The Homework Hangout Inc. – Final Capstone Business Plan Project
The Homework Hangout is an organization envisioned to focus and assist the youth of various ethnic and financial backgrounds living in urban communities to succeed in educational and future goals. This business plan provides the vision and need for a new business venture that involves the educational support for teenage students who are in danger of struggling to reach their full potential. The Homework Hangout believes that our children’s dreams and aspirations of the future can be attained through encouragement, mentorship, tutoring, and social interaction with peers in a safe environment to grow into active, responsible, and respectable citizens of the community. The Homework Hangout Inc. is a company that is created to cater to all families of the surrounding community. This program will offer a safe environment for students to hangout, be social and have fun as well as receive assistance in school assignments to ensure a successful future. The Homework Hangout will become the premier after school destination for children seeking to achieve their academic goals. Our compassion towards each child will be the driving force of how we conduct our personal actions towards customers
The research on children who dropout within the community provided by the Arizona Department of Education shows that Maricopa county has an overall dropout rate of 3.3% of which the highest number are the Native American group of children at risk (Arizona department of Education,2015). In addition the Boys and Girls Club provides research of the target age group being susceptible to involvement in criminal or illegal activities when left alone afterschool unsupervised during the hours of “3pm to 7pm” (Boys & Girls Clubs of America, 2010). Since the focus is on the youth, it will be very important to keep up with both good and bad trends as they emerge through various social media websites. This would allow for the staff to either encourage or discourage the trends through educational lectures and the importance of self-esteem, self-respect, and self-importance. The purpose of the Homework Hangout is to assist the community in keeping kids busy after school and during non-business hours to lessen the engagement in juvenile criminal activity and or vandalism. With the focus on keeping kids busy in afterschool extracurricular activities, the Homework Hangout could be very successful.
As the Homework Hangout evolves and grows, the focus will then be to reach as many urban communities both domestically and internationally as possible.
The key personnel will include a President, Robert, to oversee all operations and branches of the organization. A Director of Operations & Human Resources, Andrew, to ensure the staffs hired are able to meet the requirements of engaging in the educational teaching fields. The Director of Academics, Raeann, will work closely with local school districts as well as local higher educational facilities to help guide students and youth to a successful educational future. There will also be a Director for Marketing and Public Affairs, Maria, to handle public relations as well as using research and development strategies to gain better knowledge of the business world. Each member will have relevant experiences in management, organization, finances, and some relations with the principal members of the school boards. The structure of the business will fall under the professional care and direction of the people listed above. The Homework Hangout Inc. will require high expectation of academia for our employees and will train staff as the company sees fit. Of course, the first couple of years will start with a small staff but as revenues come in, the staffing team will grow along with the clientele as well as the leadership styles
Social media will be used as an immediately effective, advertising tool to get the youth as well as their legal guardians involved. Other means of advertisement such as word of mouth, referrals, flyers, public mailing system, school emails, will also be used but it is very important to get the local communities involved which also includes the local school districts.
Of course, in any business, there will always be strengths, weaknesses, opportunities, and threats that will be encountered. The establishment will seek to hire outside resources to help the company see where adjustments need to be made. Among other, totally quality management strategies, the SWOT analysis will be used as a learning tool to identify what works and what does not work to ensure the business remains successful in the years to come.
The marketing plan will rely heavily on support from the local school leaders, community members, parents, local governments, and most importantly, the intended clients, not only for support but for cooperation as well, for services being beneficial to the development of clients in successfully attaining goals. The analysis for success is as of yet to be solidified for evaluation but will be tied to performance improvement of clients in grades, behavior, and increased graduation rates within the county. This will be accomplished through collaborative and cooperative continuation of classroom lesson planning between the organization and the school districts. The Homework Hangout will seek to reach an all-encompassing customer base and ensure that the community members are aware of the program and its initial purpose. Recommendations for building strong ties and relationships with the community include bringing business owners and leaders together to influence and inspire the clients to dream and reach for these dreams through educational knowledge and good character examples of involvement within the community. Opportunities of experiencing the types of jobs roles within businesses and services within the community will also provide this aspect of inspiration to the clientele.
The Homework Hangout Inc. is a business venture that is new and will have to become established as the business expands. Funding will be through grants, personal investments, and loans from lending institutions for startup financing. Further revenue will be derived from membership sales and rental of space to private tutors who want to keep an office within the business space. Of course, the beginning process will be difficult and there may be deficits that will show up on the financial statements but it is most important to continue to provide the best services as possible at an affordable rate. Initial costs for the company’s total expenses will average at the cost of $2,390,670 the first year and it is predicted that second year costs for the establishment will be $2,472,935 and the third year 2,587,200.
