Learning Rocks LTD.

IGNITING MINDS, EMPOWERING FUTURES

Learning Rocks LTD. B-132 Phase 1,
Anand Vihar ,New Delhi
Business Plan
www.LearningRocks.com

Presented by :
NAMAN GOEL
TUSHAR KUMAR ROY
ANUBHAV SEXANA
ARPITA
 Executive Summary

Company Information:

“Learning Rocks. LTD” would be a privately owned company, with its headquarter in Delhi , India. The
company will be a virtual organization and all the associates of the company would function in a virtual
team format, meaning that associates would work from geographically different locations and Learning
Rocks would not have its development office. Associates would make extensive use of the internet and
technology to carry out business activities.

Company’s Mission, Vision and Value:

Value – Love and respect for individuals, growth and continuous learning are the principle values in
which Learning Rocks strongly believes. These values will dictate all the policy making decisions within
Learning Rocks.

Learning Rocks writes its mission statement as below:

“Learning Rocks mission is to become India’s number one provider of Information and Communication
Technologies to the education industry and be known for providing best in class web application products
to increase the efficiency of education institutes. Learning Rocks mission is to provide its technology
solution to 15% of the education market in Delhi by the end of December 2023 with 98% of customer
satisfaction.”

Learning Rocks writes its vision statement as below:

“Learning Rocks' vision is to transform the efficiency of the education process in India by introducing
them to new information and communications technologies.Learning Rocks would help their customers
improve the efficiency and quality of education.”

Strategic Goals:

Learning Rocks is a startup company. The short term goal of Learning Rocks is to establish itself in the
industry with at least 10 stable customers in the first two years of operations and provide a steady cash
flow for the company to enter the growth period within 3 years of its operation. Once Learning Rocks has
a portfolio of a good number of satisfied customers , approximately 10-15 large coaching class accounts
and 3 – 4 higher education institutes, it would shift its focus towards gaining the market share by focusing
more on marketing and business development.

Products and Services:

Learning Rocks would primarily focus on providing educational technologies, specializing in

management software like LMS and CMS to schools and universities and businesses in India. Initially, to
provide for some cash flow and build credibility in the market, Learning Rocks would do consulting
projects and freelance projects. At the same time, the Learning Rocks team would focus on developing
web based LMS and CMS applications which can be used by educators to improve the interactions
between teachers and students and to improve the operational efficiency.

Target Customer:

The Indian education industry is the primary customer of Learning Rocks. The Indian education industry
is mainly categorized in two markets; formal and informal markets. Formal market is the one that
provides formal education to students i.e. K-12 and higher education systems. Informal education industry
is the one that supports the formal education market. This includes pre-schools, coaching classes and
vocational training classes, ITC in the education market and books for education. ITC is a broad category
and includes all the services like e-learning content, multimedia (computers and projectors) in schools and
various software product 10 development services. Learning Rocks would provide part of the services
provided by the ITC industry (LMS and CMS) and its primary customer would be the formal education
market and the rest of the informal education industry. All the educational institutions that have a
tech-savvy student base and could benefit from managing student’s interactions and performance
information online using LMS, would be potential customers of Learning Rocks. Small and medium size
companies which need to monitor and manage their employee’s competencies with the help of CMS is
another segment of customers. By this definition, Learning Rocks considers all higher education coaching
classes, vocational classes, higher education schools and universities and small and medium size business
owners as Learning Rocks potential customers. In its initial phase, Learning Rocks would focus on
customers in Mumbai and would expand to other cities and metros in India.

Marketing and Sales strategy:

Learning Rocks would primarily target the customers through the owner’s personal contacts. At the same
time, Learning Rocks would provide access to the trial version of their software free of cost for the first
one month. Learning Rocks would also provide enrollment of the first 30 schools free to these customers.
This would enable customers to test the product and provide feedback. This will also help Learning Rocks
to establish some proof points. In the initial 2 years, Learning Rocks would employ direct sales strategy
and would engage more in marketing and sales strategies from the third year of operations. Even with the
direct sales marketing, Learning Rocks estimates 3 to 4 customer accounts each year.

