SMEDA Britannia Resource Centre (UK Franchise, A Life Time Business Opportunity)
Content
Pre-Feasibility Study Britannia Resource Centre
(December 2005)
Pre-feasibility Study
Britannia Resource Centre
DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. SMEDA has only performed its role in compiling this document on the basis of data/ information provided by BWG (Britannia Wise Group). Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ from the presented information. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum/ document document or due to any any act act of BWG (Britannia (Britannia-Wise -Wise Group) Group) in consequence consequence of undertaking any activity/ activities on the basis of this document. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information he/she feels necessary for making an informed decision. For more information on services offered by SMEDA, please contact our website: www.smeda.org.pk
Pre-feasibility Study
Britannia Resource Centre
Table of Content 1
2
3
4
5 6 7
Introduction................................................................................................................4 1.1 Britannia Resource Centre (BRC) .......................................................................4 1.2 BWG/ BRC Objectives .......................................................................................4 1.3 BRC Activities and Services ...............................................................................4 1.4 Opportunity Rationale.........................................................................................5 1.5 Management Structure ........................................................................................6 Pakistan Profile...........................................................................................................7 2.1 Current Market Situation/ Market Potential.........................................................7 2.2 Target Market .....................................................................................................7 Product.......................................................................................................................8 3.1 Services ..............................................................................................................8 3.1.1 Educational Services Schedule ....................................................................8 3.1.2 Corporate Services Schedule .....................................................................11 3.1.3 HSMP, Work Permit and Immigration Services schedule ..........................12 3.2 Pricing Strategy ................................................................................................15 3.3 Unique Features................................................................................................15 Advertisement ..........................................................................................................16 4.1 International Marketing.....................................................................................16 4.2 Joint marketing .................................................................................................16 4.3 Individual Marketing.........................................................................................16 Human Resource Requirement..................................................................................16 Initial Start-up Cost ..................................................................................................17 Franchising Procedure ..............................................................................................18 7.1 Objectives and Benefits.....................................................................................18 7.1.1 For the General Public...............................................................................18 7.1.2 For the Franchisee .....................................................................................18
Pre-feasibility Study
1
Britannia Resource Centre
INTRODUCTION
1.1
Britannia Resource Centre (BRC)
Britannia Resource Centre (BRC) (website: www.brcworldwide.com) is a project initiated by Britannia-Wise Group (BWG) (website: www.bwguk.org), a group of two leading British Organizations, Britannia Educational Bureau and Training Wise (website: www.trainingwise.co.uk). BRC is a unique project in the professional history of Great Britain and gives a new concept of subscribed services for the first time originated from UK The services provided by BRC can never be available from UK at such a low rate. This service model is based on old traditional Professional style of United Kingdom a country rich in multiple culture and traditions BRC welcomes students, businesspersons, professionals and general public from all over the world to join our Professional World and receive all types of relevant services and advice free form UK. BRC services span is spread from a common person to a professional one. BRC can support you in all relevant areas of your problems and enquiry from best in house Professional Expertise and Consultancy Partners. 1.2
BWG/ BRC Objectives
To promote a wider knowledge of British Educational System and professional structure world wide Encourage Cultural Scientific, Technological and other Educational co-operation between the United Kingdom and other countries To support and guide the Schools, Colleges & Universities in Professional academics Setup and its upgrading To provide community (Young people/People with a disability/ Special Needs/ public)
Pre-feasibility Study
Britannia Resource Centre
4. BRC provides services worldwide to its members. 5. BRC provides professional’s training, skill development & placement. 6. BRC conducts Seminars, Workshops, Symposia Camps and Conferences for the promotion and enhancement of British Professional Education. 7. BRC provides a comprehensive guidance guild for the students, parents and educationists introducing every fresh event of British Education and Training Advancement. 8. BRC coordinates with leading International welfare organizations and institutions for Scholarship, Financial Aid and Grant for the Brilliant, Disabled and Deserving Students. 9. BRC is launching unique setup for the Distance, Continuing and Open Education Network for the employed and busy people. 10. BRC lineup a concrete circuit of business oriented organizations and leading establishments for on-job training, executive placement and appropriate employment in commercial fields. 11. BRC provides its members the professional support with participation in latest professional training and development events. 12. BRC supports Public Welfare Projects by Increasing Professionals, Decreasing Unemployment, Supporting Economy, Building Professional Structure and by supporting Trade and Industry 1.4
Opportunity Rationale
Life is defined by “Security” and the world is defined by “Change”. The world is not so as it seemed to be a hundred years ago or so, it has passed through tremendous technological, industrial and social changes. This accelerating change in the world has made future demands unlimited but attainable and only through the support of International Resources Connectivity.
Pre-feasibility Study
1.5
Britannia Resource Centre
Management Structure Chairman BWG UK
Director Operations & Admin UK
Director International Development
Director Projects/Trainings UK
Director Asia (Pakistan)
Country Representative India
BRC Setup
Manager BRC
Country Representative China
Country Representative Pakistan
Country Representative Sirilanka
Business Partner Pakistan
Manager BRC
Consoler
Manager BRC
Marketing Executive
Consoler
Country Representative Bangladesh
Business Partner Pakistan
BP Setup
Systems Executive
Office Executive
Secretary
Office Boy
Office Boy
6
Pre-feasibility Study
2
Britannia Resource Centre
PAKISTAN PROFILE
2.1
Current Market Situation/ Market Potential
According to the statistics provided by British Government UK Home Office UK Visa Policy for Pakistan is very accommodating. Considering the previous statistics in 2004-5 the applicants will be more than 250,000. YEAR 2002-3 YEAR 2002-4 City Total Refused % of Total Refused % of Application Refusal Application Refusal Islamabad 62,286 7,670 12.3% 121,098 21,768 18.0% Karachi 11,757 2,503 21.3% 1,802 7 0.4% Majority from Pakistan Students, Professional and Businessmen are interested to go to UK for their Career and Business Development and each year the applicants increase more than double. 2.2
Target Market
Target market for BRC is:
Businessperson Students Professionals Investors Companies Colleges & Universities
Pre-feasibility Study
3
Britannia Resource Centre
PRODUCT
3.1 3.1.1
Services Educational Services Schedule
*Terms and conditions apply Service Services Descriptions Code
EDU 505
Career Information Services BRC provide you the awareness about professional, professionalism, career choosing, career build
Awareness about different Professions Selection of Career Understanding about international professional sector World wide professional bodies Getting International Memberships of Professional Bodies Understating of Professional Code of Conduct Global changes in professional sector Future Planning Guidance
Members (Rate in Pounds)
Free
Non Members (Rate in Pounds) 50
Pre-feasibility Study
EDU 506
Education and section services
Britannia Resource Centre
Technical
Knowledge
This section provides you services related professional education, planning, course management etc. Selection of Professional Course Provision of the Admission form from the desired University. Collection and checking of all the documentation required for the Admission. Application for admission and correspondence with the University. In order to provide our Admission Services, we need to know the precise details of your proposed course of study, as well as the name of the university at which you intend to study. If you are not sure, BRC can offer you two alternatives: a. Career Information Service We'll give you personalized information about your preferred course of study. This provides you with the optimum basis for choosing a university. b. If you don't have a preferred university in UK BRC can .select a university for you based on your proposed course .of
Free
50
Pre-feasibility Study
EDU 510 EDU 511
EDU 512
Britannia Resource Centre
Professional Linguists Assessment Testing Free Services DISCOUNTED ACCOMMODATION 50 per week SERVICE First Time in UK: BRC provide a special package for the students and members come first time in Britain at lowest accommodation cost. Regular Accommodation: If you want to stay in UK more than on 2 week we help you to find you the accommodation of your choice. We will also check that the rental contract complies with British law for you on request. In addition to the fee of this service and the monthly rent, you may also have to pay a deposit, depending on the type of accommodation chosen. These costs are usually refunded once the rent has ended. AIRPORT PICKUP SERVICE & HOME 40 CALL You will be personally collected by one of our representatives, whether from the nearest airport or railway station. It is also possible to arrange transportation for you from any airport or station in UK. Once introductions have been completed, you will be given the opportunity to make a
25 70 per week
50
Pre-feasibility Study
Britannia Resource Centre
Online Task Manager Online Annual Calendar Memo Writing Online Troubleshooting Financial Assistance (Scholarships &Loans) Professional Events Participation
EDU 516 EDU 517 EDU 518 EDU 519 EDU 520
BWG Performance Awards Job Placement Free Service for National Insurance and Medical 25 Card Service for Visa Extension Free
EDU 521 3.1.2
15 40 Discounted
50 No Discount 50 50 50
Corporate Services Schedule
Service Code
BSS 605
BSS 606 BSS 607 BSS 608
Services Descriptions
Members (Rate in Pounds)
Communication support Free International Collaborations and Match Making International projects participations Financial Management Consultancy 100 Management Policies Formation Feasibility study of the project 100 Research Partnership Free Consultancy Advice
Non Members (Rate in Pounds) 100
200 250 100
Pre-feasibility Study
BSS 617
3.1.3
Objectives and Standards Joint Venture Programs and Projects, Workshops with International Professional Bodies and Institutions.
