Business model for Yu-Wha-Bhan-Did Kindergarten in Thailand

Yu-Wha-Bhan-Did Kindergarten Business Model

Priority customers

The Kindergarten is targeted for children (both genders; any race) who range between the ages of 3 and 6. Obviously, since the preschool is located in the village of Master Home in Thailand, it is primarily for Thai children living in that village and living, more specifically, in the Pra-Tum-Thani region.

Many of the young prospects are students with parents or guardians who have tight work schedules leaving them room for possibly just accompanying their children to and from school.

Aside from the regular children who will need kindergarten, the school is also geared towards those who simply need some 'brushwork' work accomplished or some reinforced teaching methods.

Yu-Wha-Bhan-Did Kindergarten in effect, caters to two classes of students:

Those who are 'regular students' attending the kindergarten whole day and all its classes in a standardized manner

Those who are ad hoc attending classes that suits their parents / guardian's needs, or who attend certain classes in order to brush up on necessary skills.

The income factors do the markets segmentation that the school will be geared to low to middle to high income students in the following categories:

1. Low income - a family that earns less then 17,500 baht per month. This is 49% of Pathum-Thani.

2. Middle income- a family that earns between 17,500-34,999 baht per month. Approximately 30% of Pathum-Thani.

3. High income -- a family that makes more than 35,000 baht per month. This is approximately 21% of the population of Pathum-Thani.

Scholarships and reductions will be given to those of low income and to applicable students.

II. Superior value proposition

The school promises individualized attention and care. It is located in a beautiful region -- the mountainous, serene area of Pathum-Thani and is organized and orderly whilst being small and homely yet nonetheless spacious and comfortable for its objective. Altogether it has three rooms that can contain sufficient room for 10-15 students. Each classroom has 25-30 students and there are several stimulators. There is also an attractive play area, a patio, and an outdoor garden.

The school building is beautiful and unique in its kind consisting of two stages: the first floor that has an academic tutor room, five classrooms with bathrooms, a langue room, a storage room and a music room. The second floor has three classrooms, an art room an integrity room, and a teacher room.

The kindergarten teaches art, music, language skills and ethics, aside from providing intense and private instruction. Based on research (Harms, 1998), it will also provide the rudiments of arithmetic and logic.

The school also attempts to ensure that all its different sections are quality-inculcated so it has, for instance, an education program and teaching course, which it consistently applies attention to and develops.

The employees are selectively hen-picked and fully qualified and skilled as well as caring and nurturing individuals.

The school offers a home-based modular approach, provides one-on-one tutorial needs and showcases the Commission of Education's approved kindergarten curricula courses for students looking to improve learning skills.

Furthermore, the school offers not only a regular type of learning but also ad hoc classes suiting the child's (and parent's / guardian/s needs) as well as advanced classes and subjects at the child's school itself (without the child needing to leave his/her specific school).

In the latter category, the subjects are both in the summertime, after school (Kelly, (n.d.)), and according to the particular school's structure.

III. Channel (i.e. market and attract clients

Since we will be a new school we will need to discover channels to market our service. These will include the stakeholders and investors that work with and publicize the school as well as that invest their money into the school. Both private and public sectors will be involved with parents as well as involved businessmen publicizing the new school. Obviously the media will be included too, and we will publicize our services via the government.

Targeted advertising, particularly word-of-mouth, makes the most sense. Promotional materials will be placed in mailboxes in houses adjacent to the kindergarten and in all public places particularly those that likely candidates will frequent (both parents / guardians and children). These will include: shops catering to children, parks, restaurants, libraries, all sorts of business, parks, cultural centers, and so forth. Large posters and banners in parks will advertise the new venture. Bright displays with advice on education, rehabilitation of children and our specific offerings will be plasters in clinics. Similar postings will appear in newspapers, as well as on the TV, and local media, Advertising will focus on the specific and innovative offering of the school as well as on health, security, and safety issues.

Experience of other kindergartens indicate that successful advertising is also launched to family and friends of kindergarten-aged children not only to the parents / guardians themselves.

Parents / guardians and wider public can also be invited to a school 'open day' where a sample of the school's 'future' is demonstrated and questions can be fielded and responded to. Parents can also meet and talk to prospective staff.

Promotion

Website

Coupons

Flyers

Business card

Brochures

Media publicity

IV. Key activity

The key institution can be summed up by its Vision, Mission, Objective, and Aims:

Vision

That it will provide students with a quality education whilst developing their physical, emotional, mental, social, intellectual, and moral persona. The preschool will win international renown for its pioneering and innovative programs that empower each individual to recognize and maximize his or her potential.

