Description
In this particular detailed explanation pertaining to universidad latinoamericana de ciencia y tecnologia social entrepreneur firm.
Universidad Latinoamericana de Ciencia y Tecnología –
ULACIT
Martha Amada Aguilar Sánchez
B.S. Business Administration
April 04, 2011
MAS Cramming Business Plan
STRICTLY CONFIDENTIAL
2
TABLE OF CONTENTS
1. BUSINESS DESCRIPTION....................................................................................................................................... 3
1.1. Enterprise Overview ...................................................................................................................................... 3
1.2. Justification .................................................................................................................................................... 5
1.3. Qualitative Research Methods ....................................................................................................................... 6
1.4. Description of venture criteria........................................................................................................................ 7
1.4.1. Business criteria .................................................................................................................................... 6
2. MARKET ANALYSIS .............................................................................................................................................. 7
2.1. Feasibility Analysis ........................................................................................................................................ 8
2.2. Industry Analysis ......................................................................................................................................... 17
2.3. Competition Analysis ................................................................................................................................... 19
2.4. Description of Target Market ....................................................................................................................... 20
3. STRATEGIC POSITIONING................................................................................................................................... 22
3.1. Strategy ........................................................................................................................................................ 22
3.2. Enterprise’s Ability to Achieve Venture Criteria ......................................................................................... 23
4. OPERATIONS ......................................................................................................................................................... 24
4.1. Description of Day-to-Day Operations ........................................................................................................ 24
4.2. Client Staffing Plan ...................................................................................................................................... 25
5. MANAGEMENT AND ORGANIZATION .......................................................................................................... 26
5.1. Organizational Charts................................................................................................................................... 26
6. MARKETING PLAN AND SALES STRATEGY .................................................................................................. 27
6.1. Slogan .......................................................................................................................................................... 27
6.2. Marketing Mix ............................................................................................................................................. 28
6.2.1. Product ................................................................................................................................................ 28
6.2.2. Place .................................................................................................................................................... 28
6.2.3. Price .................................................................................................................................................... 28
6.2.4. Promotion ........................................................................................................................................... 29
7. FINANCIALS .......................................................................................................................................................... 30
7.1. Assumptions for the Financial Model .......................................................................................................... 30
7.1.1. Start-up Assumptions .......................................................................................................................... 30
7.1.2. Monthly Expenses ............................................................................................................................... 32
7.2. Projected Financials ..................................................................................................................................... 34
7.2.1. Sales Forecast ...................................................................................................................................... 34
7.2.2. Cash flow............................................................................................................................................. 36
8. RISKS AND MITIGATION .................................................................................................................................... 37
9. REFERENCES ......................................................................................................................................................... 38
MAS Cramming
Shaping Business Future
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1. Business Description
Enterprise Overview
Description MAS Cramming is a born global firm specialized on small businesses
coaching. MAS Cramming aims to coach small businesses, PYMES,
owners to get the most of their mom and pops. MAS Cramming will
provide tools and resources to establish, develop, and run small
businesses to people with little or no knowledge regarding business
administration. Moreover, MAS Cramming will assessor current small
business in order to operate according to the law and implement a
business plan. MAS Cramming will offer businesses owners know-
how and realistic advices to set the business according to the country
regulations while having everything done professionally. MAS
Cramming will coach owners in their process to create a business plan,
strategic plan, financial plan, marketing plan, and human resources
management plan, among others. Additionally, MAS Cramming will
provide professional counsel dealing with legal issues, taxes issues,
and so forth in each Central America country where it operates.
Summarizing, MAS Cramming aims to provide small business owners
in Central American countries with guidance and support to develop
proper business plans and meet governmental regulations.
Mantra MAS Cramming
Framing Business Future
Slogan MAS Cramming for People who Want More
Target Market In the first six months of operations, MAS Cramming expects to
coach at least seven small business owners to create a business plan
and operate according to the government regulations, in Costa Rica.
After three years of operations, MAS Cramming should have 25000
small business owners in Costa Rica being coached. Additionally,
MAS Cramming will be operating in all the Central American
countries after five years of existence with offices in each place.
MAS Cramming’s target market is small business owners.
Special Features No Other Small Business Coaching Firm
Social Entrepreneur Firm
As special features, MAS Cramming will teach small
business owners to work on teams, delegate tasks, implement
business plans, and diversified operations. As a small business
coaching firm, MAS Cramming coaching purpose will aim to exert
certain level of influence on the small businesses owners till they
become naturally involved with the correct process to start or
develop a business by having business plans and obeying to the
MAS Cramming
Shaping Business Future
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government regulations. Additionally, MAS Cramming will own a
large information database offering clue on the type of market,
competition profile, best practices, conference, skill builder
activities, and so forth to improve the skills of the proprietors. Also,
MAS Cramming will offer technology and management advice for
the associates to become techno savvy and take the most out of
technology for the welfare of the businesses. Furthermore, training,
whether formal or informal, will be given to the collaborator so they
can learn the basics about management, business management,
marketing, finance, accounting, and so on. Last but not least, MAS
Cramming core activity will be the coaching. MAS Cramming will
be the foreigner in those businesses; thus, it will be easier to perceive
the problems that must be addressed immediately in the
organizations.
Unique Positioning There are several traits enabling MAS Cramming to be perceived as
unique. First of all, MAS Cramming aims to be a pioneer in its
industry. MAS Cramming will coach small business owners’ guiding
them to properly develop business plans and run the business to
make it profitable. Besides, MAS Cramming aims to approach to
real business adventurers with an intense desire to make things work
for their own sake. Most important of all, MAS Cramming emerges
as a social entrepreneur firm motivated to change the way small
business operates within their domestic markets.
MAS Cramming
Shaping Business Future
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Justification
MBA Borbón (2010) states that in Costa Rica 98.2% of the business market is composed
by micro, small, and medium enterprises. That 98.2% equals 75000 enterprises subscribed
properly by 2010. These enterprises constitute an important share of the market since they
?generate employment and income, are local development Detonators, promote competitive
markets, complement the work of the corporations, and are drivers of technological innovation?
(Límite Zero: Opiniones para el Desarrollo, 2003). Since small enterprises represent a vast area
of the business share, it is important to have these businesses operating correctly: with business
plans and under the law regulations. Most of the business owners do not have the knowledge
necessary to carry out these activities appropriately; thus, MAS Cramming appears as the perfect
solution to coach them to do it right at first.
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Qualitative Research Methods
While carrying on this search, the golden question popped out: Why your business is so
empirical? Most of the business owners interviewed affirmed they do not know a thing about
those plans. They ventured into business for pure necessity and/or opportunity. Additionally, they
expressed that they feel pleasant about the idea of having a reachable advisor to assessor them
during this process.
The Costa Rican market hosts almost 67500 small businesses without a business plan, as
stated by MBA Borbón (2010). Several interviews with business owners reaffirm this data: 9 out
of 10 businesses do not have a business plan, strategic plan, marketing plan, financial plan, or
human resource management plan regardless of the industry and its market share.
The interviewed businesses owners affirm they enter the business world after they
appreciate a gap in the market or lose their formal jobs. These people find an extraordinary
opportunity in settling down a business. However, the lack of information and knowledge force
them to shut down their business or perform malpractices that face them with legal issues.
Business owners do not want to have problems with any governmental agency due to the
lack of knowledge. The possibility to have a coaching firm working side by side with them is tenacious:
it promises several improvements on the businesses creating greater welfare. MAS Cramming aims to
accompany these small business owners in their venture into the business world.
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Description of venture criteria
Business criteria
Start-up capital
The start-up capital will be ?6,643,375.
Breakeven MAS Cramming as a social entrepreneur firm is not really concern
about the break-even point since it takes donations from business
partners, NGOs, and charge modest fees to the customers.
Nonetheless, with the expected donations and revenues, the firm will
achieve its break-even during the first year of operations, mainly on
the 10 month.
I ncome for the
non-profit
According to the sales forecast, during the first year MAS
Cramming should be making around ?10,450,000.
