How much does it cost to set up a small tuition centre? - Seedly
 

Entrepreneurship

Asked by Cassandra

Asked 3w ago

How much does it cost to set up a small tuition centre?

Does anyone have experience in this area and can share their experience? what factors should I consider?

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Hi Cassandra!!

That's a great question!! I'll add in my two-cents :)

Not in the tuition industry, but been involved in several startups. The costs depends on these factors:

(A) First 2-3 years:

  • Annual Revenue

  • Less Startup Costs

  • Less Annual Expenses

  • (Plus Blood, Sweat, Anxiety, Frustration, Tears 😂)

  • = Profit/Loss

(Assuming no Franchise Fees, costs are based mainly on my experience, some are rough estimates^)

Startup Costs

  • ACRA & Secretarial Registration ($1600)

  • 2+1 Rental Deposit, ($3k*3= $9000)

  • Insurance ($1500^)

  • Renovation ($6,000^)

  • Furniture, Stationeries ($3000^)

  • Initial Advertising ($1000^)

  • Website ($150-3000)

Ongoing Costs / Annual Expenses

  • Rental ($3000*12=$36,000)

  • Utilities ($400*12=$4,800^)

  • Your Allowance to Survive ($2000*12=$24,000)

  • Salary for Staff/Tutors

  • On-going Marketing ($300*12=$3,600)

  • Misc Expenses eg Stationery, Paper ($400*12=$4,800^)

Things to consider:

  • Do you already have enough existing clientele to start?

  • Do you have good track record of proven results, testimonials?

  • Do you have a content system that you can explain to onboard new clients easily?

  • How are you providing value to your clientele that gets them to move away from their current tutors? By value, price, accessibility?

  • Are you willing to shift mindset to an entrepreneur, salesperson, marketer, operations, accountant and have the grit to endure and push on for the days you have no customer?

It's sad to see a startup fail. But it happens 8 out of 10 times. The costs can be high - tangible, and intangible.

And it can be heartbreaking to shut it down, frustrating to pay back loans if any and painful to disappoint the people and investors who support you.

That's the costs that I know of :)

Hope it helps and all the best!!

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Leong Wen Fong
Leong Wen Fong, Relationship Manager at Aspire
Level 7. Grand Master
Answered 3w ago

I've spent some time in the tuition industry, and my mother teaches tuition on a regular basis.

If you have even taught any type of tuition before, you would know the basic costs:

Materials/Printing

Stationery

If you want a centre intself then of course rental/utilities would be the main concern.

I also know that if you go through CC/RC, they tend to charge you a percentage of the fees that you collect as well - so take note of that!

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It depends on the definition of small. Here are some factors to consider:

  • Logistics, e.g. table, chair, computer, whiteboard, security

  • Ongoing expenses, e.g. printer, utility, maintenance

  • Marketing

  • Materials

  • Time spent on business model

  • Time spent on teaching

  • Location, accessibility

It will be valued to study other tuition centres and understand their business models. This way, you get an overview of what to expect. When you are confident, then you can start yours!

Here is everything about me and what I do best.

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