Starting a preschool can be a rewarding and lucrative business in India today. With increasing awareness about early childhood education, the demand for good preschools is rising, and the sector presents a golden opportunity for edu-preneurs. However, before investing in a new venture, it is crucial to understand the cost of starting a preschool, the legal formalities required, the financial considerations, and how much to charge for the preschool! Especially for someone who is a first-time investor!
Understanding the Cost of Starting a Preschool in India
The overall cost of starting a preschool in India depends on many factors like location, infrastructure, branding, and so on. Let us break down the factors involved for better understanding:
Table of Contents
Major Cost Factors for Starting a Preschool
1. Location and Rent Depend on
- A prime location which is easily accessible and in a safe neighbourhood.
- Rent increases with more urbanized locations. Metro cities have higher rental costs.
- If you have your property a lot of rent or location finalization cost will decrease significantly.
2. Infrastructure and Setup Costs Depend on
- Classroom furniture, play equipment, whiteboards, books, and toys.
- Flooring, wall painting, child-friendly toilets, and safety measures.
- Outdoor play area setup (if space permits).
3. Licensing and Legal Requirements
- Trade License from the local municipal corporation.
- No Objection Certificate (NOC) from the state education department.
- Fire and Safety Clearance from the local fire department.
- Health and Sanitation Certificates for a safe environment.
- Company Registration if operating as a private entity (LLP, Partnership, or Proprietorship).
4. Curriculum and Learning Material Costs
- Developing or purchasing a structured curriculum (Montessori, Playway, Reggio Emilia, etc.)
- Educational toys, learning kits, flashcards, and worksheets.
- Digital learning resources (smart boards, projectors, tablets, etc.).
5. Branding, Marketing, and Website Development
- Logo, brochures, banners, and signage.
- Website development with an online admission portal.
- Digital marketing, including Google ads, Facebook ads, and social media promotions.
6. Staff Recruitment and Salaries
- Preschool teachers, assistants, admin staff, security, and housekeeping.
- Teacher training and development programs.
- Competitive salaries are based on experience and qualifications.
7. Miscellaneous Costs
- Utility bills (electricity, water, internet, phone, etc.).
- School supplies, art materials, and stationery.
- Maintenance and cleaning expenses.
Why Is the Cost of Starting a Preschool in India Worth Understanding Before You Begin?
Starting a preschool is not just about loving children and trying to make a positive change in early education. It is a business decision with a good investment put in. Understanding the preschool opening cost helps you avoid investing too much, pricing too little or choosing the wrong business model.
First-time investors should know that while a play school's start-up cost is usually a one-time investment, your business plan you use would decide how quickly recover the cost.
Why preschools are attracting investors today
- Rising demand for structured early education
- Working parents need reliable childcare
- Moderate investment compared to other businesses
- Recurring income every academic year
In short, the opportunity is real but only if the way you run the business makes sense.
Why Invest in a Preschool Business in India?
- Growing Market: India's preschool industry is expected to grow rapidly due to the rapid urbanisation that is happening. With both parents working, there is a need to shift the children to a specialized facility to help them develop their initial developmental milestones. Thus the need for a good preschool.
- Low Investment, High Returns: In comparison to other businesses, starting a preschool requires moderate investment, but with time it offers a steady return with minimal risk.
- Scalability: You can start with one preschool and with increasing experience and the right partner like Teeny Beans, you can upscale and branch out to multiple branches, after-school programmes and daycare facilities!
- Satisfaction and Impact: There is always the satisfaction of running a preschool and shaping young minds, the future of tomorrow.
What Factors Decide the Preschool Opening Cost in India?
The cost of starting a preschool in India depends on several factors. Together, these decide your preschool startup budget.
How Does Location Impact Play School Opening Cost?
Location plays a major role in both cost and revenue.
|
Location Type
|
Rent Cost
|
Fee Potential
|
|
Metro Cities
|
High
|
High
|
|
Tier 2 Cities
|
Medium
|
Medium
|
|
Tier 3 Towns
|
Low
|
Moderate
|
Example:
A preschool in a metro city may cost more to set up, but parents are also willing to pay higher monthly fees. If you already own a property, your preschool opening cost reduces significantly.
What Infrastructure Costs Are Included in a Preschool Startup Budget?
Infrastructure is usually a one-time startup cost for a preschool.
|
Infrastructure Item
|
Mandatory
|
|
Furniture & toys
|
Yes
|
|
Learning materials
|
Yes
|
|
Smart boards
|
Optional
|
|
Outdoor play area
|
Optional
|
Common setup costs include:
- Child-sized furniture and shelves
- Toys, books, and learning kits
- Soft flooring and wall painting
- Child-friendly washrooms
- Safety equipment
Smart planning here helps control the preschool startup budget without compromising quality.
Is Playschool Franchise Cost Higher Than Independent Preschool Cost?
In most cases, yes. Certain recurring costs in Franchises are not there in a non-franchise setup.
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Cost
|
Franchise Model
|
Non-Franchise Model
|
|
Initial fee
|
High
|
Moderate
|
|
Royalty
|
Ongoing
|
None
|
|
Brand control
|
Limited
|
Full
|
|
Long-term cost
|
High
|
Lower
|
This is why many new edupreneurs prefer models where the play school opening cost is lower, and ownership remains fully theirs.
What Legal and Licensing Costs Are Required to Start a Preschool?