Customers Small businesses' owners with little or no background on Business
Administration aimed to be coached to better run their business
while developing a business plan and skills and abilities to make
better decisions coped with the government's regulations.
Alliances MAS Cramming will ally with for profit organizations such as bank-
public and privates, corporations, and any other huge company with
a corporate social responsibility program. As well, MAS Cramming
will work hand-by-hand with NGOs and other social entrepreneur
firms.
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2. Market Analysis
Feasibility Analysis
Part 01: Strength of Business Idea
Low Potential (-
1)
Moderate
Potential (0)
High Potential
(+1)
Explanation
Extent to which
the idea:
Weak Moderate Strong
1. Takes
advantage of
an
environmental
trend
?
It does not
apply to MAS
Cramming as a
coaching firm.
2. Solves a
problem
?
MAS
Cramming
aims to
assessor
uneducated
small business
owners.
3. Addresses an
unfilled gap in
the
marketplace
?
Currently, there
is no small
firms’ coaching
small business
in the market.
Timeliness of
entry to market
Not timely Moderately
timely
Very timely There is
opportunity in
the market, but
the habit to use
coaching firms
must be
?
created to
boost this
opportunity.
Extent to which
the idea "adds
value" for its
end user
Low Medium High Small
businesses that
have all his
papers
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according to
the government
regulations
?
and implement
business plans
are more likely
to classify for
financial aid.
Extent to which
the customer is
satisfied by
competing
products that are
already available
Very satisfied Moderately
satisfied
Not very
satisfied or
Ambivalent
There is no
other firm
alike.
?
Coaching is
available only
for corporate
companies.
Degree to which
the idea requires
customers to
change their basic
practices or
behaviors
Substantial
changes
required
Moderate
changes
required
Small to no
changes
required
?
This is a
pioneer firm
trying to
change the way
mom and pops
are run.
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Part 02: Industry-Related Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Number of
Competitors
Many Few None
?
MAS
Cramming has
no direct
competitors.
Stage of the
industry life
cycle
Maturity phase
or decline
phase
Growth phase Emergence
phase
?
Small
businesses
coached are
making them
path in the
business world
nowadays.
Growth rate of
industry
Little or no
growth
Moderate
growth
Strong growth
?
Business
coaching is
increasing
worldwide.
Importance of
industry's services
to customers
Ambivalent Would like to
have
Must have
?
Business must
have a business
plan and fulfill
government’s
dispositions for
their sake.
Industry operating
margins
Low Moderate High
?
MAS
Cramming
requires mostly
human capital
and charges
subjective
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tariffs.
Part 03: Target Market and Customer-Related Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Identification of
target market for
the proposed
new ventures
Difficulty to
identify
May be able to
identify
Identifies
?
MAS
Cramming
targets small
business
owners, mostly
business
uneducated.
Ability to create
"barriers to entry"
for potential
competitors
Unable to create May or may not
be able to create
Can create
?
Know-how
works as the
primary barrier
to entry.
Purchasing
power of
customers
Low Moderate High
?
Potential
customers are
new or mature
small business
owners with a
moderate
purchasing
power.
Ease of making
customers aware
of the new service
Low Moderate High
?
MAS
Cramming can
make
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customers
aware of its
existence by
using the
communication
channels of
banks, word of
mouth, and
traditional
marketing ads.
Growth potential
of target market
Low Moderate High
?
Currently,
small
businesses
account for a
98% of the
business
market but up
to 85% neither
have a business
plan nor fulfill
government
regulations.
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Part 04: Founder Related Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Founder
experience in
the industry
No experience Moderate
experience
Experienced
?
Martha Amada
has worked on
business plan
elaborating in
the real
business world.
Founder's skills as
they relate to the
proposed new
venture's service
No skills Moderate skills Skilled
?
Martha Amada
has the
necessary
knowledge to
elaborate
business plans
and is aware of
the government
business
regulations.
Extent of the
founder's
professional and
social networks
in the relevant
industry.
None Moderate Extensive
?
Martha Amada
has the
professional
nexus as well
as the social
one to carry on
this venture.
Extent to which
the proposed new
ventures meets
Weak Moderate Strong
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the founder's
personal goals
and aspirations.
?
Martha Amada
looked at this
as her possible
Corporate
Social
Responsibility
once she is an
entertainment
mogul.
Likelihood that a
team can be put
together to launch
and grow the new
venture.
Unlikely Moderately
likely
Very likely
?
A group of
experts in
different areas
is
contemplated
to join this
project.
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Part 05: Financial Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Initial capital
investment
High Moderate Low
?
MAS
Cramming
need few
material things
to operate.
Number of
revenue drivers
(ways in which
the company
makes money)
One Two or three More than three
?
MAS
Cramming will
offer a wide
variety of
services.
Time to break
even
More than two
years
One or two
years
Less than one
year
?
MAS
Cramming is
expected to
reach its break
even around
the six month
of operations.
Financial
performance of
similar businesses
Weak Moderate Strong
?
Corporate
coaching firms
do plenty of
money only on
coaching them
twice a year at
the most.
Ability to fund
initial service,
development
Low Moderate High
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and/or initial
start-up expenses
from personal
funds or via
bootstrapping.
?
Funder own the
necessary
capital to
invest in this
venture.
Score (-5 to +1) Overall Potential of the business idea based on each part Suggestions for
improving the
potential
High Moderate Low
Part 01:
Strength of
Business Idea
5 2
Part 02:
Industry-Related
Issues
5
Part 03: Target
Market and
Customer-
Related Issues
2 2 1
Part 04:
Founder-
Related Issues
4 1
Part 05:
Financial
Issues
4 1
Overall
Assessment
20 6 1
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Industry Analysis
I ndustry analysis Porter’s Five Forces
Competition
Force
Threat to Industry Profitability Explanation
Low Medium High
Threat of
substitutes
?
No threat of
substitutes
since there is
any small
business
coaching, only
corporate
business.
Threat of new
entrants
?
No small
business
coaching firms
yet, so the
possibility to
enter the
market new
firms is high.
Rivalry among
existing firms
?
None.
Bargaining
power of
suppliers
?
Little since the
greatest
suppliers will
be the same
collaborators
of the firms
and the
business
owners.
Bargaining
power of
?
Since the firm
will deal with
5 Buyer Power
4 Substitutes
1 Supplier Power
2 Barriers to entry
3 Competitor rivalry
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buyers small business
owners, their
purchasing
power may
vary.
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Competition Analysis
No competition analysis was carried formally since there is no direct competition for the
firm in the domestic market. Nonetheless, an internal competitive analysis is showed bellow:
MAS Cramming Explanation
Service Features Various MAS Cramming offers a
wide variety of services for
small business owners.
User engagement High MAS Cramming will boost
the productivity and
increase the value of the
business through the
implementation of business
plans and governmental
regulations.
Durability Long The business plan can be
used for at least five years.
User feedback Strong MAS Cramming will work
with and for the mom and
pops owners.
Benefits High Small business with
business plan that obey the
law are more likely to
obtain financial aid and
generate greatest profit.
Price Subjective Fees may vary according to
the purchasing power of
the client.
Customer Service High MAS Cramming will work
side by side with people
offering a high quality one
on one service.
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Description of Target Market
Type of Market Segment Shared Group Characteristics
Demographic & Geographic Segment Small Businesses’ owners aging from 25 to
50 years old belonging to low to medium
class living in any Central America
country. Ideally, they should have some
dependents to support and many dreams to
fulfill willing to go further and venture
into businesses.
Psychographic Segment They exemplify hard-working citizens
pursuing their ?American dream? within
the boundaries of their home country,
preferable. Most of them lease the places
where they make businesses and have little
or none business administration
background.
Used-based Segment Mom and pops’ owners should be coached
in every step of the business planning,
whether the business is a start-up or not.
Once the planning is done, some follow up
sessions should take place till the business
position itself in a good position within its
industry.
Benefit Segment Small business with a business plan
containing vital information have greater
chances to success and be eligible for
loans or foreign investments to expand
operations. Meanwhile, the owners have
realistic guidelines to measure the
enterprise’s progress. Additionally, the
business will operate according to the
government’s regulations and laws.
