Вы находитесь на странице: 1из 23

EXECUTIVE SUMMARY

HackersTutor is a New York based company that primarily provides 1:1 tutoring
service that is custom tailored with the students academic needs and goals. While 1:1
tutoring service has been long existent, we have found a means to make the tutoring
session we create more meaningful with a much lower churn rate. This is done by the
management team of HackersTutor custom tailoring a curriculum that not only covers
the students immediate academic concern but also bridges to the students future academic needs.

The Market.
The future of the tutoring industry looks bright; the overall market size of the
tutoring industry in the US reported in 2013 was $15.26 billion. The industry remained
relatively stable despite economic upheavals, largely due to pressure placed by society and parents on solid academic achievement to ensure the stability of job
placement even in the midst of economic recession.
The number of students in public and private elementary and secondary
schools in the US is projected to reach over 57 million by 2018, from 55million students.

The Services.
HackersTutor aims to offer network of qualified tutors to students and parents.
We can differentiate our tutoring services by taking on a much more hands on approach that can be easy to replicate through a series of database matching algorithms working together to match a student and tutor seamlessly with near precision
which also provides a peace of mind to the parents and students.

EXECUTIVE SUMMARY (contd)


Management.
HackersTutor is founded and managed by Dennis Kim and Jun Jo. Dennis Dennis Kim has been involved in many industries throughout his life due to his natural curiosity learn and master new trades. Harnessing the experience and knowledge from
various walks in life, he is able to create a vision which will ultimately lead his team to
innovative products and services and hopes to change the world as we know it. Professionally, he served in the U.S. Air Force for almost 8 years in the field of Airfield RF
Systems.
Jun Jo, having majored in biology as an undergraduate, brings a wealth of excellence as well as a proven record of tutoring. Jun Jo began tutoring to make side
money while studying for the Dental Admissions Test. Since the beginning, he has
taught a variety of subjects including MCAT, DAT, SAT, ACT, SAT II Bio, SAT II Chem,
AP Chem, AP Bio, and many more. His kin understanding in subjects and passion to
teach students has led him to teach over 200 students individually.

A. Mission & keys to Success


HackersTutor understands that every child is unique and learns better in
their own ways. Yet, so many tutoring programs are generalized and set up in
a cookie cutter approach. Our success depends on bringing a personalized
tutoring method to students and parents and providing qualified tutors with
our network of teachers.
B. Objectives
I. Successfully develop Hackers Tutor app and website.
II. Increase network of tutors.
III. Increase reputation.

COMPANY SUMMARY
Company Ownership
HackersTutor is founded and managed by Dennis Kim and Jun Jo. Dennis
Kim has been involved in many industries throughout his life due to his natural
curiosity learn and master new trades. Harnessing the experience and
knowledge from various walks in life, he is able to create a vision which will ultimately lead his team to innovative products and services and hopes to change
the world as we know it. Professionally, he served in the U.S. Air Force for almost
8 years in the field of Airfield RF Systems.
Jun Jo, having majored in biology as an undergraduate, brings a wealth of
excellence as well as a proven record of tutoring. Jun Jo began tutoring to make
side money while studying for the Dental Admissions Test. Since the beginning,
he has taught a variety of subjects including MCAT, DAT, SAT, ACT, SAT II Bio,
SAT II Chem, AP Chem, AP Bio, and many more. His kin understanding in subjects and passion to teach students has led him to teach over 200 students individually.

Company History
HackersTutor was founded in New York, 2015. It started when HackersTutors co-founder, Dennis Kim, was asked to tutor his sister-in-law to raise her
grades so she can successfully finish 6th grade. There was much greater demand as he realized there are many tutors out there, but not systematically controlled to have consistent results. He asked Jun Jo to join to help him with education components and consulting with parents.
After a few months in, the two co-founders were overwhelmed with demand for more qualified tutors with unique sets of skills and qualities, but not
enough network of tutors to provide to meet the demand.

SERVICES
HOW WE PROVIDE OUR SERVICE.

Areas of Subjects
HackersTutor offers but not limited to the following courses:

2nd grade- 10th grade overall academic enrichment (GPA management)


SCAT
AMC 8, 10, 12
SHSAT
Hunters Entrance Exam
ISEE
SSAT
SAT I
ACT
SAT II Bio, Chem, Physics, literature, US History, Math IIC, etc
Algebra I, II
Pre-calculus
AP Bio, chem, physics, etc

Service Positioning Model


A) HackersTutor Assigned Tutoring:

Competitively priced, highest profit margin.


HackersTutor handpicks the tutors and work in close collaboration with the
Tutors and Parents.
Tutors are not necessarily all Graduate School students or grads but can be
college students that have an ability to follow through a recommended curriculum and effectively teach the student accordingly.

B) HackersTutor Choose Your Own Tutor:

Listing of High Profile Tutors charging a premium for their experience and
own HackersTutor approved curriculum.
Tailored to an upscale range of Parents who prefer to have the ability to
choose their own tutors with specific prerequisites, such as, at least 10 years
of experience, Ph.D, certified teacher, and etc.

