STEM School Revenue Model
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A business opportunity to create a private elementary school focused on STEM education, based on analysis of successful San Francisco private schools that generate significant revenue with high-end tuition models.
Key Metrics from Existing Model (Hamlin School):
- $31M annual revenue
- $11M in profit
- $100M in assets (primarily real estate)
- 450 students
- $40k/year tuition per student
- 75 teachers (6:1 student-teacher ratio)
Business Opportunity:
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Real Estate Timing:
- Take advantage of vacant commercial buildings due to remote work
- Convert office spaces into school facilities
- Buy commercial real estate at current low prices
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Differentiation Strategy:
- Focus purely on math and science education
- Avoid political/social issues in curriculum
- Position as a hardcore STEM education institution
- Keep politics out of elementary education
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Branding Options:
- Use prestigious-sounding names like:
- Windsor Oaks
- Carrington School
- Thatcher Derby
- Use prestigious-sounding names like:
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Target Market:
- Parents seeking traditional academic focus
- Families willing to pay premium for quality education
- Those looking for alternatives to public schools
- Parents wanting focus on core academics vs. social issues
The model demonstrates strong unit economics with significant profit margins while maintaining high educational standards through low student-teacher ratios.
25:06 - 31:56
Full video: 01:15:56SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.