Oct 17, 2016 11:45 AM IST | Source:

1001 Startup Ideas - CRM tool for Private Tutors

The management tool shall include CRM, online payments, invoicing, payroll, class scheduling, timesheets, sending work to students and access to parents of students for feedback.

What is the idea?
The startup idea is to establish management tool/ software for private tutors. The management tool shall include CRM, online payments, invoicing, payroll, class scheduling, timesheets, sending work to students and access to parents of students for feedback.

Market Definition
"Private tutoring" is considered to be a multi-billion dollar business globally. Market research analysts at Technavio has predicted that the global private tutoring market will grow steadily at a CAGR of almost 7% by 2020

Global Industry Analysts Inc. (GIA) in its report ‘Private Tutoring: A Global Strategic Business Report' has predicted that the ‘Private Tutoring' business will reach USD 1.2 billion. The report further goes on to state that 90% of the tutoring market is focused in USA, Europe and Asia-Pacific (more specifically, Hong Kong, Japan, Singapore, South Korea and China) with South Korea takes a substantial chunk of the tutoring business.

EdTechXGlobal has predicted that the EdTech segment will reach USD 252 billion by 2020 growing at a rate of 17% per annum. It also states that "With 90% of the world's population under 30 years old already being in emerging markets, education and vocational training in the area will be led by mobile first strategies".

Competitor Analysis
EdTech is one of the hottest sectors globally. Inc. magazine listed tutoring as one of the top 16 industries worldwide for starting a business. Therefore, there is a rush of startups looking to create products, which would disrupt the market. Although tutoring business has seen a lot of startups, there have been few startups, which have been working in making products like the one proposed in this article.

Tutorcruncher is a startup, which has created management software, which provides CRM, invoicing, payroll, class scheduling, timesheets, etc. It focuses on providing the above solution/software to driving schools, tutoring companies, cleaning companies and music learning companies. It is prevalent in the UK market and has recently started eying the North American Market.

Pain Point & Target Audience
The targeted customer market for this business is "tutoring companies" and "individual private tutors."  Tutoring business in Asia Pacific remains highly unorganized. At the same time, these countries have shown highest acceptability to technology, especially mobile-based technologies. A product like this would be very attractive for private tutors in this region if priced aggressively.

Value Proposition
The Asia Pacific region, especially Southeast Asia and the Indian sub-continent, have a lot of private tutors who provide private tuitions to school goers, college goers, and professional course students. However, the method of managing the students, invoices, feedback, payments, etc. remains highly unorganized in this segment. This product will aim to make the life easier for private tutors.

Business Model
The startup will use a Freemium model, wherein, some services like scheduling of tuition classes could be made free and other services like CRM, invoicing, messaging and email services to students can be provided on a subscription based model for up to a certain number of students. The user could select a plan as per his/her preference.

Way to market
The startup first needs to pick a market from South East Asia or the Indian subcontinent to start this business. It could incorporate in a market like Singapore or Hong Kong, which is tax friendly. However, for starting operations, it is essential that this startup focuses on obtaining individual tutors as customers.

Once the startup has reached a decent level of customers in it’s target market, it may consider tying up with e-tutoring platforms, which have a range of private tutors providing their services on their platform. Exclusive discounts could be offered to such customers.

Asia Pacific should be a key market for this startup, with Governments of these countries targeting literacy and skill development through digital mediums, this idea could ride on those campaigns to get new customers. It will be good to talk to the Governments in few of the smaller Asian countries and start a pilot program.

Investment Needed For Prototype
For testing & building the prototype, pitch for raising 100K USD from angel investors or incubators in your country. There should be no office rentals or salary payout; the entire budget should be apportioned for customer acquisition and technology.

Team Capability
You would need to have an expert who has past experience of creating interactive CRM tools and a marketing expert who has the yen for building ‘freemium' models for subscription based software.

Investors / Expert Take
According to Cbinsights, Q1 of 2016 was the 9th straight quarter in which EdTech sector deals totaled more than 100. The sheer number of startups getting funded shows how the market is evolving and the degree of investor interest. Some of the most notable investors in the EdTech sector are 500 startups, Newschools Venture Fund, Lean Capital, GSV Capital and Accel Partners.

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