SERVICES (contd)
Service Positioning Model (contd)
C) B2B Affliate Program:
Tailored for brick and mortar locations looking to expand their services
portfolio to accommodate for parents preferring 1:1 tutoring through an
affiliate agreement with HackersTutor.

Results

Parents are exceptionally satisfied with our current ability to provide the right tutors with near perfect accuracy and more importantly students are learning cooperatively because they get along with their assigned tutors. Furthermore, the parents are
sent weekly mini-progress reports to showcase tutor engagement and exactly what
the tutor has covered during their sessions, down to the exacting details.

FUTURE SERVICE.
Development of the App and Website.

Once HackersTutor develops the app and website, we will be able to project our
methods to a grander audience and increase our sales velocity.
With the website and app, we plan to incorporate 1:1 online tutoring, international tutoring via app platform, geo-location of nearby tutors and request portal (such as
Uber, but for Tutors), reports and graphs of academic performance, rating system for
tutors, reward point system for tutors earned by satisfied parents, payment system,
user friendly sign up process, supplemental information page for requested courses
and compatibility test. The tutors, once assigned a student will be granted temporary
access to materials needed automatically filtered and sorted through their app. The
app will also have a function for tutors to actually rate the student academically and
have a feedback model in which to right teacher comments.

Pop-Up Group Sessions:


Tailored for special group sessions that span 1 2 weeks of intensive focus in a

particular subject for a particular group of students.


Made possible through affiliate arrangements to temporarily borrow unused classroom space.
Agreement made with Subject Matter Experts in various fields to host Pop-Up
Group Sessions.
Class size to be 5 20 people, pending availability and interest level.

MARKET ANALYSIS SUMMARY


Global Industry Overview
Global Industry Analysts, Inc. (GIA), a market research firm, has released a study stating that the global private tutoring market is projected to
surpass $196.3 billion by 2020. The overall market size in the United Stated,

reported in 2013, was $15.26 billion, an increase of 3.5% compared to 2012.


The burgeoning private tutoring market is being driven by growing desire
for academic excellence, inability of standard education system to address

the unique needs for individual student, combined with growing parental
desire to secure the best possible education for their children in a highly
competitive global economy.

According to GIA, major players include:

A Plus-All Subjects Tutoring,


Inc.
Building Educated Leader For
Life
Club Z! Tutoring Services
Educomp Solutions, Ltd.
Kapln Inc
Kids R Kid International Inc
JEI Learning Centers
Kumon
Learn It System

LearningRx
Mathnasium LLC
Megastudy Co. Ltd.
Rocket Learning Inc.
Sylvan Learning Inc.
The Princeton Review Inc.
Tutor Doctor
Tutor.com Inc.
TutorVista Global Pvt. Ltd.
Woongjin Thinkbig Co Ltd.
Daekyo Co. Ltd.
Fleet Tutors

MARKET ANALYSIS SUMMARY (contd)


Different Companies, Different Business Models.

All tutoring services promise great results, but the reality is that in a
rapidly expanding and unregulated industry, effectiveness will vary. Below is a brief listing of some tutoring-related services, along with a note
or two on each:
Stizzil.com this is an online tutoring company that promises officially licensed educators,
and offers an interactive program that records the tutoring, allowing students and teachers to
review sessions.

Tutor Vista this online tutoring service, the largest in the world according to its website, is
based in India and specializes in all levels of English, mathematics, and science, with most of its
customers located in the US.

Club Z! operating throughout North America, it claims to be the largest in-home tutoring
service in the world, however many of the locations are franchises and quality varies.

Home Tutors based in the UK, Home Tutors has a postcode sortable database of more
than 11,000 registered tutors.

Eduboard.com offers 30-minute online sessions, and 24/7 homework assistance with a
guaranteed two-hour response time.

Tutor.com has logged over 8 million sessions and has a mobile app for iPad, iPhone and
iPod Touch.

GrowingStars.com founded in 2002, the company specializes in math tutoring from elementary through high school, and is known for offering excellent test prep.

Tutor Matching Service this is an online community built within Facebook that matches
students with tutors. The tutors go through a certification process that is designed to ensure that
the company employs only high quality teachers.

Net Tutor this company was formed in 1996, offers all levels of math and English
tutoring, and employs only US-based teachers. The website has had over one
million unique users and more than two million tutoring sessions.

MARKET ANALYSIS SUMMARY (contd)


TRENDS AND FORECAST

As students enroll in higher education courses, tutoring has become a


prime method for bolstering traditional learning. What used to be helping
children who were falling behind in particular subjects, tutors are now being

hired to ensure students grades are equal to or above their peers grades.
Students and their families are more willing than ever to turn to and invest
in highly qualified tutoring services in order to gain an edge as entrance ex-

aminations have become prominent factor for gaining admission into many
competitive universities and colleges. This is an exciting news for tutoring
industry.
Despite increase demand for online portal access, the key to the survival of this industry (of any industry) is to focus on maintaining personal relationships with clients and tutors. This is not to rule out online self-monitoring
tutorials such as Khan Academy, but the best possible education at the present time is still to be found in-person, face-to-face. The main role of the
tutor is to guide and support the learning process by helping learners to find
and assess additional resources, guide interaction with peers and provide
support to empower the learners.

