Here's my business venture ... discuss

[fizzledizzle]

Wife and I have been looking for a long time for a business idea that would allow us to gradually work ourselves out of the corporate slavery we are currently in and build something for ourselves.

We found this place. Basically they have created an entire software cirriculum that will allow the licensee to give computer classes for children ages 3-7. Before you all laugh, let me just say that I am a huge miser - I hate spending money on anything. But when it comes to our kids, I generally am a lot less stingy. Not to mention we have kids, and they are always in activites like dancing, karate, etc. Parents are always looking for new and interesting activites they can participate in with their youngsters.

This is how our business model will go. Initially we have to purchase a license to use the software; really that is our only big upfront cost. The software is 100% proprietary, unlike some other programs that use off the shelf software. Then of course we have to lease 10 laptops since our business model will be all-mobile to start with, roughly $300/mo there. The software is really great and I was amazed how much my little 4 year old learned in like 20 minutes with the software. The support from the parent company is top-notch and they really help you in marketing your service to potential clients and facilities.

We will contact daycare centers, rec centers, schools, YMCAs, etc ... basically anywhere that there is child/parent concentration. The facilites we give the classes at will love it as it gives their facility a differentiating service and if they work it right, they can build some revenue into what we charge to give the classes. Again the initial model is totally mobile so we can give the classes anywhere. There are so many possibilities; daycares can have us come in and offer the class to all the kids there, afterschool enrichment programs, special events, community rec centers, the list goes on and on.

Market research indicates that we can charge roughly $200 per 8 weeks per student. The cirriculum is 5, 8-week sessions. So really each kid is worth $1000 assuming they go all year (retention rate through each 8-week sesssion is roughly 92%). The beauty is that this business model does not have much in the way of fixed cost - almost all of the revenue generated from tuition is pure profit.

We want to gross $50k first year (I think a VERY realistic goal) and 100k our second year (also I think realistic) so for that 2nd year, we basically need 100 students for the year. We can only have 5 kids per class (license agreement requirement) so we need 20 1hr classes per 8 weeks assuming 5 kids per class. This doesn't even account for birthday parties (huge, trust me) as well as other events that we can book for (childrens hoilday parties are huge).

I really think this will fly. Best part is this isn't a franchise; I am simply purchasing a license agreement much like any other piece of software (Windows, Office, etc). No royalties except for $1500 per year to use their scheduling, enrollment and management software which is well worth the cost. We truly will be in business for ourselves.

Once the business is rolling we can expand beyond my wife and hire teachers at $15-18/hr and add more kiddies. Really is a good business model and we have pretty much virgin territory anywhere we go.

I am keeping my job for the time being as I am luckily a pretty well paid computer engineer, but if the business goes well, I'll quit being a cube monkey soon. Future plans are to build a storefront and have regular classes as well as summer camps, but that will probably wait a year.

Any comments on our venture? Good or bad, I'd love to hear feedback from the group.