Our primary objective is to select business concepts with successful business components that allow us to meet our clients’ needs and goals.
In order to achieve these goals, the business concepts we select must have the following characteristics:
- Need. A large market or a significant customer need.
- Driver. A business or sales driver.
- Value Proposition. A unique value proposition that solves a customer’s problem.
- Tools. Proprietary intellectual property and/or tools.
- Passion. A passion component for employees as well as for customers to purchase the product or service.
- Capital. A capital requirement to provide financial resources to properly execute and scale the business model.
- Scale. The ability to scale the business creating economic efficiencies that competitors cannot achieve. This scale and efficiencies created provide a financial edge over the competition.
- Exit. Ability to scale creates the dynamics for a likely profitable exit.
Why does the educational marketplace have all of the necessary components to meet the goals of business and investor visa programs?
Need. The various educational systems in the U.S. don’t always have the necessary ability to provide parents the assurance that their children will have access to the resources needed to excel. Parents are always seeking ways to provide their children with a competitive edge.
Driver. Parents are motivated to supplement their children’s education. This creates a compelling driver to solve the problem of a school system’s lack of resources at whatever cost is required of the parents.
Value Proposition. Providing supplemental education resources is not only a revenue driver but creates enormous value for the parents. Along with this value creation comes substantial pricing power.
Passion. Parents have always had a desire and a passion for providing opportunities for their children that they may or may not have had. Parents will make incredible sacrifices for their children in order to give their children an edge in today’s highly competitive world.
Capital. The right educational business doesn’t have the traditional capital intensive requirements most businesses have such as inventory, real estate, technical level employees or highly specialized and expensive equipment.
Scale. Scale is the secret weapon used to overcome competition. Properly executed and scale provides the ability to create brand dominance. With brand dominance comes brand recognition. With brand recognition comes a lower cost of customer acquisition which competitors over time cannot overcome. This strategy is often referred to as the “Starbucks” brand saturation strategy.
Exit. The ability to scale without substantial additional capital investments creates the dynamics for a higher monetization valuation when exiting the business.