To build the best possible plan, you will need to include all three of these elements.
Choose an economic model
Esteban Sosnik classifies common business models for edtech entrepreneurs into four categories:
From bottom to top (aka, the Freemium model)
This template starts with a free trial approach, and it’s great if you offer content. Users can download a free trial. Sometimes the download is a “lite” version of the application. Then they can upgrade to the premium version of the app. Some entrepreneurs limit the trial period to 30 days. The local approach is a quick way to build a large and loyal consumer base.
Select this model if you are offering a school-wide or district-wide system. You will be selling to administrative managers, so you will need to be very careful about how you meet the needs of your customers. The ability to evolve is essential. The institutional approach takes longer but pays off in bigger contracts once you jump into district circles.
A consumer-based model transfers the costs to families rather than schools. In this model, schools use edtech for free. If families want to use the product at home, they pay for it. Some see this model as a win-win because the main consumers, children, have access to it during the school day. Investors appreciate this ingenious way of marketing the product to families.
In some cases, you may be able to persuade a company to sponsor the purchase of your product for a school. Corporate Social Responsibility (CSR) is a way for companies to give back to their community.
Describe yourself and what you do
Write a summary of who you are and what your business does. You will need a summary, description of the edtech company, and an explanation of how you have organized your business structure. The story is not only helpful in staying focused on the business, but it also introduces you to investors. You may find it helpful to include the resumes of your key personnel in the appendix.
Watch out for money
Your plan is not complete until you demonstrate how you have thought about the money. First, you will need to describe the results of your research. How will your edtech solution solve a pressing problem in education? Use quantitative numbers to tell how the results affected the development and marketing of your products. Show your accounts payable and receivable. Plus, plan how much money you’ll need for at least three years.
As you write your plan, express your aspirations in a positive tone. Your confidence will sell your idea not only to investors, but also to yourself. This is essential, especially for times when you feel like letting go of your ideas.
Your business plan will guide you in all the decisions to come. There are many tips that can help you get started with your edtech products and services.