Do you want to start a language school and need to write a plan? If YES, here is a sample language school business plan template & FREE feasibility report. English is the official language in the United States and there are migrants and students who intend working or studying in the United States who would need to first enroll and pass through a language school before they can be fully integrated into the society, hence the viability and profitability of language schools in the United States of America.
If you want to start a language school, it would be a wrong business judgment if you decide to site the school close to an industrial area or close to a market. Aspiring entrepreneurs therefore are urged to ensure that they carry out thorough market research and feasibility study of the industry they intend to go into before investing their hard earned money and time in it.
A Sample Language School Business Plan Template
1. Industry Overview
Generally, players in the Language Schools industry offer language instruction ranging from conversational skills for personal enrichment to intensive training courses for career or educational opportunities. Schools teach foreign languages, sign language and English as a second language. Please note that the Language Schools industry does not include language instruction software.
Over the years, per capita disposable income and international travel by US residents have grown, thus providing remarkable growth for the Language Schools industry. Going forward, the industry will build on its success in the online, corporate and international markets to fuel growth.
So also, steady immigration levels will aid long-term demand for English-language courses in the domestic market. Demand for language training will also grow as the US population becomes more diverse and businesses attempt to target the new demographic markets. Nevertheless, competition from language instruction software continues to pose a threat to the industry.
The Language Schools industry is indeed a large and thriving industry. Statistics has it that the Language Schools industry in the united states of America is worth billion, with an estimated growth rate of 1.3 percent within 2012 and 2017.
There are about 13,324 registered and licensed Language Schools scattered all around the United States of America and they are responsible for employing about 36,078 people. Alexander Language Schools, Berlitz, Language Leaders Franchising and Rosetta Stone Inc. are the market leaders in this industry, they have lion market shares in the industry.
A report released by IBISWorld shows that as with most industries in the education sector, wages, which include salaries and benefits, account for the largest cost to industry operators. This industry requires instructors, researchers and program developers, as well as employees who perform administrative and management duties.
The report also shows that in 2017, wages are estimated to account for 35.3 percent of revenue. Language schools usually deliver training on a face-to-face basis in small groups, which is highly labor-intensive. On the other hand, establishments can expand facilities and purchase equipment according to need, thereby reducing the level of capital needed to successfully operate in this industry.
Small local operators may even hold language classes in community centers, schools or residential homes. Even though there are loads of players in the Language Schools industry, the industry is still pretty much open for aspiring school proprietors and proprietress to still come in and compete.
As a matter of fact, if you conduct your research and feasibility studies very well before starting your own language school, coupled with impressive profile of your faculty members, you are likely going to struggle less to make headway in the industry.
2. Executive Summary
Kings International® Language School is an international private language school that will be located in a well – populated residential estate in Atlantic Avenue, Delray Beach – Florida, United States of America. We are a standard and government accredited language school that will be predominantly funded through tuition fees and levies from students and of course from other private sources.
Kings International® Language School is a client-focused and result driven private language school that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients (students and parents alike).
We will offer standard and professional language teaching services in a highly secured and conducive learning environment. We will ensure that we work hard to meet and surpass all our students’ expectations and educational goals whenever they enroll in our school.
At Kings International® Language School, our students’ overall best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professional educationists cum teachers in various languages who are well experienced and passionate in imparting knowledge to students at various learning ladder.
Kings International® Language School will at all times demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our students’ needs precisely and completely.
We have plans to offer learning platforms to people both online and offline. Our overall business goal is to position our language school to become the leading language school brand in the educational industry in the whole of Delray Beach – Florida, and also to be amongst the top 20 language schools in the United States of America within the first 10 years’ of operations.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Delray Beach – Florida is the right place to launch our language school.
Kings International® Language School is founded by Dr. Jenkins Adolphus and his immediate family members. He is an educationist par excellence and has won many awards in the education sector in the United States. Dr. Jenkins Adolphus has both the academic qualification and experience to run a private language school that can favorably compete with other leading language schools not only in Delray Beach – Florida, but also throughout the United States.
3. Our Products and Services
Kings International® Language School is going to offer varieties of learning and instruction services within the scope of the language schools industry in the United States of America. Our intention of starting our language school is to soundly educate people in various languages and of course to make profits and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings are listed below;
- Foreign languages (French, German, Portuguese, Spanish, Japanese, Mandarin and Arabic et al)
- English as a second language
- Career language training
- Sign language
- Retailing of language books and training materials (DVDs, and CDs et al)
4. Our Mission and Vision Statement
- Our vision is to build a highly competitive language school that will become the number one choice for students in the whole of Delray Beach – Florida. Our vision reflects our values: integrity, service, excellence and teamwork.
- Our mission is to provide professional and conducive learning environment to students at different levels of learning as it relates to the language of their choice.
