Ed’s RTO is squeezed in a pincer clamp. Changes in government funding are driving potential trainees back to the TAFE system, lured by the offer of free placements.
Iconically, trainees that take up free placements have completion rates half those of Ed’s RTO. And many that do complete leave their chosen vocation within eighteen months.
The other pincer: private equity either buying or developing swathes of childcare centres. Attracted by the lucrative government subsidies, they’re happy to operate a high-churn staff policy and bide their time, as the smaller independents struggle to compete – and close.
So when he jumped on a Clarity call with me, there was an undertone of despondency. Revenues had halved in the last year, and it weighed heavily on Ed’s natural can-do mindset.
The value of an experienced outsider is that they see things you miss.
Ask questions that challenge the status quo and unearth avenues to explore.
As we unpacked the business over the next 25 minutes what came to light was a series of possibilities that could be worked, honed and shine a way forward:
- A niche training service he can offer, unlimited by the changes in government funding.
- A market segment that values quality training and its staff. One that Ed has a natural affinity for.
- Opportunities within his client base – rekindling old relationships, deepening existing ones.
- Added-value elements he can build into his service – that others don’t offer.
And a problem to address…
Though Ed’s RTO is well-established, it has no obvious value proposition.
Why use their services? What makes them special, stand Out?… Questions he had no answer to.
When times are plentiful and the government coffers are overflowing, it can be easy to pick up work.
But competing against free is tough; and the other RTOs are in the same boat.
Ed went away with a screed of notes and a pep in his voice.
If your business could do with an outside perspective, book a Clarity call. We are here to help, and it’s at our expense; ideas without expectations.