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  How to open your own linguistic school. From tutoring to corporate English school

Knowledge of a foreign language in a globalized world is considered mandatory for an educated person. It’s good practice to know at least one foreign language - English. In this regard, many schools and foreign language courses are appearing in cities, inviting both schoolchildren and students, as well as adults, and even preschool children as pupils.

So foreign languages? The answer is in this article!

English language, it is necessary to make a market analysis. The future director should consider the following questions:

  • what will be the format of the school:   individual training or group;
  • who will be targeted for training:   kids, schoolchildren, applicants, adults, etc., for each social group, it will be necessary to develop its own methodology and purchase individual teaching materials;
  • school goal:   just teach the language, provide training for the exam, prepare for life abroad, help with employment, etc., it is possible to open teacher retraining courses with the issuance of certificates;
  • how many languages   will be studied.

At the first stage, it does not hurt to check the potential demand: to assess the number of English schools in the city, their fill, level of teaching, location, etc. Usually, all the advantages and disadvantages of an educational institution immediately become clear.

Important formulate a unique offer,   which will interest the widest audience, as well as protect yourself from mistakes made by competitors.

Step-by-step instructions for opening a school of foreign languages

  1. Niche analysis, observation of competitors, development of USP,
  2. Obtaining initial capital (for example, credit).
  3. Obtaining a license to conduct educational activities.
  4. Search for suitable premises, rent or redemption.
  5. Carrying out repair work, ordering signs.
  6. Obtaining permission from the SES and the Ministry of Emergencies.
  7. The formation of the teaching staff.
  8. Development of educational programs.
  9. Purchase of necessary equipment, furniture, teaching aids.
  10. Active advertising, the conclusion of contracts for training, the formation of groups.
  11. From September 1 - the beginning of classes.

School registration

To open a school you will need:

  •   or .   If a school is organized by several people, it is easier to organize a company. If the founder plans to work alone or with the involvement of hired employees, then one can limit himself to the individual entrepreneur. When choosing, you can use the "simplified".
  • Obtaining a license.   For its design, you need to contact the local education department, they will tell you where and how to get it. Usually you have to go to Obrnazdor and submit your business project there.
  • Accreditation.   At the first stage, you can do without it. This document will allow the issuance of state certificates of graduation. You can issue it after 5 years of successful work.
  • Recertification.   Every three years, the teaching staff must undergo recertification to verify the suitability of the position.

Choice of premises

This is a key moment for opening a school, on which the success of the entire enterprise as a whole depends. There are two approaches:

  • rent (or redeem if available) a small office, or rent a class at an educational institution;
  • purchase or rent the whole building.

At first, the first option is preferable. If the whole building is bought (for example, a former kindergarten), then it is necessary to repair it in accordance with the law. For offices, there are no such strict requirements. Of course, you will have to pass an inspection of the SES and fire supervision and get the appropriate permits, but this is not so difficult.

Where should I choose a building?

Experts advise to settle down:

  • near existing educational institutions;
  • in busy and business areas of the city;
  • if the settlement is small - then in the very center;
  • if the city is large, it makes sense to open several offices in different areas to cover the largest number of residents.

The optimal size of the room is 50 square meters. It must have natural light.

Do not forget that perhaps will have to invest in repairs.


Purchase of necessary equipment

Without fail, you will need:

  • desks and chairs;
  • teaching desk and department;
  • board, chalk, pointer;
  • visual aids (for example, a map in a foreign language, a table of tenses, a list of basic irregular verbs, etc.);
  • training kits: textbooks, notebooks, workbooks;
  • magazines
  • optional - a projector, interactive whiteboard, TV, computers or laptops, etc.

The specific composition of manuals and kits will depend on existing curricula. For each of them you will need your own set of “tools”. Curricula can be developed by yourself, taken from free sources, or ordered from professional teachers.

Teacher Formation

If the school founder plans to become a teacher, this, of course, will reduce costs. However, for full work, the institution will need additional teachers:   at least for a wider reach and profit.

A teacher should be selected according to his professional qualities and the portfolio presented, relying on reviews and recommendations from his previous place of work. It’s good if the teacher has been teaching the same way for many years. So it will be possible to get a team of multi-format teachers and expand the range of services provided.

Recruitment of teachers is a continuous process.   It is optimal to accept new ones at the beginning of the school year or before the New Year, then the teacher has a greater chance of recruiting a group.

Basic Rules

The rules should be followed:

  •   set, depending on the load, no “leveling” - this will motivate an additional set of students;
  • one teacher - one language, one program;
  • do not forget about continuing education.

Student Search

The hardest part:   find those who want to study. However, if the city is “hungry” for foreign schools, then there will be no problems with the influx of students. Another thing is if the niche is busy and quite a competitor. The following tips will help here:

The new school should offer something truly unique and interesting, there should be a chip. For example, training is conducted on computers, communication with live speakers of a foreign language is offered, intensive preparation for the exam is carried out by university teachers, there are express courses for businessmen, etc.

How to make a foreign language school popular?

  • print advertising in crowded places: at bus stops, on public boards, not far from schools and universities;
  •   on thematic platforms: on city portals, in groups on social networks, etc .;
  • radio advertising;
  • tV.

Foreign language school business plan

The costs at the initial stage, if the office space is rented, it is planned to recruit 10 groups of 10 students, 5 teachers (not including the director) will work on 5 programs:

  • iP registration, obtaining a license in Obrnadzor - from 15 thousand rubles;
  • search for a suitable building, obtaining permission from the SES and the Ministry of Emergencies - from 10 thousand rubles;
  • repair (if necessary) - from 50 thousand rubles;
  • purchase of necessary equipment, including furniture - from 80 thousand rubles (for 10 students);
  • purchase of books, textbooks, stationery, workbooks, etc. - from 30 thousand rubles (for 10 students in 1 program), total: from 150 thousand rubles.

Initial capital:   305 thousand rubles.

Monthly expenses

  • rent - from 50 thousand rubles;
  • utilities - from 10 thousand rubles;
  •   - from 20 thousand rubles per 1 person, total: from 140 thousand rubles (including taxes);
  •   (minimum: cleaning lady and accountant) - from 30 thousand rubles.

Total costs:   250 thousand rubles.

Speaking about competitors and the educational services market as a whole, we can safely say that in Russia it is oversaturated with the offer and is highly competitive. You can find a service provider for every taste, in any price category.

At the same time, the market is promising and dynamically developing even in times of crisis. Indeed, both optimists and pessimists recognize the need to learn a foreign language. The former believe that everything is stabilizing and do not want to change the usual rhythm of life (fitness, cafes, foreign language courses), and the latter are considering leaving the country (and urgently begin to tighten their tongue).

