Project 1: Getting Closer to your Mega Project Problem
Cloud9
(The Place of Happiness)
Habib Town near DHQ Hospital
Sahiwal
The mission of “Cloud9” is to transmit knowledge, provide a safe upbringing away from negative influences, and develop a strong character through the values of Islam.
Our focus is to provide a stimulating early learning and child care experience that promotes each child’s social/emotional, physical, and cognitive development. We also give comfort to worker ladies.
“Cloud9” seeks to develop in each and every student a positive identity as a Muslim who is prepared intellectually, socially, emotionally, spiritually, and physically to succeed in tomorrow’s world. “Cloud9” students are expected to integrate academic skills, Quranic principles, and ethical behavior in order to make positive contributions to the global community. “Cloud9” aims to develop in each student a balanced character enriched with knowledge, inspired to excellence, and committed to the betterment of family, community, and humanity.
Maintaining a reputable reputation in the community, quality care, competitive price, and flexible hours.
Logo of the children’s care center
Description of Business:
Cloud9 is responsible for taking care of the people they tend to love the most in their lifetimes their children. Whether we’re looking after their babies, infants, toddlers, or school-aged beacons of joy, they’re able to work and take care of their other obligations with more ease when they know that our kids are safe, secure, and well looked after while in their care
Program Type*
Age of Children
Infant Program
Birth to 24 months
Infant Program with Toddler
Infant: Birth to 24 months and Toddler: 18 to 30 months
Preschool Program
2 years to entry into 1st grade
School Age Program
Enrolled in kindergarten or above, minimum age 4 years & 9 months
Mildly Ill Program
All age groups
Financing:
Initial financing is requested is a 3 Crore loan to be paid off over three years. This debt will cover office space. Office equipment and suppliers, two leased buses, advertising, and services costs.
This report is confidential and is the property of the cow-owners. It is intended for use only by the persons to whom it is transmitted, and any divulgence of any of its contents without the prior written consent of the company is prohibited
Executive Summary:
The idea of this business-building daycare center was given by Huma Shafique. “Cloud9” aims to prepare its students to excel as young leaders of tomorrow by combining an exclusive collegiate-based curriculum tailored blend with the vision of Islam. We will focus to promote excellence in Adab (manners) based on the teaching of Islam. Unlike our competitors, we offer advanced technology programs, after-school tutoring in Islamic culture, and activities such as arts and crafts and the development of healthy hygienic habits.
“Cloud9” is a privately held corporation run by 5 partners Huma Shafique, They all have different experienced in management, HR, marketing, and the accountant field. Yasir and Gohar have budgeting experience and extensive experience with budgeting methodology and strategic plan including the balanced scorecard approach. The advanced degree in business administration is the driving force behind our technology components. They will be supported in daily operations by industry consultants.
Through specialized training of the staff innovations learning systems, the cloud9 is cutting edge in terms of child development. This curriculum, coupled with a custom design facility and teacher: student ratio ensures top-shelf services for the children and the parents.
The “Cloud9” has projected a modest net profit by year three.
2021,2022,2023
Company Summary:
“cloud9” will be located in Habib town near DHQ hospital Sahiwal which is a partnership among 5 partners, with adequate experience in the field, but with a new and innovative idea. I addition each partner is experienced in handling finance, management, and marketing respectively. It will offer childcare services for small kids from morning till evening. “Cloud9” will also provide a transport facility for the children. “Cloud9” is a good solution for all parents. It comforts working ladies. “Cloud9” will also offer special classes on weekends for children and family extra curriculum and family activates. “Cloud9” provides a doctor facility at the time and also has a dispensary and small kid’s hospital. Cloud9 will have Masjid to give Islamic ethics to Muslim Childs. It also offers to host services to celebrating Islamic festivals like Eid-Milad Nabi(صَلَّى اللّٰهُ عَلَيْهِ وَسَلَّمَ)and Qirat & Naat competition on monthly basis.
Company ownership:
“Cloud9” is an unincorporated business, which is a partnership among five members looking for venture capital and might become incorporated in near future.
Startup summary:
Our startup cost is estimated at 3,00,00,000 PKR, which will mostly cover up renovation and building rents, transport, equipment’s the business.
