School Business Plan Template

School Business Plan

If you want to start a school or expand your current school, you need a business plan.

The following school business plan template gives you the key elements to include in a winning business plan. In addition to this template, a well-crafted plan will include market research to help you better understand the school industry, market trends, your competitive advantage and your target market. It will also help you craft a smart marketing strategy and a strong financial plan.

You can download our School business plan template (including a full, customizable financial model) to your computer here.

 

Sample School Business Plan

Below is a school business plan example with each of the key sections to help you write a school business plan for your own company.

I. Executive Summary

Business Overview

[Company Name], located at [insert location here] has been providing quality education to the community’s school children since [year established], [Company Name] has had over 1,200 wonderful and amazing elementary, middle school, and high school graduates.

We promote academic, artistic, and athletic excellence in a close-knit learning environment, with a challenging curriculum that cultivates intellectual curiosity. Furthermore, in our school, we offer a low teacher to child ratio, where teachers can concentrate on their students well. We develop confident, continual learners by establishing behavioral supports and the social culture needed for students to achieve social, emotional, and academic success.

Products Served

[Company Name] offers premium private education at an affordable tuition fee. We provide a challenging education where students may explore their true potential and a safe space where they can freely discover and express themselves.

Customer Focus

[Organization Name] primarily serves children within a 5-mile radius of [location]. The demographics of these customers are as follows:

• 24,226 residents
• Average income of $44,200
• 61.9% married
• Young couples: 53%
• Median age: 35 years

Management Team

[Company Name’s] principal is [Founder Name] who has been working as a teacher for more than 12 years. [Founder Name] has successfully led [School Name] for the past 5 years as its principal.

[Founder Name] is supported by a team which includes [Founder 2] and [Founder 3] that have experience teaching students, managing finances, and running businesses. Specifically, our team has solid experience in being effective teachers, connecting to different types of students and achieving key goals.

Success Factors

[Organization Name] is uniquely qualified to succeed due to the following reasons:

• [Location] does not have a lot of schools that offer affordable, quality education.
• Our teachers are passionate and skillful. They can easily adapt to any learning style a child may have.
• Low teacher to student ratio for better focus
• The management team has a track record of success achieving the goals of our organization and other organizations for which we have worked.
• Members of our community fully support and believe in our mission.

Financial Highlights

[Company Name] is currently seeking additional donations of $380,000 in order to fulfill our mission. Specifically, these funds will be used as follows:

• Salaries: $80,000
• School Materials (books, toys, desks, chairs, etc.): $180,000
• Administrative Expenses: $120,000 to pay for lease costs, ongoing operational expenses, marketing.

Top line projections over the next five years are as follows:

	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	$738,000	$1,716,272	$2,007,297	$2,331,125	$2,694,524
Total Expenses	$639,595	$1,021,515	$1,110,127	$1,190,308	$1,273,715
EBITDA	$98,405	$694,757	$897,169	$1,140,817	$1,420,809
Depreciation	$16,560	$16,560	$16,560	$16,560	$16,560
EBIT	$81,845	$678,197	$880,609	$1,124,257	$1,404,249
Interest	$18,554	$16,235	$13,916	$11,596	$9,277
Pre Tax Income	$63,291	$661,962	$866,694	$1,112,661	$1,394,972
Income Tax Expense	$22,152	$231,687	$303,343	$389,431	$488,240
Net Income	$41,139	$430,276	$563,351	$723,230	$906,732

 

II. Company Overview

Who is [Company Name]?

[Company Name] aims to give the children of [Location] a safe and secure place to learn and explore their potential. Our school offers a close and personal learning experience, catering and adjusting to each of the children’s needs accordingly.

The school environment provides parents the feeling that their children are secure and well-taught without compromising the ‘fun’ in education. We promote academic, artistic, and athletic excellence in a close-knit learning environment, with a challenging curriculum that cultivates intellectual curiosity. Furthermore, in our school, we will offer a low teacher to child ratio, where teachers can concentrate on their students. [Company Name] does not only value the child’s academic excellence, but also their psychological, social, and emotional well-being.