Therefore, it is profitable to open a school of foreign languages, especially when you consider that investments at the start are minimal. But because of the high competition, it will not be superfluous to study the market. Although, this is not necessary in all cases.

We did not cut the market, because at the time of opening we simply did not have the necessary experience. And, frankly, we did not need this, because we already had requests from potential customers.

We have exactly the case when demand generated supply: we knew for sure that we would have a certain number of students. In a word, there is nothing to do with those cases when a company enters the market with a product without knowing whether it will even be in demand.

In addition, we were already existing teachers, and to say that we opened a business from scratch is not entirely true. We had few skills directly related to doing business, but we had an idea of \u200b\u200bhow to organize the educational process, had our own client base and teaching experience in a private school at the time of opening.

It was the latter that helped us at the very beginning. We watched how the director of this school conducts business, how contracts are concluded, corporate training takes place, we noticed mistakes that we would not want to repeat. We can say that the only competitor we studied is the school in which we ourselves worked.

Also at the start you need to decide which audience to work with. Today foreign languages \u200b\u200bin private schools are studied by people of all ages, starting from 3 years. So, you can work with kids, preschoolers, schoolchildren, students, working people and retirees. Each category needs its own training program, and more than one. You can not teach a first grader and a graduate preparing for the exam in the same pattern. And it’s almost impossible to reach all segments of the population at the start, so it’s better to start working with a category with which you already have experience of interaction.

Personal experience

We started working with adults, and so far I have never worked with children in my life. Because I just don’t know the right approach to them, I can only watch him from the outside like a mom. Therefore, we launched the “children's sector” in our schools much later, when I saw the effect of education on my child and invited a specialist to lead the corresponding direction in our school.

If you want to start a business with something you don’t know how to do at all, it’s important to hire a good specialist. Moreover, you need to test his method on yourself as a client, wait for the results. Because you can’t convince people that your product is good without ever trying it. At the start, you need to do what you know how, what you are ready for. Only this will ensure high quality services.

This also applies to the choice of languages \u200b\u200bthat will be taught at your school. If, for example, you are considering launching a Spanish course without knowing about it and the advising market, nothing will come of it. You will not even be able to hire good specialists, because they are extremely reluctant to go to unknown schools.

It’s best to start from one direction, work it out well and “run it through”, and after that open up new directions: launch courses in other languages, expand your audience. Something new at a foreign language school should be launched regularly. Trying to sell the same thing for 10 years is very dangerous. Periodically, the market sags in each segment. The same English sometimes comes to the background, other languages \u200b\u200bperiodically become more popular, and in turn.

But the palette needs to be expanded gradually, starting immediately with everything - the same as spraying. This is just the problem of many schools that speak many languages, but cannot assemble groups, and as a result, dissatisfied customers, without waiting for the start of classes in either a month or two, leave. At the same time, they do not just take their money, they have a negative impression, they no longer return to this school.

Investment size

Step-by-step instruction

In order to survive in a competitive environment and not dump prices, you need to pay the greatest attention to the quality of the services provided. Therefore, after you have studied the business from the inside and collected the necessary amount of investment, you need to carefully consider the question with the curriculum. First of all, it will depend on what audience you plan to work with at the start. For example, it is better for very young children to learn languages \u200b\u200bthrough creativity: music, dancing, modeling, etc.

With adults, it’s somewhat easier in this regard, but they also have different goals when they come to a foreign language school: someone wants to emigrate, someone needs a language for work, someone for travel. Accordingly, it is desirable to give different programs for different purposes.

Opening our school, we wrote several programs: business English, spoken English, financial, legal English, tourist English, etc. We taught all this before, so the programs were working and tested in public.

About 65 programs are taught at our school, including very narrow areas, such as preparing for an interview. All of them are written by professionals. And there is simply no other method than involving a specialist in writing a program. For example, we now have a methodologist who has a higher pedagogical education and three years of experience in the specialty.

Another way is not to write your own program, but to use modern world-class teaching aids - textbooks from publishers such as Macmillan, Longman, Cambridge, etc. They offer their programs, which you can simply download on the Internet and use the provided step-by-step instructions.

The teacher can independently make a program. But for this you need to spend a lot of classes, describe them, writing down the dates, results, used textbooks. Only then will it be a really normal training program.

Personal experience​​​​​​​

It was with the help of our teachers that we launched the teaching of German, French and Italian. Almost all the teachers in our school have an MSLU education, they all know at least two languages. When we have already formed the staff of our teachers, each of them spoke another language. At this stage, launching a second foreign language was easy, because we were confident in the professionalism of our employees.

In general, the instructor is a key figure in this business. This is exactly the person who will “keep” your client. If you make a mistake with the teacher, the client will not stay with you for all investments, beautiful offices, and smart sales managers.

If the founder of the school himself has a profile education, “cooks” in this environment, then it will be much easier for him to recruit staff, simply because you can attract your classmates to work.

Otherwise, you can search for teachers in standard ways, for example, through sites with ads. It is also worth “monitoring” students and graduates of local universities. For example, I constantly interact with MSLU, I know all the forums, I am present on all sites where students sit, and I often write to them directly, asking if they want to apply for a job after graduation.

Do not be afraid to hire young professionals. You can work from 21-22 years old, while demonstrating all the talents and a high level of language proficiency - C1.

Sometimes applicants come to us, but after the interview, we advise them to start studying at our school at the Intermediate-Upper-Intermediate level, as they make many mistakes in speech. This can often be found on the Moscow market.

Personal experience

Empirically, we found out that a sign is important for the school. Initially, we believed that today people are looking for information, including about courses, on the Internet, which means that signs are not needed. But it turned out that when we rented an office with a front sign, 30% of customers came to us, just passing by.

At the stage of brand formation, do not forget about PR: publications, free events, prize draws from partners. Try to find interesting partners and exchange audiences. It is very useful.

Even with the most competent promotion strategy, clients will not engage with you if this is not convenient at the time. At the start, my partner and I worked from 7 a.m. to 10 p.m. ourselves, we looked at what time people are most active. Having studied the demand peaks and recruited a staff of professionals, we set the working day from 10:30 to 19:30. At the same time, the greatest influx occurs in the evening: after work, people come to meetings, testing, demo lessons.

In addition, for the convenience of the client, you have to work on the weekend, with which at first there was a big problem. Therefore, we have developed a duty mode. Now we have a person who works on Saturdays, but does not work on Mondays, and on Sunday one of the training coordinators is always on duty. It turns out that the employee is on duty once a month on Sunday and receives time off any day he wants. Thus, the office works almost always, so the client can come at any time.

It goes without saying that long before the opening it is necessary to attend to the search for a room suitable for the school and its design. And there are also a number of rules.