Every preschool in India needs basic licensing from the local government body to operate. Though there are different rules in different states, some licenses are common.
Some of the Common requirements are:
- Trade license
- Fire and safety clearance
- Health and sanitation certificate
- Business registration
These costs are essential but form only a small part of the total cost of starting a preschool in India.
How Much to Charge for Preschool Fees in India?
Certain factors affect the structuring of preschool fees. It is the basis on which the profitability of the business depends.
|
City Type
|
Monthly Fee Range
|
|
Metro Cities
|
₹3,000 – ₹8,000
|
|
Tier 2 Cities
|
₹2,000 – ₹5,000
|
|
Tier 3 Towns
|
₹1,500 – ₹3,500
|
Factors Influencing Fee Structure:
- Location (Metro cities command higher fees).
- Facilities and Infrastructure - Smart classes, CCTV security, and well-equipped play areas allow for premium pricing.
- Teacher qualifications and experience - Smaller class sizes and well-trained teachers justify a higher fee structure.
- Curriculum and extracurricular activities.
- Brand reputation - A recognized brand like Teeny Beans allows you to charge higher fees than an independent, unknown preschool.
Profit Potential of a Preschool Business
One of the biggest advantages of starting a preschool is its high return on investments.
Some of the revenue streams of preschool are:
- Monthly tuition fees
- Admission and Registration fees
- Daycare Services
- After School Activities and Summer Camps
- Teacher Training Courses
Why Choose Teeny Beans for Your Preschool Business?
Teeny Beans is India's leading non-franchise preschool solution provider, offering end-to-end support for entrepreneurs.
Key Benefits of Partnering with Teeny Beans
- Zero Royalty Model – No ongoing franchise fees, ensuring full ownership.
- Globally Benchmarked Curriculum – Based on British EYFS, Jolly Phonics, and other international frameworks.
- Smart Tech-Enabled Learning – AI-powered apps, digital classrooms, and advanced management tools.
- Comprehensive Training & Support – Teacher training, business mentoring, and operational assistance.
- High Return on Investment (ROI) – With low startup costs and multiple revenue streams.
Teeny Beans Investment Packages
Teeny Beans provides four investment packages based on different needs and budgets:
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Package
|
Ideal For
|
Key Benefit
|
|
UNO
|
Small setup
|
Low startup cost
|
|
Primero
|
Mid-size preschool
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Smart class + training
|
|
ILC
|
Multiple revenue models
|
Higher income streams
|
|
Grande
|
Premium setup
|
Advanced infrastructure
|
UNO Package
- Ideal for a small preschool setup for up to 40 kids.
- Basic learning materials and furniture included.
- Digital curriculum and training support.
- Recommended area: 800-1200 sq. ft.
Primero Package
- Supports a mid-range preschool setup for up to 72 kids.
- Includes Digital Smart Class Setup.
- Digital curriculum and training support.
- Recommended area: 1200-2000 sq. ft.
ILC Package
- Integrated Learning Center model: Preschool, Teacher Training, and Afterschool programs.
- Offers higher revenue streams and a more sustainable business model.
Grande Package
- Premium preschool setup with indoor & outdoor flooring solutions and CCTV security.
- Accommodates a large number of students.
- Digital curriculum and training support.
- Admission support.
- Teacher Training Certification.
- Includes Afterschool Solutions for extra revenue.
Each package includes comprehensive support in terms of infrastructure planning, branding, curriculum, and technology integration.
Is Starting a Preschool in India the Right Move?
Understanding the cost of starting a preschool in India, planning the budget for the startup, and knowing how much to charge for preschool fees are the foundations on which the success of your venture will depend.
When planned correctly, the play school opening cost becomes manageable, any risks that might be there can be taken care of, and the returns of the investment and the profits can grow steadily. Many successful preschool owners started exactly where you are now, by asking the right questions before investing.
Sometimes, clarity is the smartest first step.
Ready to elevate your preschool journey?
With Teeny Beans as your partner in launching and expanding your vision. Reach out to us today to discover your investment opportunities and start your journey to a lucrative and fulfilling preschool venture!
Fill in your details below, and our expert will get in touch with you shortly to guide you through everything you need.
FAQs
1. What is the playschool franchise cost in India?
The cost of the Playschool franchise depends on the brand. Some charge a high one-time fee and a monthly royalty, while others, non-franchise models, have zero franchise fees with no royalty.
2. How much does it cost to start a preschool in India?
The cost to start a preschool in India depends on the location you have chosen, the space your property has, and the facilities being provided. The investment can be planned as per your budget, as there are a lot of options in the market. Teeny Beans itself offers packages starting from around 2 lakhs to 10 lakhs, depending on your budget and requirements.
3. How much does it cost to open a daycare in India?
The cost to open a daycare is higher than a preschool because it runs for longer hours and needs more staff and safety arrangements, along with furniture like beds and storage arrangements.
4. What is the cost of starting a daycare centre along with a preschool?
The cost of starting a daycare centre increases slightly when added to a preschool, but it also brings in steady monthly income.
5. Is the Indian pre-school and childcare market growing?
Yes. The Indian pre-school and childcare market is growing fast due to working parents and rising awareness of early education.
6. How much should I charge for preschool fees?
How much to charge for preschool depends on your city, facilities, and teaching quality. Fees are higher in metro cities and lower in smaller towns.
