Feasibility study

EXECUTIVE SUMMARY

The feasibility study provides a sound, practical and well researched framework for the development of a Montessori school project in the unexplored areas of Pakistan. Complete analysis is done on the interested area.The opportunity is analyzed keeping in view the current industrial structure. The industrial structure contains two basic structures in the form of Pre School/Day Care and the other one is Kindergarten /Nursery. The Market analyses is done on the basis of positioning options available to a Montessori School System mainly based on household income and on the quality/standard of education offered. Customer Analysis focuses on three basic income groups including lower, middle and upper class group Key success factors for the project may include highly educated and properly trained staff for Montessori education. Education curriculum should be well researched and comprehensive. The school should also preferably not be located in a highly populated location or at a location with high traffic hazards. Classrooms should either be air-conditioned or at least well ventilated. Adequate provisions for physical, either indoor or outdoor or both facilities should be made available. Continuous teacher parent interaction should also be a regular feature of the school education system. In Pakistan no formal registration is required for the Montessori and elementary schools with Education Directorate Schools. Key personnel mainly include Principal, Teachers cocoordinator, Accountant, Teachers, student attendant, Librarian/activity teacher and computer teacher. Land and building location is selected on the basis of cost analysis. Equipment, furniture and fixture requirements are quantified and recommendations are given at each analysis step of feasibility

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INTRODUCTION

The project is about starting a Montessori in the unexplored areas of Islamabad having extreme potential for entrepreneurs. It provides an overview of the opportunity for the small business start up in the form of Montessori school project. Islamabad is a city with offices, government buildings and housing sectors but far from the main cities its peripheral regions are still lacking advancement in the field of quality education, residence and health. The area is mostly dwelled by low income government employees who have come here from other cities of Pakistan including all provinces, FATA and FANA. People here want their children to become the stronger representatives of their future. The feasibility will guide the entrepreneurs to make the right decision and to get benefit in the form of a profitable business as well as benefit the society and community of these areas 1.1 Methodology The analysis methodology is represented below

PROFIT ANALYSIS

KEY FACTORS

CUSTOMER ANALYSES

HUMAN RESOURSE

MARKET ANALYSIS

EQUIPMENT REQUIREME NT

KEY PERSONNEl

SUITABLE LOCATION

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PURPOSE

Feasibility study helps the entrepreneurs in cost and benefit analysis of a certain project. They form the basis of decision making .this report covers various aspects of feasibility report like profit analysis, environmental impact 3 PROJECT PROFILE

The project is about starting a Montessori school forelementary education of children. The proposed plan is to start classes ranging from playgroup to class II 3.1 Project Brief Feasibility study provides information regarding investment opportunity for setting up a Montessori school in remote area Nilore of capital territory Islamabad. It is located in an easy approachable location. 3.2 Opportunity Rationale Montessori school education is the first formal learning stage of child .it not only helps the child to learn different alphabets ,words, sounds and characteristics but also help him to learn socialization at an early stage. Pakistan is a developing country and the remote areas are lacking behind the main stream of education quality and standard Schoolswith high reputation like SIDDIQUE PUBLIC SCHOOL, EDUCATORS and BEACON HOUSE have stringentselection process,for which Montessori schools provided the necessary training. This has alsogiven rise to high demand forMontessori school systems that can prepare children for admission to standardized schools growing population in Pakistan has exhausted then limited capacity of existing private as well as public primaryschool systems .the growing population has put tremendous pressure on the existing public sector education infrastructure in the country. The emergence of such highquality Montessori school in the area will exploit the opportunity for establishing viable school systems in the country 3.3 Project Cost Total project cost for setting up a Montessori school is estimated to be 2.38 million 3.4 Proposed Capacity

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It is proposed that students be admitted for playgroup to class II.There are ten proposed classrooms for the school having a total capacity of 240 students.however, this capacity may notbe achieved in the initial years of operations

CURRENT INDUSTRY STRUCTURE

The Montessori education in the country side is yet at an earlystage to absorb the growing demand. However few school systems have readily established themselves in the area. The only prominent name in Montessori educationist is Sun Rise Montessori School whereas some secondary level schools like Green Hill School and Bright Star Model School are also running the playgroup classes The education system of the area and generally of Pakistan is as follows: 4.1 Current Industry Structure

Atpresent, most of the elementary school systems in the country fall in one of the following two categories 4.1 Pre-School/Day Care Nursery/Kindergarten/Montessori/Test Preparation Centers Pre School/Day Care

The Pre School/Day Care admits children ranging from 3 months to 3 years of age. However, on an average achild of two and a half years of age is normally admitted to a Pre-School.PreSchool organize training that includes recognition of numbers and alphabets, introduction to basic shapes, bodyparts, poems and basic religious knowledge 4.2 Nursery/Kindergarten/Montessori

The tier of education system is the first stage of formal learning process for a child. Normally a child of three years of age is admitted to this system of education .Most school systems at
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this level adopt their own teaching methodology. The schools prepare their students to socialize with other children in the same age bracket and familiarize them for a more formal primary level education.

