This is an on-site experience, an eye-opener and an insight into what exactly school owners running low income schools face. No savings at the end of the term. And the school must save towards capital investment(land). If fact I will advice people now, if you are starting with low school fees , don’t bother because the proceeds will be for maintenance alone. The drudgery involved is beyond the gain
Now, I am going to assume a school using a three bedroom apartment and of course, a three bedroom apartment can’t accommodate a 100 learners but let’s work with a hundred. In this case, each class has about ten learners from pre to Basic 5. This school is assumed to pay 20k which includes tuition, event and exam fee. ( Remember we have far more low income schools than high income schools).
School Start-Up Budget
• Plan income at 85% = 20k x 100learners x 85% = 1.7m
• 1.7m + 200k (assumed profit from sales of books, uniform, stationary etc.) = 1.9m
School Start-Up Expenses
• Salary – 20k x 11 staff (taking an average as salary is between 15-25k, 9 teaching, 2 non teaching staff) = 220k +40k (director who also serve as a substitute teacher salary) = 260k x 4 months = 1.040m
• License renewal for primary 60/3=20k
• Rent for three bedroom 300/3=100k
• Exam and text 50k
• Stationary (marker, pen, pencil etc.) 10k
• Toiletries (soap, izal, air freshener, tissue etc.) 40k
• Phone voucher 6k
• Electricity bill 1500*4=6k
• Refuse disposal 3k *4=12k
• Maintenance 20k
• Admin impress 10k
• PTA 10k
• Association dues 10k
• First aid box 2k
• Plumbing 3k
• Electrical 3k
• Toilet dislodgement 21/3=7k
• Fuel 12k
• Event 150k
• Ministry 10k
• Council, local government, community etc. 40k
• Miscellaneous 30k
• Remittance to school purse at 20% of total income = 380k
• Total expenses = 1,971,000
Meanwhile, expected income is 1.9m
Now, is the above profit or deficit? And note, there are so many other expenses excluded and if you can keep 10% of income then you must be strong and remember I stated that a three bedroom apartment may not be able to accommodate a hundred learners and this is “if” your fee is up to 20k.
Now, in Some areas in Nigeria, a plot of land is between 8-17million for a 10050. Please how long will a school owner save 200k termly to acquire at least 10050 piece of land? That is if you can make the 200k target and remember, the higher you go the higher your expenses.
In conclusion, do you now see why most educators look tattered and are low life with worn out shoes? Yet, people keep complaining the salary is too small but remember, a worker is worthy of his wage and the purpose of business is to make profit.(Budget For School Start-Up)
Kindly ask yourself, do you still think school owners are wicked? If I had invested in other business what I invested in this school, by now I would have good hay wire.
Kindly note that:
this same numbers should at least be maintained with that 85% fee payment. remember sales of uniform and textbooks always come in mostly first term. While your analysis should be base on numbers of pupils who graduated from your school at least equivalent to numbers of new intakes during first term to sustain the budget. If 20pupils graduated and new intakes is 15 u are already on deficit.
How to Create A school
It takes a long time and a lot of effort to establish a standard school. The following are the steps to take:
- Identify Your Niche
- Form a Committee
- Find a Home
- Develop a Business Plan
- Develop a Budget
- Tax-Exempt Status
- Choose Key Staff Members.
- Solicit Contributions
- Identify Your Faculty Requirements
- Spread the Word
- Open for Business
- Orient and Train Your Faculty
Factors that Influence the Cost of Starting a Private School
- The Location of the the school: The location is another important aspect in determining the cost of starting a private school in the United States of America. In business, location is an important factor in determining the company’s success. There are business consultants and realtors who specialize in assisting people in selecting the best location for their particular sort of business; a place that will ensure their success. As a result, you’ll agree that location has an impact on the cost of opening a private school.
- The Type of Private school: The sort of private school in issue is a crucial component that will decide the overall cost of opening a private school in the United States of America. There are various types of private schools, particularly in terms of the age group that the school is designed to serve. Primary schools, which include kindergarten through sixth grade, and secondary schools, which include seventh through 12th grade, make up the Private Schools industry. These educational institutions are primarily supported by student enrolment and tuition payments. There are also many types of schools, such as independent and private schools.
- The Amount of Students You Wish to Accept: Another key aspect that influences the cost of operating a private school in the United States is the number of pupils that will be accommodated or admitted at any given moment. Without a doubt, there are private schools that can handle more than 100 students at a time and private schools that can only accommodate less than 100 students at a time. Apart from the expense of renting or leasing the building, furnishing the school will be more expensive, and the larger the number of pupils you accommodate, the more money you will need to set up and maintain the private school.
- The Cost of Private School Branding, Promotion, and Marketing: Another important aspect that will affect the entire cost of operating a private school in the United States of America is the expense of branding, advertising, and marketing the private school. You must be willing to pay for excellent branding, promotion, and marketing of your new private school if you want results. In reality, hiring an expert to assist you in competing with brands that are currently dictating the market direction of the private school industry in your city is not inexpensive.
- The Cost/Budget Of Registering The School: Another cost that will influence the overall cost of operating a private school in the United States of America is the cost of registering the private school business. Although the cost of registering a business is low, it will undoubtedly increase the overall cost of establishing a private school in the United States.
- The Cost of Insurance: Another key consideration that will impact the overall cost of starting a private school in the United States of America is the cost of insurance coverage. You cannot conduct a business in the United States without having some of the fundamental insurance policy coverage that are required by the industry you want to work in. As a result, it’s critical to set aside money for insurance and potentially consult an insurance broker to help you choose the best and most appropriate plans for your private school.
Budget For School Start-Up