- Our overall business goal is to position Kings International® Language School to become the leading language school brand in the language school industry in the whole of Delray Beach – Florida, and also to be amongst the top 20 language schools in the United States of America within the first 10 years of operation.
Our Business Structure
It is a known fact that the success of any business is to a large extent dependent on the business structure of the organization and the people who occupy the available roles in the organization. Kings International® Language School will build a solid business structure that can support the growth of our language school.
We will ensure that we hire competent hands (teaching and non – teaching staff members) to help us build the language school of our dream. The fact that we want to become one of the leading language schools in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset.
We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives. Below is the business structure that we will build at Kings International® Language School;
- Head of School (School Proprietress)
- School Administrator
- Tutors for Various Languages
- Client Service Executive/Front Desk Officer
- Security Officers
5. Job Roles and Responsibilities
Head of School/School Coordinator:
- Grows management’s effectiveness by employing, selecting, positioning, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Produces, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing school fees and signing business deals
- Accountable for providing direction for the business
- Creates, interconnects, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- In charge of signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of HR and administrative tasks for the language school
- Design job descriptions with KPI to drive performance management for tutors (teachers)
- Regularly hold meetings with key stakeholders (students and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily activities of the language school.
Tutors for Various Languages
- Teach subjects as assigned by the school administrator
- Establishes foundations in various languages as assigned
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the school
- Contributes his/her quota towards growing the language school
- Receives complaints from students and channel it to the appropriate quarters
- Handles any other duty as assigned by the school administrator
- Identifies, prioritizes, and reaches out to new students, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the school
School Bursar (Accountant)
- In control of preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- In authority of developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Kings International® Language School
- Serves as internal auditor for Kings International® Language School
Client Service Executive
- Welcomes / receive students by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with parents and students (e-mail, walk-In center, SMS or phone) provides the students with a personalized customer service experience of the highest level
- Through interaction with students on the phone, uses every opportunity to build student’s interest in the schools’ products and services
- Manages administrative duties assigned by the HR and Admin Manager in an effective and timely manner
- Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
- Receives parcels/documents for Kings International® Language School
- Distributes mails in the organization
- Handles any other duties as assigned by the School Administrator
- Responsible for cleaning the school facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the schools’ facility
- Handles any other duty as assigned by the school administrator
- Ensures that the school facility is secured at all time
- Controls traffic and organize parking
- Gives security tips to staff members from time to time
- Patrols around the building on a 24 hours’ basis
- Submits security reports weekly
- Any other duty as assigned by the school administrator.
6. SWOT Analysis
Because of our quest for excellence, Kings International® Language School engaged the services of a core professional in the area of business consulting and structuring with bias in the education sector to assist us in building a well – structured language school that can favorably compete in the highly competitive language schools industry in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Kings International® Language School. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Kings International® Language School;
As a language school, our core strength lies in the power of our workforce. We have a team with excellent qualifications and experience in languages. We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors and welcome students for enrollment.
As a new language school in Delray Beach – Florida, it might take some time for our organization to break into the market and gain acceptance via reputation in the already saturated language schools industry; that is perhaps our major weakness.
The opportunities in the language schools industry is massive considering the number of student cum migrants who would want to learn new languages. In the United States, intensive language and cultural training will remain a popular service. As a standard and international language school, Kings International® Language School is ready to take advantage of any opportunity that comes our way.
The fact that language instruction software is becoming popular, this has resulted to increase in external threats for this industry.
Some other threats that we are likely going to face as a language school operating in the United States of America are unfavorable government policies that might affect private language schools, the arrival of a competitor within our location of operation and global economic downturn which usually affects spending/purchasing power.
There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
The trend in the language school line of business is that the keys to attracting students are educational performance and the pass rate of their students in national exams. Any language school that has good records will always thrive.
The demand for the services offered by language schools are driven by the fact that migrants, businesses people, tourists and students would need to learn the language of their host country if they truly want to integrate fully in the country or community.
Economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, on advertisements, and insurance policy cover.
Lastly, it is trendier to find language schools leveraging on technology to reach out to students beyond the location where their school is located. With the aid of technology, a language school in the United States of America can enroll and tutor students in any part of the world via online study programs.
8. Our Target Market
As a standard and international language school, Kings International® Language School is going to offer varieties of language instruction services within the scope of the language schools industry in the United States of America. Our intention of starting our language school is to soundly educate people in various languages and of course to make profits from the language schools industry.
Our target market as a private language school cuts across people (students, migrants, tourist, diplomats and business people) of different classes and cultural background whether African, Caucasian, Latinos, Indians, and Asians. We are coming into the language school industry with a business concept that will enable us work with the students at different learning stages.
Our Competitive Advantage
Indeed, the language school industry is highly competitive and the entry barriers are high. As a matter of fact, it is pretty difficult for new entrants to establish themselves in the language school industry. So also, the reputation of the language school is of utmost importance.
