Table of Contents:
1. Coaching Centre Business Plan
The Indian education system has a symbiotic relationship with coaching centres. Every academic phase in a student’s life is accompanied by assistance from coaching centres. With over 70 million students enrolled in various coaching institutes across the country, it is no surprise that the coaching business is ever-growing and immensely profitable. The need for coaching centres arises out of the need to fill the void that general schooling cannot fill. Students often fail to grasp important concepts which could lead them to failing grades. This is often a product of overburdened school teachers not being able to pay attention to every student and accommodate according to their learning styles. Hence, starting a coaching centre is a promising career option.
As this is a huge investment, it is important to engage in rigorous market research before planning what sort of coaching centre you want to establish. There are various coaching centres catering to students appearing for board exams, competitive exams (graduation and post graduation), civil service examinations, government services exams etc. It might be confusing in the beginning, may this blog serve as a trusty guide for those who want to get started with the coaching institute business and make a million dreams come true.
2. How To Open Coaching Institute?
Step 1: Subjects and Study Material
This is the crucial starting point, this decision will dictate how your institute will shape up. Currently, the key areas of focus for large scale coaching institutes are; engineering (IIT-JEE) and medical (NEET, AIIMS) entrance exams, competitive exams for government services (SSC), Management exams (CAT), civil services examinations (UPSC), and law entrances (CLAT). Many institutes also focus on preparation for international exams such as IELTS, GRE, GMAT, TOEFL, etc.
There are several small-scale coaching centres which are subject specific or focus on niche topics. It is always a good idea to start small and then expand according to consumer demands. Students appearing for competitive exams need to be taught multiple subjects, if you choose this path then the coaching centre must be able to provide experts on all subjects required to pass the examination in question.
The study material must be carefully designed, keep explanations simple, crisp and clear. In addition to in-class notes, students should be provided with printed copies and digital versions of topics. Along with, detailed topic wise-notes, small revision-friendly notes should be provided. All lectures should be recorded so that students can watch them repeatedly to gain clarity.
Step 2: Infrastructure and Location
To test the waters, it is better to start small. Firstly, accumulate a few batches of students before expanding to a bigger space. Most coaching centres are rented spaces in commercial buildings. Coaching institutes with larger budgets have their own individual buildings.
The infrastructure should have large, airy rooms. Students should not feel claustrophobic and have space to move about. The location should be such so that it can be accessed via public transport, it should be a well known location. The surroundings should be peaceful and conducive to maintaining a perfect atmosphere for study.
Step 3: Staff and Study Material
Hiring well experienced staff who have sound academic records is a must. For a coaching centre dedicated towards competitive examinations it is favourable to hire teaching staff who have qualified the respective examinations.Usually, two to three staff members are hired for separate subjects. Your study material reflects the quality of your teaching, it must be legible and comprehensive. The teacher to student ratio should not exceed one teacher to twenty students for optimal learning.
Step 4: Marketing and Promotion
The success of a coaching institute is governed by how many students it can reach through marketing. It is not enough to merely provide quality education but one must ensure prospective students get to know about it. The study material and notes provided in-class serve as an example of how brilliantly the subjects are explained, this is the simplest form of advertising your product. Students are bound to show these and spread information through word-of-mouth to their peers who might show interest in joining your coaching.
Providing free demo classes, free notes, handing out coaching institute pamphlets in schools and colleges, advertising in local newspapers, and advertising in TV channels are all tried and tested methods of marketing. Always provide a variety of options for students, online classes, offline classes, crash courses, distance learning etc with different levels of tuition fees waivers. Conducting scholarship exams is an effective way to gain meritorious students. In the modern era, with the accessibility of social media it is possible to reach millions in seconds. Start by uploading some free sample lectures on YouTube, make Facebook groups and curate Instagram pages to capture audiences. Marketing automatically increases the value of coaching businesses.
Step 5: Licensing and Registration
Coaching centres and institutes are recognised as educational business institutes. The legalities of opening a coaching centre revolves around the scale of the set-up. If you are operating a very small scale coaching centre in residential quarters then trade license and registration is not required. Large scale coaching institutes need to acquire trade licenses and also pay taxes. Mandatory registration and tax payment are required for institutions with a profit margin of more than nine lakhs.
Trade licenses must be obtained from the local municipal corporation before starting the business. The application for the trade license must be filled three months before commencement of business. The various documents required include; rent-bill, lease-deed, consent letter from owner of building (if sub-tenant), affidavit/ declaration etc. Before starting operations owners must establish the legality of their coaching centre business by submitting the required application form to the local municipal corporation.
The registration of the coaching business depends on which business structure the owner wishes to employ, such as; sole proprietorship, partnership or company. Within a month of starting the coaching institute’s operations it must be registered under the “ Shops and Establishments Act” with the inspectorate of the area.
3. Coaching Class Culture In India
A few decades ago, the existence of coaching centres were sparse, but now India has become the biggest market for the education industry. Establishing and maintaining a prosperous coaching centre is an arduous task, it requires patience and discipline. Preparation and a good knowledge of the Indian Education System will ensure the best results.
Currently, coaching institutes are ranked on the basis of student intake quality, fees, learning resources, outcome of courses, and training process. Loans for running educational businesses are not difficult to obtain because of the high profitability of coaching institutes.
Before applying for a loan one must first register your business. As your coaching centre grows and yields high results you might attract investors and open new franchises to create your very own educational brand. Do not expect to achieve quick growth, quality work needs time to bear fruit, keep a five to ten year goal in mind when starting off.
The number of students in India keeps increasing annually, there is a dire need for more coaching centres to meet the demand for high grade education which will enable students crack exams, get into the country’s best institutes and get high-earning jobs.
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FAQs On Coaching Centre Business Plan
Q. How To Start A Coaching Institute In India?
Ans- Any Coaching Institute in India can be registered as a private limited company or OPC or LLP. If you're planning to take over a franchise then you can register as Proprietorship Firm or Partnership Firm. You can also register your Firm or Company at home.
Q. How do I start a new coaching institute?
Ans- The startup procedure on How To Open Coaching Institute are as follows-
- Firstly, decide your user element
- Get your study materials and topics right
- Decide on your prime location
- Recruiting qualified teaching staff
- Advertising and marketing your Coaching Class
- Register your coaching institute
Q. How can I register my institute in India?
Ans- Some of the Licenses that are needed for starting an educational institution:
- Registration Certificate of Society – Societies Recognition Act, 1860,
- Essentiality Certificate DoE
- Further, Certificate of Recognition MCD/ DoE
- Moreover, Certificate of Upgradation DoE
- Further, Certificate of Affiliation CBSE
- Certificate of MCD
Q. How can I register for coaching?
Ans- Documents you have to submit to get enrollment under the Shops and Establishments Act are:
- Commercial Address Proof.
- Pan Card.
- Identity Proof.
- Fee Payment Challan.
Q. How can I teach tuition online?
Ans- This is the perfect guide to becoming an online tutor:
- Determine your essentials
- Know your target audience
- Choose your subject topics
- Choose a precise course routine
- Set the lesson model
- Choose an online platform to sell your courses- Unacademy, Byjus, Vedantu, etc.
- Supervise your courses
- Market your e-learning platform
Q. Do you need a license to start a tutoring business in India?
Ans- Coaching Centres have become an integral part of the education system in India. The popularity of coaching institutes has drastically increased over 35% over the past 5 years. It should also be noted that if you intend to run a small scale coaching centre, there are no specific licenses that need to be obtained.