Educational website business plan for starting your own business

Do you want to start an educational website? An educational website provides educational services such as recorded and live lectures on certain subjects. It can also include answering students’ queries and holding academic discussions. 

The business is in-demand and can be extremely profitable if you plan it properly. To ensure that you plan everything in detail you must study some of the best business plans, specifically sample business plan educational services.

To facilitate you, we are providing educational website business plan of E-Acad, an educational website startup. It will explain in detail all the steps that you’ll have to take to step into this business.

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Executive Summary

2.1 The Business

E-Acad is an educational website established by Lara Frederick. The business will provide a myriad of educational services ranging from the provision of video lectures to helping students solve difficult assignments. The business will operate online however, an office will be set up in New Orleans to organize projects and tasks done by different groups.

2.2 Management of educational website

You might be thinking that the management of an educational website is easy since most of the work will be based online. But it is only a myth. Like any other business, you can think of, starting an educational website also requires making a detailed business plan for an educational website. If you don’t know how to write a business plan for a website or business plan for a franchise, you can take help from this business plan.

E-Acad will hire managers, create a hierarchical organization, and purchase business management software to manage the business smoothly. A complete list of persons who will be hired will be given in the next sections of this online course business plan.

2.3 Customers of the educational website

The customer groups as identified by E-Acad are as follows:

  • Undergraduate Students
  • Postgraduate Students
  • Employees of Companies
  • Faculty Members

Your customer groups may change depending on the services you provide. In that case, you may need to study education consulting business plan or tutoring business plan.

2.4 Business Target

It is important to set business targets according to your resources and expectations. This will help you drive all processes of your business in a progressive direction. In this online education e learning sample business plan we are listing the business targets of E-Acad. 

  • Earning $25 per month in profits by the end of the first five years
  • Expanding our services to also include complex degree programs
  • Educational Website Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Lara Frederick is the owner and CEO of E-Acad. She is a social science graduate. During her academic years, she performed some voice-over jobs for academic videos and established links with many people in the field.

3.2 Why the educational website is being started

Lara decided to start an educational website due to her interest and experience in the field. During COVID times, online education programs earned a good deal and thus the opportunity emerged as a new business stream. Thus, seeing the newer demand and prospects of profit generation, Lara decided to start this business. 

3.3 How the educational website will be started 

Step1: Create Educational Services Business Plan

The first step is to develop a business plan template for a website and then fill in the details to make it a comprehensive business plan edu. If you plan to run your business via proper software then you must also study educational software business plan.

Step2: Start Marketing

The next step is to make people realize that your business exists. For this, you will have to develop an influencing marketing plan to reach wider audiences. Then, to carry out a marketing plan you would require graphic designers to design posters for you. 

Step3: Gather the Resource 

The next step is to start acquiring human and digital resources by using your financial resource. Because to implement each part of your business plan, you will be requiring money and people with expertise.

Step4: Have a Great Online Presence

Since sales of your business will be based on online presence, you will need to hire web developers as well as SEO writers to get your startup up in the search engine.

Step5: Manage and Execute

The last step is to execute what you have planned in your business plan.

Educational Website Business Plan - Startup Cost
Start-up Expenses 
Research and Development$10,000
Expensed Equipment$52,200
Start-up Assets$221,400
Cash Required$121,000
Start-up Inventory$35,100
Other Current Assets$251,000
Long-term Assets$212,100
Total Requirements$1,084,700
Start-up Expenses to Fund$244,100
Start-up Assets to Fund$840,600
Non-cash Assets from Start-up$1,097,100
Cash Requirements from Start-up$111,300
Additional Cash Raised$52,000
Cash Balance on Starting Date$32,100
TOTAL ASSETS$1,292,500
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$61,100
Other Current Liabilities (interest-free)$0
Planned Investment$1,084,700
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$128,490
Total Funding$1,084,700

Services of educational website

The educational website can provide a wide range of services. Therefore before making your online education business plan, it is important to decide which services you want to offer. If your services are not pure academic you may want to explore business plan for language school or business plan for a driving school.

E-Acad has mentioned the following services in its business plan educational institution. 

  • Individual Guidance Sessions

Our topmost service will be providing one-one tutoring sessions to individuals so that they can learn about their queries in a personalized manner. 

  • Recorded Video Lectures

We will be providing paid video lectures on topics of graduate and post-graduate study.

  • Help Solving Assignments

We will offer help and guidance to students in solving their assignments.

  • Designing Exams and Tests

We will also design test questions and numerical problems for tests, assignments, and exam purposes.

As per the business plan education, these services will be provided for various academic streams including engineering, medical sciences, humanities, and social sciences. You are recommended to study more website business plans if you are looking for other services.

Marketing Analysis of educational website

5.1 Market Trends

The market demand for business educational wesbites has grown manifold after the COVID episode. Hundreds of educational websites are operating in the U.S. Though recorded lectures have already been produced by many educational websites for business studies, there is still much room to improvise and find new arenas. According to Statista, the global e-learning market was sized at $200 billion in 2019, and in that year LMS market single-handedly made more than $18 billion.