MARKET ANALYSIS SUMMARY (contd)


Reasons behind increased demand for tutoring services

According to GIA, the use of tutors has exploded in recent years due
to the following factors:

Favorable demographics;
The adoption of new technologies in various educational practices;
Rising student enrolments;
Intense competition among students;
The need to excel in competitive exams;
The inability of standard education systems to address the
unique needs of each student;
Lack of teaching staff at schools;

Budget cutbacks for K-12 education in the US proved to be a blessing in disguise for the private tutoring industry Based on the federal
budget reported, Congress has cut funding for K-12 education by nearly
20 percent over the last five year.
GIA pointed out that volatile economic conditions and budget cutbacks proved to be a blessing in disguise for the private tutoring industry. The sector remained relatively insulated amidst the economic upheavals, largely due to the enormous significance placed by society and
parents on scholastic achievement that ensured steady growth even
during the crisis period.

Another reason for increase in seeking for tutors is the technology


revolution that is currently reshaping the educational sector. The etutoring piece of the global tutoring industry is estimated to be worth
more than US $12 billion, and along with other types of distributed
learning systems, is undergoing a rapid, tech-based expansion fueled
by demand for its convenient and inexpensive services.

MARKET ANALYSIS SUMMARY (contd)


INDUSTRY GROWTH
The tutoring industry shows no signs of slowing down. According to
the National Center for Education Statistics, the U.S. has a total of 55 million
students in public and private elementary and secondary schools, and the
total number of students is projected to reach over 57 million by 2018. According to AnythingResearch.com, Exam Preparation and Tutoring ranks
number 7 on its list of fastest growing industries that are hospitable to
small businesses.
Future looks bright for tutoring industry
Future looks bright for tutoring industry as opportunities abound in
the global tutoring field for students, teachers, educational institutions,
tech firms, and business in general. The magazine and website inc listed
tutoring as one of the top 16 industries worldwide for starting a new business, with a growth rate of 7% in the last year.
With millions of tech-savvy students entering higher education, and
millions more making their way through strained school systems, the demand for individualized instruction is expected to increase for the foreseeable future. Educators, agents and service providers should consider
how they are prepared to service that demand in the years to come.
Does the tutoring industry pay?
Yes. According to The New York Times, tutoring industry in the U.S.
is one industry that seems immune to recession. The growth rate for
spending on tutors is more than 5 percent a year. According the EduVentures, the estimated size of the tutoring industry at $5 billion to
$7billion a year.

STRATEGY & IMPLEMENTATION STRATEGY


SERVICE STRATEGIES
1) HackersTutor App and Website will be heavily marketed via social media channels,
news channel interviews, media articles, and local Elementary School, Middle School,
High School, and College bulletins.
2) HackersTutor will first introduce its compatibility matching service via Assigned Tutoring Model, Choose Your Own Tutor Model, B2B Affiliate Program, and Pop-Up Classes
(Will be its own app subsidiary down the line)
3) HackersTutor will constantly be adding on services that can be sensibly scaled from existing services: Online Tutoring Platform, Social Tutoring Platform, International Tutoring
Platform, Oculus App w/ Virtual Classroom, and Foundation for HackersTutor to Create
Virtual Classrooms aimed towards developing nations.
4) HackersTutors stance and image is bringing life changing education closer to home.

PRICING STRATEGIES

1) Highest Profit Margin is the Assigned Tutoring Model where HackersTutor ensures tutors are following through the recommended curriculum formulated for the student. Tutors used are from $15 - $30 an hour and generally are still in college or recently graduated from college and show aptitude in teaching and following through assigned pre-tailored curriculum,
similar to public school systems. We strive for at least $200.00 / month
profit with this model. Cost to Students may range from $35 / hr to $80 / hr
depending on subject, grade level, and students willingness to cooperate.
We have a minimum of 1.5 hours policy and recommend Students to participate at least 6 hours a week.
2) Lowest Profit Margin will be the Choose Your Own Tutor Model where the
students chooses from exceptionally talented and tenured teachers/
professors and we take a 30 % Booking Fee to the registered Tutors. An example: A tutor that is also a professor or has extensive teaching experience
is charging students at $60 / hr. The student books 4 hours totaling $240 +
$2.50 convenience fee (merchant fee expense). HackersTutor will earn
$72.00 minus the $2.50 convenience fee. For online tutoring, the booking
fee will be 40%.Travel expenses can be coordinated with HackersTutor being a liaison between the Tutors and Students. Tutors are independent contractors, however, encouraged by the students and parents to use HackersTutor Approved Curriculum.

STRATEGY & IMPLEMENTATION STRATEGY


PRICING STRATEGIES

3) The main competition includes Wyzant, Varsity Tutors, and Tutor.com.