Britannia Resource Centre
Free
100
HSMP, Work Permit and Immigration Services schedule
Service Code
Services Descriptions
GEN 705
Highly Skilled Migration Program HSMP Services is dedicated to provide the support and services to the members who decide to come to the UK under HSMP scheme in their effort to relocate to the UK and start working in the UK » Job Searching » HSMP Assessment and Application Preparation » E-Consultation » Application Plan » Full Representation Service » Assessment Form » Long Residence » Family Immigration » Extension Application » Permanent Residence
Members (Rate in Pounds)
200
Non Members (Rate in Pounds) 250
Pre-feasibility Study
» Training and work experience The training and work experience arrangements enable people from outside the EEA to undertake work-based training for a professional or specialist qualification, or a period of work experience. Please use form WP1 when applying for first work permits and for changes of employment or use WP1X for extensions to existing work permits. Please see the 'Guidance notes for employers on how to apply for training and work experience work permit' (Training and work experience (notes) for further details. » Sportspeople and entertainers The sportspeople and entertainers arrangements allow employers in this country to employ established sportspeople, entertainers, cultural artists and some technical/support people from outside the EEA. Please use form WP3 when applying for first work permits, multiple entry work permits and for changes of employment or use WP3X for extensions to existing work permits. Please see the 'Guidance notes for employers on how to apply for a sportspeople and entertainers work permit' (Sportspeople and entertainers (notes)) for further details.
Britannia Resource Centre
Pre-feasibility Study
Britannia Resource Centre
rules made under the General Agreement on Trade in Services (GATS). The company abroad that is contracted to provide the service needs to apply using the application form GATS1.
GEN 707
» Highly Skilled Migrant Entry Programme The highly skilled migrant entry programme (HSMP) allows highly skilled individuals to migrate to the United Kingdom. Further details can be found at British Embassies, High Commission. General Visitors
GEN 708
Travel and Vehicle Hiring Arrangement of Hotels/Motels/Apartments Lodging Sightseeing Immigration and Visa Consultancy Travel Guide Medical Visitor
Best Hospital recommendation Doctor’s appointment Arrangement of medical finance Medicine supplies Hospital enrollment
125
125
Pre-feasibility Study
3.2
Britannia Resource Centre
Pricing Strategy
BRC provides services from best in house Professional Expertise and Consultancy Partners Globally. Due to large corporate alliances the services price is affordable to everyone. BWG has special policy for developing countries to provide subsidies services. 3.3
Unique Features
BRC is a unique project of its kind and no foreseeable competition is expected in such vide range of services. Total service structure is UK based and no local consultancy or advisor or cash handling is provided or taken-up. BRC works as Customer Services Centers. Largest Professional Consultancy Partners worldwide BRC is the only approved Resource Centre by BWG in Pakistan BWG is the member of International Franchise Association, USA. All services are provided by top level professional sectors abroad from BWG UK. 100% Imported Services Structure Services available around the world Subsidized Service fee for developing countries The only 3 Q Quality Assurance Model in Asia Largest Corporate Ventures and Strategic Alliances in Pakistan Value Addition Support and Approved Project by SMEDA, Govt. of Pakistan Strategic Alliance with Lahore Chamber of Commerce for Business Sector Development UK Trained and Qualified Customer Services 24 hours online access to members to his / her enquiry database Legal placements
Pre-feasibility Study
4
Britannia Resource Centre
ADVERTISEMENT
4.1
International Marketing
International Marketing strategy is developed by BWG UK for all the international markets as well as very strong Web Portal for effective communication. 4.2
Joint marketing
Pakistan Marketing Strategy is developed by BWG and local Business Partners and the cost is shared between equally between BWG and BRC (50%), for all the activities through newspapers, journals, TV, printed materials and Web Marketing. Initial Marketing Budget for 2006 is approximately Rs.10 Million for 2006. 4.3
Individual Marketing
BRC city Marketing Strategy is developed by the local BRC and the cost is born b y the BRC, which is expected to be Rs. 25,000 per BRC per month. 5
HUMAN RESOURCE REQUIREMENT
Following is the human resource requirement for a BRC: Description
Customer Support Staff Janitorial Staff
No.
2 1
Monthly Salary (£) 100 30
Annual Salary (£) 2400 360
Pre-feasibility Study
6
Britannia Resource Centre
INITIAL START-UP COST
Description
Amount in (£)
Local Purchases - Office Furniture & Equipment A. Office Furniture
Office Furniture Carpets & Reception Floor
850 300
Lightings & Sign Boards
450
Air conditioners (2)
500
Partitions & Renovations
300
Broacher & Books Stand
100
Total
2,500
B. Office Equipment
Computers (2)
600
Laptop
600
Printer, Scanner, Fax & Copier
250
PABX (3x8) & Phones
250
Total Pre-operating Cost Opening Ceremony
1,700
1,000
Software License Fee 1 Franchise Fee & Security
500 5,500
Pre-feasibility Study
7
Britannia Resource Centre
FRANCHISING PROCEDURE
7.1
Objectives and Benefits
The BWG wishes to recognize organization /Persons that has the capability to handle the BRC projects. Applications for recognition are welcomed from organizations throughout the world. The benefits of such recognition are following: 7.1.1
For the General Public
Assurance that the organization has adequate resources for the professional services based from UK. 7.1.2
For the Franchisee
Highest Rate of Investment Return Lowest risk based project Professional Recognition UK based services procedure International projects participations Employment Plans Financial Management Consultancy Promotion and Marketing Supports by increasing business volume Staff, Faculty Training Supports Free Participation in Professional Development Events Feasibility study of the project Management Policies Quality control panel and Procedure (3QA Model)
Pre-feasibility Study
Britannia Resource Centre
The Country Executive notifies the Body of the decision of the panel. BWG Executive Council grants final Approval Letter and Certificate. In order to maintain its recognition, the Organization must comply with section 4 of the Recognition Regulations, which includes the provision of an annual performance report to the BWG. The BWG Country Branch / Director International Development may carry out audit visits to BRC at short notice.
7.3 7.3.1
BRC Recognition Regulations Application for Recognition
All applications for recognition must be made in writing to the BWG Country Branch and must consist of the following: A submission containing all of the information listed in section 2 below; An Application Declaration signed by the responsible person within the organization; The correct fee Bank Draft on the name of “HC”. Initial assessment fee with application will be submitted amount Rs.2500 and remaining development fee will be paid after final approval, In case of rejection of application the Initial Assessment fee will be none. All applications will acknowledge. If any part of the application is incomplete or unclear, the BWG will seek further information from the organization, which will delay processing of the application. Important note: Prior to granting of recognition, Organization is not authorized to advertise their intention to seek recognition. Breach of this regulation may lead to rejection of their application. If any applicant is, fail to submit the balance fee with in 1-week initial assessment fee will not be refunded.