Market Size & Expected Growth In Costa Rica, the 98.2% of the businesses
represent micro, small, and medium
enterprises. Nowadays, the 15.7% are
small business; while a 78.3% are micro
business. From micro businesses, by 2012
the 45% are expected to growth till they
become small business employing more
than 10 employees with greater profits
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(Borbón, 2010).
Size of Target Market Accordingly to some statistics provided by
Banco Popular, a 79% of the business in
the market are PYMES. Therefore, MAS
Cramming's target market it is that 79% of
the total market in Costa Rica.
Trent in Target Market Most of the PYMES enters the market due
to a need for profit. Thus, the owners do
not look beyond their current needs and
neither plan for the future nor properly set
their business up.
In sum, MAS Cramming targets small businesses’ owners between the ages of 25 and 50
with little or none business administration background venturing into the business world
looking forward to properly set up their enterprises, whether they are start-up or not.
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3. Strategic Positioning
Strategy
Goal Diminish the number of empirical PYMES owners in Costa Rica. A
60% of the total PYMES in Costa Rica should go under our
coaching program developing a complete and accurate business
plan.
Competitive
advantage
MAS Cramming rears as a social entrepreneurship firm pioneering
the coaching industry for PYMES owners in Costa Rica.
Logic MAS Cramming ventures into the business world to make the
difference and boost the growth opportunities for mom and pops'
owners-who lack the business administration, accounting, financial,
legal, marketing, among other background—making them better
qualified for leases while fixing all their attention in tangible goals.
Scale MAS Cramming must be a born global firm to afford all the
expenses in aid of achieving its social objectives.
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Enterprise’s Ability to Achieve Venture Criteria
Social criteria Current need for coaching firms giving a helping hand to small
businesses' owners to be better off doing their own thing.
Success in existing social services companies performing the same
actions abroad.
Understanding of target market's needs and allies' needs.
Financial criteria Operational effectiveness
Fundraising ability
Business expertise: business partners know-how.
Reinvestment strategy: modest fees charges.
Strategic alliances: banks, NGOs, and corporations with a Corporate
Social Responsibility program.
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4. Operations
Description of Day-to-Day Operations
Working hours Monday to Friday from 09 o'clock to 17 o'clock. Saturday only by
appointment.
Purchasing Once a month office supplies will be purchased.
I nstallations An office building will be lease. Additionally, some meetings will
take place at the small businesses' owners' place.
Supervision A biweekly luncheon staff meeting will take. Meanwhile, daily
update will be shared thru the Omnifocus platform.
Training Two weeks paid training will take place before starting operations.
Once operations start, a monthly workshop in-house or off-house
will take place.
Planning and
scheduling
A weekly common agenda will be developed on Fridays. While a
common plan will be made up during the biweekly meetings. Also,
the use of platforms such as Omnifocus and Omniplan will help to
take the most out of these processes on a daily basis.
J ob placement People handling with the customers will be front line customer
service agents with only one supervisor who reports directly to
management. The cleaning, accounting, and legal staff will be
outsourced; thus they will report to management, too.
Support Every collaborator will have full control over their customers'
account with the possibility of having the rest of the team
intervening and helping when requested.
Order fulfillment
and customer
service
MAS Cramming will work with some business templates as the
foundation for every business plan developed for the mom and pops.
However, those templates can and must be adapted to every
customer’s needs. MAS Cramming will work as a service customer
which high standards will be set to treat properly the customers and
do the best for their sake.
Facilities
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Client Staffing Plan
Recruiting Throughout the strategies alliances formed with the banks, NGOs,
and other related enterprises in the current market, MAS Cramming
staff will reach its target market. MAS Cramming can attend some
business fairs and do some convocation events to call people in.
However, the primary recruiting event will take place after a
massive conference-workshop in which 100 PYMES owners will be
selected.
Retention Once the people have being recruited, they will be retained thru the
follow ups and the constant coaching. It will pay off soon since the
business will ameliorate their situation and move to a better position
being able to take advantages of the multiple advantages for
properly founded enterprises with a business plans. Meanwhile, the
owners will learn and improve their abilities and skills making
better and more assertive decisions.
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5. Management and Organization
Organizational Charts
MAS Cramming is led by its founders Martha Amada. Martha Amada has several years
of experience in the business world. In addition, others business administrators, marketers,
accounts, and finances will join the MAS Cramming.
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6. Marketing Plan And Sales Strategy
Slogan
MAS Cramming for People who Want More
There is a meaningful reason to go for this slogan. First of all, it is important to be
knowledgeable regarding the name. MAS Cramming really stands for Marshal Ameliorate
Success Cramming. MAS Cramming aspirates to be there for people who want to run their
small business in the right way with all the business administration papers and parameters as
well as legal documents required for an ulterior purpose. Therefore, ?MAS Cramming for People
who Want More? perfectly fits and reflects the desires of this project.
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Marketing Mix
Product
MAS Cramming will provide a superior and unique service for small businesses’ owners.
MAS Cramming desires to coach mom and pops until they develop proper and useful business
plans accordingly to each business’s needs. Besides, MAS Cramming aspirates to teach owners
the basics for running their companies under the law regulations; while making business
decisions based on knowledge acquire throughout the informative sessions that MAS Cramming
will offer them. The people involved with this initiative do not hold any B.S or B.A. on Business
Administration or related careers. Thus, MAS Cramming offers a unique opportunity to small
businesses’ owners to acquire the abilities, knowledge, skills, and tools to be effective proprietors
while carrying on their businesses the right way.
Place
MAS Cramming has two ways to call in people to be coached and advised. MAS Cramming,
as a social entrepreneur firm, aspirates to reach the low and medium class small businesses’
owners aimed to develop business plans and learn about the business world from more
experienced people. One way is through alliances with key players for the small businesses’
owners. MAS Cramming will align with cooperatives, banks, and other organizations that seek
the well being of these enterprises’ owners to reach them. MAS Cramming will have access to
their database turning into an insight view of the real and current needs of these people. In turn,
the allies will have better qualified companies requesting their services. In addition, MAS
Cramming will convene an open conference. One hundred small businesses’ owners will attend
an intense forum featuring the basics for developing a business plan plus a brief introduction to
the services offered by MAS Cramming. After this conference, interested participants will apply
to be coached and advised by MAS Cramming’s experts. Only, twenty people will be chosen for
the pilot of this venture.
Price
MAS Cramming exemplifies a born global social entrepreneur firm. Therefore, prices are not
that important for the organization. Nonetheless, MAS Cramming will charge fees below the real
price since it is more concern about generating a change in the way small businesses are run.
Each participant will be charge based on his or her company’s gross profit; the range will be
from 5 to 15% after a careful and honest examination to the past and present business’ gross
profit. Nonetheless, it is important to set as a reference price ?100000.Consequently, fees charge
shows two differentiators: fees will vary among coached owners and be below the real
operations’ costs.
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Promotion
MAS Cramming does not offer any kind of commercial promotion since it is a social
entrepreneur firm. However, MAS Cramming will offer some incentives to the businesses’
owners engaged in this venture. MAS Cramming will offer two informative sessions free of
charge for any person interested in being coached and advised. In addition, MAS Cramming will
have an annual conference where all the coached businesses’ owners will have the opportunity to
exchange information among them while learning other small businesses’ owners’ best-practices
from abroad. Most important, MAS Cramming’ users will have all access information to the
latest news dealing with banks, loans, investments, businesses’ practices, and other related
subjects.
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7. Financials
Assumptions for the Financial Model
Start-up Assumptions
The start-up investment needs to be equal or greater to ?6,643,375.
