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DEC.10, 2021

Education Consulting Business Plan Sample

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Education Consulting Business Plan Sample

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Table of Content

    Do you want to start Education Consulting business plan?

    You might wonder how to start an educational consulting business. In that case, you can take help from this education consulting business plan. Starting a consultation business doesn’t require many resources. You just need basic expertise in the domain.

    So, if you have a fundamental understanding of the education sector, you can start this business. However, in order to create a successful venture, you’ll need a good business plan. For that purpose, you can refer to this document or any related business plan such as life coaching business plan, etc. You can also take help from the best business plan experts.

    Executive Summary

    2.1 The Business

    Pro Learning will be an education consultation firm started by Harry Brown. The firm will aim to provide consultation services catering to the requirements of the clients in Stockton. The firm will provide a wide range of services for both students and educational institutes in the US.

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    2.2 Management of Education Consulting Company

    Starting an educational consulting business requires appropriate management of the resources you possess. You can ensure this through an education consultant business plan. In this plan, you should mention all the technical as well as human resources you have along with your plans for their management.

    In this strategic and operational business plan, all the requirements for business consulting education have been mentioned.

    2.3 Customers of Education Consulting Company

    The backbone of an education consulting business is its customers. Our customers will mainly be people who directly belong to the educational domain. They are identified as follows:

    • Students
    • Universities
    • International Education Agents
    • Schools

    2.4 Business Target

    Our primary goal is to become the most trusted place for all kinds of education-related consultancy services.

    The financial targets that we want to achieve within the first few years of launch are demonstrated below:

    3 Years Profit Forecast - education consulting business plan

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    Company Summary

    3.1 Company Owner

    Harry Brown will own Pro Learning. Harry did his M. Ed two years ago. After that, he served as a freelance consultant to many clients. But he decided to expand his business and provide more services.

    3.2 Why the Education Consulting company is being started

    Harry observed that many schools around the Stockton area had a deficiency of adequate educational consultancy resources. Many able students needed guidance, but there was no one they could go to. Therefore, he decided to make use of his experience and start a consultancy firm.

    3.3 How the Education Consulting company will be started

    Step1: Plan Everything

    A solid education consultant business plan is the first step in how to start an education consulting business. For developing your business plan, you can refer to this education business plan sample or any related business plan like business consulting business plan.

    This sample educational consultant proposal can be used to guide the development of a business plan for any business because Harry decided to offer a wide variety of services.

    Step2: Define the Brand

    The next step in your journey is to advertise your business. You can do this by developing a brand. In your brand, you have to highlight your competitive advantage by listing your unique services and policies.

    Step3: Establish Your Corporate Office

    For the time being, Harry decided to rent out an office in Stockton. He will now put together a team and gather the technical equipment required.

    Step4: Establish a Web Presence

    Establishing a solid web presence is necessary when starting a business in this digital age. Keeping this in view, Harry created social media profiles of his business. He also had a simple website developed where clients could reach out.

    Step5: Promote and Market

    The last thing to do is develop a marketing plan and promote your business by following it.

    Startup Cost - education consulting business plan

    Start-up Expenses  
    Legal $156,000
    Consultants $0
    Insurance $23,000
    Rent $33,000
    Research and Development $10,000
    Expensed Equipment $36,000
    Signs $3,400
    TOTAL START-UP EXPENSES $261,400
    Start-up Assets $266,000
    Cash Required $369,000
    Start-up Inventory $39,000
    Other Current Assets $240,000
    Long-term Assets $287,000
    TOTAL ASSETS $1,201,000
    Total Requirements $1,462,400
    START-UP FUNDING
    Start-up Expenses to Fund $261,400
    Start-up Assets to Fund $1,201,000
    TOTAL FUNDING REQUIRED $1,462,400
    Assets
    Non-cash Assets from Start-up $1,506,000
    Cash Requirements from Start-up $125,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,716,000
    Liabilities and Capital
    Liabilities $18,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $48,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $66,000
    Capital
    Planned Investment $1,462,400
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,462,400
    Loss at Start-up (Start-up Expenses) $187,600
    TOTAL CAPITAL $1,650,000
    TOTAL CAPITAL AND LIABILITIES $1,716,000
    Total Funding $1,462,400
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    Services of Education Consulting

    Before you start education consulting business, you need to identify the services you will be providing to your clients. That way, you can develop your education consultant services business plan accordingly.

