business plan for a primary school

School Business Plan Template

Written by Dave Lavinsky

School Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their schools.

If you’re unfamiliar with creating a school business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a school business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a School Business Plan?

A business plan provides a snapshot of your school as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a School

If you’re looking to start a school or grow your existing school, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your school to improve your chances of success. Your school business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Schools

With regards to funding, the main sources of funding for schools are donations and gifts, tuition, personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for schools.

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How to write a business plan for a school.

If you want to start a school or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your school business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of school you are running and the status. For example, are you a startup, do you have a school that you would like to grow, or are you operating a chain of schools?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the school industry.
• Discuss the type of school you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of school you are operating.

For example, you might specialize in one of the following types of schools:

• Private K-12 school : this type of school typically charges tuition, and may be affiliated with a religious organization, or specialize in a particular learning method.
• Charter school: this type of school offers primary or secondary education for a tuition, and may receive some public funding, and/or donations. These schools require their students to take state-mandated exams.
• Special subject school: this type of school specializes in teaching a specific subject, such as driving, first-aid, self-defense, fine arts, language, or general tutoring.
• Preschool: this type of school typically serves children who are aged 3 and 4. These schools prepare young children to enter formal education, and are funded by some combination of tuition, donations, and government grants.

In addition to explaining the type of school you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of students served, the number of students accepted into elite formal education institutions, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the school industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the school industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your school business plan:

• How big is the school industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your school? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your school business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: families with elementary-aged children, families with high-school-aged children, families with preschool children.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of school you operate. Clearly, families with high schoolers would respond to different marketing promotions than families with preschoolers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other schools.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes public schools, virtual schools, and families who do homeschooling. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of students do they serve?
• What type of school are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide specialized instruction, either in subject or in method?
• Will you offer courses or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a school business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of school that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide religious-focused K-8 education, college preparatory courses, or single-subject instruction like driving or fine arts?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the courses and/or extracurricular activities you offer and their prices.

Place : Place refers to the site of your school. Document where your company is situated and mention how the site will impact your success. For example, is your school located in a growing neighborhood, in the city center, or will you operate purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your school marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your school, including answering calls, planning and delivering instruction, applying for grants, fundraising, performing administrative tasks, overseeing instructors, handling discipline, scheduling and monitoring extracurricular activities, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to enroll your Xth student, or when you hope to reach $X in revenue. It could also be when you expect to expand your school to a new city.  

Management Team

To demonstrate your school’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing schools. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in running a school or experience with public school administration or who has served on a public school board.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you enroll 100 or 1,000 students per semester, and/or offer extracurricular activities? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your school, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a school:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your school location lease or a list of elective courses or extracurricular activities you will offer.  

Writing a business plan for your school is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the school industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful school.

Don’t you wish there was a faster, easier way to finish your School business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

• Sample Business Plans
• Education & Training

School Business Plan

High demand and a recurring revenue model make starting a school business a lucrative and rewarding profession.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your school business? You’re at the right place. Our school business plan template will help you get started.

Free Business Plan Template

Download our free school business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A School Business Plan?

Writing a school business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your Business: Start your executive summary by briefly introducing your business to your readers.This section may include the name of your school business, its location, when it was founded, the type of school business (E.g., private schools, charter schools, virtual schools), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Educational programs & services: Highlight the school services you offer your clients. The USPs and differentiators you offer are always a plus.For instance, you may include education programs, extracurricular activities, special education services, etc as your services.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring students, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Public schools
• Private schools
• Charter schools
• Magnet schools
• Virtual or online schools
• Boarding schools
• International schools
• Religious schools
• Describe the legal structure of your school, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your school’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.For instance, families looking for additional education or extracurricular activities are the ideal market for private schools generally.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.For instance, the US education industry is to be $3.12 trillion by 2030, so it is crucial to define the segment of your target market and its growth potential.
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your school from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.For instance, personalized learning or STEM education is getting important; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your school business, such as education laws & regulations, government accreditation, teacher certificate & licensing, health & safety regulations, etc.

Here are a few tips for writing the market analysis section of your school business plan::

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to students. To write this section should include the following:

• Education programs
• Extracurricular activities
• Counseling & Guidance
• Special education services
• Transportation services
• Food services
• Testing and assessments
• Describe specialized programs: Highlight any specialized programs or services your school provides in this section. Extracurricular activities, artistic initiatives, sports teams, STEM efforts, language immersion programs, and advanced placement courses may fall under this category.
• Student leadership programs: If your school has a vibrant student leadership program that encourages students to grow as leaders, participate in volunteer work in the community, and actively contribute to the improvement, then mention it here.
• Additional Services: Mention if your school business offers any additional services. You may include services like, after-school programs, school transportation, food services, parent education & involvement, etc.

In short, this section of your school plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.For example, specialized programs, educational philosophies, experienced faculty, or a strong track record of academic achievements could be some of the great USPs for school business.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new students.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include targeted marketing, personalized sales approach, referral programs, conversion strategies, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance excellent services, alumni engagement, parental engagement, etc.

Overall, this section of your school business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your school business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees or teachers needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your school business. Your operational processes may include enrollment process, staffing & human resources, classroom management, finance & budgeting, etc.
• Equipment & Software: Include the list of equipment and software required for school, such as whiteboards & projectors, student information systems, learning management systems, communication & collaboration tools, etc.Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your school business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your school, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.It should include, key executives(e.g. principal), senior management, and other department managers (e.g. operations manager, admission manager, facilities manager) involved in the school business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your school, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet : Create a projected balance sheet documenting your school business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting a school business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your school business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample school business plan will provide an idea for writing a successful school plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our school business plan pdf .

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Frequently Asked Questions

Why do you need a school business plan.

A business plan is an essential tool for anyone looking to start or run a successful school business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your school.

How to get funding for your school business?

There are several ways to get funding for your school business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your school business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your school business plan and outline your vision as you have in your mind.

What is the easiest way to write your school business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any school business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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School Business Plan Template

Written by Dave Lavinsky

School Business Plan

You’ve come to the right place to create your school business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their schools.

Sample Private School Business Plan

Below is a school business plan template to help you create each section of your own education business plan.

Executive Summary

Business overview.

Southside Academy, located in St. Paul, Minnesota, is a private school that has been providing quality education to the community’s school children since 2017. Southside Academy teaches elementary, middle school, and high school students in a wide range of subjects including mathematics, science, and history. We aim to provide a welcoming and inviting environment where every student can reach their highest potential.

We promote academic, artistic, and athletic excellence in a close-knit learning environment, with a challenging curriculum that cultivates intellectual curiosity. Furthermore, we offer a low teacher-to-child ratio, where teachers can build close connections with their students as they help them excel. We develop confident, continual learners by establishing behavioral supports and the social culture needed for students to achieve social, emotional, and academic success.

Service Offering

Southside Academy offers a premium private education at an affordable tuition fee. We provide a challenging education where students can explore their true potential and a safe space where they can freely discover and express themselves. Our students range from 1st grade to 12th grade and we teach a wide variety of subjects including:

• Basic Mathematics
• Physical Education

Customer Focus

Southside Academy primarily serves families within a 5-mile radius of the school’s location. The area is home to thousands of middle and upper-class families looking for high-quality education for their children. Before the school was built, the area was underserved and many children had to travel far to attend quality private schools.

Management Team

Southside Academy’s founder is Mike Brown who has been working as a teacher for more than 20 years. Mike has taught at several public schools in the region but saw a great demand for private education. He noticed that the current location of the school was underserved and set out to create a school to serve this population. Mike Brown has successfully led Southside Academy as its principal since the school’s inception and will continue to do so for the foreseeable future.

Mike Brown is supported by a team that has experience teaching students, managing finances, and running businesses. Specifically, our team has solid experience in being effective teachers, connecting to different types of students, and achieving key goals.

Success Factors

Southside Academy is able to achieve success by offering the following competitive advantages:

• Location: Southside Academy’s location is near the center of town, giving members of our community easy access for parents and their children.
• Passionate and Skillful Teachers: Southside Academy hires teachers with strong academic backgrounds who are skillful in handling all types of children.
• Low teacher-to-student ratio: We provide a low teacher-to-student ratio so that every student gets personal attention from teachers to reach their highest potential.
• Affordable, quality education: Most of the schools in the area offer their services at a very expensive price. Our fees will be moderately low so that good education is accessible to all families.

Financial Highlights

Southside Academy is currently seeking additional donations of $600,000 in order to fulfill our mission. The breakdown of the funding may be seen below:

• Salaries: $200,000
• School Materials (books, toys, desks, chairs, etc): $180,000
• Administrative Expenses: $120,000 to pay for lease costs, ongoing operational expenses, and marketing.
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Southside Academy.

Company Overview

Who is southside academy, southside academy’s history.

Southside Academy started as an idea from a group of school teachers, including Mike Brown. The teachers were university pals who are passionate about teaching and children. They have seen the gaps in education in St. Paul, Minnesota, and wanted to create a school that elevates the academic environment for the children of this area.

Their plans to build a school started in 2015, but it was only until April 2016 that they finally completed all the paperwork and met the legal requirements. Since then, Southside Academy has achieved the following milestones:

• Found a location and built the school
• Developed the school’s name, logo, and website
• Determined curriculum
• Hired teachers and other key employees

Southside Academy’s Services

Industry analysis.

Education is an essential foundation for a thriving society. It’s more important than ever before that every child has access to affordable, high-quality education. While public schools are an essential option for many low-income families, the education provided by private schools often results in higher test scores and more students moving on to top-tier universities.

The private school industry has experienced steady growth in the past five years. The key industry drivers are economic growth, the rise in numbers of K-12 students, an increase in the number of families with both parents working, and government initiatives to support education.

According to Polaris Market Research, this growth is expected to continue with a forecasted compound annual growth rate of 6.6% from now until 2030. This shows that Southside Academy has great potential to keep growing and expanding. We will have ample opportunities to grow our curriculum and offer services to students that help them reach their highest potential.

Customer Analysis

Demographic profile of target market.

Southside Academy serves the families and children of St. Paul, Minnesota. The area is mostly populated by young couples and new families that have disposable income and can pay a premium for their children’s education.

The precise demographics of the town in which our location resides are as follows:

Customer Segmentation

We primarily target the following three customer segments:

• Young children
• Young couples

Competitive Analysis

Direct and indirect competitors.

Southside Academy faces competition from other schools with similar profiles. A description of each competitor company is below.  

Waters Independent School

Founded in 1968, Waters Independent School is a non-profit and tax-exempt independent school system. The school is governed by an independent Board of Trustees and offers preschool through eighth-grade programs. WIS is accredited by the state’s Council of Independent Schools (FCIS).

Waters Independent School has small class sizes with low student-to-teacher ratios. Further, WIS’ Programs include a strong academic foundation coupled with programs in the arts, physical education, media/technology, foreign language, and extracurricular areas.  

Hill Preparatory School

Founded in 1923, Hill Preparatory School is a private, non-sectarian, coeducational, college preparatory day school. It offers PK-12 programs in a safe, student-centered environment. HPS supports its students through the challenges of the school year with one-on-one attention from dedicated faculty, robust services like The Learning Center and the College Center, and the most advanced educational technology. The campus spans 28 acres and has a new 60,000+ square foot facility.  

Future Leaders Preparatory School

Founded in 1968, Future Leaders Prep is a private school for PreK3-8th grade. FLPS offers preschool, elementary school, and middle school programs and offers the International Baccalaureate program of study for all students. Teachers are endorsed in gifted education through a master’s level grant with [local University]’s College of Education Gifted Program. In addition to the school, Future Leaders offers community programs such as music, dance, art, and theater lessons through the Community School of the Arts, youth sports in the Community School for Sports, and the 7-week summer camp.

Competitive Advantage

There are many schools in St. Paul, Minnesota but none of them provides the same quality of education that Southside Academy provides, specifically the following:

Marketing Plan

Brand & value proposition.

The Southside Academy brand will focus on the school’s unique value proposition:

• Providing premium education at an affordable price
• Providing a supportive and challenging place for children to learn
• Giving parents the assurance that their children will reach their full potential

Promotions Strategy

The promotions strategy for Southside Academy is as follows:

Social Media

Southside Academy will invest heavily in a social media advertising campaign. The school will utilize social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Publications

The school will place print advertisements in key local publications, including newspapers, area magazines, and business newsletters. Additionally, Southside Academy will print brochures and place them in specific locations frequented by target individuals.

Website/SEO

Southside Academy will invest heavily in developing a professional website that displays all of the features and benefits of Southside Academy. It will also invest heavily in SEO so that the school’s website will appear at the top of search engine results.

Direct Mail

Southside Academy will blanket neighborhoods with direct mail pieces. These pieces will provide general information on Southside Academy and incentives to enroll.

Southside Academy prices its tuition at a moderate price so our students and their families feel they are getting great value when choosing our school.