[Company Name]’s History

[Company Name] started as an idea from a group of schoolteachers, namely, [Founder 1], [Founder 2], and [Founder 3]. They are university pals who are passionate about teaching and children. They have seen the gaps in education in [Location] and wanted to create a school that elevates the academic environment for the children of [Location].

Their plans to build a school started in [year], but it was only until [month, year] that they finally completed all the paperwork and met the legal requirements. [Founder 1] will act as the principal as he/she has had previous experiences with overseeing a school. [First Name 1] worked as the principal for [insert school] for over 5 years.

[Founder 2] also has a solid teaching background and has worked as a department head at [insert school] for 7 years. [Founder 3], although having earned a degree in education, he/she managed a family business while working part-time as a substitute teacher in [insert school].

[Company Name]’s Products/Services

[Company Name] is dedicated to teaching the children of the community and making a positive impact on their lives.

In order to achieve this, we offer many services including the following:

• Have passionate teachers that genuinely care for the children and have the skills to teach different types of students
• Low teacher to student ratio for better learning
• Affordable, quality education
• After-school tutoring services
• School gatherings and events to develop children’s social skills
• Clubs (sports, arts, math, etc)

 

III. Industry Analysis

The private schools industry has experienced steady growth in the past five years. The key industry drivers are economic growth, the rise in numbers of K-12 students, an increase in the number of families with both parents working, and government initiatives to support education.

In recent years, school choice programs have garnered support from state legislatures across the country. Currently, private school choice programs include voucher programs, education savings account programs, scholarship tax credit programs and individual tuition tax credits.
In general, the proliferation of these school choice programs makes private schools more accessible to a greater number of students, bolstering industry revenue growth.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the families and the children in [company location]. The area is mostly populated by young couples and new families that have disposable income and can pay a premium for their children’s education.

The precise demographics of the town in which our location resides is as follows:

	Wilmette	Winnetka
Total Population	26,097	10,725
Square Miles	6.89	3.96
Population Density	3,789.20	2,710.80
Population Male	48.04%	48.84%
Population Female	51.96%	51.16%
Target Population by Age Group
Age 18-24	3.68%	3.52%
Age 25-34	5.22%	4.50%
Age 35-44	13.80%	13.91%
Age 45-54	18.09%	18.22%
Target Population by Income
Income $50,000 to $74,999	11.16%	6.00%
Income $75,000 to $99,999	10.91%	4.41%
Income $100,000 to $124,999	9.07%	6.40%
Income $125,000 to $149,999	9.95%	8.02%
Income $150,000 to $199,999	12.20%	11.11%
Income $200,000 and Over	32.48%	54.99%

Customer Segmentation

We primarily target the following three customer segments:

• Couples that have school-aged children: We will offer a safe environment where the children can learn and where these parents will feel comfortable to entrust us with their children.
• School-aged children: Children ages 3–18 years old are our target students. We will build an inclusive and academically challenging environment where the kids can freely express their ideas.
• Young Couples: The majority of young couples who plan to have kids are likely to plan for their children’s future as well. [School Name] will build a reputation that will make people want to enroll their children with us.

 

V. Competitive Analysis

Direct & Indirect Competitors

Waters Independent School
Founded in 1968, Waters Independent School is a non-profit and tax-exempt independent school system. The school is governed by an independent Board of Trustees and offers preschool through eighth grade programs. WIS is accredited by the state’s Council of Independent School (FCIS).

Waters Independent School has small class sizes with low student to teacher ratios. Further, WIS’ Programs includes a strong academic foundation coupled with programs in the arts, physical education, media/technology, foreign language, and extracurricular areas.

Hill Preparatory School
Founded in 1923, Hill Preparatory School is a private, non-sectarian, coeducational, college preparatory day school. It offers PK-12 programs in a safe, student-centered environment. HPS supports its students through the challenges of the school year with one-on-one attention from dedicated faculty, with robust services like The Learning Center and the College Center, and with the most advanced educational technology. The campus spans 28-acres and has a new 60,000+ square foot facility.

