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Educational website business plan for starting your own business
Do you want to start an educational website? An educational website provides educational services such as recorded and live lectures on certain subjects. It can also include answering students’ queries and holding academic discussions.
The business is in-demand and can be extremely profitable if you plan it properly. To ensure that you plan everything in detail you must study some of the best business plans, specifically sample business plan educational services.
To facilitate you, we are providing educational website business plan of E-Acad, an educational website startup. It will explain in detail all the steps that you’ll have to take to step into this business.
Executive Summary
2.1 The Business
E-Acad is an educational website established by Lara Frederick. The business will provide a myriad of educational services ranging from the provision of video lectures to helping students solve difficult assignments. The business will operate online however, an office will be set up in New Orleans to organize projects and tasks done by different groups.
2.2 Management of educational website
You might be thinking that the management of an educational website is easy since most of the work will be based online. But it is only a myth. Like any other business, you can think of, starting an educational website also requires making a detailed business plan for an educational website. If you don’t know how to write a business plan for a website or business plan for a franchise, you can take help from this business plan.
E-Acad will hire managers, create a hierarchical organization, and purchase business management software to manage the business smoothly. A complete list of persons who will be hired will be given in the next sections of this online course business plan.
2.3 Customers of the educational website
The customer groups as identified by E-Acad are as follows:
- Undergraduate Students
- Postgraduate Students
- Employees of Companies
- Faculty Members
Your customer groups may change depending on the services you provide. In that case, you may need to study education consulting business plan or tutoring business plan.
2.4 Business Target
It is important to set business targets according to your resources and expectations. This will help you drive all processes of your business in a progressive direction. In this online education e learning sample business plan we are listing the business targets of E-Acad.
- Earning $25 per month in profits by the end of the first five years
- Expanding our services to also include complex degree programs
Company Summary
3.1 Company Owner
Lara Frederick is the owner and CEO of E-Acad. She is a social science graduate. During her academic years, she performed some voice-over jobs for academic videos and established links with many people in the field.
3.2 Why the educational website is being started
Lara decided to start an educational website due to her interest and experience in the field. During COVID times, online education programs earned a good deal and thus the opportunity emerged as a new business stream. Thus, seeing the newer demand and prospects of profit generation, Lara decided to start this business.
3.3 How the educational website will be started
Step1: Create Educational Services Business Plan
The first step is to develop a business plan template for a website and then fill in the details to make it a comprehensive business plan edu. If you plan to run your business via proper software then you must also study educational software business plan.
Step2: Start Marketing
The next step is to make people realize that your business exists. For this, you will have to develop an influencing marketing plan to reach wider audiences. Then, to carry out a marketing plan you would require graphic designers to design posters for you.
Step3: Gather the Resource
The next step is to start acquiring human and digital resources by using your financial resource. Because to implement each part of your business plan, you will be requiring money and people with expertise.
Step4: Have a Great Online Presence
Since sales of your business will be based on online presence, you will need to hire web developers as well as SEO writers to get your startup up in the search engine.
Step5: Manage and Execute
The last step is to execute what you have planned in your business plan.
| Start-up Expenses | |
| Legal | $121,300 |
| Consultants | $0 |
| Insurance | $25,100 |
| Rent | $32,100 |
| Research and Development | $10,000 |
| Expensed Equipment | $52,200 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $244,100 |
| Start-up Assets | $221,400 |
| Cash Required | $121,000 |
| Start-up Inventory | $35,100 |
| Other Current Assets | $251,000 |
| Long-term Assets | $212,100 |
| TOTAL ASSETS | $840,600 |
| Total Requirements | $1,084,700 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $244,100 |
| Start-up Assets to Fund | $840,600 |
| TOTAL FUNDING REQUIRED | $1,084,700 |
| Assets | |
| Non-cash Assets from Start-up | $1,097,100 |
| Cash Requirements from Start-up | $111,300 |
| Additional Cash Raised | $52,000 |
| Cash Balance on Starting Date | $32,100 |
| TOTAL ASSETS | $1,292,500 |
| Liabilities and Capital | |
| Liabilities | $18,210 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $61,100 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $79,310 |
| Capital | |
| Planned Investment | $1,084,700 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,084,700 |
| Loss at Start-up (Start-up Expenses) | $128,490 |
| TOTAL CAPITAL | $1,213,190 |
| TOTAL CAPITAL AND LIABILITIES | $1,292,500 |
| Total Funding | $1,084,700 |
Services of educational website
The educational website can provide a wide range of services. Therefore before making your online education business plan, it is important to decide which services you want to offer. If your services are not pure academic you may want to explore business plan for language school or business plan for a driving school.