Operations Plan

The following will be the operations plan for Southside Academy.

Operation Functions:

• Mike Brown is the school Principal. He manages the teachers, directs the direction of education, and serves as the head of the school.
• Mike is joined by Amanda Johnson who acts as the Administrative Assistant for the school. She helps Mike with the operations of the school as well as the marketing and administrative functions.
• Mike has hired an extensive team of highly qualified educators. Together, they teach dozens of subjects, including biology, chemistry, social studies, and mathematics. Every teacher that works for Southside Academy is passionate about education and pushing their students to reach their highest potential.

Milestones:

Southside Academy expects to achieve the following milestones in the following six months:

• 3/202X Kickoff of promotional campaign to attract new students
• 4/202X Start donation campaign
• 5/202X Hire new teachers for the upcoming year
• 6/202X Achieve donation/funding goal
• 7/202X Finalize list of incoming students for next year
• 8/202X Start next school year

Financial Plan

Key revenue & costs.

Southside Academy’s revenues come from student tuition fees and donations from both individuals and corporations.

The major costs for the company will be staffing, marketing expenses, location maintenance, equipment, and materials.

Funding Requirements and Use of Funds

Southside Academy is currently seeking additional fundraising and capital of $600,000 in order to fulfill our mission. The breakdown of the funding may be seen below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Year 1: 200
• Year 2: 300
• Year 3: 400
• Year 4: 500
• Year 5: 600
• Tuition rate per year: $10,000

Financial Statements

Income statement.

Balance Sheet

Cash Flow Statement

School Business Plan FAQs

What is a school business plan.

A school business plan is a plan to start and/or grow your school business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your School business plan using our School Business Plan Template here .

What are the Main Types of School Businesses?

There are a number of different kinds of school businesses, some examples include: private K-12 school, charter school, virtual schools, independent schools, primary school, secondary education, or preschool.

How Do You Get Funding for Your School Business Plan?

School businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a School Business?

Starting a school business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A School Business Plan - The first step in starting a business is to create a detailed school business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your school business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your school business is in compliance with local laws.

3, Register Your School Business - Once you have chosen a legal structure, the next step is to register your school business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your school business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary School Equipment & Supplies - In order to start your school business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your school business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful school business:

• How to Start a School

Other Helpful Business Plan Templates

Nonprofit Business Plan Template

School Business Plan Template [Updated 2024]

School Business Plan

If you want to start a school or expand your current school, you need a business plan.

The following school business plan template gives you the key elements to include in a winning business plan. In addition to this template, a well-crafted plan will include market research to help you better understand the school industry, market trends, your competitive advantage and your target market. It will also help you craft a smart marketing strategy and a strong financial plan.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key components of an education business plan to help you launch a successful school. This can be used for a variety of school business plans, including a private school business plan, a charter school, public schools, independent schools, virtual schools, primary or secondary education.

• Executive Summary – The executive summary provides an overview of your business opportunity and summarizes the business plan.
• Company Overview – The company overview includes information about your business concept, academic and extracurricular activities offered, and legal structure.
• Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the education industry.
• Customer Analysis – The customer analysis provides an overview of your target customers.
• Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.
• Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy, examples of marketing materials, and search engine optimization plan.
• Operations Plan – The operations plan includes information on your school’s day-to-day operations and processes.
• Management Team – The management team section includes a profile of the organizational structure, school leaders, their experience and responsibilities.
• Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement and balance sheet.

Download our business plan template (including a full financial projections model and financial statements).

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School Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Here's how you establish a profitable private school.

Launching a private school is an ambitious endeavor that can have a profound impact on the lives of students and the community at large.

Whether you're an educator with years of experience or an entrepreneur with a vision for innovative learning, establishing a private school requires meticulous organization and a commitment to excellence in education.

In this blog post, we'll navigate you through the crucial stages of opening a private school, from the foundational idea to the celebratory first day of classes.

How you should prepare to establish a private school

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a private school because it will define the educational approach, the curriculum, the extracurricular activities, and the type of students you aim to attract.

This decision will influence your school's location, architecture, class sizes, teacher recruitment, tuition fees, and marketing strategy. A well-defined concept can help your school stand out in a competitive market and draw in families looking for a specific type of education for their children.

In essence, selecting the right concept is like deciding on the educational philosophy and values you want your school to embody before you start shaping the learning environment and engaging with the community.

To assist you in making an informed choice, we have summarized the most popular concepts for private schools in the table below.

Pick an audience

When establishing a private school, it's crucial to tailor your educational offerings to the specific audience you aim to serve.

For instance, if you're looking to attract families who value academic excellence, your school might focus on a rigorous curriculum with advanced placement courses and a strong STEM program. You'd likely choose a location that's in a community known for valuing education and possibly near academic enrichment centers or libraries.

Alternatively, if your target audience is parents who are interested in a holistic education for their children, your school might emphasize a curriculum that includes the arts, outdoor education, and social-emotional learning. The school's environment might be designed with open, natural spaces and located in a serene setting.

Identifying your target audience is essential because it shapes every aspect of your private school, from the curriculum and extracurricular activities to the design of the campus and its location. It's akin to customizing a service; you consider what the families and students need before shaping your educational product. This ensures that your school meets their expectations and needs.

Moreover, understanding your audience enables you to communicate with them more effectively. If you know who you're trying to attract, you can determine the best channels to reach them, such as educational fairs, local community events, or online platforms frequented by parents.

In our business plan for a private school , we have outlined different customer segments that could be relevant for your educational institution.

To provide a clearer picture of potential audiences for your private school, we've compiled a few typical examples below.

Get familiar with the industry trends

When launching a private school, it's crucial to stay informed about the emerging trends in the education sector and integrate them into your school's ethos and curriculum.

Trends in education can give insights into what parents and students are looking for in a school. By embracing these trends, you can attract families who are seeking an educational experience that aligns with contemporary values and prepares students for the future. Additionally, differentiating your school with innovative programs can set you apart from more traditional educational institutions.

For instance, we regularly update our business plan for a private school to reflect the latest educational trends. We believe this is essential for developing a competitive and forward-thinking educational environment.

One significant trend is the emphasis on STEM (Science, Technology, Engineering, and Mathematics) education, as these areas are critical for future job markets. Schools that offer robust STEM programs can appeal to parents who want to ensure their children are prepared for technological advancements.

Another trend is the integration of social-emotional learning (SEL) into the curriculum, which helps students develop crucial life skills such as empathy, resilience, and effective communication.

Environmental sustainability is also becoming a key concern, with schools incorporating green practices and teaching students about ecological responsibility.

Moreover, in our digital age, offering coding and digital literacy courses can give students a competitive edge, while also enhancing their problem-solving and critical thinking skills.

We have compiled a list of more trends in the table below.

However, there are also some declining trends.

For example, traditional rote learning methods are becoming less popular as they do not foster the critical thinking and creativity that modern educational philosophies emphasize.

Also, schools that lack technological integration may fall behind, as digital skills are increasingly seen as essential for academic and professional success.

Finally, with a growing emphasis on personalized education, one-size-fits-all curriculums are being questioned for their effectiveness in meeting individual student needs.

Choosing the ideal location

Choosing the optimal location for your private school is a critical decision that can significantly influence its success and sustainability. This decision requires careful consideration of several key factors.

Understanding the local demographics is the first step. A thorough analysis of the community's composition, including the number of families, average income, and education levels, will help you determine the potential demand for your school. An area with a high concentration of families with school-aged children is ideal.

The school's visibility and accessibility are crucial. A location that is easily noticeable and reachable by various means of transportation can make it more attractive to parents. Look for areas with safe pedestrian pathways and convenient access to public transportation or major roads for easy drop-off and pick-up.

While competition from other private schools can be challenging, it also indicates a demand for educational services in the area. Researching the local educational landscape to identify gaps in the market can help your school stand out by offering unique programs or curricula.

Rent or property costs must be weighed against the potential for enrollment. Prime locations come at a premium, but they may justify the expense with higher visibility and accessibility. It's essential to ensure that the cost aligns with your financial projections and long-term budgeting.

Negotiating favorable terms for purchasing or leasing property can have a significant impact on your school's financial health. This might include long-term leases with fixed rates or options to purchase the property in the future.

Consider the growth potential of the neighborhood. Is the area developing in a way that could increase local enrollment? The ability to expand your facilities in the future without relocating can be a significant advantage as your school grows.

Proximity to community amenities, such as parks, libraries, and sports facilities, can enhance the appeal of your school to prospective families. These resources can be integrated into your school's programs and activities.

Using market research and demographic analysis tools can provide valuable insights into the best locations for your private school. These tools can help pinpoint areas with families that match your target demographic and are likely to value the educational services you offer.

The choice between a suburban and urban setting will depend on your school's mission and the community you aim to serve. Urban areas may offer a diverse student population and proximity to cultural institutions, while suburban areas might provide a more tranquil setting and potentially more space for facilities.

Being near residential developments or business districts can provide a steady stream of potential students, especially if your school offers programs that align with the needs of these communities, such as extended hours or extracurricular activities.

It's also vital to understand local zoning laws, educational regulations, and accreditation requirements to ensure that your chosen location is suitable for a private school. Compliance with these regulations from the outset can prevent costly adjustments and delays.

Finally, assessing the long-term viability of a location is essential. Consider any planned developments in the area that could impact your school, either positively by increasing the local population or negatively by introducing new competitors or raising property costs.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a private school can vary significantly, ranging from $250,000 to $500,000 for a small-scale operation to $1 million to over $5 million for a larger, more established institution with state-of-the-art facilities .

If you want to know the exact budget you will need for your own private school and also get a full detailed list of expenses, you can use the financial plan we have made, tailored to private schools . This excel file is designed to be user-friendly and will provide you with an instant and comprehensive analysis of your future project.

The budget can vary the most due to the location of the school. Prime locations in desirable neighborhoods or areas with high demand for private education tend to have higher property and rental costs, which can significantly increase startup expenses.

The size of the school is another major factor in determining the initial investment. A larger campus not only increases property costs but also requires more staff, classrooms, and resources, leading to higher operational costs.

The quality of facilities and educational resources is another significant factor. High-quality, modern facilities and resources are expensive but can attract more students and potentially justify higher tuition fees. Conversely, starting with more modest facilities can reduce initial costs but may impact the school's competitiveness and appeal.

If the available capital is limited, it's still possible to open a private school, but careful planning and prioritization are essential. The very minimum budget could be around $250,000 to $500,000 if you choose a low-cost location, minimize the size of your operation, lease instead of buy property, and manage much of the administrative work yourself. This approach requires a hands-on strategy, focusing on a niche educational philosophy or curriculum to stand out and reduce complexity and costs.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a private school include facility acquisition or rental, licensing and accreditation, insurance, marketing and advertising, technology and software, staff hiring and training, curriculum development, and a reserve for unexpected expenses.

Acquiring or renting a facility that is safe and conducive to learning is one of the largest expenses. Costs can range from $50,000 to $500,000 or more, depending on the location, size, and condition of the property. This includes classrooms, administrative offices, and outdoor spaces.

Licensing and accreditation are essential for operating legally and ensuring educational standards. These costs can vary widely but typically range from a few thousand to tens of thousands of dollars, including state education department fees and regional accrediting body fees.

Insurance is critical to protect your school against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, professional liability, and workers' compensation. Annual premiums can range from $5,000 to $20,000 or more, depending on the size of the school and the level of coverage.

Marketing and advertising are crucial for attracting students and building a reputation. Initial marketing efforts might cost between $2,000 to $10,000, including website development, online advertising, brochures, and open house events. The amount can vary based on the scale of the marketing campaign.

Investing in technology and software for student information systems, learning management systems, and administrative software is important. Costs can range from $5,000 to $50,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

Hiring and training staff is a significant expense, with initial costs for recruitment, background checks, and professional development. Setting aside $10,000 to $50,000 can help ensure you have qualified teachers and administrative staff. This also includes ongoing professional development and certifications.

Curriculum development is another key expense, which can include purchasing textbooks, licensing educational content, and developing unique programs. Initial costs can range from $5,000 to $25,000, depending on the breadth and depth of the curriculum offered.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved, which could be anywhere from $100,000 to $500,000 or more, to cover unforeseen circumstances.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for private schools .

Business plan and financing

Make a solid business plan.

Embarking on the journey of opening a private school requires meticulous planning and a clear vision, which is why crafting a business plan for a private school is indispensable.

Why is this so important? A business plan is the blueprint of your educational venture. It details your mission, educational philosophy, and the steps you will take to achieve academic excellence. It is also a critical tool for securing funding, as it shows potential investors and financial institutions the sustainability and profitability of your school.

A comprehensive private school business plan should encompass several key elements, including market analysis, financial projections, and operational strategies. Market analysis is crucial as it helps you understand the demand for private education in your area, the needs of potential students and parents, and the competitive landscape. This involves examining local demographics, assessing the performance and offerings of nearby schools, and identifying your school's unique value proposition.

