge role in the

business culture of Central Asia. In order to earn the trust of customers we will tailor our services

according to individual needs and desires of each customer and his family. Therefore, once the

firm starts to face competition in the future, we can play our trust and relationship cards to

eliminate competitors or decrease their power.

3.2 Exit Strategy

The business concept that we are offering is simple and others can duplicate it and compete against

us. Once Global Opportunity LLP starts to face a serious competition, the number of provided

services will increase in order not to lose the market share and maintain the reputation. The

services that will be included are the following:

TOEFL, GMAT, GRE, LSAT, SAT preparation courses

Testing center


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English Language courses

Small library that provides access to resources regarding different colleges around the

world and application process

Opening locations in Uzbekistan and Turkmenistan

This strategy will allow us to provide an umbrella service that offers a solution to any problem that

individuals encounter during the entire process of traveling abroad for the purpose of study or

work. Meanwhile, this will allow the firm to maintain customers and attract more. However, the

exit strategy for us would be to sell the business and invest the capital to establish a consulting

firm in the field of human resource management.

3.3 Substitute Products

Global Opportunity LLP will not face any treat in term of substitute products/services. In order to

get into a college in outside Central Asia, everyone needs to go through the same school and visa

application process. Thus, any entity that want s to offer assistance needs to provide similar

services. The elimination of potential substitute service will allow the firm to allocate its resources

and capabilities toward strengthening its position in the market.

4.0 MARKETING PLAN

4.1 Entry and Growth Strategy

Global Opportunity LLP plans to enter Central Asia market in January 2011 by establishing its

first location in the city of Almaty, Kazakhstan, and operate out of this location. During the first

year of operation the firms will strive to capture the Kazakh market by opening its location in the

capital city of Kazakhstan, Astana. By the end of the second year, Global Opportunity LLP plans

to open its locations in the capital city of Tajikistan, Dushanbe and the capital city of Kyrgyz

Republic, Bishkek.

During the first years of operation, Global Opportunity LLP will only serve the Kazakh, Tajik and

Kyrgyz markets. If resources and capabilities allow, the firm will establish its locations in

Uzbekistan and Turkmenistan and serve these two markets as well.

The firm plans to grow and increase its market share by increasing the number of services

provided and by earning trust and reputation among targeted customers. Since the target group will

consist of relatively higher income families, downtown areas and well-known avenues will be

selected as a location for the firm.

4.2 Target Market Strategy


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The main customer group for Global Opportunity LLP will be individuals who are planning to

travel abroad for the purpose of getting education, internship and tourism. However, in order to

successfully turn each meeting with a customer into a sale, we will have to focus on the families of

individuals that we want to serve as well. Families play an important role in the decision making

process. Thus, the firm will be interested in involving families into the process.

Initially, we will reach individuals who would like to study abroad trough different promotions

explained in the advertising and promotion section. Once we reach potential customers we will

deliver the message to their families through themselves. Since most of the individuals who go

abroad are young and depended on their families, we will ask them to bring their parents or

guardians when they visit our office. This way we will be able to include parents or guardians in

the decision making process and earn the trust of families and gain a reputation.

Most of the families have more than two children. Those families that send their first kid abroad to

study or for any other reason keep the tradition. Once we assist parents to send their kid to a school

in the United States, next time when they decide to send someone else form the family abroad they

will approach us. Therefore, establishing relations by providing a unique customer service will be

important. In order to make initial contacts with potential customers we will organize seminars in

schools, where we can talk with students and their parents.

4.3 Product/Service Strategy

Global Opportunity LLP strives to provide a service package that will have a solution to all major

problems that individuals face while trying to study in a university outside Central Asia.

Professional consultants will approach is individual client according to their needs, future plans

and language skills. The offered service package will not only assist individuals with all

administrative paperwork and travel arrangements, but also will allow them to save time, mitigate

stress and decrease the risk associated with committing a major error that will result in a rejection

of visa to enter a foreign country.

In order to establish ourselves in the market and better serve customers, the firm will be providing

temporary pre-sale free consulting services and after-sale service and support for customers. Free

consulting sessions will allow consultants to better know their client and by utilizing gathered

information effectively serve the client. After-sale service and support will allow us to gather

information regarding the strengths and weaknesses of the provided service. Also, it will allow us

to keep track of the number of customers that receive visa and enter the hosting country.

