In this blog, we are going to learn about the best business idea to start your own business with minimum investment in the education sector.
“Close scrutiny will show that most ‘crisis situations’ are opportunities to either advance or stay where you are”
This popular quote by Maxwell Maltz is very suitable to describe the present crisis and the possible opportunities it can offer. Mankind has faced several crises ever since it came into being and if we simply focus our attention on the economic crises of modern times, then the Great Depression of 1930, the Asian Crisis of 1997, and the Great Recession of 2008, are the ones that went on to create huge and long-lasting changes in the world.
But COVID-19 is very a exceptional and unknown event that has impacted not just the economic sector but also others like political, environmental, security, and more importantly the social sectors like education, health, etc. Especially the Great Recession of 2008 brought about significant changes in the business world.
While on one hand it posed as an adversity to teach upcoming entrepreneurs to consider the ‘recession resilience’ of a business, on the other hand it also presented opportunities that led to birth of giants like Whatsaap and Uber in the year 2009. Quite similarly, the COVID-19 pandemic has opened doors to greater opportunities especially in the field of EdTech i.e.
Education Technology sector. Before we move on to understand the newfound business scope in this sector, let us understand what it means to be a ‘Recession-Proof’ business.
What is meant by recession?
A recession is a period of declining economic performance across an entire economy that lasts for several months. Globalization has created complex inter-linkages between different countries and made the entire world vulnerable to any kind of recession episodes. Due to such uncertainties, it is important for aspiring entrepreneurs to choose businesses that are recession-proof or at least recession-resilient.
What is meant by Recession-proof business?
Recession-proof businesses are those that do not face any significant losses in difficult economic times and recession-resilient businesses are those that survive even after suffering losses in difficult economic times. Examples of recession-proof businesses are those that deal in the provision of essential products and services like education, healthcare, etc. because their demand is always there.
Coming back to the sector that has not only remained unharmed by COVID-19 pandemic, but has also taken a leap forward is the EdTech sector. It can be seen by the fact that while the total investments made in the Indian EdTech sector from 2014 to 2019 stood at $1.8 Bn, for the year 2020 alone it stood at $1.4 Bn.
As education is an ongoing process and one of the most important needs of society as a whole, its demand does not change much with factors like income. At the same time, this vital need gives enterprising people an opportunity to rationally monetize in the process. And the cherry-on-the-cake for entrepreneurs amid Covid pandemic has been the combination of education with another recession-proof sector i.e. Information Technology, both of which have brought in a new age education model.
We at SmartSchool Education have personally been a witness to the promising growth of EdTech sector and has been the growing business in India, especially in the middle of this pandemic. In these difficult times when businesses are not very confident of taking risks, we offer our franchise brands the opportunity to be their own masters without taking the pains and risks that come with starting a business from scratch. We offer extensive and thorough support and training to our franchisees in order to educate them and help them understand the company’s business model.
They get to become part of a brand that has already been successfully operating for more than 10 years now. and a growing business in India. Our research and journey will aid in introducing you to the knowledge, experience and industry secrets that you would have otherwise had to learn on your own over a long period of time through trial and error. The support and backing of our well-established business will not only provide you with investment security but will also increase your chances of success.
Other than proofing a business from recession, the EdTech sector also offers one of the best chances of customer retention which in technical terms can be referred to as a Repeat Business model. A Repeat Business model is the one that generates cyclical or repeated sales from the existing customers, which in turn makes it easier for the company to get new customers. If you are looking for a growing business in India, you should start with the ever-growing edtech sector.
According to estimates by experts, retaining even 2% of customers is equivalent to cutting costs by approximately 10%. Besides, repeat customers are more loyal, easier to sell to, offer free business promotion through referrals to friends and family.
The painstaking efforts which have gone behind creating the quality of products at SmartSchool Education have resulted in building a brand reputation and customer retention rate of close to 50%, which comes in handy for our franchisees to expand their customer base. We offer customized education modules and have proper feedback mechanisms, mentoring programs, etc. in place, through which we continuously engage with our existing customers and address their grievances.
The testimonials of our repeat customers and the success stories of our business, as well as retail clients, are proof of our growing business in India and give us a sense of satisfaction, confidence, and motivation to reach for heights and serve the noble cause of education.
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