Financial planning is equally vital. This section should detail your anticipated revenue streams, such as tuition fees, grants, and fundraising efforts, as well as expenses like faculty salaries, facility maintenance, and educational materials. It should also include financial statements like cash flow forecasts, income statements, and a break-even analysis. A robust financial plan provides a clear view of your school's fiscal prospects and operational sustainability. You can find a detailed example in our financial plan for a private school .

While there are commonalities between business plans for different types of ventures, a private school business plan has its unique focuses. For instance, it must emphasize academic program development, faculty recruitment and retention strategies, and compliance with educational standards and regulations. Additionally, the plan should address the physical infrastructure of the school, including classrooms, laboratories, libraries, and recreational facilities.

To develop a successful private school business plan, thorough research and realistic financial estimates are essential. Engage with the community to gauge interest and gather feedback on your proposed educational offerings. Consider the scalability of your school, potential for expansion, and how you might diversify your programs to meet changing educational needs.

Special attention should also be given to establishing a strong brand identity and marketing strategy that aligns with the values and expectations of your target audience. Whether it's through academic excellence, innovative teaching methods, or extracurricular enrichment, your school should stand out in a competitive market.

Success in establishing a private school is not solely based on the academic curriculum but also on strategic planning, understanding the educational market, prudent financial management, and effective execution of your operational plan.

Remember, a business plan is not static; it's a dynamic document that should be regularly reviewed and adjusted as your school develops and the educational landscape evolves.

Get financed

Concerned about how to finance your private school? There are multiple avenues to secure the necessary funds.

Financing for a private school can come from diverse sources, including attracting investors, securing loans from banks or financial institutions, and applying for educational grants or subsidies.

Each financing method has its own set of benefits and factors to consider.

Attracting investors means finding individuals or entities willing to provide capital in exchange for equity in the school. This can be advantageous as it doesn't require immediate repayment and can bring in a substantial amount of money.

However, it also involves relinquishing a share of ownership and possibly some degree of control over the school's operations and policies.

For a private school, this might be a viable option if you're looking to establish a school with high-quality facilities, a unique educational approach, or in a location with high demand for private education. To persuade investors, you'll need a robust business plan that shows the school's potential for growth, sustainability, and a clear grasp of the educational sector.

Securing a loan is another common method of financing.

While this option requires repayment with interest, it allows you to maintain complete ownership of the school. Loans can be used for a variety of purposes, such as constructing school buildings, equipping classrooms with the latest technology, or covering initial staffing costs.

Banks usually ask for a down payment or collateral, which might range from 20% to 40% of the loan's value. It's crucial to balance the amount of external financing to avoid overwhelming the school with debt. Ideally, the school's projected income should be sufficient to cover loan repayments while still allowing for educational quality and operational costs.

Grants and subsidies are another option, though they can be more challenging to obtain.

These funds are typically provided by government bodies or foundations that support educational initiatives. Grants and subsidies do not require repayment, but they often have stringent requirements and are highly competitive.

For a private school, grants might not be the primary source of funding but can be instrumental in funding special programs, scholarships, or infrastructure improvements.

To effectively secure financing, whether from lenders or investors, it's essential to prove the feasibility and financial viability of your private school.

This involves creating a detailed business plan that includes market analysis, an understanding of the educational landscape, comprehensive financial projections, and a strategic plan for student recruitment and retention. Your business plan should also emphasize what makes your school unique, such as specialized curricula, exceptional faculty, or innovative teaching methods.

Lenders and investors will evaluate your school based on criteria such as the credibility of the management team, the value of collateral offered, and the strength of the business plan.

They will scrutinize the financial projections of your school to determine if you can generate sufficient revenue to cover operational costs, repay debts, and still achieve educational excellence. A thorough understanding of the educational market, including trends, demographics, and competitive analysis, will bolster your case.

Below is a summary table of the various financing options mentioned for opening a private school, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Opening and operating a private school involves meticulous planning and compliance with various regulations and requirements to ensure the safety, education quality, and well-being of your students, as well as to safeguard your institution.

The specific permits, licenses, educational department regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need will differ based on your location, but there are common standards that are applicable in many areas.

First, you'll need to secure the necessary business permits and licenses.

This typically includes an educational institution license from your city or state, and possibly a business license. Depending on the services provided, you may also need additional certifications, such as a child care license if you offer pre-kindergarten programs, or accreditation from recognized educational bodies.

It's imperative to consult with your local government and educational authorities to understand the specific requirements for your region.

Regarding educational department regulations, private schools must comply with curriculum standards, teacher certification requirements, and student safety policies to ensure a high-quality educational environment.

This includes background checks for staff, adherence to building codes for educational facilities, and regular training for employees on emergency procedures. Educational department inspections are conducted to ensure compliance with these regulations. The frequency of inspections can vary, but they typically occur at least once every few years or more often if there are complaints or previous issues. Some jurisdictions may also require a pre-operational inspection before the school can open.

Non-compliance with educational department regulations can result in consequences ranging from fines to the revocation of the school's license to operate.

In severe cases, non-compliance can lead to legal action or the school's closure. It's crucial to take these regulations seriously and ensure your private school complies with all educational standards and safety requirements.

Insurance is another essential aspect of protecting your private school. At a minimum, you'll need general liability insurance to cover accidents or injuries that occur on your premises.

Property insurance is also vital to protect the school's physical assets from damage or theft. If you employ staff, workers' compensation insurance will likely be mandated by law to cover injuries or illnesses that occur as a result of their work.

Additionally, professional liability insurance, also known as errors and omissions insurance, might be prudent, as it can protect your institution in case of claims of educational malpractice or negligence.

Furthermore, considering student accident insurance could be beneficial to cover injuries that students may sustain while at school or during school-related activities.

Business Structure

The three common structures for opening a private school are Nonprofit Corporation, For-Profit Corporation, and LLC (Limited Liability Company). Each has their unique features and implications for your educational institution.

Please note that we are not legal experts (we specialize in educational consulting and financial planning) and that your choice should be based on the level of control you wish to maintain, the funding mechanisms you plan to use, your tax preferences, and your vision for the school's growth and legacy.

In simple terms, a Nonprofit Corporation is designed for institutions that operate for public benefit and can access grants and tax-exempt status. A For-Profit Corporation is aimed at generating profits for shareholders and has different tax implications. An LLC offers flexibility and protection, with potential benefits for smaller private schools.

Consider your long-term objectives, and consult with a financial advisor or attorney to make the best choice for your private school.

We’ll make it easier for you, here is a summary table.

Getting started to establish a private school

Offer development, design and lay out.

Designing and laying out your private school for operational efficiency and an optimal learning experience requires meticulous planning and strategic implementation.

Let's explore how you can accomplish this, focusing on student flow, balancing facility needs with budget, and ensuring health and safety.

Firstly, envisioning student flow is crucial.

Your school's design should facilitate a natural progression from the entrance to classrooms, administrative offices, the library, cafeteria, and recreational areas. This flow should be logical, minimizing congestion and ensuring a smooth transition from one area to the next. Place interactive displays or student work in common areas to engage students and celebrate their achievements.

This setup not only promotes a sense of community but also encourages students to take pride in their school environment.

Regarding the design to facilitate this flow, consider the layout's openness and accessibility.

Wide corridors, clear signage, and a logical arrangement of the space promote easy movement and a safe environment. The administrative area should be clearly marked and separate from the academic zones to reduce distractions and maintain a focused learning atmosphere. If your school includes recreational spaces, ensure they are comfortably distanced from classrooms to prevent noise interference.

Balancing the need for high-quality facilities with budget constraints is a challenge many schools face.

Start by prioritizing essential facilities that directly impact the quality of education, such as well-equipped classrooms and science labs. These are worth investing in because they are the core of your school's educational offerings. For other items, consider partnering with local businesses or applying for grants to fund technology or sports equipment.

Additionally, plan for facilities that offer versatility and adaptability, like multi-purpose halls or modular classrooms, to get the most value for your investment.

Health and safety in the school layout are non-negotiable. Your design must incorporate zones designated for different activities to prevent accidents and ensure a secure environment. For example, separate areas for sports, dining, studying, and relaxation ensure that each aspect of school life is contained and managed effectively. Install handwashing stations at key points, especially near the cafeteria and restrooms, to encourage regular hand hygiene among students and staff.

Specific protocols for emergency procedures, classroom cleanliness, and maintenance are crucial for safety and compliance. Implement a system that ensures all facilities are regularly cleaned and maintained, with safety equipment like fire extinguishers and first aid kits readily accessible.

Train your staff thoroughly in health and safety practices, emphasizing the importance of regular drills, maintaining a clean environment, and monitoring student well-being.

Regularly review and update these protocols to comply with local education regulations and best practices.

Craft your offer

Your curriculum and educational programs will be the cornerstone of your private school's success (or the reason for its struggles).

To begin, understand the educational needs and preferences of your target market through direct engagement, such as parent-teacher meetings, feedback forms, and social media interactions, as well as indirect research, like analyzing educational trends in your region and reviewing the offerings of successful competitor schools.

Once you have a comprehensive understanding of what parents and students are looking for, you can start to develop a curriculum that not only meets their educational needs but also distinguishes your school from others.

Incorporating local culture and global perspectives into your curriculum is an excellent way to enhance its relevance and appeal. This approach not only prepares students for local community involvement but also equips them with the skills needed to compete in a globalized world. Forge partnerships with local organizations and international educational institutions to provide a diverse range of learning experiences. This knowledge allows you to plan your educational programs with a balance of local relevance and international standards, offering special programs that can attract parents looking for a comprehensive education for their children.

To ensure your school's educational offerings stand out in a competitive market, focus on innovation and excellence.

This can be achieved by offering specialized programs that are rare to find elsewhere, such as STEAM (Science, Technology, Engineering, Arts, and Mathematics) initiatives, language immersion programs, or courses that focus on environmental stewardship and sustainability. Sharing the success stories of your alumni and the achievements of your current students can also add a unique appeal.

Ensuring consistency and quality in your educational delivery involves setting high standards and clear learning outcomes.

This can include a well-structured curriculum, ongoing professional development for your teaching staff, and regular assessments to monitor student progress. Consistency is key to building trust with parents and students, as they will know exactly what to expect in terms of educational quality and student support. Invest in high-quality teaching resources and technology, and be prepared to continuously update your curriculum to ensure it meets the highest educational standards.

Additionally, utilizing feedback from students and parents is crucial for the continuous improvement and refinement of your school's educational programs. Create channels for feedback, such as suggestion boxes, online forums, and parent councils, to understand what your stakeholders appreciate and where there might be room for enhancement.

Be open to constructive criticism and willing to implement changes based on stakeholder input. This not only aids in refining your educational offerings but also demonstrates to students and parents that you value their opinions, fostering a sense of community and encouraging long-term engagement with your school.

Determinate the right pricing

When opening a private school, it's crucial to establish a pricing strategy that balances profitability with the perceived value of the educational services you provide. Here's a structured approach to setting your tuition fees.

Firstly, you must calculate your costs comprehensively. This includes teacher salaries, administrative staff wages, facility maintenance, utilities, educational materials, technology, extracurricular programs, and any other operational expenses. Understanding these costs is fundamental to ensure that your tuition fees cover them and yield a sustainable profit margin.

Next, examine the competitive landscape. Research other private schools in your area to understand their pricing structures. While you don't need to match or undercut their fees, this information will help you position your school within the market.

Understanding the demographics and economic profiles of the families you aim to attract is essential. Gather insights through community engagement, surveys, or open houses to determine what parents value most in their children's education and what they are willing to pay. This will help you identify a price point that reflects the quality of your school without alienating potential customers.

Psychological pricing can also be applied in the educational sector. For example, setting tuition at $9,950 instead of $10,000 can make the cost seem significantly lower, even though the difference is relatively small. However, you should maintain the perceived prestige and quality of your school, so use this strategy with caution.

The perceived value is critical in justifying your tuition fees. This can be enhanced by the school's academic reputation, the qualifications of your teaching staff, the breadth of your curriculum, and the quality of your facilities. Providing an exceptional educational experience, including personalized attention, state-of-the-art resources, and a safe and nurturing environment, can support higher tuition fees because parents perceive a greater value in the education their children receive.

Consider implementing flexible payment plans or early payment discounts to accommodate different financial situations and encourage timely enrollment. Additionally, offering scholarships or sibling discounts can make your school more accessible and appealing to families with multiple children.

For new programs or expansions, introductory pricing can attract early adopters. Once the program is established and its value recognized, you can reassess the fees based on demand and operational costs.

Online courses or supplementary programs might have different cost structures compared to in-person offerings. Pricing for these should reflect the savings on physical resources while still providing value. Exclusive online discounts or package deals can also incentivize enrollment in these programs.