Company Management:

Company’s management team includes an experienced, highly focused and dedicated team of
professionals, who have a proven track record in the industry. Apart from the founding team, the company
would hire consultants, freelance contractors and highly talented and dedicated professionals ready to
work in a virtual team format.
Operations:

Learning Rocks would rent an office space in the Delhi area. This space would serve the purpose of
setting up customer meetings and providing customer interface. Rest of the Learning Rocks development
team would function in a virtual team format. Learning Rocks would develop a detailed operating plan
with detailed information about communication protocols, timings and tools to be used to make it easier
for all to function in virtual format.

Stage of Development:

Learning Rocks Is still in the conception phase and has not actively started working on this project.
Learning Rocks estimates that it would take them six months to come up with a viable commercial
product in the market.Learning Rocks does not anticipate starting selling before October of 2023 . Once
the product is introduced in the market, Learning Rocks would give free access to initial customers to get
their feedback. Learning Rocks plans to introduce LMS products first in the market. The learning from
the first product launch would be useful and beneficial to Learning Rocks while developing CMS
products at a later stage.

Financials:

The first few months of the operation would go into development of the product. The company does not
expect to sell much in this time, except for consulting services which is not 12 considered as the
company's core business. Most of the initial investment brought in would be used by the 8th month of
operation. Company would start making positive income by the 9th month of its operation when it gets a
real paying customer. The company would start making positive profit after completing almost a year of
operations. The average profit margin is expected to be close to 40%. The company would then focus on
acquiring more customers in the coming years while simultaneously focusing on developing new products
and features in the existing products portfolio.

Initial funds and utilization:

Learning Rocks would get initial investment of Rs.20 lakh. 50% of this amount would come from private
funds. The founders of the company would hold the equity in accordance with their initial investment.
The remaining 50% of initial investment would be raised from commercial banks in the form of bank
loans.

Description of the Business

Ownership and Management Team

Learning Rocks would be a privately held company, headquartered in Delhi, India. As per the Indian
business registration regulations, a private company needs to have more than two members in the board of
directors . In the initial stage of conception, Learning Rocks would have three members in the board of
directors.

Mr. Naman Goel would be the founding member and CEO of the organization. Mr. Goel is currently
pursuing PGDM from Lloyd Business school, G.Noida . He is very well aware of the bureaucracy and
processes followed in the decision making of educational institutes in India. He would serve as the liaison
between the organization and the education market. He would also be involved in the initial process of
getting the organization incorporated and bringing it into existence. He would continue to bring in more
customers and deal with the customer logistics at the local level.

Mr. ANUBHAV SEXANA would serve as CTO (Chief Technology Officer) in this business. Ms.
Dwivedi is currently pursuing PGDM from Lloyd Business school, G.Noida and Communication
Technology field. Ms. Trivadi has worked on many projects requiring complex network designing,
web-application development and database management. Mr. SEXANA would lead the product
development team and would coordinate with all developers. She would also work as the operations
manager and would be responsible for setting up processes and policies required for smooth functioning
of day-to-day activities in the development process.

Mr. Tushar Kumar Roy would serve as the CFO of the organization. Mr. Roy is currently pursuing
PGDM from Lloyd Business school, G.Noida. His major responsibility would be to set up the accounting
and billing system for the organization. He would also be dealing with legal consultants to understand the
licensing procedures and other legal formalities required in setting up the legal system of organization.

Ms. Arpita would serve as the Co.- CFO of the organization. Ms.arpita is currently pursuing PGDM
from Lloyd Business school, G.Noida. His major responsibility would be to help Ms. Arpita that all the
thighs are going in a correct manner . He would also be dealing with legal consultants to understand the
licensing procedures and other legal formalities required in setting up the legal system of organization.

Initially, Learning Rocks would function as a virtual organization. One of the primary goals of Learning
Rocks is to promote the use of available technology in the education system and the best way to
demonstrate this to its customers is using these technologies themselves. Learning Rocks would
extensively use the online collaboration and cloud resources to work on its projects. The company would
use online meeting tools and the internet for communicating with developers. Company would look for
experienced and highly committed resources to work on the projects.

Business Model and Plan

This section is written based on the idea of a business model canvas from an introductory book on
business model generation. The canvas represents major business activities and helps in understanding the
whole business at a glance. Following section briefly describes each section of the business model canvas
and points to the sections where a particular topic is dealt with in more detail.
Customer Segment

The primary customer of Learning Rocks products would be all people associated with the education
system and using education technology. This would definitely start with teachers and students in formal
and informal markets of India. However, different customer groups have different requirements. Secondly,
the purchase decision would be made by people other than the actual 15 users of the technology. In that
sense, actual customers of Learning Rocks products would be schools, universities, coaching classes and
businesses dealing with knowledge workers. The market review and customer review sub-sections in the
marketing plan section explains the customer segmentation in more detail.

