* The calculations use average data for Russia

1. PROJECT SUMMARY

This business plan has been drawn up to justify the effectiveness of opening Chinese language courses in the city of Rostov-on-Don. The goal of the project is to meet the growing demand of residents of the city and region for high-quality educational services for learning the Chinese language and to make a profit. All classes will be held under the guidance of the project initiator - a teacher who has an education as an oriental translator, more than 5 years of experience in his specialty at a higher educational institution, and an HSK level 5 certificate.

Organizing courses will require the following steps:

The decline in volumes that followed after 2014 can be regarded as temporary and not reflecting the general trend. It is explained by a number of objective factors, such as the deterioration of global foreign trade conditions, the slowdown in economic growth in both countries, the fall in prices for raw materials and energy resources (accounting for more than 70% of exports to China), exchange rate fluctuations of the ruble against world currencies and the yuan in particular. Despite some economic downturn, experts hope for further growth in trade. According to the Russian Foreign Ministry, the two countries have achieved an ambitious goal - to increase trade turnover to $200 billion per year by 2020. China is one of the key partners for the Rostov region. According to the regional government, China's share in the region's foreign trade turnover in recent years has been at the level of 6.2-9.2%.

Figure 2. Number of tourists from China to Russia in 2000-2015*




*according to Rostourism and Rosstat

The strengthening of ties between Russia and China can be seen in other areas, for example, in tourism. According to statistics, the interest of Chinese tourists in our country is gradually growing (see Fig. 2). Currently, more than 1 million Chinese citizens visit our country every year. In terms of the number of tourists visiting Russia at the end of 2015, Chinese tourists are second only to Ukraine, Kazakhstan, Poland and Finland. In turn, China is an attractive tourist destination for Russians. According to Rostourism, in 2015, 1,284,000 citizens of the Russian Federation visited the Celestial Empire. Statements by the Chinese authorities about their commitment to abolishing the visa-free regime with Russia inspire optimism regarding the prospects for this direction.

Considering the mutual interest of the two countries in each other, the number of people wishing to learn Chinese is also increasing. According to Deputy Prime Minister Olga Golodets, today more than 37 thousand people are studying Chinese in Russia (the figure was announced in December 2015), and over the past 5 years the total number of people studying Chinese has grown by almost 8 thousand people. Among schoolchildren and students, Chinese came in 5th place in popularity after English, German, French and Spanish. It is studied in schools, universities, Confucius institutes and classes, and in all kinds of courses. The Ministry of Education plans to increase the number of youth exchanges to 100 thousand people annually by 2020. In addition, in 12 regions of Russia, state exams in the Chinese language in the form of the Unified State Exam and State Examination are being actively tested. For school graduates, final certification in Chinese will be introduced no earlier than 2018.

The goal of this project is to open private courses in Rostov-on-Don to meet the growing demand of residents of the city and region to study the Chinese language and make a profit. All classes will be conducted under the guidance of the project initiator - a teacher who has an education as an oriental translator, more than 5 years of experience in his specialty in a domestic municipal educational institution, and an HSK level 5 certificate. Organizing courses will require the project initiator to implement the following steps:

• registration of activities as an individual entrepreneur and registration with the tax authority;

  developing a curriculum with lesson plans;

  searching for an office for rent for conducting classes;

Chinese language courses will be systematic group and individual lessons with people of different ages. The program will be based on a proven teaching methodology developed during teaching at one of the higher educational institutions. It will be step-by-step lessons aimed at comprehensive language learning, including speaking practice, grammar, hieroglyphics, reading, translation, listening, etc. Classes are planned to be conducted both for those who want to learn a language from scratch, and for those who have already reached a certain level of knowledge and are planning in-depth language learning (for more information about the services, see paragraph 3 “Description of services”).

The location for the classes is planned to be rented office space in the city center, allowing for group lessons. For individual lessons, home lessons will also be possible.

Investments in opening courses will amount to 41,000 rubles. Starting cost items are shown in Table. 2 of this business plan. To implement the project, our own funds will be used, which are planned to be returned after the first enrollment of students in the first month of work.