Pre-feasibility Study
Britannia Resource Centre
Academic and professional qualifications with names of awarding bodies, dates achieved and copies of certificates, Professional memberships and affiliations with membership numbers and dates joined, Experience, in reverse chronological order, including: - Academic administration experience - Relevant industrial/commercial experience. 2.8 Quality assurance procedures 3. Recognition decision The BWG will make a recognition decision, Recognition granted, or Recognition not granted for the reasons given. Where recognition is not granted, the organization may submit a further application. Once recognition is granted, the organization may advertise the fact using the approved wording supplied by the BWG. 4. Continuation of recognition The BWG will continue to recognized status providing that the following conditions are met: Satisfactory annual performance reports are submitted; Any audit visits that take place are satisfactory; No misleading claims are brought to the attention of the BWG; The services continue to be offered. Further information about these conditions is provided below. 4.1 Annual performance reports BRC must submit to the BWG a performance report in May of each year containing the following information: Copies of all relevant publicity and promotional material used during the year; Staff changes during the year;
Pre-feasibility Study
Britannia Resource Centre
Counseling staffs are professional, have appropriate qualifications (e.g. relevant degree), are skilled in counseling and have knowledge and training; certified by BWG. Counseling staff has adequate time and resources to provide counseling. The organization keeps its resources up-to-date and relevant to the information being delivered. The organization is financially sound. The organization operates quality assurance procedures. The organization promotes its courses to those students who have a realistic likelihood of passing the Examinations and makes clear in its advertising and promotional material what prior knowledge is expected. The organization operates effective administrative procedures. Britannia Recourse Centre: Approved wording of promotional material Britannia Recourse Centre which have been granted recognition in accordance with section 3 of the Recognition Regulations and which have maintained that recognition in accordance with section 4 of the Recognition Regulations may advertise such recognition as described below. This guidance relates to advertisements, brochures, letterheads and all promotional material. For material relating to specific recognized courses. 6. Acceptable abbreviations “BRITANNIA RECOURSE CENTRE” A logo will be provided for Britannia Recourse Centre.
*Important note Recognized BRC must not state or imply that BWG recognition extends to services, which are not recognized. Any breach of this requirement may result in recognition being withdrawn in accordance with section 4 of the Recognition Regulations.
Pre-feasibility Study
8
Britannia Resource Centre
FRANCHISEE SUPPORT
BRC is a unique Project in the professional history of Great Britain and give a new concept of subscribed services for fist time, based from UK. The services provided by BRC cannot be available from UK in so lower price. UK is the country with all cultures and traditions this service model is based on Old traditional Professional stile of United Kingdom. BWG provide support to a new franchisee at all stages of BRC projects Before Project Start During Project Completion. After Completion of Project BWG has formed BRC in such a way that to work with us is itself a great privilege a learning experience.
Before Project Start Application Preparation Market Potential Calculation Training in at BWG Head Office UK Conceptual Framework Understanding Planning and Financial Analysis Free Feasibility Study Get free advice and presentation about projects Professional Expertise from UK
During Project Completion Help for Check list completion Recruitment of Staff
Pre-feasibility Study
9
Britannia Resource Centre
BRC CHECK LIST
After approval of application BRC checklist has to be complied. Following is the details of the checklist: Please ensure that all items are checked and any reasons for non-submission recorded in the comments section below. Documents should be compiled in the order listed. Mailing Ref: ___________________
Receiving Date: _________________________
Applicant Name: ________________
APP Code: _____________________________
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17)
Proposed Locations for Centre 3 Computers (P-IV) with networking and Internet support Three separate office tables with 3 persons attendees capacity on each Two Telephone Lines-one for phone and one for fax Central Air Conditioned Office Laser Printer and Scanner Material display desks and wall clocks A separate Bank Account Proposed Location/hotel for opening ceremony City Survey Report BRC Recognition Kit Complete Knowledge Bank Draft for Development Cost 5 Recent Photographs ID Card Copies Inspection Clearance Letter from Country Branch Office Indoor Plants, Fans, lights, racks, stationary etc. External Boards Notice Boards
YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES
/ / / / / / / / / / / / / / / / /
NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO
Pre-feasibility Study
Britannia Resource Centre
10 SURVEY QUESTIONNAIRE
BWG is required with the following survey questionnaire. It must be completed before the starting of a BRC Centre in a City. This surrey helps in potential calculation and risk management.
Population of city Area of city Youth population Per capital income Literacy rate No. of Govt. employees No. of self employed No. of daily newspapers Number of weeklies Number of monthly magazines Number of four-star hotels Number of public places Average number of public events per month Percentage of middle class and upper class What are the area divisions What are central areas of the city What are the main roads of the city List of school, colleges and universities with their details of courses offering,
Pre-feasibility Study
Britannia Resource Centre
11 FINANCIAL ANALYSIS
2
11.1 Revenue No. of Applicants YEAR 1 YEA R 2 Category Q1 Q2 Q3 Q4 Applica No. of No. of No. of No. of nt s Applica Applica Applicant Applica T O T A L
Y EAR 3
Y EA R 4
3 9% 95 72 72 48 24 36 24 72 24 7 72 544
4 1% 10 0 75 75 50 25 38 25 75 25 8 75 57 2
43 % 10 5 79 79 53 26 39 26 79 26 8 79 60 0
1 st Q u arte d Qu art rd Qu a te th Qu a rt Y EA R 1 Y E A R 2
Y EAR 3
Y EA R 4
5% Students Professionals Business HSMP Work Immigration Investors General and University Services for N on Total
24 6 18 4 18 4 12 3 61 92 61 18 4 61 18 18 4 1,400
12 9 9 6 3 5 3 9 3 1 9 70
7% 17 13 13 9 4 6 4 13 4 1 13 98
1 0% 25 18 18 12 6 9 6 18 6 2 18 140
15 % 37 28 28 18 9 14 9 28 9 3 28 21 0
37% 91 68 68 45 23 34 23 68 23 7 68 51 8
YEAR 5
45% 11 0 83 83 55 28 41 28 83 28 8 83 63 0
YEA R 6
47 % 11 6 87 87 58 29 43 29 87 29 9 87 66 2
YEA R 7
5 0% 12 2 91 91 61 30 46 30 91 30 9 91 69 5
YEAR 8
5 2% 12 8 96 96 64 32 48 32 96 32 10 96 72 9
YEA R 9
55% 13 4 10 1 10 1 67 34 50 34 10 1 34 10 10 1 76 6
Y E A R 10
5 7% 14 1 10 6 10 6 70 35 53 35 10 6 35 11 10 6 80 4
Income Statement YEAR 5
YEA R 6
YEA R 7
YEAR 8
YEA R 9
Y E A R 10 £ in actual
SALES REVENUE Students Professionals Business HSMP Work Immigration Investors General and University Services for No n Revenue
2
1,535 1,197 1,382 1,535 768 1,151 614 1,151 1,228 461 46 1
2,149 1,676 1,934 2,149 1,075 1,612 86 0 1,612 1,719 64 5 64 5
3,070 2,395 2,763 3,070 1,535 2,303 1,228 2,303 2,456 92 1 92 1
4,605 3,592 4,145 4,605 2,303 3,454 1,842 3,454 3,684 1,382 1,382
11,360 8,861 10,224 11,360 5,680 8,520 4,544 8,520 9,088 3,408 3,408
12,524 9,393 9,393 6,262 3,131 4,697 3,131 9,393 3,131 93 9 9,393
13,808 10,770 12,427 13,808 6,904 10,356 5,523 10,356 11,046 4,142 4,142
15,223 11,874 13,701 15,223 7,612 11,417 6,089 11,417 12,178 4,567 4,567
16,783 13,091 15,105 16,783 8,392 12,588 6,713 12,588 13,427 5,035 5,035
18,504 14,433 16,653 18,504 9,252 13,878 7,401 13,878 14,803 5,551 5,551
20,400 15,912 18,360 20,400 10,200 15,300 8,160 15,300 16,320 6,120 6,120
22,491 17,543 20,242 22,491 11,246 16,868 8,997 16,868 17,993 6,747 6,747
24,797 19,341 22,317 24,797 12,398 18,598 9,919 18,598 19,837 7,439 7,439
27,338 21,324 24,605 27,338 13,669 20,504 10,935 20,504 21,871 8,202 8,202
11,48 2
1 6,0 75
2 2,9 65
34 ,4 4 7
84,97 0
15 8,458
30 0,840
578 ,716
1 ,1 22,98 4
2,160 ,9 98
4 ,16 3,5 39
8 ,026,2 37
15 ,47 3,758
29,82 4,5 32
Financial Analysis is based on assumptions, therefore the results may vary from city to city 25
Pre-feasibility Study
Britannia Resource Centre
11.2 Projected Income Statement Income Statement 1st Quarte d Quart rd Quate h Quart YEAR 1 YEAR 2 YEAR 3 YEAR 4
YEAR 5
YEAR 6
YEAR 7
YEAR 8
YEAR 9
8, 026, 237 15, 473, 758
SALES REVENUE Revenue
11,482
16,075
22,965
Operating Expenses Marketing (BRC Local 625 625 625 Marketing (joint) 625 Staff Salaries 600 600 600 Office Rent 750 750 750 Mailing and charges 150 150 150 Stationary 250 250 250 Janitorial Staff 90 90 90 Maintainence Expense 300 300 300 BWG Training & Development Fee- 2nd year onwards Depreciation Expense 105 105 105 Amortization Expense 350 350 350 Utilities 510 510 510
