Feasibility Study for establishing a Tests Preparation Centre [IBA, LUMS, NUST]

Feasibility Study for establishing a Tests Preparation Centre [IBA, LUMS, NUST]

Feasibility Study for establishing a Tests Preparation Centre [IBA, LUMS, NUST]

Identify the Business

In this world of uncertainty our future generation has no idea what to do with their life and how to do it. In order to survive in an environment where opportunities are  minimal you have to be the best. To be the best you have to have the best education to get into the best school and thus was the spirit behind the establishment of our pre-admission test centre known as ASK.




Before giving the general justifications we would first like to introduce our selves and how we think. As all of us were involved in the counseling departments of  different educational institutes so we felt a great opportunity to pursue the idea of establishing a test preparation centre. One common characteristic that we found was that we all like working with humans as compared to machines. As all of us are marketing majors the thought of starting a business in which human factor involvement was high.


We also wanted to contribute something to the society, as some poor students who has the talent but couldn’t afford to go to the existing pre-admission test centres and putting them at a disadvantage because others were rich and can pay large amounts for good teachers for longer periods.


Our other consideration was to raise the overall aptitude level of our students even though all of our students will not be able to get into the institutions of their choice but they will get the exposure, will realize their potential which will help them to build their career.


As all the provincial government has mad it compulsory to pass the entrance test for admission in most of the colleges and universities so there will be a definite supply and demand gap between the number of students who want preparation for various entry tests.


As people are day by day becoming more concerned toward there career and they try to get into professional colleges, so as a whole number of students applying for these colleges.


Due to cheating culture and corruption at the education boards it is really next to impossible for a large number of students to get into these colleges without any special preparation for the tests.


As this business require lesser regulations and give us good profit with relatively minimal effort and it also require lesser investment and growth opportunities in the future.



Admission in the centre will be on the bases of O and A / Matric and Inter results




Space Required


Our business will require a space of 4000 sq. ft. As we want to have five rooms of 400 sq. ft. each and a 400 sq. ft. lounge-cum office from where we can administrate the whole centre. A library of 800 sq. ft. having two portions one for the students who like to study in isolation while other will be allocated for the group studies. 200 sq. ft. area will be allocated for Audio/Video library while rest of the area will be allocated for the canteen.




After an intensive research done by General Manager of Aftab Associates Mr. Muhammed Naeem  we concluded that any bungalow in blocks 1, 2, 3 and 4 will be most attractive as our target market which includes people coming from interior sindh and living in SMC, DMC, MPA hostels, Gulshan-e-Iqbal and Defence Garden. While the students of Karachi mainly living in clifton and defence and PECHS area can drive through their cars and there will be a pick and drop service for the students from the North of the city.


Legal Form


It will be Partnership having equal shares between all the three partners namely Salman, Kirshan and Ali. They will be liable for any profit and losses.



Cost Structure

The total project has been estimated 20 million we analysed the following capital investments


Items Quantity Unit Price Total Price
Chairs 400 1000 400000
Desk 250 500 125000
White boards 6 2000 12000
Tables (canteen) 10 1200 12000
Carpets 4000 sq ft 20 per sq ft 80000
Curtains 17 1000 each 17000
Aircondition Plant 1 200000 200000
Fan and Exhaust 32 & 6 1000 & 500 35000
Photo copy Machine 2 50000 100000
Pick and Dorp Van 1 500000 500000
Sofa Sets 2 20000 40000
Library Furniture     100000
Books     15000
Audio/ Video Equipments     100000
Computers 4 40000 160000
Miscellaneous     100000


Operational Costs


Description Quantity Price Total
English Teacher 2 10000 20000 p. month
Math Teacher 3 10000 30000 p. month
Physics 2 10000 20000 p. month
Chemistry 2 10000 20000 p. month
Biology 2 10000 20000 p. month
Logic 1 10000 10000 p. month
General Knowledge 2 10000 20000 p. month
Librarian 1 5000 5000
Photo Copier 2 3000 6000
Secretary 2 5000 10000
Peons 2 2000 4000
Security 2 2500 5000
Driver 1 3000 3000
Electricity     10000
Phone     2000
Stationery     40000
Rent     30000
Miscellaneous     10000




Legal, Political and social Functions:


As our clients consist of young people so there is a high probability to have some sort of fights so we need to have some sort of political and legal protections to deal with the law enforcing agencies. In our system political parties are used to get monthlies and Kirshan with Mohammad Ali Shamim will be looking after this thing as both belong to political and business families.


Administration & Finance:


This function will consist of setting up a curriculum, schedules, organizing teachers, handling students, maintaining discipline, tuition fees and payrolls. All of this stuff will be managed by Syed Salman Hasan.


Maintenance & Marketing


As our client basically consists of young aspirants who are full with vigor and poweer so there will be wear and tear of the material so maintenance will be handled very suitable manner. Apart from maintenance, marketing will also be handled by mohammed ali shamim because he is really very good at building relationships and being a chinioti he has got some good contacts in the press and  media.





Product line:

Our centre will offer classes for different programs


  • Aga Khan University
  • IBA
  • LUMS
  • Ghulam Ishaq Khan Institute
  • SAT
  • GMAT
  • GRE
  • MBBS
  • Engineering


Target Marketing:


Main Customers


Basically we are sub-dividing our main customers into three categories


  • Students coming from interior sindh
  • Students coming from Middle East
  • Students coming from Karachi


More emphasis will be given to students coming from sindh as these are the people who come to karachi for the very first time and need more counseling and special attention. They are not that aware of the competition and fees for the other institutes is also very high. As Kirshan also belong to interior sindh and he was the first person from the sukkur district to come to IBA. He has also been an assistant professor at IBA sukkur so people know him in a good context. Being a sindhi also adds to its value which is a major deciding factor found in people of interior sindh because they feel comfortable with someone who is from the same culture.


Students coming from the Gulf also has the same problem of not knowing where to go for preparation, again we will be in an advantageous position because Mohammad Ali Shamim himself coming from Saudi Arabia will be able to help and guide those students.



Market Potential


With an explosion of institutes requiring Aptitude tests and already existing institutions starting this fashion of taking aptitude test. We feel there is ample debt in our target market. Our market  is large and confused they desperately need guidance and we will give it to them.


We also feel that this potential will keep on growing as this is an untapped market. If we perform and get people in where they desire we feel a lot of people will think about us. If we  can  get them in where they want to and when they want to , we think the demand will be more than the supply for all the years to come.



Marketing share


Our major competitors are Anis Hussain, IBA Preparatory Classes, Students Inn , Professionals Inn and Institute of Aptitude Test , but our major concentration will be on the MBBS & Engineering because our major competitors are not serving to these segments. We are expecting a very high turnover of people in this segment. As the total number of all the students applying for the different tests is about 45000 and we are expecting about 1800 people to come to our center for the first year and for the future years it depends on the selection rate of students in the first year.


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