Table 2. Investment costs of the project

	NAME	AMOUNT, rub.
Equipment
	Purchase of office equipment and consumables
Intangible assets
	Registration and registration
	Training program development costs
Working capital
	Working capital
Total:

3. DESCRIPTION OF SERVICES

The main specialization will be educational services, namely conducting Chinese language lessons for children and adults (see Table 3). Both individual and group classes will be available to clients. The lesson program will be focused on comprehensive language learning, including speaking practice, grammar, hieroglyphics, reading, simultaneous and written translation, listening, etc. Particular attention in preparation will be paid to the requirements of HSK (Hanyu Shuiping Kaoshi) - a standardized qualifying exam in the Chinese language for non-native speakers. Lessons in narrow areas (business Chinese, business correspondence, socio-political translation, etc.) and corporate classes will also be conducted.

The price segment of the project is below average. The established prices can be called more attractive compared to the offers of language schools in the city (due to the lack of markups from the schools themselves) and other tutors (the difference in the quality of training). The analysis of current market players and competitive advantages are discussed in detail in paragraph 4 “Sales and Marketing”.

Table 3. List of services

	SERVICE	Description	Cost, rub.
	Individual lessons (children 8-14 years old)
	Individual lessons (adults)	8 lessons per month (2 lessons per week, 60 minutes each)
	Group lessons (children)	8 lessons per month (2 lessons per week, 60 minutes each)
	Group lessons (adults)	8 lessons per month (2 lessons per week, 60 minutes each)
	Corporate classes	Conducting classes for legal entities	negotiable
	Lessons according to an individual program	Individual lessons in narrow areas (business correspondence, business communication etiquette, etc.)	negotiable


4.SALES AND MARKETING

Today we can state that the number of residents of Rostov and the Rostov region who want to learn Chinese is increasing from year to year. This conclusion can be drawn from the number of people wishing to study this language as the main language in higher education and the increased number of paid courses. According to Yandex.Wordstat, the number of search queries related to the search for Chinese language courses is more than 2 thousand in the Rostov region and more than 6 thousand in the Southern Federal District, with at least 400 requests per month coming from the target audience, indicating the city of Rostov-on -Don as the desired place of study (see Appendix 1).

Today in Rostov-on-Don there are more than a dozen companies offering Rostovites to take Chinese language courses, as well as several dozen Chinese language tutors. Despite such a number of offers, the quality of teaching, to put it mildly, leaves much to be desired, and the market can be described as 80% shadow. Only a small number of institutions have at their disposal qualified Chinese language teachers who are able to conduct classes at the proper level. Moreover, in an effort to win over clients, many schools try to pass off so-called “native speakers” as professionals in their field, even if the latter have no teaching experience at all. In most cases, clients are offered Chinese students from one of the region’s universities who come to the city on exchange and barely speak Russian as speakers. It is easy to guess that the quality of education in such cases is out of the question. These student teachers, as a rule, are not in any way interested in the success of their students and are more concerned about the possibility of earning money in a foreign country with minimal effort. This approach is especially sensitive for those clients who want to learn Chinese for a specific purpose, for example, getting a job abroad or employment in a domestic company trading with China.

A big difficulty for language schools is also the systematic nature of teaching. The lack of personnel among domestic specialists (there is only one university in the city that graduates translators and orientalists) forces them to grab onto the few native-speaking teachers who are available. A significant disadvantage of this category of teachers is that their lives are often built on constant work moves from Russia to China, and they regard teaching courses as temporary income. As a result, students’ knowledge is characterized by fragmentation and the need to constantly return to previously covered material. Some institutions are trying to solve this problem by conducting virtual lessons using Skype, but this approach in relation to the Chinese language is ineffective for some reasons (for example, the inability to adequately conduct written classes).

Ready ideas for your business

If we talk about prices for studying Chinese in Rostov, then on average the price for group classes in language schools in 2016 is 600 rubles, individual - 850 rubles. Lessons with a tutor will cost about 550-600 rubles. In Table. 4 presents prices for services offered by language schools in the city.

