Research Help Wanted

[ChrisZhimo]

Hi,

I’m fairly new to this site but thought I would ask for some help from you guys (seems like a really nice community). I’m currently researching setting up a Summer School near Chengdu for Summer 2012. I have a site selected north of Chengdu, and I’m currently researching what’s involved in setting up a school.

If anyone could give me an idea of any other summer schools operating and what they charge I would be really grateful.

My understanding is that I will need to do the following for a business license, bank account etc: http://bit.ly/nK7kN6. but does anyone know if I need to do anything else re the board of education?

The aims of the programme are to give Chinese students an insight into the education system in the UK over 2 weeks, as well as information on applying to schools and Universities in Britain. We would also teach idiomatic English as few teachers/lecturers make an attempt to make their language of teaching accessible for ELS learners – which can be a real struggle in the first few months!

Any pointers much appreciated.

[Charlie]

Hey Chris,

The list that you linked to looks pretty complete to me. I haven’t opened a school before so I’m not the person to talk to on the specifics of that, but coming to Chengdu and speaking to people about it seems like a good thing to do if you’re serious about this. The reason why I say that is because you might find once you get here that the rules are slightly different than what they appear to be online. This tends to happen a lot in China – the number of rules that they choose to abide by as you apply for the various licenses you’ll need might depend on a number of factors. Things like how many foreigners in China doing this business, their mood, your appearance, etc.

Good luck with your school, Chengdu is a great place to do that from what I’ve heard. I’ve spoken to some people in the business of sending Chinese students to universities in the US & UK and know that it’s a lucrative business since the number of prospective overseas students who need some guidance is very large.

[ChrisZhimo]

Hi Charlie,

Thanks for the info. I’m planning to come out mid October and start setting up but I’m trying to get as much as posible done here first. We will be an education consultancy/summer school.

I’ve just finished at Cambridge University and I’m currently doing a TEFL Cert so hopefully I can land a good teaching gig once I get there. Any thoughts on how to pick-up private clients and/or a good teaching position?

Thanks,

Chris

[Charlie]

It’s going to be difficult to sort out a very good job from abroad – normally what you’d have to do is come to Chengdu and start meeting people and making connections etc. That’s what I recommend. You can find a temporary teaching job to tide you over for a few months until you get on the path that you want to be on. That’s what I’d do.

It’ll take more time and experience in Chengdu to successfully start a private teaching organization because you’ll need to do some information gathering. There are a few foreigners in Chengdu in the freelance teaching business and it can be very lucrative, but most of the people you’ll be competing with speak Chinese and have a lot of local knowledge.

Hope this helps, Chris.

[ChrisZhimo]

Yes, that’s very useful – thanks. I am currently learning Mandarin basics, but will sign up to the Mandarin Club as soon as I get there and make sure to befriend people who I can speak to in Chinese.

As you say, it’s all about networking in China so I guess I just have to get my ass out there…looking at flights now : p

[Cress]

Hi Chris,

I know it’s almost impossible to apply for a “school” lisence. You can only operate as a trainning/ consulting company. Also, the openning capital will be different for a foreigner. I’m not sure about Chengdu, but in Shanghai you will need half million RMB to open a WOFE. If you open a joint venture, the capital will be less but the process will be much more complecated. The laws and regulations will be leaning to your Chinese partner if you guys are not working out in the future.

Not saying you cant do it, just to let you know, it’s really difficult for a foreign individual to open a copmany here. But if you need help, you can email me [email protected]

[Sascha]

yeah cress has it right. Opening up a school here is basically out of the question. What a lot of people do is partner up with a local school (university even) and have a training or consulting business underneath the university’s wing. That way you’re safe, have a flow of students, but you also have to share the wealth.

Starting a company here is not always the best way. What you are doing benefits local wealthy and middle class people – provide English for their kids (ie a better life). Parents can and should be your allies.

If you have deep pockets, all is possible, but if you are looking to do it cheap and on the fly, then prepare for a lot of slogging. Anyway, feel free to contact me

@ cress I also have two kids but we’re in shanghai for the moment. heading back to the du ASAP

sascha.matuszak [at[ gmail.com

[Charlie]

What people that I know have done is start out in a gray area of legality and when/if they reach success and make the right connections, they can transition into legality. Perhaps someone who’s actually done this (hqqcress or someone else) betters knows the risks of this than I do. One concern will be competitors bringing the heat of the law on you if you threaten their business.

[Ray]

I would agree with some of the other guys about coming here and checking things out forst. Alot of the rules are flexible/outdated/grey/non-existent/infuriating. Same as for teaching; come here, put your toes in the water before you commit yourself too much. I do know that the rules re; educational facilities are pretty tough. A friend here opened a small English training centre and used a Chinese silent partner as the face of the school. It would be absolutely impossible for him to get the license without some kind of partnership/joint venture. Of course, this arrangement has its pros and cons. Some guys work with it well, but the horror stories are also numerous. Just go for it man. Good luck!

[ChrisZhimo]

Thanks for all the useful info. I’m really interested to find out the reality as compared to the theory of the rules around this. As with Russia, I imagine if the right people in the right departments wish to help you (for whatever motivations) then anything can happen.

China’s on the road to be the world’s largest economy within a decade, and I’m keen to be one of the Westerners who has business roots there and speaks the language when this happens. The high value the Chinese put on education makes it a brilliant business to be in, as far as I can work out.

[ChrisZhimo]

Thanks for all the useful info. I’m really interested to find out the reality as compared to the theory of the rules around this. As with Russia, I imagine if the right people in the right departments wish to help you (for whatever motivations) then anything can happen.

China’s on the road to be the world’s largest economy within a decade, and I’m keen to be one of the Westerners who has business roots there and speaks the language when this happens. The high value the Chinese put on education makes it a brilliant business to be in, as far as I can work out.

[Marco]

China’s ESL market in 10 years will be like Japan’s market now: saturated… small schools going out of business, big school making less profit

Factor in the decreasing birth rate of the last 10 years and even China’s public schools will have to compete to ‘fill up’ their classrooms

call me crazy, but China in 10 years isn’t going to be all it’s cracked up to be. Big English schools are already planning for this upcoming saturation of the ESL market in China

[Charlie]

Quote:

China’s ESL market in 10 years will be like Japan’s market now: saturated… small schools going out of business, big school making less profit

You might be right about that. I’m thinking that a principle difference will be the size and economic growth of China’s swelling urban population. I imagine that a huge number of foreign English teachers in China are in 1st and 2nd tier cities, but the growth potential in small provincial cities is enormous. That’s the emerging market that’s filling new demand over the next decade.

The world economy is so fragile right now though, it’s hard to imagine that things won’t change as much (or more) over the next 10 years as they have over the last 10.

[ChrisZhimo]

When you consider that China has only just gone past a 50% urban population then it shows just how much demand there is going to be. They have a solid economy compared with everyone else at the moment (leaving aside the housing bubble question mark) an undervalued currency and 3 trillion dollars in foreign currency reserves just sitting in the bank.

@Marco I agree that people may overhype it in the west – but I find that a lot of people just talk about it rather than actually doing something i.e. getting into China and setting something up. Even if the business is a failure, learning how to operate and speak the language can’t be a bad idea looking with a 30 year timescale. It seems there will be lots of exciting things one can get involved with in terms of bringing Western things to China. I’m thinking Scottish whiskey, German cars, French wines and Italian designer clothes. Still, one step at a time ; )

[Author]

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