SMEDA Britannia Resource Centre (UK Franchise, A Life Time Business Opportunity)

8/6/2019 SMEDA Britannia Resource Centre (UK Franchise, A Life Time Business Opportunity)

http://slidepdf.com/reader/full/smeda-britannia-resource-centre-uk-franchise-a-life-time-business-opportunity 1/29

Pre-Feasibility Study

Britannia Resource Centre

(December 2005)



Pre-feasibility Study Britannia Resource Centre

DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject matter

and provide a general idea and information on the said area. SMEDA has only performed

its role in compiling this document on the basis of data/ information provided by BWG

(Britannia Wise Group). Although, due care and diligence has been taken to compile thisdocument, the contained information may vary due to any change in any of the concerned

factors, and the actual results may differ from the presented information. SMEDA does not

assume any liability for any financial or other loss resulting from this memorandum/

document or due to any act of BWG (Britannia-Wise Group) in consequence of

undertaking any activity/ activities on the basis of this document. The prospective user of

this memorandum is encouraged to carry out additional diligence and gather any

information he/she feels necessary for making an informed decision.

For more information on services offered by SMEDA, please contact our website:

www.smeda.org.pk




Table of Content1 Introduction................................................................................................................4

1.1 Britannia Resource Centre (BRC) .......................................................................41.2 BWG/ BRC Objectives .......................................................................................41.3 BRC Activities and Services ...............................................................................4

1.4 Opportunity Rationale.........................................................................................51.5 Management Structure ........................................................................................6

2 Pakistan Profile...........................................................................................................72.1 Current Market Situation/ Market Potential.........................................................7

2.2 Target Market .....................................................................................................73 Product.......................................................................................................................8

3.1 Services ..............................................................................................................83.1.1 Educational Services Schedule ....................................................................8

3.1.2 Corporate Services Schedule .....................................................................113.1.3 HSMP, Work Permit and Immigration Services schedule ..........................12

3.2 Pricing Strategy ................................................................................................153.3 Unique Features................................................................................................15

4 Advertisement ..........................................................................................................164.1 International Marketing.....................................................................................16

4.2 Joint marketing .................................................................................................164.3 Individual Marketing.........................................................................................16

5 Human Resource Requirement..................................................................................166 Initial Start-up Cost ..................................................................................................17

7 Franchising Procedure ..............................................................................................187.1 Objectives and Benefits.....................................................................................18

7.1.1 For the General Public...............................................................................187.1.2 For the Franchisee .....................................................................................18

7.1.3 For BWG ..................................................................................................187.2 Recognition Procedure......................................................................................18




1 INTRODUCTION

1.1 Britannia Resource Centre (BRC)

Britannia Resource Centre (BRC) (website: www.brcworldwide.com) is a project initiatedby Britannia-Wise Group (BWG) (website: www.bwguk.org), a group of two leading

British Organizations, Britannia Educational Bureau and Training Wise (website:www.trainingwise.co.uk). BRC is a unique project in the professional history of Great

Britain and gives a new concept of subscribed services for the first time originated fromUK

The services provided by BRC can never be available from UK at such a low rate. Thisservice model is based on old traditional Professional style of United Kingdom a

country rich in multiple culture and traditions

BRC welcomes students, businesspersons, professionals and general public from allover the world to join our Professional World and receive all types of relevant services

and advice free form UK. BRC services span is spread from a common person to aprofessional one. BRC can support you in all relevant areas of your problems and

enquiry from best in house Professional Expertise and Consultancy Partners.

1.2 BWG/ BRC Objectives

To promote a wider knowledge of British Educational System and professionalstructure world wide

Encourage Cultural Scientific, Technological and other Educational co-operationbetween the United Kingdom and other countries

To support and guide the Schools, Colleges & Universities in Professional academicsSetup and its upgrading

To provide community (Young people/People with a disability/ Special Needs/ public)with professional education, training, skill development and support to job placement




4. BRC provides services worldwide to its members.5. BRC provides professional’s training, skill development & placement.

6. BRC conducts Seminars, Workshops, Symposia Camps and Conferences for thepromotion and enhancement of British Professional Education.

7. BRC provides a comprehensive guidance guild for the students, parents andeducationists introducing every fresh event of British Education and Training

Advancement.8. BRC coordinates with leading International welfare organizations and institutions for

Scholarship, Financial Aid and Grant for the Brilliant, Disabled and DeservingStudents.

