Business plan for Australia - Management Institute of Training

Goals

Short term goals	Target date
Purchase latest equipments of training	4 months
Provide training to 100 students	3 months
Provide specialised programs to 50 employees	3 months
Growing social media presence	2 months
Promote an event	1 month
Hashtag marketing to engage with targeted audience	2 months
Enhance brand awareness	3 months
Increase student access	6 months

 

Long term goals	Target date
Build and nurture customer relationship	2 years
Develop a perfect team of trainers and staff members to cater changing needs of students	2 years
Collaborate with team to brainstorm new ideas	1 year
Attract and Retain talented workforce	1 year
Increase profitability ratio	3 years
Increase scope to include cross country	2 years
Access state and EMA funding	3 years

Products or services

• Individual support
• Security operations
• Security and risk management
• Diploma in early Childhood and Education care
• 70+ short courses which are focused on developing personal skills, leadership and management
• 80+ courses including Human resource, Professional Development, Sales and Marketing

Intellectual property (IP)

At law, Aust-Management Institute of Training (AMIT) owns all intellectual property which is created by trainers in the course of their duties. It includes course/teaching materials, computer work, research design and outcomes, administrative materials, creative or scholarly work, presentation slides, teaching aids and more. In addition to this, materials which are protected under the Copyright Act 1968, includes:

• written works such as books, editions, articles, newspaper articles, training procedures, reports, compilations expressed in words
• Work created, produced or written by trainers for the purpose of subject delivery
• artistic works including graphics, sculptures, drawings, cartoons, photographs, buildings or models of buildings
• computer programs meaning the written expression of a computer program
• films including advertisements, documentaries and other digital recordings
• sound recordings
• compilations (e.g. broadcasts of television and radio programs including Podcasts).

Locations and outlets

Aust-Management Institute of Training (AMIT), is going to launch its business nearby Pacific Highway of North Sydney in Australia. Students hereby, can enjoy a world-class study experience at the city-side locations of North Sydney, Crows Nest and St Leonards. This location is perfect to attract both domestic and international students as it comes at walk-able distance from their colleges. Along with this, various training institutes are already established here, therefore, providing training with latest technology, highly specialised equipment and with experienced trainers, is enough to gain competition from over them.

Also Read: 

• Developing Individual, Teams and Organisation
• Project Management High Tech Skills An Organization

3. Business strategy

Tactics

To provide quality, relevant and professional training, management of Aust-Management Training Institute will implement following main techniques:

• Consider Key timings: Despite of budget, managers will set aside time for some critical components to work on developing marketing strategy. This would help in generate demand which leads to fill such spaces.
• Use social media: For bringing awareness among students, it is essential to make strong social media presence within various platform of social media. Therefore, managers will develop sites on Facebook pages, Instagram, Tumbler, Twitter and more.
• Implement multi-channel approach: Develop effective product portfolio and featured it on digital, email and social communication which give out at events.
• Become a 'Page one' search result on Google: In order to become first choice of learners and parents, it is essential to be at top most result when they are searching best training centre on google sites.

Resources required to implement above strategies:

• office for operating business and pays for the hire of venues in advance
• phones, faxes and office equipment
• hire staff members who are experts in technical, management and search engine marketing
• Adequate amount of finance and talent

Aust-Management Institute of Training has paid for 2019-2020 operating year:

• workers’ compensation
• insurance – public liability and professional indemnity
• 5 year building on lease in advance
• accountant’s fees

Strategic impact

Since business strategy is not about short-term or long-term goal. It includes addressing those matters which develop innovation in business. Therefore, to create strategic impact, managers of Aust-Management Institute of Training need to build strong presence on social media platform. They will also look for developing stronger product innovation to drive success in business. For this purpose, they will bring latest equipments and hire talented trainers to give best training classes to vocational students.  

E-commerce and technology

In order to enhance business and make it strong presence on social sites, paid traffic is the best way for quickly generating sales for e-commerce store. It is quite affordable and take business to next level by giving advantage to win competition. Thus, by making investment on such e-commerce strategy, aid AIMT in driving traffic as well as closely monitoring the metrics for determining which ads and campaigns can bring desirable result.

