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Feasibility Study & DPR Services for School for Bank Loan

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After deciding with determination to open a new school, bearing in mind the associated investments is one of the most important steps. So, planning your investments and related finances most wisely is an extremely important measure to seize an effective grip on the needs of the volatile market. Through the school feasibility study, we unpack the most-needed suggestions about the potentialities a proposed area has in order to venture into a new school and the anticipated ROI (return on investment) of a particular area. These evaluations are of varying nature, depending on the location.

The objective of carrying out a feasibility study for a school is to gain the required understanding of the untapped market and ROI (return on investment) for a demographic. In other words, if an entrepreneur is sceptical about whether his school project delivers the outcome he is expecting, a feasibility study for the school project in a proposed area is the obvious step forward. His all doubts are dispelled through this study, laying the crystal-clear foundation to take the calculated risk of opening a new school. Through the feasibility study, a series of serious assessment techniques are undertaken, such as analysing the existing schools in an area to understand the paying capacity and fee structure, the facilities offered against the fees charged, GAP analysis, the availability of a workforce, etc.

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List of the assessment methods & recommendations has been enumerated down here: 

  • SWOT Analysis (Strength, Weakness, Opportunities, and Threat Assessment Study)

  • Demand Evaluation & Assessment.

  • A Profound Competitor Analysis of schools.

  • Strategic Market Entry for new entrant in the segment.

  • A Doable Brand Positioning Plan.

  • Plan for Facilities and Concept Notes.

  • A Detailed Study, Understanding the Trend for Volume Addition for the coming Ten Years.

  • A Strategic Plan for School Staff with the Retention of coming Ten Years.

  • A Well-Thought-Out built up area in phased manner for the Infrastructural and Construction Development.

  • A Thorough Study for the Estimating the School Project Budget.

  • A Ten Years’ Profit & Loss Account Projections .

  • A Strategic Convenient Planning for Loan’s EMIs (Easy Monthly Installments) for repayment of loan on from school's income.

The study work shall kick start into high gear with a survey executed by the Erocon team to submit the school project report.  

The Survey work entails: 

  1. A Thorough Site Visit and its Exploration & Finalization

  2.  Surveying the Surrounding Catchment to evaluate the Upcoming Establishments

  3. Surveying the Adjoining Schools to Have a Clear understanding of Fee Structure, Volume Trends & Facilities

  4. Recognizing the Best School in Particular Area to understand its Bestness among all other Schools

  5. Meeting with the Educated and Well-Informed Individuals to Assess the Psychology and Nature of the Town and the Adjacent Area


Market Dynamics & Assessment during school feasibility study


  • A detailed site assessment for new school project.

  • Location assessment for the suitability of a new school project.

  • Identification of the target segment and catchment for a new school project

  • Identification to instil the level of competition for a new school project.

  • Identification of the volume addition trend on an average for the projected new school project.

Gap Analysis undertaken school feasibility study

  • Executing Strength, Weakness, Threat & Opportunity (SWOT) Analysis of a Demographical Project

  • Carrying out Competitor Analysis

  • Submitting the Evaluation Report as to which type of school to open as per the location demand

Project Recommendations post the school feasibility study

  • Opinion on workability of established school franchise model or development of self brand.

  • Opinion on Board affiliation for school to be opted for the new school project.

  • Market Entry Strategy Opinion for the new school project.

  • Associated Brand positioning plan for the for the new school project.

  • Pricing Strategy and determination of workable school fee structure for the new school project.

  • Fee Expansion Plan for next 10 years for the new school project.

  • Concept note and Project USP workable for the location

  • Infrastructure Planning with Detailed Area Chart for Master Plan, Phase I & Phase-II  construction for the new school project.

  • Facility Plan for the project for the new school project.

  • Sports Infrastructure Planning for the new school project.

  • Curriculum Recommendation for the new school project.

  • Opinion on Project Expansion and Phase initiation planning for the new school project.

  • Human Resource /Staffing Plan for 10 years for the new school project.

  • Project Construction Timelines and Deadlines for the new school project.

  • Administrative Timelines for the new school project.

  • Opinion on Strategic alliances and education service partners for school project

  • Green School Concept and green school ratings

  • Inputs on IT innovations and Requirements for the school

Detailed Financials and Project Economics 

  • Capital Expenditure for the Whole Project, and the Estimated Budget for the Various Phase of Development of the School Project

  • Year-Wise Fee Collection for the Coming Ten Years

  • Estimated Year-Wise Salary Expenditure for the Coming Ten Years

  • A Detailed Report over Profit & Loss Account for the Next Ten Years

  • Estimated Fee Revenue for Meal Services 

  • Meticulous Loan Calculation Along with the Impact over the P&L (Profit and Loss) Account 

  • A Thorough ROI (Return On Investment) Calculation

  • School Operating Expenditure Under Other Heads

Legal Framework, Affiliation Requisites & Compliance

  • Suggestions over the Formation of Trust, Registered Society or Non-Profit Company as per the Prescribed Rules and Regulations

  • Structural Guidance and Framework for Trust, Registered Society or Non-Profit Company

  • An Overview of the Rules & Requisites of School Management Committee 

  • Recommendation of Rules and Regulation within the Premises of a School



How should a promoter plan a strategic marketing entry to open a new school in India?

A strategic marketing entry should be planned out according to the present and future demands, especially considering the immediate catchment area. It is with the same reason to understand your competitors, along with their achieved benchmark pertaining to the quality of facilities, programmatic offerings, and infrastructure. As a new entrant into this market, it is mandatory to introduce better quality education, better facilities, and even better infrastructure than the benchmark set by its competitors. Considering these better offerings as value for every penny, this new school will tap the huge volumes of the potential markets. Through creative marketing and brand positioning,  this new school venture will create “Pull Factor” attracting the huge segment of the market to be the part of this school.    