The pricing is similar throughout all companies as there is usually a generally accepted rate of tuition with tutors.
4) Key differentiating factors are compatibility matching, truly customized
curriculum matching to the students exact needs, constant communication
with parents with relevant academic progress/information, catered academic news feed with students region, easy communication through email or favorite chatting app.
5) Students/Parents will pay our prices due to the convenience, professionalism, and truly feeling that they are receiving the right education completely
customized to their needs. Furthermore, they have a direct line to management of their assigned area that is knowledgeable in education systems and
competent in the details of most subjects.
6) Credit policies is if there is a no-show, in which the Student/Parent will be
able to reschedule. If the tutoring is not satisfactory and the student is not
benefitting, the Student/Parent will receive their money back with no hassle.
7) Price competition will be encouraged and disseminated amongst
tutor after analyzing sales trends week over week. For example, if
tutoring hours are lowering or traffic is lowering, we will send an automatic message to aspiring tutors to lower their prices temporarily
(Choose Your Own Tutor). For our most common service, Assigned
Tutor Service, our rates are already very competitive and lower than
most brick and mortar academies while delivering a highly catered
education. We cut out all unnecessary expenses and strive on the
completion of our website/app/database to be the backbone of our
whole business cutting out unnecessary staffing expenses.
8) Traditional Brick and Mortar academies have a difficult time really impacting a students test score and overall GPA. The reason is because their business model is completely based on stacking in as many students as possible
while employing 1 teacher. They are hoping to find matching students with a
class so that they can finally see profit once the initial recruiting and retention
expenses becomes a wash. HackersTutor does not believe in this philosophy
as it seems as though flourishing the academys business is at the expense of
a student.

MANAGEMENT SUMMARY
Highlights
1)
2)

3)
4)
5)
6)

Dennis Kim and Jun Jo are entrepreneurs already in the launching phase of their
RTD Herbal Tea company. The combined management experience is about 10
years in running a company or organization.
Currently, the functional areas of the business are Education Director and Business
Development and Sales Director.
The roles are currently being fulfilled Jun Jo and Dennis Kim respectively. Because of the startup nature of HackersTutor, many duties such as CEO, COO, CTO,
CFO are split amongst the two founders, Dennis Kim and Jun Jo.
As Dennis Kim and Jun Jo are co-founders, there is no reporting duties amongst
both of them, however, tutors are reporting directly to both co-founders.
Salary should initially set as $60,000 / yr each with a monthly bonus percentage
based off of net revenue.
As services are rendered through independent contractors, whether online or
physically, there is minimal overhead expenses when it comes to supplies and
no expenses for warehousing.

FINANCIAL PLAN
IMPORTANT ASSUMPTIONS
We assume a strong economy, without major recession
We assume no unforeseen changes in economic policy
The gross margin for every segment will vary as there are a couple of variables:
Teachers hourly rate
Course rate
Negotiation on pricing
The following numbers are fixed and assume the lowest possible margin to know

the minimum ROI:


HT Assigned Tutoring: We assume $50/hr revenue and $25/hr profit
HT Choose Your Own Tutor: We assume $40/hr revenue and $15/hr
profit
HT Affiliate Program: We assume $50/hr revenue and $12.75/hr profit
HT Pop-Up Group Sessions: We assume 10 students per group session, 10
hr course, and $25/hr from every student. We also considered $80/hr for
renting a place.
We assume that students get tutored 12 to 24 hrs on a monthly basis. Ex. If we are
profiting $50,000 a month. $50,000/$50 = 1,000 hours. 1,000/20hr= about 50 students.

FINANCIAL PLAN
FY2016

FY2017

FY2018

Revenue

PROJECTED PROFIT
& LOSS

HT Assigned Tutoring
HT Choose Your Own Tutor
HT B2B Affiliate Program
HT Pop-Up Group Sessions

$175,000
$0
$36,100
$0

$734,000
$83,000
$126,000
$102,000

$1,311,000
$322,000
$251,000
$365,000

Total Revenue

$211,100

$1,045,000

$2,249,000

Direct Costs

$140,963

$478,585

$1,014,200

$70,138
33.2%

$566,415
54.2%

$1,234,800
54.9%

$200,000

$0

$0

$2,000
$2,000

$4,000
$4,000

$8,000
$8,000

$2,000
$5,000
$7,000

$10,000
$16,000
$26,000

$10,000
$20,000
$30,000

$120,000
$0
$0
$0
$120,000

$140,000
$60,000
$0
$45,000
$245,000

$160,000
$60,000
$60,000
$45,000
$325,000

$0
$0
$2,000
$0
$0
$5,000
$2,000

$48,000
$9,600
$3,000
$1,000
$2,000
$10,000
$4,000

$48,000
$7,000
$5,000
$2,000
$2,000
$10,000
$3,000

Total Operating Expenses

$338,000

$344,200

$440,000

Total Expenses

$478,963

$822,785

$1,454,200

($408,825)

($256,370)

($219,400)

$500,000

$800,000

$500,000

$91,175

$543,630

$280,600

Gross Margin
Gross Margin %
Operating Expenses
Research & Development

POS Marketing Costs


Brochures
Total POS Marketing Costs

Advertising
Website/Graphic Design
Online Advertisement
Total Advertising
Office Expenses
Executive Management
Educational Relationship Manager
Marketing Director
Sales Manager
Total Office Expenses

Rent
Utilities
Payroll Taxes, Insurance, etc.
Accounting and Legal Fees
Insurance
Travel
Other (supplies, telcom, misc.)

