Education Ministry of the Republic of MoldovaAcademy of Economic Studies of Moldova

Faculty: International Economic RelationsSpecialty: World Economy and International Economic Relations

Private primary school “Brilliant Minerva”(Business project: Economic informatics)

Student: Brasovean Mihaela, EMREI-294E-mail: mia_micuta@yahoo.com

Phone: 068517721

Coordinator: Dumitru Todoroi, univ. prof., dr. habilitatum,ARA corr. member

Chisinau 2009

Content

Introduction

Chapter I. Objectives of the project

Chapter II. Activities

Chapter III. Financing of the project

Chapter IV. Data bases

Chapter V. Business day-by- day

Chapter VI. Advertising

Conclusion

Bibliography

Introduction

1. The primary school represents the basic stage in forming a child’s personality, abilities and character.

After analyzing the primary-school market in the capital

Chisinau. The result showed the opportunity to open a

private primary-school, that would serve the population in

the Center sector.

Moreover:

The number of children of school age is in permanent increasing in Chisinau.

Therefore, to respond to the request, we will open the primary-school “Brilliant

Minerva” which will provide services for school education

Concern on the quality of education has increased the interest in

private primary-schools, which provide high quality services by

carefully selected personnel.

Our institution will follow the development potential of children,

their abilities and skills through a natural individualized education,

containing the best educational and teaching methodology , a

balanced environmental training, an exemplary relationship with

parents and school staff .

We believe that all children

• should be trained and educated, learn how to respect

• can learn effectively in an appropriate framework

We want all children

• to become independent pupils, with a baggage

of knowledge consistent and well structured.

To do this

• we will seek to establish bridges of communication with

parents as they are in power to influence their children's preparing

for life.

To crown all these, I would like to say that education is a strategic

factor of development of child's perspective and that is why it is an

excellent idea for my business to open a private primary-school in

the capital city.

Chapter I. Objectives of the project

1) Analyze the project

2) Choose a bank for the credit

3) Create a proper medium for the education of children

4) To hire well-qualified and trained personnel

5) To attract clients through an efficient advertising and qualitative services

6) To be viewed as the best primary school in the sector

7) Maintain an advantageous profit for covering the expenditures

Chapter II. Activities

1) Describing the business idea

2) Offered services

3) Choosing the rental bank for a loan

4) Finding the right location

5) Target market

6) Hiring well-qualified and trained personnel

Activity’s conclusion

2. Educational offer:

NORMAL PROGRAM 8.00 - 13.00:

• Breakfast • Classes • Activities extracurricular • Lunch

Monthly fee : Starting with 1000 lei

LONG PROGRAM 8.00 - 16.00:

• Breakfast • Classes • Optional Activities • Lunch • Homework doing • Activities extracurricular

MONTHLY FEE: Starting with 1800 lei

Optional activities:

Music

Dancing

Arts

Design

Sports

EXTRA ACTIVITIES:

- Theatre

- Funny shows organized by kindergarten;

- Visits museums

- Summer children camps

- Events in primary-school: Week "Open Doors'‘,Day “Favorite pet'', contest “We plant trees”.

- Celebrations in primary school: Christmas celebration "Here comes Santa Claus," "For your mother", "Comes the great holiday!"

Organize children's groups is as follows:

1st class

2nd class

3rd class

4th class

In conclusion, our primary-school offers a variety of services that

will attract parents to invest money in their children’s education

namely here. We have 2 programs and four level of classes that will

totally satisfy the demand and plus a lot of extra activities that

develop the abilities of each child in order to create a new, healthy

generation.

3.Choosing the rental bank for a loan

While searching the conditions of available credits by different banks I found the

following information about three of them.

ProBusiness up to 1 000 000 leiAdvantages: - decision in 5 days

- minimum documents required

- credit term: up to 48 months The credit ProBusiness permits, in 5 days, to receive a sum of money necessary for the development of small business. It is issued to small entrepreneurs (legal persons - firms), carrying out their activity on the territory of the city.LOAN Pro Business

 

Sumfrom 300 000 up to 1 000 000 lei

Term up to 48 monthsInterest rates up to 24%Commission 2,5%, flat

Moldinconbank offers:

First Business Credit is aimed at newly founded enterprises and companies seeking to enter the business and achieve an ascendant dynamics of development.

