AfterSchool as an Investment (fees, insurance, license, financial)

[Tampaite]

Am looking to invest a small amount in an 'AfterSchool' program. Someone that I know is starting the school from ground-up and doesn't have any financials to back-up but certainly has projections.

Does anyone have any ideas on the profitability and/or longevity of such businesses?

I understand these are like daycare schools but for special need kids etc.

Appreciate your response.

[Robinstyler]

These are tough to project unless you are sure that this program can procure a long term grant. Grant funding will be your ticket to knowledge.

[TrapperJohn]

The insurance could easily run $100k+ a year.

Facilities are expensive. Utilities. Certifications. License and fees.

Labor. Payroll taxes.

On the revenue side, I just googled and the average annual cost of after school programs varied from $2k to $8k depending on region.

If you were in a low cost area, the first 50 kids would barely cover the fixed costs before labor. You would have to run some numbers but it is a volume game.

Bring your checkbook. You're going to need it.

[mathjak107]

these places are a dime a dozen our way.