After-sale feedback will allow us to discover why customers approach us, from customers’ point of

view. This will allow us to build better relationships with customers and tailor the business to

better serve the needs of the targeted market.


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4.4 Pricing Strategy

First-mover advantage will allow Global Opportunity LLP to ask a premium price for the services

offered. Since, our main focus will be families with relatively higher income, a $500 fee for the

service is fair and affordable. In return customers will receive high quality, satisfaction guaranteed

service. Customers will be charged after they receive the service they need.

In a case if a customer does not receive a visa to enter the host country, we will assist the customer

again and will not charge any fee if the reason for the rejection was any committed error from our

side. However, if the customer rejected a visa because of his own record we will be happy to assist

again but for a fee. In this case the fee will be half of $500. This will allow us to maintain our

promise of satisfaction guaranteed.

4.5 Advertising and Promotion

Creative advertising methods will be essential for the firm to reach potential customers. However,

Global Opportunity LLP plans to commit minimal financial resources in advertising and

promotion. The firm will seek inexpensive ways of advertising, such as:

a. Visiting schools and talking to teachers and students

b. Participating in different educational fairs

c. Visiting universities and meeting with students that want to continue their education abroad

d. Website

e. Public relations and press releases

f. Radio advertising

g. TV advertising

We will allocate $5,800 for the advertising and promotion for the first year of operation. Since, TV

advertising is relatively inexpensive in the region, $300 will go toward covering TV advertising

and the remaining portion will be used for above mentioned promotional activities. By year 2012

the firm’s advertising and promotion budget will reach $ 9,000 and by 2013 it will reach 18,000.

a. Large group of our customers will be high school graduates. In order to reach them we will

visit different schools and organize meetings with them. We will also involve school

teachers in the promotional activities. For instance, any school principal will be interested

in having a high number of graduates from his school studying abroad. Thus, school

principals will be interested in cooperating with Global Opportunity LLP.

b. Each year, in different locations around the Central Asia, educational fairs that are focused

on promoting different universities around the world are organized. We will attend these

types of events and increase our network. Educational fairs will allow us to meet families


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that are interested in sending their children abroad and establish relationships with

representatives of different schools around the world.

c. Most of the individuals that plan to get a degree from a college in the United States or

United Kingdom first enroll into a university in Central Asia. Once they complete their

lower courses they transfer to a school in the United States and complete their degrees here.

Therefore, meeting with these students will allow us to promote our services and attract

potential customers.

d. We will use our own website to promote our services. Meanwhile, we will purchase spots

in most visited websites in available in Russian language.

e. Global Opportunity LLP will seek to establish relations with educational publications in

different regions of Central Asia. We will establish relations with influential individuals

and ask them to write an article or a column about Global Opportunity LLP.

f. The radio is considered to be one of the inexpensive and effective ways of advertising in

Central Asia. We will allocate a limited amount of capital to advertise the firm and offered

services through the most listened radio stations that target younger generations.

g. The TV advertising is considered to be the most expensive method of advertising in the

region. Global Opportunity LLP has allocated limited financial resources for TV

advertising in the first year of the operation. We plan to advertise on channels that not only

the younger generations watch but also their parents.

5.0 OPERATIONS STRATEGY

Global Opportunity LLP operations will focus on differentiating the service from day one. Because

the business culture is based on relations by offering the focused and differentiated service we will

be able to gain the trust of individuals in the targeted market and build a reputation.

Our operations model will be simple. We will promote our services trough different sources and

attract clients for a free consulting sessions. Highly professional consultants will attempt to convert

most of the free consulting sessions into actual sales. Once we assist individuals, we will charge

them a fee of $500.

In order to successfully assist the high number of clients, we will have one manager-accountant,

two consultants, receptionist, and seasonal assistants in each location. We also will create a


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website where potential clients can visit and gather the information they need and submit the

information needed to better assist them when they visit one of our locations.

6.0 TEAM

The partner, Saltanat Valiyeva, earned a Bachelor of Science Degree in finance. Currently, she is

in the process of completing her MBA degree from The University of Montana. Mrs. Saltanat

Valiyeva is originally from Kazakhstan.

