Transcript KF Business Model SUBBED

Low-Cost Private Schools Knowledge Framework
Research methodology template
Low-Cost Private Schools Knowledge Framework
Business Model: Sustainable
7 Market positioning
8 Revenues and Cost
9 Finance
 Demand & Competition
 Customer research / Marketing
 Attraction mechanisms
 Fees / Payment
 Costs / Salaries
 Administration / Surplus
 Valuation
 Investors
 Balance sheet
Low-Cost Private Schools Knowledge Framework | Business model
7. MARKET POSITIONING
7A Competition / Demand
7B Customer research / Marketing
7C Attraction Mechanisms
•How much competition is there from
other local private/NGO/government
schools?
• How is the school catchment area
determined?
•What is the relationship between the
chain and its customers (parents)?
• What type of surveys are used to
evaluate interest in a school opening?
•How well are existing customers
engaged (by communication, for
example)?
•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?
• How is the school marketed prior to
opening?
•How are new customers recruited (eg.
marketing)?
•What is the proximity of the business to
its customers?
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?
Low-Cost Private Schools Knowledge Framework | Business model
9. FINANCE
9A Valuation
9B Investors
• What is the chain currently valued at?
•How has the chain been financed to
date? What is its level of debt versus
equity?
• How much debt does the chain have?
• How does Pearson value the chain?
• What opportunity is there to invest?
•How does the chain acquire real estate
and infrastructure? Are these assets
owned or leased?
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)?
•Is the title of the land owned?
•What is the marginal student
profitability?
•Is the chain locally or internationally
owned?
•How are profits handled (eg.
Reinvestment)?
•Are the schools franchised or directly
managed?
•Is there profit-sharing for school staff?
•Is there the opportunity for expansion
through School Head share participants?