Nowadays, despite people spend more years in school to receive education, graduating from school may also imply some of these fresh graduate is going to join the unemployment market and have to start paying off student loans. While tuition has gone up dramatically, the level of education has become irrelevant in the job market. According to Student Loan Debt Statistics in 2018, Americans have a cumulative more than $1.5 trillion in outstanding student loan debt which surpassed credit card debt, and it has no sign of slowing down.
60% of bachelor’s degree recipients graduated with student loan debt with average $37,172 per borrower in 2016.
In 2017, a four-year private college charges an average of $34,740 while public university charge $9,970 for in-state students and $25,620 for out-of-state students, and the tuition is expected to increase by 2%-3% yearly. According to U.S. News, a study found it takes the average bachelor’s degree holder takes 19.7 years to pay off his/her loans, and 23 years to pay off a graduate degree (2018).
There are student loan forgiveness programs to help people get out of student loan payment, but they have set the standard to be qualified loan forgiveness too high and competitive.
A student loan forgiveness program had received nearly 34,000 people applied for loan forgiveness, but only 26 had been approved after a year. Loan forgiveness is only available for federal loans, and private student loans is not eligible. Our mission is to provide a path out of student loans through job assignments, providing the opportunity for people who are struggling to pay off student loans while managing the high cost of living, by helping them to find jobs that match their skills while providing specific training programs to support them.
Market Analysis
Nonprofit HR report indicated that one of the top talent management challenge for nonprofits is hiring high quality candidates within limited budget constraints. However, about 60% of the nonprofit indicates no plans on creating a formal strategy for recruiting employees. Our target market is nonprofit organizations with limited budget constrain to offer benefits to attract high quality staffs, including
- Foundations and Endowments
- Educational Institutions
- Unions
- Social Service & Cultural Organizations
Competitive Analysis
Our mayor competitor is Scion Nonprofit Staffing. Scion has several offices in the U. S., and it specialized in providing temporary staff exclusively for the nonprofit sector. SL Recruitment Consultancy will be providing both temporary and permanent staffs while providing student loan reduction benefit to help our clients to attract qualified staff.
SWOT Analysis
Strengths: One of our core strengths is offering student loan reduction, which reduce cost for nonprofit and increase its attractiveness to qualified candidates Weakness: SL is going to be a new organization and it will be facing higher risk of uncertainty, and it might take some time to break into the market. The opportunities and demand for talent staffing in nonprofit is massive, and we will be able to help with the nonprofit organizations to meet their hiring needs within the budget. Threats: One of the threats can be economic downturn in the US which will impact the hiring demand.
Products/Services
Product: Our main product is jobseekers who are 21 – 35 with student loans unpaid. Services:
- connecting non-profit employers with people with student loans; Matching companies with students for long-term and short term employment
- Extensive job coaching to our employees, so they can understand our clients’ industry, business, and be ready to start working for our clients
- Student Loan Reduction Program serve as employee benefit to attract high quality staffs at no additional cost to our clients
- Areas of expertise: Administrative, Finance, Operations, Development, Executive, Human resources, Marketing, IT
- Marketing and Sales
Promoting to our existing clients with discounts i. Since Solovis is the sponsor of SL which provides an investment management platform for multi-asset class portfolio management, specialized in Foundations and Endowments. We are going to introduce SL to Solovis’s existing foundation and endowments clients and offer them 20% discount when they use SL as their recruiting agency, and additional 10% discount on next hired staff for referring new non-profit company to SL.
Social Media Buzz
This tactic utilizes the impact of social media, such as Facebook, Instagram, & Youtube, to create buzz for our recruiting service. This strategy not only provide an avenue for reaching a large number of people in non-profit organization, but also help SL to reach out potential candidates.
Financial Plan and Projections
- SL Recruitment Consultancy is a nonprofit that will be sponsored by Solovis. SL will incorporate in New York. The business will be financed with a total capital contribution of $80,000 by Solovis for the purpose of incorporating the business, hiring staff, advertising its services.
- There are several assumptions used for forecasts.
Annual Growth : We aim at growing 50% in 2020, 30% in 2021, 20% in 2022, 20% in 2023 on the basis that the company will be stepping up marketing efforts and initiating new partnerships that will foster growth. Employee pay : Pay rate on hired candidate is 65% of Bill rate Burden Rate: burden rate on hire candidate is 10% of Bill rate SG&A (Overhead) : We are allocating 20% of Sales for Overhead expenses Tax: Because we are non-profit organization, we are tax-exempt. Student-Loan: when a candidate is hired either Temporary or Permanent, we are going to make a payment to help reduce the candidate’s student-loan which equal to 5% of the employee pay on an assignment
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