Value Proposition

As its name suggests, Learning Rocks would strive to make the process of providing education easier for
the institutes. With the introduction of its LMS, a lot of administrative tasks will be taken care of by
online databases.

This would make the work of teachers much easier and effective. With the collaborative platforms,
students would be able to get more involved. Students would be able to access required resources anytime
and from anywhere. The use of technology would increase the convenience, usability and accessibility of
the educational resources available in educational institutes. For the purchasing authorities, this would
translate into reduction in overhead cost of maintaining student records in house and related logistics.
When CMS would be introduced, it would help small and medium size businesses to track the skills of
their employees.

Managers would be able to review the skills or competency that a particular resource has (human
resource), assign competency, monitor the progress and map the performance management system to the
competency. Managers would also be able to define the competencies specific to their own company and
department and specify the exit criteria to acquire the competency. The employee, on the other hand, will
be able to view the acquired competency, set goals and plan the course work required to acquire the
assigned competency and monitor their own progress. The system would guide the employee with various
tracks by which they can acquire a particular competency and prepare accordingly. The system will
provide a 16 common platform for company managers and human resources to map the knowledge pool
of the company and fulfill the requirements for projects.

Customer Relationship

Learning Rocks would expect a lot of repeat business in the form of contract renewals from its loyal
customers, which is why maintaining good customer relationships is much more important to the
organization. Learning Rocks would make use of open source Customer Relationship Management
(CRM) software to maintain the customer database and maintain the information about customer
interactions. In the initial stage, the company would provide dedicated personal assistance to its customers
and would strive to keep improving the product offering to incorporate the automated service. Learning
Rocks would also provide detailed help documentation online.
Channels

Channels represent the means by which Learning Rocks would connect with their customers. In the
initial awareness phase, Learning Rocks would use a direct sales approach to establish the relationships
with early customer accounts. Learning Rocks will use the so-called “Freemium” approach for the
evaluation phase. Learning Rocks would provide free access to the products and would let their
customers evaluate the benefits from the product usage. Customers would be charged after the initial trial
phase. Learning Rocks would also deploy various digital marketing strategies like, creating online social
network communities, blogs and using internet advertising to attract more customers in the later stages.
For post purchase phases like services after sales, Learning Rocks Would provide a customer service help
desk to answer customer queries.

Key activities

As per the value propositions and customer relationship functions, following would be the key activities
for the Learning Rocks team.

Product Development

This would be the main activity of Learning Rocks, which would involve the phases like identifying
customer requirements, doing feasibility study, product design, software development and testing.

Marketing and Communication

Learning Rocks would also need to acquire new customers and maintain relationships with their
customers. This would involve key activities like identifying potential customers, understanding their
needs, designing customized solutions for customers, providing after-sales service and maintaining
customer helpdesk.

Business Operations

These activities would include supporting activities for ongoing business, these would include hiring
resources, establishing key partnerships, developing the operating processes, developing billing and
accounting systems, developing and establishing CRM database and related processes and policies for the
organization.
Key Resources

For providing the above services and doing the above mentioned activities, Learning Rocks would
require human resources for software development and network and technology resources for
intra-company communications.

Software developers and testers

Learning Rocks, being the virtual organization, would source its human resource talent on contractual
terms. Software consultants would be able to work from their home and would connect to company
resources and contribute their work. As mentioned in the introduction section, a lot of women
professionals seek the kind of work which can be done at work from home. In the initial stage, Learning
Rocks would use its personal contacts to get them work on the projects. Whenever required, Learning
Rocks would also use the professional talent pool from the websites such as www.freelancer.com and
www.elance.com.

Technical Resources

The other requirement for any technology company is the technology and network resources. Learning
Rocks would strive to make use of a lot of open source products and internet technologies to minimize the
costs associated with the product development. Learning Rocks would require all of its associates to own
a computer/laptop and have internet connection, to be able to work with the organization. The other major
resource that Learning Rocks would require is the available cloud infrastructure services. Learning Rocks
would host its own website and clients resources on the shared cloud infrastructure.
Competitive Advantage

In the competitive area, Learning Rocks is considering implementing “Blue Ocean Strategy '' by
providing services which are not readily available in the market space. There might be a slow adoption
curve in the beginning but once the industry appreciates the advantage of using the products of Learning
Rocks, it would not be difficult for Learning Rocks to capture the market faster and earn first mover
advantage in the field. Apart from this, Learning Rocks considers following service offerings as addition
to its competitive advantages.