Advantages:- Grace period upon the payment of the principal amount of the extended credit;-  Customer’s contribution may be equal to “zero” in the event of credit extension for working tools; - ”zero” commission upon the advance credit repayment;-  Flexibility of the credit guarantee;

Purpose supplementation of working tools, investment projectsMaximum amount 700 000 lei for working tools

1 500 000 lei for investment purposesTerm up to 18 months for working tools

up to 36 months for investment purposesCurrency MDL, USD, EUR

The conditions of offering loans of the small business enterprises:

The maximum loan amount 700,000.00 lei;

The maximum term 36 months;

The destination buying the production technique (without transport means);private business

The currency MDL

Financing conditions 30 % - from loaner’s own means, 70% - from the Bank loan

The interest size 15 % annually

The commission size up to 2 % from the loan amount (it is paid when offering the loan

The vacancy for paying the interest 3 months;

Paying the interest monthly and paying the calculated interests (to which the vacation was taken) – monthly, in proportional rates, during 12 months

The vacation at the essential amount reimbursement 6 months

The mortgage the equipments bought from the loan, with the insurance for the Bank at the National Society of Insurance “Moldasig”.

To conclude, analyzing carefully all these three credit offers,

taking in consideration the sum I want to invest in my business

I observed that “Moldova-Agroindbank” has a good

offer:only15% annually, and that is why my decision is to take

a loan from this bank.

4. Finding a location

The location plays a decisional factor in attracting the clients. It should be

around customers, should be easily accessible and give the idea of safety.

Analysing all these, the perfect location is considered to be the Centre, where all

the primary-schools are fulfilled and this happens because "those in government,

the parliament" want their kids close to their place work.

So, “Brilliant Minerva” will be placed in the Centre sector, in the residential

neighbourhood and near big commercial centers like “Gemeni”, “SunCity”.

5.Target Market

The target market : persons with public functions and well-known local

celebrities. Also, another class of clients will be those who work in different

institutions, universities organizations and commercial centers situated in this

sector, like: managers, accountants, teachers, politicians, doctors, engineers .

In conclusion, wealth people from Chisinau prefer the best education for their

children and as they can afford such expenses we aim our business to them.

6.Hire well-qualified and trained personnel

For creating the personnel there will be place announces on the internet, flyers

and in newspapers, in the Pedagogic University, Foreign Language centers. At my

private-school I need 4 well-qualified and organized teachers, 1 English

teacher, 1 German teacher and 1 Spanish teacher. Also, I need an

administrator, one accountant, one nurse, one maid, a guardian.

In conclusion, my firm will take in consideration previous experience of

teachers, physical appearance, knowledge, patience and capacity to work

with children.

Activity’s conclusion

As such a business needs investment I have chosen ”Moldova-

Agroindbank” from where to get a loan. The relation between the

location of the kindergarten and the consumers is tight and because

of this a place in centre of the city implies directly the elite class. ’’A

healthy medium, right education and safety’’ -this is exactly what

we guarantee!

Chapter III. Financing of the project

1) Calculate payment for public utilities1.1 Public utilities1.2 Calculation of maximum expenses for public utilities1.3. Evolution of payment for public utilities1.4. First category expenditures for a year1.5. Total and employee expenditures per year

2) Employees salarization2.1 Comparison of administration expenditures and employees expenditures

3) Inventory3.1 Expenditures for inventory

4) Bank credit4.1 Comparison of Bank Loan and Bank Returning

5) Revenues from offered services5.1 Revenues for January

6) Expenses and expected income6.1 Total profit

Finance conclusion

1. Calculate payment for public utilities

For calculating all the payments during a year for public utilities I

present here a large table with all the costs. First category of

expenditures represents payments for electricity, heating in primary-

school’s building, repairs and the second are utilities for the whole

personnel.

1. Public utilities1.1. Calculation of payment for public utilities Calculation of payment for public utilities

Nr Services January February March April May June July August September October November December

