Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
skill development 2019-07-22

Why Skill Development Institute Franchise Is a Profitable Business Opportunity

The industry-academia gap has created an array of opportunities for skill development & training institute franchises

By Content Writer
Why Skill Development Institute Franchise Is a Profitable Business Opportunity

India’s transition to a knowledge-based economy requires a new generation of educated and skilled people. In today’s competitive world, it has become a back-breaking task to find a good job. Employers nowadays don’t hire someone only on the basis of a degree; they want to see relevant skills in a prospective employee. 

Our education system focused more on rote learning and less on developing skills. This has resulted in a lower percentage of people who are formally trained in India, at a mere 4.69% of the total workforce. Moreover, the gap between formal education and industry expectation has led to a huge skill gap.

In order to bridge this industry-academia gap, the government of India is focusing on skill development. This has created an array of opportunities for skill development & training institute franchises.

Increasing Demand

Job seekers have realised the importance of the integration of skills along with educational qualification to meet the changing preferences of industries and the options they can vouch for if they are skill-trained. One needs to have the right skills to ensure employment, which will further lead to empowerment.

Skill-based learning leads to comprehensive specialisation and equips them with appropriate hand-on skills, which aid in enhancing employability and makes them job-ready. Understanding the importance of skills in the labour market today is encouraging more students to opt for skill development courses.

In the coming years, there will be a demand for 6,000,000 trained hotel management professionals, 5,000,000healthcare professionals and 2,000,000 aviation professionals thus increasing the demand for skill development franchises.

Investment Required

The investment required for a skill development franchise ranges from INR 25-30 lakhs, which includes the franchise fee, infrastructure, computer & startup kits, with a minimum area requirement of 3000 sq. ft.

The infrastructure includes interior & furniture which costs about INR 6 lakhs; air conditioning around INR 1.2 lakhs; and chairs & other items that costs about INR 1 lakh. Computers & peripherals require approximately INR 2.3 lakhs. The startup kit, which includes marketing material, stationery, brochures, signboard etc, costs about INR 2.5 Lakhs.

Operational Costs

Apart from the initial investment, you will require capital for day-to-day management. Operational expenses include staff salaries, administration expenses & local marketing.

You will need 7-8 staff members (receptionist, counsellor, faculty etc.) whose salaries will cost about INR 1.5-2 lakhs. The administration expenses include rent, electricity, telephone, maintenance etc, which will require around 2.5 Lakhs, while local marketing will cost you about INR 20000. Therefore, monthly operational expenses for a skill development franchise will be around INR 4-5 lakhs.

Higher Revenue

A skill development institute consists of various courses, majorly hospitality, aviation & healthcare. An average fee for one year course is INR 50,000, with 50-60 students per batch. Thus, anticipated revenue from a single course is around 30-40 lakhs.

Revenue gained from all the courses would be around 80-90 lakhs with a profit margin of 15-35%. Thus, investing in a skill development institute franchise is a lucrative business opportunity.

star franchise india
Sheila : 31, Jul 2019 at 10:02 AM
Related opportunities
  • Electric Vehicles
    About Us: Gayatri Electric Vehicles are manufacturers and suppliers of a range..
    Locations looking for expansion Uttar pradesh
    Establishment year 2016
    Franchising Launch Date 2019
    Investment size
    Space required 750
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Noida Uttar pradesh
  • Easy Secure Easy Secure GPS Security Tracking devices made for bikes (Two wheelers),car..
    Locations looking for expansion Madhya pradesh
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size
    Space required 50
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Indore Madhya pradesh
  • Bakery & Confectionary
    1) We welcome you with our unique, delicious and artistically..
    Locations looking for expansion Uttar Pardesh
    Establishment year 2017
    Franchising Launch Date 2020
    Investment size Rs. 5lac - 10lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Gurgaon Uttar Pardesh
  • E-Commerce & Related
    It’s an online 2 offline marketplace platform for offline retailers..
    Locations looking for expansion Telangana
    Establishment year 2019
    Franchising Launch Date 2020
    Investment size Rs. 2lac - 5lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Hyderabad Telangana
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

ads ads ads ads