Services:
“Cloud9” offers childcare services for age from 6-week infants to five years old. “Cloud9” will operate from Monday to Friday, normal operating hours will be 8:00 am till 6:00 pm with consideration of major legal holidays. “Cloud9” main teaches Islamic ethics to children for the development of character. Other than “Cloud9” also provide a transport facility (pick and drop). we give Islamic teaching in Masjid, formula feed, CERELAC, rice, fruits, debris, and extra care to children.
Nowadays both parents work so they don’t give proper time to their child, “Cloud9” is an innovative solution that acts as a surrogate, educating them according to Islamic values. Our care center overstating the children's skills during the day, the children will busy all day learning and requiring new skills. We will provide a family environment for children.
Industry Analysis
Future outlook and trends:
The inflation and population are increasing day by day. The number of working parents — including single-parent families and families with both parents employed — is climbing, creating an ever-growing need for quality child care. That need is creating a tremendous entrepreneurial opportunity for people who love children and want to build a business caring for them. Keeping in mind its importance it is expected to be another daycare center in the coming periods
Pakistan is a developing country that contains upper, middle, and lower-class people. The people who belong to the upper class enjoy all opportunities but lower-class people are not enjoying such type of opportunities.
Analysis of competitors:
There are no competitors in Sahiwal. But, the fact that there is a lot of competition in the industry you’re about to enter is actually a good sign.
I do some angel investing, and I get a little nervous when people say there is “no competition” for the idea they are proposing. The market has a funny way of sorting out the good ideas from the bad, and if there is no competition for your idea, chances are there is no market either Companies’ succeeding in doing what you’re proposing is a good sign — the market has validated the core of your idea. That’s why we can get the best competitors from us in Sahiwal, which can be better on our services and can see us better than Daycare center.
Market segmentation:
Cloud9 targets only kids and children from 6 months to 4 years. We target the area of Habib town, shaman town, Fareed town, and almost whole Sahiwal. Our organization provides pick and drop services.
Description of venture
Mission statement:
We believe that all children are very unique and special in their own way. We promote Islamic, social, intellectual, physical, and emotional development.
Services:
CCTV monitors
Activates to teach Islamic ethics
Open door policy
Variety of toys and learning materials
Experienced daycare supervision
Nutrition and healthy meals
Full daycare program
Flexi plans
Safe, secure hygienic activates
Group activates for games, arts and crafts
Size of business:
The size of a new venture can be estimated by the size of the building and the number of children.
Office equipment and personal:
The equipment of the organization includes Quran e Pak, Islamic books, chairs, cupboards, tables, stands, medicines, milk, debris, toys, books for kids about foster care and adoption, patience care book and nutrition and healthy meals and stationary.
Background of business
Huma Shafique, Adnan, Asghar, Gohar,Saman and Noor. They all have different experienced in management, HR, marketing, and in the accountant field. Huma and Sania have budgeting experience and extensive experience with budgeting methodology and strategic plan including the balanced scorecard approach. The advanced degree in business administration is the driving force behind our technology components. We all are to love children, be a people person, have a high tolerance for stress, have good insurance, and have management skills.
Marketing plan
Pricing:
The prices of services per child given below :
Services
Price per month
Price per year
Healthy and hygienic food
3000
36000
Transport
3000
36000
Medicines
1000
12000
Stationary
1000
12000
Tutor
2000
24000
Books
1000
12000
Doctor
2000
24000
chef
2000
6000
Total
15000
78000
Also, free funded scholarships are available for the lower class.
Table:
Services
Cost
Price
Profit
Healthy and hygienic food
2000
3000
1000
Transport
2000
3000
1000
Medicines
500
1000
500
Tutor
1000
2000
1000
Stationary
1000
2000
1000
Books
900
1500
600
Doctor
1000
2000
1000
chef
1000
2000
1000
Total
9000
15000
6000
The amount describes per month and in PKR per child.
Total revenue per year
TR=Selling price + quantity
TR by Healthy and hygienic food = 50 × 3000=150,000
TR by Transport= 50×3000=150,000
TR by Medicines = 50×1000=50,000
TR by Stationary= 50 ×2000=100,000
TR by Tutor =50 ×2000=100,000
TR by Book=50×1500=50,000
TR by Doctor= 50 ×2000=100,000
TR by Chef = 50×2000=100,000
Total Revenue: 800,000
Promotion:
In the promotion and develop awareness in people the advertisement is given on Facebook, cabal, Gmail, YouTube channels ads given. All the information about our organization is given on our official website www.cloud9.com
Organizational plan
Form of ownership:
The new venture has a proprietorship form of ownership whose proprietor is Huma Shafique.
