Setting up of tuition centre

[Funz]

Tuition centres and childcare are very different if you are interested in setting up a childcare, I suggest that you visit the mcys website and read up on setting up a childcare. And in today’s market, to start a childcare, you need about $200K easily whether you take over an existing centre or start 1 from scratch. Slightly lesser if you do not take on any franchise which, however, means you have to develop a curriculum yourself or else you may not be awarded the license.


Do also note that in most franchises, over and above the franchise fee your will still have to pay monthly royalties which is normally calculated as a percentage of your revenue, not profit. That means even if you are not making any money, you will still have to pay the royalty. And there are performance commitments that you have to achieve, failing which you franchisor may revoke the franchise (very seldom but if relations are not good, they may use this clause to terminate the agreement). And that is not all, the franchise is renewable usually on a 5 yr basis.

The biggest problem with any business be it childcare, tuition ctr, restaurant, retail outlet or even spa, is staffing. And when you go into the education business, I can guarantee you your time will not be taken up teaching or dealing with children but with parents and staff.

You have a friend who is already in this business. If she/he is someone trustworthy, find out more from them. Not only the good side but the ‘ugly’ side of running one’s own business.

For every success, there are a few failures. You want to be the one to succeed so do your research well, know what you are getting yourself into. And reflect and see if running a business suits you.

[winth]

Hi skunk,


Wow, very detailed info. Think that's what my friend went through too. He had so much acne on his face (due to stress) that we could barely recognise him.

Oh, not to mention all those very demanding parents, they want only 'original questions' that do not come from assessment books/ten year series, bec they usually would have seen those questions already. So my friend had to originate questions to teach those students, complete with step-by-step solutions and explanations. You think he never :stupid:?

Now, we see him, he's so much happier. His weekends are definitely burnt as he is doing full-time tutoring, Mondays to Sundays (2pm onwards up to 11pm), but the freedom he has exchanged for giving up the tuition centre is tremendous. And oh, he earns more than a professional white collar, for he charges very high rates since his students are all O and A Levels.

[skunk]

winth:

And oh, he earns more than a professional white collar, for he charges very high rates since his students are all O and A Levels.

cannot be very much more lah, or else all the white collar ppl also come n do already.

I've calculated already, even for a very famous home tutor, maybe $12K monthly? That's not say astronomical, that's what the average banker takes home.

Even for myself, with 7 years' experience and quite a name built up over the years, i've never exceeded $6K monthly.

It's more impt to do the job because a person has a natural ability for imparting knowledge, not because of the money. I know of many other jobs that can make much more without sacrificing weekends and nights

[winth]

skunk:

Even for myself, with 7 years' experience and quite a name built up over the years, i've never exceeded $6K monthly.

Wa, like that it's definitely more than a pro white collar mar... Average salary for mid level engineers is between S$4 - 5K.

We tried asking this friend, asked him if it's 5K, he's still smiling away. Dunno how much but from his face, it's sure more than 5K already.

[skunk]

winth:

Wa, like that it's definitely more than a pro white collar mar... Average salary for mid level engineers is between S$4 - 5K.

most engineers become managers in mid-career....for someone to remain as an engineer for very long, must be because skills are strictly limited to engineering

many other white collar professionals can make alot....accountants, lawyers, doctors.....my lawyer friend's starting pay was almost $4K monthly.

Haiz i should have put in a little more effort, today can be lawyer liao...hehe

[winth]

Funz:

For every success, there are a few failures.

Can't agree more.

[skunk]

i disagree. for each success, there are perhaps at least dozens of failures. the chances of any biz succeeding is actually maybe only 5% or less.


why take the risk if u have other talents?

[skunk]

insider:

I don't know about the success rate of other businesses. But for all those centres that I have helped to set up and run, the success rate is 9 out of 10 so far

wah u r so fantastic ah LOL r u cai shen ye?

my bro once worked for an angel investor or something like that, those companies that assess start-ups, whether to loan them money for their business.

In their assessment of all businesses that seek loans from them, they only grant loans to maybe 10%. These 10% of start-ups they (and their panels of experts) deem to have a very very good chance of succeeding.

And guess what? Out of this 10%, only a further 10% actually make it and survive.

[skunk]

insider:

Her cut loss will be at the point when she completely depleted her capital of $300K. Running a business is challenging.

no wonder u r so confident, take so much money to throw, the chances of success sure very high wan. Chey, i thought u got some secret formula LOL

[Funz]

insider:

Her cut loss will be at the point when she completely depleted her capital of $300K. Running a business is challenging.

Yes! That is another important thing to note. Set yourself a walk away point. One of the biggest problem that most pple have when they go into a business is not being able to walk away until they are badly in debts.