9. BRC is launching unique setup for the Distance, Continuing and Open EducationNetwork for the employed and busy people.

10. BRC lineup a concrete circuit of business oriented organizations and leadingestablishments for on-job training, executive placement and appropriate employment

in commercial fields.11. BRC provides its members the professional support with participation in latest

professional training and development events.12. BRC supports Public Welfare Projects by Increasing Professionals, Decreasing

Unemployment, Supporting Economy, Building Professional Structure and bysupporting Trade and Industry

1.4 Opportunity Rationale

Life is defined by “Security” and the world is defined by “Change”. The world is not so

as it seemed to be a hundred years ago or so, it has passed through tremendoustechnological, industrial and social changes. This accelerating change in the world has

made future demands unlimited but attainable and only through the support of International Resources Connectivity.

BRC is a HUB to connect with International Resources and Bridges resources globally.BRC will provide complete professional services from UK related to UK education,




6

1.5 Management Structure

Country

Representative

Sirilanka

Chairman

BWG UK

Director

Projects/Trainings

UK

Country

Representative

Office Boy

Secretary

BP Setup

Country

Representative Representative

PakistanChina

Director

Operations

& Admin UK

Director

International

Development

Director

Asia

(Pakistan)

Country

BRC Setup

Business

India

Partner Partner

Pakistan

Executive

Manager Marketing Systems

Executive

Country

Representative

Bangladesh

Business

Office

Executive

Office Boy

Pakistan

Manager

BRC

ConsolerConsoler

BRC

Manager

BRC




2 PAKISTAN PROFILE

2.1 Current Market Situation/ Market Potential

According to the statistics provided by British Government UK Home Office UK VisaPolicy for Pakistan is very accommodating. Considering the previous statistics in 2004-5

the applicants will be more than 250,000.

YEAR 2002-3 YEAR 2002-4

City Total

Application

Refused % of

Refusal

Total

Application

Refused % of

Refusal

Islamabad 62,286 7,670 12.3% 121,098 21,768 18.0%

Karachi 11,757 2,503 21.3% 1,802 7 0.4%

Majority from Pakistan Students, Professional and Businessmen are interested to go to

UK for their Career and Business Development and each year the applicants increasemore than double.

2.2 Target MarketTarget market for BRC is:

Businessperson

Students

Professionals

Investors

Companies

Colleges & Universities




3 PRODUCT

3.1 Services

3.1.1 Educational Services Schedule

*Terms and conditions apply

Service

Code

Services Descriptions Members

(Rate in

Pounds)

Non

Members

(Rate in

Pounds)EDU 505 Career Information Services

BRC provide you the awareness about

professional, professionalism, careerchoosing, career build

Awareness about different Professions

Selection of Career Understanding about international

professional sector World wide professional bodies

Getting International Memberships of Professional Bodies

Understating of Professional Code of Conduct

Global changes in professional sector Future Planning Guidance

BRC provide you your desired course +a list of addresses with contacts in the

Free 50




EDU 506 Education and Technical Knowledgesection services

This section provides you services related

professional education, planning, coursemanagement etc.

Selection of Professional Course Provision of the Admission form from

the desired University. Collection andchecking of all the documentation

required for the Admission. Applicationfor admission and correspondence with

the University. In order to provide ourAdmission Services, we need to know

the precise details of your proposedcourse of study, as well as the name of

the university at which you intend tostudy. If you are not sure, BRC can offer

you two alternatives:a. Career Information Service

We'll give you personalizedinformation about your preferred

course of study. This provides you withthe optimum basis for choosing a

university.b.

If you don't have a preferred universityin UK BRC can .select a university foryou based on your proposed course .of

study.

Free 50




EDU 510 Professional Linguists Assessment TestingServices

Free 25

EDU 511 DISCOUNTED ACCOMMODATIONSERVICEFirst Time in UK:

BRC provide a special package for thestudents and members come first time in

Britain at lowest accommodation cost.Regular Accommodation: If you want to

stay in UK more than on 2 week we help

you to find you the accommodation of yourchoice. We will also check that the rentalcontract complies with British law for you

on request. In addition to the fee of thisservice and the monthly rent, you may also

have to pay a deposit, depending on the typeof accommodation chosen. These costs areusually refunded once the rent has ended.

