Market Research & Feasibility Study to start a new school.
The Feasibility Study A project planning report for a new school project is the first step in planning to set up a new school. The feasibility study for a school covers the groundwork in terms of market research, competitor studies, catchment analysis, understanding of future developments, and master plan analysis of the location. The school project planning report also serves as a DPR for a bank loan or funding from investors and education funds.
A feasibility study for a school project is favourable, when four important dots are connected.
The Four Dot Theory
The Four Dot Theory on School Feasibility study says that four important forces that decide the fate of a new school project in India are:
Locations play a vital role in a school feasibility study. The location of a school project should be progressive and in proximity to the catchment. Repeatedly, we come across situations where there is a great demand for a good-quality school and there is no challenger or premium-quality school around the given location. But the pay capacity or fee potential of the area is not good enough to pay salaries as per the state pay scale or the central government pay scale. In such a situation, promoters often develop infrastructure as per applicable standards but are not able to pay decent salaries due to low fee affordability, which ultimately has an impact on quality standards.
A trivial situation that occurs while doing a market feasibility study for a school is when the three forces of location, demand, and pay capacity are favourable, but capital expenditure is very high. When CAPEX is on the higher side, the overall financial viability of the school project is not favourable. The cost of land and construction varies from Tier 1 to Tier 4 locations depending on the type of finishes, fee segment, and curriculum choice.
A favourable feasibility report for a school is only possible when we have all four dots interconnected to build a sustainable and profitable school.
What are the steps involved in a feasibility study for schools?
Step -1: Market Dynamics & GAP analysis during a school feasibility study
- Detailed Site & Location Assessment
- Identification of Target segment, Target catchment
- Fee potential & Pay capacity analysis
- Detailed study of feedback competitors and there fee versus facility offering
- Strength, Weakness, Threat and Opportunity (SWOT) Analysis for the Project
- Assessment of type of school as per demand of location.
Step -2: Project Recommendations post the market research & school feasibility study
- Opinion on school franchise model or self brand.
- Opinion on Board affiliation/Curriculum
- Market Entry Strategy & Brand positioning plan
- Recommended fee structure & Fee incremental Plan
- Concept note and Project USP
- Detailed Area Chart for Master Plan, Phase I & Phase-II construction
- Staffing Plan & Salary recommendations for 10 years
- Construction & Administrative Timelines
- Strategic alliances and education service partners for school project.
Step -3: Detailed Financials & Economics of the Project
- Project Capital Expense for phase wise development of the school project.
- Fee Collection & Salary Expenses,
- Detailed Profit and Loss Account & ROI Analysis over a period of 10 years
How much time is required to prepare a Detailed Project Report (DPR) for school or a DPR for a bank loan?
From the date of payment, it takes 10 working days to schedule the survey. The Erocon team does extensive research before the survey and sets a plan of action for survey days. From the last date of the survey, it takes about 20 working days to share the first draught of the DPR. After the discussion on the first draught, the final draught is submitted within 10 working days (subject to client response time).
Why is Feasibility study for school so important before starting a new school project in India?
Feasibility study is the most important step before venturing into a new school project for a certain demographic, a promoter should have clarity over the listed points beforehand. This feasibility study brings many valuable inputs as to what should be offered uniquely considering the prevailing competitive market.
- A report over the existing benchmark set by the competition schools in terms of academics and facilities
- Acceptability and openness of the parents if they are ready to accept innovation through a new proposed school
- A thorough study of the existing student volume trend
- Assessment of the existing paying capacity of the market in a demographic
- Assessment of the paying culture of a location
- Valuable inputs for the USPs of the school
- A survey of the quality of staff available in the given demographics and a workable pay scale for the teachers
- Strategic planning for marketing and branding positioning in sync with the existing competition
- Unique programmatic and co-curricular offerings to sweep the competitive market through a new school venture
- Deep understanding of the admission process and handling of the competitors
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Erocon’s experience in the K-12 education sector is superior to that of most other advisory firms in India. Their understanding of drivers, barriers and key issues in this business is excellent. Their advisory team worked with passion & dedication to help our management find solutions to our needs.
EROCON team is pioneer in advising and consulting for K12 Schools. Specially providing all related services under one roof. We are impressed by their knowledge of the subject and concept of educational project. Their team work as well as commitments are unmatchable. our association will go for long.
Erocon has played a vital role from the initial phase of planning this school. Planning and school set up services has been very prompt. Their team is very professional and systematic. Kudos to their expert Branding team. Looking forward to a long relationship with Erocon.
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EROCON carried out feasibility study for new residential school project at Udaipur. The work was done professionally and delivered on time. Attention to detail in preparation of report is praiseworthy and they know their subject very well . Keep up your good work.
