Introduction
The goal of this blog is to come up with an interesting vocational training center business idea for enterprising people who can further evaluate, improvise and start their own. I try to make the business ideas as comprehensive as possible. Hence, I focus more on explaining problem statements and investments. Nonetheless, if you want more information can write to me, I promise to reply within a week or two. I believe you will find this training center business article informative.
Why am I authoring this training center business idea article?
Not long past I got a few email requests asking for ideas about social business/NGO that can be started by investing below rupees ten lakhs. Noticeably the requests are coming from the young generation. Though they have not mentioned where they belong, I am assuming that they are from a small town.
In this blog, I will share a concept of a social business/NGO model for young people in small towns or suburban areas. I will also share brief information on how they can go about accessing support aspects in terms of funding and execution.
Let’s start the ideation of a training center business!
The business I will talk about today is a vocational training center that will provide skills to the young people of the village, small towns, and suburban areas. In today’s scenario, the skill line we will select (the core product of the business) is different and to my knowledge, that has not been considered as a form of vocational training so far.
What is the training center business all about?
The course is about FMCG distribution and retailing, the objective of the training is to make the aspirants able enough to start a distribution business in villages or small towns.
What else will the business do?
The business will also handhold the newly trained candidate to access different Governmental Scheme and get associated with FMCG companies.
The problem statements.
By the way, there are different skill development schemes run by the government but apparently, the engagement seems not up to the expectation despite having the best resources. Hence, I believe the scope of improvement is immense here.
Let me elaborate on the scope of the business a little more so that you can understand the demand side. According to the UN’s IFAD study, the young population is increasing across the globe but maximum in Asia and Africa and with high speed in developing and least developing countries. India has around 25 crore population between the age group of 15 years to 24 years and almost 65% to 67% of them live in rural and suburban areas.
Check home-based business ideas here.
Check online business ideas here.
Check small business ideas here.
Now let’s see the scope of FMCG business in the rural market. A well-known research agency in India estimates that the rural FMCG market will reach 220 billion USD in 2025 from 100 billion USD in 2020.
Forecasted growth rates, population growth, increased disposable income, and improved quality of life are proof that FMCG companies will need a huge sales force to meet the demand in the countryside. And this sales force will be deployed in the form of distribution, wholesale, and retail.
Who can do this business?
Now, if you are an MBA/MCOM graduate having supply chain and distribution management experience and a knack for teaching you can start the venture without any hesitation. Otherwise, you need to connect with the vocational training organizations for their franchisee or association. You can even contact the professionals who are associated with management teaching.
The vocational training center business.
This setup will work as a training center that will be taken on in an accredited management institute. Which means at the end of the session the candidate will appear for a certificate/diploma examination from that management institute.
The place of training center business can be a school or any other institute that can accommodate 50 to 100 students in a batch comfortably.
The training should operate twice a week and only during the evening. The course should be extensive and a minimum of 150 hours which means the course can be stretched up to 6 months.
End of the course the organization will extend internship engagement in different FMCG organizations. And also continue helping them to access different government financial schemes like MUDRA. Additionally, the faculty will help the passed-out candidates for making business projects and tying up business associations with different FMCG companies.
Revenue model (How this training center business will earn?)
For this training center business revenue line will be training fees and other ancillary services. As it is a social business model and philanthropic in type hence I propose to propagate the business heavily. The purpose is to reach FMCG companies, and NGOs for support. Generally they extend different kinds of support to this kind of organization for their own long-term interest.
To start a training center business, you need to decide on the form of the organization and register accordingly. You also need to have permission/license from local government authorities.
Financials [Investment, Working Capital, Loan]
- Hire a premise (Preferably a government school) – Target Rupees 25000/- rent per month [Have provision of 3 months advance, i.e. Rupees 75000/-]
- Hire trainer, admin, accountant, corporate relations expert- Target average salary of Rupees 50000/- [Budget 2.5 Lacs]
- Tools and gadgets to attract Rupees 2 Lacs.
- Keep a budget for licensing, and accreditation around Rupees 5 Lacs [This will be high in case you opt for a private institute, from NSDCA [A Government of India organization] it will be very less, around Rupees 10000/-]
- Keep working capital aside approximately Rupees 5 lacs.
- You may apply for a loan from MUDRA scheme.
Best of luck!
