Kumon franchisee low costs

New Kumon franchisee loves low start-up costs and premium support

Sarah Stowe

Kavi Thanabal is passionate about teaching and the power of education in providing children with a solid foundation for life.

Aligning herself with the global Kumon business has been a massive boost for the teacher, giving her a low-cost entry into business ownership.

“I arrived from Singapore, and I wanted to get into teaching here, but in Western Australia you need another teaching qualification,” she explains. So, she looked for an alternative, affordable way to leverage her skills and her passion.

A young mum herself, Kavi knew of the Kumon education system and was keen to explore business opportunities.

A thorough process to find the right franchise candidate

“My daughter started Kumon about 18 months before I began my business, and my nieces were learning with Kumon too,” she says.

“I have a passion for working with children, and I liked what I knew about the business.”

So, Kavi contacted Kumon, went through a process of interviews and subject matter tests, and then undertook six weeks of training.

“It is a stringent process to open a Kumon business. They want someone who understands how to deliver the program. With this strong foundation I knew I would have good support,” she says.

Kavi opened her Kumon Education Centre in Perth’s north eastern suburb Brabham.

“They helped me find a location close to my home, just 10 minutes away, and I had help sorting out the lease.

“If I had been doing this as a standalone business, I would have had to sort it out all by myself. I had fantastic support, it took a load of my mind, and really reduced the workload at this point!”

Kavi had help from her dedicated Kumon business consultant to create a timeline for all the processes to get to open day.

Low-level investment

And she was thrilled with the low-level investment required to buy a franchise in a global brand with a premium reputation.

“There were minimum costs, so I could get into the business quickly.”

There were minimal alterations needed to her premises, and Kumon helped with subsidies for some of the larger costs.

“I am in a commercial venue which needed signage that cost $10,000. However I had a $5,000 subsidy for that included in the contract.

“Part of the set-up includes furniture, which you can order through Kumon, and it is all part of the initial investment alongside banners and marketing materials.

“There was a lot of marketing and advertising support which really helps with establishing the business.”

Kavi says the initial investment costs to set up in business are about $50,000, and that includes working capital.

“I didn’t even take out a loan! I knew this venue would work. The homework was done by Kumon based on a statistics report on demand in the area.

“I had an overwhelming response when I started operating in January. Just a few months in and I am getting feedback that I am doing really well and achieving good numbers.

“It took just took two months to establish a strong customer base so I rarely touched my capital.”

Extensive support for a new franchisee

Since then, Kavi has received lots of support from the franchisor on how to increase her client numbers.

“I speak to marketing, to accounts, and I have a consultant for a year, almost like a personal assistant.”

To stay up to date with educational developments Kavi undergoes regular training modules and meetings.

“It definitely feels good to be a business owner,” says Kavi. “I have been in a commercial environment from 9-5 for 15 years. Now I have work life balance with flexibility. I only open four times a week, for three hours after school.

“It gives me more times with the kids, who are 11 and four, and more time for myself. I am now looking after my health and fitness and having more family time.”

Kavi is the main instructor in her business and has six other staff members.

The support from her consultant was extensive, particularly in training. It varied from staff training to identifying children who are struggling with their learning.

“I had constant support in my shift hours and it is only in the last two months that I’ve needed help just twice a week.

A consistent income

“Now I know I can manage, and my consultant is spending less time with me. Although we are in constant contact if necessary!”

Kavi says everything aligned when she was looking at the business: a popular brand name, an easy set-up process and low operational costs.

“The main costs are staff wages and rent, then royalties. However, I have a consistent income because I know how many sessions are booked in so it is easy to plan for royalties.”

She is pleased that in just a few months her business has grown from no clients to 100 children signed up and learning on a regular basis.

“As a new business, you want to grow. I know the process and the numbers are steady, it is all quite planned. Kumon is very structured and strategic and there are no limitations.”