Table 4. Cost of teaching Chinese in language schools in Rostov-on-Don


Language school	price, rub. (for 1 lesson)
Language school 1	Group lessons - 3500 (8 lessons of 60 min.)
Language school 2	Group lessons - 3800 (8 lessons of 60 min.) Individual lessons - 5400 (8 lessons of 60 min.)
Language school 3	Group lessons - 8400 (8 lessons of 60 min.)
Language school 4	Group lessons - up to 4000 (8 lessons of 60 min.) Individual sessions -
Language school 5	Group lessons - 4000 (8 lessons of 45 min.)
Language school 6	Group lessons - 6000 (8 lessons of 60 min.)
Language school 7	Group lessons - 3000 (8 lessons of 80 minutes - subscription from 1 year)
Language school 8	Group lessons - from 4000 (8 lessons of 60 minutes)
Language school 9	Group lessons - from 6400 (8 lessons of 60 minutes)

The competitive advantages that we plan to use in our work include:

availability of the necessary education (translator-regional specialist) and HSK level 5 certificates.

have more than 5 years of experience teaching Chinese at a university;

well-developed communication skills, the ability to find an approach to people;

availability of teaching methods proven in practice;

ability to work in large groups of more than 20 people (competitors do not take on groups of more than 5 people);

availability of tests to determine knowledge levels;

systematic work without interruption for business trips and other work, the ability to recruit students for a long time, interest in achieving results;

the presence of specific work results (students who went to study/work in China, examples of successfully passing the HSK exam at various levels, etc.)

affordable prices for training.

To find clients, we will use both our own connections, formed during teaching at the university, and additional funds. So, for starters, we plan to create and promote groups on popular social networks (Vkontakte, Faceebook, Instagram), and in the future, as the number of clients grows, we will create our own website, since the Internet is the main channel for obtaining information about Chinese courses. Ads will also be placed on free electronic platforms, business cards will be distributed, etc.

5. PRODUCTION PLAN

For the first six months of work, it is planned to recruit at least 1 group of adults and 1 group of children of 5 people each, as well as 3 people for individual lessons. Revenue with such a load, taking into account the established prices, will be more than 53 thousand rubles, net profit, taking into account rental costs, consumables, transportation costs and tax deductions (6% of revenue), will be at least 41 thousand rubles.

If individual classes will be conducted primarily at home, then for group classes an hourly rental of a furnished office of 20 square meters will be required. meters. A suitable option in the city center has already been selected. The rental cost per hour will be 400 rubles. In the future, when expanding the number of clients, monthly office rent will be used.

To conduct classes, you will need to purchase some equipment, including an MFP (printer, scanner, copier) worth 6,000 rubles, an audio recorder for listening classes (2,500 rubles), some consumables (markers, paper, etc.).

6. ORGANIZATIONAL PLAN

Educational activities will be completely legalized, for which an individual entrepreneur certificate will be obtained according to OKVED 85.42.9 “Other activities for additional professional education, not included in other groups.” From a formal point of view, this type of business will represent individual labor teaching activity or tutoring, which, in accordance with the Law of the Russian Federation “On Education,” is not subject to licensing.

The opening of courses will require a preparation stage for a period of 2 months, including: registration of activities as an individual entrepreneur and registration with the tax authority, development of a training program with lesson plans (it is necessary to systematize and bring into proper form the accumulated teaching experience), create groups on social networks and conduct their promotion to organize the first enrollment, place advertisements about the start of courses. The start of activities is planned for early September 2016. This choice is explained by the fact that the peak of search queries for Chinese language courses occurs in July-October: here, as in other areas of educational activity, there is a strong connection to the beginning of the school year.

7. FINANCIAL PLAN

The starting investment for opening Chinese language courses will be 41,000 rubles. Starting cost items are shown in Table. 2 business plans. Current expenses will include rent, transportation costs, and purchase of consumables. Appendix 2 presents financial calculations made for a three-year perspective under load:

1-6 months of work - 2 groups (adults and children of 5 people each), 3 students

7-12 months of work - 2 groups (adults and children of 5 people each), 5 students

13-18 months of work - 3 groups (adults, 10 people, and children, 5 people), 5 students

19-36 months of work - 3 groups (adults, 10 people, and children, 5 people), 7 students

If there are 3 groups, it is financially feasible to rent a monthly office (rent - 8,000 rubles).