34, 447
84, 970 158, 458
625 625 600 750 150 250 90 300
2,500 1,250 2,400 3,000 600 1,000 360 1,200
105 350 510
420 1,400 2,040
2,375 1,250 2,640 3,300 660 1,100 396 1,320 2,000 420 1,400 2,244
YEAR 10 £ in actual
300, 840
578, 716
1, 122,984
2,160, 998
4, 163,539
29, 824,532
2,143 1,250 3,194 3,993 799 1,331 479 1,597 2,200 420 1,400 2,715
1,838 1,250 4,252 5,315 1,063 1,772 638 2,126 2,420 420 1,400 3,614
1,497 1,250 6,225 7,781 1,556 2,594 934 3,112 2,662 420 1,400 5,291
1,158 1,250 10,025 12,532 2,506 4,177 1,504 5,013 2,928 420
851 1,250 17,761 22,201 4,440 7,400 2,664 8,880 3,221 420
595 1,250 34,610 43,263 8,653 14,421 5,192 17,305 3,543 420
394 1,250 74,190 92,738 18,548 30,913 11,129 37,095 3,897 420
249 1,250 174,937 218,671 43,734 72,890 26,241 87,469 4,287 420
8,522
15,097
29,419
63,062
148,697
Other Expenses BWG Administration Long Term Loan Intere
5,741 -
8,038 -
11,482 -
17, 224 -
42, 485 -
79,229 -
150,420 -
289,358 -
561,492 -
1,080,499 -
2,081,769 4,013,118 -
7,736,879 -
14,912,266 -
Total Expense
9,471
11,768
15,837
21, 579
58, 655
98,334
171,942
315,464
596,215
1,130,534
2,165,954 4,171,789
8,070,515
15,691,111
Earning before tax Tax
2,011
4,308
7,127
12, 869
26, 315
60,124
128,898
263,252
526,770
1,030,464
1,997,584 3,854,448
7,403,243
14,133,421
NET PROFIT
2,011
4,308
7,127 12, 869
26, 315
60,124
128,898
263,252
526,770
1,030,464
1,997,584 3,854,448
7,403,243
14,133,421
26,315
26,315 86,439
86,439 215, 337
215, 337 478, 589
478,589 1, 005,358
1,005,358 2,035, 822
2,035,822 4,033,406 7,887,855 4, 033,406 7, 887, 855 15, 291, 097
15,291,097 29, 424,518
Balance brought forward Balance carried forward
26
Pre-feasibility Study
Britannia Resource Centre
11.3 Projected Cashflow Statement Statement Summaries Cash Flow Statement
SMEDA
Year 4
Year 5
Year 6
128,898 263,252 420 420 1,400 1,400 (220) (411) (661) (1,233) 129,837 263,427
526,770 420 1,400 (792) (2,375) 525,423
1,030,464 420 (1,612) (4,835) 1,024,438
Year 9
£ in actual Year 10
1,997,584 3,854,448 420 420 (3,510) (8,246) (10,531) (24,738) 1,983,963 3,821,885
7,403,243 420 (20,989) (62,967) 7,319,707
14,133,421 420 36,445 109,336 14,279,622
Year 1
Year 2
Operating activities Net profit Add: depreciation expense amortization expense Stationary inventory (500) Pre-paid building rent (1,500) Cash provided by operations (2,000)
26,315 420 1,400 (50) (150) 27,935
60,124 420 1,400 (116) (347) 61,482
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,650
27,935
61,482
129,837
263,427
525,423
1,024,438
1,983,963
3,821,885
7,319,707
14,279,622
Cash balance brought forward Cash carried forward 3,650
3,650 31,585
31,585 93,067
93,067 222,904
222,904 486,331
486,331 1,011,754
1,011,754 2,036,192
2,036,192 4,020,154
4,020,154 7,842,039
7,842,039 15,161,746
15,161,746 29,441,368
Financing activities Change in long term debt Change in short term debt Issuance of shares 16,850 Cash provided by / (used for 16,850
Year 3
Year 8
Year 0
Year 7
Investing activities Capital expenditure (11,200) Cash (used for) / provided b (11,200)
NET CASH
27
Pre-feasibility Study
Britannia Resource Centre
11.4 Projected Balance Sheet Statement Summaries Balance Sheet
SMEDA
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
£ in actual Year 10
Assets Current assets Cash & Bank Stationary Inventory Pre-paid building rent Total Current Assets
3,650 500 1,500 5,650
31,585 550 1,650 33,785
93,067 666 1,997 95,729
222,904 886 2,657 226,447
486,331 1,297 3,891 491,519
1,011,754 2,089 6,266 1,02 0,108
2,036,192 3,700 11,100 2,050,992
4,020,154 7,210 21,631 4,048,996
7,842,039 15,456 46,369 7,9 03,865
15,161,746 36,445 109,336 15, 30 7,527
29,441,368 29,441, 368
Fixed assets Machinery & equipment Furniture & fixtures Total Fixed Assets
1,700 2,500 4,200
1,530 2,250 3,780
1,360 2,000 3,360
1,190 1,750 2,940
1,020 1,500 2,520
850 1,250 2,100
680 1,000 1,680
510 750 1,260
340 500 840
170 250 420
6,500 6,500 16,350
5,200 5,200 42,765
3,900 3,900 102,989
2,600 2,600 231,987
1,300 1,300 495,339
1,022,208
2,052,672
4,050,256
7,904,705
15,307,947
Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS
-
29,441,368
Liabilities & Shareholders' Equity Current liabilities Short term debt Total Current Liabilities
-
-
-
-
-
-
-
-
-
-
-
Other liabilities Long term debt Total Long Term Liabilities
-
-
-
-
-
-
-
-
-
-
-
16,850 16,850 16,850
16,850 26,315 43,165 43,165
Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIA
16,850 86,439 103,289 103,289
16,850 215,337 232,187 232,187
16,850 478,589 495,439 495,439
28
16,850 1,005,358 1, 02 2,208 1,022,208
16,850 2,035,822 2,052,672 2,052,672
16,850 4,033,406 4,050, 256 4,050,256
16,850 7,887,855 7,9 04,705 7,904,705
16,850 15,291,097 15, 30 7,947 15,307,947
16,850 29,424,518 29,441, 368 29,441,368
Pre-feasibility Study
Britannia Resource Centre
11.5 Assumptions Expense Assumptions Marketing Expenses BRC Local(per month) Marketing Expenses Joint(per month) Decrease in M arketing Expenses No. of Staff Monthly Salary (Each) Annual Growth Rate of salary Office Rent (per Month) Annual Growth Rate in Rent Mailing and charges (per month) Annual Growth Rate of mailing charges Utilities (electricity, telephone, fax) BWG A dministration Fee (%) Statinary Mainta inence Expense (per month) Depreciation Expense Amortization Expense Interest Rate Loan paymet period (year) Installments (in a year) Revenue Assumptions Category Total Capacity (Applications per year) Annual Growth Rate in Applicants Annual Growth Rate in Selling Price Year 1 Capacity Students Members Professionals Members Business Member HSMP Services Work Permits Services Immigration Services Investors Services General and Medical Visitors University Commissions Services for UK Companies Non members Services
208 208 5% 2 100 10% 250 10% 50 10% 170 50% 83 100 10% 20% 14% 5 1
Fee 1,400 5% 5% 57% 125 130 150 250 250 250 200 125 400 500 50
29
Product Mix 18% 13% 13% 9% 4% 7% 4% 13% 4% 1% 13%
(December 2005)
Pre-feasibility Study
Britannia Resource Centre
DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. SMEDA has only performed its role in compiling this document on the basis of data/ information provided by BWG (Britannia Wise Group). Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ from the presented information. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum/ document document or due to any any act act of BWG (Britannia (Britannia-Wise -Wise Group) Group) in consequence consequence of undertaking any activity/ activities on the basis of this document. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information he/she feels necessary for making an informed decision. For more information on services offered by SMEDA, please contact our website: www.smeda.org.pk
Pre-feasibility Study
Britannia Resource Centre
Table of Content 1
2
3
4
5 6 7
Introduction................................................................................................................4 1.1 Britannia Resource Centre (BRC) .......................................................................4 1.2 BWG/ BRC Objectives .......................................................................................4 1.3 BRC Activities and Services ...............................................................................4 1.4 Opportunity Rationale.........................................................................................5 1.5 Management Structure ........................................................................................6 Pakistan Profile...........................................................................................................7 2.1 Current Market Situation/ Market Potential.........................................................7 2.2 Target Market .....................................................................................................7 Product.......................................................................................................................8 3.1 Services ..............................................................................................................8 3.1.1 Educational Services Schedule ....................................................................8 3.1.2 Corporate Services Schedule .....................................................................11 3.1.3 HSMP, Work Permit and Immigration Services schedule ..........................12 3.2 Pricing Strategy ................................................................................................15 3.3 Unique Features................................................................................................15 Advertisement ..........................................................................................................16 4.1 International Marketing.....................................................................................16 4.2 Joint marketing .................................................................................................16 4.3 Individual Marketing.........................................................................................16 Human Resource Requirement..................................................................................16 Initial Start-up Cost ..................................................................................................17 Franchising Procedure ..............................................................................................18 7.1 Objectives and Benefits.....................................................................................18 7.1.1 For the General Public...............................................................................18 7.1.2 For the Franchisee .....................................................................................18