A foreign language school must be located in a place with good cross. We accepted for ourselves as an axiom that the distance from the metro is no more than 6 minutes. The acceptable indicator for Moscow is up to 10 minutes from the metro.

Other cities should also focus on public transportation. One way or another, people should be able to calmly reach you on foot, and not go on the crossroads. It is very desirable that the school has its own parking, but in the city center this can be a problem.

It seems to many beginning entrepreneurs that the office should be centrally located. Perhaps there is a certain truth to this. For example, our central office is always crammed with a request. But choosing a room "more centrally", it is important to consider one point:

At the center are competitors at every corner.

In addition, rental rates in central areas are quite high and can vary significantly. For example, you can rent a Class A office, paying the corresponding price for it, and a competitor rents a Class B office literally across the road, which is almost no worse in quality, but its price is much lower.

The cost of rent ultimately affects the cost of the course for your students. Therefore, you need to adequately assess the average check, the budget of your client. Even those students for whom money is not a problem do not want to overpay just for the building. Before you go bankrupt, think about whether your customers will pay for it.

At the same time, according to the principle “the cheaper, the better”, the office is also not worth choosing. Too budget options may not be entirely “clean” from a legal point of view.

It is advisable to decide the issue of the premises together with the lawyer so that he checks the contract and the building for “cleanliness”. Sometimes everything looks perfect, but after a couple of months it turns out that the building belongs to other people, and you can be kicked out day after day. This will cause serious damage to your reputation.

There are no strict requirements for the purpose and condition of the room, for repairs in it. It is advisable to avoid the open space format. Walls should be erected initially so that you do not have to divide the room yourself. Otherwise, sound insulation will suffer, and hence the quality of classes.

The number of classes will depend on the school load. At the initial stage, 4-5 rooms are enough (the total area is about 60-80 sq. M, taking into account the entrance and administrative zones). A larger number does not make sense, since classes will be empty. This often does not make a good impression on customers. It is better to move to a larger room in the same territorial block over time. Moving to another district is undesirable, since many clients are residents of neighboring houses, who are often not ready to attend their favorite school after moving.

In the case of registration of a KNOW (non-governmental educational institution), a number of additional requirements for the premises appear: the presence of a separate bathroom, the presence of a separate entrance, the ceiling height is from 2.6 m, the source of natural light in each class, etc. It is also important to get conclusions from firefighters and SES. They will be required to obtain a license to conduct educational activities.

Documents

When organizing a business in Russia, it is, first of all, necessary to register with the tax authorities. And for this, it is necessary to determine the legal form of ownership of your future business: to work as an LLC, a know-how or as an individual entrepreneur?

The IP form is, of course, good for beginners. It allows you to provide customers with services on a fee basis, to rent premises, to hire staff, but you will not be able to issue certificates to your graduates, and your activities from the point of view of the law will be only advisory, but not educational. Corporate clients will not be available to you. And officially, you will be considered only a specialist in foreign languages, and not their teacher.

In order for your school to become a full-fledged educational institution under the laws currently in force in Russia, you should register a NOW (non-governmental educational institution) or a commercial organization with the form of LLC (limited liability company).

This will allow you to obtain a license for educational activities. Such a document is drawn up in the territorial education authority, and in order to receive it, you need to provide a certain set of documents (the full list is specified in the authority itself). This is usually documentation related to the premises, the qualifications of teachers, the quality of teaching methods and plans, etc.

At the end of 2013, Russia adopted amendments to the federal law on education that private schools with any legal form have the opportunity to obtain a license to carry out educational activities. This is great news! But, unfortunately, the process of obtaining a license has not become easier, and the requirements for a licensee represented by a small private school are still overstated.

To obtain a license for educational activities, it is best to use the help of specialized law firms. But do not confuse obtaining a license with its illegal "purchase". This will inevitably lead to re-checks and the detection of counterfeit.

A weighty argument in favor of obtaining a license is the opportunity for your clients to return their personal income tax (personal income tax - direct federal tax in Russia) with the amount paid for education (which is 13%). This is a significant competitive advantage.

About the license required

Typically, a license requires:

Copies of constituent documents certified by a notary;

Copies of documents certified by a notary, which confirm that you have a place to work;

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The story of an entrepreneur from St. Petersburg

In 2010, Ksenia sold a car and with this money opened an English language school “Lingvoexpert” in St. Petersburg.

Lena Kiseleva

spoke with the founder of the English school

Today the school has 200 groups, 100 lessons per day and a profit of 700,000 rubles per month.

Idea

Ksenia from school earned money as a tutor of the English language. In 2010, she worked as a brand manager in a perfume and cosmetics store, and continued to teach in the evenings. I found clients through friends and acquaintances. Then the idea came up to open my own language school.

Ksenia's husband sold the car - for Honda Civic, the couple received 450,000 rubles. This money became the starting capital for the school. In August 2010, Ksenia quit her job and registered LLC Lingvoexpert.

Room

They decided to start from the premises. At first they were looking for an office in a large residential area - Primorsky, but when there was no place there, they paid attention to Vasilyevsky Island. It is located near the center, but in 2010 there were few language schools there. Ksenia searched them on the Internet and personally went around potential competitors, just to see their offers and prices.

At the start, they decided not to rent a large room. First, it was necessary to understand whether the school would have clients at all, and not invest in repairs and expensive rents. As a result, in August Ksenia rented a small office of 25 m² in a business center on Vasilievsky Island. The deposit and the first two months of the lease cost 75,000 rubles. For the first time, such a room is enough.

Training

By the beginning of classes it was necessary to furnish the room and buy training materials. For the prepayment received from the first customers, we bought 6 desks and 12 chairs in Ikea - the furniture cost 12,000 R. We spent another 50,000 P on training materials and new office equipment: a photocopier and printer are required to prepare for classes, and tape recorders are needed for listening.

Then they made the first version of the Lingvoexpert website. For the development paid 50 000 R, for promotion in Yandex Direct   - 20 000 R. For another 20,000 P they ordered a logo.

50 000 R

paid for the development of the site in 2010

From the very beginning, they began to engage in promotion: for a school at the start, it is most important to attract students. Ksenia printed and handed out leaflets, held joint campaigns with a fitness club next door, made advertisements in business centers: hung up posters in their elevators. There was a fitness club next door to the office - Ksenia invited its visitors to free classes in a conversation club. In parallel, we launched the “Bring a friend and got a discount” campaign: both students paid 30% less than usual cost for classes.

At this stage, the main task was for as many people as possible to learn about the school being opened. They decided to start classes in August, before the high season. A month of study cost 3000 rubles.