We are quite aware that to be highly competitive in the industry means that you should be able to deliver consistent quality service, your students should be able to experience remarkable improvement and you should be able to meet the expectations of both students and parents alike.
Kings International® Language School might be a new entrant into the language schools industry in the United States of America, but the management staff and owners of the school are considered gurus. They are licensed and highly qualified educationists/teachers at various levels of language learning in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Kings International® Language School is established with the aim of maximizing profits in the language schools industry and we are going to go all the way to ensure that we do all it takes to attract students on a regular basis. Kings International® Language School will generate income by offering the following language tutorial services;
- Foreign languages (French, German, Portuguese, Spanish, Japanese, Mandarin and Arabic et al)
- English as a second language
- Career language training
- Sign language
- Retailing of language books and training materials (DVDs, and CDs et al)
10. Sales Forecast
One thing is certain, there would always be students who would need the services of language schools to be able to achieve their educational goals and as such the services of language schools will always be needed.
We are well positioned to take on the available market in Delray Beach – Florida and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the language school and our student base.
We have been able to critically examine language schools in the United States of America and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Delray Beach – Florida.
- First Fiscal Year: $250,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. Also, there won’t be any major competitor (language school) offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions amongst language schools in the United States of America; hence we have been able to hire some of the best marketing experts to handle our sales and marketing concerns.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the language school. We will also ensure that our students’ excellent result from national exams and other exams speaks for us in the market place; we want to build a standard school that will leverage on word of mouth advertisement from satisfied clients.
Kings International® Language School is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our language school by sending introductory letters alongside our brochure to schools, corporate organizations and key stake holders in Delray Beach – Florida
- Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations
- Use friends and family to spread word about our language school
- Introduce Kings International® Language School to learning specialists, school administrators, teachers, guidance counselors especially as they are with students everyday
- Post information about Kings International® Language School on bulletin boards in places like schools, libraries, and local coffee shops.
- Place a small or classified advertisement in newspapers, or local publications about Kings International® Language School.
- Use tutorial referral networks such as agencies that will help match students with Kings International® Language School.
- Join relevant association or body that will enable us network and meet others in same industry.
- Advertise online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
- Advertise our language school in relevant educational magazines, newspapers, TV stations, and radio station.
- Attend relevant educational expos, seminars, and business fairs et al.
- Engage direct marketing approach.
- Encourage word of mouth marketing from loyal and satisfied students.
11. Publicity and Advertising Strategy
We are aware of the potency of a good publicity strategy hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for students in the whole of Delray Beach – Florida which is why we have made provisions for effective publicity and advertisement of our language school. Below are the platforms we intend to leverage on to promote and advertise Kings International® Language School;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Delray Beach – Florida
- Engage in roadshows from time to time in targeted neighborhoods in and around Delray Beach – Florida
- Distribute our fliers and handbills in target areas in and around Delray Beach – Florida
- Passing general information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our teaching and non – teaching staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.
12. Our Pricing Strategy
Language schools in the United States of America and of course in all parts of the world charge students per tem/per session and students have the option of either paying their tuitions before resumption or during the school session. Language schools generally charge students based on loads of factors, locations, services offerings and extra – curricular activities et al.
At Kings International® Language School, we will keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.
We are aware that there are some students that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such students’ needs.
- Payment Options
The payment policy adopted by Kings International® Language School is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.
Here are the payment options that Kings International® Language School will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our services.
13. Startup Expenditure (Budget)
In setting up a language school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by acquiring a large facility, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of, and that your language school’s environment is conducive enough for students to learn.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a language school business; it might differ in other countries due to the value of their money.
However, this is what it would cost us to start Kings International® Language School in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a large facility that will accommodate the number of block of classes, staff offices and parking lots et al (Re – Construction of the facility inclusive) will cost – $350,000.
- Equipping the classes and office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $50,000
- Launching an official Website will cost – $500
- The budget for the payment of salaries for the first three months of operations: $120,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $15,000
Going by the market survey and feasibility studies conducted, we came to the conclusion that we will need an average of $750,000 to start a medium scale but standard language school in the United States of America.
Generating Startup Capital for Kings International® Language School
Kings International® Language School is a family business that will be owned and managed by Dr. Jenkins Adolphus and his immediate family members. They are the sole financiers of the language school which is why they decided to restrict the sourcing of the startup capital for the school to three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
It is a known fact that the future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and of course their business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Kings International® Language School is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers (students and parents alike) over is to ensure that we offer nothing less than the best.
Kings International® Language School will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Securing a standard facility large enough to accommodate our design: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Language Schools’ Logo: Completed
- Graphic Designs and Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the School: In Progress
- Creating Awareness for the language school in Delray Beach – Florida: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the education industry: In Progress