Finally, be cautious with discounting. While financial aid and scholarships are important for accessibility and diversity, frequent or deep discounts can undermine the perceived value of your school. Use discounts judiciously to maintain the integrity and reputation of your institution.

By carefully considering these factors, you can set tuition fees that reflect the quality of education you provide, meet operational costs, and ensure the financial health of your private school.

Manage relationships with your suppliers

Poor relationships with suppliers could significantly hinder your private school's ability to provide a high-quality education.

On the contrary, building strong ties with educational resource suppliers and service providers will ensure the steady availability of top-notch educational materials and support services.

Regular communication, timely payments, and expressing appreciation for their products and services can foster loyalty and reliability. Be transparent about your expectations and needs, and whenever possible, visit their operations. This deepens your understanding of their processes and challenges, enabling you to work together more effectively.

Additionally, consider long-term contracts for key educational resources to secure better prices and guarantee supply, but also maintain a network of backup suppliers to mitigate risks of shortages.

For managing educational resources, inventory management techniques such as First-In, First-Out (FIFO) are essential. This approach ensures that older resources are used before newer deliveries, reducing the risk of outdated materials. Regularly monitor inventory levels to adjust orders according to curriculum changes and student enrollment, avoiding overstocking and minimizing obsolescence. Implementing a just-in-time (JIT) inventory system can also be effective, where resources are ordered and received as needed for the academic year, though this requires precise forecasting.

Technology can significantly improve resource management and reduce waste in a private school.

Implementing an inventory management system that integrates with student information systems (SIS) allows for real-time tracking of resource levels and usage data. This technology can help predict needs more accurately, streamline ordering processes, and identify trends that can inform curriculum development and educational strategies.

Additionally, digital tools can facilitate better communication with suppliers, enabling more efficient order adjustments and collaboration.

Scaling educational offerings presents challenges such as maintaining curriculum consistency, managing increased costs, and ensuring educational quality. Address these challenges by standardizing teaching materials and processes, training staff thoroughly, and investing in technology that can increase efficiency without compromising educational quality.

Scaling up also means more educational resources, so negotiate pricing with suppliers for bulk purchases without sacrificing resource quality. Quality control becomes even more critical as enrollment increases, requiring strict adherence to educational standards and more frequent reviews.

Implementing effective cost control measures involves scrutinizing every aspect of sourcing and using educational resources and services. Regularly review and negotiate with suppliers to ensure you're getting the best prices without compromising quality.

Also, consider alternative resources that may offer cost savings or seasonal pricing advantages. Utilize technology to track and analyze costs, waste, and resource levels to identify areas for improvement. Reducing waste not only cuts costs but also aligns with sustainable practices, appealing to environmentally conscious parents and stakeholders.

Hire the right people

When opening a private school, you should carefully consider the staff you need to ensure a high-quality educational environment. Initially, you may not need to hire a full complement of staff, but there are certain key roles that are essential from the start.

At the core, your private school will require a team that covers instruction, administration, and support services.

For instruction, you'll need qualified teachers who are experts in their subject areas and have a passion for teaching and developing young minds. A principal or headmaster with strong leadership skills and educational experience is crucial to set the academic standards and oversee the entire school operation.

For administration, administrative staff including admissions officers and office managers are vital to handle the day-to-day operations, manage student records, and communicate with parents and the community. A financial manager or accountant who can oversee the school's budget, payroll, and financial planning is also important.

Support services such as maintenance staff, IT specialists, and school counselors are essential to maintain the school's infrastructure, support the technology needs of the staff and students, and address the emotional and academic well-being of the students, respectively.

Some roles, like extracurricular coaches, specialized subject tutors, or additional administrative assistants, may not be necessary right away and can be added as the school grows and the demand for these services increases. Outsourcing can be a strategic option for certain services, such as IT support or janitorial work, to allow your core team to focus on education and student development.

When hiring, prioritize candidates with the appropriate educational qualifications, teaching experience, and a commitment to fostering a positive learning environment.

For teachers, look for a combination of formal education credentials, teaching certification, and classroom experience. Administrative staff should have experience in educational administration, strong organizational skills, and excellent communication abilities. For leadership roles like the principal, seek out individuals with a proven track record in educational leadership and a vision for school success.

To ensure a good fit with your school's culture and values, consider including teaching demonstrations, interviews with multiple stakeholders, and thorough reference checks in your hiring process.

Seek candidates who are passionate about education and have the adaptability to work in a dynamic school environment.

Finding the right candidates can be challenging, so utilize education job boards, teacher recruitment agencies, and professional education networks. Attending education job fairs and partnering with universities can also be effective strategies. Offering professional development opportunities can attract high-quality candidates looking to advance their careers.

Here is a summary table of the different job positions for your private school, and the average gross salary in USD.

Running the operations of your private school project

Daily operations.

Running a private school efficiently is key to providing quality education and ensuring smooth daily operations. By adopting the right strategies, you can create an environment that is conducive to learning and growth.

Firstly, implementing a School Management System (SMS) tailored to the needs of educational institutions can greatly enhance your administrative efficiency.

Choose an SMS that integrates student information, academic records, and financial management. This integration allows you to monitor student progress, manage class schedules, and handle billing and payments seamlessly.

Many advanced SMS platforms also include communication tools, which facilitate better interaction with parents and students. These tools can support announcements, homework assignments, and even parent-teacher conference scheduling.

For academic management, you'll want software that can track student performance and attendance accurately.

The best systems provide analytics on student grades and attendance patterns, helping you identify areas where students may need additional support. This can lead to targeted interventions and improved educational outcomes.

Effective supplier management is also crucial for a private school, particularly when it comes to educational materials and technology.

Establish solid communication channels with suppliers and set clear expectations about delivery times, product quality, and payment terms. A strong relationship can lead to better service and possibly discounts. It's also prudent to have alternative suppliers to ensure that educational materials are always available when needed.

Creating a positive work environment for your teaching and administrative staff is essential. This includes regular professional development, transparent communication of goals and expectations, and constructive feedback.

Recognizing and rewarding excellent performance can boost morale and motivation. It's also important to create fair work schedules that respect your employees' work-life balance.

Ensuring a positive experience for students and parents begins with the school's atmosphere, the quality of education, and the service provided by your staff.

Train your staff to be approachable, professional, and supportive. Encourage them to know students and parents, making the educational journey feel personalized and attentive.

Maintaining a clean and safe school environment, with clear signage and an organized layout, also contributes to a positive experience.

Effective customer service policies for a private school might include a commitment to educational excellence, clear communication channels for concerns and suggestions, and a system for collecting and responding to feedback.

Make it easy for parents and students to provide feedback, whether through your school's website, parent-teacher meetings, or via official communication channels. Address feedback promptly and constructively, showing that you value their input and are dedicated to continuous improvement.

When handling complaints, you should listen fully before responding. Apologize if necessary and offer a solution, such as additional support or a meeting to discuss the issue further.

Use negative feedback as a chance to refine your educational approach, facilities, or services. Turning a challenging situation into a positive outcome can often result in strengthened trust and loyalty from parents and students.

Revenues and Margins

Know how much you can make.

Understanding the financial dynamics of a private school is crucial for its sustainability and growth.

We have an in-depth article on the financial management of private schools that provides extensive details. Here, we'll highlight some key points.

One important metric for private schools is the average tuition fee per student. This figure represents the average amount a family pays for one child's education per year.

The average tuition fee can vary widely depending on the type of private school. For elite preparatory schools, which offer extensive extracurricular activities and advanced placement courses, the average tuition fee might range from $20,000 to $40,000 annually.

For parochial schools, which may be subsidized by religious organizations, the average tuition fee could be lower, perhaps $5,000 to $15,000 per year.

Montessori and other alternative education schools might have tuition fees that fall somewhere in the middle, potentially $10,000 to $25,000 annually, depending on their programs and facilities.

When it comes to revenue, private schools have a broad range. Urban private schools in affluent areas might see annual revenues of $1 million to $10 million , depending on their size and reputation.

Rural private schools, with a smaller potential student base, might expect annual revenues in the range of $500,000 to $3 million .

Newly established private schools often face lower revenues as they work to attract students and build their reputation. Initial annual revenues might not exceed $250,000 .

Conversely, established private schools with strong alumni networks and high student retention rates can enjoy stable and substantial revenues.

Elite preparatory schools, with their higher tuition fees and often larger endowments, can sometimes exceed $10 million in annual revenue .

Parochial schools may have more variable revenues due to their reliance on both tuition fees and donations from their affiliated religious organizations.

Private schools don't just rely on tuition fees for revenue. They have multiple streams that contribute to their financial health.

If you're looking for inspiration, here's a table that outlines various potential revenue streams for a private school.

Understand your margins

As with any business, understanding the financial health of a private school is crucial for its sustainability and growth. Revenue alone does not paint the full picture; we must delve into the expenses and margins to gauge the true profitability of the institution.

Let's explore the gross and net margins, which are key indicators of a private school's financial performance.

To calculate your own margins and get a precise figure for potential profit, you can adjust the assumptions in our financial model designed for private schools .

The typical range of gross margins for private schools can vary, often ranging from 60% to 80%.

Gross margin is calculated by subtracting the cost of services (COS), which includes direct costs associated with providing educational services such as teacher salaries, classroom materials, and other educational expenses, from the tuition and fees revenue, then dividing this number by the total revenue, and multiplying by 100 to get a percentage.

Net margins consider not only the COS but also all other expenses a private school incurs, such as facility maintenance, administrative expenses, marketing, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete view of a private school's profitability and are typically lower than gross margins, with averages often ranging from 10% to 20% across the sector, reflecting the tighter profitability after all costs are considered.

Different types of private schools—day schools, boarding schools, and specialty schools—can have varying profit margins due to differences in their operational models, scale, and target demographics. Here is a table to illustrate these differences.

It's evident that the margins of a private school are influenced by factors such as the range of programs offered, tuition strategy, and scale of operations.

A broad range of programs can attract more students but may increase operational complexity and costs. Tuition strategy is critical; fees must be competitive yet sufficient to cover costs and yield a profit. Scale of operations can impact cost efficiencies, with larger schools often benefiting from lower per-unit costs.

Ongoing expenses that affect private school margins include teacher salaries, facility maintenance, administrative costs, and marketing. Salaries are a significant expense, as quality education is heavily reliant on skilled staff. Facility costs can vary greatly depending on location and amenities offered, and marketing is essential to maintain and grow enrollment.

Private schools that focus on niche markets, such as Montessori or International Baccalaureate programs, may experience different margin dynamics compared to more traditional private schools.

While niche schools can command higher tuition fees, they also face higher operational costs and potentially limited market size, which can impact overall margins.

External factors such as economic conditions, demographic shifts, and educational trends also play a crucial role in private school margins. Economic downturns can affect families' ability to pay tuition, while demographic trends can influence enrollment numbers. Staying current with educational trends and adapting programs accordingly can help manage these fluctuations.

Addressing the challenge of maintaining healthy margins in the face of rising operational costs is significant. Private schools can counter these challenges through efficient cost management, strategic tuition pricing, optimizing operations for energy efficiency, and investing in technology for administrative productivity.

Regular tracking and analysis of financial performance (which can be done with our financial model specifically for private schools ), including gross and net margins, is essential for ensuring the financial health and long-term viability of a private school.

Implement a strong marketing strategy

Marketing for a private school doesn't have to be an intricate puzzle. We understand that you'll be focused on providing quality education and managing the day-to-day operations of your school, so we'll keep our marketing strategy recommendations straightforward and impactful, as outlined in our business plan for a private school .

Developing a brand for your private school is essential.

Your brand represents how students, parents, and the community perceive and remember your school. It's more than just your emblem or the school colors; it's the culture, educational philosophy, and the experiences you offer. Your brand should mirror the excellence of your educational programs, the environment of your school, and the values you uphold, such as academic excellence, character development, or innovation. A strong brand differentiates your school in a competitive market and fosters a committed community.

Begin your marketing plan by identifying your target audience. Who are the families you aim to attract? What are their priorities? Do they value a rigorous academic curriculum, a strong sports program, arts integration, or a particular educational philosophy? Knowing your audience will shape your branding and promotional efforts.

When it comes to promotion, social media and digital marketing are potent channels for private schools. Platforms like Facebook, Twitter, and LinkedIn are ideal for sharing your school's achievements, events, and educational content.

Provide a glimpse into daily school life, which adds a personal connection and demonstrates the dedication and passion of your staff.

Parent testimonials and student success stories can build credibility and inspire prospective families to consider your school. Educational insights or thought leadership articles can also engage your audience, positioning your school as a leader in education.

Content strategies that resonate with private schools include highlighting unique programs, showcasing student-led projects, celebrating academic and extracurricular accomplishments, and emphasizing community service initiatives. Partnering with local organizations or educational influencers can also increase your visibility.

However, not every tactic will be suitable for your school. For instance, if your school prides itself on a specialized curriculum, broad advertising that doesn't speak to that focus may not be the best investment. Similarly, if your target demographic is local families, international marketing efforts might not be relevant.