Free Trial Period:

Learning Rocks would make use of the so -called “Freemium” business model, meaning it would provide
free access to its basic software capabilities to its customers for a limited amount of time. This would
enable customers to get the feel of the product and appreciate its benefits.

LMS at low cost:

Usually employing LMS in an educational institute is a very expensive exercise. The institute first of all
has to acquire the hardware and networking equipment required to deploy the setup. Developing own
LMS software or acquiring the software itself is another expensive step. And once the system is up,
maintaining that system is another step that institutes have to take care of. Learning Rocks would ensure
its customers the access to web based LMS systems which would be easy to access and maintain. And all
this will be available to the customers at the lower cost of ownership.

Services Tailored to customer’s needs

Learning Rocks understands that there is no one solution that fulfills everybody’s needs and software
solutions are no exception. In fact, software solutions require maximum customization. Learning Rocks
would provide customized services to its customer and would provide alternate design to the product if
the customer order fits certain criteria.

Dedicated personal assistance:

Learning Rocks would provide a single point of contact and full customer service to all its customers.
This would ensure dedicated personal assistance and fast adoption of new technology.

Easy to use and understand interface:

While designing its products, Learning Rocks would keep in mind that their customers are not technical
professionals but most probably educators who would have never used such technology. With this,
Learning Rocks would ensure simple and easy to follow interface design which would encourage students
and teachers to make complete use of the online system.

Complete Security and regular data backup:

Learning Rocks would also ensure the complete security of the data stored in the cloud. Learning Rocks
would keep regular backup of all the data kept on cloud and would be in position of recovering the system
faster.

Startup Summary

As per our analysis in Appendix, the company would require startup capital of Rs.7.7 lakh (~USD
15,500). In addition, since the company would not be making any sales in the initial few months from its
core business and only from the consulting services, Learning Rocks would require some reserve funds to
pay developers and meet other costs related to development and production. The startup expenses would
be funded by bank loans and personal equities. Learning Rocks intends to raise Rs. 10 lakh in startup
funds from friends by giving them equivalent equity shares in the company. At the same time, Learning
Rocks would raise Rs.10 lakh funds from banks. Learning Rocks Would use personal property as the
collateral for raising this fund. Learning Rocks would monitor its quarterly financial performance and
would seek funding from angel investors and venture capitalists after 5 years of operations if the business
model looks positive and future projections are promising. This would help Learning Rocks to do more
rigorous marketing to grow the business at a faster rate.
 Strategies

Introducing Strategy:

Learning Rocks is still in the conception stage and has not launched its business in the market. The first
objective for Learning Rocks is to gather the required resources, develop the viable product and launch
the product in the market by the end of January 2024 . The first introduction in the market at this time and
inviting personal contacts to take a free trial to test the product and improve upon that so that it could be
ready for final launch at the start of next academic year in 2024. Learning Rocks plan to implement the
following strategy for its launch.

Foundation Team:

Learning Rocks plans to create the founding team of highly dedicated and experienced professionals.
These professionals would have several years of experience in the IT development and management
and/or education industry. Each professional would share the company’s vision to provide the power of
communication technologies to the education industry to make the process of getting education easy and
fun. In this founding team, each team member will be an equal owner of the company and would be
equally committed to the progress of the company.

Operations Strategy:

One of the objectives of Learning Rocks is to establish at least five proof points of excellent product and
customer service by the end of the second year of starting the business. Learning Rocks would be able to
achieve this objective by getting the operational efficiency and clear strategies for achieving operational
excellence. Learning Rocks plans to achieve operational excellence by implementing the following
operational strategies.

Learning and Sharing Culture:

We believe that in order to be the best and high class provider of educational technology solutions, each
and every employee of Learning Rocks needs to be highly knowledgeable and always willing to learn
new technologies continuously. Learning Rocks, from the beginning, would focus on fostering the
environment of learning and sharing. Learning Rocks would encourage their employees to keep learning
continuously and expect them to share their learning to spread the knowledge within the team.

