How to Start a Coaching Institute Business in India?

Coaching institute has become a part of the education system in India. The popularity of coaching institutes has increase 35% more than the last five years. 95% of the high school students take up coaching classes for most of the subjects.

Requirements for starting up the business

You would need a commercial space at a central location for the children to reach easily. Adequate lighting, furniture for seating arrangements, lockers for children to keep their belongings, competent staff and dedicated support staff are the basic requirements. If you are planning to conduct a small scale coaching center, you need not obtain few licenses from the government. But, if your coaching center venture is as big as an institution, you would need to get a trade license and pay tax for the revenue generated through the center. If your income exceeds 9 lakhs per annum, you need to register your business and pay service tax within thirty days.

About the market

Since the capital involved in the business is moderate and the barriers for new comers in the market are less, there are a lot of competitors in the market. Switching power of the buyers is very restricted as a student might not float from one coaching center to another. With increasing number of students in the city, the scope of the market in the future is immeasurable.

Capital involved in this business

If you are planning to lease a large area as your premise with the furniture, it would cost you around 50,000 to 60,000 rupees per month. The salary for a staff would be around 15,000 to 20,000 per month (experienced staff). Support staff can be hired at 7,000 to 10,000 per month. Thus, you would need to have a working capital of not more than one lakh to 1.25 lakh per month, including the variable costs. If you own a house or a room which can be converted into a classroom, you can cut short on the rent factor. Based on the subject, class, board of education and others, a student can be charged between 6,000 and 10,000 per month. All you would need is just 10 to 15 students to break-even and create good revenue.

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Profitability of the market

start a coaching instituteApart from college and school subjects, IAS coaching, bank exam coaching and other competitive exam coaching would yield more revenue. Make sure that you have the expert teachers to train the students. Your syllabus is your tool. The number of students who have enrolled would make a difference in the profitability of the market. Do not start the business until you know that you can make a considerable amount of students to enroll in your program.

83% of the parents are looking for a coaching center for their children in primary classes. On an average, a household pays 500 to 700 rupees per hour for the centers that takes care of the primary school students till one of the parent returns to pick them up. In such cases, apart from the subjects, you need to train them on extra-curricular activities too. You need to create an aesthetic environment for coaching small children which would increase the capital involved but, the return on investment is very high.

According to a report, in the last three years, a rural family spends 2,000 rupees for coaching centers for a child and a family in an urban area spends about 2,750 to 3,500 rupees for coaching their children. This fee can go up if the coaching for some competitive examination or college syllabus.

Scope of the market

With the constant rise in the number of colleges and schools without increase in the standard of education, there is an accelerated increase in the scope for this market. Since the craze for government jobs is very high among the youth, the coaching centers for competitive examinations would be profitable in the future.

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Important tips

  1. You need to have separate and experienced teachers for each subject.
  2. Your premises should be large enough to hold many students without congestion.
  3. Provide discounts and referral discounts to increase your customer base.
  4. Make sure to pick a location near an institution like school or college to increase the exposure of the business.
  5. You need to make sure to adhere to the standards that are followed by the government or else, you would be out of business in no time.
  6. Create a logo and demonstrate professionalism in your business to attract more students.

Marketing and Growth

The result that you produce in one academic year would stand as your base of advertisement. Make sure to hire some famous instructors to gain more customer base. Handing pamphlets and advertising through bills would be very effective. Remember that the profitability of the business totally depends upon the number of students in the institute. You should aim at increasing the number of students by at least 10% every year to have a sustainable business.


  1. Kumar February 21, 2016
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  2. snivedhithasaibalaji April 12, 2016
  3. Anshu Srivastava April 29, 2016
    • Aditya May 17, 2016
    • ajay May 21, 2016
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    • sireesha June 3, 2016
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  4. Aditya May 17, 2016
  5. Hsnu Techi Tara June 1, 2016
  6. Tamal Chakraborty June 2, 2016
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      • P K Banerjee July 11, 2016
        • RAJ SINGH YADAV July 15, 2016
    • Abhijit Dubey November 24, 2016
  7. Pankaj Rathore June 6, 2016
  8. Somraj June 17, 2016
    • Deepak yadav July 11, 2016
      • Abhijit Dubey November 24, 2016
    • P K Banerjee July 11, 2016
  9. ramesh subramanian July 2, 2016
    • Abhijit Dubey November 24, 2016
      • Sahil January 2, 2017
  10. Nirmal August 5, 2016
  11. Rahul Gupta August 11, 2016
  12. Ajay panwar August 16, 2016
  13. Sac August 21, 2016
  14. Ankur Kumar August 31, 2016
  15. Gaurav Banerjee September 7, 2016
  16. Avinash September 8, 2016
  17. suba September 10, 2016
  18. vikas September 11, 2016
  19. Sanjay Nautiyal September 22, 2016
  20. Yati October 4, 2016
    • Abhijit Dubey November 24, 2016
  21. Swapnil October 8, 2016
    • Mahesh October 20, 2016
  22. Sunil Joshi November 2, 2016
  23. Manish November 11, 2016
    • Abhijit Dubey November 24, 2016
  24. shailendra salvi November 14, 2016
  25. santosh kumar ahirwar November 28, 2016
  26. mohammed suhaib k December 8, 2016
  27. Prakash December 11, 2016
  28. Jitendra Panchal December 18, 2016
  29. Baishali Sen January 2, 2017
  30. Joy January 15, 2017
  31. Gaurav Sharma January 16, 2017
  32. Santosh January 28, 2017
  33. praveen upadhyay January 30, 2017
  34. nellore sreenu February 10, 2017
  35. Sathish kumar February 15, 2017
  36. Pankaj MK. February 19, 2017

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