Core values

• Provide vocational courses which respond to cater needs of both national and overseas students
• Ability to offer value for money
• Long-term planning and daily attention
• Ability to create strategic partnership among managers and different stakeholders
• Ability to anticipate changing demand of students

Credibility and risk reduction

To improve bottom line of business, managers of Aust-Management Institute of Training will address some important key areas. It includes determining competitive advantages; build credibility, providing a great service standard; developing strategic alliances and a long-term strategic vision to reduce risk. Here, to increase credibility and reduce risk, it is better to offer guarantees, collect feedback of students and services should be provided in extremely efficient manner.

4. My team

Management structure

Management Structure of Aust-Management Institute of Training is basically divided into three main sectors- Marketing, sales and services. Here, role of marketing managers is to create awareness among targeted audience about its services and business value. While, sales managers’ responsibility is to influence more vocational students to take training by its expert team. Along with this, service managers is to give instruction to trainers to cater needs of students as per their demand.

Current team

Name	Mr. Aurbindo Austin
Position	CEO
Qualifications	MBA
Expertise	Accountant
Track record	Effective communicator and ability to work under high pressure

 

Name	Mr. Anshuman Corvallis
Position	Training & quality manager
Qualifications	MBA in HR, IT & Computer studies
Expertise	IT and management
Track record	Problem solving and negotiation skills

 

Name	Ms. Shrin Hastana
Position	Instructional Coordinator
Qualifications	MBA
Expertise	Management
Track record	Good planning skills

Retention and recruitment policies

For hiring trainers and other staff members, HR managers of AMIT institute use online recruitment techniques (online). Here, they prepare proper documentations like job description, vacancy for different post, roles and responsibilities, selection criteria (interview and practical procedure), etc. Further, to get staff retention, smart strategies will be adopted. It includes pro-longed, multi-pronged and sustained by giving priority to complete needs of workers first then customers.

Mentors and business support

Aust- Management Institute of Training majorly rely on key business partners and software like Microsoft and SAP to maintain intellectual properties and copyrights.

5. SWOT and critical success factors

Strengths	I will maximise them by:
· Face to face training · Flexible learning · Large existing knowledge base · Expertise of executives and trainers	Offering a range of more learning options and retain talented staff members. It will also create value for money
Weaknesses	I will maximise them by:
· Inability to have a consistent team approach · Shortage of resources to complete short term goals · Lack of project delivery focus from executives	To cope up from weaknesses, funds will be raised by making attractive projects to gain interest of shareholders. Along with this, adopt effective approach to make consistent team
Opportunities	I will maximise them by:
· Capitalising on national certification to offer more courses · Offer standards for performance or risk to the industry · Create a forum for various things like risk, training and safety · Increase demand of vocational training by overseas and domestic students  Â	Will develop franchisee to maximise revenue in order to offer better quality of services and a range of vocational training
Threats	I will maximise them by:
· Intense competition or presence of training organisations   · Changing demand of learners · Integration of various compliances	Develop innovative strategies to provide a range of services through different options and increase abilities to anticipate changing demand of learners

SWOT summary

AMIT (Aust-Management Institute of Training) offers a range of courses, ancillary services and programs, which are primarily focuses on developing personal and professional skills. Through face to face training, it provides the professional edge to learners in an increasingly competitive landscape. Similarly, online learning provides flexibility to distant learners to develop their competency through online courses. Due to shortage of resources and funds, respective company may fail to provide training in desired manner to targeted customers. But there are various opportunities available which aid management to enhance customer base. In addition to this, due to intense competition in training sector, it also needs to develop creative strategies also, to attract more customers.

Chosen strategy

To enhance business strengths and gain market opportunity, managers of AMIT Institute always monitor competitive pressures and make adjustment in business strategies accordingly. For this purpose, they mainly used strategic communications, which helps in developing techniques as per changes in demand of customers.

