EROCON

Feasibility Study and Project planning for setting up of a school venture.

Feasibility Study and Project planning for setting up of a school venture.

Feasibility Study and Project planning for setting up of a school venture.

Market Potential & Viability for new schools in India

When we talk about undertaking a feasibility study for a school project, it is very different from how feasibility studies are done for other projects such as industrial,hotels, etc., as the feasibility study is done to gauge whether the venture could be set up at the location or not. In the case of a school project, the feasibility is always determined in terms of the type of school to be introduced at a particular location and the right budget to start with. Arriving at the right budget depends on an assessment of the volume addition trend, demand, and fee potential of the area. As per the Erocon Four Dot Theory on School Feasibility, it says that four important factors that determine the feasibility of a new school project are location, demand, fee potential  and financial viability.

feasibility study for a school project

The vital questions which get answered through a feasibility study for school are

  • What is the catchment area from which the students are to be pulled while planning to set up a new school?
  • What is the market segment for which the new school is being introduced?
  • The pay capacity of the market segment is in line with the spending mentality of the market segment towards education.
  • Determination of the level of exposure of the market segment in terms of facilities being provided by the existing competitors catering to our target market segment.
  • Detailed competitor analysis and understanding the mindset of the market dynamics
  • What shall be your school’s concept note, market entry strategy, facility plan, and USP creation?
  • Projected potential and volume addition trend of the target market
  • What should be the project budget?
  • What shall be the right direction and approach for the investment of funds to get the desired outcome?

What are the steps involved in a feasibility study for schools?

Step 1: GAP analysis and demand assessment during a school feasibility study

Step 2: On the basis of the gap analysis done in the school feasibility study, connect the four dots of location, demand, fee potential, and financial viability.

Step 3: Finalisation of the Brand Position Plan and Market Entry Strategy After Analysing the Competitors' Data in a School Feasibility Study

Step 4: Based on the survey inputs from the school feasibility study, plan the school infrastructure and facilities with the right balance of fee versus facility offering.

Step 5: Forecast on the Project Cost, Operational Break-even, and ROI Analysis: Post-School Feasibility Study

The success and sustenance of new school projects in India depend on word of mouth in the market and following the fundamentals of Erocon Four Dot Theory. A positive word of mouth could only be created when you continuously work towards the formation of positive feedback in the market in terms of the facilities being provided, the implementation of the curriculum as planned, school academic progress, the development of the students, and the results. But again, first-year admissions in a new school project are heavily dependent on the infrastructure that you develop, and hence whatever is constructed should project the complete concept as planned. So as a promoter, a definite and detailed project plan is required to determine the utilisation of funds in all directions to come up with a balanced product for the market and accordingly establish the foundation of a successful venture.

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