Business Plan: Spanish Language Promotion Company

Abstract

After almost two years of residing in the Republic of China, the author of this business plan together with her business partner came to realize that there is market potential for offering Spanish Language teaching services abroad. Every year, there are more than one thousand Taiwanese students enrolled in one of three modalities of college or university Spanish Language courses: as a major or minor; as an elective course; and, as a non credit course.\r\n\r\nA small percentage of the students who study Spanish Language travel abroad to increase their abilities in the language. Most of them choose Spain simply because it is the only choice they have been offered. On the other hand, most of the students who don’t travel abroad to practice the Spanish language don’t do it because traveling to Spain to study the language is too expensive for their budgets.\r\n\r\nThis business plan describes a business model to promote a Language Center in La Antigua, Guatemala, which represents a less expensive alternative for those Taiwanese students who want to practice the Spanish Language but are not willing to pay the higher price charged for similar services in Spain.\r\nThe business logistics include setting a Promotion Company in Honduras, which will work through a Promotion Office in the Republic of China to promote the services of Language Center located in Guatemala. A separate business plan will be elaborated for the operations of the Language Center in Guatemala.\r\n\r\nTo determine whether the proposed business model is feasible or not, a market research was conducted. Through the results of this research it was established the potential demand and marketing mix. An operational study was also conducted to determine the optimal structure of the business and a financial study and analysis was conducted to determine the profitability level of the investment.\r\n\r\nThe market research revealed that Taiwanese students would be willing to spend around NT$100,000 for a 10 week intensive course in La Antigua, Guatemala. The demand for these services has been forecasted to go from 58 to 193 in a period of 5 years, generating revenues ranging from NT$5.8 to 23.4 million in the same period.\r\n\r\nAccording to the calculations, the business would repay the investment in a 13-month period and would bring an average of 84% of return on equity during the first five years of operations, making it an exceptional investment opportunity.

Acknowledgment 1\r\n\r\nCHAPTER 1: INTRODUCTION 2\r\nBackground of the Business 4\r\nMission and Objectives of the Business 6\r\n\r\nCHAPTER II: MARKET ANALYSIS 8\r\nCurrent Market Situation 8\r\nMarket Research 14\r\n\r\nCHAPTER III: COMPETITIVE ANALYSIS 38\r\nCompetitors in Taiwan. 38\r\nCompetitors Outside Taiwan 39\r\n\r\nCHAPTER IV: ANALYSIS OF SUPPORTING PRODUCTS 48\r\nComplementary Products and Services 48\r\nSuppliers’ Analysis 57\r\n\r\nCHAPTER V: CORE COMPETENCE & MARKETING STRATEGIES 67\r\nCore Competence 67\r\nBarriers to entry 69\r\nMarketing Strategies 70\r\n\r\nCHAPTER VI: OPERATION PLAN 79\r\nDescription of Operations 80\r\nHuman Resource and Organization 83\r\nSupporting Parties 87\r\nProcess 90\r\nLegal Requirements 91\r\n\r\nCHAPTER VII: FINANCIAL PLAN 96\r\nDefinitions of Terms 96\r\nFinancial Projections 101\r\nFinancial Analysis 110\r\n\r\nMaterial Consulted 114\r\n\r\nAppendix 116\r\n\r\nEndnotes 122