Should the organization encounter some minor setbacks, it will be most important to partner with local facilities and businesses to continue to provide assistance to the most important clients, the youth. The Homework Hangout will provide technical or tutoring assistance through email, Go-To-Meetings, telephone conversations, or even meeting clients face to face in local libraries to ensure the clients are getting the services they need to be successful in their educational careers.
The Homework Hangout is much like the Boys and Girls Club of America but will also include a service that encourages the youth to use other hidden talents such as sports and performing arts. This report is limited by the acceptance and viability of getting this business funded and operational within time frames that can be found in the appendices. Some of these limitations include: 1) Funding and building relationships within the community and its leaders are unknown liabilities at this time as these are future needs to be established once funding and licensure of the business is completed. 2) Curriculum for clients is as of yet to be determined as the districts will need to be involved in this process. 3) Historical data is not available to provide comparison analysis of the business operations. 4) Market has many forms of competition in tutoring and afterschool programs. 5) There aren’t many business models that cater to just our target market with which to compare strategic market placement.
In the end, although the Homework Hangout will experience both negative and positive encounters, the focus is to provide a safe, enriching, and affordable environment for the youth in urban communities to be successful academically and in life. This does not only benefit the youth but it will also enrich the community as well as assist the parents who do not have the time to interact with their child’s life as they grow.
From large city areas such as Phoenix, Arizona to more rural areas and smaller towns, there is a need for a place for our young people to learn, play, and excel. As such, this organization will co-operate with contacts through schools and administrators to build collaborating relationships that will make charming and entertaining, secure places for students and young people to hang out after school, on weekends, and in during the summer. Whether from parent’s lack of time from making a living or other life matters; homework and other after school programs will be much easier through our services.
The business opportunity is a growing and rather unfilled demand; it solves a problem that most people don’t realize they have. Most households have two working parents and in many cases, they don’t have the availability to spend time with a child who gets out of school at 3 pm or during the non-school days. Our organization would host sports events, homework assistance, and practice for those in musical courses and much more. As a result, the strategy will be to speak with local administrators of the schools and build a collaborating relationship in teaching the youth of today’s society. Through this partnership, the focus will be to fill a void for the youth who have parents that work long hours to provide the basic necessities. This will also benefit the parents who have difficulties in helping their children learn the new concepts being taught in today’s school system. The Homework Hangout will employ college students who are studying in educational fields or learning in a specialty that can assist clients in understanding the information being presented to them on a daily basis. The team will experience teaching children, and the students will learn from those who will be teaching next in a school around the country. The Homework Hangout will become an integral part of all local school districts in that will be working with the organization in which business is conducted as we compliment the teacher’s lesson plans with follow-up tutoring, makeup work, or even test prep for students. This will also provide a safe outlet for creativity and interaction among kids who would otherwise seclude themselves in the virtual world of the internet and social media. Restoring that connection of face to face collaboration and friendship that will be meaningful in life.
Vision Statement: “Through a commitment to our community children and their learning needs, we will provide the best possible environment to assist them in reaching their goals in education and social wellbeing.”
Mission Statement: “To provide a safe and conducive environment where children can find help with learning goals and friendship with their peers in a safe and open environment that focuses on each child’s needs. Through cooperative partnerships with local school districts and colleges, we will become the premier after school destination for latch-key kids and all those who need extra help in achieving academic goals and successes. Our compassion towards each child will be the driving force of how we conduct our personal actions towards customers and their parents.”
Porters five forces have helped shaped multiple industries, and assists in determining the company’s strengths and weaknesses. Competition of the industry is the first major factor to play in Porters five forces (Investopedia, n.d.). The Homework Hangout has competitors such as the Boys and Girls club other after school programs. The Homework Hangout Inc. is unique and has low competition due to the low to minimal cost for kids to participate in the program. This company makes sure to commit and send a strong message of what they stand for to their audience and competitors. Local word of mouth and local advertising of the program will help expand business and keep the positive word of mouth going for the after school program. The program will seek to use people who are highly qualified and want to help enrich the lives of kids of who need extra help and attention from a positive influence. Competition will be low because the program is immensely involved in the community and there are not many competitors in this field that offer the same platform as The Homework Hangout Inc.
