Do you want to start a private school business and want to know the cost breakdown? If YES, here are 15 factors that determine how much it cost to open a private school. If you intend to start your own private school, it will be in your best interest to conduct a detailed cost analysis first before officially launching the business.
The truth is that if you are able to conduct a detailed cost analysis before starting your private school, you will have a good idea of how much it will cost you to start and run the business. It makes it easier for you to raise the estimate of the start-up capital because you already know beforehand the required start-up capital.
When you carry out cost analysis before starting your private school, you will have an idea of the gains of starting the business, the risks you will be exposed to and the potential challenges that you will encounter. For instance; the basic things needed to operate a private school could range from getting a license to even getting certification. Some countries consider these as the basics, whilst in some other countries you could get a waiver for them if you are able to meet other criteria.
In starting a private school, you will be expected to have a standard facility with the required ambiance for learning, computers and learning aids, boards, labs, library, flat screen TVs and DVD players, projectors, tables and chairs, first aid kits et al and they are same prices in any of the countries listed above, especially when bench–marked against the US Dollars.
Other factors that may be slightly different in terms of costing when it comes to starting a standard private school business in any of the countries listed above are cost of labor, cost of transportation and logistics, local tax, insurance policies, branding and promotion, business incorporation fee, permits and license, rent/leasing amongst other factors.
Over and above, when it comes to starting a medium scale private school business, you should be prepared to either rent or lease a standard facility designated for such business; this is going to be one of the areas where you are expected to spend the bulk of your start–up capital.
Estimated Cost Breakdown for Starting a Private School in 2022
These are the key expenses you are expected to make when starting a medium scale but standard private school business in the united states of America;
- The total fee for registering the school/business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
- Marketing promotion expenses for the grand opening of the private school in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant (including writing business plan) – $2,500.
- The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
- The cost for leasing a standard facility in good, centralized and serene location – $350,000
- The cost for remodeling the facility/class room and administrative offices – $150,000.
- Other start-up expenses including stationery ($500) and phone and utility (gas, sewer, water and electric) deposits – ($6,500).
- The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory and equipment (Stocking with makers, pens, crayons, toiletries, books et al) – $50,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs: $5,500
- The cost for the purchase of furniture and gadgets (computers and learning aids, boards, labs, library, flat screen TVs and DVD players, projectors, tables and chairs, first aid kits, telephone, fax machine, and printing machines et al) – $150,000.
- The cost for building and hosting a website – $600
- The cost for opening party – $8,000
- Miscellaneous – $10,000
You will need an estimate of one million Dollars ($1 million) to successfully set up a medium scale but standard private school in the United States of America. Please note that this amount includes the salaries of all the staff/teachers for the first 3 months of operation and a private school with the potential of owning more than one school facility in key locations within same region.
Starting a small scale but standard private school business that can only accommodate a minimal number of children per–time in just one location in the United States of America will cost about three hundred thousand dollars to five hundred thousand dollars ($300,000 to $500,000).
When it comes to starting a standard and large-scale private school with several facilities in key cities in the United States of America, a private school that can accommodate students from kindergarten to high school level and a private school with the intention of selling franchise, then you should look towards budgeting well over three million, five hundred thousand dollars ($3.5 million).
Table of Content
- How Much Does It Cost to Buy a Private School Franchise?
- The Type of Private School
- The Choice of Location
- The Required Licenses and Permits
- The Type of Facility
- Additional Service Offerings
- The Number of Students They Want to Admit
- The Cost of Hiring and Paying a Business Consultant and Attorney
- The Cost for Branding, Promotion and Marketing of the Private School
- The Cost for Furnishing and Equipping the School
- The Cost for Insurance
- The Cost for Registering the Business
- Source of Your Supplies and Ongoing Expenses
- Cost of Recruiting and Training Your Staff
- The Cost for the Purchase and Customizing of Uniforms for Your Employees
- The Cost of Grand Opening of the Private School
How Much Does It Cost to Buy a Private School Franchise?
In the United States of America, the Average Cost of Purchasing a Private School Franchise is $50,000. Examples of 3 Well – Known Private School Franchising Companies in the United States of America are;
- America International Schools Franchise
- Omega Learning Centers
- Cresco Montessori School
Having said that, here are some of the general factors that will influence the cost of opening a private school in the United States of America;
15 Factors That Determine the Cost of Opening a Private School Business
The Type of Private School
A major factor that will determine the overall cost of opening a private school in the United States of America is the type of private school in question. There are different types private schools especially as it relates to the age group the school is supposed to carter for.
The Private Schools industry comprises of primary, that is kindergarten through sixth grade, and secondary, that is seventh through 12th grade. These educational institutions are predominantly funded through enrollment and tuition fees from students. We also have different categories such as independent school and private school.
All independent schools are private schools, these terms are often used interchangeably, but technically independent schools are all overseen by a board of governors or trustees, whilst other private schools may be run by their owner with no governing body. They also come with different cost implications when starting the business.
The Choice of Location
Another major factor that will determine the cost of opening a private school in the United States of America is the location. In business, location is key part of what determines the success of the business. There are business consultants cum realtors who are specialized in helping people choose an ideal location for their type of business; a location that will guarantee them to profitability. So, you will agree that location can influence the cost of starting a private school business.
For example, renting or leasing a private school facility in a location that is off the city center or off residential estate will be less expensive when compared to renting or leasing a private school facility in a well – populated growing residential estate; a location in a metropolitan city with the right demographic composition of children and parents who can afford to pay for your services.