Best Practices and Professional Excellence:

Since, Learning Rocks plans to operate as a virtual organization and will hire the best talent from across
the globe; its success would greatly depend on the operating processes defined by the organizations.
Learning Rocks would excessively use online open source technologies to communicate with their
employees. Learning Rocks would invest time in learning the best practices and keep improving the
processes continuously. Learning Rocks would follow the industry standards from day one of its
operations and would be known for its process excellence.

Social Marketing:

The founding members of Learning Rocks would be the domain experts in their field and would have
extensive presence in the professional social media. Learning Rocks plans to market its products through
social media extensively. At the same time, Learning Rocks would concentrate the marketing to its
geographical location by advertising in local websites, radio stations and through direct sales channels.

Minimize operational expenses:

In the beginning of its operation, Learning Rocks would focus more on keeping its investment and
operating expenses to the minimum. Learning Rocks would make use of available open source software
to carry out its day-to-day business operations. At the same time, Learning Rocks would tap in the huge
pool of free-lancer professionals available.

Pricing strategy:

Learning Rocks understands that there is no one thing that fits all. All customers are different and have
different requirements. Therefore Learning Rocks would provide different pricing options for their
customers as described below.
Risk Assessment and Mitigation Plan

For any business, sustainability is an issue of concern in this turbulent economy. This is especially true for
technology companies. Learning Rocks would take special efforts in learning about the risks to the
organization and work towards making a formal risk management plan. In this section, Learning Rocks
has attempted to address some of the risks.

Mitigate Single Point of failure:

In any risk management plans, it is very much important for an organization to find out a single point of
failure and work to address those risks. In the case of Learning Rocks, one risk is the dependability of
cloud infrastructure and web hosting service providers. Learning Rocks would attempt to have its website
backed up weekly and ready to be hosted from different vendors in case of unavailability of the service
from existing vendors. Vendor diversification would be considered seriously while making official risk
management plan

Cyber Security:

For any web hosted application, it becomes extremely important to keep the application secure from cyber
attacks. A competent web security analyst consultant would be hired to make the website and application
secure. Cloud services have also raised questions about security. Learning Rocks would hire consultants
right before launching the products in the market to make sure all its applications and websites are secure
enough. This is much more important even for customers to gain confidence in the operation.

Customer Usage Tracking:

Learning Rocks would collect the information about the customers logging into the system and will keep
track of the usage pattern. This will help Learning Rocks to keep track of and ensure that only eligible
customers have logged in to the system. At the same time, usage patterns would enable Learning Rocks in
allocating enough hardware resources whenever needed and free up the resources when not in use. This
will help Learning Rocks function cost effectively. Monitoring usage patterns would also enable Learning
Rocks to detect early signs of product failure and 50 would give warning signals to the organization
before Learning Rocks invested heavily in any specific product.

Fund Reserves:

Learning Rocks would keep 50% of its startup cost in the funds reserve to be able to handle business
uncertainty in future.
Budget

Media Price Remark

Website Rs.40,000/year Learning Rocks would design its

own website and estimate the
Investments on cloud for hosting
a website for a year.

Collateral Material-Design Rs.50,000/year Initial collateral such as

and Printing company brochure, visiting
cards etc.

Yellow page and business Rs. 12,500/year Membership fees of business

directory listing directories. Initial listing would
be in Maharashtra Business
Directory

Google Adwords Rs.10,000/monthly Google Adwords account with

daily limits of $5 a day and 10
cents on each click

News Paper Flyers Rs 2,50,00/year 8 x 8 Flyers

Travelling, Phone calls, lunch Rs 2,50,00/year Travelling to client sites and

and recreational expenses for contacting different clients and
customers answering their phones.

Miscellaneous Expenses Rs 50,00/year

Administrative

Rent and Utilities:

Learning Rocks would have their headquarter office located in Mumbai, India. The office premise would
be rented in Anand Vihar,location. The office would only be rented once the product is fully developed
and has been tested with small coaching class owners. The 45 reasons behind renting an office space is
only to give a sense of the existence of the company to their customers. Since virtual organization is very
much a new concept in India and some customers might not get confidence if they do not see an official
setup. ‘

Office Supplies and Miscellaneous Expenses:

Learning Rocks would be working in virtual organization format and would require their employees to
use digital tools as much as possible. Other than that if company associates require additional stationary
or furniture, then they would be able to reimburse such expenses from the company account.

Professional Services:

Learning Rocks, whenever required, would be ready to hire professional services like legal services and
advertising. Business and Professional Licenses and advertising.

