Goh, Moi Huee
(2018)
A business plan for a startup of an international school targeting middle income group in Malaysia.
[Dissertation (University of Nottingham only)]
Abstract
PRIME International School, PRIS in short is an international private school that will be located in the suggested area, Kepong as it is one of the high density areas with 360,000 population in that area. It has only one international school which is targeting to a higher income group segment compared with PRIS. There are other neighbouring area such as Gombak, Selayang, Sentul and Batu Caves can be the potential targeted area as well. PRIS will be running the British syllabus which is one of the world’s popular and widely acceptable syllabus. There will be Nursery (3 years), Primary (6 Years) and Secondary (3 years) up till form 3 offered by PRIS at the moment due to the high set up cost.
PRIS aims to become a cost leader among the international school in Kuala Lumpur, by charging reasonable tuition fee, focus on IT enhanced learning and emphasise on leadership and character building. Leadership and character building are seriously lacking in most of the international school as students are seen as clients instead of future leaders and school disciplinary policy is over liberal. PRIS aims to create a difference especially in this area as one of its own core competencies.
Being a cost leader will allow PRIS to offer opportunities to students to be able to experience and receive good and structural education system within an affordable fee range. The required investment is within RM160,000 - RM170,000 to complete the education from nursery to year 9, which is affordable to the major targeted middle class income family in the targeted areas.
In addition, PRIS would embrace the concept as a ‘One-Stop’ Centre that allows the parents to choose the additional services such as music classes, public speaking classes, extra supervisory classes to complete homework etc to offer convenience to parents who wish to save time and willing to pay extra fees for the services provided.
Though the fee charged is lower compared with most of the international schools in Kuala Lumpur, there will be profit in the second year onwards if there is a consistent number of 150 students enrol with PRIS in a span of three years. An approximate of 3.6 million is required as a set-up fee for an international school, however, it is recommended to get a bank loan with investors to become guarantors as it is tax deductible.
There will be a total of RM960,901 profit in the second year though there will be a negative 1.8 million in the first year because of the high set up cost. The profit will continue if the set targeted number of students can be achieved for 3 years while PRIS gaining its credibility in the market. There will be a possible expansion to another state if not overseas within 10 years if the business model is successful.
The company will be registered under Sdn Bhd because it does not need to disclose its financial position to the public and with the permission to raise fund by selling equity to investors. The principal owner will be me, the entrepreneur by holding the majority equity, however will consider to release the majority equity to investors who share the same vision of emphasising on leadership and character building; and if releasing the equity means benefiting the school’s overall development and expansion.
The key personnel who will sit in the school educational quality panel will be educationist as the Head of School who is qualified, experienced and passionate, entrepreneur and some external education advisory to ensure making a difference in providing quality education.
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