As an exclusively owned subsidiary, The Homework Hangout will have the opportunity to create its own competitive advantage through a close cooperation in understanding and collaboration with each school district and the learning curriculums. Assistance will be provided to all clients being referred or as walk-ins that feel they need help in understanding subject matters being taught in school. The focus will be on academic development, character development, as well as face-to-face interactions for much needed life skills. The staff members will be capable, integrated players in the education industry as they are mostly aspiring teachers in training and would gain valuable experience in the process of assisting these clients in reaching their future goals and plans.
The Homework Hangout will offer the clients the utmost safe and productive after school hour program service available. School districts, businesses, and leadership partners in each community will provide programs and opportunities to clients to experience a small piece of their rights to “Life, Liberty, and the pursuit of Happiness”. The age group will be expanded to include the older teen groups who are often left out by after school care programs, which allows for a community service that covers all age groups. This community involvement as a whole entity is what creates an advantage over our competition.
The Homework Hangout’s mode of entry will be a new exclusively owned subsidiary primarily because there is no public existing business or organization that The Homework Hangout can use for licensing or purchase to start its base company. Although there will be some strategic alliances with school administrators and the like, this is efficient enough for the method of entry and will likely only refer clients to The Homework Hangout rather than sharing any costs or resources. The choice of entry will, of course, cost more than other methods, but The Homework Hangout Inc. will have more control over the services and products it offers to students. Research suggests that “wholly owned subsidiaries and expatriate staff are preferred (Hitt, Ireland, Hoskisson, 2015, p.246).” in service industries where “close contacts with end customers” and “high levels of professional skills, specialized know-how, and customization are required.” (Hitt, et al., 2015, p.246). Essentially, the Homework Hangout’s ideal system is key people and managers that will associate with various educational administrators and school boards to gain critical resources into the workings of the school systems and how The Homework Hangout Inc. can help students with school matter subjects, sports, and other various after school issues.
The use of social media by teens would be useful in determining how teens are spending their time after school, teen hang outs, types of music they listen to, trends and types of sports they are interested in. There many ways to use the social media websites to gain a better understanding of other areas teens encounter on a daily basis like the level of parent interaction, self-reliance, emotional and intellectual understandings. Services like counseling can also be provided for teens that feel they need to understand life better. The goal is to help teens find a useful outlet and blossom into successful adults.
The Homework Hangout Inc.: Business Plan
The Homework Hangout’s target market would be appealing to the tween, teen, and early adult age group regardless of ethnicity, gender, religion or economic background. The Homework Hangout will provide services that include promoting equality, respect, responsibility and accountability to be positive role models for younger generations. As tweens begin to discover the changes from childhood to early teens, they start to question their surroundings and feel like they are alone in figuring out what to do with themselves, which usually leads to juvenile criminal activity during unsupervised periods. The Boys & Girls Club of America provided a statistical analysis of minor crimes committed during the time frame of 3 pm to 7 pm which was determined to be time left alone. “11.3 million Kids are left unsupervised.” (Boys & Girls Clubs of America, 2010.) Once teens enter the early adult stage, they are lost again, at each stage; the goal is to provide positive guidance for a successful future for each client.
The overall opportunity in size for the target market of children in seventh through twelfth grades is a continuous flow of changing levels dependent on the populations of children in the community the company would serve. These fluctuations within the enrollments of each grade will always be an up and down challenge to drive revenue. As for potential size, it is only limited to the populous of each community. The company’s market share will depend heavily on the marketing campaigns we can manage in providing assistance to those in need of extra help or social interaction and guidance after school. If the recent dropout rates overall for Arizona of 3.46% in 2015 reported by the Arizona Department of Education, (Arizona Department of Education. 2016), are any indication of the need for the Homework Hangout’s services, then the target market is very sustainable. Even if the initial market share in this arena is only 30%, it will still be a large enough portion of the target market to build a reputation within the market to grow the business through the success of the initial group of clients.
The Homework Hangout’s SWOT analysis has been enlightening for the principals to see. Significant weaknesses and threats will include the competition, funding, and the potential for poor quality employees to ruin service quality. On the other hand, The Homework Hangout’s strengths and opportunities are also a bright light in this company’s possible future. The Homework Hangout has the potential to offer more than the traditionally free or low-cost options such as the Boys and Girls Club, and to provide additional services, centering on but not limited to homework help, music assistance, sports training, and just good old fun. Below you will see our comparison in the SWOT analysis grid.
