“A dollar today is worth more than a dollar tomorrow.”
This statement summarizes all of finance, it even has a fancy name: the Time Value of Money.
It applies to all types of investments, including opening a college, a university or a vocational school.
Perhaps that’s why this is the FIRST question that all my clients ask me “what is the cheapest, fastest, and easiest way to open a post-secondary educational institution?”
Let’s talk about the two great options you have to get up and running fast:
The first option is opening a vocational school and adding degree programs to it in the future.
In most states, the application process for approval to operate a vocational school is short, easy and fast. The requirements for a vocational school are fewer than they are for degree-granting institutions. So you will be up and running in a shorter amount of time. For example, you’re not expected to have a library for research purposes, and you can hire instructors with lower levels of education. This reflects largely on your startup investment and timeframe.
There’s a ton of demand for vocational schools in big states like Texas, Arizona, and New York, so it’ll be easier to fill out your student roster, make a profit, and gain credibility in a shorter period of time.
Once your vocational school starts bringing in revenue, you can then add degree programs.
Now, if you don’t want to go that route, the second option is to start with a an exemption from state supervision.
There is a long list of exemptions that you may qualify for:
For example, California exempts schools that offer non-degree programs with tuition fees of $2500 or less. And 28 States, including Florida, offer exemptions for faith-based institutions.
Also, most States will offer exemptions for non-vocational or recreational programs that don’t lead directly to professional status. You could start off with this option, and then apply for a regular license after you gain traction and become profitable.
Don't let the lack of funding stop you from offering quality education. With the right know-how and a strategic approach, you can open your dream university or college even on a tight budget.
To learn more about affordable and fast options for opening your university, explore our links below.
And be sure to check out our next video "Do I need to hire faculty before I open my university?” As always, feel free to give me a call or Contact Us with any questions you may have. I’ve been helping clients establish universities in the US for over a decade, and I’m looking forward to helping you, too.