Future Leaders Preparatory School
Founded in 1968, Future Leaders Prep is a private school for PreK3-8th grade. FLPS offers preschool, elementary school and middle school programs and offers the International Baccalaureate program of study for all students. Teachers are endorsed in gifted education through a master’s level grant with [local University]’s College of Education Gifted Program. In addition to the school, Future Leaders offers community programs such as music, dance, art and theatre lessons through the Community School of the Arts, youth sports in the Community School for Sports and the 7-week summer camp.

Competitive Advantage

There are a lot of schools in [Location] but none of them provides the same quality of education that we at [Company Name] provide, specifically the following:

• Location: [Company Name]’s location is near the center of town, giving members of our community easy access for parents and their children.
• Passionate and Skillful Teachers: [Company Name] will hire teachers with a strong academic background and who are skillful in handling all types of children.
• Low teacher to student ratio for better learning
• Affordable, quality education: Most of the schools in the area offer their services at a very expensive price. Our fees will be moderately low so that good education is accessible for all families.

 

VI. Marketing Plan

You can download our School business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the school’s unique value proposition:

• Providing premium education at an affordable price
• Providing a supportive and challenging place for children to learn
• Giving parents the assurance that their children will reach their full potential

Promotions Strategy

[Company Name] promotes itself to the community in order to reach families. The organization’s promotions strategy to reach these individuals includes:

Direct Mail
[School Name] blanket neighborhoods with direct mail pieces. These pieces will provide general information on [School Name], and will discuss program offerings, school curriculum, faculty and facilities, and school environment.

Public Relations
We frequently contact local and area newspapers and television stations to tell them about the value proposition of [Company Name].

Advertising
[Company Name] does low-cost advertising in local newspapers and sponsors community events in order to build brand awareness. The company will also distribute flyers in the city.

Ongoing Customer Communications
[Company Name] maintains a website and publishes a monthly email newsletter to tell parents and community members about new events, accomplishments and more.

 

VII. Operations Plan

Functional Roles

In order to execute on [Company Name]’s business model, the organization needs to perform many functions including the following:

Service Functions

• Teachers
• Administrators
• security
• Food service
• Custodian

Administrative Functions

• General & Administrative functions such as bookkeeping, legal and marketing, etc.
• Enrollment process and records management
• Student discipline

Milestones

[Company name]’s long term goal is to offer the best quality of education to all students of the [city] area. We seek to raise the standard by which other educators are judged.

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

Date	Milestone
[Date 1]	Finalize lease agreement
[Date 2]	Design and build out [Company Name]
[Date 3]	Hire and train initial staff
[Date 4]	Kickoff of promotional campaign
[Date 5]	Launch [Company Name]
[Date 6]	Reach break-even

 

VIII. Management Team

Management Team Members

[Founder 1] serves as the principal/head of the [Company Name] he/she manages and oversees the school. [Founder Name 1’s] prior work was to be the principal for [insert school name]. He/She also has a lot of experience teaching students as he/she taught for more than 12 years now.

[Founder 2] manages the school’s finances. She/he has a degree in accounting and a second degree in education. [Founder Name 2] also has a good teaching background and has worked as a department head teacher at [insert school] for 7 years. With her double degree she can both be the school’s treasurer/auditor and a teacher as well.

[Founder 3], although having earned a major in education, he/she managed a family business and also worked part-time as a substitute teacher in [insert school]. She/he is in charge with the marketing and business side of the school. She/he also is the main contact person for potential organizations/sponsors/donors.

Hiring Plan

In addition to our current team, we plan to hire the following personnel:

• 2 Maintenance Staff (Janitors and Facility maintenance)
• 1 Security Guard
• 3 Full-time teachers
• 2 Substitute teachers
• 2 Cafeteria Staff
• 3 Bus Drivers

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues come from student tuition fees and donations from both individuals and corporations.