Launch costs - R 315,000

Rent 25 m² (deposit + 2 months)

75 000 R

50 000 R

20 000 R

Training materials, furniture

50 000 R

Salary fund

100 000 Р

Website promotion

20 000 R

Teachers

Ksenia graduated from the faculty of St. Petersburg State University, so at first she was looking for teachers among friends at the university. At the start, she laid on wages to herself and the first five teachers 100 000 R.

It was very difficult to lure teachers from other places: few wanted to leave stable and well-established schools in a new, unknown market. It is impossible to combine: the most popular class time is evening, and all evenings in schools are usually scheduled.

100 000 Р

start salary fund for teachers of English

Ksenia appointed teachers an hourly rate - 250-300 R per hour. At that time, it was the average market rate.

When the friends ended, they began to look for new teachers at the Headhunter.

Class time

By August, Lingvoexpert had six groups of various levels: from beginners to Uper Intermediate. Almost all groups wanted to study in the evening, after work, although Ksenia specially made a discount on morning and afternoon classes. Until 19:00 the room was empty, and in the evenings there were too many willing.

Ksenia rented several rooms adjacent to the office. The cost of rent increased to 60 000 R per month.

Corporate clients

One month after the launch, one of the students asked if English courses could be organized for employees on the company's premises. So in September 2010, Lingvoexpert's first corporate client became company "DH-el".

For the school, such a scheme of classes was very profitable: no need to spend money on renting their premises, just send the teacher to the customer's office. Companies provide normal facilities, as a rule, there are already markers, whiteboards and other materials necessary for classes.

There are four groups of employees formed at D&H. Pupils paid for the classes themselves, the company simply provided them with premises in the office. We studied twice a week for three academic hours.

The academic hour at Lingvoexpert cost 500 rubles - the price tag is not high for the client even at that time. Half of this amount is the salary of the teacher, the other half is the school extra charge. Ksenia was sure that for a start, the low cost of classes would do. The calculation was as follows: word of mouth about “Lingvoexpert” to other corporate clients.

During the year after D&H, employees of three other large companies came to study at Lingvoexpert.


Seasonality

The main difficulty language schools face is the seasonality of classes. In summer, everyone goes on vacation, and in September they begin to study abruptly. During the holiday season, the premises are empty, and by September the demand for them is increasing sharply. The entrepreneur has to abandon the lease in May, and again sign the contract in August.

In May 2011, Ksenia refused to rent additional classes and again left the school with only a room of 25 m².

In order to keep teachers busy in the summer, Lingvoexpert launched an action with the Groupon coupon service in advance, back in the spring. Two months of intensive training in summer groups selling 4 lessons per week at a discount of 75% - for 1990 rubles. At the May holidays, Ksenia processed applications and phoned everyone who bought coupons. As a result, she sold 500 coupons, went to zero and did not earn anything on this. But it ensured the employment of teachers so that they did not run away.

In the fall, many students who came for the action continued to study in groups at the usual price of 5,000 rubles a month. Someone recommended   school friends. Ksenia had to rent a second office in the Petrovsky Fort business center, because the students no longer had enough space in the old room.

Focus on corporate clients

In 2012-2013, new language courses began to open on Vasilievsky Island. Lessons from competitors cost less, students began to move to other schools. Then, large corporate clients came to Lingvoexpert: Pit-product, GC Transas, Ensto, Ilim Group, Baltika.

To attract large customers, Ksenia personally phoned companies whose employees may need English. Typically, these are well-known foreign companies, such as Ford or Coca-Cola. Then word of mouth worked. Once Ksenia found out about the correspondence of St. Petersburg eychars in a professional chat. One of them asked colleagues where it is better to order corporate English training. Several people immediately advised Lingvoexpert in response.

The most popular direction for corporate clients is business English with a focus on negotiations and presentations. English for narrow specialties, for example for programmers, is not popular at all: people already understand the specialized documentation in English, the spoken language is more important for them.

Employees with zero knowledge of the language of the company, as a rule, are not trained - it is too expensive. The most popular level is Pre-intermediate. And usually they end up with an “apper-intermediate” - it is enough for work.

To pull the tongue away Pre-intermediate   before Uper Intermediate, it will take about a year and a half of classes several times a week.

The main difficulty for the school: companies take a very long time to decide who will teach their employees the language. Sometimes it lasts for months, and sometimes for years.


Overseas corporate training is popular in large groups of 10 people. According to the experience of Ksenia, in Russia people like an individual approach and are asked to make small groups of 2-3 people, so 50-60 groups can be engaged in one large company at the same time.

The academic hour of the Lingvoexpert teacher in 2018 costs 1200-1350 rubles. The price depends on the remoteness of the office from the center and the time of classes. For example, a group of three people costs the company 1200 rubles per academic hour. A group can have 8 lessons of 2 hours per month. So, a month of training three employees for a company costs 19,200 rubles.

1350 R

is the academic hour of the teacher of “Lingvoexpert” in 2018

Today the school has 63 corporate clients. Another 100 periodically seek the services of teachers. To find new contacts, Ksenia and her husband enter into business associations and participate in their events, where they get acquainted with the eychars. For example, they entered the St. Petersburg International Business Association and the American Chamber of Commerce. Such participation costs 10,000 rubles per month.


Command

The first two years, Ksenia did without an office manager. She believed that she should conduct all the processes herself: answer calls, find out what customers need. But the number of tasks grew, and there wasn’t enough time for everything. Now there are several managers and an administrative director on staff.

In 2014, Ksenia's husband Stanislav quit his job and joined the Lingvoexpert team. He took charge of finance and development, and Ksenia is responsible for the product and teachers. She no longer leads the group.

The staff of the school is 50 teachers. They work the same amount under a contract in the main training season - September-October. Ksenia is looking for new employees at conferences for teachers she regularly attends.

teachers on the school staff. As many work under a contract

According to statistics, in 2017 “Lingvoexpert” conducted an interview with 10-12 candidates in order to eventually hire one. A diploma of a well-known university does not guarantee a good knowledge of the language, nor experience in different teaching methods. Ksenia is still personally interviewing each candidate and choosing those who have focused their careers on teaching and are developing in this area.


Now the Lingvoexpert team is renting two offices. The main one moved closer to the metro - to the business center on Vasilievsky Island. Administrative staff remained there, and interviews and training of new teachers were also conducted there. Rent costs 55,000 rubles per month.

Two more employees who are selling a new product - online learningworking in coworking. This is convenient because the rental is flexible: if there is an employee, the room is paid. If Ksenia decides to reduce or expand the sales team, she does not need to rush to look for a new premises. Renting a coworking costs 30,000 rubles per month.


