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  1. #41

    Join Date
    Nov 2007
    Posts
    2,112

    There's some relevant information in these threads (albeit they are a bit dated now).

    https://geoexpat.com/forum/145/thread77461.html

    Setting up a PlayGroup Biz in Kowloon - Hong Kong GeoBaby


  2. #42

    Join Date
    Oct 2015
    Posts
    1,262

    Centres come in all shapes and sizes...

    HKAMS is run by a young couple who teach violin and piano to kids...we send our boys to them and when they started they rented a small room below Tuen Mun Town Hall on an 'ad hoc' basis. When they got 'big enough' they moved to ‘Park Lane’ which is the big tutorial centre building in Tuen Mun…in an odd turn of events, they moved into our building last year…very convenient and much cheaper rent!

    We had lessons in our sitting room in the beginning…we were going to rent a classroom from another centre when we started growing but the opportunity for our current place came along and I sensed we were going to get busy.

    Others have millions to invest…

    Here's a 'hypothetical' centre for the OP so she has something to consider...

    Per Month

    Rent $8000 (800sqft in the N.T.s)
    Utilities $1500 (This is an average, Electric can be $300 - $1800)
    Telcoms. $1000 (internet/phone/fax./mob)
    Stationery $1000
    Printing $1000
    Petty Cash $1000 (Coffee/Water/Blah)
    Marketing $1000

    THESE FIGURES ARE ROUGH OFF THE TOP OF MY HEAD…MY WIFE CRUNCHES THE NUMBERS!

    Monthly Outgoings $14500

    The going rate in the N.T.s per hour, per student in 7 kid groups is averaging at around $175

    Assuming you'll do all the labour:

    $14500*12/52=$3400 = your weekly outgoings.

    $3400/$175=20 = The number of student hours you need per week to break even.

    You want to take home 25k

    $25000*12/52=$5800

    $5800/175=33 = The number of extra students you need to make your salary. In total, you need 53 students…one thing that’s amazing in Hong Kong, I’ve never lost a dollar to non-payment, everyone pays and most pay promptly!

    53 students seems like 8-10 groups.

    We have around 100 students...our figures don't look too much different from what I posted above except we have 5 classes on Saturday too. We also have two after school clubs with 16 kids in each and I teach during the day, 9-4, 4 days per week...at least two thirds of our students come from where I teach. The rest come from schools within walking distance of us.

    In the beginning we had a mix of groups and 1-1s…I even had a few 1-1s outside the centre, to be fair, they were higher end…anyway, we’ve always favoured groups and now we have no 1-1s.

    My longest work day is Monday where I work 9-7…most days we finish before 6 and we have Tuesday and Sunday off…Saturday we work until 4. My wife works with me so it is very much a p/t job for her and she is ‘free’ most of the time…she spends her days hiking, singing karaoke or having her nails done in Shenzhen…before I get a slap, she also keeps the house.

    It’s very difficult to do this business if you’re not a couple or a partnership IMO…also, you have to have a solution if you get ill or something…you need two people, minimum.

    There are lots of opportunities for passive income…materials selling, subscriptions, toys, we sell Strider bikes and Trunki products for example…we had a Putonghua teacher for a few years who paid us a percentage of her income to use our centre…lots of things you can do if you have a centre…in the summer we run a 6-week summer course (20 students per group morning group and afternoon) Total of 120 students…of course, there is no normal school in the summer so we need extra income! It also gives another NET a full time income over the summer as we need 3 teachers...last year we also 'hired' a secondary student on work experience...so it gives opportunities to others too...

    A couple of other things to remember when you set up are deposits…there’s rent of course but the utility companies want deposits…I found out that you can negotiate very hard on these to get those deposits down.

    It's important to understand that I am well known in my community…I teach in and have taught at local schools (in my area) Over the years I've literally taught 1000s of students…this is key in my opinion, if you want to be independent that is…obviously a franchise will come with goodwill included (in theory)…

    Last edited by Lord Dashwood; 11-04-2016 at 09:03 PM.

  3. #43

    Hi, Kommal,

    I am from India, about to shift to HK in sept, I am also looking forward to start some biz of my own, let me know if you are looking for some partner.


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