Investment for Starting a School

With education sector coming to the limelight, people have been enquiring about schools and the investments to start a school. From a commercial point of view, school offers the best investment opportunity as the returns continue for prolonged time periods.

There are different kinds of schools – preschools, primary schools, secondary schools and senior secondary schools. The investment to start a school depends on the kind of schools that is to be established. For instance preschools can be started with as little as 5 lacs, provided the investor has the site. On the other hand secondary and senior secondary schools equipped with all modern teaching and learning facilities may require more than 5 crores.

For the information of interested parties, school investment is not estimated based on the student strength, as is believed by many people.

There are certain norms defined by the government agencies regarding the minimum space required and minimum facilities to be provided in the schools. Senior secondary schools require about 2 acres, preschools and primary schools can be managed with one acre are slightly less and preschools in about 2000 sq. feet.

Therefore land requirement is a determining factor. In cities, though land requirements have been relaxed by the governing agencies, still the cost of the land will account for a sizeable part of the investment. Investment for starting a school is so much dependent on the site.

The next comes the construction of building and site development. Again the kind of school will determine as the cost incurred on building the school. It may vary from few lacs to as much as couple of crores.

Once the site is fully developed and the building is in place, the school has to be provided with school furniture and school apparatus.

Other than spending on the school building, apparatus and equipments, a part of the investment has to be allocated to the promotion of the school. Advertising and marketing in local media is must in the initial days. Expenditure on other small procurements like stationary is not much and is recurring.

With proper guidance any person who wishes to determine investment for starting a school can cut the overall costs by at least 15 per cent. Therefore it is advisable to consult a known firm or agency instead of doing it on your own.


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