Even with a modest budget, there are clever ways to attract new students.

First, consider hosting open house events or educational seminars that can showcase your school's strengths directly to interested families. This not only promotes enrollment but also enhances your school's profile.

You can also offer trial classes or summer programs to give families a taste of your school's offerings.

Collaborating with local businesses and community organizations can extend your reach and build partnerships.

Implementing a referral program can motivate current families to recommend your school to others. Simple referral incentives or recognition programs can be quite effective.

Lastly, never underestimate the influence of word-of-mouth marketing. Encourage your satisfied families to share their positive experiences, perhaps by offering a discount or special recognition for successful referrals.

Grow and expand

We want your private school to thrive and become a beacon of educational excellence. The insights provided here are intended to help you along this journey.

Imagine your private school is already performing well, with a strong reputation and a healthy financial position. Now it's time to consider how to scale and expand your educational services.

There's always potential for greater impact, and we're here to support you in realizing that potential.

Also, please note that there is a 5-year development plan tailored for private schools in our business plan template .

Successful private school administrators often possess qualities such as vision, leadership, a commitment to educational excellence, and the ability to connect with students, parents, and the community. These traits are essential as they guide the strategic growth of their institution.

Before adding new programs or expanding grade levels, consider the existing demand in your community, the compatibility of new offerings with your current curriculum, and how these changes will impact your operations.

Market research is critical in this decision-making process. By understanding the educational needs, demographic trends, and the success of similar programs elsewhere, you can make informed decisions that align with your school's mission and community expectations.

Evaluating the success of current operations involves looking at enrollment trends, parent and student feedback, and operational efficiency. If your school consistently meets or exceeds enrollment targets, receives positive feedback, and operates effectively, it may be time to consider expansion.

Opening additional campuses should be based on clear evidence of demand, a deep understanding of the target demographic, and the financial health of your existing operation.

Franchising offers a way to expand with lower capital risk, leveraging the entrepreneurial spirit of franchisees. However, it requires a strong brand, proven educational systems, and the ability to support franchisees. Opening owned branches provides more control over educational quality but requires more capital and direct management. Each model has its benefits and challenges, and the choice depends on your strategic goals, resources, and preferred growth path.

Digital channels, including online learning platforms and social media, can significantly enhance a private school's reach and educational offerings. Establishing an online presence allows you to cater to students beyond your immediate geographic location, adapting to the increasing demand for flexible learning options.

This strategy requires an understanding of digital education trends, logistics for virtual classrooms, and maintaining educational quality in a digital environment.

Branding is crucial as it differentiates your school in a competitive market. A strong, consistent brand identity across all campuses and platforms can enhance community loyalty and attract new families. Strengthen your brand by ensuring that every interaction reflects your school's values, culture, and commitment to educational excellence.

Maintaining consistency across multiple campuses is challenging but essential. This can be achieved through comprehensive operational manuals, teacher training programs, and quality control systems.

Regular visits and audits, along with fostering a strong, shared culture, help ensure each campus upholds the standards that contributed to your original site's success.

Financial metrics and business benchmarks indicating readiness for expansion include consistent profitability, a robust cash flow, and meeting or exceeding enrollment projections over a significant period.

Additionally, having a scalable business model and the operational capacity to support growth is crucial.

Partnerships with other educational institutions and participation in community events can introduce your school to new families and markets. These opportunities allow for creative collaboration, community engagement, and brand visibility, contributing to your school's growth.

Scaling educational services to meet increased demand involves considerations such as faculty recruitment, facility upgrades, and possibly expanding your campus. Ensuring that your educational delivery can handle the increased volume without sacrificing quality is key.

Finally, it's essential that your expansion efforts stay true to your school's core values and long-term vision. Growth should not come at the expense of the educational integrity and community trust that made your school successful in the first place.

Regularly revisiting your business plan and values can help ensure that your expansion strategies align with your vision and mission, sustaining the essence of your private school as it grows.

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Step 1: school overview, step 2: executive summary, step 3: school services.

• Literacy services
• Numeracy services
• Meeting accreditation standards
• Foundations in science and mathematics
• Foundations in geography and history
• Giving extracurricular activities
• Giving books and school materials

Step 4: Mission Statement and Vision Statement

Step 5: job description, step 6: swot analysis.

• Strengths – What is the ace of your school against your competitors?
• Weaknesses – On what aspects are your school lacking?
• Opportunities – Where does your school excel in teaching?
• Threats – What can make a student leave your school?

Step 7: Market Research

Step 8: sales plan, step 9: publicity plan, step 10: school budget, share this post on your network, you may also like these articles.

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Private School Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Education Sector » Schooling

Are you about starting a private school (nursery, primary or high school)? If YES, here’s a complete sample private school business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a private school. We also took it further by analyzing and drafting a sample private school marketing plan template backed up by actionable guerrilla marketing ideas for private schools. So let’s proceed to the business planning section.

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One of the best things that can happen to anyone is to have a private school. This is one very lucrative business that will continue to rake in money for its owners. As an aspiring entrepreneur who is looking towards starting a business, you should ensure that whatever business you intend to start, you make sure that it is located in an appropriate place.

For example; if you want to start a private school, it will 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 as a matter of necessity to ensure that they carry out a thorough market research and feasibility study of the industry they intend to go into before investing their hard earned money and time.

It is known fact that the demand for private schools is driven by the fact that most public cum government owned schools cannot accommodate every students or potential students in a given geographical location. In some cases, students with special needs cannot cope in public schools hence the need for private schools.

If you think starting a private school business sounds like what you want to do. Then you may want to use the business plan below as a guide.

A Sample Private School Business Plan Template

1. industry overview.

Private schools which is also known in the united states as independent schools, non-governmental, or non – state schools are schools that are not administered by either the local, state or the federal governments; hence, they have the right to select their students and are funded in whole or in part by charging their students tuition fees, rather than relying on mandatory taxation through public (government) funding.

Some private schools have structure in place that offer scholarships to some students, which makes the cost cheaper, depending on a talent such as sport scholarship, art scholarship, academic scholarship the student may be brining to the private school, financial need, or tax credit scholarships that might be available.

The Private Schools industry comprises of primary that is kindergarten through sixth grade and secondary that is seventh through 12th grade) educational institutions that are predominantly funded through enrollment and tuition fees from students and of course from other private sources.

Recent reports released by IBISWORLD shows that the revenue for the Private Schools industry is expected to increase, as the economy continues to recover. The indicated that during the five years to 2016, enrollment decreased, which was a trend attributable to rising costs and competition from charter schools.

However, going forward, in the next five years, household income is anticipated to increase, making it easier for families to afford private-school tuition. Additionally, enrollment declines will lesson, resulting in more stable demand for private schools

In the United States of America and of course in most countries of the world, The Private Schools industry is indeed a large and thriving industry. Statistics has it that The Private Schools industry in the United States of America, is worth $52 billion, with an estimated growth rate of 0.1 percent.

There are about 25,742 registered and licensed (accredited) Private schools scattered all around the United States of America and they are responsible for employing about 644,320 people.

Aside from Catholic schools, which is the second largest sector after government schools, with around 21 percent of secondary enrollments, no other private school can boast of dominating the market; every player in the industry can comfortably compete in the industry.

It is important to state that the barriers to entry into the Private Schools industry are high. As a matter of fact, the private school industry is an industry in which it is pretty difficult for new entrants to establish themselves. So also, the reputation of the private school is of utmost importance, as private schools that have a good history of getting students into prestigious colleges often have the best reputations hence good enrollments.

With this, it is obvious that a new entrant into the private school industry cannot offer this. Reputation indeed is imperative to parents’ decisions when shopping for private school for their wards. This is so because the quality of education cannot be assessed until well after it is complete.

As a major marketing tool, schools need to show parents a track record of admission to elite colleges and universities. Even though this might seem like a saturated 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 private school couple with impressive profile of your faculty members, you are likely going to struggle less to make headway in the industry.

2. Executive Summary

Rolland Gyros International Private School is an international private school that will be located in a well – populated residential estate in Ashville – North Carolina, United States of America.

We are a standard private school that is composed of primary (kindergarten through sixth grade) and secondary (seventh through 12th grade) educational institution that will be predominantly funded through tuition fees and levies from students and of course from other private sources.

Rolland Gyros International Private School is a client-focused and result driven private school that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pockets of our clients (students and parents alike).

We will offer standard and professional teaching services in a highly secured and conducive learning environment to all our students that is primary (kindergarten through sixth grade) and secondary (seventh through 12th grade). We will ensure that we work hard to meet and surpass all our students’ expectations and educational goals whenever they enroll in our tutorial college.

At Rolland Gyros International Private 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 educationist cum teachers in various subjects who are well experienced and passionate in imparting knowledge to students at various learning ladder.

Rolland Gyros International Private School will at all time 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 will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our students.

We have plans to offer learning platforms to people with both learning disability and physical disability (especially the blind, the dumb and the deaf).

Our overall business goal is to position our private school to become the leading tutorial brand in the educational industry in the whole of Ashville – North Carolina, and also to be amongst the top 30 private schools in the United States of America within the first 12 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 Ashville is the right place to launch our private school.

Rolland Gyros International Private School is founded by Dr. (Mrs.) Irene Rolland Gyros and family. She is an educationist per excellence and she has won many awards in the education sector in the United States.

Dr. (Mrs.) Irene Rolland Gyros has both the academic qualifications and experience to run a private school that can favorably compete with other leading private schools not only in Ashville – North Carolina, but also throughout the United States and Canada.

3. Our Products and Services

Rolland Gyros International Private School is going to offer varieties of educational services within the scope of the education board in the United States of America.

Our intention of starting our private school is to soundly educate people in various subjects and of course to make profits from the education cum private schools industry 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;

• Teaching basic literacy and numeracy
• Establishing foundations in science, mathematics, geography, history and other social sciences
• Constantly working hard to meet regulatory accreditation standards
• Administering private funding efforts
• Providing access to extracurricular activities
• Retailing of Educational Books and Materials

4. Our Mission and Vision Statement

• Our vision is to build a highly competitive private school that will become the number one choice for both parents and students in the whole of Ashville – North Carolina.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional and conducive learning environment to students at different level of learning.
• Our overall business goal is to position Rolland Gyros International Private School to become the leading private school brand in the educational cum private school industry in the whole of Ashville – North Carolina, and also to be amongst the top 30 private schools in the United States of America within the first 12 years of operations.

Our Business Structure

It is a known fact that, the success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available roles in the organization. Rolland Gyros International Private School will build a solid business structure that can support the growth of our private school.

We will ensure that we hire competent hands (teaching and non – teaching staff members) to help us build the private school of our dream.

The fact that we want to become one of the leading private school brand 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 in record time. Below is the business structure that we will build Rolland Gyros International Private School;

• Head of The Private School(School Proprietress)

School Administrator

Tutors for Various Subjects – Secondary (seventh through 12th grade)

Tutors for Various Subjects – Primary (kindergarten through sixth grade)

• Accountant / Bursar
• Client Service Executive / Front Desk Officer

Security Officers

5. Job Roles and Responsibilities

Head of the Tutorial College / School Coordinator:

• Responsible for providing direction for the college
• Creates, 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 handling high profile clients and deals
• Responsible for fixing fees and signing business deals (partnership)
• Responsible for signing checks and documents on behalf of the tutorial college
• Coordinates all arms of the tutorial school (tutorial center, adult education, home tutors and special education)
• Evaluates the success of the tutorial college
• Reports to the board of the tutorial college
• Responsible for overseeing the smooth running of HR and administrative tasks for the tutorial school
• Designs job descriptions with KPI to drive performance management for tutors (teachers)
• Regularly hold meetings with key stakeholders (parents 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.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily activities of the private school.
• Effectively teach subject / subjects as assigned by the school administrator
• Accesses the progress of students under their care
• Ensures that students abide by the rules and regulations of the private school
• Contributes his / her quota towards growing the private school
• Receives complaints from parents and channel it to the appropriate quarters
• Handle any other duty as assigned by the school administrator.
• Ensure that students abide by the rules and regulations of the school administrator
• Handles any other duty as assigned by the school administrator.

Marketing Executive

• 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 increase 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)

• Responsible for 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.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Rolland Gyros International Private School
• Serves as internal auditor for Rolland Gyros International Private School

Client Service Executive

• Welcomes / receive parents and 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 parents and students with a personalized customer service experience of the highest level
• Through interaction with parents and students on the phone, uses every opportunity to build parent’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 organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to parents and students when they make enquiries
• Receives parcels / documents for Rolland Gyros International Private School
• Distribute 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

Rolland Gyros International Private 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 private school that can favorably compete in the highly competitive education cum private 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 Rolland Gyros International Private School. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Rolland Gyros International Private School;

As a private school, our core strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in the educational sector. 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 private school in Ashville – North Carolina, it might take some time for our organization to break into the market and gain acceptance via reputation in the already saturated education cum private schools industry; that is perhaps our major weakness.