MAS Cramming
Start up Cost Sheet
Item Cost
Office building ?50.000
8 chairs 800000
Table 100000
4 Desks 250000
4 Computer Chairs 350000
4 Notebooks 1247400
1 e-All-in-One Printer 108900
5 Telephones 80000
Printer Paper 5000
Pens 4000
Post-it® notes 3600
6 Staplers 6000
6 Scotch Tape 3000
6 bottles of Glue 3000
5 Plastic Seals 4500
Bathroom supplies 10000
Cleaning supplies 20000
6 Calculators 30000
5 Calendars 2500
5 Yearly Planner Calendars 3000
1 Coffeemaker 50000
Copyholders 20000
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3 Cork boards 40000
Envelopes 1000
Mailing labels 2500
Manila folders 1500
Markers 3500
Paper Clips 500
Rubber bands 500
6 Scissors 2000
6 Telephone headsets 600000
1 ER Equipment 800000
1 Medium size white board 60000
Toners 45000
Staple remover 2300
Staples 1000
Hole punch 2400
Plastic labels tabs 600
Ring binders 2500
Lined note paper 40000
Colored paper 2500
3 Wall clocks 600000
3 Mobile File Carts 120000
6 Desk top file organizers 50000
1 Microsoft Office Professional License 247500
1 iWork License 39600
4 Notebooks stands 40000
1 Supplies organizer 50000
6 task clips 40000
4 Mouses 180000
1 Omniplan License 111375
1 OmniFocus License 59400
1 Kaspersky Small Business Security License 89100
1 MAC Keeper License 198000
1 OmniOutliner License 29700
Internet 30000
Total ?6.643.375
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Monthly Expenses
The monthly expenses will be equal or greater to ?1,147,250.
MAS Cramming
Monthly Expenses
Item Cost
ADMINITRASTIVE
Payroll
Payroll ?75.000
Sales Commissions ?0
CCSS (48%) ?36.000
13th month 6.250,00?
Vacations ?0
Total Payroll ?117.250
Utilities
Water ?15.000
Phones ?25.000
Electricity ?15.000
Internet ?10.000
Security ?45.000
Rent ?500.000
Total Utilities ?610.000
Professional Services
Lawyer ?10.000
Accountant ?100.000
IT Team ?100.000
Total Services ?210.000
Marketing
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Brochures ?0
Facebook ?10.000
Website ?200.000
Radio ?0
TV ?0
Newspaper ?0
Total Marketing ?210.000
Taxes
Sales Tax (13% Sales) ?0
Municipal Tax (1% Sales) ?0
Income Tax (30% profit) ?0
Loans
Interest ?0
Payment on principal ?0
Total Loans ?0
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Projected Financials
Sales Forecast
The expected sales forecast yearly will be ?10,850,000. Meanwhile, the expected monthly
sales will be ?1,250,000.
MAS Cramming
Sales Forecast
Week Quantity
Sold
Average
Price
Total Price
1 4
?100.000
?400.000,00
2 3
?100.000
?300.000,00
3 3
?100.000
?300.000,00
4 5
?50.000
?250.000,00
5 2
?100.000
?200.000,00
6 2
?100.000
?200.000,00
7 3
?100.000
?300.000,00
8 2
?100.000
?200.000,00
9 1
?50.000
?50.000,00
10 2
?100.000
?200.000,00
11 3
?100.000
?300.000,00
12 2
?100.000
?200.000,00
13 2
?100.000
?200.000,00
14 1
?50.000
?50.000,00
15 4
?100.000
?400.000,00
16 1
?50.000
?50.000,00
17 1
?50.000
?50.000,00
18 2
?100.000
?200.000,00
19 5
?100.000
?500.000,00
20 2
?100.000
?200.000,00
21 0
?50.000
?0,00
22 2
?100.000
?200.000,00
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23 2
?100.000
?200.000,00
24 6
?100.000
?600.000,00
25 2
?100.000
?200.000,00
26 1
?50.000
?50.000,00
27 5
?100.000
?500.000,00
28 2
?100.000
?200.000,00
29 2
?100.000
?200.000,00
30 1
?50.000
?50.000,00
31 2
?100.000
?200.000,00
32 2
?100.000
?200.000,00
33 4
?100.000
?400.000,00
34 2
?100.000
?200.000,00
35 4
?100.000
?400.000,00
36 2
?100.000
?200.000,00
37 2
?100.000
?200.000,00
38 2
?100.000
?200.000,00
39 2
?100.000
?200.000,00
40 2
?100.000
?200.000,00
41 2
?100.000
?200.000,00
42 1
?50.000
?50.000,00
43 2
?100.000
?200.000,00
44 2
?100.000
?200.000,00
45 2
?100.000
?200.000,00
46 2
?100.000
?200.000,00
47 2
?100.000
?200.000,00
48 2
?100.000
?200.000,00
49 2
?100.000
?200.000,00
50 1
?50.000
?50.000,00
51 0
?100.000
?0,00
52 0
?100.000
?0,00
?10.850.000,00
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Cash flow
Since MAS Cramming is a social entrepreneurship enterprise, it will take several donations
throughout the year from partner associations or NGOs. Thus, these additional sources are
considered and average donations sums are added as additional sources of cash.
MAS Cramming
Yearly Cash Flow
REVENUE
Revenue from sales
?10.850.000
Additional Sources ?12.000.000
Total Revenue ?22.850.000
EXPENSES
Payroll ?1.641.500
Utilities ?8.540.000
Professional Services ?10.181.500
Marketing ?0
Loans ?0
Taxes ?0
Total Expenses ?9.754.250
INITIAL CASH ?422.288.250
TOTAL REVENUE ?21.950.000
TOTAL EXPENSES ?444.238.250
FINAL CASH ?434.484.000
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8. Risks and Mitigation
Risk Mitigation
Market risk Customer might not look for our
coaching.
Diversified operations while
turning more to the consulting
part of the business.
Competitive risk There is no direct competition.
Thus, we compete against
everybody who have the
resources and channels to enter
our market, especially consulting
firms.
Do the best and develop a brand
name and love to be the top of
mind in the industry. Also,
distinguish the company for its
great, efficient, and amicable
customer service.
Social mission risk People's apathy and
unwillingness to be coached in
order to be better businesses'
owners taking full advantages of
the market opportunities. The
pricing strategy can pull the
trigger and maximize the risks.
Since their no a fix price, people
might distortion their numbers to
be charged less. When the
company does not reach its
financial goal for at least four
months, a review to the current
policy will be required.
Develop awareness among the
target market related to the
importance of being coached and
have a business plan.
Additionally, develop strong
alliances with for profit-firms
and NGOs. Also, keep the
expenses at the minimum and
operational activities closely
supervised to achieve low costs.
Social Enterprise Business Plan Template
[Escribir el nombre de la compañía]
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9. References
Abrego, K. (2011). Personal Communication.
Barringer, B. (2009) Entrepreneurship: Successfully Launching New Ventures. 3rd
Edition. Prentice Hall: New York, NY.
Borbón, G. MBA (2010). Estrategia del Banco Popular hacia las Micro, Pequeñas y Medianas
Empresas. Museo de los Niños, San José, Costa Rica.
Corea, J. (2011). Personal Communication.
Chávez, I. (2011). Personal Communication.
Dees, G. (2008). Origin and Future of Social Entrepreneurship. Duke University's Fuqua School
of Business: Center for the Advancement of Social Entrepreneurship.
Figueroa, C. (2011). Personal Communication.
Hernández, A. (2011). Personal Communication.
Límite Zero: Opiniones para el Desarrollo (2003). Hacia un Nuevo Paradigma en Consultoría en
la MYPE. ¿Asesoría a Dueños de Empresas o a Empresarios?. Retrieved From SERCAL
website from: www.sercal.es/.
López, G. (2011). Personal Communication.
Rodríguez, V. (2011). Personal Communication.
Small Business (2011). Retrieved from Small Business website from:http://www.small
business.co.uk/.
Solís, D. (2011). Personal Communication.
Target Market (2011). Retrieved from Small Business Notes from:http://www.small
businessnotes.com/marketing-your-business/target-market.html.
Valle, C. (2011). Personal Communication.
Zapata, L. (2011). Personal Communication.
doc_245449147.pdf
In this particular detailed explanation pertaining to universidad latinoamericana de ciencia y tecnologia social entrepreneur firm.