Critical success factors

Making investment in increasing credibility, reducing risk and paid traffic, helps AIMT Institute in developing a strong presence in social media. Along with this, offering more than 80 kinds of training give opportunity to enhance customer base within a year most easily

6. Market research

Primary market research

In order to generate new ideas for giving innovative and highly demanded vocational and management training, a primary research is conducted by management of Aust-Management Institute of Training on students. Here, a sample of 50 students of both national and overseas areas are chosen and take their feedbacks by questionnaire methods. Here, questions are based to analyse how much fees they can pay for getting a particular training in a set-period of time.

Secondary market research

Secondary research is also done by AMIT to gather relevant information from Statistics on demographical basis. Here, through statistical figures and government census report, management of respective institute can analyse profitability ration of other competitors. Along with this, secondary research also give opportunity to analyse competitor's strategy for enhancing their customer base. This would help in developing better strategies to snatch position of established companies and get competitive advantage over them.

7. Market analysis

Market opportunity

Aust-Management Institute of Training (AMIT) establish their business in remote areas where they are easily gain attention of large number of students who are interested in developing their learning skills. For this, they are acquire high income and revenue.

Market structure

Supply chain market structure is followed by training institute which are perfectly fits in the business operations and its functions.

Market size and outlook

In the large marketplace, training institute are capture large number of students who are willing to enhance their knowledge and learning skills. The market outlook are based on past performance, students demand and requirements and opinions of them.

Future markets

For future time period, they are develop attractive website which gain attention of large number of students and also they are provide appropriate training session through which they are easily get desired job.  

Local

Market structure

In local areas, they are open small training institute branches where they are gain attention of more students.

Size and outlook

The market size of Aust-Management Institute of Training (AMIT) is small where very few students are come for attending training sessions.

National

Market structure

At national level, market structure is seen as there are large number of students who are interested to learn new skills and knowledge. So AMIT provide online learning which is flexibility to distant learners to develop their competency through online courses.

Size and outlook

The market size is medium where they are only acquire domestic students.

International

Market structure

In international level, market structure is acquire large number of students from across the boundaries. For this, they are easily develop their knowledge and skills in better manner.

Size and outlook

AMIT provide training sessions to the students of domestic as well as international level and they are gain knowledge through online service and other facilities.

Target market

Target market description

Aust-Management Institute of Training (AMIT) target whole areas where large number of colleges and institutes are established. The potential value of the market is high where they are gain attention of large number of students.

Factors influencing purchasing habits

• 70+ short courses which are focused on developing personal skills, leadership and management.
• 80+ courses including Human resource, Professional Development, Sales and Marketing.

How your business will meet the market’s requirements

By conducting appropriate training sessions, students can gain knowledge and skills for their future requirements. Aust-Management Institute of Training (AMIT) is the institute where students are acquire potential knowledge which are helpful in reaching with desired requirements and needs.

8. Competitor analysis

APM Training Institute Pty,Ltd. (First main competitor)

There is an intense competition in training sector in Australia due to increase in demand of vocational training by both national and overseas students. In this regard, the main organisation which may become threat for Aust-Management Institute of Training is APM Training Institute Pty,Ltd. It mainly offers tourism and hospitality training services, management education and marketing etc.  

 

Strengths	Weaknesses
The main strength of APM Institute is its swift and flexible face-to-face customer service. Along with this, training staff has more than ten years of experience which give a competitive advantage to APM Institute.	Less specialised in certain fields like personal and professional development, seismic design and more. It also has inadequate technical supporting staff.

Strategy

In order to beat strength of APM Institute and gain competitive advantages, AMIT will provide training in more than 80+ field of education. It mainly emphasised on developing skills and knowledge of trainees to enable them to work in large and international organisation. Along with this, it provides online training also to distance learning students which provide them flexibility to become expert by get online training by its expert trainers.

Safety Corp. (Second key competitor)

Strengths	Weaknesses
This institute has well qualified faculty and strong Alumni and positive reviews of customers, helps in revenue generation year by year.	Less publication and presence on social sites as well as exposure of information before announcement

Strategy:

To get edge over competition from Safety Corp., AMIT will make more investment on increasing traffic and credibility of business. This would make first choice of targeted audience when they search best training institute on Google.  

