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Author Topic: SETTING UP A PRIVATE SCHOOL  (Read 4271 times)

googsters

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SETTING UP A PRIVATE SCHOOL
« on: May 26, 2006, 11:10:46 pm »
Pls. post here your experiences, ideas, suggestions and other concerns with regards to establishing a private school. We are presently operating a private school offering initially preschool then elementary courses. These past years, small private schools mushroomed in most of the fast growing communities in metro manila and CALABARZON. We thought there is something in this endeavor that people are investing so much. Honestly, the primary thing that made us decide to venture in this kind of service was PROFIT. But, as time goes by, 8 years to be exact, we realized that non-monetary profit is what you will get the most. Financial reward is not so much, most of the income will go to yearly renovations and constructions. You end up having big assets and short of cash. Whenever we think of closing shop, social and moral obligations compel us to continue the operation. I know there are school owners who are successful in terms of financial and non-monetary income but i'm sure also a lot are like us. Our case is a case of poor business planning and wrong motive because education is not a business, it is a mission. It took us sometime to realize this. With this new mindset, we hope to gain satisfaction in seeing children growing in knowledge and in wisdom. To those who are thinking to set-up a private school, better check your motive first and if you have the heart to give first before you receive.

GerelRoa

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Re: SETTING UP A PRIVATE SCHOOL
« Reply #1 on: May 29, 2006, 11:30:36 am »
Hello Googsters,

I have been an educator for more than five years and from my standpoint, schools will always profit, whatever happens, for as long as they strive and commit to giving quality education to children.   The problem with commercialized education stems from the fact that decisions to act on certain aspects of the operations are usually tied up with profit rather than fulfillment.   The commonality of all the sustainable school and school systems that I have encountered seems to be in their ability to satisfy the needs of the parents: to educate their children.   Most of the "puwede na yan" schools I know to have started when I was still in college are all closed today, in contrast with schools who invested in their faculty, their solid curriculum and their infrastructures.

I think it is easier for money to flow into a school committed to service.

Just my two centavos

Cheers!

Gerel Roa
FoodBytes InfoServices

zine

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Re: SETTING UP A PRIVATE SCHOOL
« Reply #2 on: May 30, 2006, 04:12:54 pm »
hello!!

educational institutions are considered as non-profit organizations so they are tax-free (income tax lang po)

my clients kaming private school catering from prep to grade 3...most of their expenses for the first years are really additional capital investments...

the usual mindsetting is pag school talaga, profit na yung makapagproduce ka ng quality students..hmmm...kasi usually, ang nagse-set up ng mga schools are teachers...not entrepreneurs...

pinaka-problem talaga ng school yung financial management particularly yung internal control: pinapaubaya minsan sa dean or faculty ang financial mgnt...which should not be...

kung ako man ay investor sa isang school, i stand corrected...investor ako, not a charity-giver...i put up a business to let my money earn...


alnl01 -

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Re: SETTING UP A PRIVATE SCHOOL
« Reply #3 on: May 30, 2006, 04:50:26 pm »
There are also a lot of mushrooming private schools catering
to special children. At first they seem to be offering
really good samaritan service to the special children.
But later on you will realize that they are
after the big profit they could earn in teaching
these differently abled kids.

I still have to find a school who will cater to these
kids with money as their secondary motive.

zine

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Re: SETTING UP A PRIVATE SCHOOL
« Reply #4 on: May 30, 2006, 05:19:57 pm »
i've been with charities, foundations, NGOs...for social responsibilities daw...no offense meant on the social workers...medyo na-disillusioned lang ako...maybe because i was with the finance side so i was exposed to the expenses made...what constituted most of the expenses e manpower cost + fixed assets..konti lang nman talaga napupunta sa project

no offense meant...

GerelRoa

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Re: SETTING UP A PRIVATE SCHOOL
« Reply #5 on: May 31, 2006, 08:21:59 am »
Hello,

I think the bottomline is in financial management and proper planning.   When pouring in money to finance a school or a project, infrastructure and manpower initial investments must be taken into account at the onset.   The real work for the projects will come in after establishment and even then, the manpower component cannot be ignored.  After all, it is the people that will take care of the project, hence, the project has to take care of its people.

For schools, cash inflow is hard in the first few years of establishment, but with proper planning and financial management, there should be no problem.   The problem stems from the fact that some school starters have unrealistic targets for profits in the first few years and tends to get disenheartened when they don't meet it and in many instances, they skimp on the poor teachers instead of accepting the losses.

In the end, it all boils down to planning and proper financial management.   To win in the long run, starters needs to accept losses in the first few years.

Cheers!

Gerel Roa
FoodBytes InfoServices

 

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