Methodology on starting a platform for online coaching for aspirants of competitive examinations. Use of Business model canvas for evaluation. Income statement and balance sheet forecasting done.

1. 1

2. CONTENT
Goal
Strategy
BMC
Sequence of Activities
Promotions
Economics
Challenge
2

3. GOAL
To create a platform for Online coaching for aspirants of
competitive examinations.
Leverage IT technology for making coaching effective and
accessible.
To act as an aggregator to connect the teachers and aspiring
students.
3

4. STRATEGY
ARENA
• Coaching for aspirants of engineering and medical colleges .
• Science Stream studying in 11th and 12th class.
VEHICLE
• Bringing Teachers and Students together on an online portal.
• All coaching needs through online portal.
4

5. STRATEGY
Differentiation
• Customised learning.
• More Choice of Teachers.
• Economical and convenient coaching
Staging
• 1st Stage : Online Coaching from reputed teachers for
engineering/medical.
• 2nd Stage: Develop own content, Expand to CAT/GMAT/GRE.
• 3rd Stage :Start coaching for other exams – UPSC/SSC/Bank P.O.
5

6. STRATEGY
Economic
Logic
• IT technology available –laptop, mobile, internet improved.
• Student’s Time & additionalities of cost can be saved through
technology.
• Teacher and student interaction can be made convenient and
revenue can be generated for the service.
6

7. Business Model Canvas
Engineering &
Medical College
Admission Aspirants
(JEE/NEET)
Digital Promotions
Customer Helpline
Monthly Interaction
Key
Partners
Key
Activities
Value
Proposition
Customer
Relationships
Customer
Segments
Key
Resources
Channels
Cost Structure Revenue Streams
Website
App
Students
Choice of Courses
Customised Learning
Quality Faculty
Low Cost
Subscription fees for Course
Revenue Sharing 80:20
Upfront fee for each course
Digital Marketing & Promotions
IT (Hosting, Server, Maintenance)
Manpower Costs
Free / Discounted Subscriptions to State Toppers
Website & App
Marketing/Promotion
Partnering Teachers
Enrolling Students
Online Platform
Video Hosting Servers
Strong Marketing team
Teachers
Coaching Centres
Technology Partners
Teachers
Increased reach
Reduced effort
7

8. ORGANISATION STRUCTURE
CEO
Software
Engineer
Video
Editors
Marketing
Execs
CA
Customer
Support
POSITION
NO OF
POSTS
SALARY
(in Lakhs)
CEO 1 -
Software
Engineer
2 12
Video Editors 3 9
Marketing
Exec
3 12.6
CA 1 7
Customer
Support Rep.
1 3.6
Total 11 44.28

9. Month Activity Sub-Activity Month End Target
May
Recruitment
CA, Software Engineer 1no, 2 nos
Marketing Representative 3 nos
Infra Leasing Office space, IT & Furniture For 15 people
June
IT Activity Website development Launch by month end
Teacher
Identification through survey
10 nos
Teacher Acquisition.
Recruitment Video Editors, Customer Rep. 3 nos / 1 no
SEQUENCE OF ACTIVITIES
9

10. Month Activity Sub-Activity Month End Target
July
Teacher
Teacher Identification &
Acquisition
15 nos
Demo Videos Demo videos from each teacher.
2 videos from each
teacher
Student
Launch courses-Open for
subscription by Students.
Go-Live
Promotions Digital promotions In multiple domains
August Teacher
Teacher Identification &
Acquisition
15 nos
Demo Video Demo videos from each teacher
2 videos from each
teacher
SEQUENCE OF ACTIVITIES
10

11. ACTIVITY May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr
Leasing Office & Equipment
Recruitment
Identifying Best Teachers
Website Development
Teacher Partnerships
Online Marketing
Student Subscriptions
Commencement of Course
`
`
`
`
`
`
`
SEQUENCE OF ACTIVITIES
11

12. PROMOTION STRATEGY
Through digital marketing - Youtube, Google Ads & Facebook Ads.
Enrolling Toppers – Top 3 Students from State & Central Board exams
will be offered free subscription for any 1 Subject of their choice.
Teachers will also do marketing for their courses hosted on Shiksha
Online.
Marketing research for Identifying the teachers.
12

13. PROMOTION BUDGET
Per Click Clicks Budget Conversion
Total
student
YouTube 10 70000 7 lakh 1% 700
Google Ad 20 45000 9 lakh 1% 450
Facebook 2 150000 3 lakh 0.50% 750
Free subscription of
course-3 toppers from
each board.
- 8 lakh - 100
Market Research-for
teachers
3 lakh
TOTAL 30 lakh 2000
13

14. 14
https://xkushank.blogspot.com/2019/04/future-of-coaching1-industry-shiksha.html

15. Facebook & Blog
15

16. ECONOMICS
Subscription Fees per Course Rs 10000/- (Avg)
Revenue Share per Course (20%) Rs 2000/-
Average Course Subscriptions per
Student
2 nos.
Revenue per Student per year Rs 10000 x 2 x 0.2 = Rs 4000/-
Average Customer Life Time Value
XIth Standard (2 years) Rs 4000 + Rs 4000 x 0.8* = Rs 7200/-
XIIth Standard (1 year) Rs 4000/-
16* Assuming 80% retention of XIth Class students into XIIth courses