- Working / guiding teens to make healthy decisions
- Keeping kids out of trouble by providing and promoting a variety of services
- Work with local communities, school districts, and parents
- Earn trust of clients and parents
- Focus on safe environment
- Promote higher education and employment opportunities
- Promote sports, music, and other after school activities
- Keeping “bad eggs”, bad influences, bad habits out of facility
- Cost of facility/services
- Boys and Girls Club exists and is free.
- Train and/or employ local community members including clients
- Expand nationwide / globalize
- Work along-side or with other entities
- Obtain “buy-in” from local businesses and/or political officials
- Offer unique and better facilities and services
- Funding Sources
- Regulatory authorities
- Community support
- Changing trends
- Unsuccessful approaches
The Homework Hangout’s product is primarily an intangible service; the principals are offering a clean, safe, educational and productive atmosphere for young students to go to after school hours. The price, yet undetermined, will be affordable and reasonable so that regular folks can use these services on a daily basis without breaking their financial budget. It is important that the services The Homework Hangout provides are perceived worth the money. The Homework Hangout’s location will be set to grow throughout the United States and globally in the future but for now, will initially start in centrally located urban areas such as Phoenix, Denver, or Dallas. The promotions strategy will range from an extensive social media campaign spanning on websites like Facebook, Instagram, and Twitter. Promotions will be a critical aspect amongst the four P’s of marketing for The Homework Hangout because the business will promote its self through massive advertising campaigns that will increase awareness in each city a location is opened up. Additionally, The Homework Hangout will incorporate the four I’s into its strategic plans. The four I’s represent a significant portion of The Homework Hangout’s business since the product is not something that the child can hold in their hands, rather they will have memories of the services making these kids successful later in life. Other types of services to provide will include occasional snacks, treats, or gifts that will motivate clients to our engage in the services rendered. The Homework Hangout’s services identify as harder to value services because of the intangibility of a clear and distinct product. Therefore, inconsistency will be a source of difficulties for The Homework Hangout in the future because it will rely on the employee and principal‘s abilities to keep service and human error related negatives to a minimum. Charles Rivers states “Services on the other hand rise and fall on how well the service is performed” (Rivers, 2010), which shows that quality personnel will be key. Charles, Rivers statement shows that no matter how well the company is performing one “off” day could ring out potential profits into the drain. Because of our “intangible” product, we will have little to no tangible products and will require little inventory time. However, there are plans for some snack and drink services for students and family. Ultimately it will come down to how well the principals and sales agents will be able to sell this company to students, parents, and school administrators, as well as the local communities, this will be our inventory of sorts. Most importantly, The Homework Hangout will have to have key personnel in positions to deal with clients, public, and other situations because of the inseparability between this company, its services, and the image this will give to the enterprise. Parents will not send students or children to a group to spend time un-attended from their legal guardians if they do not trust the company implicitly, as such The Homework Hangout will make massive endeavors ensure safety, cleanliness, and perhaps most importantly trustworthiness.
The Homework Hangout Inc.: Organizational Plan
Initially, the company will start with three upper management professionals and the overall President. The President and founder is Robert, who was originally intending to start The Homework Hangout. Each member will have relevant experiences in management, organization, finances, and some relations with the principal members of the school boards. Andrew has extensive experience in personnel management from the US Navy and various production and service positions. Maria has excellent public affairs relations, and marketing experience to help direct the Homework Hangout and Raeann has significant oversight and background to manage the academic services.
The Homework Hangout is a corporate creation. The following assessment of current business is promising. The company leadership is diverse in individual skillsets and experience, but their shared core values and goals agree that a cooperative and participative leadership styles are best practice for the business. The heart of the Homework Hangout is the cooperation between the company and the community. It is this shared value that the company can grow and build the presence in the community in which it serves. The staff will be those of similar character and mindset with the appropriate skills to develop the clientele success and potential.
The systems utilized and developed by the company will serve as an interactive communication and empowerment tool between the partnerships school districts, clients, and the business. Through interactive discussion on progress for each subject matter, the staff will be well prepared to continue the forward movement of the lesson plan by assisting those who are finding it difficult to grasp key concepts from that day’s lesson. The tracking of progress made with each client reported back to the faculty of each partner is the key to the success of the customer and the company.
The shared values of teaching character, academic, and community involvement skills in concert with examples of role models will create the result of our mission in providing a safe and clean environment for the clients to grow and reach full potential as people and active, responsible citizens of their communities.
