Expert: Kitty Kavey - 9/17/2011

Question
My daughter is 35 years old, she's a former model.
She's been taught modeling classes at different schools in the state and in the Caribbean.

Now she wants to open up her own modeling school and agency here in Florida. But when she instructed at someone else school most of the business task were handled by the modeling school owner.

Since she wants to own her own modeling school the first step is to have the funds.

She asked me for help. But even thought I have the money and the interest to help her;(she's a really good modeling teacher) I told her that first I need to get a lot of questions answered.

For example:
The industry overview about modeling schools and agency
Reasons why modeling schools are everywhere
What to expect from a modeling school?
What is the real business in a modeling school?
Who are the potential costumers?
Costumer's age, family income, gender ect
Overview of a modeling school operation
Average of monthly and annualy revenue in a modeling school busines.
What is better? a franchise or start out with a new name?

When  I asked her those questions she answered me that she'd done a lot of research in the internet about "the modeling school industry" but she cannot find any website or a practical handbook related to that matter.

I'm interested in helping my daughter to open up her own modeling school and agency; but first I need to know all the process involved. I would appreciate your prompt advice on where to find "The modeling school industry information". Again thank you!

Answer
For Florida, I suggest contacting the state Department of Business and Professional Regulation to inquire if your daughter will need two licenses, perhaps one for a talent agency and one for a school, or if she will be able to run under one license, such as a school.

Visit http://www.myfloridalicense.com for more details, and the direct contact to individual licensing bureaus - for example for a modeling agent: http://www.myfloridalicense.com/dbpr/pro/division/Servicesthatrequirealicense_ta

Also the 2011 Florida Statues:
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0400-

If that link doesn't work, visit http://www.leg.state.fl.us and look up in the 2011 Florida Statutes under Title XXXII, REGULATION OF PROFESSIONS AND OCCUPATIONS, Chapter 468
MISCELLANEOUS PROFESSIONS AND OCCUPATIONS - PART VII, TALENT AGENCIES (which includes models).

Of course if your daughter decides on opening just a school, then there's no need to look up licensing and regulations for an agency.  There has been some discussion over whether it is a conflict of interest to operate both a school and an agency under one owner, so you'll need to clarify that with the state of Florida if your daughter wants to do both.

Most of the rest of your questions would be answered in a standard business plan which one should have prior to opening a business, and certainly when one is seeking an investor or investors.  It is perhaps easier to open a franchise as many of the numbers are already available - including marketing costs.  Also there is already a public awareness - and reputation - that goes along with a franchise investment.

However, whether or not investing in a franchise would be better in part can be answered by a business plan.  If your daughter wants to open up a John Robert Powers in Altamonte Springs, that might be a poor choice simply because there is already a JRP in Orlando.  If she learns that the JRP in Orlando has a long waiting list of potential students, and she's thinking of placing her school some distance away, then the close proximity may not be adverse to her future business.

Regardless of whether or not she decides on a franchise or to open her own school, she needs to have some idea of what the costs would be (teachers, rent, electricity, insurance, licensing, furnishings, equipment and so forth), what she can reasonably charge in the area, and what target she needs to hit or exceed to break even or make a profit.  All those numbers depend on many factors that cannot be answered generally.  Your daughter will now or in the future decide how large of a school to begin with, including how many students and what the size is of the facility needed.  Then look in the area where she wants to open for suitable rentals, and you'll also be able to determine what the monthly costs will be involving the location; rent, utilities and so on.

When working on the business plan, your daughter can also decide whether she has something that she can offer that is unique, or that it might be better to simply go with an established model - a franchise.  That will also answer what to expect from a modeling school and who the potential clients are.  With a franchise that's already done, and of course on your own you can tailor to suit (the area, one's skills, etc.).

If your daughter feels overwhelmed with trying to put together a business plan, she can contact S.C.O.R.E. www.score.org for free small business advice.  In person they can put one together with a mentor - often who has expertise in the area one is seeking advice with.  

Good luck to you and your daughter,
~Kitty