• Opportunities:

The opportunities in the education cum private schools industry is massive considering the number of parents who would want their wards to perform excellently well in their education and go ahead to be admitted in Ivy league colleges.

As a standard and international private school, Rolland Gyros International Private School is ready to take advantage of any opportunity that comes her way.

Every business faces a threat or challenge at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the private school.

Some of the threats that we are likely going to face as a private school operating in the United States of America are unfavorable government policies that might affect private schools, the arrival of a competitor within our location of operations 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 private school line of business is that the key to attracting students is the educational performance and the pass rate of their students in national exams.

Any private school that has good records will always thrive. The demand for private schools is driven by the fact that most public cum government owned schools cannot accommodate every students or potential students in a given geographical location.

In some cases, students with special needs cannot cope in public schools hence the need for private schools. The 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, your advertisements, and on insurance policy cover. Lastly, it is trendier to find private schools engaging in extra – curricular activities and as a matter of fact, a private school that thrives in sports can leverage on that to attract students who are sports inclined.

8. Our Target Market

As a standard and international private school, Rolland Gyros International Private School is going to offer varieties of educational services within the scope of the education board in the United States of America. Our intention of starting our private school is to soundly educate people in various subjects and of course to make profits from the education cum private schools industry

Our target market as a private school cuts across people (students) of different class and people from different culture background whether African, White, Caucasian, Latinos, Indians, and Asians. We are coming into the education cum private schools industry with a business concept that will enable us work with the students at different learning stages residing in and around Ashville – North Carolina.

Our competitive advantage

Indeed the private schools industry is highly competitive and the entry barriers are high. As a matter of fact, the private school industry is an industry in which it is pretty difficult for new entrants to establish themselves. So also, the reputation of the private school is of utmost importance, as private schools that have a good history of getting students into prestigious colleges often have the best reputations hence good enrollments.

As a major marketing tool, schools need to show parents a track record of admission to elite colleges and universities. We are quite aware that to be highly competitive in the education cum private schools industry means that you should be able to deliver consistent quality service, your students should be able to experience remarkable difference and improvement and you should be able to meet the expectations of both students and parents alike.

Rolland Gyros International Private School might be a new entrant into the education cum private schools industry in the United States of America, but the management staffs and owners of the private school are considered gurus. They are people who are core professionals, licensed and highly qualified educationist / teachers at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees (teaching and non – teaching staff members) will be well taken care of, and their welfare package will be among the best within our category (startups private school in the United States) 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

Rolland Gyros International Private School is established with the aim of maximizing profits in the education cum private 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. Rolland Gyros International Private School will generate income by offering the following tutorial services;

• Teaching High school students various subjects in our private school

10. Sales Forecast

One thing is certain, there would always be parents and students who would need the services of private schools to be able to achieve their educational goals and as such the services of private schools will always be needed.

We are well positioned to take on the available market in Ashville – North Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the private school and our student base.

We have been able to critically examine the private schools cum education market 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 projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Ashville – North Carolina. Below is the sales projection for Rolland Gyros International Private School, it is based on the location of our tutorial center and of course the wide range of tutorial services that we will be offering;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor (private 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 is stiffer competition amongst private 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 private school.

We will also ensure that our students’ excellent results from national exams and other exams speaks for us in the marketplace; we want to build a standard and first – class private school that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our private school to become one of the top 30 private schools in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Ashville – North Carolina but also in other cities in the United States of America.

Rolland Gyros International Private School is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our private school by sending introductory letters alongside our brochure to schools, parents / household and key stake holders in Ashville – North Carolina.
• Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
• Creating a website, allows parents to be able to look you up, and also allows you to post general study tips, giving you an added advantage.
• Use friends and family to spread word about our private school
• Introduce Rolland Gyros International Private School to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
• Post information about Rolland Gyros International Private School on bulletin boards in places like schools, libraries, and local coffee shops.
• Placing a small or classified advertisement in the newspaper, or local publication about Rolland Gyros International Private School
• Using tutorial referral networks such as agencies that will help match students with Rolland Gyros International Private School
• Joining relevant association or body that will enable you network and meet others in same industry.
• Advertising 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 private 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 clients

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 both parents and students in the whole of Ashville – North Carolina which is why we have made provisions for effective publicity and advertisement of our private school. Below are the platforms we intend to leverage on to promote and advertise Rolland Gyros International Private 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 Bill Boards on strategic locations all around Ashville – North Carolina.
• Engage in road show from time to time in targeted neighborhoods in and around Ashville – North Carolina
• Distribute our fliers and handbills in target areas in and around Ashville – North Carolina
• 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

Private schools in the United States of America and of course in all the parts of the world charge students per tem / per session and students have the options of either paying their tuitions before resumption or during the school session.

Private schools generally charge students based on loads of factors, locations, services offerings and extra – curricular activities et al At Rolland Gyros International Private 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

At Rolland Gyros International Private School, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up a private 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 private school’s environment is conducive enough for the students to learn.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. 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 private 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 Rolland Gyros International Private School in the United of America;

• Business incorporation 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 closes, playing field, 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 small scale but standard private school in the United States of America.

Generating Funding / Startup Capital for Rolland Gyros International Private School

Rolland Gyros International Private School is a family business that will be owned and managed by Dr. (Mrs.) Irene Rolland Gyros and her immediate family.

They are the sole financial of the private school which is why they decided to restrict the sourcing of the start – up capital for the private school to just three major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

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 document has 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 numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and of course the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Rolland Gyros International Private 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, to offer quality education to all our students so much so that they can favorably compete with students all over the United States and gain admission to Ivy League colleges.

Rolland Gyros International Private 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.

Primary School Operational Plan

Primary school is where children obtain the most basic yet most important life skills and information. If they are not trained at a young age, they will never succeed in life and will have a hard time adjusting to life’s challenges. Your role as a primary school teacher is to instill knowledge to students through the use of a primary school operational plan .

• 10+ Business Development Strategy Plan Examples
• 10+ Sales Strategy Plan Examples

To help you in creating your own operational plan, here are some primary school operational plan examples in PDF that you can use and download for free. We also included some tips on how to write your own primary school operational plan based on the example we provided.

School Operating Plan Initiatives Example

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Public Primary School Operational Plan Example

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Primary School Operational Plan Outline Example

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The Importance of Operational Plans

The importance of operational plans cannot be understated. Without an operational plan, numerous organizations and institutions would be in chaos and won’t be able to accomplish anything. This is because operational plans provide a blueprint on how organizations conduct their daily operations, not only for businesses but also for nonprofit organizations, government agencies, medical firms, and academic institutions. You may also see quality plan examples & samples .

An operational plan is a detailed document that lists down what an organization will do and implement on a specific time period. The time period varies from organization to organization, and depends what the organization or institution wants to implement or achieve. Not all organizations create a one-year operational plan, nor create a one-month plan. You may also like advertising plan examples .

For example, a medical firm that creates a three-month operational plan for a medical mission it plans to host and organize is different from a company that creates a two-year operational plan for a new product line it plans to introduce and manufacture for its customers. You may also check out sales plan examples .

As previously mentioned, an operational plan lays out the plans the organization wants to implement. An operational plan does not only state the goals it wants to achieve in general, but it also specifically lists down how each goal will be achieved. You might be interested in event plan examples .

The most effective operational plans are detailed and list down alternatives (contingency plan) to make sure the goal is still achieved despite shifting to another process or alternative.

Operational plans are specific, with each goal in the plan answerable by all WH and H questions (“who implements the plan?” “what does the operational plan aim to achieve?” “where will the plan be implemented?” “why is the need to create an operational plan?” and “how will be the plan be implemented?”). You may also see  daily plan examples & samples .

Operational plans make sure organizations stay up and running in their daily operations, be it for a business, a nonprofit organization, a government service, a school, a hospital, or even the army. There are times that these organizations don’t rely on operational plans because it takes a lengthy period to formulate them, as well as long hours of research and the high costs that come with it. You may also like annual plan examples .

But operational plans are not just documents that organizations can just throw away and ignore after a few readings. As previously stated, operational plans keep the organization up and running and provide a blueprint on smart goals they want to achieve.

Primary School Improvement Plan Example

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Primary School Health Improvement Plan Example

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Middle School Lesson Plan Example

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Primary School Operational Plan Template Example

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How to Create a Primary School Operational Plan

1. be specific.

An operational plan loses its purpose if the content is too general. Take note that an operational plan is not an outline but a study which results from extensive research. Although there is no problem making an outline for an operational plan, the outline should have corresponding details with supporting information. A primary school operational plan is no different from other operational plans. You may also see project plan examples .

You should list down all the topics you are planning to discuss within the school year or semester, as well as details on how you will be discussing the said topics.

Here is an example of a one-week lesson plan for a physical education and health teacher:

• Day 1 – classroom discussion on the history of basketball and basic concepts of the game
• Day 2 – classroom discussion on basketball’s most popular teams, and how the game has turned into a worldwide brand. You may also like action plan examples .
• Day 3 – 40-item exam on the topics that were discussed from the previous two days
• Day 4 – gym activity on basketball basics and drills
• Day 5 – gym activity on half-court and full-court games

Similarly, here is an example of a one-week lesson plan for an English teacher:

• Day 1 – classroom discussion on verbs (its concepts and uses)
• Day 2 – classroom discussion on adverbs (its concepts and uses)
• Day 3 – classroom activity in which class will be divided into groups to play adverb and adjective games. You may also check out management plan examples .
• Day 4 – 50-point exam on verbs and adverbs
• Day 5 – students will check the exam from the previous day to test their honesty and integrity skills

2. Set goals

Goal-setting is very important in creating operational plans. It indicates what the individual or organization wants to achieve in the operational plan. For the primary school teacher, the goal is always to provide quality learning to students. Take note that primary school students are still children, aging from 7–12 years old, so teaching them will be challenge but the rewards are definitely fulfilling. You might be interested in work plan examples & samples .

Although the primary goal is to provide quality learning and a memorable teaching experience not only for you but for the students as well, you can always categorize your main goal into sub-goals.

The sub-goals you list down will ultimately help you in achieving your main goal. Here are some goal examples you can write in your operational plan:

Main goal : To use my college degree in primary education with specialization in mathematics to impart numerical knowledge and skills to all the students I will be handling. You may also see audit plan examples & samples .

Sub-goals :

• To teach them number sense and numeration
• To teach them geometry and spatial sense, patterning, and algebra
• To teach them data management and probability

Main goal : Imparting all the knowledge I have accumulated over the years in East Asian history to all the students enrolled in my class. You may also like implementation plan examples .

• To visit the heritage museum before the end of the school year
• To have discussions on films that center on East Asian history
• To focus the class discussions on Japanese and Chinese culture (history, food, demographics)
• To invite professors and academe from other schools to hold class discussions on East Asian history

3. Use time frames for each goal

An operational plan that does not include time frames is like a letter without a heading or a salutation—it is an incomplete document. Time frames are crucial in the actual implementation of an operational plan. Without time frames or time periods in which tasks will be accomplished, the operational plan will be deemed useless. You may also check out business plan examples .

Additionally, massive costs will be incurred by the organization or institutions if there are no specific time frames listed in the operational plan. This is true for businesses who are creating an operational plan for business expansion purposes (for example establishing a new office, hiring new employees, purchasing new office equipment, etc.). You might be interested in job plan examples .

Teachers specifically need to have time frames for their operational plans. This is to allow them to discuss all the lessons they intend to discuss within the school year or semester. Listed below are some time frame examples for primary school teachers:

Primary school teacher A

• Week 1: discussion and exam on addition
• Week 2: discussion and exam on subtraction
• Week 3: discussion and exam on multiplication
• Week 4: discussion and exam on division

Primary school teacher B

• Month 1: basketball discussion and gym activity
• Month 2: soccer discussion and gym activity
• Month 3: volleyball discussion and gym activity

Primary school teacher C

• Weeks 1 & 2: discussion and exam on basic cooking skills
• Weeks 3 & 4: kitchen activity on popular breakfast meals (for example: bacon and eggs, cheese and egg sandwich, pancakes)

4. Coordinate with other teachers

If you are unsure on how to create your own operational plan (even with the operational examples we provided), you can always coordinate and ask advice from other teachers.

Most likely they will have their own operational plan in which you can use as a guide for your own plan. Seasoned teachers or instructors who have been teaching for a long time create the best and most creative operational plans, so its advisable that you approach them. Coordinating with other teachers will also help you build strong relationships with them. You may also see financial plan examples .

5. Edit (if necessary)

Operating plans, similar to other types of documents, need to be checked and revised if needed. You just don’t create an operational plan and apply them directly in your organization. This is true for companies who use the operational plan to make a vital business decision. Before the operational plan is created, it undergoes long research and deliberation from the individuals creating the operational plan. You may also like transition plan examples .