Pre-feasibility Study
1
Britannia Resource Centre
INTRODUCTION
1.1
Britannia Resource Centre (BRC)
Britannia Resource Centre (BRC) (website: www.brcworldwide.com) is a project initiated by Britannia-Wise Group (BWG) (website: www.bwguk.org), a group of two leading British Organizations, Britannia Educational Bureau and Training Wise (website: www.trainingwise.co.uk). BRC is a unique project in the professional history of Great Britain and gives a new concept of subscribed services for the first time originated from UK The services provided by BRC can never be available from UK at such a low rate. This service model is based on old traditional Professional style of United Kingdom a country rich in multiple culture and traditions BRC welcomes students, businesspersons, professionals and general public from all over the world to join our Professional World and receive all types of relevant services and advice free form UK. BRC services span is spread from a common person to a professional one. BRC can support you in all relevant areas of your problems and enquiry from best in house Professional Expertise and Consultancy Partners. 1.2
BWG/ BRC Objectives
To promote a wider knowledge of British Educational System and professional structure world wide Encourage Cultural Scientific, Technological and other Educational co-operation between the United Kingdom and other countries To support and guide the Schools, Colleges & Universities in Professional academics Setup and its upgrading To provide community (Young people/People with a disability/ Special Needs/ public)
Pre-feasibility Study
Britannia Resource Centre
4. BRC provides services worldwide to its members. 5. BRC provides professional’s training, skill development & placement. 6. BRC conducts Seminars, Workshops, Symposia Camps and Conferences for the promotion and enhancement of British Professional Education. 7. BRC provides a comprehensive guidance guild for the students, parents and educationists introducing every fresh event of British Education and Training Advancement. 8. BRC coordinates with leading International welfare organizations and institutions for Scholarship, Financial Aid and Grant for the Brilliant, Disabled and Deserving Students. 9. BRC is launching unique setup for the Distance, Continuing and Open Education Network for the employed and busy people. 10. BRC lineup a concrete circuit of business oriented organizations and leading establishments for on-job training, executive placement and appropriate employment in commercial fields. 11. BRC provides its members the professional support with participation in latest professional training and development events. 12. BRC supports Public Welfare Projects by Increasing Professionals, Decreasing Unemployment, Supporting Economy, Building Professional Structure and by supporting Trade and Industry 1.4
Opportunity Rationale
Life is defined by “Security” and the world is defined by “Change”. The world is not so as it seemed to be a hundred years ago or so, it has passed through tremendous technological, industrial and social changes. This accelerating change in the world has made future demands unlimited but attainable and only through the support of International Resources Connectivity.
Pre-feasibility Study
1.5
Britannia Resource Centre
Management Structure Chairman BWG UK
Director Operations & Admin UK
Director International Development
Director Projects/Trainings UK
Director Asia (Pakistan)
Country Representative India
BRC Setup
Manager BRC
Country Representative China
Country Representative Pakistan
Country Representative Sirilanka
Business Partner Pakistan
Manager BRC
Consoler
Manager BRC
Marketing Executive
Consoler
Country Representative Bangladesh
Business Partner Pakistan
BP Setup
Systems Executive
Office Executive
Secretary
Office Boy
Office Boy
6
Pre-feasibility Study
2
Britannia Resource Centre
PAKISTAN PROFILE
2.1
Current Market Situation/ Market Potential
According to the statistics provided by British Government UK Home Office UK Visa Policy for Pakistan is very accommodating. Considering the previous statistics in 2004-5 the applicants will be more than 250,000. YEAR 2002-3 YEAR 2002-4 City Total Refused % of Total Refused % of Application Refusal Application Refusal Islamabad 62,286 7,670 12.3% 121,098 21,768 18.0% Karachi 11,757 2,503 21.3% 1,802 7 0.4% Majority from Pakistan Students, Professional and Businessmen are interested to go to UK for their Career and Business Development and each year the applicants increase more than double. 2.2
Target Market
Target market for BRC is:
Businessperson Students Professionals Investors Companies Colleges & Universities
Pre-feasibility Study
3
Britannia Resource Centre
PRODUCT
3.1 3.1.1
Services Educational Services Schedule
*Terms and conditions apply Service Services Descriptions Code
EDU 505
Career Information Services BRC provide you the awareness about professional, professionalism, career choosing, career build
Awareness about different Professions Selection of Career Understanding about international professional sector World wide professional bodies Getting International Memberships of Professional Bodies Understating of Professional Code of Conduct Global changes in professional sector Future Planning Guidance
Members (Rate in Pounds)
Free
Non Members (Rate in Pounds) 50
Pre-feasibility Study
EDU 506
Education and section services
Britannia Resource Centre
Technical
Knowledge
This section provides you services related professional education, planning, course management etc. Selection of Professional Course Provision of the Admission form from the desired University. Collection and checking of all the documentation required for the Admission. Application for admission and correspondence with the University. In order to provide our Admission Services, we need to know the precise details of your proposed course of study, as well as the name of the university at which you intend to study. If you are not sure, BRC can offer you two alternatives: a. Career Information Service We'll give you personalized information about your preferred course of study. This provides you with the optimum basis for choosing a university. b. If you don't have a preferred university in UK BRC can .select a university for you based on your proposed course .of
Free
50
Pre-feasibility Study
EDU 510 EDU 511
EDU 512
Britannia Resource Centre
Professional Linguists Assessment Testing Free Services DISCOUNTED ACCOMMODATION 50 per week SERVICE First Time in UK: BRC provide a special package for the students and members come first time in Britain at lowest accommodation cost. Regular Accommodation: If you want to stay in UK more than on 2 week we help you to find you the accommodation of your choice. We will also check that the rental contract complies with British law for you on request. In addition to the fee of this service and the monthly rent, you may also have to pay a deposit, depending on the type of accommodation chosen. These costs are usually refunded once the rent has ended. AIRPORT PICKUP SERVICE & HOME 40 CALL You will be personally collected by one of our representatives, whether from the nearest airport or railway station. It is also possible to arrange transportation for you from any airport or station in UK. Once introductions have been completed, you will be given the opportunity to make a
25 70 per week
50
Pre-feasibility Study
Britannia Resource Centre
Online Task Manager Online Annual Calendar Memo Writing Online Troubleshooting Financial Assistance (Scholarships &Loans) Professional Events Participation
EDU 516 EDU 517 EDU 518 EDU 519 EDU 520
BWG Performance Awards Job Placement Free Service for National Insurance and Medical 25 Card Service for Visa Extension Free
EDU 521 3.1.2
15 40 Discounted
50 No Discount 50 50 50
Corporate Services Schedule
Service Code
BSS 605
BSS 606 BSS 607 BSS 608
Services Descriptions
Members (Rate in Pounds)
Communication support Free International Collaborations and Match Making International projects participations Financial Management Consultancy 100 Management Policies Formation Feasibility study of the project 100 Research Partnership Free Consultancy Advice
Non Members (Rate in Pounds) 100
200 250 100
Pre-feasibility Study
BSS 617
3.1.3
Objectives and Standards Joint Venture Programs and Projects, Workshops with International Professional Bodies and Institutions.