Universidad Latinoamericana de Ciencia y Tecnología –
ULACIT
Martha Amada Aguilar Sánchez
B.S. Business Administration
April 04, 2011
MAS Cramming Business Plan
STRICTLY CONFIDENTIAL
2
TABLE OF CONTENTS
1. BUSINESS DESCRIPTION....................................................................................................................................... 3
1.1. Enterprise Overview ...................................................................................................................................... 3
1.2. Justification .................................................................................................................................................... 5
1.3. Qualitative Research Methods ....................................................................................................................... 6
1.4. Description of venture criteria........................................................................................................................ 7
1.4.1. Business criteria .................................................................................................................................... 6
2. MARKET ANALYSIS .............................................................................................................................................. 7
2.1. Feasibility Analysis ........................................................................................................................................ 8
2.2. Industry Analysis ......................................................................................................................................... 17
2.3. Competition Analysis ................................................................................................................................... 19
2.4. Description of Target Market ....................................................................................................................... 20
3. STRATEGIC POSITIONING................................................................................................................................... 22
3.1. Strategy ........................................................................................................................................................ 22
3.2. Enterprise’s Ability to Achieve Venture Criteria ......................................................................................... 23
4. OPERATIONS ......................................................................................................................................................... 24
4.1. Description of Day-to-Day Operations ........................................................................................................ 24
4.2. Client Staffing Plan ...................................................................................................................................... 25
5. MANAGEMENT AND ORGANIZATION .......................................................................................................... 26
5.1. Organizational Charts................................................................................................................................... 26
6. MARKETING PLAN AND SALES STRATEGY .................................................................................................. 27
6.1. Slogan .......................................................................................................................................................... 27
6.2. Marketing Mix ............................................................................................................................................. 28
6.2.1. Product ................................................................................................................................................ 28
6.2.2. Place .................................................................................................................................................... 28
6.2.3. Price .................................................................................................................................................... 28
6.2.4. Promotion ........................................................................................................................................... 29
7. FINANCIALS .......................................................................................................................................................... 30
7.1. Assumptions for the Financial Model .......................................................................................................... 30
7.1.1. Start-up Assumptions .......................................................................................................................... 30
7.1.2. Monthly Expenses ............................................................................................................................... 32
7.2. Projected Financials ..................................................................................................................................... 34
7.2.1. Sales Forecast ...................................................................................................................................... 34
7.2.2. Cash flow............................................................................................................................................. 36
8. RISKS AND MITIGATION .................................................................................................................................... 37
9. REFERENCES ......................................................................................................................................................... 38
MAS Cramming
Shaping Business Future
3
1. Business Description
Enterprise Overview
Description MAS Cramming is a born global firm specialized on small businesses
coaching. MAS Cramming aims to coach small businesses, PYMES,
owners to get the most of their mom and pops. MAS Cramming will
provide tools and resources to establish, develop, and run small
businesses to people with little or no knowledge regarding business
administration. Moreover, MAS Cramming will assessor current small
business in order to operate according to the law and implement a
business plan. MAS Cramming will offer businesses owners know-
how and realistic advices to set the business according to the country
regulations while having everything done professionally. MAS
Cramming will coach owners in their process to create a business plan,
strategic plan, financial plan, marketing plan, and human resources
management plan, among others. Additionally, MAS Cramming will
provide professional counsel dealing with legal issues, taxes issues,
and so forth in each Central America country where it operates.
Summarizing, MAS Cramming aims to provide small business owners
in Central American countries with guidance and support to develop
proper business plans and meet governmental regulations.
Mantra MAS Cramming
Framing Business Future
Slogan MAS Cramming for People who Want More
Target Market In the first six months of operations, MAS Cramming expects to
coach at least seven small business owners to create a business plan
and operate according to the government regulations, in Costa Rica.
After three years of operations, MAS Cramming should have 25000
small business owners in Costa Rica being coached. Additionally,
MAS Cramming will be operating in all the Central American
countries after five years of existence with offices in each place.
MAS Cramming’s target market is small business owners.
Special Features No Other Small Business Coaching Firm
Social Entrepreneur Firm
As special features, MAS Cramming will teach small
business owners to work on teams, delegate tasks, implement
business plans, and diversified operations. As a small business
coaching firm, MAS Cramming coaching purpose will aim to exert
certain level of influence on the small businesses owners till they
become naturally involved with the correct process to start or
develop a business by having business plans and obeying to the
MAS Cramming
Shaping Business Future
4
government regulations. Additionally, MAS Cramming will own a
large information database offering clue on the type of market,
competition profile, best practices, conference, skill builder
activities, and so forth to improve the skills of the proprietors. Also,
MAS Cramming will offer technology and management advice for
the associates to become techno savvy and take the most out of
technology for the welfare of the businesses. Furthermore, training,
whether formal or informal, will be given to the collaborator so they
can learn the basics about management, business management,
marketing, finance, accounting, and so on. Last but not least, MAS
Cramming core activity will be the coaching. MAS Cramming will
be the foreigner in those businesses; thus, it will be easier to perceive
the problems that must be addressed immediately in the
organizations.
Unique Positioning There are several traits enabling MAS Cramming to be perceived as
unique. First of all, MAS Cramming aims to be a pioneer in its
industry. MAS Cramming will coach small business owners’ guiding
them to properly develop business plans and run the business to
make it profitable. Besides, MAS Cramming aims to approach to
real business adventurers with an intense desire to make things work
for their own sake. Most important of all, MAS Cramming emerges
as a social entrepreneur firm motivated to change the way small
business operates within their domestic markets.
MAS Cramming
Shaping Business Future
5
Justification
MBA Borbón (2010) states that in Costa Rica 98.2% of the business market is composed
by micro, small, and medium enterprises. That 98.2% equals 75000 enterprises subscribed
properly by 2010. These enterprises constitute an important share of the market since they
?generate employment and income, are local development Detonators, promote competitive
markets, complement the work of the corporations, and are drivers of technological innovation?
(Límite Zero: Opiniones para el Desarrollo, 2003). Since small enterprises represent a vast area
of the business share, it is important to have these businesses operating correctly: with business
plans and under the law regulations. Most of the business owners do not have the knowledge
necessary to carry out these activities appropriately; thus, MAS Cramming appears as the perfect
solution to coach them to do it right at first.
MAS Cramming
Shaping Business Future
6
Qualitative Research Methods
While carrying on this search, the golden question popped out: Why your business is so
empirical? Most of the business owners interviewed affirmed they do not know a thing about
those plans. They ventured into business for pure necessity and/or opportunity. Additionally, they
expressed that they feel pleasant about the idea of having a reachable advisor to assessor them
during this process.
The Costa Rican market hosts almost 67500 small businesses without a business plan, as
stated by MBA Borbón (2010). Several interviews with business owners reaffirm this data: 9 out
of 10 businesses do not have a business plan, strategic plan, marketing plan, financial plan, or
human resource management plan regardless of the industry and its market share.
The interviewed businesses owners affirm they enter the business world after they
appreciate a gap in the market or lose their formal jobs. These people find an extraordinary
opportunity in settling down a business. However, the lack of information and knowledge force
them to shut down their business or perform malpractices that face them with legal issues.
Business owners do not want to have problems with any governmental agency due to the
lack of knowledge. The possibility to have a coaching firm working side by side with them is tenacious:
it promises several improvements on the businesses creating greater welfare. MAS Cramming aims to
accompany these small business owners in their venture into the business world.
MAS Cramming
Shaping Business Future
7
Description of venture criteria
Business criteria
Start-up capital
The start-up capital will be ?6,643,375.
Breakeven MAS Cramming as a social entrepreneur firm is not really concern
about the break-even point since it takes donations from business
partners, NGOs, and charge modest fees to the customers.
Nonetheless, with the expected donations and revenues, the firm will
achieve its break-even during the first year of operations, mainly on
the 10 month.
I ncome for the
non-profit
According to the sales forecast, during the first year MAS
Cramming should be making around ?10,450,000.