Registrations:

Mr. Naman Goel would be responsible for arranging required business licenses and getting the business
registration done. Learning Rocks would start the development efforts irrespective of the status of
company registration. The company is expected to be registered and incorporated by 31st October 2023.
Technology Plan

Hardware:

As of now, Learning Rocks does not want to invest in hardware and networking equipment of its own.
For this reason, Learning Rocks would make use of all digital communication technologies available
online. In addition to that Learning Rocks would use available cloud infrastructure to host its website and
web application products. By comparing the price structure of the different cloud service providers,
Learning Rocks has decided to use Amazon’s Web Services as their primary cloud infrastructure provider.
46 Besides this, Learning Rocks would require their associates to own a laptop or home computer,
webcam, microphone, speakers and internet connection of their own. This would enable associates to
communicate efficiently. Learning Rocks would provide them with the list of minimum specifications
required to be able to work.

Learning Rocks would make use of emails, chats, social networks and video chat facilities to meet online
and hold weekly meetings with all their associates.

Software:

Learning Rocks would encourage its associates to make use of open source operating systems such as
Ubuntu and Linux. This OS comes fully loaded with a graphical user interface which makes it easy to
work with. Open source software provides a range of free applications which can be used for office
applications like documentation, presentations and also web application development. Learning Rocks
would make use of available open source software to build its product architecture.

Suggestions For Additional Work

This business plan is the first plan for the venture. Business plans are usually the live document, which
needs to be updated and modified with time. The plan needs to be adjusted as per the initial learning from
development work. The financial plan would also need modifications with more accurate cost and
revenue estimations in future. Another action in future would require the backup and risk mitigation
plans. For instance, if sales forecasts are not met then what should be the course of action for the firm.

What actions the firm should take if the customer is not willing to pay the price of the product? Should
there be changes in the payment terms and pricing models? How to protect the intellectual property and
how much should the firm be spending on securing their product? All the above questions would need to
be answered before taking up the venture in future.
Financial Projections Summary

This section provides some detailed information about the expected financial performance of EasyEd Inc.

Cost And Revenue Structure

Costs:

While calculating the costs, two types of costs are considered. Fixed costs are the ones that a company
would accrue irrespective of the volume of sales. Fixed cost also has one major component, i.e. set up
cost. Initial set up cost is related to the initial establishment of the company and is considered to be
occurring only once. The other components of fixed cost calculations are like salaries of the team, rent of
the office space, website hosting and maintenance costs, fixed marketing and advertising costs,
professional memberships, and the costs of renting cloud hardware resources.

Variable costs are considered to be the percentage of sales per month. Hardware resources are considered
to be the part of this cost since the hardware infrastructure requirement would change as sales increases.
Revenue Model: In the revenue calculations, each potential client is listed as an individual revenue
source. As per the expected buying capacity of individual customers, the expected number of student
enrollment is estimated. Based on this number, an equivalent amount of revenue is considered to be
collected for the whole one year period at the start of the contractual term. For this calculation's purpose,
it is considered that customers would continue with the contract in the following year and it would
continue using the company’s product.

Revenue:

The money brought into a company by its business activities. There are different ways to calculate
revenue, depending on the accounting method employed. Accrual accounting will include sales made on
credit as revenue for goods or services delivered to the customer. Under certain rules, revenue is
recognized even if payment has not yet been received.

It is necessary to check the cash flow statement to assess how efficiently a company collects money owed.
Cash accounting, on the other hand, will only count sales as revenue when payment is received. Cash paid
to a company is known as a "receipt." It is possible to have receipts without revenue. For example, if the
customer paid in advance for a service not yet rendered or undelivered goods, this activity leads to a
receipt but not revenue.

Revenue is known as the top line because it appears first on a company's income statement. Net income,
also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed
expenses.
Financial Assumptions

For the purpose of calculations, following assumptions are done. -

● The number of enrollment from each customer is assumed based on personal judgment and the
personal information about the overall capacity of the educational institutes.
● Interest rate on the initial Rs. 10,00,000 loan is considered to be 16% pa. Similarly, opportunity
cost of personal equity of Rs.10,00,000 is considered @8%. This means that the investors would
have earned at least 8% interest on this private fund in a bank’s fixed deposit account. This
interest is considered an opportunity cost.
● The income tax, service and professional tax are counted as 30% all together.