50 per week 70 perweek

EDU 512 AIRPORT PICKUP SERVICE & HOME

CALLYou will be personally collected by one of

our representatives, whether from thenearest airport or railway station. It is also

possible to arrange transportation for youfrom any airport or station in UK.

Once introductions have been completed,you will be given the opportunity to make a

free telephone call to your family to letthem know that you have arrived safely,

40 50




Online Task Manager Online Annual Calendar

Memo Writing Online Troubleshooting

EDU 516 Financial Assistance (Scholarships &Loans) 15 50

EDU 517 Professional Events Participation 40Discounted

NoDiscount

EDU 518 BWG Performance Awards

EDU 519 Job Placement Free 50

EDU 520 Service for National Insurance and Medical

Card

25 50

EDU 521 Service for Visa Extension Free 50

3.1.2 Corporate Services Schedule

Service

Code


(Rate in

Pounds)

Non

Members

(Rate in

Pounds)BSS 605 Communication support

International Collaborations and MatchMaking

International projects participations

Free 100

BSS 606 Financial Management Consultancy

Management Policies Formation

100 200

BSS 607 Feasibility study of the project 100 250

BSS 608 Research Partnership Consultancy Advice

Free 100

BSS 609 Human Resource Management 50 100

BSS 610 I i l R l i hi D l 50 150




Objectives and Standards

BSS 617 Joint Venture Programs and Projects,

Workshops with International ProfessionalBodies and Institutions.

Free 100

3.1.3 HSMP, Work Permit and Immigration Services schedule

Service

Code


(Rate in

Pounds)

Non

Members

(Rate in

Pounds)

GEN 705 Highly Skilled Migration ProgramHSMP Services is dedicated to provide the

support and services to the members whodecide to come to the UK under HSMP

scheme in their effort to relocate to the UKand start working in the UK

» Job Searching

» HSMP Assessment and ApplicationPreparation» E-Consultation

» Application Plan» Full Representation Service

» Assessment Form» Long Residence

» Family Immigration

» Extension Application» Permanent Residence

200 250

GEN 706 Work Permits

There are six separate sets of work permit

200 250




» Training and work experienceThe training and work experience

arrangements enable people from outside theEEA to undertake work-based training for a

professional or specialist qualification, or aperiod of work experience. Please use form

WP1 when applying for first work permitsand for changes of employment or use WP1X

for extensions to existing work permits.Please see the 'Guidance notes for employers

on how to apply for training and work experience work permit' (Training and work

experience (notes) for further details.

» Sportspeople and entertainersThe sportspeople and entertainers

arrangements allow employers in this countryto employ established sportspeople,

entertainers, cultural artists and sometechnical/support people from outside the

EEA. Please use form WP3 when applyingfor first work permits, multiple entry work

permits and for changes of employment or useWP3X for extensions to existing work

permits. Please see the 'Guidance notes foremployers on how to apply for a sportspeople

and entertainers work permit' (Sportspeopleand entertainers (notes)) for further details.




rules made under the General Agreement onTrade in Services (GATS). The company

abroad that is contracted to provide theservice needs to apply using the application

form GATS1.

» Highly Skilled Migrant Entry ProgrammeThe highly skilled migrant entry programme

(HSMP) allows highly skilled individuals tomigrate to the United Kingdom. Further

details can be found at British Embassies,High Commission.

GEN 707 General Visitors

Travel and Vehicle Hiring

Arrangement of Hotels/Motels/Apartments

Lodging

Sightseeing Immigration and Visa Consultancy Travel Guide

125 125

GEN 708 Medical Visitor

Best Hospital recommendation Doctor’s appointment

Arrangement of medical finance

Medicine supplies Hospital enrollment Medical insurance

Travel and Vehicle Hiring




3.2 Pricing Strategy

BRC provides services from best in house Professional Expertise and ConsultancyPartners Globally. Due to large corporate alliances the services price is affordable toeveryone. BWG has special policy for developing countries to provide subsidies services.

3.3 Unique Features

BRC is a unique project of its kind and no foreseeable competition is expected in such

vide range of services.

Total service structure is UK based and no local consultancy or advisor or cash handlingis provided or taken-up. BRC works as Customer Services Centers.

Largest Professional Consultancy Partners worldwide

BRC is the only approved Resource Centre by BWG in Pakistan

BWG is the member of International Franchise Association, USA.