5 MARKET ANALYSIS

There are two broad market positioning options available to aMontessori School System based on household income based on the quality/standard of education offered

Irrespective of the education services, income based target market will play a crucial role in the overall positioning of the school. Any entrepreneur planning to open up a Montessori school should first decide upon the objective of the venture. Various options available in this regard may include: To plan a Montessori school with emphasis on Daycare services To establish a school as a preparatory School for other reputed Primary Level Schools. To establish a Montessori School with some services towards primary and high school levels

CUSTOMER ANALYSIS

Based on income level, the school can position itself for any of the following three broad categories: 6.1 Upper Income Group The upper income group segment is quality and reputation conscious. Most parents of this group are self-employed businessman, high paid government officials of PAEC, or private sector executives working in the federal area of Islamabad 6.2 The Medium Income Group The schools that deal with this income group are charging a fee ranging from Rs.5, 00010,000 per month. These schools are offering vide range of facilities and ease from educational point of view 6.3 The Lower Income Group

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Schools in the category normally charge a fee ranging from Rs. 1,500-4,000per month. These schools cater to children of well-educated and professionally employed parents. The important characteristics of these schools include well located school buildings that may be custom built or rented premises, modern course work adopted by other modern school systems, and comfortable class rooms with some provisions for playing area 7 KEY SUCCESS FACTORS

At the Montessori school level, teachers/attendants play a critical role in the success of learning process therefore; staff employed by the school should be highly educated and properly trained for Montessori education. Education curriculum should be well researched and comprehensive. In addition to paper course work, visual and other teaching tools should be optimally used. As parents are conscious about the wellbeing and safety of their children at schools, therefore school environment should ensure security and should be free from any apparent hazards. The school should also preferably not be located in a highly populated location or at a location with high traffic hazards The area of the classrooms should either be air-conditioned or at least well ventilated. Classrooms should also be well equipped with teaching as well as extra Curricular activity aids. Adequate provisions for physical, either indoor or outdoor or both facilities should be made available. Continuous teacher parent interaction should also be a regular feature of the school education system

8 REGULATIONS

In Pakistan no formal registration is required for the Montessori and elementary schools with Education Directorate Schools. However, if the schools are planned for expansion then they are required to get registered with Provincial Education Department in the office of Education Directorate Schools .The application is to be submitted on prescribed form which can be obtained from the department .Domestic rates apply on the utility bills if an institution is registered with the department

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9 HUMAN RESOURCE REQUIREMENTS

9.1 Key Personnel 9.1.1 Principal The principal is responsible for coordinating all the activities for the school including the hiring of teachers, developing connection with parents, maintaining and developing the brand name of the school. 9.1.2 Teachers coordinator An experienced and trained Montessori School teacher is recommended for this post. The coordinator would be assisting the principal in all school matters. The post is responsible for teacher, attendance, their performance and evaluation. Coordinator also manages different special projects to increase coaching awareness among teachersinclude arranging guest speakers, visits and workshops 9.1.3 Accountant The accountant will be responsible for book keeping and maintainingaccounts, salaries and other administrative expenditures. 9.1.4 Teachers Experienced teachers or fresh graduate with a natural aptitude for teaching should be employed .a balanced mix of experienced and fresh teachers are recommended for efficient running of the school. Each teacher shall be given a class and held responsible for proper training, imparting knowledge, arranging co-curricular activities for the children and their performances in the examinations 9.1.5 Student Attendants The students in the elementary institutes are very young and may also need attendants or baby-sitters .Each class will be having one attendant for the children 9.1.6 Librarian /Activity Teacher One person is recommended for running the library and for activity room 9.1.7 Computer Teacher The person should be responsible for the introduction of IT to the young students anf for proper arrangement of students games and basic computer learning

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9.0 Key Personnel and salary

10 EQUIPMENT REQUIRED

The details of equipment required for the project are as follows: Table 10.1 Office equipment requirement detail

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Table 10.2

Other equipment requirement detail

Table 10.3 Furniture and fixture detail

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11

LAND BUILDING

11.1 Area Requirement For two hundred and forty students(240),2.5 canal of land would be sufficient .The covered area should have 10 classrooms, one common room for teachers and one for principal one for teacher co-coordinators and one for the administration staff. A big hall should be allocated with proper divisions for library/entertainment room and computer section. An adequate area should be allocated for the playground. The playground should have seesaws, slides, monkey bars and other playing equipment and tools Table 11-1 Covered Area Requirement

11.2 Recommended Mode for Acquiring Land The proposed project should be established in a rented building to reduce initial infrastructure cost 11.2.1 Building Rent Average monthly rent for the building required Rs. 50,000 to 60,000 Table 11.2.1 Building Rent Cost

11.3 Suitable Location The suitable location depends upon the target market. The peripheral areas of Islamabad like Khana Pul, Bara Kahu ,Nilore and shehzad town are attractive places for the project to flourish because the population is growing exponentially and there is lack of standardized facilities(See Map 11.3- Page 10)

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12. FINANCIAL ANALYSES

12.1 Project Economics Table 12-1 Project Cost/Capital Requirements

13 REVENUE ASSUMPTIONS 13.1 Revenue Assumptions

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Figure 11.3 Map of Target Area

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