Mission

The mission adds that arts and sciences will be employed to facilitate the student's introduction to the world of education and that creativity and discovery will be used to motivate them. All elements from personnel and equipment to learning faculties will be structured in such a way so as to motivate the child to learn. The care of the children will conform to the standardized ethics of care and the place will provide modern, comfortable, and excellent service.

Objective and Aims

The objectives adds that the activity of the school will be to develop the physical, mental, intellectual and emotional level of each child on his or her specific level and according to his/her character. All will receive individual attention and the utmost care will be taken to impart this in a state of care and serenity. Imagination will l be fostered and knowledge will be adapted in an age -- appropriate manner.

The aims, further specify that the school accords to the highest standards set by the ministry of education and the standard of national level education.

The whole will be developed on the phenomenological consciousness of children of this age as described by Bertelson's (1999) pioneering research as well as on Meltzoff & Markman (2008) and on Santrock's (2008) description of general child development.

V. Value chain-based resources

The employees are selectively hen-picked and fully qualified and skilled as well as caring and nurturing individuals

Yu-Wha-Bhan-Did Kindergarten is located in a wooded, mountainous region. The school building is beautiful and unique. The kindergarten teaches art, music, language skills and ethics, aside from providing intense and private instruction.

Each class has 2 teachers per 25 students. The classroom will be structured in such a way so that different corners will be set aside for various activities such as for reassign, art, and playing. Each corner will have its own specific and child-level toys. The toys will be diverse and will be rotated on a regular schedule. They will also be exploratory. In line with Emilia (2011) who believes that art can be an important way of teaching the developing child, many art forms will be used to stimulate his/her imagination and learning (Tomlinson, & McTighe, 2006)..

The environment outside the classroom will be such that it will be wooded and folksy. It will be laid with an abundance of different trees, vegetation, and foliage with different regions containing different types of plants in order for the children to learn about nature in a natural manner.

There will also be a huge jungle gym with innovative and advanced play equipment that, whilst suitable to the child's age, will also encourage them to exercise and be agile.

The school, in short, is friendly, comfortable, and a home-away-from-home for students whilst gently sliding them into the world of education as outlined in Anderson's (1998) classic book on child educaiton. As a first step to education, the institution presents education in a nourishing, attractive manner.

The school has:

1. A school security officer

2. School buses

3. A massive and diverse supply of textbooks, learning equipment, information technology, and scholastic play equipment that conforms and is in line with the school's program.

4. It offers healthy and nourishing food & snacks 4-5 times a day

5. Psychological assistance and support

6. Gymnastics area and a pool

Competition / competitive strategy

Thailand has a large and wealthy population with many children and is capable and interested in providing quality education for its children (Thai Tour Info Co., Ltd. (n.d.).).

Pathum-Thani is the large province closest to Bangkok that is the capital of Thailand. From information gathered in 2010, Pathum-Thani has a population of around 985,643 people and approximately 76,267 children of 4 years of age (Parangkio, 2005). This means that any school located in that area has a good opportunity for attracting a sizeable amount of children and making a good business provided that it offered something of interest.

Pathum-Thani does have a lot of preschools but some areas have more than others and some areas have none at all. The Rangsit area, for instance, belongs in the latter category with only one school (and that recently started) in the area. The advantage too with this region is that it is middle to upper middle class meaning that he parents can afford with quality education that the school intends to supply and that there are a lot of professionals working in the area who would likely send their children to such an attractive school too. The area is chock-full with housing, businesses, and accommodations. Any kindergarten established in such n area has established for itself a niche, found a need, and, by pleasing its market, sets itself up for being a profitable enterprise.

A list of kindergarten research (e.g. Thailand - Educational System -- overview) shows that Panthum -- Thani has 19 schools established in its region as of 2010. 12 of these schools are established in Lumlukka; 2 schools are in the Klong-Loung region, three are in Thunyaburri; and one in Rangsit (Top private International Pre-Schools and Kindergartens).

The competition is strong with all schools being highly qualified and skilled as well as excellent reputation and a professional teaching stag. The parents are pleased with their services, the students seem content, and the schools seem to have a wonderful reputation (ibid.).

Our primary niche lies in the fact that we will be only the second school to set up base in a place that mends more schools and is able and willing to pay for the services.

The subjects are certified and teachers are too, the classes are flexible so that parents and guardians can accommodate their busy schedule. This is an unheard of proposition for any school anywhere, and in this the Yu-Wha-Bhan-Did Kindergarten has a definite niche.

The school's niche also consists in its specialized and elite education that incorporates science, music, art and culture as well as a system of ethics.