Plans

In 2016, Ksenia with Stanislav began to develop online learning   at Lingvoexpert. More than 100 people bought Skype courses - Ksenia and Stanislav earned 2 million rubles on this launch. Spouses added webinars and group classes to the services of the online school, and invested the proceeds in the development of new courses and internet Marketing.

At the end of the year, Ksenia and Stanislav realized that they want to find a solution that minimizes the human factor. Skype is one-on-one effective if classes are held with an experienced teacher. Finding such educators takes time.

During a trip to America in 2017, Ksenia and Stanislav learned about the Voxi Internet platform. It is possible to perform language exercises and practice spoken language with native speakers. To do this, the student connects to the lesson, which is taught by a teacher from anywhere in the world, and communicates with the teacher and other participants. In 2018, entrepreneurs added Voxy to their product line and plan to sell it in the corporate segment in Russia. Access to Voxy costs the company about 24,000 rubles per year per employee.

In the same year, Lingvoexpert launched a beta version of a new product - the chat bot in Telegram @lindaexpertbot, which teaches subscribers vocabulary and grammar. This is a micro-learning format that takes a person 5 minutes a day. You can’t learn English with the bot, but you can maintain the current level of the language. Beta is now free. Later, Ksenia and Stanislav plan to offer chatbot services to corporate clients for money.

Detailed instructions will help you plan how to open a school of foreign languages, find out what you need to purchase and what you will have to spend, how much money your own teaching business in this field can bring and what you will have to take care of when starting your linguistic training center.

Organizational issues of creating such a business

Teaching foreign languages \u200b\u200bcan be offered with different goals and different categories of clients. You can create a business in this area in the form of continuing education courses, tutoring, a foreign language school, an educational center for toddlers, schoolchildren, students or adults. The organizational and legal form of organization depends on the choice of specialization and the planned scale of activity.

  1. Registration as an individual entrepreneur;
  2. Establishment of a non-governmental educational institution or autonomous non-profit organization.

Permits and tax burden

Individual teaching activities are not subject to licensing, but no documents of state standard on the completion of training will be issued to clients, nor will final certification be conducted. This option is more suitable for teaching adults in courses, for them the availability of papers confirming their linguistic qualifications is often not so important, the main thing is real knowledge of the language.

There will be no problems with hiring other teachers, the new legislation in the field of education allows the adoption of IPs for the work of other teachers (in total no more than 15 employees when working on a patent). There is only one clarification: if an entrepreneur works alone and attracts non-staff employees, then he will not need a license, and when hiring other teachers on an ongoing basis, he will need to obtain permission to conduct this activity. As a tax system for educational activities, you can choose "" (6% of income or 15% of the difference between income and expenses) or a patent (for self-employed entrepreneurs).

If you intend to study with the issuance of documents confirming the qualifications of graduates, you will need to register a legal entity (NOU or ANO) and obtain a license in the local department of the Ministry of Education. With this version of the organization, the client, upon completion of training, can receive a certificate or certificate of additional education. But for licensing, it will be necessary to prepare a voluminous package of documents, mainly proving the suitability of the premises for conducting classes and the level of material and technical equipment of the institution, the professional qualifications of teachers and the composition of training programs. The package of documents and the application for a license is considered in Rayono within 2 months, the license is valid for 5 years, and subsequently it must be renewed.

The necessary base for teaching foreign languages

What do you need to open a school of foreign languages? In addition to direct knowledge of the language, a penchant for teaching, or at least organizational activities, a novice businessman will need other resources to create his own educational center.

Individual in the list of necessary for any courses of foreign language will be people. The staff may include native speakers, or Russian-speaking teachers and linguists with the necessary qualifications in English, German, French or Chinese. Properly selected teaching staff is the key to the success of an educational institution. They will go to a good teacher on the recommendation and, therefore, the businessman will be able to reduce the cost of attracting clients through word of mouth.

Even if you decide to conduct classes on your own and teach all clients, you will need the services of support staff for the company's accounting services, IT support, security, cleaning, etc. These non-core services can be outsourced and contracted with specialized companies providing relevant specialists.

The main expense items when starting a school of foreign languages

There are other business needs that require starting investments at startup. It is necessary to spend money on the following items of expenditure:

  • Premises (class, classroom, conference room, office area of \u200b\u200b20-50 sq. M. At the rate of about 2 sq. M. Per person) for the required number of students, taking into account the number of groups, their occupancy and timetable. Licensing requires that such premises receive approval from the sanitary and epidemiological station, the fire department and other supervisory authorities (it is better to rent them in a building that already meets all the necessary standards).
  • Furniture and equipment for classrooms (desks or tables, chairs, whiteboards or projectors, computers for teachers and tablets for students, speakers and headphones, language laboratories).
  • Supporting teaching materials (textbooks, additional literature, workbooks, audio recordings and video films, posters and other visual aids), as well as stationery and supplies.

The most important intangible investment is a training program and teaching materials that will help to build the process of teaching a language with maximum effect, as applied to the selected audience and categories of clients.

Financial aspects of language teaching activities

A business plan with recommendations on how to open a foreign language school includes a list of necessary expenses and possible income from this type of activity. Start a financial analysis is to determine the size of the starting capital.

How much money will be needed to prepare for the opening of a training linguistic center:

  •   or a legal entity - 1000-5000 rubles, as well as expenses on - another 1000-2000 rubles at a time.
  • The cost of renting and repairing a room depends on the condition and area of \u200b\u200bthe room itself and its willingness to accept students, and most importantly on the region, the location and appetite of the landlord. You can keep in the amount of 5-10 thousand rubles for a small class or pay the first month of rent in the amount of 50-100 thousand rubles for a whole complex of premises, and also spend several tens of thousands of rubles on putting it in order.
  • The purchase of furniture and equipment - a computerized class for 5-10 students will cost about 100-150 thousand rubles, but you can do with a minimum of costs, basic furniture and simple equipment in the amount of 5-10 thousand rubles per office.
  • Purchase of teaching materials and manuals - a set of educational literature can cost from 500 rubles to several thousand rubles per student.
  • Consumables - for 1-5 thousand rubles you will have to stock up on stationery, paper, consumables for office equipment and other little things to work with students.

In total, starting costs can range from 20–40 thousand rubles (for one classroom and for a total of 10–50 students) to 300–500 thousand rubles (when opening a full-fledged educational institution with many groups and several separate classes).