Board of director:
Gohar Naveed and Saman bibi are the board of directors.
There are the following functions:
· Reviewing operating and capital budget and do their best efforts’ in developing of organization.
· Supporting day-to-day activates.
· Ensuring the proper use of assets.
· Developing a network in information sources
Check to sign Authority:
The CEO of the organization has the authority of signing a check and have full authority to control an organization decision and do their good effort in good progress in their organization.
Management:
Post
Name
Salaries (month)
Salaries (per year)
CEO
Huma Shafique
70,000
840,000
MANAGEMENT DIRECTOR
Adnan Arshad
60,000
720,000
HR MANAGER
Saman Bibi
40,000
480,000
OPERATIONAL MANAGER
Asgher Ali
50,000
600.000
FINANCE MANAGER
Gohar Naveed
65,000
780,000
Total
285000
3420000
Finance plan
Expenses are given
Expense items
Center
(50childern)
Child Care Cost
· Teacher, doctor, chef, and sweeper,
· Islamic and stories Books, toys and stationary
· Nutritional food
· Transport
175000
50000
187500
20000
Marketing Costs
· Business cards, flyers, advertisement is Rs/50000
· CCTV cameras are Rs/50000
Furniture & Fixtures, Improvements
· Indoor furniture/equipment (mats, cribs, smoke detectors, fire extinguishers, computer, CD player, chairs tables etc.) Outdoor equipment/furniture (playground equipment, etc. Kitchen equipment/supplies Office Furniture
· Renovation/building costs…
· Electricity bills and gas bill
50000
8500000
20000
Administrative Expenses Utilities
· Licensing
· Fees Legal/accounting fees
· Professional development (CPR, etc.)
Subtotal One — Time Costs
10000
10000
10000
9107500
The owner will purchase a building for RS100000000 and will have renovation costs (including contingency) of 8500000 for guidance on estimating renovation costs.
BREAK EVEN ANALYSIS:
Break even analysis: fixed cost + variable cost
Total revenue = 800,000
Break-even point= TFC/SP-VC
= 867500/800,000–160,100
= 1.356
PESTAL ANALYSIS:
PESTAL analysis is given below:
Political
Government regulations and legal issues affect a Cloud9 ability to be profitable and successful, and this factor looks at how that can happen. Issues that must be considered include
Tax guidelines, copyright, and property law enforcement, political stability, trade regulations, social and environmental policy, employment laws and safety regulations. Companies should also consider their local and federal power structure, and discuss how anticipated shifts in power could affect their business.
Economic
This factor examines the outside economic issues that can play a role in Cloud9 success. Items to consider include economic growth, exchange, inflation and interest rates, economic stability, anticipated shifts in commodity and resource costs, unemployment policies, credit availability, and unemployment policies.
Social
The social factor analyzes the demographic and cultural aspects of the Cloud9 market. These factors help businesses examine consumer needs and determine what pushes them to make purchases. Among the items that should be examined are demographics, population growth rates, age distribution, attitudes towards work, and job market trends.
Technological
Technology issues affect how an organization delivers its product or service to the marketplace. Specific items that need to be scrutinized include, but are not limited to, government spending on technological research, the life cycle of current technology, the role of the internet and how any changes to it may play out, and the impact of potential information technology changes. Just like the other factors, Cloud9 should consider generational shifts and their related technological expectation to figure out how they will affect who will use their product and how it’s delivered.
Environmental
Environmental changes can also affect the service of Cloud9 and play role in Cloud9 success and help to build and create trust of customers by approaches the customer at a time on provided location in an emergency situation. The branch office of Cloud9 will be in every town or the city. Then in an emergency, a representative will reach at a time on given location in any condition. So the rain or storm will not disturb the service of Cloud9.
Legal
Cloud9 has got the license to provide the services in any town or city of Pakistan. These services will not affect or harm any person or environment and this business is legally allowed in our society and this work is legally allowed by the Government of Pakistan. On any harm or destruction of the environment, Cloud9will be responsible for that.