9. Financial plan

Aust-Management Institute of Training (AMIT) is financially secure to meet monthly obligations including:

• all equipment required for the continued operation of the business is wholly owned.
• fees are paid by customers either wholly or partially of complete course
• Major expansion needs finance, therefore, it is not considered necessary at initial stage.
• Equipment replacement is factored into business running costs

 Proposed/Budgeted Plan

Â
Â	2019	2020	2021	2022
Customers	22000	25000	28000	30000
Rate	13.18	12.82	13.73	16.02
Revenue	290000	320450	384540	480675
Â	Â	Â	Â	Â
Less: Expenses	Â	Â	Â	Â
Advertising	2500	2780	3336	4144
Accounting, Legal	2100	2320	2784	3480
Depreciation	5200	5746	6890	8612.5
Interest Expense	4400	4862	5830	7287.5
Sales Promotion Expenses	15000	16575	19890	24860
Payroll	60000	66300	79560	99450
Rent	22000	24310	29172	36465
Utility Expenses	15000	16575	19890	24860
Commission	6000	6630	7956	9945
Taxes	17000	18785	22542	28170
Total Expenses	149200	164883	197850	247274
Expense Per Customer	6.78	6.60	7.07	8.24
Contribution	6.4	6.22	6.67	7.78
Less:Fixed Expenses	Â	Â	Â	Â
Fixed Marketing Expenses	25000	25000	25000	25000
Fixed Administrative Expenses	35000	35000	35000	35000
Total Fixed Expenses	60000	60000	60000	60000
Â	Â	Â	Â	Â
Net Profit	80800	95567	126690	17340
Â	Â	Â	Â	Â
Break Even Point (Fixed Cost/ Contribution)	9375	9642	8999	771
Â	Â	Â	Â	Â
Investment (Cost)	209200	224883	257850	30727
Â	Â	Â	Â	Â
ROI [Investment(cost)/ Net Profit]	38.62	42.50	49.13	56.43

Start-up costs

To launch business, owners of AIMT will introduce cost near about $500,000.

Funding

As AIMT is a technology driven business, therefore, to raise funds owners will use take loans from commercial banks.

Profit and loss forecast

Â	First Year	Second Year	Third Year	Fourth Year
Estimated Sales	290000	320450	384540	480675
Estimated Cost	209200	224883	257850	307274
Estimated Profit/Loss	80800	95567	126690	173401

 Cash flow forecast

Particulars	2019	2020	2021	2022
Cash flows from operating activities	Â	Â	Â	Â
Cash receipts from customers	41460.65	37691.5	34,265.00	31,218.00
Cash paid to suppliers and employees	-38851.89	-35319.9	 (32,109.00)	 (30,756.00)
Cash generated from operations	2608.76	2371.6	2,156.00	462.00
Interest paid	-359.37	-326.7	 (297.00)	 (336.00)
Income taxes paid	-399.3	-363	 (330.00)	 (54.00)
Dividends paid	-266.2	-242	 (220.00)	 -
Net cash from operating activities	1583.89	1439.9	1,309.00	72.00
Â	Â	Â	Â	Â
Cash flows from investing activities	Â	Â	Â	Â
Business acquisitions, net of cash acquired	-732.05	-665.5	 (605.00)	 -
Purchase of property, plant and equipment	-465.85	-423.5	 (385.00)	 (240.00)
Proceeds from sale of equipment	93.17	84.7	77.00	 -
Acquisition of portfolio investments	Â	Â	 -	 (600.00)
Investment income	532.4	484	440.00	420.00
Net cash used in investing activities	-572.33	-520.3	 (473.00)	 (420.00
Â	Â	Â	Â	Â
Cash flows from financing activities	Â	Â	Â	Â
Proceeds from issue of share capital	332.75	302.5	275.00	 -
Proceeds from long-term borrowings	332.75	302.5	275.00	240.00
Payment of long-term borrowings	-252.89	-229.9	 (209.00)	 (84.00)
Net cash used in financing activities	412.61	375.1	341.00	156.00
Â	Â	Â	Â	Â
Net increase in cash and cash equivalents	1424.17	1294.7	1,177.00	 (192.00)
Â	Â	Â	Â	Â
Cash and cash equivalents at beginning of period	212.96	193.6	176.00	384.00
Â	Â	Â	Â	Â
Cash and cash equivalents at end of period	1637.13	1488.3	1,353.00	192.00
Â	Â	Â	Â	Â
Notes to the Statement of Cash Flows	Â	Â	Â	Â
Cash flows from operating activities	Â	Â	Â	Â
Profit before taxation	5789.85	5263.5	4,785.00	1,476.00
Adjustments for:	Â	Â	 -	 -
Depreciation	598.95	544.5	495.00	312.00
Investment income	-665.5	-605	 (550.00)	 (420.00)
Interest expense	532.4	484	440.00	360.00
Profit / (Loss) on the sale of property, plant & equipment	-66.55	-60.5	 (55.00)	 -