Britannia Resource Centre
Free
100
HSMP, Work Permit and Immigration Services schedule
Service Code
Services Descriptions
GEN 705
Highly Skilled Migration Program HSMP Services is dedicated to provide the support and services to the members who decide to come to the UK under HSMP scheme in their effort to relocate to the UK and start working in the UK » Job Searching » HSMP Assessment and Application Preparation » E-Consultation » Application Plan » Full Representation Service » Assessment Form » Long Residence » Family Immigration » Extension Application » Permanent Residence
Members (Rate in Pounds)
200
Non Members (Rate in Pounds) 250
Pre-feasibility Study
» Training and work experience The training and work experience arrangements enable people from outside the EEA to undertake work-based training for a professional or specialist qualification, or a period of work experience. Please use form WP1 when applying for first work permits and for changes of employment or use WP1X for extensions to existing work permits. Please see the 'Guidance notes for employers on how to apply for training and work experience work permit' (Training and work experience (notes) for further details. » Sportspeople and entertainers The sportspeople and entertainers arrangements allow employers in this country to employ established sportspeople, entertainers, cultural artists and some technical/support people from outside the EEA. Please use form WP3 when applying for first work permits, multiple entry work permits and for changes of employment or use WP3X for extensions to existing work permits. Please see the 'Guidance notes for employers on how to apply for a sportspeople and entertainers work permit' (Sportspeople and entertainers (notes)) for further details.
Britannia Resource Centre
Pre-feasibility Study
Britannia Resource Centre
rules made under the General Agreement on Trade in Services (GATS). The company abroad that is contracted to provide the service needs to apply using the application form GATS1.
GEN 707
» Highly Skilled Migrant Entry Programme The highly skilled migrant entry programme (HSMP) allows highly skilled individuals to migrate to the United Kingdom. Further details can be found at British Embassies, High Commission. General Visitors
GEN 708
Travel and Vehicle Hiring Arrangement of Hotels/Motels/Apartments Lodging Sightseeing Immigration and Visa Consultancy Travel Guide Medical Visitor
Best Hospital recommendation Doctor’s appointment Arrangement of medical finance Medicine supplies Hospital enrollment
125
125
Pre-feasibility Study
3.2
Britannia Resource Centre
Pricing Strategy
BRC provides services from best in house Professional Expertise and Consultancy Partners Globally. Due to large corporate alliances the services price is affordable to everyone. BWG has special policy for developing countries to provide subsidies services. 3.3
Unique Features
BRC is a unique project of its kind and no foreseeable competition is expected in such vide range of services. Total service structure is UK based and no local consultancy or advisor or cash handling is provided or taken-up. BRC works as Customer Services Centers. Largest Professional Consultancy Partners worldwide BRC is the only approved Resource Centre by BWG in Pakistan BWG is the member of International Franchise Association, USA. All services are provided by top level professional sectors abroad from BWG UK. 100% Imported Services Structure Services available around the world Subsidized Service fee for developing countries The only 3 Q Quality Assurance Model in Asia Largest Corporate Ventures and Strategic Alliances in Pakistan Value Addition Support and Approved Project by SMEDA, Govt. of Pakistan Strategic Alliance with Lahore Chamber of Commerce for Business Sector Development UK Trained and Qualified Customer Services 24 hours online access to members to his / her enquiry database Legal placements
Pre-feasibility Study
4
Britannia Resource Centre
ADVERTISEMENT
4.1
International Marketing
International Marketing strategy is developed by BWG UK for all the international markets as well as very strong Web Portal for effective communication. 4.2
Joint marketing
Pakistan Marketing Strategy is developed by BWG and local Business Partners and the cost is shared between equally between BWG and BRC (50%), for all the activities through newspapers, journals, TV, printed materials and Web Marketing. Initial Marketing Budget for 2006 is approximately Rs.10 Million for 2006. 4.3
Individual Marketing
BRC city Marketing Strategy is developed by the local BRC and the cost is born b y the BRC, which is expected to be Rs. 25,000 per BRC per month. 5
HUMAN RESOURCE REQUIREMENT
Following is the human resource requirement for a BRC: Description
Customer Support Staff Janitorial Staff
No.
2 1
Monthly Salary (£) 100 30
Annual Salary (£) 2400 360
Pre-feasibility Study
6
Britannia Resource Centre
INITIAL START-UP COST
Description
Amount in (£)
Local Purchases - Office Furniture & Equipment A. Office Furniture
Office Furniture Carpets & Reception Floor
850 300
Lightings & Sign Boards
450
Air conditioners (2)
500
Partitions & Renovations
300
Broacher & Books Stand
100
Total
2,500
B. Office Equipment
Computers (2)
600
Laptop
600
Printer, Scanner, Fax & Copier
250
PABX (3x8) & Phones
250
Total Pre-operating Cost Opening Ceremony
1,700
1,000
Software License Fee 1 Franchise Fee & Security
500 5,500
Pre-feasibility Study
7
Britannia Resource Centre
FRANCHISING PROCEDURE
7.1
Objectives and Benefits
The BWG wishes to recognize organization /Persons that has the capability to handle the BRC projects. Applications for recognition are welcomed from organizations throughout the world. The benefits of such recognition are following: 7.1.1
For the General Public
Assurance that the organization has adequate resources for the professional services based from UK. 7.1.2
For the Franchisee
Highest Rate of Investment Return Lowest risk based project Professional Recognition UK based services procedure International projects participations Employment Plans Financial Management Consultancy Promotion and Marketing Supports by increasing business volume Staff, Faculty Training Supports Free Participation in Professional Development Events Feasibility study of the project Management Policies Quality control panel and Procedure (3QA Model)
Pre-feasibility Study
Britannia Resource Centre
The Country Executive notifies the Body of the decision of the panel. BWG Executive Council grants final Approval Letter and Certificate. In order to maintain its recognition, the Organization must comply with section 4 of the Recognition Regulations, which includes the provision of an annual performance report to the BWG. The BWG Country Branch / Director International Development may carry out audit visits to BRC at short notice.
7.3 7.3.1
BRC Recognition Regulations Application for Recognition
All applications for recognition must be made in writing to the BWG Country Branch and must consist of the following: A submission containing all of the information listed in section 2 below; An Application Declaration signed by the responsible person within the organization; The correct fee Bank Draft on the name of “HC”. Initial assessment fee with application will be submitted amount Rs.2500 and remaining development fee will be paid after final approval, In case of rejection of application the Initial Assessment fee will be none. All applications will acknowledge. If any part of the application is incomplete or unclear, the BWG will seek further information from the organization, which will delay processing of the application. Important note: Prior to granting of recognition, Organization is not authorized to advertise their intention to seek recognition. Breach of this regulation may lead to rejection of their application. If any applicant is, fail to submit the balance fee with in 1-week initial assessment fee will not be refunded.