All services are provided by top level professional sectors abroad from BWG UK.

100% Imported Services Structure

Services available around the world

Subsidized Service fee for developing countries

The only 3 Q Quality Assurance Model in Asia

Largest Corporate Ventures and Strategic Alliances in Pakistan

Value Addition Support and Approved Project by SMEDA, Govt. of Pakistan

Strategic Alliance with Lahore Chamber of Commerce for Business SectorDevelopment

UK Trained and Qualified Customer Services

24 hours online access to members to his / her enquiry database Legal placements

Lifetime services for the Members

Faster and simplest processing model




4 ADVERTISEMENT

4.1 International Marketing

International Marketing strategy is developed by BWG UK for all the internationalmarkets as well as very strong Web Portal for effective communication.

4.2 Joint marketing

Pakistan Marketing Strategy is developed by BWG and local Business Partners and the

cost is shared between equally between BWG and BRC (50%), for all the activitiesthrough newspapers, journals, TV, printed materials and Web Marketing. Initial

Marketing Budget for 2006 is approximately Rs.10 Million for 2006.

4.3 Individual Marketing

BRC city Marketing Strategy is developed by the local BRC and the cost is born by theBRC, which is expected to be Rs. 25,000 per BRC per month.

5 HUMAN RESOURCE REQUIREMENT

Following is the human resource requirement for a BRC:

Description No. Monthly Salary

(£)Annual Salary

(£)

Customer Support Staff 2 100 2400

Janitorial Staff 1 30 360




6 INITIAL START-UP COST

Description Amount in (£)

Local Purchases - Office Furniture & Equipment

A. Office Furniture

Office Furniture 850

Carpets & Reception Floor 300

Lightings & Sign Boards 450

Air conditioners (2) 500Partitions & Renovations 300

Broacher & Books Stand 100

Total 2,500

B. Office Equipment

Computers (2) 600

Laptop 600

Printer, Scanner, Fax & Copier 250

PABX (3x8) & Phones 250

Total 1,700

Pre-operating Cost

Opening Ceremony 1,000

Software License Fee 500Franchise Fee & Security

15,500

Total 7,000

CAPITAL COST 11 200




7 FRANCHISING PROCEDURE

7.1 Objectives and BenefitsThe BWG wishes to recognize organization /Persons that has the capability to handle theBRC projects. Applications for recognition are welcomed from organizations throughout

the world.The benefits of such recognition are following:

7.1.1 For the General Public

Assurance that the organization has adequate resources for the professional servicesbased from UK.

7.1.2 For the Franchisee

Highest Rate of Investment Return Lowest risk based project

Professional Recognition UK based services procedure

International projects participations Employment Plans

Financial Management Consultancy Promotion and Marketing Supports by increasing business volume

Staff, Faculty Training Supports Free Participation in Professional Development Events

Feasibility study of the project Management Policies

Quality control panel and Procedure (3QA Model)

7.1.3 For BWG




The Country Executive notifies the Body of the decision of the panel.

BWG Executive Council grants final Approval Letter and Certificate.

In order to maintain its recognition, the Organization must comply with section 4 of theRecognition Regulations, which includes the provision of an annual performance reportto the BWG. The BWG Country Branch / Director International Development may carry

out audit visits to BRC at short notice.

7.3 BRC Recognition Regulations

7.3.1 Application for Recognition

All applications for recognition must be made in writing to the BWG Country Branchand must consist of the following:

A submission containing all of the information listed in section 2 below;

An Application Declaration signed by the responsible person within theorganization;

The correct fee Bank Draft on the name of “HC”.

Initial assessment fee with application will be submitted amount Rs.2500 and

remaining development fee will be paid after final approval, In case of rejectionof application the Initial Assessment fee will be none.

All applications will acknowledge. If any part of the application is incomplete orunclear, the BWG will seek further information from the organization, which will

delay processing of the application.

Important note: Prior to granting of recognition, Organization is not authorized toadvertise their intention to seek recognition. Breach of this regulation may lead to

rejection of their application.

If any applicant is, fail to submit the balance fee with in 1-week initial assessmentfee will not be refunded.