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Having EROCON as consultants has been the best decisions I have made when the concept of starting a school evolved in my mind. They have been brilliant in their planning, organization and execution to detail. Hardworking, professional and dedicated, the entire team is sheer brilliance to work with.
Erocon has terrific educational consultancy and advisory team to help our management find solutions. They have identified key issues, drivers and important resources that are required for our school. I would appreciate the entire team for their passion and dedication.
Erocon’s modules are well designed, competitively priced and value for money offering inputs much beyond contracted content.
Erocon has an expert in each portfolio- concept to affiliation and beyond. The team is efficient with remarkable response time.
We wish Erocon success in all its projects
We had approached Erocon Consultancy for our project in Gurugram. Erocon Consultancy is an epitome of high standard professional services with an effort to ensure their customers satisfaction and help them out in best possible manner. They helped us stimulate and promote our qualifications and goal
A very professional organisation. They have always valued their quality of work and delivering the work within the promised timeframe. They have been vital in setting up our school and providing us with all the necessary data as possible. Lastly, we have been more than business clients.
Erocon, our international education consultancy paves an excellent and integrated education programme each year to inculcate a international standard of education system. The consultancy played a vital role for achieving our school’s objectives and motto’s.
We feel privileged to have Erocon consultants as our advisors and the valuable information they have provided in terms of market study of Gwalior area or Meerut city has served as a useful tool for our future growth and expansion
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As a client, we really feel happy to be associated with EROCON and that we selected them to handhold our project as a consultant. We’ve been associated for almost 2 yrs now and it’s been a great & successful journey till now and we honestly feel that our relationship will last longer.
Erocon as an Organization works in a professional manner. They have been prompt in rendering their services. Our entire documentation happened in a systematic manner with regular updates and advice on the sequence of events that would follow.
My journey with Erocon has been all about learning and success.The team is very professional and positive.They make sure you follow all Govt. Of India norms in order to make sure you do not go into the wrong way of doing things.Very professional with the paper work. Instant support highly recommend.
Erocon is helping hand in CBSE Affiliation process. They make sure that everything is in place during inspection and conduct a trial before the inspection too. I am extremely satisfied with the services given by Erocon. Hats off to you and all the best for your future endeavours.
We came to know about EROCON via internet. At first, we were very skeptical. As soon as we sought their help in our School project, we found that their capacity and expertise is unquestionable the best available in the market. We highly recommend EROCON to everyone, interested in starting a school.
We are completely satisfied with the report given by Erocon. They were very professional through the project. Mr.Shiraz and Mr. Anirban were really cooperative and helpful. We will surely recommend Erocon for any related needs.
I take this opportunity to appreciate the work done by Mr.Shiraz and Mis.Marya to get our school’s affiliation done as per the cbse guidelines.Their support was really amazing. I wish for their sincere efforts in future.
We are in association with EROCON from last three years. On the basis of our experience gained during work with it we are in a position to say that it is the best service provider in India. It has experienced manpower for providing consultancy in almost all domain of school .
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Erocon not only helped the project done prior to the deadline, but to ensure the client should be satisfied with every step of the process.
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Erocon has done wonderful job for us. The Erocon team is very professional and they provided us a detailed survey & feasibility study report which consists of all the minute details but very crucial to take a call. Team is flexible, approachable and always ready to take our feedback and incorporate.
We had very engaging conversation with Erocon and they are indeed knowledgeable on the subject.
Really nice consultants with a alot a experience. Helped us in starting our school from scratch. The parts such as curriculum development, cbse affiliation, recruitment and training of staff helped the school to attain the heights.
Erocon team is thoroughly professional and reliable If you wish to establish a school in your city. Shiraz is in particular a moving encyclopedia in the field and I am yet to come across a better name with more insights in the field. I would definitely recommend them strongly .
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I approached EROCON because of their experience and feedback given by some upcoming schools. They helped us understand the various factors to set up a school. The report given was comprehensive and had a pragmatic approach to financial planning and infrastructure development.
I engaged EROCON to carry out feasibility study for new school project at Ranchi. The work was done professionally and delivered on time. The meticulous planning and attention to detail in preparation of report is praiseworthy.
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I got to know about erocon through a freind. The team was extremely professional and knowledgeable. They gave us the report as per the timelines agreed. I would highly recommend Erocon.
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Erocon shows completeness and passion in their work and professional at work. Erocon understand client perspective very fast and guide them in proper way. The DPR they provided is simply excellent,They spent only two days on our location but they gathered all information accurately. Economic report is good. Erocon is competent and provides good service for what you pay.