The Required Licenses and Permits
In the United States of America, you cannot open a private school without first applying for the mandatory licenses and permits. Of course, you would need accreditation certificate, building license, zonal permits, and signage permits amongst others.
These licenses and permits cost money and it will influence the overall cost of opening a private school in the United States of America. Please note that there may be several inspections you must pass before you can be issued your permits and this will also cost you money.
In order to get the overall cost of licensing and permits associated with opening a new private school in the United States, we will advise that you reach out to your city government to find out what you need for your private school. You also need to consider state and federal requirements.
The Type of Facility
The type of facility you want to run your private school business from is also a major factor that will determine the overall cost of opening a private school business in the United States of America. You have the option of renting, leasing or constructing your own private school facility from the scratch.
With renting and leasing, you might just have to spend extra to modify the facility to fit into what you have in mind and the number of offices, waiting room, assembly hall, playing space, dining halls and classrooms you want to have in your private school facility, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. Let us assume that you want to construct your private school facility from the scratch.
It means that you will buy the land or a property, construct and equip the facility to fit into the ideal picture you have in mind. You will agree that you are going to spend way more when compared to people that rent or lease a facility. This indeed will greatly influence the overall cost of opening your private school.
Additional Service Offerings
Another key factor that will determine the cost of opening and operating a private school in the United States of America is of course, the additional services offerings of the private school. The fact that there are different types of private schools means that these schools are designed to offer different services.
By default, private schools are funded in whole or in part by charging their students tuition fees, rather than relying on mandatory taxation through public (government) funding.
But some private schools have structures in place that offer scholarships to some students, which makes the cost cheaper, depending on a talent, such as sport scholarship, art scholarship, academic scholarship, etc. In essence, some of the services you are going to be offering will cost you more hence you must increase your budget.
The Number of Students They Want to Admit
Another very important factor that determine the cost of opening a private school in the United States of America is the number of students they intend accommodating or admitting per time. No doubt, there are standard private schools that have the capacity to accommodate over 100 students per time and there are private schools that can only accommodate less than 100 students per time.
Aside from the cost of renting or leasing the facility, it will also cost you more to furnish the school, and the more the number of students you accommodate, the more the money that you are expected to spend to set up and run the private school.
The Cost of Hiring and Paying a Business Consultant and Attorney
If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan, a marketing plan and strategy, comprehensive SWOT analysis for the business, and other advisory services.
So also, an attorney will help you with registering the business, drafting contract documents and offer you all the legal expertise that will help you start the business on the right foundation. These services will cost you money and it will indeed influence the overall cost of opening a private school in the United States of America.
The Cost for Branding, Promotion and Marketing of the Private School
The cost for branding, promoting and marketing the private school is yet another key factor that will determine the overall cost of opening a private school in the United States of America. Trust me, if you need results, then you must be willing to pay for effective branding, promotion and marketing of your new private school.
As a matter of fact, it is not cheap to come by an expert that will help you compete with brands that are already determining the market direction of the private schools industry in your city. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your private school.
The Cost for Furnishing and Equipping the School
Another very important factor that will determine the cost of opening a private school is of course, the cost for furnishing and equipping the facility. You will quite agree that aside from the basic facilities that are expected to be found in a private school, an investor may decide to spend more than expected to furnish and equip the facility to look unique.
Before you can open a private school, you should budget for school chairs and tables, projectors, flat screen TVs, sound system, DVD players, Satellite dish and decoder, office furniture (table, stools and sofas), drawers and cabinets, telephones, filing cabinets, educational resources, office equipment (cash register, security and fire alarm and protection gadgets, CCTV, ventilation, signage), and sports equipment amongst others. All these will cost money and it will influence the overall cost of opening your private school.
The Cost for Insurance
Paying for insurance cover is yet another important factor that will determine the overall cost of opening a private school in the United States of America. In the United States, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy and perhaps consult an insurance broker to guide you in choosing the best and most appropriate policies for your own private school business.
The Cost for Registering the Business
The cost for registering the private school business is yet another cost that will influence the overall cost of opening a private school in the United States of America. Although, the cost of registering a business is affordable, but it will no doubt add to the overall cost of opening a private school in the United States of America.
Source of Your Supplies and Ongoing Expenses
Another major factor that will determine the cost of opening a private school in the United States of America is the source of your supplies such as books, stationery and educational support materials, toiletries and food supplies.
If you have access to manufacturers of the type of books, stationery, educational support materials and toiletries that you need, it will sure cut down the cost of running the private school as against buying your books, stationery and educational support materials and toiletries from retailers.
Cost of Recruiting and Training Your Staff
The fact that you are opening your private school as a new business means that you are expected to recruit and train your staff to conform to the kind of private school you want to operate. The training will help you sell the corporate culture of your organization to the new employees. It will cost you money to hire trainers that will help you train your new hires and that will add to the overall cost of opening a private school.
The Cost for the Purchase and Customizing of Uniforms for Your Employees
Another factor that will determine the overall cost of opening a private school business in the United States is the cost of the purchase and customizing of uniforms. Your security personnel are expected to all have different uniforms. All these uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a private school in the United States of America.
The Cost of Grand Opening of the Private School
No private school opens its door for business without first organizing an opening party to officially launch the business. This means that the cost of the grand opening is part of the factors that will determine the overall cost of opening your private school business.
You can choose to do a soft opening if you operating on low budget or you can choose to go for a grand opening party. The bottom line is that it is a cost that must be part of your budget and this cost will influence the overall cost of opening the private school.
These are some of the factors that will determine the overall cost of opening a private school in the United States of America. Please note that there are other factors not listed above that will sure influence the overall cost of opening your private school which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide and the overall cost of opening your private school.