Thinking of starting a school but don’t have capital? Then this video is for you! watch this video where Mr. Amol Arora, MD- Shemrock & Shemford Group of School explains the three effective and feasible ways to open a school without investment.
This question is from Shashi Bhushan who has asked that I only have a land, I don’t have an investment. I want to open a school, but what can I do? Shashi unfortunately, as you may have seen in my previous videos as well opening a school is capital intensive. If you don’t have at least 1 crore in your pocket, you cannot open a 10+2 school – a good school. I mean you can open a school in your courtyard and just you can get children like that but chance of a good school is less likely. So what options do you have? A- Either you can sell off a part of a land, get the capital and then build a school if that’s possible, which most people don’t like to do. B- You can go for something like a preschool or a primary school where between 8 – 10 lakh or for 5 lakh rupees also, we can set up a play school that’s one option if you’re really passionate about opening a school. C –third option will be – find a partner. There are investors on board. Don’t go for a loan. If you don’t have any money at all, you get stuck after one because a school will not be able to cover its expenses in the first 2-3 years in most cases. Sometimes, it does but normally it will not so don’t try that. If you do wish to open a school, find an investor with a partner who can invest with you. And also when you are entering into partnership, think about what if different scenarios happen. What if admissions don’t happen as per plans then will the investor put in more money or what will happen or will you both invest half and half in that? Because in all kind of scenarios admissions are not directly under your control. It depends on the parents in that area, depends on competition and what you are offering so you should decide about the various scenarios that may happen. If you’re finding investors on board with you and then in different cases what will happen. Because when you get a partner on board and if you’re making a partner in the land as well as maybe a family owned land, you don’t want – you know spoil the whole – make a mess out of it. So, be careful how you’re structuring it. Get good advisors for yourself on how to do it. So, one thing – if my state manager can help you as well, just go online and search for Shemrock franchise – S H E M R O C K and franchise . Just fill up the form and my manager will get in touch with you or maybe we can also guide you a bit on that. But otherwise ask a good CA, ask any good lawyer and they should have to structure this whole deal for you. But first step is of course – to find an investor for that. So, I hope that answers that question Shashi and good luck in your school project!!