1 Electricity 400 400 400 350 300 250 200 200 250 300 400 400

2Payement of personel 80 80 80 80 80 80 80 80 80 80 80 80

3 Heating 2200 2200 2000 1500 0 0 0 0 0 1500 2200 2200

4 Repairs 0 0 0 0 0 3000 3000 3000 0 0 0 0

Home expenditures 2680 2680 2480 1930 380 3330 3280 3280 330 1880 2680 2680

5 Lift 10 10 10 10 10 10 10 10 10 10 10 10

6 Cold water 18 15 15 16 20 25 35 30 25 15 15 15

7 Hot water 36 35 30 30 25 20 15 15 25 25 30 35

8 Gas 10 10 10 8 8 8 5 5 5 8 8 10

9 Rubbish 3 3 3 3 3 3 3 3 3 3 3 3

One person exp 77 73 68 67 66 66 68 63 68 61 66 73

Nr. of employees 10 10 10 10 10 10 10 10 10 10 10 10

Employees expeditures 770 730 680 670 660 660 680 630 680 610 660 730

State tax 3450 3410 3160 2600 1040 3990 3960 3910 1010 2490 3340 3410

Bank tax (1%) 34,5 34,1 31,6 26 10,4 39,9 39,6 39,1 10,1 24,9 33,4 34,1

TOTAL 3484,5 3444,1 3191,6 2626 1050,4 4029,9 3999,6 3949,1 1020,1 2514,9 3373,4 3444,1

1.2. Calculation of maximum expenses for public utilities

3484,5 3191,6 1050,4 3999,6 2514,9 3444,1January March May July September November

3484,5 1050,4 3444,1January July November

3484,5 3444,1January November

3484,5January

1.3. Evolution of payment for public utilities

In conclusion, the line that describes evolution of payment is not constant, fact that denotes that in summer months the expenditures are maximal. This is mostly because in this period I intend to do

Evolutiom of payment for public utilities

4100,6 4040

3762,25

3115,85

1535,2

4514,7 4494,5 4418,75

1616

3075,45

3858,24040

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1 2 3 4 5 6 7 8 9 10 11 12

months

lei

TOTAL

repairs in my primary-school’s building. Payment for winter months are relative high, but may and september are 2 months with minimal expenditures.1.4. First category expenditures for a year

First category expenditures for an year

Electricity15%

Payement of personel3%

Heating50%

Repairs32%

Electricity

Payement of personel

Heating

Repairs

We observe that, half of the expenditures for an year represent expenditures for heating in the building. The second place is taken by repairs. I intend to do repairs in summer in different classrooms.15 % of the expenditures are for electricity and last 3 % are for the payment for service’s personnel.

1.5. Total and employee expenditures per year

Total and employee expenditures per year

1380 1320 12451155 1140 1140 1170 1095 1170

1065 11401320

4100,6 4040

3762,25

3115,85

1535,2

4514,7 4494,5 4418,75

1616

3075,45

3858,24040

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1 2 3 4 5 6 7 8 9 10 11 12

mo

nth

s

leiEmployees expeditures

TOTAL

In comparison with Total, employees expenditures differs a lot from it, because Total represents expenditures for whole commodities. So, in may and september there is the biggest difference between these two calculations.

2. Employees salarization

2.1

Comparison of administration expenditures and employees expenditures

Employees salarization

Nr. Name Surname Position WageState tax T.U. tax

Health tax Salary

1 Brasovean Mihaela general director 8000 800 80 160 6960

2 Cihan Radu administrator 6000 600 60 120 5220

3 Garabadgi Cristina accounter 4000 400 40 80 3480

4 Calaras Daria educational manager 3500 350 35 70 3045

5 Casian Catalina teacher 3500 350 35 70 3045

6 Gradinaru Otilia teacher 3500 350 35 70 3045

7 Rozmiret Alexandru teacher 3500 350 35 70 3045

8 Tuluc Natalia teacher 3500 350 35 70 3045

9 Adam Ben english teacher 2500 250 25 50 2175

10 Perez Romario spanish teacher 2500 250 25 50 2175

11 Bumbu Victor german teacher 2500 250 25 50 2175

12 Motpan Diana nurse 1500 150 15 30 1305

13 Grigoras Gabriela cook 1800 180 18 36 1566

14 Bulimaga Diana maid 1500 150 15 30 1305

15 Botnaru Dumitru security guard 1000 100 10 20 870

Total 48800 4880 488 976 42456

Comparison of admininistration expenditures and employees expenditures

18705

23751

0

5000

10000

15000

20000

25000

Admin. Exp. Empl. Exp.

Category

Le

i

We observe that the amount of money spent for salarizatiom of employees is not much bigger than the amount spent on the salarization of administration. So, for the future I intend to increase the salaries for both categories in order to improve the offered services.

3 Inventory

For my business to work properly, I will need a lot of organizational materials like computers, desks, bookcases, printers, etc. So, I’ve decided to make the table “Inventory”, in order to better understand the basic needs for starting my business.

