PRESCHOOL BUSINESS ANALYSIS
Every new parent wants the best for their newborn baby; they want to ensure the child develops intellectually and socially. This is where you come in as a teacher; your job is to prove that the child will learn the basics to prepare them for Primary education.
At 2 to 5 years old, a child is still a baby; vulnerable and delicate. Can you as a Teacher guarantee that my child will learn the alphabet, learn how to count, be safe and at the same time develop socially? YES? Well, how much do you want for this? Oh, what’s that? Did you say K3500 per term? NO PROBLEM.
As usual, I don’t know everything, I encourage you with experience running a preschool to chip in with your comment. POSITIVE OR NEGATIVE.
As a teacher, you are going to be undervalued as the nature of your job. So it is up to you to come up with ways to not let life beat you up by having a business sense. As a teacher, you have abilities that can easily make you a rich person and that is the ability to speak in public, ability to teach/coach and a constantly learning mind. These are tools to success, so put down that biology book and let’s talk business.
THERE IS MONEY IN A PRESCHOOL
Imagine you have 50 pupils and they are all paying K3500 ZMW per term. That is K175,000 ZMW per term (K3500 Per term X 50 pupils). To me, this is already a viable business plan just looking at the numbers. All you need now is your passion. Even if the fee was K500 ZMW per month, you could make K25000 ZMW per term (K500 X 50 pupils) which is about K8,300 ZMW per month. Who is paying you K8,300 ZMW as a teacher today? And that is the ridiculously worst-case scenario.
If you stop doubting and start believing in yourself, you could be ordering a new Ferrari soon.
OFFER VALUE FOR YOUR SERVICES
What differentiates you from the best schools in Zambia like Lusaka International?
You can take time and look at their curriculum for international pre-schools. You can tell the potential clients that your learning curriculum is the same and or even better because you have decided to be small deliberately so that you can have a more one on one training and identify the child’s specific needs because children learn differently and at different paces which is harder in bigger schools. We are able to give you timely feedback on the child’s progress because we have a manageable number to deal with. Just this point alone will make the parent consider bringing their child to your school. My aim is not for you to be affordable to every family but deliver the highest possible value in education, that’s why we charge a premium K3500 ZMW per term.
Give Them Uniforms/Sell To Them
Every year or semi year, give the parents uniforms for their children as a school requirement to avoid discrimination from class. Sell to those who want extra for their children. You can have a tailor make them for you cheaply and then you can sell them cheaply. The best would be to incorporate the uniform cost in the school fees of K3500 ZMW so it is more palatable to your customers to pay that hefty amount.
Having an inventory of uniforms helps you when it comes to changing kids who have pooped or peed themselves. Tell the parent that their child can carry an extra short or skirt in case they pee or poop. This right here is service!
Promote Childs Mental and Physical Safety
Go further as to assure them on the child’s safety with a continuous observation so that they don’t swallow toys that can choke them. Avoiding things that can scare them such as bullying or being a bully.
Location Of The School
This is a topic but will also act as value addition to you asking for K3500 ZMW per term.
This is the money right here, my idea for the best place to set up the school is not to just find an abandoned house in a dense residential area. My ideal place for running this business is to have it in a housing complex Like NAPSA FLATS. Why?
Because all the people in that community will be your potential customers.
Because the parents do not have to spend money/fuel going to pick up the kids when they knock-off, they could just ask someone at home to pick them up. This right here would be another point for charging K3500 ZMW. You can also emphasize safety for your children. Today we cannot trust taxi drivers or people that pick up kids from schools. With a small group of 50 pupils and being in a community, you will know who to trust with the child. K3500 ZMW is not even a cost here.
Because you can carry out PTA meetings even in the night when parents knock off.
Because if a child falls sick, you can drive or lift the baby to their home.
Rent Or Buy A House
Don’t be silly just rent and see if the business works. I don’t care how much they charge you in a complex; just get in there, which is where your niche is. If you decide to get a place which is standalone you will need to invest in marketing which won’t be too good for you. Also, think about the security of your property, housing complexes also eliminate things like a child being bashed when crossing the road to school. If I were you and single, I would actually start living in the school to save. One bedroom for me.
NO REGULATIONS
The government is not involved here, they don’t even require that a child should have done preschool before they enter primary, so meaning this is a safe zone for you. No government means no paperwork for chasing and paying stuff, maybe just establishing yourself as a company and either way, I know education is almost exempt from taxes because it does good for the development of the nation. The government is not in your way here, you could be a chemistry teacher and still have a preschool and you can freestyle your learning curriculum which can help you stand out.
HIRE THE RIGHT PEOPLE
Teaching Staff
You don’t have to dive deep into this business and leave your current job; you could run it as a side business and hire the right staff to help you carry out this business. Find someone that loves children. Someone who has the right papers and someone who can speak English excellently because children will learn from them.
Your motto should be “Your Kids, Our Kids”
Do not pay your staff peanuts
Pay people adequately if you want this business to work and do not hire a lot of staff because the plan is just for 50 pupils. Just hire two, if you are participating in the business just hire one to help you. Plus the person who does the cleaning. You want to keep all fixed costs very low because in the early stages can be your downfall. Make fixed costs super low for starters even if you think you can afford it.
Be a leader, not a boss, some of you teachers if given power, lose yourselves. You start shouting at your staff for no reason and being mean. Staff will leave you and your business will suffer, nurture your staff just as you are nurturing other people’s children. When staff grow with you, they will become valuable and you will be able to open another preschool somewhere else because they will be able to handle the current one. More cash for you for being a sweet gentle loving person, but if you are mean you won’t open the next preschool.
Cleaning Staff
You will be dealing with infants and infants will pee themselves or even poop. Employ women who will help keep your school nice and clean. You want parents to be confident in your sanitation that their child won’t catch a disease from another kid because of poor hygiene issues or that their child won’t be left in pee all day until they get home. Add extra service and clean the baby’s for your customers, you will see how they will appreciate by having more children to come to your school through referrals.
Extra value: Make a Facebook page where you go live at times when teaching the children or when it's lunch break. Parents will log in and they will be happy to see their child happy.
COST OF CAPITAL
Fixtures And Fittings
ü You will need to have things set up like a whiteboard, not a chalkboard.
ü You will need to set up a playground where kids can play
Furniture
ü You will need small chairs for the baby’s to sit on
ü You will need to invest in learning books
ü You will need colouring books, crayons etc
ü You will need to buy toys like dolls and cars (big ones so kids don’t swallow.) Just remember to take account of the safety of the children whenever you do something
Cash Flow Management
As a teacher, you probably don’t know much about cash flow management. This is a critical component of your business as your business only gets money every 3 months. How you manage your finances becomes critical. Fixed costs such as salaries and rent should be paid for in advance. Salaries can be put on standing order where the bank makes these payments for you. Pay your fixed costs first before buying a Ferrari and proper projections if costs will be critical. Remember even your personal expenses are a cost to the business, if you buy a hunters gold six-pack on weekend it's a cost to the business so pay particular attention to this area.