It's vijaya dasami time and almost all parents are rushing to join their kids in school . A couple of months back, i happened to meet a friend. We were discussing how a new play school opened in our area was running successfully. I came to know that the play school was run by his friend. It seems from rough calculations the recovery cost was just 1 year or even less.
Particularly, for play schools which don't require much approvals, the cost is even less.
Rental cost of individual house per year is around 4 lakhs. Put funny paints and quotes on the walls, hire around 5-10 people at 10-15k per month, your total cost per year including electricity for fully air conditioned rooms come to around 25-30 lakhs. Collect 7-10k for a kid per month and if you can manage 30 kids, you can break-even in first year .
Of course, it needs heavy investment and some skills to manage such schools, but consider the fact how many businesses break-even in 1-2 years. You consider all my calculations completely wrong and call me stupid-armchair-critic who don't know the nuances,struggles and profitability of a business model.A famous playschool invites franchisees in areas around chennai and their website declares their break-even time is one year.
Of course, there are other such businesses which are also fool-proof such as the asharam babu consulting group and the Nithi-Morgan Chase Group. :)
Particularly, for play schools which don't require much approvals, the cost is even less.
Rental cost of individual house per year is around 4 lakhs. Put funny paints and quotes on the walls, hire around 5-10 people at 10-15k per month, your total cost per year including electricity for fully air conditioned rooms come to around 25-30 lakhs. Collect 7-10k for a kid per month and if you can manage 30 kids, you can break-even in first year .
Of course, it needs heavy investment and some skills to manage such schools, but consider the fact how many businesses break-even in 1-2 years. You consider all my calculations completely wrong and call me stupid-armchair-critic who don't know the nuances,struggles and profitability of a business model.A famous playschool invites franchisees in areas around chennai and their website declares their break-even time is one year.
Of course, there are other such businesses which are also fool-proof such as the asharam babu consulting group and the Nithi-Morgan Chase Group. :)
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