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Business in education
High competition in the labor market encourages people to look for educational programs that will allow them to remain in demand as specialists and find work on more favorable terms.
In recent years, a large number of new teaching methods have appeared and are just being introduced into practice. Modern teaching methods are extremely rare in general education institutions. Therefore, more and more people are turning to private schools, training schools and other educational centers, and the percentage of adults who want to learn how to study correctly is increasing.
The following figures speak in favor of the profitability of business in the educational sector:
- payback within 0.5 – 1 year;
- profitability up to 30%;
- minimum starting capital – from $10 thousand.
Parents are willing to invest a lot of money and time in the education of preschool and school-aged children with the hope that this will help their children become successful in the future.
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Courses are no less in demand among adults who want to catch up and simply improve their skills and gain new knowledge to get a better job and self-development.
Among the most popular educational programs are the following:
- methods for optimizing work with information;
- development of attention and memory, speed reading;
- learning foreign languages.
The lion's share of the success of the educational center is the teaching staff. Students are attracted by exclusive, innovative methods, the latest educational programs, including highly specialized ones, for example, for marketers, PR specialists or managers from recognized experts in this field.
There are different ways to develop an educational center. You can start by teaching a single original course, for example, speed reading courses with the possibility of individual training.
Courses that teach mnemonics or techniques for effectively memorizing information are popular, because a maximum of 10% of information is stored in long-term memory. In conditions of a huge information flow, which the human brain does not have time to cope with, educational courses teach how to structure and remember the necessary information.
On video: Ways to promote an educational business
Another profitable field for activity is personal growth and development training. To conduct such classes, you need to find a qualified psychologist or coach. The purpose of such classes is to determine the purpose in life, awareness of one’s own capabilities, self-development and search for a way out of a particular life situation.
Another direction for the center is specialization in certain educational disciplines, retraining of personnel in a certain field, training courses in the latest specialties. Such educational programs are popular not only among individuals. It makes sense to enter into long-term contracts for training and retraining of personnel of large enterprises and companies, with employment centers.
On video: Child Development Center from scratch
Registration of business in education
From September 1, 2013, educational activities can be carried out not only by non-profit organizations, but also by commercial ones (CJSC, LLC, OJSC) on the basis of a license. Educational activities are subject to licensing in accordance with Art. 21. Federal Law No. 273-F3 of December 29, 2012 (as amended on July 3, 2016, as amended on December 19, 2016) “On Education in the Russian Federation.”
To obtain a license you must provide the following package of documents:
- a statement listing all planned educational programs;
- information about the premises in which the educational center will be located;
- information about the teaching staff;
- expected number of listeners;
- information on the availability of material and technical base, equipment with specialized literature;
- other information: registration, founders, etc.
The educational center is registered as a non-state educational institution or abbreviated as NOU . Taxation is 6% of income. After receiving a license, the educational center, like other legal entities, must undergo state registration.
To simplify the registration procedure and reduce costs at the initial stage, it is worth deciding on the focus of the educational center. In the future, this will help to develop your own original concept of an educational center to increase your competitiveness.
Description
So, in order to study the features of this business, let’s consider the main stages and key points. We will describe the types of training centers and provide criteria for successful earnings. We will also make approximate financial calculations of all expenses and income.
Almost every modern person at different ages thinks about the need to attend various educational institutions. This is due to many reasons that are especially familiar to the residents of our country. Often the need for education is associated with obtaining a new specialty for the purpose of further employment. In addition, many people want to study this or that area for their own development and to obtain newer information that will allow them to look at the world in a new way. It is no secret that standard education sometimes simply does not provide all the necessary skills or knowledge. As a result, a person has to use the services of a variety of training centers offering high-quality educational services in one or another area of activity.
By improving their own qualifications and improving various skills, people discover new horizons for themselves and gain new opportunities for earning money. It is natural that quality education is rightfully considered a good investment in a prosperous future and financial stability. Having a coveted certificate or diploma is a very big plus in any person’s track record, because it, at a minimum, speaks of his comprehensive development and earns the respect of others. The presence of such documents in the hands of an entrepreneur develops customer loyalty and, as a result, allows for larger transactions. In fact, when working with tenders this can sometimes play a key role.
Of course, the number of training centers in Russia is constantly growing, but in general this market is quite free. Even in the largest cities there are very few such institutions. It is important to understand that most of them offer a variety of services, which allows the client to choose one or several areas to develop. Naturally, many clients come to study again to improve their qualifications or, for example, to obtain another specialty. Given such a high demand, many entrepreneurs are naturally thinking about the possibility of opening their own training center.
