Korean Job Discussion Forums

itaewonguy · Joined: 25 Mar 2003

I was offered the other day through the grape vine to buy a HAKWON.
its in a good location. 100pyung, comes with all equipments, aircons, tables, etc.. fully furnished..
a francise name.. the student count is , well the school almost breaks even
so it would need atleast another 10 students to see profits..

anyway the price is 100 million.. get a discount from 200 million,..,
well thats what they asking..

so I thought I would just ask you people what you reackon?
good idea?
you think there is still money to be made in this over saturated market?
cheers..

bucheon bum · Joined: 16 Jan 2003

a few things to consider:

1) Do you have a good rep. in the area? Does anyone know you? That could boost business ASAP

2) How many hogwons are in the area? If there are ton, yikes, if some, then you have a chance, if a few or none, then you're golden.

3) Is it near high density housing? (ie high rise apartments). My hogwon is right across the street from 2 big housing complexes and 5-10 minute walk from another large one. Its the closest hogwon to the first 2 complexes w/a native speaker. Ideal location in other words.

4) Do you like the curriculum or is it crap? If you would have to do a major revision, that would be a pain in the butt and potentially costly.

5) Are you married to a Korean? If you aren't, then you might get screwed over somehow.

That's what's coming off the top of my head

weened · Posted: Mon Oct 27, 2003 10:39 pm Post subject:

I think about it all the time. If I had the money and the time to set up a good business plan, I'd do it. Most of this comes from the blatant mistakes that I see my hogwon making and the fact that it still makes money. Totally mystifying

justaskdan · Joined: 28 Apr 2003 Location: Me in Pohang - Oct 20th

I say go for it. Good marketing can help. I think a pyramid type promotion where every new kid the parents bring in they get 10% off of their kids. If they bring in 10 kids from say family and friends their kid is free. Then those 10 new kids parents start bringing in kids. This is just one of many Hagwon marketing ideas I have. And I know I could run one better then my directer does.

Sloth · Joined: 16 Jan 2003 Location: Here

I noticed you mentioned it had a "franchise name".

My big question is do you get total authority in the hagwon, or do you have to answer to some higher ups?

Ryst Helmut · Posted: Mon Oct 27, 2003 11:33 pm Post subject:

IG,

I suggest you pour through past posts on the Koreanbiz group...I think we discussed pros and cons about it....

Shoosh,

Ryst

http://groups.yahoo.com/group/koreanbiz/