5.2 Marketing Segmentation

If you are starting a business website that includes educational services, you must first identify the groups of target customers you want to serve. In this educational website business plan sample we’re providing marketing segmentation done by E-Acad.

Educational Website Business Plan - Marketing Segmentation

5.2.1 Undergraduate Students

This category will be our major customers. Due to the online nature of business, we expect students from the whole world to avail of our services.

5.2.2 Postgraduate Students

We will also be covering advanced subjects that’s why postgrads will make a whole segment of our customers. 

5.2.3 Business Employees 

Since we are also providing personalized guiding sessions, people who are already on their jobs are also expected to avail of our services whenever they get to do a task in which they lack knowledge. 

5.2.4 Faculty Members

Teachers and faculty members are expected to avail of our exam and assignment-making services. Besides, they can also benefit from our video lectures and guidance sessions.

Market Analysis       
Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Undergraduate Students34%41,30049,56059,47271,36685,64010.00%
Postgraduate Students28%31,20037,44044,92853,91464,69610.00%
Business Employees22%21,13025,35630,42736,51343,81510.00%
Faculty Members16%16,11019,33223,19827,83833,40611.00%

5.3 Business Target

In this sample tech educational website startup business plan pdf, we are listing the business targets of E-Acad. Likewise, as you design educational website business plan pdf for your business, you should define SMART business goals to ensure you direct your working towards them.

  • Reaching a customer satisfaction score of more than 90% in the first year of our launch
  • Earning $25 per month in profits by the end of the first five years
  • Expanding our services to also include complex degree programs

5.4 Product Pricing

The prices for educational services that E-Acad will be offering are a little higher than others in the market. However, in the sales strategy section in this educational website business plan sample, we’ll explain why E-Acad still expects to get more customers.

Marketing Strategy of educational website

To reach the target audience, it is essential to have a strong sales strategy plan. In this education business plan sample, we’ll be providing the sales strategy of E-Acad. However, to get even more ideas for targeted promotions and advertisements, you may also take help from business plan for a karate school and martial arts school business plan.

6.1 Competitive Analysis

  • Due to saturation in the arena of recorded video lectures, we are providing other types of educational services as well.
  • Provision of assignment, test, and examination questions making services in an idea unique to us.
  • Our tutoring services are instant and highly personalized.  

6.2 Sales Strategy

To advertise our startup, we’ll be adopting the following options as mentioned in our sample business plan educational website. You are recommended to explore more educational website business plan pdf to get more advertisement ideas.

  • We’ll offer a 20% discount on all our services for the first three months of our launch.
  • We’ll provide free video lectures for the first 3 months of our launch.

6.3 Sales Monthly

Educational Website Business Plan - Sales Monthly

6.4 Sales Yearly

Educational Website Business Plan - Sales Yearly

6.5 Sales Forecastz

Educational Website Business Plan - Unit Sales
Sales Forecast   
Unit SalesYear 1Year 2Year 3
Individual Guidance Sessions1,2501,3251,405
Recorded Video Lectures1,2501,3251,405
Help Solving Assignments1,2001,2721,348
Designing Exams and Tests1,5001,5901,685
TOTAL UNIT SALES5,2005,5125,843
Unit PricesYear 1Year 2Year 3
Individual Guidance Sessions$300.00$348.00$403.68
Recorded Video Lectures$250.00$290.00$336.40
Help Solving Assignments$300.00$348.00$403.68
Designing Exams and Tests$250.00$290.00$336.40
Individual Guidance Sessions$375,000.00 $461,100.00 $566,968.56
Recorded Video Lectures$312,500.00 $384,250.00 $472,473.80
Help Solving Assignments$360,000.00 $442,656.00 $544,289.82
Designing Exams and Tests$375,000.00 $461,100.00 $566,968.56
TOTAL SALES$1,422,500.00 $1,749,106.00 $2,150,700.74
Direct Unit CostsYear 1Year 2Year 3
Individual Guidance Sessions$15.00$16.50$17.33
Recorded Video Lectures$8.00$8.80$9.24
Help Solving Assignments$15.00$16.50$17.33
Designing Exams and Tests$75.00$82.50$86.63
Direct Cost of Sales   
Individual Guidance Sessions$18,750.00 $21,862.50 $24,332.96
Recorded Video Lectures$10,000.00 $11,660.00 $12,977.58
Help Solving Assignments$18,000.00 $20,988.00 $23,359.64
Designing Exams and Tests$112,500.00 $131,175.00 $145,997.78
Subtotal Direct Cost of Sales$159,250.00 $185,685.50 $206,667.96

Personnel plan of educational website

To establish educational business websites you will need a good team with expert-level knowledge on various subjects. Some business education teacher websites operate by just being a server between freelance tutors and students. E-Acad, likewise, did the same. Instead of hiring its own faculty members for each subject, it decided to serve as a platform for connection. So its personnel plan is perfectly suitable if you’re looking for a business plan for an educational institute.