Customers Small businesses' owners with little or no background on Business
Administration aimed to be coached to better run their business
while developing a business plan and skills and abilities to make
better decisions coped with the government's regulations.
Alliances MAS Cramming will ally with for profit organizations such as bank-
public and privates, corporations, and any other huge company with
a corporate social responsibility program. As well, MAS Cramming
will work hand-by-hand with NGOs and other social entrepreneur
firms.
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2. Market Analysis
Feasibility Analysis
Part 01: Strength of Business Idea
Low Potential (-
1)
Moderate
Potential (0)
High Potential
(+1)
Explanation
Extent to which
the idea:
Weak Moderate Strong
1. Takes
advantage of
an
environmental
trend
?
It does not
apply to MAS
Cramming as a
coaching firm.
2. Solves a
problem
?
MAS
Cramming
aims to
assessor
uneducated
small business
owners.
3. Addresses an
unfilled gap in
the
marketplace
?
Currently, there
is no small
firms’ coaching
small business
in the market.
Timeliness of
entry to market
Not timely Moderately
timely
Very timely There is
opportunity in
the market, but
the habit to use
coaching firms
must be
?
created to
boost this
opportunity.
Extent to which
the idea "adds
value" for its
end user
Low Medium High Small
businesses that
have all his
papers
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according to
the government
regulations
?
and implement
business plans
are more likely
to classify for
financial aid.
Extent to which
the customer is
satisfied by
competing
products that are
already available
Very satisfied Moderately
satisfied
Not very
satisfied or
Ambivalent
There is no
other firm
alike.
?
Coaching is
available only
for corporate
companies.
Degree to which
the idea requires
customers to
change their basic
practices or
behaviors
Substantial
changes
required
Moderate
changes
required
Small to no
changes
required
?
This is a
pioneer firm
trying to
change the way
mom and pops
are run.
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Part 02: Industry-Related Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Number of
Competitors
Many Few None
?
MAS
Cramming has
no direct
competitors.
Stage of the
industry life
cycle
Maturity phase
or decline
phase
Growth phase Emergence
phase
?
Small
businesses
coached are
making them
path in the
business world
nowadays.
Growth rate of
industry
Little or no
growth
Moderate
growth
Strong growth
?
Business
coaching is
increasing
worldwide.
Importance of
industry's services
to customers
Ambivalent Would like to
have
Must have
?
Business must
have a business
plan and fulfill
government’s
dispositions for
their sake.
Industry operating
margins
Low Moderate High
?
MAS
Cramming
requires mostly
human capital
and charges
subjective
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tariffs.
Part 03: Target Market and Customer-Related Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Identification of
target market for
the proposed
new ventures
Difficulty to
identify
May be able to
identify
Identifies
?
MAS
Cramming
targets small
business
owners, mostly
business
uneducated.
Ability to create
"barriers to entry"
for potential
competitors
Unable to create May or may not
be able to create
Can create
?
Know-how
works as the
primary barrier
to entry.
Purchasing
power of
customers
Low Moderate High
?
Potential
customers are
new or mature
small business
owners with a
moderate
purchasing
power.
Ease of making
customers aware
of the new service
Low Moderate High
?
MAS
Cramming can
make
Social Enterprise Business Plan Template
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customers
aware of its
existence by
using the
communication
channels of
banks, word of
mouth, and
traditional
marketing ads.
Growth potential
of target market
Low Moderate High
?
Currently,
small
businesses
account for a
98% of the
business
market but up
to 85% neither
have a business
plan nor fulfill
government
regulations.
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Part 04: Founder Related Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Founder
experience in
the industry
No experience Moderate
experience
Experienced
?
Martha Amada
has worked on
business plan
elaborating in
the real
business world.
Founder's skills as
they relate to the
proposed new
venture's service
No skills Moderate skills Skilled
?
Martha Amada
has the
necessary
knowledge to
elaborate
business plans
and is aware of
the government
business
regulations.
Extent of the
founder's
professional and
social networks
in the relevant
industry.
None Moderate Extensive
?
Martha Amada
has the
professional
nexus as well
as the social
one to carry on
this venture.
Extent to which
the proposed new
ventures meets
Weak Moderate Strong
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the founder's
personal goals
and aspirations.
?
Martha Amada
looked at this
as her possible
Corporate
Social
Responsibility
once she is an
entertainment
mogul.
Likelihood that a
team can be put
together to launch
and grow the new
venture.
Unlikely Moderately
likely
Very likely
?
A group of
experts in
different areas
is
contemplated
to join this
project.
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Part 05: Financial Issues
Low Potential (-
1)
Moderate
Potential (0)
High Potential (+1) Explanation
Initial capital
investment
High Moderate Low
?
MAS
Cramming
need few
material things
to operate.
Number of
revenue drivers
(ways in which
the company
makes money)
One Two or three More than three
?
MAS
Cramming will
offer a wide
variety of
services.
Time to break
even
More than two
years
One or two
years
Less than one
year
?
MAS
Cramming is
expected to
reach its break
even around
the six month
of operations.
Financial
performance of
similar businesses
Weak Moderate Strong
?
Corporate
coaching firms
do plenty of
money only on
coaching them
twice a year at
the most.
Ability to fund
initial service,
development
Low Moderate High
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and/or initial
start-up expenses
from personal
funds or via
bootstrapping.
?
Funder own the
necessary
capital to
invest in this
venture.
Score (-5 to +1) Overall Potential of the business idea based on each part Suggestions for
improving the
potential
High Moderate Low
Part 01:
Strength of
Business Idea
5 2
Part 02:
Industry-Related
Issues
5
Part 03: Target
Market and
Customer-
Related Issues
2 2 1
Part 04:
Founder-
Related Issues
4 1
Part 05:
Financial
Issues
4 1
Overall
Assessment
20 6 1
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Industry Analysis
I ndustry analysis Porter’s Five Forces
Competition
Force
Threat to Industry Profitability Explanation
Low Medium High
Threat of
substitutes
?
No threat of
substitutes
since there is
any small
business
coaching, only
corporate
business.
Threat of new
entrants
?
No small
business
coaching firms
yet, so the
possibility to
enter the
market new
firms is high.
Rivalry among
existing firms
?
None.
Bargaining
power of
suppliers
?
Little since the
greatest
suppliers will
be the same
collaborators
of the firms
and the
business
owners.
Bargaining
power of
?
Since the firm
will deal with
5 Buyer Power
4 Substitutes
1 Supplier Power
2 Barriers to entry
3 Competitor rivalry
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buyers small business
owners, their
purchasing
power may
vary.
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Competition Analysis
No competition analysis was carried formally since there is no direct competition for the
firm in the domestic market. Nonetheless, an internal competitive analysis is showed bellow:
MAS Cramming Explanation
Service Features Various MAS Cramming offers a
wide variety of services for
small business owners.
User engagement High MAS Cramming will boost
the productivity and
increase the value of the
business through the
implementation of business
plans and governmental
regulations.
Durability Long The business plan can be
used for at least five years.
User feedback Strong MAS Cramming will work
with and for the mom and
pops owners.
Benefits High Small business with
business plan that obey the
law are more likely to
obtain financial aid and
generate greatest profit.
Price Subjective Fees may vary according to
the purchasing power of
the client.
Customer Service High MAS Cramming will work
side by side with people
offering a high quality one
on one service.
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Description of Target Market
Type of Market Segment Shared Group Characteristics
Demographic & Geographic Segment Small Businesses’ owners aging from 25 to
50 years old belonging to low to medium
class living in any Central America
country. Ideally, they should have some
dependents to support and many dreams to
fulfill willing to go further and venture
into businesses.
Psychographic Segment They exemplify hard-working citizens
pursuing their ?American dream? within
the boundaries of their home country,
preferable. Most of them lease the places
where they make businesses and have little
or none business administration
background.
Used-based Segment Mom and pops’ owners should be coached
in every step of the business planning,
whether the business is a start-up or not.
Once the planning is done, some follow up
sessions should take place till the business
position itself in a good position within its
industry.