Total Profit
Non-Operating Income/Loss
Gross Profit- EBITDA

FINANCIAL PLAN
PROJECTED CASH FLOW
FY2016
Beginning Cash Balance

FY2017

FY2018

$0

$232,138

$822,785

$0
$500,000
$211,100

$0
$800,000
$1,045,000

$0
$500,000
$2,249,000

$711,100

$1,845,000

$2,749,000

$140,963
$200,000
$2,000
$2,000
$5,000
$120,000
$0
$0
$0
$0
$0
$2,000
$0
$0
$5,000
$2,000

$478,585
$0
$4,000
$10,000
$16,000
$140,000
$60,000
$0
$45,000
$48,000
$6,000
$3,000
$1,200
$1,000
$8,000
$2,000

$1,014,200
$0
$8,000
$10,000
$20,000
$160,000
$60,000
$60,000
$45,000
$48,000
$7,000
$5,000
$2,000
$2,000
$10,000
$3,000

$478,963

$822,785

$1,454,200

$0

$0

$0

$0

$0

$0

$232,138

$822,785

$1,454,200

Cash Inflows (Income):


Accts. Rec. Collections
Distributed Capital
Sales & Receipts
Total Cash Inflows
Cash Outflows (Expenses):
Teacher Compensation
Research & Development
Brochures
Website/Graphic Design
Online Advertisement
Executive Management
Educational Relationship Manager
Marketing Director
Sales Manager
Rent
Utilities
Payroll Taxes, Insurance, etc.
Accounting and Legal Fees
Insurance
Travel
Other (supplies, telcom, misc.)
Subtotal
Other Cash Out Flows:
Capital Purchases
Owner's Draw
Other:
Subtotal
Total Cash Outflows

PROJECTED PROFIT & LOSS YEAR 1 (Monthly Detailed)


Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Revenue
HT Assigned Tutoring
HT Choose Your Own Tutor
B2B Affiliate Program
Pop-Up Group Sessions

$6,000
$0
$0
$0

$7,000
$0
$0
$0

$7,800
$0
$0
$0

$7,800
$0
$2,000
$0

$9,000
$0
$2,500
$0

$9,800
$0
$2,500
$0

$10,600
$0
$3,000
$0

$14,000
$0
$3,800
$0

$19,000
$0
$4,600
$0

$24,000
$0
$5,400
$0

$28,000
$0
$5,900
$0

$32,000
$0
$6,400
$0

$175,000
$0
$36,100
$0

Revenue

$6,000

$7,000

$7,800

$9,800

$11,500

$12,300

$13,600

$17,800

$23,600

$29,400

$33,900

$38,400

$211,100

Direct Costs

$3,750

$4,375

$4,875

$6,625

$7,813

$8,313

$9,250

$12,075

$15,900

$19,725

$22,663

$25,600

$140,963

Gross Margin
Gross Margin %

$2,250
37.5%

$2,625
37.5%

$2,925
37.5%

$3,175
32.4%

$3,688
32.1%

$3,988
32.4%

$4,350
32.0%

$5,725
32.2%

$7,700
32.6%

$9,675
32.9%

$11,238
33.1%

$12,800
33.3%

$70,138

$200,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$200,000

$0
$0

$2,000
$2,000

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$2,000
$2,000

$2,000
$417
$2,417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$0
$417
$417

$2,000
$5,000
$7,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$10,000
$0
$0
$0
$10,000

$120,000
$0
$0
$0
$120,000

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$167
$0
$0
$417
$167

$0
$0
$2,000
$0
$0
$5,000
$2,000

$213,167

$13,167

$11,167

$11,167

$11,167

$11,167

$11,167

$11,167

$11,167

$11,167

$11,167

$11,167

$338,000

$216,917

$17,542

$16,042

$17,792

$18,979

$19,479

$20,417

$23,242

$27,067

$30,892

$33,829

$36,767

$478,963

Total Profit

($214,667)

($14,917)

($13,117)

($14,617)

($15,292)

($15,492)

($16,067)

($17,517)

($19,367)

($21,217)

($22,592)

($23,967)

($408,825)

Non Operating Income/Loss

$500,000

Operating Expenses
Research & Development
POS Marketing Costs
Brochures
Total POS Marketing Costs
Advertising
Website/Graphic Design
Online Advertisement
Total Advertising
Office Expenses
Executive Management
Educational Relationship Manager
Marketing Director
Sales Manager
Total Office Expenses
Rent
Utilities
Payroll Taxes, Insurance, etc.
Accounting and Legal Fees
Insurance
Travel
Other (supplies, telcom, misc.)