Costs of the training center

The expenses do not end there, because the current activity will be accompanied by other fixed and variable costs:

  • payment of rent and utility bills - from 5–10 thousand rubles to 100–150 thousand rubles per month;
  • salaries and deductions for employees (for self-employed entrepreneurs - only contributions to funds) can reach 10–70 thousand rubles per teacher, taking into account his teaching load, occupancy of groups, average salary in the region and other factors;
  • taxes and accounting services - from 3-5 thousand rubles per month to 10-20 thousand rubles per month;
  • the acquisition of new benefits, stationery, supplies - 1–5 thousand rubles and up to 10–15 thousand rubles;
  • payment for services of auxiliary personnel - from 2-3 thousand rubles. up to 10–20 thousand rubles per month;
  • advertising and site maintenance - from 1–2 thousand rubles to 5–10 thousand rubles per month.

In total, it may take from 20-30 thousand rubles to 250-400 thousand rubles or more to maintain the work of the school of foreign languages \u200b\u200bper month, depending on the scale of work and the number of teachers.

Educational center income: where does the money come from

Accordingly, a business should bring more money than is monthly required for its maintenance. The cost of teaching foreign languages \u200b\u200bis influenced by the average prices in a particular city, the qualifications of teachers and the level of training. On average, rates can be as follows:

  • group classes (5-10 people or more) - from 1000 to 5000 rubles per month or more;
  • individual lessons (1-2 people) - from 2000 to 10000 rubles per month.

According to the schedule, there can be one, and 2-3 lessons per week lasting 1-2 academic hours. The load on one teacher is 10–18 ac. hours a week, on average, he can work with 2-3 groups and the same number of individual students. Based on this, and you need to calculate the potential number of groups, which means plan incomes.

Working independently with 20–30 students (in groups and individually), an entrepreneur can receive about 30–100 thousand rubles a month. Such measures as attracting hired employees, tightening the schedule and increasing the number of study rooms will increase income by the same amount based on each new teacher. If there are 5 teachers and provided they are fully loaded, you can receive about half a million rubles of income per month. But then the school needs to work simultaneously with 100-150 students.

The payback period of such a linguistic center is from 3 to 12 months, but it all depends on the amount of starting investments, as well as on the monthly ratio of the amount of receipts and the amount of expenses.

It is advantageous to open a school of foreign languages \u200b\u200bdepends only on whether a novice businessman can recruit the necessary number of students to not only go to zero, but also to profit from teaching English, Chinese or other languages. But the main thing is whether he will be able to maintain the quality of training at a consistently high level so that the flow of customers does not dry out year-round. To do this, you can provide special offers for summer camps, for those who want to prepare for exams or for those who want to "tighten up" their knowledge before a tourist trip.

* The calculations use the average data for Russia

635 800 ₽

Minimum starting capital

17,5%

Profitability

7 months

Payback

1 SUMMARY OF THE PROJECT

The aim of the project is to open a language school to implement the range of available services in the field of learning foreign languages \u200b\u200band translation in a city with a population of more than 1 million people. The main source of income of the institution is payment for teaching a foreign language.

Language schools provide a range of services for learning various foreign languages \u200b\u200bfor different levels of student training.

Every year the popularity of language schools is growing - people are aware of the benefits of knowing a foreign language and are eager to learn it. Therefore, a linguistic school is a prestigious, demanded and profitable type of business.

Key business benefits:

    a relatively small amount of investment;

    promising area, annual growth in demand for this type of service;

    quick payback.

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To implement the project, a room with a total area of \u200b\u200b100 m2 is rented, located in one of the sleeping areas. The linguistic school plans to teach seven foreign languages \u200b\u200bin various programs.

Target audience - the population of the city aged 16 to 45 years old, middle-income families.

The initial investment is 635,800 rubles. Investment costs are aimed at equipping the office and purchasing material to ensure the educational process, creating a working capital fund. Own funds will be used to implement the project.

Financial calculations cover a five-year period of operation of the project. In accordance with the calculations, the total net profit for the first year will be 1290000 rubles, and the return on sales - 17.5%. Upon reaching the targets, the initial investment will pay off after 7 months of operation.

2 DESCRIPTION OF THE INDUSTRY AND COMPANY

In the modern world, the role of foreign languages \u200b\u200bis growing rapidly. This tendency is especially noticeable during the crisis period, when interest in learning foreign languages \u200b\u200bsharply increases. Analysts attribute this phenomenon to people's desire to gain competitive advantages that will increase their value as specialists. However, the motives for learning a foreign language can be very diverse: someone needs this to work, someone teaches a language to communicate freely while traveling abroad, someone is preparing to go abroad or to the exam, and for someone it becoming a hobby.

Over the past ten years, the attitude towards the study of foreign languages \u200b\u200bin Russia has changed markedly. Firstly, the demand for this type of service has increased. Secondly, the learning opportunities have expanded - today the market offers various ways of learning foreign languages, and everyone can find the form of training that suits him. Language schools and courses, tutors, online training, classes with a teacher on Skype, trips abroad and so on.

People begin to realize the benefits of knowing foreign languages, as evidenced by the results of a sociological study:

    97% of respondents said that traveling, knowing foreign languages, is much easier;

    98% of respondents said that a second foreign language will help them in their careers;

    95% believe that learning a second foreign language will improve mental abilities;

    1/3 of enterprises want to hire a person with knowledge of a foreign language in a certain field;

    people with knowledge of a foreign language can expect a salary increase of 20%.

In terms of growth in learning foreign languages, Russia takes 10th place. The list of leaders includes China, Romania, Ukraine and Malaysia. Moreover, the EF2013 Index, developed by an international educational center, characterizes Russia as a country with a low level of knowledge of foreign languages. This fact is connected with the fact that the standard school curriculum and the curriculum at universities are inconsistent, outdated and rather fragmented. Therefore, people, faced with the need to use a foreign language, are forced to resort to the services of language schools, courses or tutors.

The goals for learning a language are varied: 26% consider a foreign language as a factor in career growth, 23% learn a language for professional development, 20% do not set a specific goal and learn a language for self-development, 12% learn a language when planning emigration, 8% for exams at school or university, and 7% - for passing the international exam TOEFL, IELTS. 4% learn the language to communicate freely on travel.

In the Russian market, 76% of students choose English, German - 10%, and French - 7%. The remaining 7% are in Japanese, Chinese and other languages. It is worth noting that the study of Asian languages \u200b\u200bhas recently gained popularity.

When answering the question, what kind of foreign language they would like to learn, respondents indicated: 25% - English, 7% - French, German - 5%, Spanish - 4%, Chinese - 3%, Italian - 3%, Japanese - 1% .

57% of respondents believe that it is impossible to do without knowledge of a foreign language in the modern world - and, in particular, because it is needed for trips to other countries and this is a requirement of the time.

At the same time, 46% of respondents who do not speak foreign languages \u200b\u200bwould like to receive this knowledge.

Thus, teaching foreign languages \u200b\u200bis in great demand, and the popularity of this type of service is growing every year.