Benefit Segment Small business with a business plan
containing vital information have greater
chances to success and be eligible for
loans or foreign investments to expand
operations. Meanwhile, the owners have
realistic guidelines to measure the
enterprise’s progress. Additionally, the
business will operate according to the
government’s regulations and laws.
Market Size & Expected Growth In Costa Rica, the 98.2% of the businesses
represent micro, small, and medium
enterprises. Nowadays, the 15.7% are
small business; while a 78.3% are micro
business. From micro businesses, by 2012
the 45% are expected to growth till they
become small business employing more
than 10 employees with greater profits
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(Borbón, 2010).
Size of Target Market Accordingly to some statistics provided by
Banco Popular, a 79% of the business in
the market are PYMES. Therefore, MAS
Cramming's target market it is that 79% of
the total market in Costa Rica.
Trent in Target Market Most of the PYMES enters the market due
to a need for profit. Thus, the owners do
not look beyond their current needs and
neither plan for the future nor properly set
their business up.
In sum, MAS Cramming targets small businesses’ owners between the ages of 25 and 50
with little or none business administration background venturing into the business world
looking forward to properly set up their enterprises, whether they are start-up or not.
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3. Strategic Positioning
Strategy
Goal Diminish the number of empirical PYMES owners in Costa Rica. A
60% of the total PYMES in Costa Rica should go under our
coaching program developing a complete and accurate business
plan.
Competitive
advantage
MAS Cramming rears as a social entrepreneurship firm pioneering
the coaching industry for PYMES owners in Costa Rica.
Logic MAS Cramming ventures into the business world to make the
difference and boost the growth opportunities for mom and pops'
owners-who lack the business administration, accounting, financial,
legal, marketing, among other background—making them better
qualified for leases while fixing all their attention in tangible goals.
Scale MAS Cramming must be a born global firm to afford all the
expenses in aid of achieving its social objectives.
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Enterprise’s Ability to Achieve Venture Criteria
Social criteria Current need for coaching firms giving a helping hand to small
businesses' owners to be better off doing their own thing.
Success in existing social services companies performing the same
actions abroad.
Understanding of target market's needs and allies' needs.
Financial criteria Operational effectiveness
Fundraising ability
Business expertise: business partners know-how.
Reinvestment strategy: modest fees charges.
Strategic alliances: banks, NGOs, and corporations with a Corporate
Social Responsibility program.
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4. Operations
Description of Day-to-Day Operations
Working hours Monday to Friday from 09 o'clock to 17 o'clock. Saturday only by
appointment.
Purchasing Once a month office supplies will be purchased.
I nstallations An office building will be lease. Additionally, some meetings will
take place at the small businesses' owners' place.
Supervision A biweekly luncheon staff meeting will take. Meanwhile, daily
update will be shared thru the Omnifocus platform.
Training Two weeks paid training will take place before starting operations.
Once operations start, a monthly workshop in-house or off-house
will take place.
Planning and
scheduling
A weekly common agenda will be developed on Fridays. While a
common plan will be made up during the biweekly meetings. Also,
the use of platforms such as Omnifocus and Omniplan will help to
take the most out of these processes on a daily basis.
J ob placement People handling with the customers will be front line customer
service agents with only one supervisor who reports directly to
management. The cleaning, accounting, and legal staff will be
outsourced; thus they will report to management, too.
Support Every collaborator will have full control over their customers'
account with the possibility of having the rest of the team
intervening and helping when requested.
Order fulfillment
and customer
service
MAS Cramming will work with some business templates as the
foundation for every business plan developed for the mom and pops.
However, those templates can and must be adapted to every
customer’s needs. MAS Cramming will work as a service customer
which high standards will be set to treat properly the customers and
do the best for their sake.
Facilities
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Client Staffing Plan
Recruiting Throughout the strategies alliances formed with the banks, NGOs,
and other related enterprises in the current market, MAS Cramming
staff will reach its target market. MAS Cramming can attend some
business fairs and do some convocation events to call people in.
However, the primary recruiting event will take place after a
massive conference-workshop in which 100 PYMES owners will be
selected.
Retention Once the people have being recruited, they will be retained thru the
follow ups and the constant coaching. It will pay off soon since the
business will ameliorate their situation and move to a better position
being able to take advantages of the multiple advantages for
properly founded enterprises with a business plans. Meanwhile, the
owners will learn and improve their abilities and skills making
better and more assertive decisions.
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5. Management and Organization
Organizational Charts
MAS Cramming is led by its founders Martha Amada. Martha Amada has several years
of experience in the business world. In addition, others business administrators, marketers,
accounts, and finances will join the MAS Cramming.
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6. Marketing Plan And Sales Strategy
Slogan
MAS Cramming for People who Want More
There is a meaningful reason to go for this slogan. First of all, it is important to be
knowledgeable regarding the name. MAS Cramming really stands for Marshal Ameliorate
Success Cramming. MAS Cramming aspirates to be there for people who want to run their
small business in the right way with all the business administration papers and parameters as
well as legal documents required for an ulterior purpose. Therefore, ?MAS Cramming for People
who Want More? perfectly fits and reflects the desires of this project.
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Marketing Mix
Product
MAS Cramming will provide a superior and unique service for small businesses’ owners.
MAS Cramming desires to coach mom and pops until they develop proper and useful business
plans accordingly to each business’s needs. Besides, MAS Cramming aspirates to teach owners
the basics for running their companies under the law regulations; while making business
decisions based on knowledge acquire throughout the informative sessions that MAS Cramming
will offer them. The people involved with this initiative do not hold any B.S or B.A. on Business
Administration or related careers. Thus, MAS Cramming offers a unique opportunity to small
businesses’ owners to acquire the abilities, knowledge, skills, and tools to be effective proprietors
while carrying on their businesses the right way.
Place
MAS Cramming has two ways to call in people to be coached and advised. MAS Cramming,
as a social entrepreneur firm, aspirates to reach the low and medium class small businesses’
owners aimed to develop business plans and learn about the business world from more
experienced people. One way is through alliances with key players for the small businesses’
owners. MAS Cramming will align with cooperatives, banks, and other organizations that seek
the well being of these enterprises’ owners to reach them. MAS Cramming will have access to
their database turning into an insight view of the real and current needs of these people. In turn,
the allies will have better qualified companies requesting their services. In addition, MAS
Cramming will convene an open conference. One hundred small businesses’ owners will attend
an intense forum featuring the basics for developing a business plan plus a brief introduction to
the services offered by MAS Cramming. After this conference, interested participants will apply
to be coached and advised by MAS Cramming’s experts. Only, twenty people will be chosen for
the pilot of this venture.
Price
MAS Cramming exemplifies a born global social entrepreneur firm. Therefore, prices are not
that important for the organization. Nonetheless, MAS Cramming will charge fees below the real
price since it is more concern about generating a change in the way small businesses are run.
Each participant will be charge based on his or her company’s gross profit; the range will be
from 5 to 15% after a careful and honest examination to the past and present business’ gross
profit. Nonetheless, it is important to set as a reference price ?100000.Consequently, fees charge
shows two differentiators: fees will vary among coached owners and be below the real
operations’ costs.
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Promotion
MAS Cramming does not offer any kind of commercial promotion since it is a social
entrepreneur firm. However, MAS Cramming will offer some incentives to the businesses’
owners engaged in this venture. MAS Cramming will offer two informative sessions free of
charge for any person interested in being coached and advised. In addition, MAS Cramming will
have an annual conference where all the coached businesses’ owners will have the opportunity to
exchange information among them while learning other small businesses’ owners’ best-practices
from abroad. Most important, MAS Cramming’ users will have all access information to the
latest news dealing with banks, loans, investments, businesses’ practices, and other related
subjects.
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7. Financials
Assumptions for the Financial Model
Start-up Assumptions
The start-up investment needs to be equal or greater to ?6,643,375.