E-Acad has mentioned the following services in its business plan educational institution.
- Individual Guidance Sessions
Our topmost service will be providing one-one tutoring sessions to individuals so that they can learn about their queries in a personalized manner.
- Recorded Video Lectures
We will be providing paid video lectures on topics of graduate and post-graduate study.
- Help Solving Assignments
We will offer help and guidance to students in solving their assignments.
- Designing Exams and Tests
We will also design test questions and numerical problems for tests, assignments, and exam purposes.
As per the business plan education, these services will be provided for various academic streams including engineering, medical sciences, humanities, and social sciences. You are recommended to study more website business plans if you are looking for other services.
Marketing Analysis of educational website
5.1 Market Trends
The market demand for business educational wesbites has grown manifold after the COVID episode. Hundreds of educational websites are operating in the U.S. Though recorded lectures have already been produced by many educational websites for business studies, there is still much room to improvise and find new arenas. According to Statista, the global e-learning market was sized at $200 billion in 2019, and in that year LMS market single-handedly made more than $18 billion.
5.2 Marketing Segmentation
If you are starting a business website that includes educational services, you must first identify the groups of target customers you want to serve. In this educational website business plan sample we’re providing marketing segmentation done by E-Acad.
5.2.1 Undergraduate Students
This category will be our major customers. Due to the online nature of business, we expect students from the whole world to avail of our services.
5.2.2 Postgraduate Students
We will also be covering advanced subjects that’s why postgrads will make a whole segment of our customers.
5.2.3 Business Employees
Since we are also providing personalized guiding sessions, people who are already on their jobs are also expected to avail of our services whenever they get to do a task in which they lack knowledge.
5.2.4 Faculty Members
Teachers and faculty members are expected to avail of our exam and assignment-making services. Besides, they can also benefit from our video lectures and guidance sessions.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Undergraduate Students | 34% | 41,300 | 49,560 | 59,472 | 71,366 | 85,640 | 10.00% |
| Postgraduate Students | 28% | 31,200 | 37,440 | 44,928 | 53,914 | 64,696 | 10.00% |
| Business Employees | 22% | 21,130 | 25,356 | 30,427 | 36,513 | 43,815 | 10.00% |
| Faculty Members | 16% | 16,110 | 19,332 | 23,198 | 27,838 | 33,406 | 11.00% |
| Total | 100% | 109,740 | 131,688 | 158,026 | 189,631 | 227,557 | 10% |
5.3 Business Target
In this sample tech educational website startup business plan pdf, we are listing the business targets of E-Acad. Likewise, as you design educational website business plan pdf for your business, you should define SMART business goals to ensure you direct your working towards them.
- Reaching a customer satisfaction score of more than 90% in the first year of our launch
- Earning $25 per month in profits by the end of the first five years
- Expanding our services to also include complex degree programs
5.4 Product Pricing
The prices for educational services that E-Acad will be offering are a little higher than others in the market. However, in the sales strategy section in this educational website business plan sample, we’ll explain why E-Acad still expects to get more customers.
Marketing Strategy of educational website
To reach the target audience, it is essential to have a strong sales strategy plan. In this education business plan sample, we’ll be providing the sales strategy of E-Acad. However, to get even more ideas for targeted promotions and advertisements, you may also take help from business plan for a karate school and martial arts school business plan.
6.1 Competitive Analysis
- Due to saturation in the arena of recorded video lectures, we are providing other types of educational services as well.
- Provision of assignment, test, and examination questions making services in an idea unique to us.
- Our tutoring services are instant and highly personalized.
6.2 Sales Strategy
To advertise our startup, we’ll be adopting the following options as mentioned in our sample business plan educational website. You are recommended to explore more educational website business plan pdf to get more advertisement ideas.
- We’ll offer a 20% discount on all our services for the first three months of our launch.
