Being one of the largest higher education systems in the world, franchisors are further developing in the education system.
One of the questions that bother edupreneurs after they are ready with their idea is “How to convince investors to invest in the idea?”
The education industry is emerging as one of the most sought-after sectors for investment. With more than 1.4 million schools and more than 36,000 higher education institutes, this industry has a lot to offer to entrepreneurs.
Every investor has a different mindset, which complicates things a bit for the education franchisors. Some base their decisions on facts whereas others incline their ideas on the basis of the trends that shape the industry.
Some are risk takers, while others prefer to play safe. But there are a few things which every investor has in common.
Here we will take a shot at what investors actually look for:
As an edupreneur, you should look from their perspective if the business or the idea is worth an investment.
You need to convince your investor as well as yourself that the business has the potential to return a healthy investment in a particular time span.
Investors too are looking for the same thing as to where they can invest their money and give the initial push to the business.
A close look at the investor’s past investments will help you determine if your business idea matches the investor’s criteria to invest in it.
Purposeful and interesting ideas attract investors. Educators could come up with some new concepts which can grab the eyeball of investors, leading to the investments for your education business.
Investors are very selective about the franchisor’s ideology and the confidence in the idea to put in their money. A smart investor would never overlook a potential business idea if he/she sees the confidence you show in it.
Investors look for businesses which match their scales and goals. Market size matters to investors as they are willing to know how big your brand is, how it is going to create a stir in the existing market.
A unique concept can cause disruption but the impact is what matters and how long is it going to last. The market is full of vivid ideas but the idea should be able to withstand the resistance and challenge the existing problems while holding its roots in long-term, only then an investor will be convinced to pour his money into it.