3.1 Expenditures for inventory

Inventory

Object Number of units Price per unit Total price

Computer 8 5300 42400

Printer 2 1200 2400

Xerox, Scaner, Fax 1 4500 4500

Office desk 13 750 9750

Desk 75 150 11250

Chair 90 75 6750

Leather armchair 3 1500 4500

Sofa 1 2300 2300

Fridge 1 4600 4600

Cooker 1 1000 1000

Conditioner 3 3500 10500

Wardrobe 2 1000 2000

Bookcase 3 1500 4500

Stationery(pens, pencils, paper) 3000 3000

Raw materials 3000 3000

Total 112450

Expenditures for inventory(lei)

42400

24004500

975011250

6750

45002300

46001000

10500

2000 4500 3000 3000

Computer

Printer

Xerox, Scaner, Fax

Office desk

Desk

Chair

Leather armchair

Sofa

Fridge

Cooker

Conditioner

Wardrobe

Bookcase

Stationery(pens, pencils,paper)Raw materials

We observe that the expenditures for inventory are relatively high, the greatest amount of money we spent for acquisition of the computers, on the second place is the amount spent for purchasing the desks, and on the third are the conditioners, the other good are relatively the same price.

4 Bank credit

For a rational returning of the loan, we must see the total amount of money that we need to return to the, for I better analyzing I decided to make the following table.

Bank credit

January February March April May June July August September October November December

Bank credit 19444 19444 19444 19444 19444 19444 19444 19444 19444 19444 19444 19444

Rate(15%) 2916,6 2916,6 2916,6 2916,6 2916,6 2916,6 2916,6 2916,6 2916,6 2916,6 2916,6 2916,6

Total 22360,6 22360,6 22360,6 22360,6 22361 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6

4.1 Comparison of Bank Loan and Bank Returning

Comparison of Bank Loan and Bank Returning

17500

18000

18500

19000

19500

20000

20500

21000

21500

22000

22500

23000

1 2 3 4 5 6 7 8 9 10 11 12

Month

Le

i Bank credit

Total

Analyzing the graph, we observe that we must return to the bank more than twice in comparison of the loan we got, but we understand that we need the money for starting our business, so we must comply the conditions we are put.

5 Revenues from offered services

In the next table we will se what will be the approximately income monthly, in order to know what money will be available for spending

Revenues from offered services

January February March April May June July

Nr. Offered services UnitsPrice of unit Total Units Total Units Total Units Total Units Total Units Total Units Total

1 Basic classes 68 450 30600 68 30600 70 31500 70 31500 72 32400 0 0 0 0

2 English calsses 68 450 30600 68 30600 70 31500 70 31500 72 32400 0 0 0 0

3 German classes 34 450 15300 34 15300 35 15750 35 15750 36 16200 0 0 0 0

4 Spanish classes 34 450 15300 34 15300 35 15750 35 15750 36 16200 0 0 0 0

5 Art classes 13 450 5850 13 5850 14 6300 14 6300 14 6300 0 0 0 0

6 Music classes 14 450 6300 14 6300 15 6750 15 6750 15 6750 0 0 0 0

7 Design classes 15 450 6750 15 6750 15 6750 15 6750 15 6750 0 0 0 0

8 Sport classes 13 450 5850 13 5850 13 5850 13 5850 14 6300 0 0 0 0

9 Dancing classes 13 450 5850 13 5850 13 5850 13 5850 14 6300 0 0 0 0

10 Meal 68 350 23800 68 23800 70 24500 70 24500 72 25200 72 25200 72 25200

11 Summer camp 0 2000 0 0 0 0 0 0 0 0 0 72 144000 72 144000

Total 146200 146200 150500 150500 154800 169200 169200

August Sept. Octob. Novem. Decem.

Nr. Offered services Units Price of unit Total Units Total Units Total Units Total Units Total

1 Basic classes 0 450 0 72 32400 72 32400 72 32400 72 32400

2 English calsses 0 450 0 72 32400 72 32400 72 32400 72 32400

3 German classes 0 450 0 36 16200 36 16200 36 16200 36 16200

4 Spanish classes 0 450 0 36 16200 36 16200 36 16200 36 16200

5 Art classes 0 450 0 14 6300 14 6300 14 6300 14 6300

6 Music classes 0 450 0 15 6750 15 6750 15 6750 15 6750

7 Design classes 0 450 0 15 6750 15 6750 15 6750 15 6750

8 Sport classes 0 450 0 14 6300 14 6300 14 6300 14 6300

9 Dancing classes 0 450 0 14 6300 14 6300 14 6300 14 6300

10 Meal 72 350 25200 72 25200 72 25200 72 25200 72 25200

11 Summer camp 70 2000 140000 0 0 0 0 0 0 0 0

Total 165200 154800 154800 2E+05 154800

5.1 Revenues for January

Revenues for offered services for January

30600 30600

15300 15300

5850 6300 67505850 5850

23800

0

5000

10000

15000

20000

25000

30000

35000

Basic classes Englishcalsses

Germanclasses

Spanishclasses

Art classes Musicclasses

Designclasses

Sport classes Dancingclasses

Meal

Offered services

Lei

We observe that the biggest revenue we have from offering Basic classes and English classes and the smallest one is from Art, Sport and Dancing classes. In the future, for maximizing my profit I intend to open more classes that offer Basic studying.

