Market Potential & Viability for new schools in India
When we talk about undertaking feasibility study for a school project, it is very different than how feasibility studies are for other projects such as industrial projects, factory set ups, hotels etc as the feasibility is done to gauge whether the venture could be set up at the location or not. In India, in case of a school project, the feasibility is always in terms of kind of school to be introduced at a particular location and right budget to start. Arriving at a right budget is upon assessment of Volume addition trend prevailing in that area. The volume addition trend will be the guiding number in determining the project size.
Second important aspect is assessment of cost of land versus Investment in the project ,therefore a detailed project report for a school project will help you in understanding not just the market dynamics but will also set the right investment size at a particular location.
The vital questions which get answered through a feasibility study is
- What is the catchment area from where the students are to be pulled?
- What is the market segment for which the school is being introduced?
- The pay capacity of the market segment long 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, 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 investment of funds to get the desired outcome
When you are able to answer the above questions, then are you able to work out on the finer details of the venture plan.
As a promoter, it is very important for you to understand the required investments to be made. When we talk here about required investments, it is about the effective utilization of the available budget to create the best outcome which is balanced in terms of being a complete product offering to the market. The success and sustenance of school project depends on the word of mouth in the market. A positive word of mouth could only be created when you continuously work towards formation of a positive feedback in the market in terms of the facilities being provided, implementation of curriculum as planned, school academic progress, the development of the students and on the results. But again, first year admissions are heavily dependent on the infrastructure that you develop and hence whatever constructed should project the complete concept as planned. So as a promoter, a definite and detailed project planning is required determining the utilization of funds in what all directions to come up with a balanced product for the market and accordingly establish the foundation of a successful venture.
Erocon, the best consultants in the country and having done feasibility study and planning for over 200 school ventures, generally segregate their report into volumes.
Volume I deals with the Recommendations of the project. Post our research and survey team visit the site and work out gathering all possible inputs to analyse the data and accordingly conclude our recommendation on the kind of venture to set up at the given location along with detailed concept note, market entry strategy, USP creation, recommended fee structure, projected volume addition trend for next 10 years, associated and phase wise infrastructural plan.
It is extremely important for the clients to understand in terms of what they are required to construct in the first year determining their exact investment in terms of development of the infrastructure along with keeping provision for 1st year of working capital expenses. All of it is dependent on the volume addition trend of the location and the market, age group of students expected to be added on to thereby determining the necessary facilities to be provided in the initial years of school operations and infrastructural plan along with HR plan for 10 years as prepared by Erocon is in line with the occupancy in school as expected and projected post detailed market study thereby safe guarding clients from over spending on development of unnecessary infrastructure.
Erocon develops a model where the promoters are required to invest for the Year 1 development of the school post which all the phase wise expansions are carried out over a horizon of 10 years and are funded through the school income surplus thereby developing a self sustainable growth model while making sure that our clients do not have to spend for the future expansions.
Post approval of clients on Erocon’s Recommendation of the project, Volume 2 is worked, which is the economics of the project. Under this volume, detailed costing is worked for the school as accepted and approved by clients. Here the year 1 detailed expenses and investment amounts are worked out along with recommended free structure for all classes as planned for next 10 years adjusting for inflation’s. Based on the fee structure, we work out on the account receivables. The expenses are worked out in terms of what all facilities as planned for school and when to make them operational and on the HR Plan as prepared determining the Pre and Post Operational Cost.
Erocon works out on the Loan repayment schedule and accordingly on the detailed Profit and Loss Account for next 10 years taking into account the phase wise expansion plan expenses and loan repayment amount. The profit and loss account are accordingly adjusted after accounting in for all factors as planned for the school over a 10 year horizon thereby giving our clients the reflection for the performance of the school for next 10 years.
Detailed Project Planning report post a feasibility study and market survey by Erocon helps promoters and clients understand on the market dynamics of the location where they could be planning to start a school venture. As already mentioned and as you would have figured out, it is very important to invest your energies and funding into the right direction while determining the type of school workable at the given location or else the promoters would always remain directionless and not know what to do to with the venture.
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.
I’m glad to meet such a dedicated team. There knowledge in the educational industry is thorough. They are precise and quick in their research. There solutions are backed up with facts. I would like to mention specifically about Mr. Shiraz. A trust worthy person who works with a smile. Great team!
A thorough professional and committed organization, Erocon took off all our burden onto their shoulders. I personally experienced their diverse knowledge and expertise in education domain. Prompt in communication synced with our team they always updated us about latest govt policies regulations.
We read about Erocon thru online search as top school set up consultants in India. So we called them with high hopes and have been really happy with their support and guidance. Shiraz from Erocon is really supportive and has provided many practical inputs as we are going ahead with our first school.
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.
Thank a lot for your affiliation advisory services People are so confident ,friendly and responds promptly. Erocon team first understands exact status by way of audit and then suggest the course of action.Especially the confidence just before and during CBSE inspection keeps the client away from pressure. Good job ?
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
We appreciate their effort & look forward to work with them regularly.
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 .
Timely delivery. Co-operative people. Have assisted in every minute tasks. Happy with their services.
Best service with full support
These guys are very professional and they have very good services ?
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.
I truly appreciate Erocon’s contribution!
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 .
Experienced, professional, know there work,punctual.
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.
Erocon is a professional organization having thorough knowledge about Indian school business provides in-depth analytical information and realistic bluprint for the client. Strict timelines and yet no compromise on deliverables.
Very much professional, punctual, Shows there results on time. We got many things from Erocon.
Work done with professional approach and time frame..
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.
Erocon was very knowledgeable about the industry and its market. They were able to give us several valuable insights and metrics about it. Their report was very well structured and detailed. They competently went about gathering market intelligence and kept timelines. A very professional job.
We are satisfied with team Erocon ,and their professional approach to advise relating to transfer of recognition from local SSC board to CBSE board.
“Erocon Consultancy has been of immense help since day one when I began chalking out my venture. Their services have been prompt and have the ability to look into intricate details. The team has been very courteous and supportive…highly experienced and knowledgeable.
Extremely satisfied with their services.”
“We had approached EROCON for our school project in a bangalore. The team gave us a detailed insight into the market a very organised report on the running of the school. This has helped us prepare ourself for the upcoming project and serve as a guiding mechanism. Special thanks to team Erocon….
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.