8. EVALUATION OF EFFECTIVENESS

The project can be called effective, which is confirmed by the calculations made and the performance indicators given in Table. 1. Investments in opening courses and production costs are minimal, and therefore the project initiator has the right to count on a return on investment already after the first month. So the profitability ratio exceeds 157%. The net present value (NPV) is positive, the profitability index (PI) is greater than 1, and the internal rate of return (IRR) is significantly higher than the established discount rate.

9. RISKS AND GUARANTEES

The risks of organizing courses are minimal: there are no investments in real estate, there is no need to purchase expensive equipment or hire staff, and operating costs are low. The main resource and service being sold is the knowledge of the project initiator, who only needs the ability to sell it. Possible risks are presented in Table. 5.

Table 5. Possible risks and ways to prevent them or their consequences

Risk factor	Probability of occurrence	Severity of consequences	Events
Insufficient student enrollment			Attracting clients using integrated methods, creating groups on social networks, a business card website; printed and electronic advertisements, use of your own connections
Growing number of competitors			Positioning yourself as a teacher with extensive experience and the necessary qualifications; work for results, creating a positive image from the first days of work; better price, use of all competitive advantages
Decrease in revenue during off-season			Reducing prices in the off-season, providing discounts on summer training, seasonal work in related fields (translation), searching for corporate clients
Rent increase			Choosing the most optimal option in terms of price, changing premises
Claims from inspection authorities, tax authorities			Activity in a legal field, registration as an individual entrepreneur, timely payment of taxes


10. Applications

ANNEX 1

Number of search queries related to learning Chinese according to Yandex.Wordstat

	Request		Rostov region	Rostov-on-Don
	Chinese courses (Chinese course)
	Chinese language courses (Chinese language course)
	Learn Chinese
	Chinese lesson
	Chinese language beginner
	Chinese learning
	learn Chinese
	Chinese language learning
	Chinese school
	Chinese training (Chinese training)
	Chinese language lesson (Chinese language lessons)
	Chinese language learning
	learn Chinese
	Chinese tutor (Chinese tutor)
	learn Chinese (learn Chinese)
	Chinese language tutor (Chinese language tutor)
	Chinese language school
	Chinese teacher
	Universities with Chinese language
	Chinese teacher
	Learning Chinese from scratch
	Chinese language school
	Chinese course
	Chinese tutor for children
	Which universities teach Chinese?
	teaching Chinese at school
	I want to learn Chinese
	Where to learn Chinese
	Chinese language school for children
	Where can you learn Chinese?
TOTAL:
LOCATION-BASED REQUESTS
	Request	Number of requests per month
	Chinese language in Rostov
	Chinese language in Rostov-on-Don
	Chinese courses Rostov
	Chinese learning rosts
	Chinese courses Rostov-on-Don
	Learning Chinese Rostov
	Teaching Chinese in Rostov
	Chinese language courses Rostov
	Chinese language courses in Rostov-on-Don
	Study Chinese Rostov

Corporate English language training according to the general course can be taken by employees with both initial and advanced levels of knowledge. The duration of training will depend on the level of preparation. During the training process, the language competence of staff will significantly increase and the language barrier will be overcome. Classes will be held in your office using a unique Communicative Approach. This means that from the very first lesson, absolutely all communication will take place exclusively in English! After completing the course, tests are carried out, and based on their results, a certificate will be issued from the BKC-International House corporate English training school.

This conversation course is a short program and is suitable for people with knowledge from Pre-Intermediate level and above to Advanced-2. Classes held in your office will help company employees overcome difficulties that arise when communicating in English and improve their communication skills.

All employees of your company can take a preparatory corporate training course and take exams to determine their level of knowledge of business or general English. There will be 5 exams in total - the Cambridge CELA (Cambridge English Language Assessment) group. They consist of five tests that will determine the level of knowledge of your employees. VKS teachers, right in your office, will help you prepare for the international language proficiency exam - IELTS.

This course is ideal for those employees whose work schedule is overloaded, as well as for people who are able to comprehend learning well by ear. English via Skype is designed for a level of knowledge above Pre-Intermediate. The duration of the training, as well as the schedule, can be drawn up individually, taking into account your wishes. During online training with a VKS teacher, your employees will significantly improve their communication skills.