At the moment, training centers offering short-term educational courses are considered the most profitable, since in a short period of time each person can obtain all the necessary skills and knowledge that will be useful in the process of work. Based on this, we will consider opening an appropriate training center.
Concept Summary
In the domestic market of educational services, the most popular are short-term training courses and institutions working with children. Their main difference is the concentration of activities on certain educational and developmental areas that form specific knowledge and certain skills. As a rule, such forms have strictly established deadlines for preparation and/or are designed for a specific target audience (age, professional, demographic). If the business is successfully promoted, it can become a completely viable project and bring in good profits. Example: an educational center for 200-250 people with an investment of 600-650 thousand rubles can provide a profitability of 35% with a time to reach the payback point in 6-12 months.
To open a modern and sought-after educational center, it is necessary to think through many components of this business. For example, it is necessary to decide on the teaching staff and channels for attracting students. In particular, training centers opened at companies as additional divisions for accelerated training and improving the professionalism of their staff have proven themselves well.
Centers operating at higher and secondary specialized educational institutions are also highly profitable. The possibility of renting already equipped premises from them will significantly reduce the costs of implementing the project.
Regardless of which direction of educational activity is chosen, it should be noted that this activity is licensed. As a rule, the most convenient organizational and legal form of this business is the registration of a non-state educational institution operating under the simplified tax system (6%).
Advantages and disadvantages
Like any other business, this area of entrepreneurial activity has its pros and cons. In this regard, before starting work, it is recommended to carefully study all the features of the training center, so as not to encounter serious mistakes and not lose profit. The positive aspects of this business include:
- high level of profitability, which can sometimes reach up to thirty percent;
- quick payback period, since with proper organization and management of business, you can count on a return on all invested funds literally after six months of successful work;
- high demand for services, and the demand increases every year, therefore, if the level of courses provided is high, and the teachers are experienced and highly qualified, the training center will always be filled with clients;
- the initial investment is low, so even a novice businessman who does not have significant capital can engage in this activity;
- the ability to quickly reorient activities, since with the availability of training programs and well-established work, new directions for training can be successfully opened at any time.
The disadvantages of this work include the fact that you will have to look for reliable and highly qualified specialists. Company employees must have the necessary knowledge, since they will be required to provide quality training. To attract excellent teachers, high salaries are set for them, but this is not always possible in the first stages of a new training center.
Depending on the number of potential clients, the cost of educational services can be quite low. For example, prices can be low in small cities, but in cities with a population of over a million they can be relatively high. At the same time, it is necessary to take into account the presence of competition so that they are not within walking distance and do not provide similar services.
Like many other types of business, the performance of the training center is directly affected by financial crises and the unstable situation in the country - this is due to the fact that with lower wages and increased prices, people will spend money only on essential things.
Of course, it is necessary to provide here for the possibility of additional investments that may be required in the course of further work. Moreover, it will no longer be possible to simply close the training center, because people usually pay for training in advance (by the way, it is possible to provide for payment in installments, if necessary). That is, you need to understand that a sudden suspension of such a business can lead to serious problems. So it is imperative to foresee how and in what manner the closure of the training center will be possible, so that you can insure yourself in advance.
Financial model of an educational center in a business plan
To create a financial model, you will need to make a forecast of the main performance indicators of an educational organization in a business plan .
Current costs of an educational institution in a business plan
- Rent – xxx rub.;
- Utilities – xxx;
- Staff salaries – xxx;
- Update of educational programs and materials – xxx;
- Marketing and advertising – xxx;
- Tax deductions – xxx.
The total amount required for the normal functioning of the educational center will be in the business plan from xxx rub. monthly.
Personnel plan for an educational center business plan
The business plan must provide for salary costs for the following positions in the educational organization:
- Director;
- Administrator;
- Accountant;
- Marketer;
- Account Manager;
- Teachers;
- Security guard;
- Cleaning woman.
Income of the educational center in the business plan
Revenue generated by charging fees for the provision of services will range from xxx rub. per month. In this case, the profit of the educational institution, calculated in the business plan, can reach up to xxx rubles. monthly.
Concept and direction of work
Before opening this institution, it is important to decide what services will be provided there, and you also need to identify the type of concept of the training center. This directly determines which workers need to be hired to provide certain educational services. In other words, you need to decide on the specializations in which the training center will operate. As statistics show, the following areas are considered the most popular today:
- courses for marketers;
- studying various accounting programs;
- courses for managers and for people of other professions (it is possible to study highly specialized areas, for example, exclusively blue-collar professions);
- educational programs for aspiring entrepreneurs, giving them complete information about starting and running a business.