As the environment and competition grow in this industry, our staff must be at the forefront of how subject matter is changing and the methods utilized to teach this topic matter to stay competitive in the market. The staff must also be flexible in their capabilities to determine best practices to prepare individuals as all people learn differently.
The original team will have general skillsets based on education and child development, which will develop and categorized into more specialty skillsets as the client base, grows. The flexibility of the staff’s knowledge and experience in each specialty needed will become an invaluable asset to the company. As the enterprise grows, it will evolve to meet client, partner, and company needs as dictated by the academic, social, and economic demands of the community change. This adjustable flow of skillsets in educators, hospitability and performance staff members sets the business apart from other organizations within this market. The community opportunities for involvement and interaction with this clientele is essential in developing leaders of the future who are comfortable with community spirit, involvement, and service. The Core of the company success hinges upon the overall community development of the citizens it serves.
The Homework Hangout Inc.: Operational Plan
The supply chain will comprise of the founders and directors listed in the organizational chart. The Homework Hangout will also seek approval from the required state/ educational boards to run the program and to seek approval for everyone that will be involved. The establishment will have to see approval of the location from the educational system and make sure that the facility is properly insured. Furthermore, with the use of technology there will be a need for a supplier for room in the building for any technology needed to help the students with their assignments. The business will need to make sure there are proper and licensed vendors to provide food/snacks for the children while under the supervision of The Homework Hangout. The director of academics will need to employ the management/team that will work and help the youth that are seeking help. This team will be led by someone who is trained in all the areas of academics and can help distribute who the tutors will work with and what areas they can specialize in. The Homework Hangout will work with the community and schools to create a foundation that will boost current and future generations academically and help provide direction to for the community and its adolescence. This brings values to many areas in the supply chain and to the educational system as well as the people who value the importance of their children’s upbringing.
The main partners that The Homework Hangout will be working closely with are local community members as well as parents and legal guardians of our clients. It is known that some customers may be in state custody, and the Homework Hangout would work very closely at giving them an opportunity to participate in the services provided. Local school districts would be an important partner since the focus is on assisting the schools with extracurricular activities as well as tutoring services for homework assignments given. Local community colleges and universities would also be a partner since our target market includes high school students and one of the intents is to promote higher education.
The Homework Hangout, Inc.’s focus is on providing a service for clients, which means suppliers, would be very limited. Working with local businesses in procuring beverages and snack items for our customers as well as looking at recycling equipment and furniture from local schools or businesses. The types of supplies needed would be things like used sports equipment, desks, chairs, tables, chalkboards, shelves, office equipment as well as performing arts equipment.
Until the Homework Hangout has a more stable financial stance, the procurement of needed supplies and partnerships would remain within the city limits and “arms-length” reach. The Homework Hangout will work with local higher education facilities in obtaining information through the website or postal services.
Should the Homework Hangout’s doors be temporarily closed for unforeseen circumstances, it could be arranged to provide homework assistance through other means of communication like email, over the phone, or meeting at local libraries. It may also be a possibility to set up a chat site to provide assistance.
To maintain operational effectiveness, the approach would be to work with service providers and partners in finding suitable periods to conduct business. One example would be gathering information from local school districts on the types of subjects that most students need more help on or even getting a schedule on upcoming district-wide tests like the AZ Merit, ASVAB, or ACT testing for high school students. By working with school districts, it could give the Homework Hangout an idea of how many tutors to have on hand. Scheduling appointments for tutoring services would be beneficial to the instructors, clients, and parents. Having an on-call tutor would also help for students who need immediate assistance; of course, the idea would be to work around personal schedules. Another approach would be to keep updated information on hand to give the staff an idea of what areas need more focus on for improvements. It would be very beneficial to have some progress report that consists of feedback from both external and internal sources to ensure the services be tailored to our clients’ needs. By involving both sources, it can help the Homework Hangout to be a successful service provider.
The Homework Hangout will create a positive environment that maximizes on operational effectiveness by establishing a company that not only helps the youth but also has exultant employees as well. Furthermore, The Homework Hangout will ensure our customers will be content by taking feedback in verbal or survey form. All patrons’ thoughts represented within the community and within the program to assist in ensuring there, necessary changes are determined to accommodate everyone involved with The Homework Hangout. An active and knowledgeable management will lead employees of The Homework Hangout personnel. This active form of the directorate will make sure that the employees work at a productive rate and are educated in the areas that they are tutoring. Management will also seek to teach and train other teams to be a team leader and work as if they were in a management position. The Homework Hangout wants to make sure there is an atmosphere that can push for company expansion and growth of advancement within the business and aims for overall operational success that will diminish aggressive growth and help gain competitiveness of this market. Creating an active campaign of marketing to match this stable environment will contribute to bringing the client needed and help push to expand The Homework Hangout and aims to help our future generations. All of this combined will make it hard for current/future competitors to compete with The Homework Hangout.