After completing her finance degree, Mrs. Valiyeva began to work in the Tax Committee under the

Ministry of Finance of Kazakhstan as a tax executive of the Department of Analysis and Short-

term Projection. Her responsibilities included collecting information about incoming tax payments

and other mandatory contributions for the budget of the country from the regional Departments of

Taxes and then analyzing this information. Collaborating with the Ministry of Economics and

Budget Planning of Kazakhstan, Mrs. Valiyeva participated in the project development of National

funds of Kazakhstan. She also made daily reports of tax and other mandatory contribution into the

budget of Kazakhstan to the Chairman of the Tax Committee. As Saltanat dealt a lot with the law

and the creation of law, she decided that it would be very helpful for her work for Government to

get degree in Law.

In 2008, she graduated from The Kazakh-Russian University with honors, getting second degree in

Law. In November, Mrs. Valiyeva got an opportunity to study in the United States of America, and

she decided to leave her job and move with her family to Montana, the United States. Mrs.

Valiyeva entered the United States as a student. Thus she has an extensive knowledge and

experience of the college application process and the visa application process. Her knowledge and

experience combined with her business degree will allow her to become a valuable asset for the

firm.

The partner, Hojamurod Hojaev, was born and raised in the capital city of Tajikistan, Dushanbe.

After graduating from high school, Mr. Hojaev studied economics in Tajik National University for

two years. When the opportunity for studying in USA came across, Mr. Hojaev utilized the

opportunity and in 2008 graduated from The University of Montana with B.S. in International

Business and B.S. in Management. Currently, he is pursuing an MBA degree at The University of

Montana and expected to graduate in May 2008. Mr. Hojaev possesses required knowledge

regarding the business culture and the general culture of the people of Central Asia. By utilizing

the business knowledge and skills learned while going to school in US, Mr. Hojaev will be a great

asset to the team.

Mr. Hojaev and his business partner have gone through the similar experience that most of the

students that want to study abroad go through on a regular basis. It is their experience that helped

them to realize the problem that needed a professional solution. Therefore, Mr. Hojaev and his


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business partner decided to use the opportunity. By utilizing their knowledge and skill, both of the

partners are dedicated to contribute to the future of the Central Asia countries by taking part in its

educational system.

7.0 CRITCAL RISKS

The political climate of the world will have an effect on the sales of Global Opportunity LLP. It

would be very hard for our clients to get visa if Central Asia countries do not maintain friendly

relations with countries like United States, Canada and United Kingdom. Currently, due to

geographical location of Central Asia and economic interests the western superpowers have

friendly relations with most of the countries in the region.

Global terrorism will also have a negative impact on the day-to-day activities and sales of Global

Opportunity LLP. For instance, if any terror attacks take place in the soils of the United States, for

many coming years, it would be hard to receive a visa in order to enter the United States.

For better understanding of financial forecast of the business, we made all projections in USD, but

in Central Asia USD is not stable currency, so we will do business in euro as it is most stable

currency in our countries.

8.0 OFFERINGS

Capital requirements: The capital influx that Global Opportunity LLP is seeking will primarily

provide the firm with 4-month working capital (because in month 5 the business will generate

sufficient cash to meet payroll requirements and acquire the needed administrative and marketing

tools to start up.

The expected start up expenditures includes:

Registration expenditures = $200

Rent office = $9000

Office furniture = $7400

Desktops and laptops= $5900

Printers (3 in 1) = $1400

Phone lines = $200

Phones = $800

Internet set up = $200

Other office equipment (carpets, chairs, sofas, coffee tables, tea pots and sets) = $12260

Office supplies = $1200


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Advertising production = $3000

TV advertising = 1500

Other promotion expenses (brochure, personal promotions, web site) = $2800

Six month working capital = $ 25000

TOTAL START-UP NEEDS = $65000

We are planning to finance the startup capital 60% with bank loan, and 40% with family savings.

9.0 FINANCIAL PLAN

Our financial plan based on the revenue projections we constructed by month. According to table

2-3 in first year the company will reach $395,236 of revenue by providing service to 1078 people

in Almaty and Astana cities (Kazakhstan). It looks like 1078 sales are difficult to serve, but 404 of

these 1078 sales will be Visa Application service which consume the least amount of time for

completion and is least expensive.