At the first stages of work, it is advisable to choose only a few of the most popular areas, which are either not provided at all by other similar organizations in the city, or these services are already provided by them, but at a fairly low level. Again, pricing matters. Perhaps it makes sense to offer more favorable prices and the shortest possible training periods. This will attract a fairly large number of potential clients to the new training center.
Once we have decided on the direction, the development of a special concept begins. The latter, in turn, must differ significantly from the operating features of the company’s main competitors, otherwise it may affect profits (we have already discussed this above). Of course, the effectiveness of its work as a whole depends on the concept of the training center. There are many different directions from which you need to choose the most suitable option:
- a full-fledged training center in which clients are offered a huge number of educational services - here they may be given the opportunity to undergo training for assistants or designers, accountants, tax agents, as well as other specialists (that is, knowledge here can be given not only to beginners, but also for clients with practical experience);
— an authorized center, which usually concentrates on studying a variety of computer programs, without which it is impossible to imagine working in a particular field of activity (1C, AutoCAD, CorelDraw and the like); — training in the form of trainings, ensuring the acquisition of not only certain knowledge, but also a positive attitude towards future activities (personal growth training, seminars on business, design and other training options); - original courses that are not offered in other similar educational institutions in a particular city, and before offering them, a market analysis should be carried out in advance to determine whether there is a need for them, since often there is no demand for specific courses at all; - conducting individual lessons in various subjects - this includes preparing schoolchildren for various exams, and it can also be working with students in a specific course in which they have problems. Of course, the choice here depends entirely on the desires and capabilities of the entrepreneur. You may want to offer some new direction - there is nothing wrong with that, however, it is important that the unique training center is in demand among the local population. As practice shows, at the initial stages of work it is better to follow proven paths, which allow us to speak almost accurately about the potential demand for a particular type of service.
Separately, we can say about the selection of suitable specialists. In fact, this question is not a problem, because higher education diplomas are not always needed to work in a private training center. Moreover, the quality of the knowledge gained is of greater importance here than just the standard “reading” of the subject, as is often the case in ordinary educational institutions. That is, the client here often wants to get exactly the result, and not just a diploma or certificate. Considering that many Russian teachers are dissatisfied with their salaries, a business owner here can offer them more favorable working conditions. In addition, if possible, you can pay teachers for overtime, as well as introduce additional classes for everyone. Thus, there are quite wide opportunities for earning money here, so they can be used to their full extent.
Analysis of the educational services market in a business plan
Competition in this market is high, but every year new directions are developed, new training programs appear, which allows the entrepreneur to occupy his niche.
To do this, at the planning stage, it is necessary to analyze both consumers and competitors of the educational center as part of a business plan , as well as study the main development trends and innovative approaches to training.
Among the main competitors are the following:
- Similar specialized and multidisciplinary schools;
- Private trainers and teachers;
- Online schools and courses.
In order to ensure a constant flow of customers, it is important to formulate your competitive advantages, which include:
- Flexible pricing policy;
- Availability of qualified teachers;
- Unique and effective programs;
- Individual approach;
- Convenient location;
- Possibility to choose a convenient time, etc.
Business direction in training is one of the most popular today. A business plan for opening a business school will allow you to understand the specifics of this area and make the right decision regarding the feasibility of developing this business.
Selecting a room
It was not for nothing that we pointed out this point at the very beginning, because to register an LLC, a company requires a legal address. It should be noted that a lot of attention is paid to this point, since it is important that the premises comply with numerous conditions of current legislation. If there are four specializations, then at least four classrooms are required, respectively. Additionally, an office is created for the director and accountant. The most comfortable hall is being created. If possible, a locker room and other additional spaces can be arranged.
Actually, the choice of premises is, perhaps, even the main issue, because today educational institutions should open in the most suitable places. Probably, the optimal solution is to rent several premises in a university or school, since in this case the entire site fully complies with the conditions and requirements that apply to modern educational institutions.
What equipment is needed
The list of equipment depends on the fullness of the selected visit. Sometimes you need to purchase additional equipment in the form of a projector, computers and literature.
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How to write a business plan for a child development center
But if we are talking about bare walls, then you need to purchase furniture:
- cabinets;
- tables and chairs;
- shelves and racks.
You should not take cheap options for equipment, since uninterrupted operation of systems and equipment is necessary. Modern requirements for the educational aspect require equipping centers with high-speed Internet.