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Today, the practice of studying foreign languages \u200b\u200bin language schools and courses that are able to create the necessary conditions is common in the largest cities of Russia. Table 1 shows the approximate number of language schools and courses in different cities of Russia at the beginning of 2017.

Table 1. The number of language schools and courses in the largest cities of Russia according to 2GIS

Online learning is also gaining popularity: at least 15 online resources have been created over the past two years. However, consumers prefer language schools.

The cost of educational services in the segment of learning foreign languages \u200b\u200bis different, depending on the form of training - in a group, individually for one academic hour, or the acquisition of the entire training course. In addition, the cost of classes varies depending on the language - for example, learning English in connection with its popularity will be much cheaper than learning Japanese. Therefore, when creating a language school, you must clearly understand which languages \u200b\u200bto include in the program.

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Thus, the dynamic development of the market of paid educational services in the segment of foreign languages \u200b\u200ballows us to talk about the investment attractiveness of this business.

3 DESCRIPTION OF GOODS AND SERVICES

The main activity of a language school is the provision of educational services in the field of teaching foreign languages.

Before opening a linguistic school, it is necessary to determine which languages \u200b\u200bwill be available for study, as well as what audience of courses it is supposed - preschool children, high school students, students or working adults. The development of educational programs, the range of services provided, the planned sales volumes, and the organization of the educational process depend on this.

The most popular language is English, followed by German and French. This set of foreign languages \u200b\u200bis considered mandatory for a linguistic school. It is recommended to organize courses in more rare languages: Italian, Spanish, Chinese, Japanese. This can become your competitive advantage and attract customers, since the competition in the field of teaching foreign languages \u200b\u200bis quite high.

You should also provide a range of different courses so that each student can choose the appropriate form and direction of study at your school:

    express learning fluency in speaking;

    english for children;

    exam preparation, TOEFL, IELTS;

    intensive teaching of a foreign language;

    group and individual lessons;

    specialized business English courses;

    family education (with the possibility of creating a convenient schedule and home schooling).

The list of services and areas of study is open and is determined individually for each linguistic school, based on its goals, financial capabilities, staff composition, etc.

This project involves the opening of a language school offering the following types of educational services:

    General curriculum for English, German, French, Italian, Spanish, Chinese and Japanese. Classes in small groups of 4-6 people and large groups of 12-20 people. The course program includes spoken language and grammar base. For English, it is assumed the choice of a program depending on the level of knowledge - initial, basic, advanced;

    An intensive (accelerated) program of teaching the English language includes three levels - elementary, basic, advanced;

    Preparation for exams, exam, TOEFL, IELTS and so on. The course includes preparing for various international tests in a foreign language, as well as preparing students for passing the exam and exam. Presence of group and individual courses;

    Spoken English. The course is focused on expanding vocabulary and lively communication practice;

    Business English. The course includes the study of grammar, the expansion of the lexical stock, the study of specific business terminology;

    English for children: programs for children 3-5 years old and 6-7 years old. Education is based on the alternation of educational activities and various games, which allows students to effectively absorb material.

    Translation services - written translation of texts from Russian into English, German, French, Italian, Spanish, Chinese, Japanese and vice versa. Various types of documentation, advertising and other texts are being translated.

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In accordance with the specified list of services, the necessary office area is determined, the staff is formed, a lesson schedule is drawn up and a marketing strategy is planned.

4 SALES AND MARKETING

The target audience of the language school, taking into account the curriculum, is the population of the city aged 16 to 45 years old, middle-income families.

Corporate identity, a memorable name and logo are of great importance for a language school, therefore, before starting the project, it is recommended to carry out work on naming and creating an image. The help of naming specialists will cost an average of 6,000 rubles - the price includes the development of a brand, logo, name.

The location of the language school also plays an important role - it is necessary for students to conveniently get to the school. It is advisable to choose an office in a walkable place, on a crowded street. Placing a school in a residential area will be a competitive advantage, since the proximity of the school to home is a determining criterion for some consumers.

Near the school you must place a sign indicating the location of the language school. Coordination, production and installation of an advertising sign will cost about 24,000 rubles.

In the first months of opening it is necessary to conduct an advertising campaign. For this, it is envisaged: distribution of promotional flyers, posting of announcements in the elevator. The budget of this type of advertising will be about 10,000 rubles. In order to build your customer base and attract visitors, it is recommended to conduct various promotions and bonuses: the first lesson is free, a discount for repost on social networks, the “bring a friend - get a discount” campaign, etc.

You must also create a group or profile on popular social networks. The content of a group or profile should be diverse, including not only organizational aspects and advertising of school services, but also contain useful information - these can be fascinating videos in a foreign language, interesting facts about the languages \u200b\u200bof the world, useful infographics, etc. Marketers say that providing a company with useful and, most importantly, free information increases the degree of loyalty of potential customers. Through social networks it is convenient to conduct various promotions and bonus programs, which were mentioned above.

It is also recommended that you create your own website - this will not only increase the reputation of the school, but also simplify the process of informing about services. On the site, users will be able to read the description of each course, see the class schedule, get acquainted with the prices, undergo testing to determine the level of training, find out the contacts and location of the school, get acquainted with the teaching staff. Creation and promotion of the site will be approximately 50,000 rubles.

It is necessary to comprehensively use promotion tools - then advertising will give the fastest and most effective result. However, it should be understood that for a language school, as well as for any service sector, word of mouth is the most effective way of advertising. Therefore, the best advertisement for your language school is qualified staff and a pleasant atmosphere.

5 PRODUCTION PLAN

Opening a language school includes the following steps:
  • Registration with government bodies. In accordance with Art. 91 of the Federal Law "On Education in the Russian Federation", additional education is subject to licensing. The state license fee is 6,000 rubles. It should also be determined whether you will give students a document confirming the passage of a particular language course. To issue a state-approved document on graduation, you must obtain a license in the local department of the Ministry of Education. The simplest option is to organize a language school with individual teaching activities - in this case, a license will not be needed, but there will also be no right to issue documentation confirming the qualifications of graduates. To implement the project, it is planned to create a language school without the right to issue a state-standard document. In order to conduct business, an IP with a simplified taxation system is registered (“income” at a rate of 6%). Types of activity according to OKVED-2:
  • Other additional education for children and adults, not elsewhere classified
  • Translation and interpretation activities.
  • Location and choice of office. A good location implies proximity to educational institutions, shopping centers, crowded streets. It is desirable to have free parking and convenient transportation. Also, when choosing a room, it is necessary to pay attention to lighting, sanitary condition, the availability of a bathroom and other technical characteristics. The optimal size of the premises for a language school - from 100 m2 - this area is enough for two classes and a reception with a reception. If you intend to provide individual training services, it is recommended to provide a small office for this.