Break Even Point:
If the Homework Hangout sells tutoring rates at $20 an hour and pays tutors at $10 an hour, the company would need to sell 39,600 educational hours for a breakeven point. Our previous numbers is not counting additional services on the side such as sporting and camping events, sleepovers, or specialty instruction like musical training and does not include possible concession sales.
The Homework Hangout Inc. will need to make sure that there are proper funding and reliable sources of income to support and safeguard the importance of why the company was created and what it seeks to accomplish within the community. A majority of funding will be found through the school district and the people who support the school system. Any donations of supplies from parents of the program will be accepted. A fee of $20 per hour per student will be charged for services provided by the Homework Hangout Inc. Furthermore, The Homework Hangout will seek sponsorship from community businesses and take donations to help fund any provisions needed for the program. The Homework Hangout will also seek capital from the US Small Business Alliance (USSBA) and apply any assistance granted to the program. The Homework Hangout will also pursue any potential investors who want to be part of a long-term program that will help provide a service to students of the community and give them to the tools desired to help build a firm educated future.
As an organization, it is important to allow for the financial numbers to influence some of the business plans. The collective management team must decide the best course of action to provide funding when funds beyond personal or initial investment are exhausted. The timing of seed funding through outside sources or partners is critical in planning future expansion, current staffing levels, pricing for services, and break-even point with which to measure profit margin beyond expense and income statements. This planning will allow for a control measure to set budgeting based on the fixed costs, the ability to manage the variable costs to stay within the established break-even numbers. If these can be maintained, then expansion and continual growth can be expected to follow the plan set in an initial offering to investment partners. “The Break-even analysis will determine the minimum number of clients we must service to cover the costs of doing business allowing for robust planning in the other aspect of the firm (Benson, 2016)”.
Other tools to assist in Homework Hangout’s plan of activities is what payment terms that will be offered to clients, partners, and other outside staff people who are independent in renting space to hold instructions / activities. The terms must be acceptable to each party without hurting or depleting the influx of revenue necessary to continue the operations of the business. The successful management of the finances will provide for the rapid growth of the Homework Hangout in the region as the premier afterschool social and learning spot for teens in the initial market offering. With this success, the expansion through acquisition of other properties to expand the footprint of the business will meet or exceed the business plan.
The Homework Hangout will likely use the debt to equity ratio in order to make sure that the company can accurately show the difference between the amount of capital borrowed and the amount given by shareholders. The company will also likely use a profitability ratio such as return on assets in order to verify that the company is maintaining decent profit margins. By using all of these tools The Homework Hangout should be able to precisely see where financial adjustments will need to be made in order to ensure the success and growth of organization.
The Homework Hangout’s preferred timing is listed above in the Gantt chart; the process the principals decided on was in order to optimize start-up and an initial goal of 200+ clients. All this would be ideally complete at April 2017. The company will start with incorporation and starting paperwork and business licenses. The next steps will go from funding such as grants and loans. Upon finalizing all paperwork and funding the business will move towards filling mandatory positions and training efforts. Finalizing plans and implementing marketing will be our next steps and then the organization will move towards grand opening and gaining clients.
In case of a setback during the setup of The Homework Hangout, it would be very wise to identify a variety of optional locations that can be used but still remain within the community or as close as possible. In a financial setback, it would be useful to identify a variety of other financial intuitions that can be potential lenders. It would also be useful to look for sponsorships and into constant fundraising ventures to ensure that our lenders and stakeholders are aware of how serious and how important it is to get this business plan off the ground and into a successful future for the youth. Should there be a natural disaster problem, collaborating with local learning facilities would be a great idea.
