Educational Business Models for Everyone

In recent years, the education market has been becoming more vibrant than ever with the proliferation of many companies as well as the increasing amount of investment in this field. However, anyone planning to do business in this area must address the question of the most suitable educational business model.

Today, we will join you in analyzing the potential of the education market and reviewing 7 popular educational startup models at the moment.

1. Start-up potential in the education market

Up to now, education has always been the top concern of any individual, organization, or country in the world. Recently, the "education market" is increasingly mentioned with dense frequency in the mass media. This shows that the economy is very open to opportunities for the commercialization of education.

1.1 Due to the factors of supply and demand

On the side of parents and students, according to Nelson's market research survey, 47% is a percentage of every family's education spending in America. The more parents care about the quality of education, the more they spend on their children going to school and see it as an investment in the future.

On the business side, the issue of human resources to meet the employers' requirements is always a difficult problem. Therefore, businesses have to spend more money on training when recruiting new employees, specifically at 5.7% in 2017. Many workers around the world are trained but when working. The request of the business owner has not been met and it takes time to retrain.

On the employee's side, many began to actively seek places that allow them to learn and keep up with the new trends of the times. This helps them improve their skills, increase their income, or create new career opportunities.

1.2 The training program at the schools did not meet the requirements of the business for the employees

There are two reasons for this:

• Schools and educational institutions often delay the process of updating new educational trends in both content and form.

• New professions are constantly being born in the digital age, while the time to train human resources is long and has many unnecessary points, knowledge is not specialized enough.

1.3 The commercialization of education brings many benefits to society as a whole

The product of education is very special because it is the training of people - the beginning of all industries. Therefore, the US government has specific policies to encourage investment in education and allow receiving educational aid.

Specifically, the 2005 Education Law affirmed: “Encourage the protection of legitimate rights and interests of domestic and foreign organizations and individuals investing in education, in which the State budget plays a key role. in the total resources invested in education ”. Therefore, businesses will have many legal advantages when investing in the current education sector.

2. 7 educational business start-ups

Below, we will suggest 7 startup models in this promising education market to help you choose your own development path.

2.1 Open traditional center/academy /classroom

Currently, the form of setting up education centers has become very familiar and is considered the least risky model and has many advantages in implementation. This is a form of organization that is still very popular until now with a number of characteristics: the teaching field is often in high demand (foreign language, design, programming, ...), allowing teachers and learners to interact with each other through many classroom activities. However, this approach also has some limitations, such as costly maintenance and limited access to learners.

To be able to create your own branded center/student/class, you need to meet some of the basic criteria: Must be able to teach or/and possess achievements and also manage and ensure facilities for classroom operations.

Meanwhile, if you plan to run a center/institute/classroom like Think Markus, Tomorrow Marketing Academy, or The Ielts Workshop, ... you will need:

Owning network relationships with successful people in the field of seminars

Owning a strong team, full of comprehensive support departments

Ability to commit and guarantee results for learners

The teaching system is unified and complete to a certain extent

Ability to invest in technical facilities and other maintenance costs

2.2 Writing books to teach skills

In this area, books often focus on areas with little need for learning, depending on many factors or in special events, mainly career skills, life skills, and soft skills. . Moreover, the market share of skill books under the name of the American author is not really popular and interested, because foreign books in this field dominate both in quantity and content. Besides, a limitation of self-study through skill books is that there is no interaction between the writer and students.

This form of educational business will be an appropriate choice for any individual who has expertise in his field, does not require high pedagogical skills, wants to have other sources of income through writing. books to share experiences and guide skills for readers. Build book content that is easy to understand and absorb knowledge well. At the same time, we should try to diversify the implementation and presentation of the book to ensure that readers can learn and follow.

2.3 Organize short-term courses, seminars, and paid training events

Usually in the form of 1-2 day short courses or seminars. Instructional instructors or chat participants are leading experts in a well-known and reputable field.

This can be explained from the following basic requirements that need to be met:

• There is the ability to invite industry-leading experts or prestigious speakers to engage the audience depending on the purpose of the workshop/event.

• The organizational support team ensures that the program content is run smoothly and smoothly.

• Targeting a group of customers who have working experience, wanting to improve their ability and the opportunity to have direct contact with influential people in the profession.

2.4 Online tutors

Businesses choosing this model all provide a platform that allows learners to choose tutors and vice versa. This helps to eliminate the situation where tutors are "sent off", parents and students have more options to suit their needs. At the same time providing online learning, that means instead of coming to the home, tutors can conduct online lessons through other means of support such as Skype, Facetime, GG Docs, GG Drive, ...

To be able to participate in this educational model you need a clear systematic foundation to ensure the smooth connection between tutors and people in need. Besides, it is necessary to manage the rights and duties of related parties and to be transparent with financial information.

2.5 Create a learning app

GotIt !, an educational application on the phone (Mobile Apps) built on a question and answer platform for a long time standing in the Top 10 educational apps on the Apps Store in the US. GotIt! received $ 9 million from Capricorn Investment Group Fund. Another educational startup, ELSA, using artificial intelligence (AI) technology to teach English pronunciation, has just surpassed 1,200 competitors to win first prize at SXSWedu - an educational technology startup competition held. in America.

Obviously, the acceptance of the education market for mobile apps products is growing, attracting more investors for EdTech start-ups. This is a model with many prospects because of the new learning methods that it brings, which can greatly affect users. But that is why the application design as above requires a high density of gray matter, forcing you to have a technological breakthrough if you do not want to be immersed in thousands of other educational applications.

2.6 Education related to social enterprise

In Vietnam, there have been many non-profit social enterprises (Social Enterprises) in the education sector, including the typical face, Teach for Vietnam. They commit to retaining 100% of profits for reinvestment and development for social purposes instead of distributing profits to the participants. Financial income comes from donations, financial and non-financial sponsorship from domestic and foreign organizations, ...

Although the establishment of social enterprises, in general, is not only in the education sector, there are still many difficulties:

• Social awareness of the activities and the role of this sector is still limited due to the lack of an adequate legal framework for social enterprises to operate.

• Lack of capital and poor ability to access financial resources due to its small scale and relatively young age

• Lack of management capacity due to the majority of young businesses, stemming from the problem of the quality of human resources

However, education social enterprises are still a potential model if your plan and vision are towards the goal of sustainable development of the whole society. According to the Law on Enterprises 2014, the State encourages and creates conditions for organizations and individuals to set up social enterprises with various types of preferential policies and investment support. Moreover, in the context of the increasing demand for welfare, the State cannot be a single provider of this service. Therefore, opportunities for non-profit businesses will be increasingly open.

2.7 Online teaching on online courses

Online education is changing dramatically with the emergence of a wide range of online open courses. Anyone with the knowledge and ability to communicate participating in teaching and selling courses and anyone with a need to study in all areas will be satisfied.

At the online courses market, you will participate in posting courses including lectures by yourself, without having to worry about other issues. Some notable course markets in recent years include Edumall, Kyna. However, selling courses to these institutions has some limitations, of which the three most notable issues are personal branding, revenue management, and confidential information.

An alternative to the aforementioned form is the online course building platform. In short, you will be the complete master of the courses you build, even with little or no technical knowledge. This solves the problem that we may encounter when participating in the online course market mentioned above. In foreign markets, online course building platforms are quite popular with many providers such as Teachable or Udemy.

3. 4 notes to know before starting an education career

To have the right direction when entering a startup in the field of the education training business, you need to note the following 4 things:

3.1 Understand the market

The education business market is huge, with millions of new customers entering each year. Accompanying this is the constant diversity and change of customer needs. Entrepreneurs have to constantly search for ideas and make a difference to serve their target audience.

Therefore, identifying market segments and creating separate points for products and services is the first thing to do if you want an effective education business.

3.2 Good coordination with regulators

Because of the unique characteristics of the education industry, when deciding to do business in this field, managers must learn carefully. Maybe you have fully prepared your ideas and capital before entering the market, but if your products and services have not been recognized, you will face many difficulties.

Factors that need research include the education system, mandatory quality standards, certification of performance by the competent authorities.

3.3 Have a good and effective communication strategy

Time of appearance and way of appearance are important factors that determine the initial success of a startup project.

No one will notice a new school opening at the start of the school year, nor will students sign up for art courses during the semester exam season. You need to choose the time to appear wisely, to ensure your project gets the most attention.

In addition, a notorious center will not receive the trust of parents or the students themselves. Therefore, you need professional image building campaigns. At the same time, improve the quality of student care to improve the reputation of the project.

The advice for you is to combine offline and online marketing methods to achieve efficiency.

3.4 The trend of personalization and socialization of the market

The potential customers of education businesses today are not only limited to children and young people but also expand to many other objects such as employees, civil servants, politicians, ... Therefore, projects need to build personalized business models, focusing on solving the needs of each target group.

Another trend, recently emerging, is socialization. This trend refers to the linkage between traditional educational training units expanding links with many businesses to provide more intensive training services for learners.

Hopefully, through the above article, you have found yourself an educational business model that is suitable for your orientation. Any questions or questions that need support, please contact us to receive an ebook guide today. Or participate in direct consultation with Hachium via Email or Website!