EROCON

Market Research & Feasibility study for a new school Project

Market Research & Feasibility study for a new school Project

Market Research & Feasibility study for a new school Project

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:

Erocon's Four Dot Theory

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.

feasibility study for a school project

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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