Pre-feasibility Study
Britannia Resource Centre
Academic and professional qualifications with names of awarding bodies, dates achieved and copies of certificates, Professional memberships and affiliations with membership numbers and dates joined, Experience, in reverse chronological order, including: - Academic administration experience - Relevant industrial/commercial experience. 2.8 Quality assurance procedures 3. Recognition decision The BWG will make a recognition decision, Recognition granted, or Recognition not granted for the reasons given. Where recognition is not granted, the organization may submit a further application. Once recognition is granted, the organization may advertise the fact using the approved wording supplied by the BWG. 4. Continuation of recognition The BWG will continue to recognized status providing that the following conditions are met: Satisfactory annual performance reports are submitted; Any audit visits that take place are satisfactory; No misleading claims are brought to the attention of the BWG; The services continue to be offered. Further information about these conditions is provided below. 4.1 Annual performance reports BRC must submit to the BWG a performance report in May of each year containing the following information: Copies of all relevant publicity and promotional material used during the year; Staff changes during the year;
Pre-feasibility Study
Britannia Resource Centre
Counseling staffs are professional, have appropriate qualifications (e.g. relevant degree), are skilled in counseling and have knowledge and training; certified by BWG. Counseling staff has adequate time and resources to provide counseling. The organization keeps its resources up-to-date and relevant to the information being delivered. The organization is financially sound. The organization operates quality assurance procedures. The organization promotes its courses to those students who have a realistic likelihood of passing the Examinations and makes clear in its advertising and promotional material what prior knowledge is expected. The organization operates effective administrative procedures. Britannia Recourse Centre: Approved wording of promotional material Britannia Recourse Centre which have been granted recognition in accordance with section 3 of the Recognition Regulations and which have maintained that recognition in accordance with section 4 of the Recognition Regulations may advertise such recognition as described below. This guidance relates to advertisements, brochures, letterheads and all promotional material. For material relating to specific recognized courses. 6. Acceptable abbreviations “BRITANNIA RECOURSE CENTRE” A logo will be provided for Britannia Recourse Centre.
*Important note Recognized BRC must not state or imply that BWG recognition extends to services, which are not recognized. Any breach of this requirement may result in recognition being withdrawn in accordance with section 4 of the Recognition Regulations.
Pre-feasibility Study
8
Britannia Resource Centre
FRANCHISEE SUPPORT
BRC is a unique Project in the professional history of Great Britain and give a new concept of subscribed services for fist time, based from UK. The services provided by BRC cannot be available from UK in so lower price. UK is the country with all cultures and traditions this service model is based on Old traditional Professional stile of United Kingdom. BWG provide support to a new franchisee at all stages of BRC projects Before Project Start During Project Completion. After Completion of Project BWG has formed BRC in such a way that to work with us is itself a great privilege a learning experience.
Before Project Start Application Preparation Market Potential Calculation Training in at BWG Head Office UK Conceptual Framework Understanding Planning and Financial Analysis Free Feasibility Study Get free advice and presentation about projects Professional Expertise from UK
During Project Completion Help for Check list completion Recruitment of Staff
Pre-feasibility Study
9
Britannia Resource Centre
BRC CHECK LIST
After approval of application BRC checklist has to be complied. Following is the details of the checklist: Please ensure that all items are checked and any reasons for non-submission recorded in the comments section below. Documents should be compiled in the order listed. Mailing Ref: ___________________
Receiving Date: _________________________
Applicant Name: ________________
APP Code: _____________________________
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17)
Proposed Locations for Centre 3 Computers (P-IV) with networking and Internet support Three separate office tables with 3 persons attendees capacity on each Two Telephone Lines-one for phone and one for fax Central Air Conditioned Office Laser Printer and Scanner Material display desks and wall clocks A separate Bank Account Proposed Location/hotel for opening ceremony City Survey Report BRC Recognition Kit Complete Knowledge Bank Draft for Development Cost 5 Recent Photographs ID Card Copies Inspection Clearance Letter from Country Branch Office Indoor Plants, Fans, lights, racks, stationary etc. External Boards Notice Boards
YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES
/ / / / / / / / / / / / / / / / /
NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO
Pre-feasibility Study
Britannia Resource Centre
10 SURVEY QUESTIONNAIRE
BWG is required with the following survey questionnaire. It must be completed before the starting of a BRC Centre in a City. This surrey helps in potential calculation and risk management.
Population of city Area of city Youth population Per capital income Literacy rate No. of Govt. employees No. of self employed No. of daily newspapers Number of weeklies Number of monthly magazines Number of four-star hotels Number of public places Average number of public events per month Percentage of middle class and upper class What are the area divisions What are central areas of the city What are the main roads of the city List of school, colleges and universities with their details of courses offering,
Pre-feasibility Study
Britannia Resource Centre
11 FINANCIAL ANALYSIS
2
11.1 Revenue No. of Applicants YEAR 1 YEA R 2 Category Q1 Q2 Q3 Q4 Applica No. of No. of No. of No. of nt s Applica Applica Applicant Applica T O T A L
Y EAR 3
Y EA R 4
3 9% 95 72 72 48 24 36 24 72 24 7 72 544
4 1% 10 0 75 75 50 25 38 25 75 25 8 75 57 2
43 % 10 5 79 79 53 26 39 26 79 26 8 79 60 0
1 st Q u arte d Qu art rd Qu a te th Qu a rt Y EA R 1 Y E A R 2
Y EAR 3
Y EA R 4
5% Students Professionals Business HSMP Work Immigration Investors General and University Services for N on Total
24 6 18 4 18 4 12 3 61 92 61 18 4 61 18 18 4 1,400
12 9 9 6 3 5 3 9 3 1 9 70
7% 17 13 13 9 4 6 4 13 4 1 13 98
1 0% 25 18 18 12 6 9 6 18 6 2 18 140
15 % 37 28 28 18 9 14 9 28 9 3 28 21 0
37% 91 68 68 45 23 34 23 68 23 7 68 51 8
YEAR 5
45% 11 0 83 83 55 28 41 28 83 28 8 83 63 0
YEA R 6
47 % 11 6 87 87 58 29 43 29 87 29 9 87 66 2
YEA R 7
5 0% 12 2 91 91 61 30 46 30 91 30 9 91 69 5
YEAR 8
5 2% 12 8 96 96 64 32 48 32 96 32 10 96 72 9
YEA R 9
55% 13 4 10 1 10 1 67 34 50 34 10 1 34 10 10 1 76 6
Y E A R 10
5 7% 14 1 10 6 10 6 70 35 53 35 10 6 35 11 10 6 80 4
Income Statement YEAR 5
YEA R 6
YEA R 7
YEAR 8
YEA R 9
Y E A R 10 £ in actual
SALES REVENUE Students Professionals Business HSMP Work Immigration Investors General and University Services for No n Revenue
2
1,535 1,197 1,382 1,535 768 1,151 614 1,151 1,228 461 46 1
2,149 1,676 1,934 2,149 1,075 1,612 86 0 1,612 1,719 64 5 64 5