The major costs for the company will be staffing, location maintenance, equipment and materials. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $380,000 in order to hire new staff, expand its program offerings, school materials, and build the school.

Specifically, these funds will be used as follows:

• Salaries: $80,000
• School Materials (books, toys, desks, chairs, etc.): $180,000
• Administrative Expenses: $120,000 to pay for lease costs, ongoing operational expenses, marketing.

5 Year Annual Income Statement

		Year 1	Year 2	Year 3	Year 4	Year 5
Revenues
	Product/Service A	$151,200	$333,396	$367,569	$405,245	$446,783
	Product/Service B	$100,800	$222,264	$245,046	$270,163	$297,855
	Total Revenues	$252,000	$555,660	$612,615	$675,408	$744,638
Expenses & Costs
	Cost of goods sold	$57,960	$122,245	$122,523	$128,328	$134,035
	Lease	$60,000	$61,500	$63,038	$64,613	$66,229
	Marketing	$20,000	$25,000	$25,000	$25,000	$25,000
	Salaries	$133,890	$204,030	$224,943	$236,190	$248,000
	Other Expenses	$3,500	$4,000	$4,500	$5,000	$5,500
	Total Expenses & Costs	$271,850	$412,775	$435,504	$454,131	$473,263
EBITDA		($19,850)	$142,885	$177,112	$221,277	$271,374
	Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
EBIT		($56,810)	$105,925	$140,152	$184,317	$234,414
	Interest	$23,621	$20,668	$17,716	$14,763	$11,810
PRE-TAX INCOME		($80,431)	$85,257	$122,436	$169,554	$222,604
	Net Operating Loss	($80,431)	($80,431)	$0	$0	$0
	Income Tax Expense	$0	$1,689	$42,853	$59,344	$77,911
NET INCOME		($80,431)	$83,568	$79,583	$110,210	$144,693
Net Profit Margin (%)		-	15.00%	13.00%	16.30%	19.40%

5 Year Annual Balance Sheet

		Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
	Cash	$16,710	$90,188	$158,957	$258,570	$392,389
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$21,000	$23,153	$25,526	$28,142	$31,027
	Total Current Assets	$37,710	$113,340	$184,482	$286,712	$423,416
	Fixed assets	$246,450	$246,450	$246,450	$246,450	$246,450
	Depreciation	$36,960	$73,920	$110,880	$147,840	$184,800
	Net fixed assets	$209,490	$172,530	$135,570	$98,610	$61,650
TOTAL ASSETS		$247,200	$285,870	$320,052	$385,322	$485,066
LIABILITIES & EQUITY
	Debt	$317,971	$272,546	$227,122	$181,698	$136,273
	Accounts payable	$9,660	$10,187	$10,210	$10,694	$11,170
	Total Liabilities	$327,631	$282,733	$237,332	$192,391	$147,443
	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	($80,431)	$3,137	$82,720	$192,930	$337,623
	Total Equity	($80,431)	$3,137	$82,720	$192,930	$337,623
TOTAL LIABILITIES & EQUITY		$247,200	$285,870	$320,052	$385,322	$485,066

5 Year Annual Cash Flow Statement

	Year 1	Year 2	Year 3	Year 4	Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)	($80,431)	$83,568	$79,583	$110,210	$144,693
Change in working capital	($11,340)	($1,625)	($2,350)	($2,133)	($2,409)
Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
Net Cash Flow from Operations	($54,811)	$118,902	$114,193	$145,037	$179,244
CASH FLOW FROM INVESTMENTS
Investment	($246,450)	$0	$0	$0	$0
Net Cash Flow from Investments	($246,450)	$0	$0	$0	$0
CASH FLOW FROM FINANCING
Cash from equity	$0	$0	$0	$0	$0
Cash from debt	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
Net Cash Flow from Financing	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
SUMMARY
Net Cash Flow	$16,710	$73,478	$68,769	$99,613	$133,819
Cash at Beginning of Period	$0	$16,710	$90,188	$158,957	$258,570
Cash at End of Period	$16,710	$90,188	$158,957	$258,570	$392,389