What are the parameters to understand whether the new school would be profitable and successful in a decided area? 

Listed down are the parameters to know whether a new entrant school would be profitable and successful:

  • Strategic study of existing students volume of the school

  • Encouraging the trend for the volume addition

  • Admission Refusal Trend of the Competitors in a certain demographic. This parameter is best assessed by the residents of that demographic

  •  Availability of the right set of human resources for the implementation of the best curriculum

  • Cost of Land

  • An Assessment of the size of the construction along with its sincere capital investment for the Phase-I Development

  • Effective Investments for the recruitment drive such as teachers, and staffs

  • Draining more Investments for USPs development, marketing and branding development, etc

  • Determining an effective entry fees structure

  • Chalking out a strong market entry, and Brand Positioning to create the attractions for the “Pull Factor”

  • Safe and secured Transport Facilities

  • Scripting the associated affiliations-CBSE, ICSE, IB, IGCSE- milestones for the school

  • Unique and Super-friendly Sports Facilities

The points mentioned above pave the way in drafting the Profit and Loss Account for the project. Assisted by the report of Profit & Loss Account, we can assess the gestation period of a new school, assuming an expected date for the final delivery of the project. 


What is the future of my school project at a demographic?   


A target segment, along with its catchment area, can be the accurate determiner of the future of your school project. You should understand pretty well the level of prevailing competition in the market, thereby developing the right set of differentiating factor through the effective tools of marketing and branding positioning. Through the unique USPs of this new school, it is important to showcase the programmatic and other offerings better than the rest of the schools in the catchment area. Parents should also be into the confidence that this school is the best bet for their kids’ educations and future. The potential upcoming infrastructural development and habilitation are the predictor to assess a school’s location. The volume of the population over a demographic decides the trend of the anticipated volume addition as they act a major reflecting point against the reinforcing demand for a school with a novel concept. This new school will challenge the offerings of the existing schools in a competitive market.      


What are the determining factors in finalising the fees structure for a new school in India?

Fees structure can be determined through the following basis:

  • Paying Capacity and Culture of the Targeted Segment

  • Reasonable Competitive Fees Structure

  • Facilities on the Campus of the School

  • Quality of Teachers and Staffs

  • Pay Scale of the Qualified Teachers and Staffs

  • Brand Premium as per the Marketing and Brand Positioning of the School

Fees Structure vs facilities should be justified. It should also be convincing enough for the parents that this school’s facilities against fees structure are pennyworth to spend for carving out the future and education of their kids. This creates the right set of demand for the new entrant in the school market.  


How easy and important is branding for a new school project in India?


Branding is one of the most important aspects of an upcoming school position. Brand positioning is planned out in sync with the requirements, and demands of the market. Therefore, it is important to work over all aspects of branding & positioning, creating an inevitable “Pull Factor” and “Differentiating Factor.” This work adds a lot of volume in the school, being the best among all rival schools. The design aspects of branding such as deciding the name of the school, logo design, brochure design, website design, school almanack, indoor & outdoor publicity material, advertisements and hoardings should be planned and executed meticulously. An effective branding leaves an impressive impact in the school market as a new entrant. Field market further supplements, leaving an impressive mark. Regular training of the staffs, qualified teachers, workings of the on-ground marketing team, unbiased management for admission procedure infuses lasting confidence into the minds of the parents. This results in an impressive admission in a newly established school

Why a Feasibility Study & Market Research for A New School Project is required in India?


When you plan to start with a new school project, you will also be required to keep in mind the associated finances for the project. In order to plan your investment and finances in the best possible manner, it is very important to get a grip on the market needs, the potential it has to offer and return on investments for a particular region as considerations may vary from location to location. Our purpose is to provide a feasibility study by our expert school consultants who identify the likelihood of setting up a school in the area and also provide clarity on whether the school project will deliver the desired outcome. This study comprises of variety of assessment methods that are undertaken including SWOT analysis (Strength, Weakness, Opportunities and Threat Assessment study) & Demand Assessment, Detailed Competition Analysis, Market Entry Strategy, Brand Positioning Plan, Facility Plan & Concept Note, Volume addition trend for the next 10 years, Staffing plan for next 10 years, Project infrastructure & construction area chart, Project Budget and Estimation and finally Profit & Loss account for next 10 years including Loan EMI component.

How we do this?


Through the meticulous detailed project report for school and feasibility study, our expert school consultant visits the projected site to perform the survey of the education establishment and study the demand & supply around the catchment area. Erocon submits the reports, taking care of demand projections and financials involved, addressing many lingering questions of promoters such as “what is the right investment for a school project? and what is the demand assessment in the catchment area?” The report contains estimations, candid opinion over the required capital for site development, market with its potentials, and a briefing over the ROI (Return on Investment). Apart from paving the way to attract many investors on this educational entrepreneurship, the Detailed Project Report can also be used to get the loan sanctioned from different public and private sector banks.  Erocon will help promoters draft the most effective DPR report for school to get the hassle-free loan for the development of your dream project.  

The detailed project report cum feasibility report  is prepared by first conducting a survey around the site followed by report with demand projections and financials. The report will not only cover your project / investment size but is also helpful in acquiring bank loan ( if required) at a later stage. The survey will include one member of our School consultancy Team visiting from Delhi- School Site. The survey will be followed by a opinion about the investment size, potential market and ROI. We require a member of your team familiar with the demographics of the area to accompany our team member for better coordination and inputs


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