Entrepreneur case study – Turner Test Prep Co. Essay Sample

July 26, 2017 Accounting

Introduction

In the Spring of 2003. Jessica Turner felt that she had come to a hamlets with her concern. As the laminitis and CEO of Turner Test Prep. a California company specialising in fixing people for the Certified Public comptroller ( CPA ) test. she felt that she was non accomplishing market portion and turning in the right way. After three old ages of supplying homework classed to both pupils and professionals. Turner had about 10 per centum of the market and was confronting ferocious competition from her primary challenger. National Testing Services. Uncertain with which growing way to take. Jessica contemplated several options.

Background

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Jessica Turner started Turner Test Prep in the summer of 1997 after graduating from Case Western Reserve University’s Weatherhead School of Management with a master’s grade in accounting. She passed the CPA test and began using to Big Six accounting houses. Frustrated after having several rejections. Jessica began to see other employment options. Her undergraduate grade was in concern. and after graduation. Jessica worked for several old ages in the concern office of a little trial homework company based in San Francisco. The company prepared pupils who wanted to take chiefly the SAT. GRE. GMAT. MCAT. and LSAT. Although her occupation was to pull off the company’s concern personal businesss. she besides began learning math to pupils several darks a hebdomad. Jessica received preparation from the company in learning basic proving accomplishments. and she applied those accomplishments toward learning the math part of the test. She received positive feedback from her pupils as a painstaking and advanced instructor.

Jessica felt that her experience as a instructor for the trial homework company helped her when she began analyzing for the CPA test. She knew how to analyze expeditiously. how to form her notes. and how to pattern for the assorted subdivisions. Jessica was one of the 25 per centum of pupils who passed all subdivisions of the CPA test on the first attempt.

When contemplating what to make next. Jessica was struck by the fact that so many of her co-workers were unable to go through the test. Convinced that she was non merely skilled in the accounting and finance rules but besides in cognizing how to analyze efficaciously. she decided to get down her ain trial homework concern learning specifically to the CPA test. She was confident that pupils and professionals wishing to go CPA’s would profit from a full-service plan that gave pupils full categories and individualised attending so that they could go through the test.

Jessica returned to California. set together a concern program. and secured funding from a local venture capital house specialising in little start-ups. She decided to concentrate her concern and selling attempts in the San Francisco Bay country. Based on her research and the Bay area’s concentration of different types of concern. Jessica estimated that there was a market of approximately 1. 000 pupils a twelvemonth.

The CPA test

Although people with undergraduate of alumnus grades in accounting or concern may make accounting work for a company. going a CPA provides an extra enfranchisement that employers prefer. Becoming a CPA can increase an accountant’s wage by 10 to 15 per centum and is typically necessary to procure high-level places. In order to be certified to go a CPA. people must carry through the undermentioned demands:

Have a college or master’s grade with 24 semester units dedicated to business-related topics. and at least 24 credits in accounting ( a lower limit of three credits ) . scrutinizing ( a lower limit of three credits ) . concern jurisprudence. finance. and revenue enhancement topics ;

Pass the CPA test ;

Have two old ages of work experience with a bachelor’s grade of one twelvemonth of work experience with 150 class credits.

The test is offered two times a twelvemonth. in May and November. It is a grueling two-day. 15-hour event comprised of multiple pick. essay inquiries. and job sets. The topics tested are: Business Law and Professional Responsibility. Auditing. Accounting and Reporting. and Financial Accounting and Reporting.

CPA test homework services

The CPA test varies merely somewhat from province to province. In order to analyze for the test. people typically purchase books. package. or an on-line class to assist them fix. The stuffs normally provide an overview of the tested stuff. survey ushers. and pattern inquiries. The on-line tutorials frequently provide more pattern inquiries and give pupils timed tests so that they can imitate existent testing conditions. Due to the sum of stuff covered on the test every bit good as its degree of trouble. pupils are advised to give themselves four months to analyze.

In the San Francisco Bay country. several community colleges offer one-week reappraisal categories to assist pupils fix. These categories give pupils a starting point. after which they could utilize auxiliary stuffs to analyze on their ain.

National Testing Services

National Testing Centers ( NTC ) is Turner’s primary competition. NTC is a national trial readying company that has been in being since 1962. The company focuses on virtually every standardised trial that is offered and has plans for high school pupils taking the SAT. undergraduate pupils taking calibrated school entryway trials ( such as the GMAT. LSAT. GRE. and MCAT ) . and graduate pupils taking enfranchisement trials like the saloon and CPA tests. In add-on. the company has a plan designed for international pupils taking the Test of English as a Foreign Language ( TOEFL ) test.

NTC is a full-service plan that offers a assortment of options for pupils taking any of these tests. Most classs offer the chance to hold schoolroom talks. home-study videotapes. books. package. online trials. or a combination of any of these options.