MAS Cramming
Start up Cost Sheet
Item Cost
Office building ?50.000
8 chairs 800000
Table 100000
4 Desks 250000
4 Computer Chairs 350000
4 Notebooks 1247400
1 e-All-in-One Printer 108900
5 Telephones 80000
Printer Paper 5000
Pens 4000
Post-it® notes 3600
6 Staplers 6000
6 Scotch Tape 3000
6 bottles of Glue 3000
5 Plastic Seals 4500
Bathroom supplies 10000
Cleaning supplies 20000
6 Calculators 30000
5 Calendars 2500
5 Yearly Planner Calendars 3000
1 Coffeemaker 50000
Copyholders 20000
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3 Cork boards 40000
Envelopes 1000
Mailing labels 2500
Manila folders 1500
Markers 3500
Paper Clips 500
Rubber bands 500
6 Scissors 2000
6 Telephone headsets 600000
1 ER Equipment 800000
1 Medium size white board 60000
Toners 45000
Staple remover 2300
Staples 1000
Hole punch 2400
Plastic labels tabs 600
Ring binders 2500
Lined note paper 40000
Colored paper 2500
3 Wall clocks 600000
3 Mobile File Carts 120000
6 Desk top file organizers 50000
1 Microsoft Office Professional License 247500
1 iWork License 39600
4 Notebooks stands 40000
1 Supplies organizer 50000
6 task clips 40000
4 Mouses 180000
1 Omniplan License 111375
1 OmniFocus License 59400
1 Kaspersky Small Business Security License 89100
1 MAC Keeper License 198000
1 OmniOutliner License 29700
Internet 30000
Total ?6.643.375
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Monthly Expenses
The monthly expenses will be equal or greater to ?1,147,250.
MAS Cramming
Monthly Expenses
Item Cost
ADMINITRASTIVE
Payroll
Payroll ?75.000
Sales Commissions ?0
CCSS (48%) ?36.000
13th month 6.250,00?
Vacations ?0
Total Payroll ?117.250
Utilities
Water ?15.000
Phones ?25.000
Electricity ?15.000
Internet ?10.000
Security ?45.000
Rent ?500.000
Total Utilities ?610.000
Professional Services
Lawyer ?10.000
Accountant ?100.000
IT Team ?100.000
Total Services ?210.000
Marketing
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Brochures ?0
Facebook ?10.000
Website ?200.000
Radio ?0
TV ?0
Newspaper ?0
Total Marketing ?210.000
Taxes
Sales Tax (13% Sales) ?0
Municipal Tax (1% Sales) ?0
Income Tax (30% profit) ?0
Loans
Interest ?0
Payment on principal ?0
Total Loans ?0
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Projected Financials
Sales Forecast
The expected sales forecast yearly will be ?10,850,000. Meanwhile, the expected monthly
sales will be ?1,250,000.
MAS Cramming
Sales Forecast
Week Quantity
Sold
Average
Price
Total Price
1 4
?100.000
?400.000,00
2 3
?100.000
?300.000,00
3 3
?100.000
?300.000,00
4 5
?50.000
?250.000,00
5 2
?100.000
?200.000,00
6 2
?100.000
?200.000,00
7 3
?100.000
?300.000,00
8 2
?100.000
?200.000,00
9 1
?50.000
?50.000,00
10 2
?100.000
?200.000,00
11 3
?100.000
?300.000,00
12 2
?100.000
?200.000,00
13 2
?100.000
?200.000,00
14 1
?50.000
?50.000,00
15 4
?100.000
?400.000,00
16 1
?50.000
?50.000,00
17 1
?50.000
?50.000,00
18 2
?100.000
?200.000,00
19 5
?100.000
?500.000,00
20 2
?100.000
?200.000,00
21 0
?50.000
?0,00
22 2
?100.000
?200.000,00
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23 2
?100.000
?200.000,00
24 6
?100.000
?600.000,00
25 2
?100.000
?200.000,00
26 1
?50.000
?50.000,00
27 5
?100.000
?500.000,00
28 2
?100.000
?200.000,00
29 2
?100.000
?200.000,00
30 1
?50.000
?50.000,00
31 2
?100.000
?200.000,00
32 2
?100.000
?200.000,00
33 4
?100.000
?400.000,00
34 2
?100.000
?200.000,00
35 4
?100.000
?400.000,00
36 2
?100.000
?200.000,00
37 2
?100.000
?200.000,00
38 2
?100.000
?200.000,00
39 2
?100.000
?200.000,00
40 2
?100.000
?200.000,00
41 2
?100.000
?200.000,00
42 1
?50.000
?50.000,00
43 2
?100.000
?200.000,00
44 2
?100.000
?200.000,00
45 2
?100.000
?200.000,00
46 2
?100.000
?200.000,00
47 2
?100.000
?200.000,00
48 2
?100.000
?200.000,00
49 2
?100.000
?200.000,00
50 1
?50.000
?50.000,00
51 0
?100.000
?0,00
52 0
?100.000
?0,00
?10.850.000,00
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Cash flow
Since MAS Cramming is a social entrepreneurship enterprise, it will take several donations
throughout the year from partner associations or NGOs. Thus, these additional sources are
considered and average donations sums are added as additional sources of cash.
MAS Cramming
Yearly Cash Flow
REVENUE
Revenue from sales
?10.850.000
Additional Sources ?12.000.000
Total Revenue ?22.850.000
EXPENSES
Payroll ?1.641.500
Utilities ?8.540.000
Professional Services ?10.181.500
Marketing ?0
Loans ?0
Taxes ?0
Total Expenses ?9.754.250
INITIAL CASH ?422.288.250
TOTAL REVENUE ?21.950.000
TOTAL EXPENSES ?444.238.250
FINAL CASH ?434.484.000
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8. Risks and Mitigation
Risk Mitigation
Market risk Customer might not look for our
coaching.
Diversified operations while
turning more to the consulting
part of the business.
Competitive risk There is no direct competition.
Thus, we compete against
everybody who have the
resources and channels to enter
our market, especially consulting
firms.
Do the best and develop a brand
name and love to be the top of
mind in the industry. Also,
distinguish the company for its
great, efficient, and amicable
customer service.
Social mission risk People's apathy and
unwillingness to be coached in
order to be better businesses'
owners taking full advantages of
the market opportunities. The
pricing strategy can pull the
trigger and maximize the risks.
Since their no a fix price, people
might distortion their numbers to
be charged less. When the
company does not reach its
financial goal for at least four
months, a review to the current
policy will be required.
Develop awareness among the
target market related to the
importance of being coached and
have a business plan.
Additionally, develop strong
alliances with for profit-firms
and NGOs. Also, keep the
expenses at the minimum and
operational activities closely
supervised to achieve low costs.
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9. References
Abrego, K. (2011). Personal Communication.
Barringer, B. (2009) Entrepreneurship: Successfully Launching New Ventures. 3rd
Edition. Prentice Hall: New York, NY.
Borbón, G. MBA (2010). Estrategia del Banco Popular hacia las Micro, Pequeñas y Medianas
Empresas. Museo de los Niños, San José, Costa Rica.
Corea, J. (2011). Personal Communication.
Chávez, I. (2011). Personal Communication.
Dees, G. (2008). Origin and Future of Social Entrepreneurship. Duke University's Fuqua School
of Business: Center for the Advancement of Social Entrepreneurship.
Figueroa, C. (2011). Personal Communication.
Hernández, A. (2011). Personal Communication.
Límite Zero: Opiniones para el Desarrollo (2003). Hacia un Nuevo Paradigma en Consultoría en
la MYPE. ¿Asesoría a Dueños de Empresas o a Empresarios?. Retrieved From SERCAL
website from: www.sercal.es/.
López, G. (2011). Personal Communication.
Rodríguez, V. (2011). Personal Communication.
Small Business (2011). Retrieved from Small Business website from:http://www.small
business.co.uk/.
Solís, D. (2011). Personal Communication.
Target Market (2011). Retrieved from Small Business Notes from:http://www.small
businessnotes.com/marketing-your-business/target-market.html.
Valle, C. (2011). Personal Communication.
Zapata, L. (2011). Personal Communication.
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