3,070 2,395 2,763 3,070 1,535 2,303 1,228 2,303 2,456 92 1 92 1
4,605 3,592 4,145 4,605 2,303 3,454 1,842 3,454 3,684 1,382 1,382
11,360 8,861 10,224 11,360 5,680 8,520 4,544 8,520 9,088 3,408 3,408
12,524 9,393 9,393 6,262 3,131 4,697 3,131 9,393 3,131 93 9 9,393
13,808 10,770 12,427 13,808 6,904 10,356 5,523 10,356 11,046 4,142 4,142
15,223 11,874 13,701 15,223 7,612 11,417 6,089 11,417 12,178 4,567 4,567
16,783 13,091 15,105 16,783 8,392 12,588 6,713 12,588 13,427 5,035 5,035
18,504 14,433 16,653 18,504 9,252 13,878 7,401 13,878 14,803 5,551 5,551
20,400 15,912 18,360 20,400 10,200 15,300 8,160 15,300 16,320 6,120 6,120
22,491 17,543 20,242 22,491 11,246 16,868 8,997 16,868 17,993 6,747 6,747
24,797 19,341 22,317 24,797 12,398 18,598 9,919 18,598 19,837 7,439 7,439
27,338 21,324 24,605 27,338 13,669 20,504 10,935 20,504 21,871 8,202 8,202
11,48 2
1 6,0 75
2 2,9 65
34 ,4 4 7
84,97 0
15 8,458
30 0,840
578 ,716
1 ,1 22,98 4
2,160 ,9 98
4 ,16 3,5 39
8 ,026,2 37
15 ,47 3,758
29,82 4,5 32
Financial Analysis is based on assumptions, therefore the results may vary from city to city 25
Pre-feasibility Study
Britannia Resource Centre
11.2 Projected Income Statement Income Statement 1st Quarte d Quart rd Quate h Quart YEAR 1 YEAR 2 YEAR 3 YEAR 4
YEAR 5
YEAR 6
YEAR 7
YEAR 8
YEAR 9
8, 026, 237 15, 473, 758
SALES REVENUE Revenue
11,482
16,075
22,965
Operating Expenses Marketing (BRC Local 625 625 625 Marketing (joint) 625 Staff Salaries 600 600 600 Office Rent 750 750 750 Mailing and charges 150 150 150 Stationary 250 250 250 Janitorial Staff 90 90 90 Maintainence Expense 300 300 300 BWG Training & Development Fee- 2nd year onwards Depreciation Expense 105 105 105 Amortization Expense 350 350 350 Utilities 510 510 510
34, 447
84, 970 158, 458
625 625 600 750 150 250 90 300
2,500 1,250 2,400 3,000 600 1,000 360 1,200
105 350 510
420 1,400 2,040
2,375 1,250 2,640 3,300 660 1,100 396 1,320 2,000 420 1,400 2,244
YEAR 10 £ in actual
300, 840
578, 716
1, 122,984
2,160, 998
4, 163,539
29, 824,532
2,143 1,250 3,194 3,993 799 1,331 479 1,597 2,200 420 1,400 2,715
1,838 1,250 4,252 5,315 1,063 1,772 638 2,126 2,420 420 1,400 3,614
1,497 1,250 6,225 7,781 1,556 2,594 934 3,112 2,662 420 1,400 5,291
1,158 1,250 10,025 12,532 2,506 4,177 1,504 5,013 2,928 420
851 1,250 17,761 22,201 4,440 7,400 2,664 8,880 3,221 420
595 1,250 34,610 43,263 8,653 14,421 5,192 17,305 3,543 420
394 1,250 74,190 92,738 18,548 30,913 11,129 37,095 3,897 420
249 1,250 174,937 218,671 43,734 72,890 26,241 87,469 4,287 420
8,522
15,097
29,419
63,062
148,697
Other Expenses BWG Administration Long Term Loan Intere
5,741 -
8,038 -
11,482 -
17, 224 -
42, 485 -
79,229 -
150,420 -
289,358 -
561,492 -
1,080,499 -
2,081,769 4,013,118 -
7,736,879 -
14,912,266 -
Total Expense
9,471
11,768
15,837
21, 579
58, 655
98,334
171,942
315,464
596,215
1,130,534
2,165,954 4,171,789
8,070,515
15,691,111
Earning before tax Tax
2,011
4,308
7,127
12, 869
26, 315
60,124
128,898
263,252
526,770
1,030,464
1,997,584 3,854,448
7,403,243
14,133,421
NET PROFIT
2,011
4,308
7,127 12, 869
26, 315
60,124
128,898
263,252
526,770
1,030,464
1,997,584 3,854,448
7,403,243
14,133,421
26,315
26,315 86,439
86,439 215, 337
215, 337 478, 589
478,589 1, 005,358
1,005,358 2,035, 822
2,035,822 4,033,406 7,887,855 4, 033,406 7, 887, 855 15, 291, 097
15,291,097 29, 424,518
Balance brought forward Balance carried forward
26
Pre-feasibility Study
Britannia Resource Centre
11.3 Projected Cashflow Statement Statement Summaries Cash Flow Statement
SMEDA
Year 4
Year 5
Year 6
128,898 263,252 420 420 1,400 1,400 (220) (411) (661) (1,233) 129,837 263,427
526,770 420 1,400 (792) (2,375) 525,423
1,030,464 420 (1,612) (4,835) 1,024,438
Year 9
£ in actual Year 10
1,997,584 3,854,448 420 420 (3,510) (8,246) (10,531) (24,738) 1,983,963 3,821,885
7,403,243 420 (20,989) (62,967) 7,319,707
14,133,421 420 36,445 109,336 14,279,622
Year 1
Year 2
Operating activities Net profit Add: depreciation expense amortization expense Stationary inventory (500) Pre-paid building rent (1,500) Cash provided by operations (2,000)
26,315 420 1,400 (50) (150) 27,935
60,124 420 1,400 (116) (347) 61,482
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,650
27,935
61,482
129,837
263,427
525,423
1,024,438
1,983,963
3,821,885
7,319,707
14,279,622
Cash balance brought forward Cash carried forward 3,650
3,650 31,585
31,585 93,067
93,067 222,904
222,904 486,331
486,331 1,011,754
1,011,754 2,036,192
2,036,192 4,020,154
4,020,154 7,842,039
7,842,039 15,161,746
15,161,746 29,441,368
Financing activities Change in long term debt Change in short term debt Issuance of shares 16,850 Cash provided by / (used for 16,850
Year 3
Year 8
Year 0
Year 7
Investing activities Capital expenditure (11,200) Cash (used for) / provided b (11,200)
NET CASH
27
Pre-feasibility Study
Britannia Resource Centre
11.4 Projected Balance Sheet Statement Summaries Balance Sheet
SMEDA
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
£ in actual Year 10
Assets Current assets Cash & Bank Stationary Inventory Pre-paid building rent Total Current Assets
3,650 500 1,500 5,650
31,585 550 1,650 33,785
93,067 666 1,997 95,729
222,904 886 2,657 226,447
486,331 1,297 3,891 491,519
1,011,754 2,089 6,266 1,02 0,108
2,036,192 3,700 11,100 2,050,992
4,020,154 7,210 21,631 4,048,996
7,842,039 15,456 46,369 7,9 03,865
15,161,746 36,445 109,336 15, 30 7,527
29,441,368 29,441, 368
Fixed assets Machinery & equipment Furniture & fixtures Total Fixed Assets
1,700 2,500 4,200
1,530 2,250 3,780
1,360 2,000 3,360
1,190 1,750 2,940
1,020 1,500 2,520
850 1,250 2,100
680 1,000 1,680
510 750 1,260
340 500 840
170 250 420
6,500 6,500 16,350
5,200 5,200 42,765
3,900 3,900 102,989
2,600 2,600 231,987
1,300 1,300 495,339
1,022,208
2,052,672
4,050,256
7,904,705
15,307,947
Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS
-
29,441,368
Liabilities & Shareholders' Equity Current liabilities Short term debt Total Current Liabilities
-
-
-
-
-
-
-
-
-
-
-
Other liabilities Long term debt Total Long Term Liabilities
-
-
-
-
-
-
-
-
-
-
-
16,850 16,850 16,850
16,850 26,315 43,165 43,165
Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIA
16,850 86,439 103,289 103,289
16,850 215,337 232,187 232,187
16,850 478,589 495,439 495,439
28
16,850 1,005,358 1, 02 2,208 1,022,208
16,850 2,035,822 2,052,672 2,052,672
16,850 4,033,406 4,050, 256 4,050,256
16,850 7,887,855 7,9 04,705 7,904,705
16,850 15,291,097 15, 30 7,947 15,307,947
16,850 29,424,518 29,441, 368 29,441,368
Pre-feasibility Study
Britannia Resource Centre
11.5 Assumptions Expense Assumptions Marketing Expenses BRC Local(per month) Marketing Expenses Joint(per month) Decrease in M arketing Expenses No. of Staff Monthly Salary (Each) Annual Growth Rate of salary Office Rent (per Month) Annual Growth Rate in Rent Mailing and charges (per month) Annual Growth Rate of mailing charges Utilities (electricity, telephone, fax) BWG A dministration Fee (%) Statinary Mainta inence Expense (per month) Depreciation Expense Amortization Expense Interest Rate Loan paymet period (year) Installments (in a year) Revenue Assumptions Category Total Capacity (Applications per year) Annual Growth Rate in Applicants Annual Growth Rate in Selling Price Year 1 Capacity Students Members Professionals Members Business Member HSMP Services Work Permits Services Immigration Services Investors Services General and Medical Visitors University Commissions Services for UK Companies Non members Services
208 208 5% 2 100 10% 250 10% 50 10% 170 50% 83 100 10% 20% 14% 5 1
Fee 1,400 5% 5% 57% 125 130 150 250 250 250 200 125 400 500 50
29
Product Mix 18% 13% 13% 9% 4% 7% 4% 13% 4% 1% 13%