To implement this project, it is planned to rent an office of 100 m2 with location in one of the sleeping areas. The cost of renting such a renovated building will be on average 70,000 rubles for a city with a population of about 1 million inhabitants. It is planned to accommodate 2 classrooms and a reception hall. One classroom will be specialized for English classes, where classes will be held daily. The second audience will be used for classes in other languages. This division will allow you to competently arrange the space and facilitate the preparation of class schedules.

  • Recruitment. For a language school, the availability of qualified personnel is one of the main parameters, so you should carefully approach the selection of personnel. Search for employees can be carried out as follows: on specialized sites; collecting information through friends; monitoring of teachers in general and private schools, followed by a job offer.

The composition of teachers determines the schedule of the language school. It is assumed that the work schedule will be from 10:00 to 20:00 seven days a week, since the availability of weekend groups will serve more customers.

The average duration of a foreign language course is 4-8 months, or 72-144 academic hours. At the end of the course, students take a test that assesses the level of knowledge acquired during the training. Recruitment in groups is carried out 2 times a month in English and 1-2 times in other languages. The main stream of students falls on evening groups (from 17:00 to 20:00). Small study groups consist of 4-6 people, and large groups of 8-16 people. An even number of students in the group is recommended, because in the learning process you often have to split the group into pairs to complete tasks, which increases the effectiveness of such training.

Table 2 shows the sales plan and revenue calculation for the first year of the functioning of the language school. An implementation plan is prepared taking into account the mode of operation, the number of courses being implemented and their duration. For example, an intensive English course takes 72 academic hours, and a general course takes 144 hours.

Table 2. Implementation plan for the first year of the language school

Name of a foreign language

   Number of courses implemented

   price, rub.

   Revenue RUB.

English

Deutsch

French

Spanish

Italian

Chinese

Japanese

Translation Services

250 rub / 1000 characters

TOTAL

7925000

6 ORGANIZATIONAL PLAN

For the functioning of the language school, it is necessary to form a staff of the following employees: teachers, administrators, accountant, cleaner. The main staff are teachers, because the atmosphere of the educational process, the level of knowledge of students and impressions of the school as a whole depend on their professionalism and sociability. Based on the implementation plan, the language school needs to hire 2 English teachers and 1 teacher for each of the other foreign languages. Thus, the teaching staff will be formed of 8 specialists.

When choosing teachers, the following requirements must be presented: the presence of a higher education (preferably linguistic), excellent knowledge of the spoken and written language, work experience of two years, the presence of a proven and comprehensive teaching methodology.

The post of administrator involves shift work - 2 through 2, so you will need to hire two employees. Requirements for the administrator are limited by a high level of discipline, responsibility, sociability. Their responsibilities include receiving calls and letters, registering clients for classes, forming groups, scheduling classes, maintaining groups on social networks, providing the school with the necessary equipment. For the cleaning lady and accountant, part-time employment is assumed.

Also needed is the head of the school, who will serve as the manager. All personnel are subordinate to him, he makes a decision on hiring employees, builds a marketing policy, interacts with a counterparty.

The total salary fund will be 274,000 rubles, and taking into account insurance payments - 356,200 rubles per month.

Table 3. Language School Staff

General payroll

Staff

   The number of employees

   Salary for 1 employee (RUB)

   Total salary (RUB)

Supervisor

Teacher

Administrator

Cleaning lady (part-time)

Accountant (part time)

General fund s / n

274000

7 FINANCIAL PLAN

The financial plan takes into account all the income and expenses of the project, the planning horizon is 5 years. To start a project, you need to calculate the amount of initial investment. To do this, you need to determine the cost of furniture, technical equipment of the office and the purchase of training material. Approximately 54% of the initial investment is in furniture and office equipment; 26% of investments are for educational material, and 20% for advertising and registration.

Table 4. Investment costs

Name

   Amount

   The cost of 1 piece, rub.

   Total amount, rub.

Furniture and appliances:




Table (training)

Desk (for the teacher)

Magnetic whiteboard

Educational material

A computer

Wi-fi router

Stationery

Microwave

Wardrobe

Registration:


Registration IP

Production of the press, opening r / s

State duty for a license


Website creation and promotion

Current assets:

Total



6355800

Fixed monthly costs are shown in table 5. Of these, almost 70% of the costs are for employees. Depreciation is charged on a straight-line basis over 5 years. In the monthly costs it is also necessary to provide for the costs of updating the methodological material, since this is an important element of the educational process.

Table 5. Monthly expenses

Thus, fixed monthly expenses of 519153 rubles were determined. The volume of planned revenue is 660,416 rubles per month. It is planned to reach the target indicator for the fourth month of school work.

8 EVALUATION OF PERFORMANCE

The project payback period for initial investments of 635,800 rubles is 7 months. The net monthly profit of the project upon reaching the planned sales volumes will be about 140,000 rubles. It is planned to reach the planned sales volume for the fourth month of work. The return on sales in the first year is 17.5%.

9 POSSIBLE RISKS

To assess the risk component of the project, it is necessary to analyze the external and internal factors. External factors include threats related to the economic situation in the country and markets. To internal - the effectiveness of managing the organization.

Opening a linguistic school carries the following external risks:

    high competition in the current market for paid educational services. Price monitoring, sound pricing and advertising policies, determination and implementation of their competitive advantages will help reduce this risk;

    increase in the cost of rent, which will entail an increase in fixed costs and may affect the financial condition. It is possible to reduce the likelihood of risk when concluding a long-term lease agreement and choosing a bona fide lessor;

    risks under contracts with suppliers of training materials. It is possible to reduce this risk by observing the requirements of the Civil Code of the Russian Federation and other legislative acts when concluding contracts, selecting reliable suppliers, determining the amount and procedure for compensation by the supplier for damage caused;

    seasonality of the business, which reduces the demand for educational services in the summer months. It is possible to mitigate the risk when developing a marketing strategy, an effective advertising policy that involves holding promotions and bonuses.

Internal risks include:

    failure to meet planned sales. It is possible to reduce this risk with an effective advertising campaign and competent marketing policy, involving various promotions and bonuses;

    lack of qualified specialists. This risk will be mitigated by monitoring the staff of other schools and offering them the opportunity to combine work, as well as careful selection of staff for interviews, cooperation with universities that train translators and foreign language teachers;

    decrease in the reputation of the institution in the circle of the target audience with errors in management or a decrease in the quality of services. It is possible to mitigate the risk with constant monitoring of the quality of services, receiving feedback from customers of the institution and taking corrective measures.

10 APPENDICES



 


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