7.1 Company Staff

  • 1 Manager to manage the operations
  • 2 Software Operators to manage management software
  • 6 Content Experts/ Subject Specialists
  • 1 Web Developer to maintain business’ websites
  • 1 Financial Expert to keep a record of finances
  • 1 Graphic Designer for the development of videos and graphics

7.2 Average Salary of Employees

 Personnel Plan   
 Year 1Year 2Year 3
Software Operators$53,000$58,300$64,130
Content/ Subject Experts$205,000$225,500$248,050
Financial Expert$162,500$178,750$196,625
Web Developer$23,500$25,850$28,435
Graphic Designer$23,500$25,850$28,435
Total Salaries$498,500 $548,350 $603,185

Financial Plan of educational website

The financial plan of an educational website business is not of the usual type. Especially for the services in which the company is just acting as a server to connect clients with freelance tutors, the financial computations become complex. To facilitate you, we’re providing educational website business plan sample free of cost.

However, if you adding mental games and quiz aspects to your business, you may want to also explore educational website business plan for educational game business websites.

8.1 Important Assumptions

 General Assumptions   
 Year 1Year 2Year 3
Plan Month123
Current Interest Rate8.12%8.20%8.26%
Long-term Interest Rate8.40%8.44%8.47%
Tax Rate24.03%24.21%24.60%

8.2 Break-even Analysis

Educational Website Business Plan - Break-even Analysis
 Break-Even Analysis 
Monthly Units Break-even5340
Monthly Revenue Break-even$132,500
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 1Year 2Year 3
Sales$1,422,500 $1,749,106 $2,150,701
Direct Cost of Sales$159,250 $185,686 $206,668
TOTAL COST OF SALES$159,250 $185,686 $206,668
Gross Margin$1,263,250 $1,563,421 $1,944,033
Gross Margin %88.80%89.38%90.39%
Sales and Marketing and Other Expenses$145,000$148,000$156,000
Leased Equipment$0$0$0
Payroll Taxes$24,000$25,000$27,000
Total Operating Expenses$677,700 $731,800 $797,085
Profit Before Interest and Taxes$585,550$831,621$1,146,948
Interest Expense$0$0$0
Taxes Incurred$117,110$166,324$229,390
Net Profit$468,440$665,296$917,558
Net Profit/Sales32.93%38.04%42.66%

8.3.1 Profit Monthly

Educational Website Business Plan - Profit Monthly

8.3.2 Profit Yearly

Educational Website Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Educational Website Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Educational Website Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Educational Website Business Plan - Projected Cash Flow
 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 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
ExpendituresYear 1Year 2Year 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
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  
AssetsYear 1Year 2Year 3
Current Assets   
Accounts Receivable$24,000$26,880$30,213
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 CapitalYear 4Year 5Year 6
Current Liabilities   
Accounts Payable$18,700$20,944$23,541
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
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
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    
Sales Growth7.25%8.03%8.90%3.00%
Percent of Total Assets    
Accounts Receivable9.21%10.20%11.31%9.80%
Other Current Assets2.11%2.34%2.59%2.40%
Total Current Assets149.80%151.00%152.00%158.00%
Long-term Assets11.55%11.60%11.64%12.00%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.90%4.94%4.98%4.34%
Long-term Liabilities0.00%0.00%0.00%0.00%
Total Liabilities7.59%7.65%7.72%7.38%
NET WORTH100.45%101.25%102.19%110.00%
Percent of Sales    
Gross Margin94.60%97.15%99.87%99.00%
Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
Advertising Expenses1.52%1.56%1.60%1.40%
Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
Main Ratios    
Total Debt to Total Assets0.18%0.18%0.17%0.40%
Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
Pre-tax Return on Assets96.30%101.12%106.17%111.30%
Additional RatiosYear 1Year 2Year 3 
Net Profit Margin33.56%34.60%35.67%N.A.
Return on Equity55.80%57.53%59.31%N.A.
Activity Ratios    
Accounts Receivable Turnover7.77.87.8N.A.
Collection Days100100100N.A.
Inventory Turnover32.434.0235N.A.
Accounts Payable Turnover15.61616.3N.A.
Payment Days272727N.A.
Total Asset Turnover2.52.52.6N.A.
Debt Ratios    
Debt to Net Worth-0.04-0.03-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios    
Net Working Capital$244,000$257,664$272,093N.A.
Interest Coverage000N.A.
Additional Ratios    
Assets to Sales0.850.870.89N.A.
Current Debt/Total Assets1%0%0%N.A.
Acid Test2929.1229.16N.A.
Sales/Net Worth2.12.22.2N.A.
Dividend Payout000N.A.


  • Can I make an educational website?

Yes, anyone who possesses insight into this business can make it. For the starter, you’ll have to make educational website business plan. It would be best to get your online education business plan developed by an expert. To get an idea of what it should look like, you can read this education business plan template.

  • Which website is best for education?

Different rankings suggest different answers to this question. It is largely based on your personal requirements and level of understanding of things.

  • What is an example of an educational website?,,, and even the most commonly known and are some examples.

  • What type of website is educational?

Any website that hosts educational content comes in this domain. Educational content may cover physical education such as karate as well as academia such as engineering.

Download Educational Website Business Plan Sample in pdf