Pros & Cons of Taking Over a Business vs. Building a New One

You’ve decided you want to become a Kumon Instructor. How exciting! Now you get to make some very big decisions about your Kumon Centre. One of the first things you’ll need to consider are the advantages and disadvantages of taking over a business in the education industry as opposed to building a new Kumon Centre.

Let’s look at the pros and cons of building a new Kumon Centre and buying an existing Kumon Centre.

Education franchise owner standing in her new location in front of students studying in the background

What are the advantages of building a new Kumon Centre?

The biggest advantage to building your own Kumon Centre is that you can get exactly what you want. You can choose the location and make sure it’s convenient for you. Plus, the paint, furniture and more are fresh and clean when your students and parents visit.

Kumon’s generous incentives program is another advantage. You may be eligible for up to $14,000 to offset startup costs, including furniture, signage, carpet, marketing and more.

What are the disadvantages of starting your own business?

The downside of starting from scratch is … you are starting from scratch! Buildout could take up to six months; however, after you have signed your franchise agreement and lease, you can (and should) open your centre virtually.

After the doors are officially open, you will have to find students and build enrollment, although opening virtually will make this easier. Even better: You won’t have to do it alone. Kumon’s marketing team will help you market your new business to parents through ads, flyers, posters and more.

Still, you should anticipate being in business for several months before you start operating in the black.

What are the advantages of buying an existing Centre?

Kumon Centres follow an owner-operated business model. Sometimes, business owners cannot run a business anymore, possibly because they are retiring or relocating. Therefore, they have to sell a Kumon Centre into which they have poured their heart and many hours. In fact, there is enough of a demand for existing Centres that Kumon North America has built some Centres in strategic markets as part of a plan to sell them as turnkey opportunities.

One obvious advantage to buying an existing Kumon Centre is that you can get to work right away. There is no construction – and so no construction delays or permitting worries. You would “inherit” an existing list of students and parents and probably an experienced staff. You would most likely have income coming in from day one.

What are the disadvantages of taking over a business?

The disadvantage of buying an existing Centre is that you probably will pay more for it because you are buying an established business with a customer base.

 Additionally, an existing Centre may not be exactly as you would prefer. Maybe the location is not ideal because it’s a bit further from your house than you had hoped. Or perhaps the rent is more than you want to pay. Aesthetically, you might think the building could use a facelift.

And where a new Centre may be eligible for incentives to offset startup costs like furniture, paint and carpets, an existing Centre is not really a startup, so the new franchise owner is ineligible for those same incentives. Therefore, any refurbishing costs would be out of pocket.

At the end of the day, choosing whether to build your own Centre or take over an existing one is a matter of personal preference. Both offer the satisfaction of owning and running your own business, making a positive difference in the lives of children and contributing to your community.

Get started today! Learn more about the Kumon Franchise opportunity here: