Website Closers® presents an established and proprietary EdTech Platform specializing in developing youth entrepreneurship. The courses are typically sold to governments and schools since they include useful material not in the traditional curriculum.
Service offerings that contribute most significantly toward revenue include bulk subscriptions to EdTech and custom programs that increase youth engagement. These result in an average contract size of $100,000, an 80% client retention rate, and account for 90% of sales.
Young people in this program are able to both learn a trade and utilize an eCommerce marketplace whereby they can sell the products they are taught to create.
Revenue Generation
80% of contracts are with governments; the remainder are schools or NGOs. Contracts for services are ongoing and billed annually. The company primarily makes money through subscriptions to its EdTech and transaction fees from its business eCommerce platform. The latter results from a popular course whereby students enroll and build their own businesses. Astutely, management offers the material in 12 languages, making it accessible to a broad global audience.
Marketing
Impressively, the business has achieved astonishing year-over-year growth without investing in paid advertising. It relies on relationship marketing through word-of-mouth referrals and city RFPs. Marketing endeavors entail press releases to detail the growth and innovation of the company, as well as uploading videos on YouTube to share youth stories. Additionally, the team posts business and industry news updates on LinkedIn.
KPIs
Given the exceptional margins and abundant cash flow, virtually no working capital is required of a new owner. As it stands, the business has enough runway to last 18 months due to its low overheads.
Notably, the company includes a non-profit arm that helps it obtain contracts in the education space. Since the technology needed to service contracts is owned by the for-profit holding, any contracts the non-profit receives can be invoiced. This has been an astute move, evidenced by over $1.5 million in contracts already for 2024. Revenue is split evenly between both, providing two lucrative income streams.
Furthermore, for tax purposes, the for-profit entity can donate to the non-profit to avoid taxes, boosting the bottom line. The non-profit can also aid in taking on operating expenses, further adding to the health of the other business. The IP is 100% owned by the for-profit arm and would transfer to new ownership.
Staff & Operations
The owner works full-time in the capacity of CEO. Primary duties include overseeing the strategy and operations of the platform, along with managing staff and business development.
One additional full-time and one part-time employee works for the company as Head of Business Development and in Community Engagement, respectively.
A buyer requires few special skills to transition seamlessly into a management role. The business does hold a M/WBE in California and New York, which helps it stay competitive for government bids. The seller is willing to stay on to help win bids if needed.
Scale Opportunities
As successful as this business is, various avenues are readily available to a buyer to boost growth further and achieve a swift and considerable return on investment.
Expanding into new cities via RFPs offers prospects, tapping into varied educational ecosystems through partnerships with schools, governments, and NGOs. Demonstrating the platform’s efficacy in entrepreneurship education across diverse settings is key.
A robust marketing strategy, untapped so far, could leverage social media, content marketing, and influencer partnerships for broader outreach. Implementing one could establish a direct-to-consumer channel, diversifying revenue streams.
Optimizing the Learning Management System for search engines can broaden visibility, attracting educators and students seeking entrepreneurship-focused education through improved SEO practices.
Meeting the demand for project-based workforce development by collaborating with organizations to integrate the platform into curricula would expedite adoption, giving students practical entrepreneurial skills.
Aligning with corporate social responsibility initiatives can boost revenue and expand reach through partnerships with socially responsible corporations.
Investing in technology to enhance AI capabilities and fostering industry ties can attract students and partnering organizations by offering more internships.
Creating pathways for students to secure internships post-course completion would strengthen the link between education and industry demands, particularly in areas with high demand, like NYC.
Engaging a PR firm can elevate visibility, garnering positive press coverage to attract educators, policymakers, and partners, enhancing credibility.
Finally, advocating for policy changes integrating entrepreneurship education into mandated school curricula aligns with educational and economic priorities, necessitating government collaboration.
This dynamic business has unlimited potential for a capable buyer and presents an enticing acquisition opportunity.
