How to Start a Preschool Business in India 2022 - Teeny Beans

How to Start a Preschool Business in India 2022?

Preschool businesses in India

Early childhood education is of utmost importance for the comprehensive development of the child. Most of the brain development happens in the initial years of life. Hence it is important to make the most of these years and use them for the organised learning and development of the child.

And this is the very reason why early childhood education is steadily gaining momentum across the world. India is no exception to it. With the increasing awareness regarding the importance of teaching the child early, preschool businesses in India are on the rise like never before.

Is preschool a profitable business in India?

With so many preschools in the market, can preschool businesses in India be really profitable? The answer to this is ‘Yes’. Over the past few years, the preschool market is rapidly growing in India. Additionally, the shift is more towards the organised sector where many are opting for a non franchise model which is more cost-effective.

The reason for the growth of the organised preschool market and ultimately the preschool business in India is because of the following reasons -

Increase in the number of nuclear families

Employment is the major reason for the change in the structure of the family. This has led to an increase in the number of nuclear families which means less of elderly people in the house. And due to this, there are no reliable people in the house to take care of the young kids in the family.

This has led to the increase in the number of enrollments in the preschool. Many parents feel safe leaving their kids in preschool with other kids where their safety and security will be taken care of.


Preschools help in providing a foundation for the child to build upon. The learning environment that a good preschool fosters is important as it develops curiosity and creativity within the child.

Today’s parents are well aware of this and want to do everything within their reach to ensure the well-being of their children. To give their child the best start in life and provide them with good learning opportunities, parents are opting for high-quality preschools. And this is one of the major reasons for the increasing demand of preschool businesses in India.

Increase in the spending capacity

Today, when both the parents are working, the spending capacity of the family has also increased. Many workplaces are breaking gender stereotypes by supporting women even during their motherhood journey. This has encouraged women to continue with their jobs even after the birth of the child.

Due to this, parents can now easily opt for a quality preschool without thinking much about the expenses involved.

So, once you have decided to start a preschool business in India, the next logical step is to prepare a business plan for your preschool.

Preschool Business Plan

A business plan is a way of describing what your company wants to achieve and how it plans to achieve it.

When it comes to a playschool business plan, it is important to consider the expenses, the fee structure, the target audience, the location, etc. Below mentioned factors will help you define a business plan for your preschool.


It is important to consider how many enrollments are you expecting in a year. Also, the ages that you want to enrol will play a vital role. Generally, the pricing tends to differ with age.

Also, your experience and background will play a major role in deciding the ages that you want to enrol for your preschool.

Number of hours of operation

Another important question is - do you want to start the preschool operation on a full day basis or a part-time basis? Some parents may need after school care for their children.

You should assess the needs of the parents in your preschool’s locality. Only then your preschool business will be in a position to address the requirements of the Indian parents.

Operational cost

It is important to consider the operating cost of your preschool in order to ensure its proper functioning. Take into account what facilities you would want to provide. Specify the number of departments you want in your preschool. Also, how many teachers do you want to hire? The requirements of the non-teaching staff also need to be clear.

The operational cost will be the deciding factor in your decision to start a preschool business in India. Hence, you will have to exercise your due diligence before venturing into this business.

Marketing plan

Your marketing plan is one of the most crucial factors of your playschool business plan as it will determine the success of your business. A good marketing plan will help you identify your target audience and your competitors. It also assists in identifying the strategies used by your competitors for marketing.

It will also help you to make your own strategy to create brand awareness and reach your target audience efficiently. Your marketing plan will aid you in creating efficient strategies to acquire new customers. You can also revisit your goal to make it more reasonable and achievable.

Right location

The long term profitability of any business is dependent on its location. The same holds true for a preschool business in India. The right location can help you reach your break-even at the earliest.

The demographic of your location is also very important. Your location should be surrounded by the customers that you want to target. For example, a young working couple with a nuclear family background can be your ideal customer. Find a location with such people in your vicinity.

Safe infrastructure

Infrastructure is the first thing that the parents will notice when they come for admission. They would not want their kids to be cramped up in small spaces. Safe, child-friendly, interactive and bright classrooms are always welcoming for children which will also keep them engaged.

As preschools are all about learning through play, safe and state-of-the-art play equipment should be given equal importance in your playschool business plan.

As the early years of the children are the most crucial years of their life, it is important to make the most of these crucial years.

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