17. Cost of Video Editing
ITEM CALCULATION COST
No. of Video Editors 3 nos Rs 9,00,000
Videos 40 Teachers x 200 hrs= 8000 hrs
Average Time Required to Edit 0.5 hrs x 8000 = 4000 hrs
Total Manhours Available 6 hrs x 3 x 250 days = 4500 hrs
Cost for Each Video 9 lac / 4500 = Rs 200 /hr Rs 100 per Session
Total Cost for a Subject to be
Charged to a Teacher
For 200 videos Rs 20,000/-
17

18. EARNINGS FROM STUDENTS
2020 2021 2022
No. of students XI 1300 2100 6000
No. of students XII 700 1700 4000
Average No. of Subscription 2 2 2
Fees 10000 10000 10000
Gross Revenue 40000000 76000000 200000000
Net Revenue (20%) 8000000 15200000 40000000
18

19. INCOME STATEMENT
2020 2021 2022
Revenue(20%) in 1st year 80,00,000.00 1,52,00,000.00 4,00,00,000.00
Other income
Expenses 85,00,000.00 103,28,000.00 1,16,96,900.00
Operating income -5,00,000.00 48,72,000.00 2,83,03,100.00
Depreciation (Laptops) 1,00,000.00 1,00,000.00 1,00,000.00
Profit before tax -6,00,000.00 47,72,000.00 2,82,03,100.00
Income tax - 11,93,000.00 70,50,775.00
Net income -6,00,000.00 35,79,000.00 2,11,52,325.00
Net profit margin -7.50 23.55 55.71
Breakeven no. of subscription 4,250
19

20. BALANCE SHEET
2020 2021 2022
Cash 10,00,000 46,79,000.00 2,79,04,725.00
Net property & equipment 4,00,000 3,00,000 2,00,000
Total asset 14,00,000 49,79,000 2,61,31,325
Loan for bank 0 0 0
Owners’ equity 20,00,000 20,00,000 20,00,000
Retained earning -6,00,000.00 29,79,000.00 2,41,31,325.00
Total liabilities and equity 14,00,000 49,79,000 2,61,31,325
20

21. GROWTH STRATEGY
• Students – 10000
• Teachers – 150
3 Years
Target
• Students – 25000
• Teachers – 400
• Own content development (IIT/NEET)
• Diversify to higher examinations (CAT/GRE/GMAT)
5 Years
Target
• Students – 50000
• Inclusion of Job related exams
• Own content in almost all exams
8 Years
Target
21

22. Identifying best teachers –Very important.
Teacher target for 1st year.
SUBJECT TARGET NO. OF TEACHERS
PHYSICS 10
MATHS 10
CHEMISTRY 10
BIOLOGY 10
Total 40
22
MAJOR CHALLENGE

23. Q: How to identify best teachers…???
Only students can tell us about best teachers …!!
Q: Which students to approach?
• Approach students of premier institutes-IITs/NITs/AIIMS/AFMC.
• Students in these institutes come from across India and thus no
regional bias in identifying teachers.
• Ask them about best teacher of Physics/Chemistry/Maths/Biology
according to them.
23
MAJOR CHALLENGE

24. Rank Teacher name Votes Place/City
1. Abhay Sir 115 Nagpur
2. Srnivas Sir 112 Bhilai
3. Kushank Sir 101 Delhi
4. Manish Sir 95 Bhopal
5. Ravi sir 87 Hyderabad
6. Suresh Sir 72 Chennai
7. Amit Sir 65 Noida
8. Mohit Sir 55 Jammu
EXPECTED SURVEY RESULTS:
Subject: Physics
• Approach teachers in this order and stop where acquisition target for the first year is met.24

25. BUSINESS MODEL ANALYSIS
INDUSTRY FORCES
Does your model has competitive edge today? Tomorrow ?
• Our model has first mover advantage in providing real class room experience
from reputed teachers via online mode. The convenience in selection of
individual subjects teachers is economical for students.
• Scaling our model rapidly by adding reputed teachers will create entry barrier.
KEY TRENDS
Is your model prepared for emerging trends ?
• There is a trend in coaching industry of providing free content. However, we will
create brand image of our portal through superior performance of students by
providing them quality preparation material from reputed teachers.
25

26. BUSINESS MODEL ANALYSIS
MARKET FORCES:
Is your model in line with evolving customer needs?
• Due to time constraints, shift in competitive exams from physical to online mode,
scope of wider reach and adoption of IT technology by young generation, the
future of coaching industry will be through online mode.
MACRO-ECONOMIC FACTORS:
How your model adjusts to macro-economic shifts?
• Due to increase in demand of online coaching our platform will require scaling to
cater all opportunities of online coaching business.
• Due to government initiatives for online learning of students at cheap cost , new
features will be added in our platform at frequent intervals to sustain our pricing.
26

27. THANK YOU…..
27