6 things to consider before launching an EdTech company
Over the past decade, the edtech industry has undergone a drastic revolution. We’ve witnessed Brighterly, and other edtech startups dominate the scene, making learning more accessible for learners of all ages. As expected, their efforts have contributed to the general worth of the industry, making it a very profitable one. But don’t just take our word for it; what do the numbers say? A quick glance at statistics shows us that the edtech market could reach a value of $605 billion by 2027. Sounds amazing, doesn’t it?
Like other entrepreneurs, you’re probably ready to dip your toes into the golden waters of edtech and launch your very own edtech startup. However, before you make that decision, pause and read this expert guide.
Things to consider before launching an EdTech company
While launching an edtech company is a profitable move, far too many startups with big ideas have crashed and burned without even getting off the runway. The cause? Lack of adequate planning. To help you sidestep this rubble and attain success, here are some key factors to consider before you create an edtech startup:
The unmet customer needs
Picture this scenario: you have a baby who has been crying for hours on end. You’ve changed their diaper and fed them but they still have an unmet need. Perhaps this unmet need could be an itch or rash on their back that needs attention. To get them to stop crying, you have to make the itch go away.
Edtech startups work in the same manner. The successful ones spot unmet needs and get rid of that “itch” by designing new, relevant technologies. On the other hand, the failed ones either design solutions for problems that don’t exist or create mediocre versions of existing solutions.
As an entrepreneur looking to build an edtech company, the first step to success is to identify a concrete need or problem in the edtech sector. This need will then form the base of your startup idea.
Niche and market size
Closely tied with customer needs, another factor worth considering is your niche. While the edtech sector is unified in several ways, it’s far to broad to be condensed into one app or solution. As such, it’s essential to carve out a specific niche for your startup. Who is your target audience? Would you focus on creating solutions for children in middle-school? Is your startup focused on making education more accessible for learners with disabilities? Whatever the case may be, carve out a niche for your startup and stick with it (at least, in the early stages).
However, it doesn’t just end there. While carving out your niche, it’s important to equally consider the market size. No matter how genius your idea or solution is, it would be hard to attain profitability if the market size is too small.
Competition
Every business has competitors, regardless of how small or large they are. The 10-year old girl selling lemonade on the street is competing with other kids who have the same idea. In the grand scheme of things, they’re also competing with bigger companies who probably sell a better-packaged version of the same product.
In the same vein, your edtech startup -even though it hasn’t been launched yet – already has competitors. As such, you should identify your competitors and take note of their strategies before launch day. What marketing strategies do they use? How are they positioning their product in the marketplace? By conducting a comprehensive analysis of your competitors, you’d be able to find a way to make your startup unique and better.
Funding
Funding might be a scary topic but it’s an important bridge to cross for any startup founder. Before you build an edtech startup, it’s essential to first consider what your primary source of funding would be. Savings? Family and friends? Angel investors? Identify and map out a funding plan before making any permanent decision.
High-quality content
EdTech is nothing without content. Whether you’re designing a math game app or creating an online learning platform for middle schoolers, it’s essential to determine the direction your content will take. Your content must be unique, defined, and of course, be accurate at every given time. It is the peak-defining quality of your startup.
So, how do you ensure that you have high-quality content plans laid out before launch day? For starters, you’d need to brainstorm with experts in the field. Educators, developers, and designers must all come together to ensure that your startup is offering quality content. This way, you can get ahead of your competitors.
Marketing plan
Here’s one thing you need to know: your edtech solution may be out of this world. However, if no one knows about it, it won’t sell and you’d just have a failed product on your hands. As such, it’s important to map out effective marketing strategies before building or launching an edtech startup.
By having a clear marketing plan with a sufficient budget to back it up, you’d be able to spread the word about your startup and reach your target audience in no time at all. At the end of the day, profits will begin to roll in.
Employ rigorous beta testing
Sure, you might have an expert team of developers on your hands. However, this doesn’t necessarily guarantee that some bugs won’t go undiscovered. To prevent this glitch, it’s advisable to start off with a beta version of your app. Give out the beta version free to some users in order to get real, genuine feedback and of course, catch undetected bugs. This way, your app or software will truly be ready for the market.
Final thoughts
Building an edtech startup is a long process that often requires a lot of strategic thinking and careful consideration. As an entrepreneur looking to take this big step, the aforementioned factors will certainly set you on the right path to success.
Remember: it may take a while before your startup fully gets off the ground. Good luck!