Investing in Afterschool

[tampaite]

Also forgot to add in the start up cost of play equipment and learning activities because I'm sure if parents are paying $600+ a month for special needs children they would expect that you have some developmentally appropriate learning activities for them.

And is she going to also be the director as well as an instructor? If so does she have a director permit or the proper education level to be a director (some states you have to have a BA or an masters)? Would you have to have an RN on the premises (some centers for children who are ill or special needs require this depending on state)? If these teachers are trained in children with special needs I doubt they will want to work for only $250/month (even if its only 3 hours a day). That would barely be able to pay for their home utilities let alone rent/ mortgage, food, and gas to get to work!

Plus all of this figures in only IF you reach your capacity and you would have to have 10 kids to break even. I would do some research to see if there is a demographic of highly special needs kids (who are only school aged) in that region. .

Yes. my investment would be between $15K-$30K and this person is also investing an additional $45K so both will be used for start-up expenses and to run the after-school program for 2 months at which point it ought to be cash flow positive.

The person has an RN background, a FL director credential and also has experience running a preschool.

The focus is on providing Tutoring program for special needs children, that are experiencing learning difficulties. Math/Reading/Writing etc


Am trying to look for data that shows population of special needs kids by zip code. Is anyone aware of such a website that offers this information?

Apart from start up and operating costs - it really comes down to finding 20+ kids and whose parents are willing to pay $600+ a month on an on-going basis but after reading your comments, i am being cautious!

[Cradle2crayons]

Yes. my investment would be between $15K-$30K and this person is also investing an additional $45K so both will be used for start-up expenses and to run the after-school program for 2 months at which point it ought to be cash flow positive.

The person has an RN background and also has experience running a preschool.

Am trying to look for data that shows population of special needs kids by zip code. Is anyone aware of such a website that offers this information?

Apart from start up and operating costs - it really comes down to finding 20+ kids and whose parents are willing to pay $600+ a month on an on-going basis but after reading your comments, i am being cautious!

I'm unaware of a website that offers that information as far as the need or numbers of special needs children in that area. In my area there's no way in heck parents would or could afford to pay that kind of aftercare regardless of what is offered. Matter of fact, my special needs baby pays my regular full time rate, is cared for 28 hours to 32 hours a week and that rate isn't even HALF of what you are asking.

Sounds to me that everyone here has given a lot of very realistic warnings. There is a small need where I am for full time special needs care. No facilities offer it and I'm the ONLY provider that I've heard of who provides special needs care anywhere in at least 100 miles radius. With that being said, the ADA prevents charging more for special needs care than you would for non special needs care so if the going rate for non special needs after school care is 600 a month, I need to move where you live!!

[tampaite]

Thanks everyone for the feedback. I have decided to drop this investment.

I really would like to investment where the needs of kids are met but given that to break-even we have to enroll 10+ kids and to make decent profit 20+ kids, this may not sustain itself in the long haul(5-10 yrs) since am looking for long term investments.

I appreciate everyone chiming in. if there are any updates, will come back and post.