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How hard is it to start your own hagwon?
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gteacher



Joined: 24 May 2007
Location: Ghost in the machine

PostPosted: Tue Nov 18, 2008 6:42 pm    Post subject: Reply with quote

bassexpander wrote:


He also mentioned that he has had "spies" from other schools seeking to see his required legal paperwork and railroad him if he can't produce it. Expect the same.



Expect spies, sabatours and general trouble from all the hagwons in the area if you are new. They will show up to register kids falsely so that your classes fill and then no students show.

They will show up at your open houses and try to tear your school down or put you on the spot in front of everyone.

they will phone immi and falsly report you for illegal teachers, the same with any one else they can get to listen.

They will stop parents outside your school and try to start rumors about the school, staff, curriculum, other parents etc.. all under the rpemise of being another child's parent.

My advice, start a decent restaurant or bar, they are a tonne of work and a horrible headache, but thats better than a hagwon and all the B.S. you have to face from your competitors.
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frankhenry



Joined: 13 Mar 2007

PostPosted: Tue Nov 18, 2008 6:52 pm    Post subject: Reply with quote

gteacher wrote:
bassexpander wrote:


He also mentioned that he has had "spies" from other schools seeking to see his required legal paperwork and railroad him if he can't produce it. Expect the same.



Expect spies, sabatours and general trouble from all the hagwons in the area if you are new. They will show up to register kids falsely so that your classes fill and then no students show.

They will show up at your open houses and try to tear your school down or put you on the spot in front of everyone.

they will phone immi and falsly report you for illegal teachers, the same with any one else they can get to listen.

They will stop parents outside your school and try to start rumors about the school, staff, curriculum, other parents etc.. all under the rpemise of being another child's parent.

My advice, start a decent restaurant or bar, they are a tonne of work and a horrible headache, but thats better than a hagwon and all the B.S. you have to face from your competitors.


Yes! This does happen. I have a Korean friend who owns a small hogwon. He has told me this is very routine/common.
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rooster_2006



Joined: 14 Oct 2007

PostPosted: Tue Nov 18, 2008 7:37 pm    Post subject: Reply with quote

Though I haven't personally opened a business in Korea, my Korean friend opened a guesthouse and I've helped her out with it for about two years. She's Korean and knows the processes, and she's still struggling so much.

The problem is that in Korea, everyone and their little brother owns their own small business, so for small businesses, the competition is so fierce, small business owners are working with razor-thin profit margins -- often less than if they worked for someone else.

My friend is actually thinking about closing down her business and just going back to working at several part-time jobs because the stress of running the place is so high.

I cannot imagine why anyone would want to start a hagwon, especially in the current economy. The D-8 provides a loophole to do work that you want to do in Korea. I can imagine foreigners who have a different calling in life from teaching English to use it to pursue their dreams here, but teaching English is already conveniently covered under a multitude of different visas (E-1, E-2, Working Holiday, E-7 for certain English teaching-related, non-teaching positions, etc).

What do you hope to gain by working for yourself? You'll have to deal with even more 학부모 (if you don't know this word, don't bother starting a hagwon in Korea) than if you were a teacher, and many teachers are in charge of their own curriculums, anyway (and wish they weren't).
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Dazed and Confused



Joined: 10 Jan 2003

PostPosted: Tue Nov 18, 2008 8:49 pm    Post subject: Reply with quote

My husband and I started our own hogwon this year. It wasn't as much a headache as everyone makes it out to be. It was expensive but being the frugal folk we are it was less than what's been quoted here.

The biggest mistake I can see the OP making is that s/he has no clients. Why anyone would open a hogwon without students is beyond me. Do privates, kong bu bang, or whatever to get the base before you open.
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Juregen



Joined: 30 May 2006

PostPosted: Fri Nov 21, 2008 12:17 am    Post subject: Reply with quote

gteacher wrote:


Expect spies, sabatours and general trouble from all the hagwons in the area if you are new. They will show up to register kids falsely so that your classes fill and then no students show.


This can be easily controlled. Make sure you interview the children BEFORE you sign them up.
I would call that a rookie mistake.

Quote:

They will show up at your open houses and try to tear your school down or put you on the spot in front of everyone.


This can be easily controlled. Know what you are going to do. How are they going to put you on the spot if your offer is genuine? If your background is clean clear and cut? If you know what the hell you are talking about.

Quote:

They will phone immi and falsly report you for illegal teachers, the same with any one else they can get to listen.


If your admin is in order there is no problem .....
First rule of all business, keep your books clean until you are in the safe zone. All new business are closely scrutinized.

Quote:

They will stop parents outside your school and try to start rumors about the school, staff, curriculum, other parents etc.. all under the premise of being another child's parent.


They can sure try that one, but effective advertising will counter the effects of those rumors, and in the end, if you do a good job, there is nothing they can say about you. You just need some capital to pay for operational cost until the word on the street kicks off.

Quote:

My advice, start a decent restaurant or bar, they are a tonne of work and a horrible headache, but that's better than a hagwon and all the B.S. you have to face from your competitors.


Personally I completely disagree with you.
I would never get the satisfaction from a restaurant compared to the satisfaction I am getting from the students.

Starting a hagwon is a personal business. Put some effort in building relations with your surroundings. Make sure people know you by face and name, and not least of all reputation.


