Information about 'Mom & Pop' English schools

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Mom and Pop Eikaiwa Finances

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Today I will expose the Mom and Pop Eikaiwai model as a sham. Some gaijins have a dream of running a mom and pop eikaiwa and employing random gaijins. The truth however, will shock you to core.The mom and pop outfits who employ just ONE gaijin need to be raking in at least a million Yen a month to viable. No sane person would consider operating their own business, with all the stresses and strains it involves unless they can get an income of 500,000 Yen or more. After paying rent, utilities, advertising, taxes etc.. of say, 200,000 Yen. A reaonable wage of 300,000 Yen per gaijin brings it upto 1,000,0000 Yen.

Of course, these mom and pop outfits compensate for not reaching the magic million in sales by ripping of gaijin teachers. I remember some scam artist was boasting on here about paying 150,000 Yen month per gaijin as a training wage - then not much more after that.

If somebody starts their own eikaiwa then do it from your own home if you can - and that's a viable reality for any no. of neighborhood eikaiwa. You're just paying the same rent you would have ordinarily with the utilities higher BUT

did you know that you can claim so much on tax that it's definitely worthwhile to run an eikaiwa from the house you're living in? I didn't but I knew of personally and heard of mates' gaijin acquaintances and of J people running eikaiwa from their homes. Their computer was tax deductible, electricity was tax deductible, a lot of things they bought for their house/apato was tax deductible, all the school material was tax deductible including the magazines and things they actually bought for themselves. The Japanese tax system was paying for these gaijin to buy Time and Sports Illustrated and other foreign mags that cost a fortune in Japan and have this reading material for their own purposes but declare it to be school purchases.

You don't have to be a person with a lot of money to invest to start an eikaiwa and make money, you don't even have to be somebody with real business or teaching skills. Some of the gaijin I knew successfully running eikaiwa were hardly a teacher's arse but they were able to bluff their way thru and being male had an advantage. Gaijin men get a lot of free passes in Japan.

Add on the fact that most of these eikaiwa owners don't declare their real earnings because the cash economy gives lots of opportunities to diddle the books, especially if you can own the business in conjunction with your Japanese wife or have it in her name. Most of the gaijin running their own neighbourhood eikaiwa don't pay the tax they should.