EdTech Business and How It Works
EdTech is a quite popular business branch nowadays. But how exactly does it work, and do top EdTech companies have any potential? Let’s figure that out together.
EdTech startups are popping up every now and then, and some of them are pretty successful and profitable. So, what is EdTech, how does it work, and what prospects does this business vertical have? This is exactly what we are going to discuss in this article, so let us dive right into that topic.
What Is Educational Technology Business?
First things first, let’s figure out what is an EdTech company and how this business branch works and brings profits. So, basically, EdTech refers to the use of computers and software in teaching and learning to enhance these processes. In general, the idea of such educational tools is great, but, just like anything else in this world, it has some drawbacks, which we will discuss further. But all in all, most top EdTech companies are doing well at the moment.
Speaking about educational technology companies, they work in several areas, such as:
- Self-learning online courses
- Online courses with a tutor
- EdTech software and platforms for interactive learning, tests, classes, etc.
- Language learning websites and applications
At first sight, it seems like EdTech business models are pretty limited, but in fact, there are endless opportunities in this field, such as masterclasses from well-known experts, video courses, self-learning platforms, working in specific fields only (e.g., stock market, language, crypto, IT, etc.), platforms for connecting teachers with students, software for schools and universities, online tests, platforms for students with disabilities, teachers resources, and so on and so forth. The opportunities are truly endless, and you can come up with your own unique EdTech startup and succeed. So, if you always wanted to found an EdTech company, it’s worth a try.
How to Start an EdTech Company
In case you have already decided to launch your EdTech startup, we offer you to have a look at this short step-by-step guide that will help you do everything right:
- Explore EdTech business ideas and come up with a unique idea for your educational platform
- Gather your dream team
- Make a presentation about your startup and reach out to your potential investors
- Present your business plan to investors and gather the money for your startup
- Register your educational technology company and deal with all the legal issues
- Launch a website, app, or both
- Use Germius to set up a CRM system and arrange payment orchestration services for your platform
- Start your marketing campaign to get your first customers
- Maintain and update your platform and get profits
Of course, these bullet points sound pretty simple, but in reality, launching such a company requires a lot of dedication and work. Yet nobody says that it’s impossible, so why don’t you give it a shot?
Common Problems of Educational Technology Companies
Just like other verticals, EdTech business has some disadvantages and problems an entrepreneur has to know about before launching such a business. So, let’s take a brief look at the most common ones:
-
High competition.
This is perhaps the biggest problem of EdTech startups. There are too many services, most of which are free or partly free, and you will have to compete with such top EdTech companies as Google Classrooms and Coursera. So, you have to come up with something truly unique and have a smart business plan to win this competition. -
Marketing.
This problem follows from the previous one — you need a smart marketing campaign that will help you attract customers who already tried high-quality free educational services. Obviously, such a marketing campaign is going to cost a lot.
-
Investors.
The problem of attracting investors follows from the first two problems. The thing is, inventors know the situation in the EdTech industry at the moment, which is why a lot of them are reluctant to invest in such startups. Therefore, you have to come up with a revolutionary idea for your business and work really hard to convince investors to provide you with the funds for its realization. -
CRM and payment orchestration.
Lastly, your platform will need a high-end CRM system and payment orchestration services, which are often expensive, and the fact that they are provided by several different companies makes them even more costly. Luckily, you can save some funds and get everything you need from Germius since we offer all these services as well as personal discounts for our clients.
As you can see, there are a lot of problems you will have to deal with on your way to success in the EdTech industry. But if you have a unique business idea and are ready to work hard, you will no doubt succeed.
Germius for EdTech
As we have already mentioned above, EdTech websites and applications need decent payment orchestration services as well as a CRM system, and Germius is more than happy to provide you with both. Understandable subscription management, billing assistance, chargeback prevention, and fraud reduction are just a few examples of the wide variety of services we offer.
We will find the best solution for your company and help you bring your business to the top. So, contact our assistant now and find out about your personal discount.
As you can see, e-commerce companies are prospering now and are expected to grow in the future, which makes this field worth your attention and investment.
EdTech Stats and Prospects
Despite the fact that the EdTech business comes with certain problems, it can bring decent profits, which makes it worth a try. So, let’s take a look at some numbers that will help us prove our point:
- In 2021, the global EdTech revenue reached $106 billion
- The EdTech market is worth $340 billion
- The industry is expected to reach $605 billion in value by 2027
- The EdTech usage in schools has increased by 99% since 2020
Conclusion
The educational technology business is one of the fastest-growing industries in the world, meaning it provides entrepreneurs with endless opportunities. Just make sure you have a great business strategy, cooperate with Germius, and you will reach the best results possible.
