Opening a play school franchise in Mumbai has many advantages. The fact that it is a relatively risk-free investment prompts many entrepreneurs to get into this business start-up. But education and knowledge are considered to be priceless possessions. Thus the deliverance has to be of extremely good quality which seeks to meet and even excel the current standards.
To set up a playschool which is capable of raising the bar, funding becomes imperative. The expenses of setting up a play school include:
- Franchiser fees,
- Money spent to obtain required statutory license and permissions,
- Rent to be paid on the premises selected,
- Infrastructural requirements,
- Salaries for teaching and non-teaching staffs,
- Marketing campaigns,
- Incidental expenses etc.
While the initial investment is relatively low, it needs to be arranged for nevertheless. How to start a play school franchise without arranging for funds!
There are two ways by which the relevant funding can be arranged. The owner has the liberty to finance it using personal funds. In this case, the start-up happens faster. But not everyone might be in a position to self-fund the venture. In such cases, it is always better to opt for bank loans.
How to obtain bank loans
Of course, the process of obtaining a bank loan is cumbersome and requires a lot of paperwork. The best way to obtain bank funding is to:
- Prepare a list of all banks that have schemes for funding a play school franchise in Mumbai. From these, only those financial institutions that offer loans to newcomers need to be shortlisted. The shortlisted banks have to be approached and the loan application form obtained.
- Some documents that need to accompany this loan application form are:
- NOC or no objection certificate from the State Government,
- Document proving either ownership of the premises or the rental agreement signed,
- ITR or current Income Tax Return submitted by the entrepreneur seeking the loan etc.
- The bank will also require an exhaustive report or business proposal which would clearly state the following points:
- How to start a playschool franchise,
- Type of business proposed to start,
- Financial statements of the owner,
- Information regarding the land area to be used,
- Plan for loan repayment etc.
- After the loan application form has been submitted along with the business proposal, the entrepreneur has to convince the bank to sanction the loan amount. The bank officials pose questions relevant to the playschool franchise startup, it’s functioning etc. They might also ask the applicant to justify the loan amount asked for and how he proposes to repay it within the time period. Only when the bank officials are satisfied with the answers will they agree to sanction the loan in principle.
A confirmation letter stating the loan amount, loan period, interest charged on the loan and the equated monthly instalment or EMI that needs to be paid is given to the applicant. After this, the funding is transferred to the bank account of the applicant and the entrepreneur can commence operations on the start-up of the playschool.