7 3 2 Contents of submission




Academic and professional qualifications with names of awarding bodies, datesachieved and copies of certificates,

Professional memberships and affiliations with membership numbers and dates joined,

Experience, in reverse chronological order, including:- Academic administration experience

- Relevant industrial/commercial experience.2.8 Quality assurance procedures

3. Recognition decisionThe BWG will make a recognition decision, Recognition granted, or

Recognition not granted for the reasons given.Where recognition is not granted, the organization may submit a further application.

Once recognition is granted, the organization may advertise the fact using the approvedwording supplied by the BWG.

4. Continuation of recognitionThe BWG will continue to recognized status providing that the following conditions are

met:

Satisfactory annual performance reports are submitted;

Any audit visits that take place are satisfactory;

No misleading claims are brought to the attention of the BWG;

The services continue to be offered.

Further information about these conditions is provided below.4.1 Annual performance reportsBRC must submit to the BWG a performance report in May of each year containing the

following information:

Copies of all relevant publicity and promotional material used during the year; Staff changes during the year;

Resource changes during the year;

Ch d t lit d




Counseling staffs are professional, have appropriate qualifications (e.g. relevantdegree), are skilled in counseling and have knowledge and training; certified by

BWG. Counseling staff has adequate time and resources to provide counseling.

The organization keeps its resources up-to-date and relevant to the informationbeing delivered.

The organization is financially sound.

The organization operates quality assurance procedures.

The organization promotes its courses to those students who have a realisticlikelihood of passing the Examinations and makes clear in its advertising andpromotional material what prior knowledge is expected.

The organization operates effective administrative procedures.

Britannia Recourse Centre: Approved wording of promotional material

Britannia Recourse Centre which have been granted recognition in accordancewith section 3 of the Recognition Regulations and which have maintained that

recognition in accordance with section 4 of the Recognition Regulations mayadvertise such recognition as described below. This guidance relates to

advertisements, brochures, letterheads and all promotional material.For material relating to specific recognized courses.

6. Acceptable abbreviations“BRITANNIA RECOURSE CENTRE”

A logo will be provided for Britannia Recourse Centre.

*Important note

Recognized BRC must not state or imply that BWG recognition extends to services,

which are not recognized. Any breach of this requirement may result in recognition beingwithdrawn in accordance with section 4 of the Recognition Regulations.




8 FRANCHISEE SUPPORT

BRC is a unique Project in the professional history of Great Britain and give a newconcept of subscribed services for fist time, based from UK.The services provided by BRC cannot be available from UK in so lower price.

UK is the country with all cultures and traditions this service model is based on Oldtraditional Professional stile of United Kingdom.

BWG provide support to a new franchisee at all stages of BRC projects

Before Project Start

During Project Completion.

After Completion of ProjectBWG has formed BRC in such a way that to work with us is itself a great privilege alearning experience.

Before Project Start

Application Preparation Market Potential Calculation

Training in at BWG Head Office UK Conceptual Framework Understanding

Planning and Financial Analysis Free Feasibility Study

Get free advice and presentation about projects Professional Expertise from UK

During Project Completion

Help for Check list completion

Recruitment of Staff

Training and Development of Staff Support for opening g ceremony




9 BRC CHECK LIST

After approval of application BRC checklist has to be complied. Following is the detailsof the checklist:

Please ensure that all items are checked and any reasons for non-submission recorded inthe comments section below. Documents should be compiled in the order listed.

Mailing Ref: ___________________ Receiving Date: _________________________

Applicant Name: ________________ APP Code: _____________________________

1) Proposed Locations for Centre YES / NO

2) 3 Computers (P-IV) with networking and Internet support YES / NO

3) Three separate office tables with 3 persons attendees capacity on each YES / NO

4) Two Telephone Lines-one for phone and one for fax YES / NO

5) Central Air Conditioned Office YES / NO

6) Laser Printer and Scanner YES / NO

7) Material display desks and wall clocks YES / NO

8) A separate Bank Account YES / NO

9) Proposed Location/hotel for opening ceremony YES / NO

10) City Survey Report YES / NO

11) BRC Recognition Kit Complete Knowledge YES / NO

12) Bank Draft for Development Cost YES / NO

13) 5 Recent Photographs YES / NO

14) ID Card Copies YES / NO

15) Inspection Clearance Letter from Country Branch Office YES / NO

16) Indoor Plants, Fans, lights, racks, stationary etc. YES / NO17) External Boards, Notice Boards YES / NO

18) Pakistan and British Flags YES / NO

19) Other Furniture YES / NO




10 SURVEY QUESTIONNAIRE

BWG is required with the following survey questionnaire. It must be completed beforethe starting of a BRC Centre in a City. This surrey helps in potential calculation and risk

management.

