Objectives of the Market/Feasibility Study and Business Plan

HEG will determine the critical elements needed for the formation of your school starting with the market/feasibility study and financial projections within the business plan, focusing on the following objectives to consolidate the purpose and direction for the new school’s:

• Vision and mission statements;
• Educational philosophy and values;
• Educational program(s);
• Accreditation requirements and licensing;
• Potential combinations of grades for each stage of formation;
• Staffing, training, and human resource considerations;
• Infrastructure requirements;
• Funding requirements;
• Management team, governance model, organizational chart, and personnel needs;
• Timelines, benchmarks, and services for each stage of formation;
• Review of the business case including assessment of the market opportunity and value of the school to be developed;
• Financial costs/assumptions for the start-up budget and five-year financial plan;
• Determine the corporate structure and/or investment/funding;
• Determine target market, enrollment projections, marketing, and admissions plan;
• Determine project management timelines and milestones;
• Determine proposed facility requirements and suitable location(s) of the school;
• Address issues/strategies to ensure successful start-up and operation of the school;
• Develop a Business Plan that provides an Executive Report, recommendations, and cost profile with an overview of demand for the proposed school, costs, and ‘blueprint’ for moving forward.

Objectives of the business plan include:

• Provide a summary of the viability of the project(s), including key measures for investors (e.g., IRR, break-even point or other appropriate measures of project value) and for lenders/donors (e.g., coverage ratios to show the project’s ability to support debt). The financial model will include sensitivity analysis to take into considerations variability in the key project assumptions;
• Prepare a concise presentation in coil-bound hard copy and a CD to the Client with a PDF and MSWord version format presenting HEG’s findings, conclusions, and recommendations concerning the subject school project(s). The following topic headings provide an overview of the expected:
• Executive Summary
• Business Description
• Pricing Strategy for Tuition
• Positioning And Competition
• Admissions And Enrollment
• School Formation Overview
• Location, Facilities, and FF&E
• Detailed Proformas, Financial Statements, and Budgets (Payroll, Capital Contributions, Financial Statement, IRR, Income Tax Loss Carry-Forward, Development Costs, Revenue, Procurement, Depreciation and Amortization, Administration Costs, Physical Plan and Maintenance Costs, Land Acquisition and Mortgage