As it is shown in table 12 the gross profit in first year is 92%. It is difficult to imagine, but the

Global Opportunity LLP will provide services that is why there is no big direct costs associated

with providing services. The only direct costs are direct labor which is relatively inexpensive in

Central Asia. Moreover, there is not much competition in the market, and the company is the first

mover.

In year 2012 we will open the two new offices in Dushanbe and Bishkek according to the schedule

(see table 1). We made revenue projections for 2012, and as it is shown in table 13 the gross profit

ratio remains at the same level (92%). We think that this business is very attractive, and by year

2013 new competitors may occur, so the margins will go down to 88% in 2015.

According to the statement of Cash flow (table17), the company will gain big amount of cash, so

there is an opportunity to invest them. The company may look at future expanding of services (exit

strategy), and open testing center and preparation courses which will involve huge investments, but

will bring more customers.


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10.0 SUMMARY OF SIGNIFICANT ASSUMPTIONS

As the financial position and the number of population differ in each country and even in each city,

we have done projections according to our knowledge of each region where the offices will be

located. Here are some facts about the regions:

Kazakhstan’s people have higher level of income and larger population than Tajikistan and

Kyrgyzstan (the smallest country). Therefore, projections in service sales will be higher in the

offices of Almaty and Astana cities (both are located in Kazakhstan) than in other two offices.

Almaty is located in the south of the Kazakhstan (where the wealthiest people are

concentrated) and previously was the former capital of the country, and now is the financial city of

Kazakhstan. According to the data of The Statistic Agency of the Republic of Kazakhstan, on the

October 1, 2009, the population of Almaty city is 1,392 thousand people and of Astana 674

thousand people. Therefore Almaty city will have the highest projections of sales.

The team constructed the monthly revenue projections for the first year of operations for each

office (see table 2-7). According to the market research conducted by the team the following

assumptions were made to construct the revenue models:

The team plans to start up business beginning from January 2011 in Astana city, and it is

determined that during six months the first office will be fully operated. Then in July the second

office in Almaty will be opened and analogically in Dushanbe in January 2012, and Bishkek in

July 2012. That means that the first office (Astana) will have 12 operating months, second

(Almaty) – 6 months during first year (see table 1).

As there can be many visitors from regions close to the city where the office will be

located, it is appropriate to offices operate 6 days a week (from Monday till Saturday). Assuming

there is 4 weeks in each month and 6 operating days in each week (24 operating days in each

month), we constructed monthly revenue projections for each office (see table 2-7).

The offices are going to operate from 9 am till 7 pm (9 working hours) with 1 lunch hour

on week days, and on Saturday from 9 am till 5 pm without lunch hours (8 working hours).

According to these data we made assumptions on number of visitors to each office per day.

There is the seasonal tendency of sales on all services except Visa Application Consultation

and Job Consultation. Students graduate from high school in May, but sometimes try to apply to

the university or college before graduation. There is a big chance that sales of Study Abroad

Consultation (SAC) will boost in May - August period, and in winter (November – December)

when there is a chance to be enrolled to an international university for future students. Summer

and winter holidays are the best periods for high school students when parents are willing to send

them abroad (the opportunity to travel abroad and study English), so the sales of English Abroad

Consultation (EAC) will increase during that period too. The Disney Land (DL) service’s sales are

projected to increase during summer time.


Page 18 of 25

The team assumed to have about 2 visitors in the office in Astana per day during the first month of

operation. As the company will provide the promotion campaign it will allow the number of

visitors to increase each month to 4 people per day in April. As it was assumed earlier there is a

seasonal tendency which allows us project visits in June (5 visitors per day). The peak in summer

season will be during July (9 daily visitors) with decrease in August to 8 daily visitors. In

September-October months the number of visits will decrease to 5 per day (sales mainly will be

consist of other services then SAC and EAC). The winter season will bring more visitors in

November and December (9 per day). Analogically other offices have the same logic, but number

is adjusted to the size of market in each region (see table 2-7).

Sales will be made by 10% of visitors during first month of operations because this will be

new type of service, and not all visitors will trust to the company. By advertising and word of

mouth the percentage of sales will increase and in May 2011 will approach 50% of all visits.