Furthermore, the fact that Pathum-Thani provides kindergarten programs for school and academic institution that do not have their own in-house services is another way in which it stands and add to their competitive advantage.

The school offers a home-based modular approach, provides one-on-one tutorial needs and showcases the Commission of Education's approved kindergarten curricula courses for students looking to improve learning skills.

VI Relationship

Market research (Kasikrntjai research, 2009) has shown that numerous factors are involved in influencing parents to send their children to kindergarten and to selecting a school as choice.

These are the key factors:

1. Location - most parents enroll their children in a school that is in their vicinity

2. School program -- parents take the quality of the school program as well as its care and quality o staff into consideration

3. School environment -- safety, protection and hygiene is considered. All will proceed according to the universal principles of Duty of Care (Policies: Duty of Care for Students).

4. School reputation -- this is carefully and thoroughly looked into. Word-of -- mouth is usually the best publicity.

Most parents expect the school to focus on two aspects: literacy and child-development. Children learn best through play. They develop through imagination and acquire life skills and academic knowledge that way. This is particularly the case with children of kindergarten age. It is, therefore, recommended that the school use play as its medium of education. Parents will also be interested in the caliber and quality of the play equipment.

Information technology is also an important component (EdWeb.com.(n.d.) )and will too be considered in parent's assessment of the school. Technology will be used heavily and liberally in the school with for instance, DVDs and video employed as well as Success Maker, individual computers, and similar age-related technology. We will also be fully networked with our own site and contacts via social media such as Twitter, face book, and Listserve so that parents and interested others can easily contact us and follow our progress

IX. Cost & cost budget

Whilst the business is enormously expensive, it will want to cater to the needs of deserving children who cannot afford the school. The government will, therefore, assist in covering necessary costs for needy students. The government will also provide for the cost of transportation.

As a whole, the fiscal analysis of the school calculates that it has a net present value of 11.05 million bath, with the internal rate of return being 13.6% at a payback period of approximate 4 years. This makes this project a lucrative one to invest in (Kasikornathai research, 2009).

Traveling costs will also be reduced since most parents send their children to schools that are near their homes. Furthermore, low interest loans provided by the government and government support in education will help towards the financing of the school. The government will also help in providing training courses for the teachers and in standardizing school teaching as well as in covering the costs of some of the regular lessons taught in the school.

T

he capital for the school may come either from the owner and/or from loans. As small-business entrepreneur, I will need to consider both short-term and term-term capital needs. The short-term capital requirements include the working capital, accounts receivable and inventory. The long-term capital needs include land, buildings, machinery, appliances, furniture and equipment. I can rely on some business loans to meet these needs.

I can also divide fiscal requirements into two categories to help me:

1. Sources of equity capital: equity capital will come for private savings, partnership, and / by selling shares of the company. Small business start-ups have suggested that operators of small business should fund at least 50% of the business from their own pockets. My other goals are to search for a partnership; to request loans; and to entice people to invest.

2. Financial resources from loans: this will proceed from the capital of entrepreneurs, as well as from banks, the government, private investors, the insurance company, manufactures and equipment suppliers, and finance companies.

My most advantageous step will be to pursue a lease of a private building for at least 5 years, in order to convince the government of the earnestness of my endeavor. .

Most equipment can be rented from another kindergarten or we can buy second-hand. Purchase of equipment will be gradual.

X. The Projected Income Statement and Projected Statement of Assets, Liabilities and Equity

At this point of my career it is difficult to determine the Projected Income Statement as well as my statement of assets, liabilities, and equities. A rough estimation will be the following:

Projected Income Statement: Development and Start-up Period

Sources of Cash

Equity contributions

80,000

Loan financing

293,176

Total sources of cash

373,176

Uses of cash

Land and building (rent 250 sq. ft)

Utilities (water, heating, electricity, telephone)

Leasehold improvements

195,000

Wages for staff (based on 30 people + deduction for wages 38%)

10,000

Toys, academic material, IT, and equipment

40,000

Stationary

Professional services (inc. Cleaning)

4,250

Medical equipment

Carpeting

Children's furniture (50 pcs)

Organization & Development

9,775

Interior finishes & equipment

11,450

Exterior finishes & equipment

9,000

Child nutrition

200 per day for 3 children

Pre-opening expenses

13,700

Working capital & contingencies

80,000

Total uses of cash

373,176

Illustrative list of cost of services

Service cost per class

Art

Music

Language

Individual counseling psychologist

Private tutor (in school)

Profitability

The kindergarten will be profitable if it will attract at least 20 full-time paying students.

Sources

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