Even after the operational plan has been successfully created, it still needs to go to another set of deliberations and discussions from the management and other external stakeholders.

Also, be careful with spelling and other typographical errors in your operational plan.

Although you will be the only person reading your plan, there is still a possibility that some other individual or group of individuals will be wanting a copy of your operational plan (lets say for example the school principal or the school superintendent). It would be very embarrassing if these individuals will be reading an operational plan full of typographical errors, coming no less from a licensed teacher. You may also check out weekly plan examples & samples .

Annual Primary School Operational Plan Example

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Emergency Primary School Operational Plan Example

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Sample Primary School Operational Plan Example

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How to Become an Effective Primary School Teacher

Speaking of teaching, if you want to improve your skills especially teaching in front of kids, here are some tips you will definitely find very helpful.

1. Be kind yet firm

Since you are basically dealing with children, your patience needs to be stretched. But it should not reach to the point where you will have to resort to anger and hatred just to discipline your students. Kindness always trumps over anger, so make sure to show kindness but also be firm at the same time. If you are too kind or nice, the students, no matter how young they are, will use it against you and perform badly in their schoolwork. You may also see assessment plan examples .

2. Create a fun learning environment

A fun learning environment enables students to acquire the knowledge of the topics they learned in class better. Compared to simply discussing the topics using a book and a chalkboard, various activities such as games and presentations will be more memorable to the students, and it will be easier for them to grasp the information learned from fun activities compared to traditional classroom discussions. You may also like  evaluation plan examples .

3. Avoid favoritism

Favoritism is very common in schools and universities, no matter what level or location. The very best teachers avoid favoritism at all costs, ensuring that every student has the chance to prove himself or herself. There are times wherein some students perform better than others. Do not focus on these students but rather focus on the ones who are struggling or having a hard time coping with the discussion or activity. You may also check out audit plan examples & samples .

Creating an operational plan is not difficult, but it needs to be detailed for it to be effective. An operational plan aids an organization or institution (i.e., corporations, nonprofit organizations, government bureaus, medical firms, safety and security organizations) in having a layout or blueprint for the professional goals it wants to achieve. An operational plan aids not only in the short-term sustainability of the organization, but most definitely long-term.

Operational plans are not meant for group or organization purposes but for individual uses as well, most specifically primary teachers. The best and most effective teachers use operational plans to create a more conducive and fulfilling learning experience for their students. You might be interested in research plan examples .

We hope you found this article to be informative as you will be creating your own primary school operational plan.

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Plan template bundle, education business plan template bundle, 25+ school business plan templates in doc | pdf, 1. bible school business plan template, 2. school business plan template, 3. music school business plan template, 4. simple middle school business plan template, 5. free self-sufficient school business plan template, 6. free primary school business plan template, 7. free basic school business plan worksheet, 8. free sample primary school business plan template, 9. free school admission business plan template, 10. free basic primary school business plan, 11. community school business plan with executive summary, 12. free preschool daycare / childcare business plan, 13. free students secondary school business plan, 14. free business plan for charter schools template, 15. free independent public school business plan, 16. free draft quarterly school project business plan, 17. hospitality school business planner with introduction, 18. free senior high school business plan template, 19. nursery & primary kindergarten kids school business plan, 20. free school management & business continuity plan, 21. free school education improvement business plan, 22. free school business continuity plan form, 23. free charter school business plan outline, 24. free private school business plan template, 25. free school business lesson plan template, how to create a highly effective preschool business plan, step 1: create the cover page, step 2: create a summary of what you want to build, step 3: give an analysis of the market, step 4: propose how you wish to achieve your goals, step 5: calculate and estimate the costs, what is a perfect business plan, how to make the perfect business plan, step 1: make a proper analysis, step 2: mention purpose, step 3: make a government outline, step 4: try to make an execution, step 5: keep your financial statement, step 6: follow the appendix, plan templates.

A business plan helps you with a new project, product, service, or system when managing a company. Students, teachers, and administrative members can also improve their education for secondary school, primary school, or other preschool kids. Moreover, you can also launch a new course for your private high school and secondary school subjects like music, art, and any lesson. We understand that the content and research take time, so we provide you with school business plan templates .

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Download Nursery and Primary School Business Plan in PDF or Doc

This is a complete school business plan in pdf/Doc that you can download for your bank loan, grant, proposal or to guide your business operation. In case you are searching for school business plan template for NIRSAL micro-finance bank, bank of industry, TEF grant or any form of grant.

You can stroll down and download the complete school (Nursery, primary and secondary) business plan template so you can submit to apply for the loan or grant. We have already made business plan for school business plan template and samples that will be useful either in PDF or Doc.

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Starting a school may not be easily without having a bankable scalable business plan to guide your activities so take a look at the school business plan below:

Download Complete School Business Plan PDF and Msword in Nigeria

1.0 EXECUTIVE SUMMARY

1 Leadership and Governance

2 Our Vision Statement 6

3 Our Mission Statement 6

4 Our Business Structure 7

5 Our Product and Services

6 Education Plan

7 The Company 17

8 The Project 17

9 Project location

2.0 OUR ENTREPRENEURSHIP CURRICULUM

1 Human Resources Plan 19

2 Academic Framework 19

3 Commitment to Student Success 21

4 Our Guiding Principle 22

3.0MARKET ANALYSIS

1 Market Trend 24

2 Demand 24

3 Competition 25

4.0  SWOT ANALYSIS

1 Strength 26

3 Opportunity 26

4 Threat 27

0 Conclusion and Recommendation

6.0 FINANCIAL ANALYSIS

1 SCHEDULES

1. Projected Cash Flow Statements

3 Projected Profit and Loss Accounts 38

CHAPTER ONE

7.1.1 EXECUTIVE SUMMARY

The NEW SCHOOL UNITED is a private school that is located in Kaduna, Kaduna State. We are establishing a standard private school that is composed of Nursery, Primary Junior Secondary and Secondary School.

The NEW SCHOOL UNITED is a client focused and result driven private school that will provides broad based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pockets of our clients (pupils, student and parents alike).

We shall offer standard and professional teaching services in a highly secured and conducive learning environment to all our pupils and student. We will ensure that we work hard to meet and surpass all our pupils/student’s expectations and educational goals whenever they enroll in our tutorial college.

At NEW SCHOOL UNITED, our pupil/students’ overall best interest would always come first, and everything we do is guided by our values and professional ethics. We ensure that we hire professional educationist, teachers in various subjects who are well experienced and passionate in imparting knowledge to students at various learning ladder.

The NEW SCHOOL UNITED will at all time 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 will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our students.

CHECK AND DOWNLOAD>>   Pure/Sachet/Table Water Business Plan Download

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 Kaduna is the right place to launch our private school.

14.1 LEADERSHIP & GOVERNANCE

The NEW SCHOOL UNITED’s Board of Trustees and senior administration comprised of high-capacity and experienced individuals with skill sets that demonstrate the capacity to establish and operate a successful Entrepreneurship College, including leadership, management, education, business, finance, politics, and community organizing.

Their deep involvement and commitment to this project provides oversight, enthusiasm, and capacity for success.

15.1 OUR VISION STATEMENT

Our vision is to prepare students for success in a competitive economy by providing a unique curriculum which highlights professional and entrepreneurial excellence.

16.1 OUR MISSION STATEMENT

To nurture the child’s desire to succeed in any chosen field of endeavor, be self reliant and noble in character. We are passionate about schooling children to become well rounded individuals.

 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. The Darun-Najah School will build a solid business structure that can support the growth of our entrepreneurship college.

We will ensure that we hire competent hands (teaching and non – teaching staff members) to help us build the school of our dream. The fact that we want to become one of the leading private school brand in the industry in the whole of the Nigeria 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 in record time. Below is the business structure that we will build by The NEW SCHOOL UNITED;

• Head of The Private School(School Proprietress)
• Vice Principal
• Head Teacher
• Teaching Staff
• Security Officer

Roles and Responsibilities

Head of the Tutorial College / School Coordinator:

• Responsible for providing direction for the school
• Creates, 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 handling high profile clients and deals
• Responsible for fixing fees and signing business deals (partnership)
• Responsible for signing cheque and financial documents on behalf of the college
• Coordinates all arms of the tutorial school (tutorial center, adult education, home tutors and special education)
• Evaluates the success of the tutorial college

Reports to the board of the tutorial college

3.0 MARKET ANALYSIS

3.1 MARKET TRENDS

The trend in the private school line of business is that the key to attracting students is the educational performance and the pass rate of their students in national exams. Any private school that has good records will always thrive.

3.2 DEMAND 

The demand for private schools is driven by the fact that most public that is government owned schools cannot accommodate every students or potential students in a given geographical location. In some cases, students with special needs cannot cope in public schools hence the need for private schools.

The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. This is the areas The Management of The school will ensure that the school is up to standard, in advertisements, and on insurance policy cover.

Lastly, it is trendier to find private schools engaging in extra – curricular activities and as a matter of fact, a private school that thrives in sports can leverage on that to attract students who are sports inclined.

How to Download the Complete School Business Plan

The above is just the introductory part, the full business plan is 44 pages and you can download it for N5000 . You can download the full School Business Plan

For you to download the complete business plan straight to your email,kindly Click the>> DOWNLOAD for immediate response.

You’ll pay the sum of #5000

BANK: UBA ACCOUNT NAME:  AJETUNMOBI OLANIYI A ACCOUNT NUMBER:  2089760594

Immediately after the payment, send your email address through text message to 08133717775 and I will send you the full School Business Plan.

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Develop your budget.

As you begin to develop a budget for your research grant application and put all of the relevant costs down on paper, many questions may arise. Your best resources for answering these questions are the grants or sponsored programs office within your own institution, your departmental administrative officials, and your peers. They can answer questions such as:

• What should be considered a direct cost or indirect cost?
• What is the fringe benefit rate?
• What is the graduate student stipend rate?
• What Facilities and Administrative (F&A) costs rate should I use?

Below are some additional tips and reminders we have found to be helpful for preparing a research grant application, mainly geared towards the SF424 (R&R) application.

Cost Considerations

An applicant's budget request is reviewed for compliance with the governing cost principles and other requirements and policies applicable to the type of recipient and the type of award. Any resulting award will include a budget that is consistent with these requirements. Information on the applicable cost principles and on allowable and unallowable costs under NIH grants is provided in the NIH Grants Policy Statement, Section 7.2 The Cost Principles , Statement under Cost Considerations . In general, NIH grant awards provide for reimbursement of actual, allowable costs incurred and are subject to Federal cost principles .

The cost principles address four tests that NIH follows in determining the allowability of costs. Costs charged to awards must be allowable, allocable, reasonable, necessary, and consistently applied regardless of the source of funds. NIH may disallow the costs if it determines, through audit or otherwise, that the costs do not meet the tests of allowability, allocability, reasonableness, necessity, and consistency.

Budgets: Getting Started

• II.1 (Mechanism of Support),
• II.2 (Funds Available),
• III.2 (Cost Sharing or Matching), and
• IV.5 (Funding Restrictions).
• Identify all the costs that are necessary and reasonable to complete the work described in your proposal.
• Throughout the budgeting process, round to whole dollars and use only U.S. dollars.
• Reviewers look for reasonable costs and will judge whether your request is justified by your aims and methods.
• Reviewers will consider the person months you've listed for each of the senior/key personnel and will judge whether the figures are in sync with reviewer expectations, based on the research proposed.
• Significant over- or under-estimating suggests you may not understand the scope of the work. Despite popular myth, proposing a cost-sharing (matching) arrangement where you only request that NIH support some of the funding while your organization funds the remainder does not normally impact the evaluation of your proposal. Only a few select programs require cost-sharing, and these programs will address cost-sharing in the funding opportunity.

Direct Costs: Costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

F&A Costs: Necessary costs incurred by a recipient for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. To facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of F&A (indirect) costs. F&A (indirect) cost pools must be distributed to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits derived.

• The total costs requested in your budget will include allowable direct costs (related to the performance of the grant) plus allowable F&A costs. If awarded, each budget period of the Notice of Award will reflect direct costs, applicable F&A, and in the case of SBIR or STTR awards, a "profit" or fee .
• F&A costs are determined by applying your organization's negotiated F&A rate to your direct cost base. Most educational, hospital, or non-profit organizations have negotiated their rates with other Federal (cognizant) agencies such as the Department of Health and Human Services or the Office of Naval Research. If you are a for-profit organization, the F&A costs are negotiated by the Division of Cost Allocation (DCA), Division of Financial Advisory Services (DFAS) in the Office of Acquisition Management and Policy , NIH.
• For most institutions the negotiated F&A rate will use a modified total direct cost base, which excludes items such as: equipment, student tuition, research patient care costs, rent, and sub-recipient charges (after the first $25,000). Check with your sponsored programs office to find out your negotiated direct cost base.
• When calculating whether your direct cost per year is $500,000 or greater, do not include any sub-recipient F&A in the base but do include all other direct costs as well as any equipment costs. Note Direct cost requests equal to or greater than $500,000 require prior approval from the NIH Institute/Center before application submission.  For more information, see NIH Guide Notice NOT-OD-02-004 .
• For many SBIR/STTR recipients, 40% of modified total direct costs is a common F&A rate, although rates at organizations may vary.