Also according to market research we made sales projections by category of the service

that the company will provide. We assumed that during seasonal sales the percentage of SAC and

EAC will increase (see table 2-7).

We also constructed headcount projections assuming how much time the consultants will

spend to accomplish each number of sales. We analyzed how much time will be spent to

accomplish all service (see table below). According to the analogical analysis we projected number

of headcount needed, and made decision to hire part time staff (consultant assistants) during peak

sales (May-August, November-December).


Page 19 of 25

Time Spending Analysis in General For 1 year in Astana Office

in hours

Service

description

Time per

free

consult

Total

visitors

Total

Time on

free

consult

Time Spent

per Service

Number

of Sales

Total Time

Spent to

Accomplish

Sales

Total

Time

Study Abroad

Consultation 0.5 358 179 5.5 185 1020 1199

English Abroad

Consultation 0.5 504 252 5.5 264 1452 1704

Job Abroad

Consultation 0.5 171 85 5.5 90 492 578

Disney Land 0.5 40 20 5.5 21 115 134

Visa Application 0.25 608 152 1.5 326 489 641

Total 1680 688 862 3568 4256

Total time per day 2.4 12.4 14.8


Page 20 of 25

Headcount projection (2011)

in people

Office Name of Content

January-

April

May-

August

September-

October

November-

December

Astana

Average # of Visitors/day 2 to 4 5 to 9 5 9

Consultant 2 2 2 2

Consultant Assistant 0 2 0 2

Receptionist 1 1 1 1

Janitor 1 1 1 1

Local Manager/Accountant 1 1 1 1

Total Staff 5 7 5 7

Almaty

Average # of Visitors/day 0 3 to 4 3 to 4 6 to 7

Consultant 0 2 2 2


Receptionist 1 1 1

Janitor 0 1 1 1

Local Manager/Accountant 0 1 1 1

Total Staff 0 5 5 6


Page 21 of 25

Headcount projection (2012)

in people

Office Name of Content

January-

April

May-

August

September-

October

November-

December

Astana

Average # of Visitors/day 6 to 7 11 to 12 6 9 to 10

Consultant 3 3 3 3



Janitor 1 1 1 1

Local

Manager/Accountant 1 1 1 1

Total Staff 6 8 6 8

Almaty

Average # of Visitors/day 7 to 8 12 to 13 7 10 to 11

Consultant 3 3 3 3



Janitor 1 1 1 1

Local


Total Staff 6 8 6 8

Dushanbe

Average # of Visitors/day 0 to 2 4 to 5 2 to 3 4 to 5

Consultant 2 2 2 2



Janitor 1 1 1 1

Local


Total Staff 5 5 5 5

Bishkek

Average # of Visitors/day 0 0 to 1 1 2 to 3

Consultant 0 1 1 2



Janitor 0 1 1 1

Local


Total Staff 0 4 4 5


Page 22 of 25

The LLP Global Opportunity do not sell on account and do not accept checks

The labor expenses consist of fixed and variable portion. All Consultants are paid $100 per month

(fixed portion) plus benefits 6% of sales they made (variable portion). As all three countries are

developing, so $100 per month is relatively much money.

In 2 years of operating, the prices for services will drop by 10 % as competitors will enter the

market. Moreover, fixed portion of salary will increase to $150 per month to retain experienced

staff.


Page 23 of 25

APPENDIX

MAP OF CENTRAL ASIA


Page 24 of 25

OPERATIONS MAP

Schedule of Office Openings in Central Asia

table 1

# Country City

Month of

start

operating

Number of Total Working Months

2011 2012 2013 2014 2015

1 Kazakhstan Astana Jan-11 12 12 12 12 12

2 Kazakhstan Almaty Jun-11 6 12 12 12 12

3 Tajikistan Dushanbe Jan-12 0 12 12 12 12

4 Kyrgyzstan Bishkek Jun-12 0 6 12 12 12


Page 25 of 25

Documents

Global Opportunity, LLP - UM College of Business · Global Opportunity, LLP Page 3 of 25 1.0 EXECUTIVE SUMMARY Introduction: Global Opportunity will be organized as a Limited Liability