Population of city

Area of city

Youth population

Per capital income

Literacy rate

No. of Govt. employees

No. of self employed

No. of daily newspapers

Number of weeklies

Number of monthly magazines Number of four-star hotels

Number of public places

Average number of public events per month

Percentage of middle class and upper class

What are the area divisions

What are central areas of the city

What are the main roads of the city List of school, colleges and universities with their details of courses offering,

admission date, and status rank, strength and fee schedule

Famous places chambers stock exchange bank etc




25

11 FINANCIAL ANALYSIS2

11.1 Revenue

YEA R 2 Y EAR 3 Y EAR 4 YEAR 5 YEA R 6 YEA R 7 YEAR 8 YEA R 9 Y EAR 10

Q1 Q2 Q3 Q4

No. of

Applica

No. of

Applica

No. of

Applicant

No. of

Applica

5% 7% 10% 15% 37% 39% 41% 43% 45% 47% 50% 52% 55% 57%

Students 24 6 12 17 25 37 91 95 10 0 10 5 11 0 11 6 12 2 12 8 13 4 14 1

Professionals 18 4 9 13 18 28 68 72 75 79 83 87 91 96 10 1 10 6

Business 18 4 9 13 18 28 68 72 75 79 83 87 91 96 10 1 10 6

H S M P 12 3 6 9 12 18 45 48 50 53 55 58 61 64 67 70

Work 61 3 4 6 9 23 24 25 26 28 29 30 32 34 35

Immigration 92 5 6 9 14 34 36 38 39 41 43 46 48 50 53

Investors 61 3 4 6 9 23 24 25 26 28 29 30 32 34 35

General and 18 4 9 13 18 28 68 72 75 79 83 87 91 96 10 1 10 6

University 61 3 4 6 9 23 24 25 26 28 29 30 32 34 35 Services for 18 1 1 2 3 7 7 8 8 8 9 9 10 10 11

N on 18 4 9 13 18 28 68 72 75 79 83 87 91 96 10 1 10 6

Total 1,400 70 98 140 21 0 51 8 544 57 2 60 0 63 0 66 2 69 5 72 9 76 6 80 4

Income Statement

1st Quarte d Quart rd Quate th Quart Y EA R 1 YEA R 2 Y EAR 3 Y EAR 4 YEAR 5 YEA R 6 YEA R 7 YEAR 8 YEA R 9 Y EAR 10

SALES REVENUE £ in actual

Students 1,535 2,149 3,070 4,605 11,360 12,524 13,808 15,223 16,783 18,504 20,400 22,491 24,797 27,338

Professionals 1,197 1,676 2,395 3,592 8,861 9,393 10,770 11,874 13,091 14,433 15,912 17,543 19,341 21,324

Business 1,382 1,934 2,763 4,145 10,224 9,393 12,427 13,701 15,105 16,653 18,360 20,242 22,317 24,605

HSMP 1,535 2,149 3,070 4,605 11,360 6,262 13,808 15,223 16,783 18,504 20,400 22,491 24,797 27,338

Work 768 1,075 1,535 2,303 5,680 3,131 6,904 7,612 8,392 9,252 10,200 11,246 12,398 13,669

Immigration 1,151 1,612 2,303 3,454 8,520 4,697 10,356 11,417 12,588 13,878 15,300 16,868 18,598 20,504

Investors 614 86 0 1,228 1,842 4,544 3,131 5,523 6,089 6,713 7,401 8,160 8,997 9,919 10,935 General and 1,151 1,612 2,303 3,454 8,520 9,393 10,356 11,417 12,588 13,878 15,300 16,868 18,598 20,504

University 1,228 1,719 2,456 3,684 9,088 3,131 11,046 12,178 13,427 14,803 16,320 17,993 19,837 21,871

Services for 461 64 5 92 1 1,382 3,408 93 9 4,142 4,567 5,035 5,551 6,120 6,747 7,439 8,202

No n 46 1 64 5 92 1 1,382 3,408 9,393 4,142 4,567 5,035 5,551 6,120 6,747 7,439 8,202

