WebsiteClosers® presents an established and proprietary EdTech Platform with 11 years of experience in developing youth entrepreneurship. As their courses contain useful material not available in traditional curriculums, they are typically sold to governments and schools.
The service offerings that contribute most towards their revenue include bulk subscriptions to EdTech and custom programs crafted to increase youth engagement. These account for 95% of their sales and have given the brand a client retention rate of 80%.
The young students signed up to their program are taught a trade and how to utilize an eCommerce marketplace, from which they can sell the products they are taught to create.
Business Broker Takeaways
1. Organic Marketing. The brand has achieved an impressive year-over-year (YoY) growth rate without the need for any paid marketing. Instead, they rely heavily on relationship marketing through word-of-mouth referrals and city RFPs.
They supplement these strategies with press releases that detail the company’s growth and innovation, youth story videos uploaded on YouTube, and business and industry news updates on LinkedIn.
2. Strong KPIs. The brand’s fantastic margins and healthy cash flow ensure that the new owner will require virtually no working capital, though a buyer will ideally have cash to deploy for scaling purposes. The brand currently has enough runway to last 18 months due to their low overheads.
3. Valuable Non-Profit. The company possesses a non-profit arm that helps them obtain contracts in the education space. As 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 a valuable move, leading to contracts already for 2024. The non-profit can also take on certain operating expenses, adding to the health of the for-profit side. The IP is 100% owned by the for-profit arm.
Revenue Generation
Over 80% of the company’s contracts are with governments, with the rest being with schools or NGOs. Contracts for services are ongoing and billed annually. The brand primarily generates their revenue through their EdTech subscriptions and transaction fees from their business eCommerce platform.
This eCommerce platform results from a popular course that sees students enroll and build their own businesses. The brand’s material is available in 12 languages, making it accessible to a wider global audience.
Staff & Operations
Current ownership works full-time in a CEO role. Their primary tasks include overseeing the strategy and operations of the platform, as well as staff management and business development. A buyer would ideally already have a place in the ed-tech space. They employ one additional full-time and one part-time employee who work as Head of Business Development and in Community Engagement, respectively. The brand holds a M/WBE in California and New York, which helps them stay competitive for government bids.
Scale Opportunities
While already successful, the company has plenty of scale opportunities available to pursue additional growth and see a rapid return on investment. They could begin by expanding into new cities via RFPs and tapping into various educational ecosystems through partnerships with schools, governments, and NGOs. By demonstrating the platform’s efficacy in entrepreneurship education across diverse settings, they could bolster their reputation and gain access to more consumers than ever.
They could implement an active marketing strategy that combines social media, content marketing, and influencer partnerships for a broader outreach. This campaign could help them establish a direct-to-consumer (D2C) channel, further diversifying their revenue streams. They could also optimize the Learning Management System for search engines, which would improve their SEO practices, broaden their visibility and attract educators and students alike with an interest in entrepreneur-focused education.
They could further improve their traffic by working with a PR firm, which would help them build positive press coverage to attract educators, policymakers, and partners, improving their credibility.
The brand could meet the demand for project-based workforce development by working with organizations to integrate the platform into curricula. This would expedite adoption and offer more students practical entrepreneurial skills than ever. Additionally, they could align with corporate social responsibility initiatives, which could boost revenue and expand their reach through partnerships with socially responsible corporations.
They could expand on this by advocating for policy changes that integrate entrepreneurship education into mandated school curricula, which would align with educational and economic priorities and necessitate government collaboration.
Finally, they could build pathways for students to secure internships post-course completion. This would strengthen the link between education and industry demands, especially in areas with high demand like NYC. The brand could develop these pathways by investing in technology to enhance AI capabilities and fostering industry ties.
Conclusion
This seasoned brand has learned many tips and tricks over the last decade, providing the right buyer with an excellent opportunity. The seller is looking for a minority strategic partner for this company, and one interested in helping them rise to new heights.