6 Expenses and expected income

For summarizing all my aggregate expenditure and total income I made the following table

Expenses and expected income

January February March April May June July AugustSeptmebe

r October November December

Expenses for public utilities 3728,92 3684,48 3426,93 2804,77 1228,16 4207,66 4179,38 4123,83 1300,88 2788,61 3551,16 3684,48

Money for salaries 42456 42456 42456 42456 42456 42456 42456 42456 42456 42456 42456 42456

Bank credit 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6 22360,6

Inventory 35125 8500 6600 7400 9900 0 0 0 4250 4250 0 0

Total expenses 103670,5 77001,1 74843,5 75021,4 75944,8 69024,3 68996 68940,4 70367,48 71855,2 68367,76 68501,08

Total expected income 146200 146200 150500 150500 154800 169200 169200 165200 154800 154800 154800 154800

Total profit 42529,48 69198,9 75656,5 75478,6 78855,2 100176 100204 96259,6 84432,52 82944,8 86432,24 86298,92

6.1 Total profit

Total profit

42529,48 69198,92

75656,47

75478,63

78855,24

100175,74100204,02

96259,57

84432,52

82944,79

86432,2486298,92

January

February

March

April

May

June

July

August

Septmeber

October

November

December

We observe that the profit is approximately the same in every month.

Finance conclusion

For realizing this project I require a great sum of money which I will loan, approximately 100.000 lei per month. Payment for public utilities and for personnel

are high, that is why I will exactly follow my objectives in order to make my business run and take a profit!!!

Chapter IV. Data bases

My primary school needs a well-structured database and for this,

from the beginning I included 6 tables which contain most important

information.

Costumers

Costumer ID Group ID First Name Last Name Parents Name Age Adress City Phone Number

c1 001 Cleopatra Stratan Pavel, Alina 7 str. Cuza Voda 3 Chisinau 344789

c10 001 Iulian Ghimpu Mihai, Angela 7 str. 31 August 36 Chisinau 768223

c11 001 Angelica Filat Vlad, Elena 7 str. Columna 25/3 Chisinau 454022

c12 001 Daria Papuc Ion, Maria 6 str. Izvorului 32 Straseni 684756

c6 001 Dorian Snegur Mircea, Ana 7 str. Ion Creanga74/3 Chisinau 223578

c7 002 Melania Micusa Dimitrie, Aniela 8 str. Dimitrie Cantemir 30 Straseni 694512

c8 002 Dragos Nagacevschi Andrei, Corina 8 str. Stefan cel Mare Chisinau 485612

c9 002 Ana Voronin Cristi, Felicia 8 str. Dacia 45/3 Colonita 456952

c13 002 Cristina Stepaniuc Sandu, Galina 8 str. Merelor 12 Chisinau 753658

c14 002 Alin Grozavu Fedot, Lina 8 str. Florilor 12/1 Chisinau 567814

c15 003 Laura Turcanu Zein, Lupita 9 str. Stefan cel Mare 32 Chisinau 235648

c16 003 Calin Tkaciuc Marc, Marcela 9 str. Frunzelor 30/2 Ialoveni 689124

c17 003 Radu Cordoneanu Andrei, Angelica 9 str. Mihail Sadoveanu 45 Chisinau 442162

c18 003 Ecaterina Stati Gabriel, Naomi 9 str. Bucuresti 34 Stauceni 224223

c19 003 Pelaghia Vieru Calin, Julia 8 str. Puskin 567 Chisinau 885668

c2 004 Alexia Abramovici Horia, Nina 9 str. Teatrala 56 Chisinau 563521

c3 004 Arina Dodon Dorin, Efimia 9 str. Mircea cel Batrin 55 Chisinau 589613

c4 004 Valeriu Tarlev Iurie, Oxana 9 str. Bucuresti 8 Chisinau 771525

c5 004 Tudor Obreja Dan, Sorina 9 str. Traian3 Bubuieci 595153

c20 004 Igor Gherman Laurentiu, Iana 9 str. Tighina 56 Chisinau 460145