Revenue 11,482 16,075 22,965 34,447 84,970 15 8,458 30 0,840 578 ,716 1 ,1 22,98 4 2,160 ,9 98 4 ,16 3,5 39 8 ,026,2 37 15 ,47 3,758 29,82 4,5 32

Category

No. of Applicants

TOTAL

YEAR 1

Applica

nt s

2Financial Analysis is based on assumptions, therefore the results may vary from city to city




26

11.2 Projected Income Statement

Income Statement

1st Quarte d Quart rd Quate h Quart YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10SALES REVENUE £ in actual

Revenue 11,482 16,075 22,965 34,447 84,970 158,458 300,840 578,716 1,122,984 2,160,998 4,163,539 8,026,237 15,473,758 29,824,532

Operating Expenses

Marketing (BRC Local 625 625 625 625 2,500 2,375 2,143 1,838 1,497 1,158 851 595 394 249

Marketing (joint) 625 625 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250

Staff Salaries 600 600 600 600 2,400 2,640 3,194 4,252 6,225 10,025 17,761 34,610 74,190 174,937

Office Rent 750 750 750 750 3,000 3,300 3,993 5,315 7,781 12,532 22,201 43,263 92,738 218,671

Mailing and charges 150 150 150 150 600 660 799 1,063 1,556 2,506 4,440 8,653 18,548 43,734

Stationary 250 250 250 250 1,000 1,100 1,331 1,772 2,594 4,177 7,400 14,421 30,913 72,890

Janitorial Staff 90 90 90 90 360 396 479 638 934 1,504 2,664 5,192 11,129 26,241 Maintainence Expense 300 300 300 300 1,200 1,320 1,597 2,126 3,112 5,013 8,880 17,305 37,095 87,469

BWG Training & Development Fee- 2nd year onwards 2,000 2,200 2,420 2,662 2,928 3,221 3,543 3,897 4,287

Depreciation Expense 105 105 105 105 420 420 420 420 420 420 420 420 420 420

Amortization Expense 350 350 350 350 1,400 1,400 1,400 1,400 1,400

Utilities 510 510 510 510 2,040 2,244 2,715 3,614 5,291 8,522 15,097 29,419 63,062 148,697

Other Expenses

BWG Administration 5,741 8,038 11,482 17,224 42,485 79,229 150,420 289,358 561,492 1,080,499 2,081,769 4,013,118 7,736,879 14,912,266

Long Term Loan Intere - - - - - - - - - - - - - -

Total Expense 9,471 11,768 15,837 21,579 58,655 98,334 171,942 315,464 596,215 1,130,534 2,165,954 4,171,789 8,070,515 15,691,111

Earning before tax 2,011 4,308 7,127 12,869 26,315 60,124 128,898 263,252 526,770 1,030,464 1,997,584 3,854,448 7,403,243 14,133,421

Tax

NET PROFIT 2,011 4,308 7,127 12,869 26,315 60,124 128,898 263,252 526,770 1,030,464 1,997,584 3,854,448 7,403,243 14,133,421

Balance brought forward 26,315 86,439 215,337 478,589 1,005,358 2,035,822 4,033,406 7,887,855 15,291,097

Balance carried forward 26,315 86,439 215,337 478,589 1,005,358 2,035,822 4,033,406 7,887,855 15,291,097 29,424,518




27

11.3 Projected Cashflow Statement

Statement Summaries SMEDA

Cash Flow Statement£ in actual

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Operating activities

Net profit 26,315 60,124 128,898 263,252 526,770 1,030,464 1,997,584 3,854,448 7,403,243 14,133,421

Add: depreciation expense 420 420 420 420 420 420 420 420 420 420

amortization expense 1,400 1,400 1,400 1,400 1,400 - - - - -

Stationary inventory (500) (50) (116) (220) (411) (792) (1,612) (3,510) (8,246) (20,989) 36,445

Pre-paid building rent (1,500) (150) (347) (661) (1,233) (2,375) (4,835) (10,531) (24,738) (62,967) 109,336

Cash provided by operations (2,000) 27,935 61,482 129,837 263,427 525,423 1,024,438 1,983,963 3,821,885 7,319,707 14,279,622

Financing activities

Change in long term debt - - - - - - - - - - -

Change in short term debt - - - - - - - - - - -

Issuance of shares 16,850

Cash provided by / (used for 16,850 - - - - - - - - - -

Investing activities

Capital expenditure (11,200)