Depending on the area of activity, specialized equipment will be required, for example, headphones and equipment for foreign language classes. Sometimes you need manuals that are not publicly available and are ordered from creators in other countries.
It is necessary to equip the premises with high-speed Internet. It is also worth taking care of modern educational literature; before purchasing, you should consult with specialists.
Business registration
Having carefully prepared for the opening, you can start preparing the documents. Work is only allowed officially, so business registration must be carried out. For this purpose, a legal entity is selected, since it will be important to further obtain a license to carry out educational activities - this is only possible when registering an LLC.
It is also worth considering that when registering a business, it is indicated in OKVED that the company will act as a non-state educational institution. In fact, it is recommended to indicate this status in all further contracts with clients, so that they do not have relevant questions.
As for the taxation system, in this case the simplified tax system is chosen, in which six percent is charged on the entire income of the company. By the way, to resolve such issues, it is also recommended to employ an accountant who can work both on a permanent and temporary basis (for example, on outsourcing).
An important point in registration is obtaining a license, without which it is prohibited to provide educational services. This document can be obtained from the Special Education Committee. For this, the following papers are prepared:
- special educational programs are being developed for which training will be provided;
- a statement is created indicating the list of the above educational programs, and the document also indicates other important facts about the new educational center;
- information about staffing levels is indicated, so you will have to start looking for teachers in advance;
- the maximum number of students who will be provided with services at the training center is calculated;
- documents are provided on the ownership or lease of the premises in which the work will be carried out, and it must fully comply with numerous requirements for fire safety, lighting, sanitary conditions and other factors;
- information is provided on the availability of specialized documents and books that act as a material and technical base used in the learning process;
- other information is indicated as necessary.
The written application with other documents is considered by the Committee within one month, and during this time it is strictly prohibited to work. It is allowed to open a training center only after receiving all the necessary documentation in hand.
Legal registration of educational project activities
If you hire teachers for work and issue a certificate upon completion of training, this type of activity is subject to mandatory licensing. The costs of its registration must be included in the business plan of the educational educational center .
The appropriate license can be obtained by both a legal entity and an individual entrepreneur by contacting the territorial body of Rosobrnadzor with the following documents:
- Copies of documents confirming registration as a legal entity or individual entrepreneur and tax registration;
- Charter, order for the appointment of a director and other legal documents for legal entities;
- Documents confirming the availability of suitable premises or a lease agreement for it;
- Conclusions of the fire inspection and sanitary-epidemiological authorities on the compliance of the premises with all requirements;
- Application for a license;
- Confirmation of qualifications and work experience of hired teachers;
- Compiled educational programs;
- Receipt for payment of state duty in the amount of 7,500 rubles;
- Certificate of purchase of the necessary material and technical equipment in accordance with federal standards;
- Confirmation of availability of necessary electronic and printed resources.
As a result, a perpetual license is issued within 60 days from the date of acceptance of the full set of documents.
Personnel search
Another important point when opening a training center is the recruitment of teachers. As mentioned above, their qualifications, experience and education completely depend on the direction in which the training center itself operates. The number of teachers also directly depends on the specifics of the educational center. As a rule, at the very beginning of the activity, about four different courses are selected, for each of which one teacher is hired. With the growing demand for the institution, the number of courses, and, accordingly, hired workers, can be increased.
Additionally, the staff must have a secretary who is responsible for preparing classes and communicating with potential clients, as well as an accountant who is responsible for preparing reports and calculating taxes.
What is a modern training center
Not all people today have an idea of what a training center is.
A decade ago, such an institution was understood as a place where academic educational services were provided. In 2020, the training center is a platform for interaction between experts and knowledge seekers. Focused on conducting training and providing consulting services. There are two basic directions in modern additional education:
- personalized work with a coach;
- B2B – using the center’s capabilities to train employees.
The second option brings big profits, because due to the rapidity of changes in the world, companies are willing to pay a lot of money for staff development.
One of the important features is that professionals who need up-to-date information are ready to take part in short-term trainings. Due to the dynamics of change, they feel the need to increase knowledge, but do not have enough time to independently search for information. They are more comfortable turning to a specialist who, for money, has summarized, selected and prepared all the information.
Training centers are relevant for people whose professions become closely connected with information technology. Constant updating of systems and programs forces citizens, if they want to keep their jobs, to learn innovations. Step-by-step instructions on how to open a children's center are presented below. The number of courses is determined by the entrepreneur.
A modern training center is an institution that provides up-to-date information in a condensed form. Some of the training is provided online, as people have limited time.