That said, I wouldn't mind talking to people in the business. There are some things that i feel I am not handling well, and maybe their insights might help me out, and vica-versa.
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Xuanzang



Joined: 10 Apr 2007
Location: Sadang

PostPosted: Fri Nov 21, 2008 12:57 am    Post subject: Reply with quote

Then you have to face the bigger hagwons with their huge advertising dollars, bank partnerships and fleets of buses like Avalon. I think starting a hagwon now would be even more difficult and costly.
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gteacher



Joined: 24 May 2007
Location: Ghost in the machine

PostPosted: Fri Nov 21, 2008 1:54 am    Post subject: Reply with quote

I'm in the business, and everything you listed off is what we do and how we deal with what our competitors have thrown at us.

I especially enjoyed when Immigration should up and then apologized to me as they left.

I made the competitor look like a fool when she started to interigate me at the open house and gave her direct answers without blinking or missing a breath. Rumors are best killed by open communication between the parents and the school.

The hardest thing is re-training the Korean staff not to think like hagwon employees where everything is a secret.

Juregen wrote:
I would never get the satisfaction from a restaurant compared to the satisfaction I am getting from the students.


This is the reason that I am still in the educational industry. When you improve a students understanding you change their future. It's often hard and frusterating work with little reward. I also wouldn't give it up for anything. I love my job and am part of something that will change the future of Edcuation in Korea.

However, its not for everyone, most people who talk about opening a hagwon are only thinking of the money. My comments were meant for those people.
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Xuanzang



Joined: 10 Apr 2007
Location: Sadang

PostPosted: Fri Nov 21, 2008 2:58 am    Post subject: Reply with quote

hey gteacher, what are the monthly wonjangnims meetings like? I`ve always been curious what goes on there.
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BRcouple



Joined: 08 Nov 2008
Location: Baton Rouge, LA

PostPosted: Fri Nov 21, 2008 8:01 am    Post subject: Reply with quote

Quote:
I think that, to make a hagwon work, your best off starting small in an apartment complex, building students in your home, then branching off into a separate business if you are successful. The hagwon market is oversaturated. Many are dying. Keep that in mind.


You mean that one should do private tutoring first, right? But isn't it really impossible to do that legally (even for an F-4), with the low prices you have to charge?

I know that there are now severe penalties for tutoring without a license. Are there also severe penalties for overcharging for tutoring, or is that less of an issue?
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gteacher



Joined: 24 May 2007
Location: Ghost in the machine

PostPosted: Fri Nov 21, 2008 1:57 pm    Post subject: Reply with quote

Xuanzang wrote:
hey gteacher, what are the monthly wonjangnims meetings like? I`ve always been curious what goes on there.


We're not a typical hagwon, so we have a weekly meeting usually at 8:30 am for all staff.

The managment meeting's take place almost daily and they are the same as any administration meeting would be in a north american country.
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gteacher



Joined: 24 May 2007
Location: Ghost in the machine

PostPosted: Fri Nov 21, 2008 2:03 pm    Post subject: Reply with quote

BRcouple wrote:
Quote:
I think that, to make a hagwon work, your best off starting small in an apartment complex, building students in your home, then branching off into a separate business if you are successful. The hagwon market is oversaturated. Many are dying. Keep that in mind.


You mean that one should do private tutoring first, right? But isn't it really impossible to do that legally (even for an F-4), with the low prices you have to charge?

I know that there are now severe penalties for tutoring without a license. Are there also severe penalties for overcharging for tutoring, or is that less of an issue?


Tutoring without a license has always had penelties, just they weren't enforced well. There are now severe penalties for overcharging as a hagwon as well. The government is planning on publically posting appropriate hagwon charges - the fee that the hagwon reported it will be charging - and the placing fines on any hagwon that is charging more than what they reported they would be charging.

Regulations on hagwons are becoming stricter, which is nice if your established and legit. However, it does make your local competition a lot more aggressive and cutthroat.

If your serious about doing it, first you need to scout out a location. There are English hagwons on almost every block over here and if the market is already saturated its not a good idea to start up unless you have a large bankroll to support the school while you whiddle away the competition.
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Teelo



Joined: 09 Oct 2008
Location: Wellington, NZ

PostPosted: Fri Nov 21, 2008 4:36 pm    Post subject: Reply with quote

If a foreigner starts their own hagwon, and runs it, are we inclined to hate them too?
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Juregen



Joined: 30 May 2006

PostPosted: Fri Nov 21, 2008 5:26 pm    Post subject: Reply with quote

Teelo wrote:
If a foreigner starts their own hagwon, and runs it, are we inclined to hate them too?


Why would you hate them?

I am pretty sure that teachers working for foreign owned hagwons are better of. If not only for the fact that communication is much smoother and both have the same "management" principles.
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Xuanzang



Joined: 10 Apr 2007
Location: Sadang

PostPosted: Fri Nov 21, 2008 6:19 pm    Post subject: Reply with quote

Foreign owners could become dirtbags too. Though the chanes are less likely as they usually are former hagwon employees themselves.
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gteacher



Joined: 24 May 2007
Location: Ghost in the machine

PostPosted: Sat Nov 22, 2008 5:39 am    Post subject: Reply with quote

Juregen wrote:
Teelo wrote:
If a foreigner starts their own hagwon, and runs it, are we inclined to hate them too?


Why would you hate them?

I am pretty sure that teachers working for foreign owned hagwons are better of. If not only for the fact that communication is much smoother and both have the same "management" principles.


It's a crap shoot as far as I know. Some places treat the foreign staff well and pay them what they are worth. I do know of one place that is worse than the Korean hagwons even though it is foreign owned. I also know a couple of places that are the same.
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