Preschool Startups

Preschool startups seem to be preferred route for many women wanting to become entrepreneurs. The mushrooming of schools in every street corner, especially, in major metros is an indication of its popularity. Sometimes the pre-school is also called play school, Kinder garden etc. The children in the age group of 1-4 are the targets.

"There's increasing evidence that children gain a lot from going to preschool," says Parents advisor Kathleen McCartney, PhD, Dean of Harvard Graduate School of Education. "At preschool, they become exposed to numbers, letters, and shapes. And, more important, they learn how to socialize -- get along with other children, share, contribute to circle time."..

Preschool Startups- Favorable Factors

The environment and society requirements have necessitated the concept of pre-school. Nuclear families and both working spouses with children use pre-school.

Moreover, the working parents find preschool to be a better option as they themselves are always short of time. The children get due attention from their teachers, learn different skills and are benefited by day-care facilities.  Preschools also provide day care facilities bringing in more income  with the same assets.

Preschool education in India has gained immense importance over the past five years due to increased awareness among parents. Further, increasing competition in education is prompting parents to plan their children’s future from early childhood. With double income families, this becomes affordable.

Parents enroll their kids in preschool with the belief that their child will learn and acquire skills under the supervision of trained professionals.

Preschool Startups- Why for Women?

Source-Franchise School

·         Unmatched Rapport with Children: It has been proven by research that women possess stronger soft skills and social intelligence than men. As a result of which, the bond that they can form with children with their utmost care and affection, enable them to effortlessly handle kids.

·         Parents’ Trust and Confidence: There has been an upraised awareness amongst parents about choosing the correct preschool with efficient management for their children, early on. And there is little doubt that most of them prefer women more over men, when it comes to the custody and safekeeping of their children at playschools.

Preschool Startups- Market Opportunities

The preschool segment of the Indian education industry is dominated by unorganized sector. The organized sector comprises 17 percent of the industry, with the penetration rate expected to rise to 25 percent due to the rapid growth of preschools in Tier-III and Tier-IV cities. The market is estimated to be around $ 1-1.5 billion.

This segment has enjoyed some major investments thanks to a limited regulatory framework and minimal infrastructure required to setup a preschool.

The demand for the preschools is growing considerably in the smaller towns and cities.

Given the importance of education in Indian Societies it is not just the middle class or upper middle class but even the lower income group find preschools a great boon. In some families the wives’ salaries are earmarked for the children’s education whereas the husbands’ are for the living expenses.

Preschool Startups- Legal  Requirements

 The schools require approval from local authorities like block education officer. The organization will also be required to comply with labour laws like PF/ Minimum wages etc. If run as a partnership firm, partnership deed needs to be done.

Preschool Startups- Own or Franchising

The preschool fees ranges from INR 30000 to 2 lakhs per annum.

There are two options available to setup a preschool- Own School or Franchising

Franchising

Right after food & beverage, the hottest and happening franchise business sector in India is, probably, education. Most of the play school franchises require investments between INR 800- 1000K, the area requirement is also between 1000-2000 square feet.

Five most profitable play school franchises in India  ( Source startingfranchise.in)

1.   Kidzee: India's number one preschool franchise chain

2.   Tree House: India's fastest emerging play school franchise

3.   Hello Kids: The NO Royalty preschool franchise chain of India

4.   Shemrock: India's first preschool chain franchise

5. Eurokids Preschool

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Preschool Startups- Experience Sharing of both models

Own School

  Ms Lata Krishna Mohan -A woman entrepreneur with 4+ years   in Preschool recounts her experience

1.Origin of Idea -  I was running an After school activity center teaching English (Phonic program), as a natural progression and to utilize the space in an optimum way, I thought of the preschool. 

2 Reason for location - The preschool is very easy to locate and reach. It is right at the center of R.T.Nagar, Bangalore.I wanted a location which is not on the main road but one lane inside, as it would not have a traffic problem, yet easy to locate. 

3. Marketing Strategy -  both online and offline marketing is being done. 

4. Key Challenges: Intense Competition due to low entry barriers. 

5. Tips for a startup in preschool business - Care should be taken to provide quality education, have quality teachers and good ambiance. Personal attention is the USP. 

6.Plan for franchising the business (Will it happen in the next 1-2 years) . Next year I might be able to start the franchising business.

 

Franchisee Model- 7+years - Sridevi Kalyan 

1.Origin of Idea -  Kids are a wonderful creation of God. They are blissful & so giving. They spread a lot of happiness, joy & love to everyone. They have no expectations, no conditions.  There is a child hidden in all of us, but we pretend to be adults. Basically, love for kids, passion & flair for teaching, gave me the idea to start my school  

2 Reason for location -Malleshwaram- Bangalore is an area with mixed culture, it has both nuclear & joint families. There are lot of values & culture learnt from the kids & taught by our teachers to the kids 

3. Initial investment in Rupees- 18 Lakhs, including 7 lakhs advance, 3 Lakhs brand fee 

4. Experience with Franchisor - They are very supportive when it comes to curriculum quires, supervision. At most care is taken for teachers training. 

5. Marketing Strategy -We believe parents are our ambassadors. We used to do marketing four times in a year. but from the last two years we have done it only twice as the need has never arisen. 

6. No. of Children - 54 preschool & 16 daycare 

7. Key Challenges - Parents need to still be aware of why we do what we do.  Preschool culture needs to be respected. The van drivers are not respected, van fees not paid regularly. Few parents need to be constantly reminded about the payment of fees  

8. Tips for a startup in preschool business - Always have a firsthand experience. Work on a budget. Have a target on number of kids, & work towards it 

9.Feedback from parents - Parents are very happy with our school.  Always regarded as one of the best schools by H.O & parents. 

10. Any registration// legal requirement -Registration done only with H.O, the rest is taken care of by them 

11. Expansion Plan – Planning to add one more location to the current two locations.

Preschool Startups- Conclusion

The preschool business is highly competitive. The investment required is moderate. The growth rates and margins are attractive. This is an attractive option for a startup business by women entrepreneurs

Well established franchisors are available which minimizes the risks and  reduces the lead time to set up.

"But my child is so small!" Yes, they're still wee tykes, but a high-quality preschool is designed to set up young scholars up for future academic, emotional, and social success.- GreatSchools Staff