- We’ll provide free video lectures for the first 3 months of our launch.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecastz
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Individual Guidance Sessions | 1,250 | 1,325 | 1,405 |
| Recorded Video Lectures | 1,250 | 1,325 | 1,405 |
| Help Solving Assignments | 1,200 | 1,272 | 1,348 |
| Designing Exams and Tests | 1,500 | 1,590 | 1,685 |
| TOTAL UNIT SALES | 5,200 | 5,512 | 5,843 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Individual Guidance Sessions | $300.00 | $348.00 | $403.68 |
| Recorded Video Lectures | $250.00 | $290.00 | $336.40 |
| Help Solving Assignments | $300.00 | $348.00 | $403.68 |
| Designing Exams and Tests | $250.00 | $290.00 | $336.40 |
| Sales | |||
| Individual Guidance Sessions | $375,000.00 | $461,100.00 | $566,968.56 |
| Recorded Video Lectures | $312,500.00 | $384,250.00 | $472,473.80 |
| Help Solving Assignments | $360,000.00 | $442,656.00 | $544,289.82 |
| Designing Exams and Tests | $375,000.00 | $461,100.00 | $566,968.56 |
| TOTAL SALES | $1,422,500.00 | $1,749,106.00 | $2,150,700.74 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Individual Guidance Sessions | $15.00 | $16.50 | $17.33 |
| Recorded Video Lectures | $8.00 | $8.80 | $9.24 |
| Help Solving Assignments | $15.00 | $16.50 | $17.33 |
| Designing Exams and Tests | $75.00 | $82.50 | $86.63 |
| Direct Cost of Sales | |||
| Individual Guidance Sessions | $18,750.00 | $21,862.50 | $24,332.96 |
| Recorded Video Lectures | $10,000.00 | $11,660.00 | $12,977.58 |
| Help Solving Assignments | $18,000.00 | $20,988.00 | $23,359.64 |
| Designing Exams and Tests | $112,500.00 | $131,175.00 | $145,997.78 |
| Subtotal Direct Cost of Sales | $159,250.00 | $185,685.50 | $206,667.96 |
Personnel plan of educational website
To establish educational business websites you will need a good team with expert-level knowledge on various subjects. Some business education teacher websites operate by just being a server between freelance tutors and students. E-Acad, likewise, did the same. Instead of hiring its own faculty members for each subject, it decided to serve as a platform for connection. So its personnel plan is perfectly suitable if you’re looking for a business plan for an educational institute.
7.1 Company Staff
- 1 Manager to manage the operations
- 2 Software Operators to manage management software
- 6 Content Experts/ Subject Specialists
- 1 Web Developer to maintain business’ websites
- 1 Financial Expert to keep a record of finances
- 1 Graphic Designer for the development of videos and graphics
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $31,000 | $34,100 | $37,510 |
| Software Operators | $53,000 | $58,300 | $64,130 |
| Content/ Subject Experts | $205,000 | $225,500 | $248,050 |
| Financial Expert | $162,500 | $178,750 | $196,625 |
| Web Developer | $23,500 | $25,850 | $28,435 |
| Graphic Designer | $23,500 | $25,850 | $28,435 |
| Total Salaries | $498,500 | $548,350 | $603,185 |
Financial Plan of educational website
The financial plan of an educational website business is not of the usual type. Especially for the services in which the company is just acting as a server to connect clients with freelance tutors, the financial computations become complex. To facilitate you, we’re providing educational website business plan sample free of cost.
However, if you adding mental games and quiz aspects to your business, you may want to also explore educational website business plan for educational game business websites.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $1,422,500 | $1,749,106 | $2,150,701 |
| Direct Cost of Sales | $159,250 | $185,686 | $206,668 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $159,250 | $185,686 | $206,668 |
| Gross Margin | $1,263,250 | $1,563,421 | $1,944,033 |
| Gross Margin % | 88.80% | 89.38% | 90.39% |
| Expenses | |||
| Payroll | $498,500 | $548,350 | $603,185 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $677,700 | $731,800 | $797,085 |
| Profit Before Interest and Taxes | $585,550 | $831,621 | $1,146,948 |
| EBITDA | $585,550 | $831,621 | $1,146,948 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $117,110 | $166,324 | $229,390 |
| Net Profit | $468,440 | $665,296 | $917,558 |
| Net Profit/Sales | 32.93% | 38.04% | 42.66% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- Can I make an educational website?
Yes, anyone who possesses insight into this business can make it. For the starter, you’ll have to make educational website business plan. It would be best to get your online education business plan developed by an expert. To get an idea of what it should look like, you can read this education business plan template.
- Which website is best for education?
Different rankings suggest different answers to this question. It is largely based on your personal requirements and level of understanding of things.
- What is an example of an educational website?
Instructor.com, Schoology.com, Teacherdashboard.com, and even the most commonly known Youtube.com and Google.com are some examples.
- What type of website is educational?
Any website that hosts educational content comes in this domain. Educational content may cover physical education such as karate as well as academia such as engineering.
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