    As Harry wanted to offer a wide variety of services through his business, so this education consulting business plan sample pdf can be used as a guide to writing any business plan. Even a mortgage lender business plan.

    Below, we have described the education consulting services. So, if you want to know how to become an education consultant, you can take help from here.

    • Education Counselling Service

    The main service provided by Pro Learning will be education counseling for students. Students can book an appointment directly or through their institutes to gain the help and perspective they need. Our firm will help students:

    • Realize their potential
    • Understand their areas of aptitude
    • Make an educated decision about their future learning
    • Admission Procedure Help

    Another important service of Pro Learning will be to guide students about the application procedures of the institutes of their choice. Many students shy away from applying to educational institutes because of the overwhelming and complex application procedure.

    Pro Learning will:

    • Guide students about application dates
    • Help students plan out their application submission process
    • Inform students about necessary academic and financial requirements
    • Financial Advice

    Pro Learning will also help students plan out their finances. And inform them of financial resources they can turn to if needed.

    • Visa Assistance

    Our firm will also handle visa applications and guide students throughout the whole process so that they are as efficient as possible.

    Marketing Analysis of Education Consulting Company

    Starting an educational consulting firm will require you to have an in-depth knowledge of the target market. You can gain this knowledge through a marketing analysis. A marketing plan for education consultancy business will help you identify your customers and competitors in a better way.

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    Conducting marketing analysis is an essential step in the steps to become an educational consultant. However, if you don’t know much about marketing analysis, you can take help from education business plan samples. You can also look to specialized documents like Harvard business school marketing plan template for a more in-depth understanding.

    In this document, we have detailed the marketing analysis of Pro Learning.

    5.1 Market Trends

    According to IBISWorld, the education consultant market is valued at $2 billion. The industry is expected to increase at a steady rate of 2% or over in the next five years. It is because people have finally realized the importance of suitable education. So more and more people are turning towards professional consultancy services to boost their careers.

    5.2 Marketing Segmentation

    The customer groups of Pro Learning are as follows:

    Marketing Segmentation- education consulting business plan

    Business Plan for Investors

    5.2.1 Students

    Our primary services will be dedicated to helping students and coaching their academic path. They are expected to be our main customers and are expected to avail our resources the most. The services they are expected to use involve:

    • Counseling for future academic opportunities
    • Guide for choosing a career path
    • Help in deciding and managing academic activities

    5.2.2 Universities

    Our second target customers will be universities and other institutes of higher education. We want to connect students with suitable universities. Thus, we are expected to partner with many universities throughout the year to provide them with a good candidate pool.

    5.2.3 International Education Agents

    We will also be partnering with international educational agents and connecting them with the universities in the US. So we expect them to avail our resources quite often as well.

    5.2.4 Schools

    Lastly, we will also reach out to schools to provide high school students counseling for deciding their future academic paths and careers.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Students 45% 40,000 44,000 48,400 53,240 58,564 10.00%
    Universities 24% 21,000 23,100 25,410 27,951 30,746 10.00%
    Education Agents 11% 24,000 26,400 29,040 31,944 35,138 10.00%
    Schools 20% 22,000 24,200 26,620 29,282 32,210 11.00%
    Total 100% 107,000 117,700 129,470 142,417 156,659 10%

    5.3 Business Target

    • To become the most sought out counseling service firm throughout Stockton
    • To expand our services steadily and reach out to more schools
    • To keep customer satisfaction rate above 95%
    • To earn a profit margin of $30k per month by the end of our first year.

    5.4 Product Pricing

    Our prices will be very reasonable considering our main target audience is students. We will provide a greater range of services at the same price as our competitors.

    Marketing Strategy of Education Consulting

    To become prominent among the businesses for education consulting careers, you need to have a strong marketing strategy for educational consultancy. A good marketing strategy will help you highlight your competitive advantage to your customers. Therefore, it should be a part of your business plan.

    Here, we have a sample business plan educational services that highlights the marketing strategy of Pro Learning. This is just an example. And you can use any business plan for guidance, may it be a  counseling private practice business plan.