 

Notes to the Statement of Cash Flows	Â	Â	Â	Â
Cash flows from operating activities	Â	Â	Â	Â
Profit before taxation	5789.85	5263.5	4,785.00	1,476.00
Adjustments for:	Â	Â	 -	 -
Depreciation	598.95	544.5	495.00	312.00
Investment income	665.5	605	550	420
Interest expense	532.4	484	440.00	360.00
Profit / (Loss) on the sale of property, plant & equipment	66.55	60.5	55	 -

10. Marketing strategy

For product designing and pricing, sales and advertising, market business as per targeted audience, managers of AMIT adopt the concept of 4P's of marketing mix strategies, as given below:

• Product –AMIT offers more than 70 short courses and 80 academic courses to build experts and caters the needs of vocational learners.
• Price –It mostly create value of money therefore, offer training on premium price where, customers can paid fees either fully or in instalments.
• Place –To make sure offerings are sold at right place and time to meet target market, AMIT launch its first institute in Pacific Highway, North Sydney. It is surrounded by various colleges therefore, access to students more easily.
• Promotion –To enhance customer base and maximise sales, this institute focuses more on developing strong presence on social sites and promote business over there.

Launch budget

To launch business, owners of AIMT will introduce cost near about $500,000 where $25000 are fixed for marketing expenses, $15000 for sales promotion and $2000 for advertisements, in first accounting year.

Marketing budget

$5 million	7-8% in sales and activities
$2 to $3 million	Basic initiation model
$1 million	Staffing and structure of marketing campaign

 11. Compliance

Legal and regulatory considerations

Sole trader

• Applied for an Australian Business Number (ABN) – if applicable.
• Registered business name – if applicable.
• Registered for GST – if applicable.
• Registered for PAYG withholding – if applicable.
• Register your domain name – if doing business online.
• Trademarked my business name and brand.
• Applied for the required licenses and permits.

Insurance

To mitigating the risks, AMIT Institute will make insurance plan accordingly as public liability and professional indemnity

12. Assets

Business premises

Take a building on lease in Pacific Highway to operate business. AMIT Institute also pays for the hire of venues in advance for next five years.

IT

Requirements

To develop strong online presence on social media sites and Google, it is essential to AMIT Institute to have a adequate number of websites. This would help in promoting products and services in targeted market more easily. Along with this, to secure training techniques, notes for deliverables and more, this institute has taken patents rights of business ideas and these things.

Solutions

To reduce risk and uncertainty, AMIT Institute has compliance business with all essential regulatory laws and install safety equipments at premises also.

Equipment

Requirements

Tech-labs, anatomy models, automotive technology & collision repair, CNC/Robotics, Green Energy: Solar, Wind & Green Technology, e-Learning programs, Marcraft Educational System, Cloud Technology and more, are some essential equipment of latest versions, installed in business premises for providing best training to students.

Solutions

Hire highly expert members in IT department who will take responsibility to manage and maintain expensive equipments in appropriate manner.