Cash (used for) / provided b (11,200)

NET CASH 3,650 27,935 61,482 129,837 263,427 525,423 1,024,438 1,983,963 3,821,885 7,319,707 14,279,622

Cash balance brought forward 3,650 31,585 93,067 222,904 486,331 1,011,754 2,036,192 4,020,154 7,842,039 15,161,746

Cash carried forward 3,650 31,585 93,067 222,904 486,331 1,011,754 2,036,192 4,020,154 7,842,039 15,161,746 29,441,368




28

11.4 Projected Balance Sheet

Statement Summaries SMEDA

Balance Sheet

£ in actual

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Assets

Current assets

Cash & Bank 3,650 31,585 93,067 222,904 486,331 1,011,754 2,036,192 4,020,154 7,842,039 15,161,746 29,441,368

Stationary Inventory 500 550 666 886 1,297 2,089 3,700 7,210 15,456 36,445 -

Pre-paid building rent 1,500 1,650 1,997 2,657 3,891 6,266 11,100 21,631 46,369 109,336 -

Total Current Assets 5,650 33,785 95,729 226,447 491,519 1,02 0,108 2,050,992 4,048,996 7,9 03,865 15, 30 7,527 29,441, 368

Fixed assets

Machinery & equipment 1,700 1,530 1,360 1,190 1,020 850 680 510 340 170 -

Furniture & fixtures 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 - Total Fixed Assets 4,200 3,780 3,360 2,940 2,520 2,100 1,680 1,260 840 420 -

Intangible assets

Pre-operation costs 6,500 5,200 3,900 2,600 1,300 -

Total Intangible Assets 6,500 5,200 3,900 2,600 1,300 - - - - - -

TOTAL ASSETS 16,350 42,765 102,989 231,987 495,339 1,022,208 2,052,672 4,050,256 7,904,705 15,307,947 29,441,368

Liabilities & Shareholders' Equity

Current liabilities

Short term debt

Total Current Liabilities - - - - - - - - - - -

Other liabilitiesLong term debt - - - - - - - - - - -

Total Long Term Liabilities - - - - - - - - - - -

Shareholders' equity

Paid-up capital 16,850 16,850 16,850 16,850 16,850 16,850 16,850 16,850 16,850 16,850 16,850

Retained earnings - 26,315 86,439 215,337 478,589 1,005,358 2,035,822 4,033,406 7,887,855 15,291,097 29,424,518

Total Equity 16,850 43,165 103,289 232,187 495,439 1, 02 2,208 2,052,672 4,050, 256 7,9 04,705 15, 30 7,947 29,441, 368

TOTAL CAPITAL AND LIA 16,850 43,165 103,289 232,187 495,439 1,022,208 2,052,672 4,050,256 7,904,705 15,307,947 29,441,368




29

11.5 Assumptions

Expense Assumptions

Marketing Expenses BRC Local(per month) 208

Marketing Expenses Joint(per month) 208

Decrease in Marketing Expenses 5%

No. of Staff 2

Monthly Salary (Each) 100

Annual Growth Rate of salary 10%

Office Rent (per Month) 250

Annual Growth Rate in Rent 10%

Mailing and charges (per month) 50

Annual Growth Rate of mailing charges 10%

Utilities (electricity, telephone, fax) 170

BWG A dministration Fee (%) 50%

Statinary 83

Mainta inence Expense (per month) 100

Depreciation Expense 10%

Amortization Expense 20%

Interest Rate 14%

Loan paymet period (year) 5

Installments (in a year) 1

Revenue Assumptions

Category Fee

Total Capacity (Applications per year) 1,400

Annual Growth Rate in Applicants 5%

Annual Growth Rate in Selling Price 5%

Year 1 Capacity 57% Product Mix

Students Members 125 18%

Professionals Members 130 13%Business Member 150 13%

HSMP Services 250 9%

Work Permits Services 250 4%

Immigration Services 250 7%

Investors Services 200 4%

General and Medical Visitors 125 13%

University Commissions 400 4%

Services for UK Companies 500 1%

Non members Services 50 13%

SMEDA Britannia Resource Centre (UK Franchise, A Life Time Business Opportunity)

Documents

Transcript of SMEDA Britannia Resource Centre (UK Franchise, A Life Time Business Opportunity)