Attracting clients
For a training center to generate high profits, it is important that the number of clients is large, and that the classrooms are not empty from 9:00 to 21:00. In this case, you should attract customers in different ways. For such purposes, leaflets are used that are distributed in various organizations and enterprises (possibly even specialized ones). Naturally, advertising is done on local television and their own website is created, on which each visitor can find all the information he needs about the training center.
Training of business trainers for an internal university
The step-by-step algorithm for training internal business trainers looked like this:
- we collected a list of applications for trainers (there were 63 applications, they were accepted only from employees who had worked for at least 2 years in the company, others were not even considered);
- conducted knowledge testing on products and services for applicants;
- summed up the results of the selection, “weeding out” those who did not know;
- conducted a test on communication skills and after that only 16 applicants remained;
- We conducted training on creating a training program and the creative task was to prepare a mini-training for 1 hour;
- conducted mini-trainings for focus groups;
- summed up the results of the focus group evaluation of impressions of the trainings according to 30 special criteria;
- A staff of 6 coaches and 2 assistants from the best was formed.
This multi-stage selection system made it possible to select only the most interested and loyal employees to the company. Also, a personnel reserve was formed from the remaining applicants and they will have a chance to prove themselves as coaches in the future.
Financial calculations
So, having dealt with the main organizational issues, let’s calculate the approximate costs required to start a business. To open a training center you will need 765 thousand rubles, of which:
- registering a business and obtaining a license – 40,000 rubles;
- rent of premises for a month – 55,000 rubles;
- purchase of equipment and literature for work – 350,000 rubles;
- advertising and other measures to attract customers – 30,000;
- employee salary per month – 250,000;
- other expenses (for example, repairs or purchase of additional equipment) – 40,000.
As practice shows, the total income per month when training one hundred people is approximately 500 thousand rubles. The net profit in this case is 110 thousand rubles. Thus, all investments will pay off here in about eight months of work. At the same time, if the number of students increases and the number of subjects taught increases, then the profit from the activity will naturally increase.
Algorithm for opening an educational center in a business plan
- Conducting an analysis of the industry, demand, supply, pricing procedures;
- Description of the concept of the future project;
- Determining resource needs;
- Drawing up a forecast of revenue, profit, costs and other indicators;
- Calculation of project implementation efficiency;
- Identification of risks and ways to overcome them;
- Integration into a business plan for an educational organization ;
- Business registration;
- Selection of premises, carrying out repair work;
- Search for colleagues;
- Drawing up educational programs;
- Obtaining a license;
- Carrying out marketing activities;
- Opening.
Conclusion
If you approach the issue thoroughly, then opening a training center will not be a particular problem. In addition, it can work for quite a long time. There is virtually no investment required, and the average cost of training can be quite high. Today, any sane person is ready to invest good money in their education, because without this it is impossible to imagine comprehensive development. At the same time, the training center itself can develop. As we said earlier, you can gradually introduce new directions and offer different training options to your clients. If the results are positive, the number of students will definitely grow, because here people will come based on recommendations and the entrepreneur is required to competently organize the educational process. Of course, it will be very good if you have previously worked in this field, but in general, you can successfully run such a business without any practical experience. In the end, the main work here is usually done by teachers, and a more experienced specialist can always be appointed to the position of manager.
Types of training
All organizations that conduct courses, seminars, master classes and lessons are divided into 2 types:
- with a license;
- without a license.
Both options are legal if you comply with a number of requirements for these types of activities.
Licensed schools
Such institutions provide educational services. Education, according to the law, is the transmission by the teacher and the assimilation of knowledge by the student, implying a final certification or exam. Based on the test results, the student is issued a state-issued document.
It could be:
- diploma;
- certificate;
- certificate.
A state-issued document is a document confirming the acquisition of knowledge, mastery of a profession, and assignment of qualifications. A diploma or certificate confirms that the student has education in the chosen field.
As part of schooling, classes are conducted according to a pre-designed program that has been tested by the Department of the Ministry of Education.
Without a license
Organizations that conduct courses, seminars and master classes, but do not have a license, are not engaged in educational activities, but provide services.
Such institutions do not assign qualifications, do not conduct exams and certifications based on the results of classes, and do not issue state-issued documents. In this case, services are provided in the field of training and education.
The presence or absence of an educational license does not in itself indicate low or high quality of the school or courses. In fact, in both cases there is a paid provision of services.
Using the example of a manicurist, we looked at the learning process; the same applies to other beauty masters:
Manicurist training