THE PERFORMANCE ANALYSIS OF BUSINESS IMPROVEMENT STRATEGIES USING FINANCIAL FEASIBILITY APPROACH TOWARDS EDUCATION STARTUP: A CASE STUDY OF COMPRESS CLUB

• Main Author: Ilmi Hariadi, Rosihunal
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75641
• Institution: Institut Teknologi Bandung

Unemployment among the educated is becoming a bigger challenge in Indonesia every year. Skills and experience are more highly valued than an educational background. The World Bank survey argues that they lack these areas. Therefore, a skill development platform that is suitable to solve the mismatch in employment needs to be outside learning that students can participate in alongside their busy schedules. Compress Club was founded in 2021 as an education startup, centred on its innovative system, hoping to help high-achieving students gain better soft skills and faster career preparation. Compress Club differentiated its product to participate in the programmes that students wanted to join: first year, middle year and final year programmes. Based on the company's financial history from 2023, the number of consumers fluctuated and decreased sometime, inconsistency happens. This situation indicates Compress Club to create improvement strategies starting from forecasting appropriate programs innovation until the readiness of strategies implementation in the future. Compress Club wants to know the performance of the business improvement strategies from financial aspect. For this reason, a feasibility study is carried out from a financial perspective, analysing the Payback Period (PP), Net Present Value (NPV) and Internal Rate of Return (IRR), completed with a risk assessment as the readiness of the business improvement strategies. The result concludes that the company has the ability to perform with a 5-year projection by implementing the programme innovation as valid strategies in improving business performance. There is optimism that the payback period reached within 11 months with an NPV of Rp1,850,499,938 and IRR of 130.15% exceed the business feasibility criteria greater than the Weighted Cost of Capital (WACC) value of 7.66%.