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Low-Cost Private Schools Knowledge Framework

This knowledge framework explores the business model of low-cost private schools, covering market positioning, customer research, attraction mechanisms, revenues, costs, finance, and balance sheet.

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Low-Cost Private Schools Knowledge Framework

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  1. Low-Cost Private Schools Knowledge Framework Research methodology template

  2. Low-Cost Private Schools Knowledge Framework Business Model: Sustainable • 7 Market positioning • Demand & Competition • Customer research / Marketing • Attraction mechanisms • 9 Finance • Valuation • Investors • Balance sheet • 8 Revenues and Cost • Fees / Payment • Costs / Salaries • Administration / Surplus

  3. Low-Cost Private Schools Knowledge Framework | Business model 7. MARKET POSITIONING • 7A Competition / Demand • How much competition is there from other local private/NGO/government schools? • What value do poor families and children see in schooling? • What percentage of their household income are parents willing to spend on education? • What is the capacity to pay for education services for the poorest families? • 7B Customer research / Marketing • How is the school catchment area determined? • What type of surveys are used to evaluate interest in a school opening? • How is the school marketed prior to opening? • 7C Attraction Mechanisms • What is the relationship between the chain and its customers (parents)? • How well are existing customers engaged (by communication, for example)? • How are new customers recruited (eg. marketing)? • What is the proximity of the business to its customers?

  4. Low-Cost Private Schools Knowledge Framework | Business model 8. REVENUE AND COSTS • 8A School fees / Payment • Is payment scheduled in a way that helps caregivers manage the household budget? • What do target customers think of the price? • How does the price differ according to student circumstances? • Who pays for the students? • How often are they charged? • What payment mechanism is used? • What mechanisms are in place to address non-payment? • Is there a school meals programme built into the cost? • 8B Costs / Salaries • How much does it cost to establish a new school? • What are the ongoing costs of operating the school? • How much do the costs vary each year? • How do the costs at the school level break down (salary versus. non-salary)? • What are the variable versus fixed costs? • What is the per student cost? • What is the tax status? • How do teacher salaries compare to other schools? • 8C Administration / Surplus • How much is spent on central administration? • What is the ratio of administrative to school costs? • How much is spent on research and development?

  5. Low-Cost Private Schools Knowledge Framework | Business model 9. FINANCE • 9A Valuation • What is the chain currently valued at? • How much debt does the chain have? • How does Pearson value the chain? • What opportunity is there to invest? • 9B Investors • How has the chain been financed to date? What is its level of debt versus equity? • How does the chain acquire real estate and infrastructure? Are these assets owned or leased? • Is the title of the land owned? • Is the chain locally or internationally owned? • Are the schools franchised or directly managed? • Is there the opportunity for expansion through School Head share participants? • 9C Balance sheet • ’ • How many students are needed for a school to break even? • How profitable is the chain (what is the profit margin/return on investment)? • What is the marginal student profitability? • How are profits handled (eg. Reinvestment)? • Is there profit-sharing for school staff?

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