Total Expenses

Gross Profit- EBITDA

$285,333

$500,000

($14,917)

($13,117)

($14,617)

($15,292)

($15,492)

($16,067)

($17,517)

($19,367)

($21,217)

($22,592)

($23,967)

$91,175

PROJECTED PROFIT & LOSS YEAR 2 (Monthly Detailed)


Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Revenue
HT Assigned Tutoring

$36,000

$40,000

$44,000

$50,000

HT Choose Your Own Tutor

$3,000
$8,000
$0

$4,000
$8,500
$0

$4,500
$9,000
$1,000

$5,000
$9,500
$1,000

$6,000
$10,000
$20,000

$6,500
$10,500
$20,000

$47,000

$52,500

$58,500

$65,500

$92,000

$21,125

$23,625

$26,418

$29,730

$25,875
55.1%

$28,875
55.0%

$32,083
54.8%

$0

$0

$0
$0

Advertising
Website/Graphic Design
Online Advertisement
Total Advertising
Office Expenses
Executive Management
Educational Relationship Manager
Marketing Director
Sales Manager
Total Office Expenses

B2B Affiliate Program


Pop-Up Group Sessions
Total Revenue
Direct Costs
Gross Margin
Gross Margin %
Operating Expenses
Research & Development
POS Marketing Costs
Brochures
Total POS Marketing Costs

Rent
Utilities
Payroll Taxes, Insurance, etc.
Accounting and Legal Fees
Insurance
Travel
Other (supplies, telcom, misc.)

Total Expenses
Total Profit
Non Operating Income/Loss
Gross Profit- EBITDA

$56,000

$60,000

$63,000

$66,000

$70,000

$77,000

$84,000

$88,000

$734,000

$7,000
$11,000
$20,000

$8,000
$11,500
$20,000

$9,000
$12,000
$5,000

$9,500
$12,000
$5,000

$10,000
$12,000
$5,000

$10,500
$12,000
$5,000

$83,000
$126,000
$102,000

$97,000

$101,000

$105,500

$96,000

$103,500

$111,000

$115,500

$1,045,000

$42,350

$44,663

$46,475

$48,475

$43,775

$47,463

$51,150

$53,338

$478,585

$35,770
54.6%

$49,650
54.0%

$52,338
54.0%

$54,525
54.0%

$57,025
54.1%

$52,225
54.4%

$56,038
54.1%

$59,850
53.9%

$62,163
53.8%

$566,415

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$4,000
$4,000

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$4,000
$4,000

$10,000
$1,333
$11,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$0
$1,333
$1,333

$10,000
$16,000
$26,000

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$11,667
$5,000
$0
$3,750
$20,417

$140,000
$60,000
$0
$45,000
$245,000

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$4,000
$500
$250
$100
$83
$667
$167

$48,000
$6,000
$3,000
$1,200
$1,000
$8,000
$2,000

$37,517

$31,517

$27,517

$27,517

$27,517

$27,517

$27,517

$27,517

$27,517

$27,517

$27,517

$27,517

$344,200

$58,642

$55,142

$53,934

$57,247

$69,867

$72,179

$73,992

$75,992

$71,292

$74,979

$78,667

$80,854

$822,785

($32,767)

($26,267)

($21,852)

($21,477)

($20,217)

($19,842)

($19,467)

($18,967)

($19,067)

($18,942)

($18,817)

($18,692)

($256,370)
$800,000

$800,000
$767,233

($26,267)

($21,852)

($21,477)

($20,217)

($19,842)

($19,467)

($18,967)

($19,067)

($18,942)

($18,817)

($18,692)

$543,630

PROJECTED PROFIT & LOSS YEAR 3 (Monthly Detailed)


Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Revenue
HT Assigned Tutoring
HT Choose Your Own Tutor
B2B Affiliate Program
Pop-Up Group Sessions/VR

$1,311,000
$322,000
$251,000
$365,000

$90,000
$15,000
$12,000
$5,000

$94,000
$17,000
$12,000
$5,000

$98,000
$20,000
$14,000
$5,000

$100,000
$22,000
$16,000
$5,000

$103,000
$24,000
$18,000
$10,000

$106,000
$26,000
$20,000
$90,000

$110,000
$28,000
$22,000
$70,000

$114,000
$30,000
$24,000
$75,000

$118,000
$32,000
$26,000
$40,000

$122,000
$34,000
$29,000
$20,000

$126,000
$36,000
$29,000
$20,000

$130,000
$38,000
$29,000
$20,000

$122,000

$128,000

$137,000

$143,000

$155,000

$242,000

$230,000

$243,000

$216,000

$205,000

$211,000

$217,000 $2,249,000

Direct Costs

$56,025

$58,775

$62,400

$64,650

$69,800

$110,950

$104,600

$110,250

$96,700

$90,600

$93,350

$96,100

$1,014,200

Gross Margin
Gross Margin %
Operating Expenses
Research & Development

$65,975
54.1%

$69,225
54.1%

$74,600
54.5%

$78,350
54.8%

$85,200
55.0%

$131,050
54.2%

$125,400
54.5%

$132,750
54.6%

$119,300
55.2%

$114,400
55.8%

$117,650
55.8%

$120,900
55.7%

$1,234,800

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$0

$8,000
$8,000

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$8,000
$8,000

Advertising
Website/Graphic Design
Online Advertisement
Total Advertising

$10,000
$1,667
$11,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$0
$1,667
$1,667

$10,000
$20,000
$30,000

Office Expenses
Executive Management
Educational Relationship
Manager
Marketing Director
Sales Manager
Total Office Expenses

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$13,333
$5,000
$5,000
$3,750
$27,083