    6.1 Competitive Analysis

    • We have excellent client care services available that will be ready to help our clients whenever they need them.
    • We will implement a feedback system to improve our services for our clients.
    • Our clients can contact us directly by phone. Or they can reach out to us through our website or social media platforms. This will allow them to easily book appointments from the comfort of their home.
    • We will have timings for walk-in sessions where our first-time customers can just come and go through a session without needing to book an appointment.

    6.2 Sales Strategy

    • We will offer reduced prices and sales for our long-term customers
    • We will provide cheaper and affordable packages for students.
    • We will advertise through word of mouth, Google Ads, and social media.

    6.3 Sales Monthly

    Sales Monthly - education consulting business plan

    6.4 Sales Yearly

    Sales Yearly - education consulting business plan

    6.5 Sales Forecast

    Unit Sales - education consulting business plan

    Personnel plan of Education Consulting

    Any good sample educational consultant proposal includes employee hiring criterion. It’s because the success of a business, especially a consultancy business, depends on the employees and their behavior.

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    Note

    Realizing the importance of employee selection, Harry also decided to implement a selection criterion while selecting the employees mentioned below in the educational services business plan.

    7.1 Company Staff

    • 1 Co Manager
    • 4 B. Ed graduates to help with the workload
    • 8 Career Specialists
    • 1 Web Developer/ Mobile App Developer to manage online sites
    • 1 Sales Executive to organize and promote sales
    • 1 Accountant
    • 1 Receptionist

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Co Manager $30,000 $33,000 $36,300
    Graduates $92,000 $101,200 $111,320
    Career Specialistis $190,000 $209,000 $229,900
    Web Developer $25,000 $27,500 $30,250
    Sales Executives $15,000 $16,500 $18,150
    Accountant $25,000 $27,500 $30,250
    Receptionist $20,000 $22,000 $24,200
    Total Salaries $397,000 $436,700 $480,370

    Financial Plan of Education Consulting

    To start education consulting business, you need much more than sales. The success of a business is ensured by a proper financial plan that is usually a part of education consulting business plan.

    A financial plan allows you to manage your time and other resources efficiently in order to reap the benefits. It also helps you to analyze the degree of profitability or loss that your business is incurring.

    In your financial plan, you need to identify the ways and plan how you will earn profits and pay up your expenses. The financial analysis of a company also helps to identify ways to reduce expenses and increase productivity.

    Here we’re providing the detailed financial plan for Pro Learning. You can go through this document on any business plan, such as a business plan for electrical contractor to help you develop a financial plan.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Break-even Analysis - education consulting business plan

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $3,450,000 $4,242,120 $5,216,111
    Direct Cost of Sales $2,250,000 $2,623,500 $2,919,956
    Other $0 $0 $0
    TOTAL COST OF SALES $2,250,000 $2,623,500 $2,919,956
    Gross Margin $1,200,000 $1,618,620 $2,296,155
    Gross Margin % 34.78% 38.16% 44.02%
    Expenses
    Payroll $397,000 $436,700 $480,370
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $576,200 $620,150 $674,270
    Profit Before Interest and Taxes $623,800 $998,470 $1,621,885
    EBITDA $623,800 $998,470 $1,621,885
    Interest Expense $0 $0 $0
    Taxes Incurred $124,760 $199,694 $324,377
    Net Profit $499,040 $798,776 $1,297,508
    Net Profit/Sales 14.46% 18.83% 24.88%
    Any questions? Get in Touch

    8.3.1 Profit Monthly

    Profit Monthly - education consulting business plan

    8.3.2 Profit Yearly

    Profit Yearly - education consulting business plan

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - education consulting business plan

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - education consulting business plan

    8.4 Projected Cash Flow

    Projected Cash Flow - education consulting business plan

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

     

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    1. How do I start an educational consulting business?

    If you are wondering how to start an education consulting business, you can do it by writing a sample educational consultant proposal. You can refer to any business proposal such as business plan computer software for guidance.

    1. How much do educational consultants make?

    If you are wondering how much do educational consultants make, then on average, an educational consultant makes $65k per year. But the salary may vary depending on the scale of the business and the job post.

    1. What is the average cost of an educational consultant?

    On average, an educational consultant charges $85 to $200 per hour. The rates will be dependent on the services required and the scale of the business.

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