The CPA class does non offer unrecorded schoolroom Sessionss but gives pupils the option of books. package. and on-line testing for one or all of the countries covered on the test. Students besides have a toll-free figure that they can name if they have inquiries every bit good as on-line confabs with NTC teachers to reply inquiries. NTC offers pupils a free repetition class if they do non go through the CPA test and boasted a 75 per centum base on balls rate. The class is priced from $ 1. 000 to $ 1. 500. depending on which of the services the pupil chose. Many of NTC’s pupils are repeaters who ab initio chose to analyze on their ain and utilize a book or package bundle. Such pupils are dedicated to go throughing the 2nd clip they take the test and want the construction that the classs provide. NTC provides a survey agenda. survey techniques. and information about how to take the test that. it boasted. can non be found in any other class on the market.

Many of NTC’s pupils have besides taken an NTC class for a old entryway test. NTC boasts a higher overall base on balls rate for all its classs than any other trial homework centre in the state. Peoples who had taken a class for the GMAT and had passed. for illustration. felt confident that they would be every bit prepared for go throughing the CPA test. In a study of undergraduate pupils who had taken NTC for the SAT. 85 per centum said they would take another NTC class to fix them for alumnus school entryway test.

The Turner Testing Advantage

Despite NTC’s success. Jessica knew that with a base on balls rate of merely 25 per centum for first-time takers. there was a demand to supply a comprehensive plan to pupils so that they could go through on their first attempt. She devised a full-service plan the lasted for six hebdomads and was three to six hours per twenty-four hours. She worked with accounting. finance. and jurisprudence professors to plan a course of study to give pupils a comprehensive attack to analyzing for the test. She hired the professors to give three live. one hr talks per twenty-four hours. and she taught the test-taking techniques and forming accomplishments necessary to easy absorb the mountains of information that pupils needed to cognize. Jessica besides provided audiotapes for pupils so that they could reexamine the talks at place and suggested that they listen to them in their autos to maximise the usage of their clip. The class besides included several timed minitests for each subject and four pattern essay inquiries. which Jessica and her professors graded. The responses to try included many remarks and much feedback to give pupils guidance on countries to better.

Jessica besides made herself wholly available to her pupils. She felt that one-on-one attending was critical to their success. and she held bi-weekly meetings with each pupil to estimate advancement and reply inquiries. In add-on to the meetings. pupils could name Jessica or e-mail her with inquiries. and she promised to acquire back to them within 24 hours.

Jessica held two Sessionss a twelvemonth in March and September. three months prior to the tests. leting pupils to go on to analyze on their ain before the test. She besides made herself available to pupils after the class to reply their inquiries and assist them in any manner she could. Pricing her class at $ 1. 000 per pupil. she felt that she was supplying her pupils with more of an advantage and better readying than any of the NTC options. She besides offered a warrant. leting pupils to reiterate the class if they did non go through the test.

Jessica had taken a twelvemonth to develop the stuffs and make a selling program for her company. She decided to put ads in Bay country concern schools to pull pupils contemplating taking the test after graduation. She besides created circulars to be placed in the schools and asked the school disposals if she could put them in students’ letter boxs. She introduced herself to local concerns and tried to alarm them to her plan so that energetic comptrollers would be encouraged to take her category if they wanted to take the CPA test.

The first twelvemonth the she ran the plan she had 10 pupils. Despite the little category size. pupils felt that they had been good prepared for the test and appreciated the single attending they received. All pupils passed the test. The 2nd class had 45 pupils. 70 per centum of whom passed. The last session that she held had 105 pupils and 80 per centum of those pupils passed. Jessica did non experience comfy advertisement her base on balls rate. nevertheless. because many of her pupils had taken the CPA exam one or two times before and failed. She wasn’t certain whether they passed after taking her class because of the quality of the plan or because they were bound to go through it at some point.

Spring 2003

By the spring of 2003. Jessica had finished learning the class for the May test and was looking frontward to the September category. Although she was pleased that the figure of pupils in each session was lifting. she felt concerned the she was non doing plenty of an impact in the market. With merely 10 per centum of the market tapped. Jessica wanted to cognize how to better her selling and addition market portion. She besides wondered if she needed to arrange the class otherwise to pull pupils who did non desire to go to unrecorded talks. She had ab initio believed that pupils would profit from a structured plan that kept them on path. but now she was non so certain. Many times pupils did non come to category but opted to listen to the tapes at place. Finally. Jessica realized that in her ardor to acquire her concern up and running she had neglected to cipher her breakeven point. How many pupils did Jessica demand to breakeven. and at what point could she acknowledge a net income? She realized that these were all critical inquiries that needed replies to guarantee the future success of her concern.

Operating Costss for Turner Testing Services

Professor wages ( about 1. 200 hours per twelvemonth ) $ 75 per hr

Office infinite $ 2. 000 per month

Utilities and insurance $ 1. 000 per month

Materials $ 600 per pupil

Printing $ 500 per month

Marketing $ 400 per month

Travel $ 200 per month

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