Now your employees can learn corporate English - and this is a unique program that will be created specifically for your company and will be fully adapted to the profile of your activity. Our training directors develop Tailor-made courses in full accordance with your requirements regarding content, duration of training, basic and additional materials.

If your employees have a Pre-Intermediate level of knowledge, a business course will suit them. The duration of the lessons will depend on the basic language training and the level they plan to achieve. All classes will be held directly at your company's office. A business English course will provide an opportunity to master business etiquette, business vocabulary and terminology, the rules by which business negotiations and other communications should be conducted.

If you want to determine how good your employee's English skills are and whether they meet the requirements of the position he occupies, you need to conduct independent testing for him. Based on the results of this testing, you will receive a full report with detailed descriptions of the level of each of your employees.

Corporate English language training in Moscow

In the world of modern business, it is not enough to just be a good specialist. An employee who not only has a high level of qualifications, but also speaks fluent English, will always occupy a highly paid position. Now almost all domestic companies cooperate with foreign partners and themselves become representative offices of foreign companies. From all of the above, the conclusion suggests itself: in order for the company to prosper and employees to be competent, corporate English language training for staff is necessary.

The best solution would be to contact VKS! Our teachers will come directly to your office, which will not only save time, but also help improve employee motivation.

If there is an opportunity or need to be present in the Chinese market, then you should definitely take advantage of this chance. To make this cooperation effective and profitable, learn to communicate in the native language of your business partners.

Usually, Chinese is learned from scratch, since it is not very widespread and is quite difficult to master. However, there are cases when some company employees already have a certain level of knowledge, but it is not enough for work and communication. Then we will help improve their skills and move them to a qualitatively new level of knowledge. If it is necessary to train personnel with different knowledge of Chinese, then we will do everything possible to provide high-quality training by testing and dividing workers in accordance with their language training.

Thus, training at Alliance is a guaranteed quality and result that our clients expect. We provide courses from beginner to advanced levels that will enable professionals to speak, read and write Chinese with great confidence. Thanks to the classes, our graduates will be able to work successfully and communicate fully with foreign partners, without problems or inaccuracies.

Note:

China today is a country that has emerged as a global trading power. To establish sustainable trade relations between China and Russia, constant contact between partners is required, so learning the Chinese language is becoming a sought-after requirement in corporate work. China's export volume amounted to approximately 7% in 2015. The main external factor in the growth of the Chinese economy was a sharp increase in exports of products abroad as a result of China's accession to the WTO. Chinese language courses will also be useful for individuals engaged in individual activities.

Our clients:

	Media agency STARCOM			Media agency MEDIAVEST
	Creative agency NATIVE SPEECH			Company RBK MONEY
	Film company VSB Pictures			Creative agency LEO BURNETT
	Autoconcern TOYOTA Motor			Pharmaceutical company R-Pharm
	General Service Center RE:SOURCES			Film company PACIFIC Film
	Creative agency PUBLICIS UNITED			Advertising and communications holding PUBLICIS GROUPE MEDIA EURASIA
	Chain of German hypermarkets REAL,- METRO Group			Company BACARDI-MARTINI
	Media agency ZENITHOPTIMEDIA			Media agency STARLINK
	System integrator POLYMEDIA			Communications agency FRESH MIND
	Italian investment company GENERAL INVEST			German company LIQUI MOLY
	Logistic company MAERSK			State scientific Medical Center
	Medical company HEM			Hotel VOLGA

Corporate Chinese language training

is structured in such a way as to develop all language skills to the greatest extent - understanding and correct perception of oral and written speech, accurate writing, which already allows for negotiations and correspondence.

Today, China occupies a prominent place on the political and economic map of the world. Learning Chinese is necessary for those whose work is connected with this amazing country with a rapidly developing economy.

The Chinese language is becoming a profitable and promising means of communication for managing relationships with Chinese partners and colleagues.

Undoubtedly, the Chinese language will be an excellent opportunity for you to expand business relationships and acquire new contacts. Call, find out, sign up!

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