Modular versus Detailed Budgets

The NIH uses 2 different formats for budget submission depending on the total direct costs requested and the activity code used. 

The application forms package associated with most NIH funding opportunities includes two optional budget forms—(1) R&R Budget Form; and, (2) PHS 398 Modular Budget Form. NIH applications will include either the R&R Budget Form or the PHS 398 Modular Budget Form, but not both. To determine whether to use a detailed versus modular budget for your NIH application, see the flowchart below.

Modular Budgets

NIH uses a modular budget format to request up to a total of $250,000 of direct costs per year (in modules of $25,000, excluding consortium F&A costs) for some applications, rather than requiring a full detailed budget. The modular budget format is NOT accepted for​​

• ​SBIR and STTR grant applications,
• applications from foreign (non-U.S.) institutions (must use detailed budget even when modular option is available), or
• applications that propose the use of human fetal tissue (HFT) obtained from elective abortions (as defined in  NOT-OD-19-128  for HFT) whether or not costs are incurred.

Creating a modular budget

• Select the PHS398 Modular Budget form for your submission package, and use the appropriate set of instructions from the electronic application user's guide. You do not need to submit the SF424 (R&R) Budget form if you submit the PHS398 Modular Budget form.
• Consider creating a detailed budget for your own institution's use including salaries, equipment, supplies, graduate student tuition, etc. for every year of funds requested. While the NIH will not ask for these details, they are important for you to have on hand when calculating your F&A costs base and writing your justification, and for audit purposes.
• In order to determine how many modules you should request, subtract any consortium F&A from the total direct costs, and then round to the nearest $25,000 increment.

A modular budget justification should include:

• Personnel Justification: The Personnel Justification should include the name, role, and number of person-months devoted to this project for every person on the project. Do not include salary and fringe benefit rate in the justification, but keep in mind the legislatively mandated salary cap when calculating your budget. [When preparing a modular budget, you are instructed to use the current cap when determining the appropriate number of modules.] 
• Consortium Justification: If you have a consortium/subcontract, include the total costs (direct costs plus F&A costs), rounded to the nearest $1,000, for each consortium/subcontract. Additionally, any personnel should include their roles and person months; if the consortium is foreign, that should be stated as well.
• Additional Narrative Justification: Additional justification should include explanations for any variations in the number of modules requested annually. Also, this section should describe any direct costs that were excluded from the total direct costs (such as equipment, tuition remission) and any work being conducted off-site, especially if it involves a foreign study site or an off-site F&A rate.

Detailed Budget: Personnel (Sections A & B)

Personnel make up sections A and B of the SF424 (R&R) Budget form. All personnel from the applicant organization dedicating effort to the project should be listed on the personnel budget with their base salary and effort, even if they are not requesting salary support.

• Effort : Effort must be reported in person months. For help converting percent effort to person months, see Usage of Person Months FAQs .
• Salary Caps: NIH will not pay requested salary above the annual salary cap, which can be found at Salary Cap Summary . If salary is requested above the salary cap, NIH will reduce that line item to the salary cap, resulting in a reduced total award amount. In future years, if the salary cap increases, recipients may rebudget to pay investigator salaries up to the new salary cap, but NIH will not increase the total award amount. If you are preparing a detailed budget, you are instructed to base your request on actual institutional base salaries (not the cap) so that NIH staff has the most current information in hand at the time of award and can apply the appropriate salary cap at that time.
• Fringe Benefits: The fringe benefits rate is based on your institution's policy; the NIH does not have a pre-set limit on fringe benefits. More information on what is included as fringe benefits can be found in the Grants Policy Statement . If you have questions about what rate to use, consult your institution's sponsored programs office. 
• Senior/Key Personnel: The Senior/Key Personnel section should include any senior or key personnel from the applicant organization who are dedicating effort to this project. "Other Significant Contributors" who dedicate negligible effort should not be included. Some common significant contributors include: 1) CEOs of companies who provide overall leadership, but no direct contribution to the research; and 2) mentors for K awardees, who provide advice and guidance to the candidate but do not work on the project. Likewise, any consultants or collaborators who are not employed by the applicant organization should not be included in section A, but rather should be included in section F.3 of the budget (for consultants) or in section A of the consortium/subaward budget page (for collaborators).
• Postdoctoral Associates: Postdocs can be listed in either section A or B depending on their level of involvement in project design and execution. If listed in section B, include the individuals' names and level of effort in the budget justification section.
• Graduate Students: Graduate students can be listed in either section A or B, but if listed in section B, include the individuals' names and level of effort in the budget justification section. Tuition remission is included in section F.8 (not section A), but is included in the graduate student compensation limits. Read more about the graduate student compensation limit . For current NRSA stipend levels, check the NIH Fiscal Policies .
• Other Personnel: Other personnel can be listed by project role. If multiple people share the same role such as "lab technician", indicate the number of personnel to the left of the role description, add their person months together, and add their requested salaries together. The salaries of secretarial/clerical staff should normally be treated as F&A costs. Direct charging of these costs may be appropriate where a major project or activity explicitly budgets for administrative or clerical services and individuals involved can be specifically identified with the project or activity [see Exhibit C of OMB Circular A-21 (relocated to 2 CFR, Part 220)]. Be specific in your budget justifications when describing other personnel's roles and responsibilities.

Detailed Budget: Equipment, Travel, and Trainee Costs (Sections C, D, and E)

• Generally, equipment is excluded from the F&A base. If you have something with a short service life (< 1 year), even if it costs more than $5,000, you are better off including it under "supplies."
• If you request equipment that is already available (listed in the Facilities & Other Resources section, for example), the narrative justification must explain why the current equipment is insufficient to accomplish the proposed research and how the new equipment's use will be allocated specifically to the proposed research. Otherwise, NIH may disallow this cost.
• General purpose equipment, such as desktop computers and laptops, that will be used on multiple projects or for personal use should not be listed as a direct cost but should come out of the F&A costs, unless primarily or exclusively used in the actual conduct of the proposed scientific research.
• While the application does not require you to have a price quote for new equipment, including price quotes in your budget justification can aid in the evaluation of the equipment cost to support the project.
• Travel: In the budget justification, include the destination, number of people traveling and dates or duration of your stay for all anticipated travel. As with the equipment justification, it is important that you clearly state how the travel is directly related to your proposed research (e.g. you can go to a conference to present your research, but not just for the purpose of "staying current in your field"). You should refer to your institution's travel policy for guidance on how you should arrange the travel, but if your institution lacks a policy, it is expected that you will follow the U.S. federal travel regulation .
• Trainee Costs: Leave this section blank unless otherwise stated in the funding opportunity. Graduate student tuition remission can be entered in section F.8.

Detailed Budget: Other Direct Costs (Section F)

• Materials and Supplies: In the budget justification, indicate general categories such as glassware, chemicals, animal costs, including an amount for each category. Categories that include costs less than $1,000 do not have to be itemized.  
• Animal Costs: While included under "materials and supplies", it is often helpful to include more specific details about how you developed your estimate for animal costs. Include the number of animals you expect to use, the purchase price for the animals (if you need to purchase any), and your animal facility's per diem care rate, if available.  Details are especially helpful if your animal care costs are unusually large or small. For example, if you plan to follow your animals for an abnormally long time period and do not include per diem rates, the reviewers may think you have budgeted too much for animal costs and may recommend a budget cut.  
• Publication Costs: You may include the costs associated with helping you disseminate your research findings from the proposed research. If this is a new application, you may want to delay publication costs until the later budget periods, once you have actually obtained data to share.  
• Consultant Services: Consultants differ from Consortiums in that they may provide advice, but should not be making decisions for the direction of the research. Typically, consultants will charge a fixed rate for their services that includes both their direct and F&A costs. You do not need to report separate direct and F&A costs for consultants; however, you should report how much of the total estimated costs will be spent on travel. Consultants are not subject to the salary cap restriction; however, any consultant charges should meet your institution's definition of "reasonableness".  
• ADP/Computer Services: The services you include here should be research specific computer services- such as reserving computing time on supercomputers or getting specialized software to help run your statistics. This section should not include your standard desktop office computer, laptop, or the standard tech support provided by your institution. Those types of charges should come out of the F&A costs.  
• Justify basis for costs, itemize by category.
• Enter the total funds requested for alterations and renovations. Where applicable, provide the square footage and costs.
• If A&R costs are in excess of $300,000 further limitations apply and additional documentation will be required.
• The names of any hospitals and/or clinics and the amounts requested for each.
• If both inpatient and outpatient costs are requested, provide information for each separately.
• Provide cost breakdown, number of days, number of patients, costs of tests/treatments.
• Justify the costs associated with standard care or research care. Note If these costs are associated with patient accrual, restrictions may be justified in the Notice of Award.) (See NIH Grants Policy Statement NIH Grants Policy Statement, Research Patient Care Costs )
• Tuition: In your budget justification, for any graduate students on your project, include what your school's tuition rates are. You may have to report both an in-state and out-of-state tuition rate. Depending on your school stipend and tuition levels, you may have to budget less than your school's full tuition rate in order to meet the graduate student compensation limit (equivalent to the NRSA zero-level postdoctorate stipend level).  
• Human Fetal Tissue (HFT) from elective abortions: If your application proposes the use of human fetal tissue obtained from elective abortions (as defined in NOT-OD-19-128 ), you must include a line item titled “Human Fetal Tissue Costs” on the budget form and an explanation of those costs in the budget justification.  
• Other: Some types of costs, such as entertainment costs, are not allowed under federal grants. NIH has included a list of the most common questionable items in the NIH Grants Policy Statement . If NIH discovers an unallowable cost in your budget, generally we will discount that cost from your total award amount, so it is in your best interest to avoid requesting unallowable costs. If you have any question over whether a cost is allowable, contact your sponsored programs office or the grants management specialist listed on the funding opportunity.

Consortiums/Subawards

If you are using the detailed budget format, each consortium you include must have an independent budget form filled out.

• In the rare case of third tier subawards, section F.5 "subawards/consortium/contractual" costs should include the total cost of the subaward, and the entire third tier award is considered part of the direct costs of the consortium for the purposes of calculating the primary applicant's direct costs.
• Cost Principles. Regardless of what cost principles apply to the parent recipient, the consortium is held to the standards of their respective set of cost principles.
• Consortium F&A costs are NOT included as part of the direct cost base when determining whether the application can use the modular format (direct costs < $250,000 per year), or determining whether prior approval is needed to submit an application (direct costs $500,000 or more for any year). Note The $500K prior approval policy does not apply to applications submitted in response to RFAs or in response to other funding opportunities including specific budgetary limits above $500K.
• F&A costs for the first $25,000 of each consortium may be included in the modified total direct cost base, when calculating the overall F&A rate, as long as your institution's negotiated F&A rate agreement does not express prohibit it.
• If the consortium is a foreign institution or international organization, F&A for the consortium is limited to 8%.
• If the consortium is with a for-profit entity, such as a small business, the organization must have a negotiated F&A rate before they can charge F&A costs. The default small business rate of 40% is only applicable to SBIR (R43 &R44) and STTR (R41 & R42) applications. See the Division of Financial and Accounting Services (DFAS) at NIH to set up a rate.
• Consortiums should each provide a budget justification following their detailed budget. The justification should be separate from the primary recipient's justification and address just those items that pertain to the consortium.

Understanding the Out Years

• We do not expect your budget to predict perfectly how you will spend your money five years down the road. However, we do expect a reasonable approximation of what you intend to spend. Be thorough enough to convince the reviewers that you have a good sense of the overall costs.
• In general, NIH does not have policy on salary escalation submitted in an application. We advise applicants to request in the application the actual costs needed for the budget period and to request cost escalations only if the escalation is consistent with institutional policy. See Salary Cap Summary and NIH Fiscal Policy FAQs .
• Any large year-to-year variation should be described in your budget justification. For example, if you have money set aside for consultants only in the final year of your budget, be sure to explain why in your justification (e.g. the consultants are intended to help you with the statistical interpretation of the data and therefore are not needed before the final year).
• In general, NIH recipients are allowed a certain degree of latitude to rebudget within and between budget categories to meet unanticipated needs and to make other types of post-award changes. Some changes may be made at the recipient's discretion as long as they are within the limits established by NIH. In other cases, NIH prior written approval may be required before a recipient makes certain budget modifications or undertakes particular activities (such as change in scope). See NIH Grants Policy Statement - Changes in Project and Budget .
• Planning & Budgeting for Data Management and Sharing