The Homework Hangout Inc. will need to be a company that is prepared for the unexpected events that occur during the process of creating an establishment. The Homework Hangout Inc. has created a contingency plan to safeguard what so many have worked hard to create for the youth of the community. The Homework Hangout will need to know that strengths and weaknesses do exist. By using the SWOT analysis prepared by the Homework Hangout Inc. management will be able to use the strengths of the company and apply it toward any crisis the company might anticipate. The Homework Hangout Inc. will also seek insurance policies to protect the employees and participants to ensure there is a plan of stability in case there is a loss of funding for the operations costs. There will be a system created to protect information within the company and to mismanage all costs that are revolving within in the company so funding can be properly tracked to report to shareholders involved with the Homework Hangout. It is always important for a company to be prepared for the unexpected and having a solid contingency plan can help The Homework Hangout Inc. be prepared for the better or the worse.
Strategic Leadership Entrepreneurship
The Homework Hangout must be recognized as a company that is able to create a dual sphere of influence that will not only be recognized as an institute but as a viable entity of the community for educational support. The spheres will create the bases of the company that will be the direct clients and employees within the functioning organizational operations. The second sphere is the influence of community leaders within the community. This sphere is key in the completion of the mission statement for the long term. This can be successfully created and built with the strength of these leaders influencing the clients to look into our assistance in learning opportunity, and then the next portion of the leadership influence will be internally performed. “When we ignore the roles our spheres of influence play in the success of any business venture the result can be very perilous to the business (Tharakan,2016)”.
As the business strives to open the doors for The Homework Hangout much of the influences that will build up the company will stem from the school leaders and community leaders. These leaders will have to accept the plan of a cooperative engagement between public plans and the organizations that plan to help the youth.
The influence the staff will have on the clients is a tenuous one at best. When dealing with youth of the community the staff must be flexible in approaches to each individual and the cultural differences they have. The key for success of the staff will be to always remember to be respectful and nurturing to the needs without appearing to be controlling while allowing the clients to grow in confidence and knowledge of their potential in attaining the dreams and goals they have. Our roles in influencing the young minds and future leaders of the communities in which they live relies heavily on the role models the staff must be to influence them.
The leadership bias of the organization could potentially encounter can be limited lines of communication or decision-making between leaders, staff members, and other stakeholders within the community. Although the intentions are in the best interests, the results may not always work to full advantage, but this is where the president will make immediate business decisions. As the Homework continues to expand and gain a better stance in the community, there will be a time when the recruitment process for board members will arise. However, for the time being the Homework Hangout will practice CEO duality.
As the Homework Hangout grows, the core competencies identified may change over time to tailor to the present trends, or in some cases, it may not change at all. For example, one of the services mentioned was a place for kids to enjoy the company of their friends while listening to music. Should the type of music being played is not the current trend; some clients might find other places to hangout instead.
Other issues that may be encountered can be retaining staff members, community support, competing with other organizations and maintain financial status. The key to maintaining human capital is to find members with the same vision in helping and nurturing the youth to expand their horizons as well as ensuring proper training is completed. Although the focus is on enriching the youth’s lives, there will always be a community member that will find a reason to object and will solicit followers. It will be most beneficial to the Homework Hangout to find immediate solutions to quickly address setbacks and to educate the community on what factors influence the youth and the purpose of the Homework Hangout’s intentions.
As always the competition among other organizations in the same industry will be present, it may be helpful to welcome competition and use it as a learning tool in what strategies work and learning not only from internal failures but external as well. As the Homework Hangout continues to grow and make a stance in the business world, finances will be an issue at the forefront. How will activities be funded? How will our staff be paid, and how will we provide the required supplies to maintain this business? The answer will come from the financial officer’s hands, whom will be proactive in obtaining funds either through grants, fund raising, or through profit and will ensure the activities provided are with in the fiscal year’s budget.
The Homework Hangout’s leaders will need to demonstrate various leadership styles in order to lead the company in the future, through changing business climates. When hiring instructors for tutoring and homework help, a large amount of Laissez-Faire leadership style will be used. Additionally autocratic and participative leadership styles will likely be used in the company’s future. Autocratic leadership will be important in key situations as chron.com puts it “Managers possess total authority and impose their will on employees (Johnson 2016)”. Participation will be key for inspiring teamwork and attempting to find future leaders within the company’s organization. Incorporating servant leadership will be key for the company. The Homework Hangout will incorporate servant leadership through open doors, open media policies, and open conversations rather than demands.
With the different styles of leadership the company leaders will need to utilize while starting this venture, there are areas of strength and weakness that will be inherent to the process. The leaders will garner a strength in the knowledge of current teenage trends for activities, while fulfilling the objective of actively empowering each client to reach their full potential using multiple approaches to assist in the understanding of the subjects they are asking for help with. The instructors will be mostly students who are pursuing college degrees who have a desire to share knowledge and help kids learn. This desire is a large strength to carry the culture of the business. They must be of a servant style of mind when working with the clients. The biggest strength is, how can the organization assist the client in reaching the goals they have set on a personal level?