$160,000
$60,000
$60,000
$45,000
$325,000

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$4,000
$583
$417
$167
$167
$833
$250

$48,000
$7,000
$5,000
$2,000
$2,000
$10,000
$3,000

$45,167

$43,167

$35,167

$35,167

$35,167

$35,167

$35,167

$35,167

$35,167

$35,167

$35,167

$35,167

$440,000

Total Expenses

$101,192

$101,942

$97,567

$99,817

$104,967

$146,117

$139,767

$145,417

$131,867

$125,767

$128,517

$131,267

$1,454,200

Total Profit

($35,217)

($32,717)

($22,967)

($21,467)

($19,767)

($15,067)

($14,367)

($12,667)

($12,567)

($11,367)

($10,867)

($10,367)

($219,400)

Total Revenue

POS Marketing Costs


Brochures
Total POS Marketing Costs

Rent
Utilities
Payroll Taxes, Insurance, etc.
Accounting and Legal Fees
Insurance
Travel
Other (supplies, telcom, misc.)

Non Operating Income/Loss

$500,000

Gross Profit- EBITDA

$464,783

$500,000
($32,717)

($22,967)

($21,467)

($19,767)

($15,067)

($14,367)

($12,667)

($12,567)

($11,367)

($10,867)

($10,367)

$280,600

CASH FLOW Year 1 (Monthly Detailed)


Month 1
Beginning Cash Balance
Cash Inflows (Income):
Accts. Rec. Collections
Distributed Capital
Sales & Receipts

$0

Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$289,083
$278,542
$270,300
$262,308
$254,829
$247,650
$240,833
$235,392
$231,925
$230,433
$230,504

$0
$500,000
$6,000

$0
$0
$7,000

$0
$0
$7,800

$0
$0
$9,800

$0
$0
$11,500

$0
$0
$12,300

$0
$0
$13,600

$0
$0
$17,800

$0
$0
$23,600

$0
$0
$29,400

$0
$0
$33,900

$0
$0
$38,400

$0
$500,000
$211,100

$506,000
$506,000

$7,000
$296,083

$7,800
$286,342

$9,800
$280,100

$11,500
$273,808

$12,300
$267,129

$13,600
$261,250

$17,800
$258,633

$23,600
$258,992

$29,400
$261,325

$33,900
$264,333

$38,400
$268,904

$711,100

Available Cash Balance


Cash Outflows (Expenses):
Teacher Compensation
Research & Development
Brochures
Website/Graphic Design
Online Advertisement
Executive Management

$3,750
$200,000
$0
$2,000
$417
$10,000

$4,375
$0
$2,000
$0
$417
$10,000

$4,875
$0
$0
$0
$417
$10,000

$6,625
$0
$0
$0
$417
$10,000

$7,813
$0
$0
$0
$417
$10,000

$8,313
$0
$0
$0
$417
$10,000

$9,250
$0
$0
$0
$417
$10,000

$12,075
$0
$0
$0
$417
$10,000

$15,900
$0
$0
$0
$417
$10,000

$19,725
$0
$0
$0
$417
$10,000

$22,663
$0
$0
$0
$417
$10,000

$25,600
$0
$0
$0
$417
$10,000

$140,963
$200,000
$2,000
$2,000
$5,000
$120,000

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$167
$0
$0
$417
$167

$0
$0
$0
$0
$0
$2,000
$0
$0
$5,000
$2,000

$216,917

$17,542

$16,042

$17,792

$18,979

$19,479

$20,417

$23,242

$27,067

$30,892

$33,829

$36,767

$478,963

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$216,917
$289,083

$0
$17,542
$278,542

$0
$16,042
$270,300

$0
$17,792
$262,308

$0
$18,979
$254,829

$0
$19,479
$247,650

$0
$20,417
$240,833

$0
$23,242
$235,392

$0
$27,067
$231,925

$0
$30,892
$230,433

$0
$33,829
$230,504

$0
$36,767
$232,138

$0
$478,963

Total Cash Inflows

Educational Relationship
Manager
Marketing Director
Sales Manager
Rent
Utilities
Payroll Taxes, Insurance, etc.
Accounting and Legal Fees
Insurance
Travel
Other (supplies, telcom, misc.)
Subtotal
Other Cash Out Flows:
Capital Purchases
Owner's Draw
Other:
Subtotal
Total Cash Outflows

CASH FLOW YEAR 2 (Monthly Detailed)


Beginning Cash Balance
Cash Inflows (Income):
Accts. Rec. Collections
Distributed Capital
Sales & Receipts
Total Cash Inflows
Available Cash Balance
Cash Outflows (Expenses):
Teacher Compensation
Research & Development
Brochures
Website/Graphic Design
Online Advertisement
Executive Management
Educational Relationship
Manager
Marketing Director
Sales Manager
Rent
Utilities
Payroll Taxes, Insurance,
etc.
Accounting and Legal
Fees
Insurance
Travel
Other (supplies, telcom,
misc.)
Subtotal
Other Cash Out Flows:
Capital Purchases
Owner's Draw
Other:
Subtotal
Total Cash Outflows

Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$232,138
$1,020,496
$1,017,854
$1,022,420
$1,030,673
$1,052,807
$1,077,628
$1,104,636
$1,134,144
$1,158,853
$1,187,373
$1,219,707
$0
$800,000
$47,000

$0
$0
$52,500

$0
$0
$58,500

$0
$0
$65,500

$0
$0
$92,000

$0
$0
$97,000

$0
$0
$101,000

$0
$0
$105,500

$0
$0
$96,000

$0
$0
$103,500

$0
$0
$111,000

$0
$0
$115,500

$0
$800,000
$1,045,000

$847,000
$1,079,138

$52,500
$1,072,996

$58,500
$1,076,354

$65,500
$1,087,920

$92,000
$1,122,673

$97,000
$1,149,807

$101,000
$1,178,628

$105,500
$1,210,136

$96,000
$1,230,144

$103,500
$1,262,353

$111,000
$1,298,373

$115,500
$1,335,207

$1,845,000

$21,125

$23,625

$26,418

$29,730

$42,350

$44,663

$46,475

$48,475

$43,775

$47,463

$51,150

$53,338

$478,585

$0
$0

$0
$4,000

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$4,000

$10,000
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$0
$1,333
$11,667

$10,000
$16,000
$140,000

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$5,000
$0
$3,750
$4,000
$500

$60,000
$0
$45,000
$48,000
$6,000

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$3,000

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$100
$83
$667

$1,200
$1,000
$8,000

$167

$167

$167

$167

$167

$167

$167

$167

$167

$167

$167

$167

$2,000

$58,642

$55,142

$53,934

$57,247

$69,867

$72,179

$73,992

$75,992

$71,292

$74,979

$78,667

$80,854

$822,785

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$58,642

$0
$55,142

$0
$53,934

$0
$57,247

$0
$69,867

$0
$72,179

$0
$73,992

$0
$75,992

$0
$71,292

$0
$74,979

$0
$78,667

$0
$80,854

$0
$822,785

$1,020,496

$1,017,854

$1,022,420

$1,030,673

$1,052,807

$1,077,628

$1,104,636

$1,134,144

$1,158,853

$1,187,373

$1,219,707

$1,254,353

CASH FLOW Year 3 (Monthly Detailed)


Month 1

Beginning Cash Balance


Cash Inflows (Income):
Accts. Rec. Collections
Distributed Capital
Sales & Receipts
Total Cash Inflows
Available Cash Balance
Cash Outflows (Expenses):
Teacher Compensation
Research & Development
Brochures
Website/Graphic Design
Online Advertisement
Executive Management
Educational Relationship
Manager
Marketing Director
Sales Manager
Rent
Utilities
Payroll Taxes, Insurance, etc.
Accounting and Legal Fees
Insurance
Travel
Other (supplies, telcom,
misc.)
Subtotal
Other Cash Out Flows:
Capital Purchases
Owner's Draw
Other:
Subtotal
Total Cash Outflows

Month 4

Month 5

Month 6

$1,254,353

Month 2
$1,775,161

Month 3
$1,801,219

$1,840,653

$1,883,836

$1,933,869

Month 7
$2,029,753

Month 8
$2,119,986

Month 9
$2,217,569

Month 10
$2,301,703

Month 11
$2,380,936

Month 12
$2,463,419

$0
$500,000
$122,000

$0
$0
$128,000

$0
$0
$137,000

$0
$0
$143,000

$0
$0
$155,000

$0
$0
$242,000

$0
$0
$230,000

$0
$0
$243,000

$0
$0
$216,000

$0
$0
$205,000

$0
$0
$211,000

$0
$0
$217,000

$0
$500,000
$2,249,000

$622,000
$1,876,353

$128,000
$1,903,161

$137,000
$1,938,219

$143,000
$1,983,653

$155,000
$2,038,836

$242,000
$2,175,869

$230,000
$2,259,753

$243,000
$2,362,986

$216,000
$2,433,569

$205,000
$2,506,703

$211,000
$2,591,936

$217,000
$2,680,419

$2,749,000

$56,025

$58,775

$62,400

$64,650

$69,800

$110,950

$104,600

$110,250

$96,700

$90,600

$93,350

$96,100

$1,014,200

$0
$0
$10,000
$1,667
$13,333

$0
$8,000
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$0
$0
$1,667
$13,333

$0
$8,000
$10,000
$20,000
$160,000

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$5,000
$5,000
$3,750
$4,000
$583

$60,000
$60,000
$45,000
$48,000
$7,000

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$417
$167
$167
$833

$5,000
$2,000
$2,000
$10,000

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$3,000

$101,192

$101,942

$97,567

$99,817

$104,967

$146,117

$139,767

$145,417

$131,867

$125,767

$128,517

$131,267

$1,454,200

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$101,192

$0
$101,942

$0
$97,567

$0
$99,817

$0
$104,967

$0
$146,117

$0
$139,767

$0
$145,417

$0
$131,867

$0
$125,767

$0
$128,517

$0
$131,267

$0
$1,454,200

$1,775,161

$1,801,219

$1,840,653

$1,883,836

$1,933,869

$2,029,753

$2,119,986

$2,217,569

$2,301,703

$2,380,936

$2,463,419

$2,549,153