Weaknesses to this business is being overwhelmed when not staffed correctly to meet the client load. If the staff is not able to provide enough one on one interaction with clients to feel they are important, the clients will not return. This weakness is one that can be very detrimental to the organization. Other weaknesses may occur as the financial aspects and curriculums become developed with the assistance of the local school districts the company serves. The time to incorporate changes in the curriculums as they happen will also provide a weak link in the business. With the right leadership these weaknesses can be held to a minimum effect and eventually become strengths as the leadership builds strategies to assimilate changes seamlessly into the business. One other weakness at the startup of the business is the lack of a longstanding reputation within the community. The Homework Hangout will need to build this reputation through focusing on the mission and vision of the company. The community will need to experience the difference in our philosophy over those of our competitors. “The continual evaluation of strengths and weaknesses must be an integral part of our strategy in building a successful company (Baldwin,2016)”.
Leadership can be the rise and fall of a company and can be decided upon in the first few months of planning or end up failing in the years down the road. The results the Homework Hangout expects are very high and as such, leadership will be a key part to bring this together. Leadership can inspire people to work harder and do things the correct way or the wrong way, as such leadership is essential in this business as much as any other.
Balwin, D. A Fundamental Element of Strategic Planning. Retrieved July 31, 2016, from
Benson, T. (2016). The Key Elements of the Financial Plan. Bplans Starting a business made easy. Retrieved from http://articles.bplans.com/the-key-elements-of-the-financial-plan/
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (n.d.). Strategic Management Rouble, G. (2012, October 29). Improving Operational Effectiveness – A Simple Strategy For Managers. Retrieved from http://www.the2percentfactor.com/blog/bid/175592/Improving-Operational-Effectiveness-A-Simple-Strategy-For-Managers
Manktelow, J., Jackson, K., & Edwards, S. (n.d.). The McKinsey 7-S Framework: Ensuring That All Parts of Your Organization Work in Harmony. Retrieved July 10, 2016, from https://www.mindtools.com/pages/article/newSTR_91.htm
Rivers, C.(2010). Marketing Services – The Four I’s of Service. Ezine Articles. Retrieved June 30, 2016, from http://ezinearticles.com/?Marketing-Services—The-Four-Is-of-Service&id=4494283
S.-J. Chang, J. Chung, & J. J. Moon (2013). When do wholly owned subsidiaries perform better than joint ventures? Strategic Management Journal, 34: 317–337; Y. Fang, G.-L. F. Jiang, S. Makino, & P. W. Beamish, 2010, Multinational firm knowledge, use of expatriates, and foreign subsidiary performance, Journal of Management Studies, 47: 27–54. Retrieved from https://lc-ugrad1.gcu.edu/learningPlatform/externalLinks/externalLinks.html?operation=redirectToExternalLink&externalLink=http%3A%2F%2Fgcumedia.com%2Fdigital-resources%2Fcengage%2F2014%2Fstrategic-management_concepts_competitiveness-and-globalization_ebook_11e.php
Tharakan,K.M. Spheres of Influence. Retrieved July 31, 2016 from https://strategypeak.com/spheres-of-influence
About SBA | The U.S. Small Business Administration | SBA.gov. (n.d.). Retrieved from https://www.sba.gov/about-sba
Arizona Department of Education. (2016). Dropout Rate Study Report. Retrieved from http://www.azed.gov/research-evaluation/dropout-rate-study-report
Boys & Girls Clubs of America.(2010)America’s Kids in Crisis. Boys & Girls Clubs of America. Retrieved from http://bgca.org/whoweare/Pages/FactsFigures.aspx
Contingency Planning – Risk Management from MindTools.com. (n.d.). Retrieved from https://www.mindtools.com/pages/article/newLDR_51.htm
Johnson, R. (n.d.). 5 Different Types of Leadership Styles. Retrieved July 30, 2016, from http://smallbusiness.chron.com/5-different-types-leadership-styles-17584.html
Porter’s 5 Forces Definition | Investopedia. (n.d.). Retrieved from
The Children’s Learning Adventure, Childcare Centers. (n.d) Retrieved from http://childrenslearningadv2.reachlocal.net/index.php/about
The Five Competitive Forces That Shape Strategy. (n.d.). Retrieved from https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1