- [Narrator] The education industry
is full of business opportunities
which could improve the significant problems
throughout the system.
Let's look specifically at what these problems are,
how entrepreneurs have already begun addressing them,
and how an entrepreneur like you,
could contribute your own ideas.
Since 2007, the National Assessment of Educational Progress
has reported zero progress in America's education system.
Educational productivity of the late '90s
and early 2000s posted record high marks.
But now it's been almost 15 years
since our national stagnation began.
How do our students fare?
They struggle to thrive in a world
they haven't been remotely prepared for.
During the industrial revolution
students were processed in bulk like a factory
to prepare them for relatively simple futures.
Over the years, innovation and expansion on these systems
have been suppressed by the pressure
from standardized performance markers.
The US can't afford to keep making zero progress,
since this stagnation leaves us prime to be surpassed
in the fields of medicine, technology, global leadership
and even happiness by players across the oceans.
Schools in the US are now spending $8.4 billion
on ed tech annually in an attempt to keep up.
But $5.6 billion worth of investments are completely unused.
One student in need of a tailored solution was Amir Nathoo.
Having grown up in the mid '80s,
coding and computer science classes were pretty rare.
At age five, he dabbled with basic coding
on an eight bit computer.
Amir's interest grew from that little seed
but he had no one to guide his passion.
- And then they found me a mentor outside of school
when they realized my interest.
And that more than anything has influenced my career.
- [Narrator] The organization he started decades later
Outschool offers 50,000 live online classes
and has made $45 million in teacher earnings
over the past three years alone.
Outschool now inspires the world's learners
by providing virtual individualized learning activities
led by a teacher of the family's choosing.
Launched in 2017 by Amir Nathoo, Nick Grandy
and Mikhail Seregine, Outschool allow students to accelerate
their learning and discover topics independently.
- Learning can come from many different sources
and that includes professional teachers
but also includes amateurs and mentors.
Teaching should be everyone's second job.
- [Narrator] As the country attempts to break free
of the mold, especially right now,
communities search for more voices to actually
bring those changes.
How can your voice make a difference?
Entrepreneurial minds are uniquely positioned
to act on these problems, especially when they stay engaged
in their communities and listen to real needs.
How can we begin?
By identifying those pain points.
There isn't one sweeping answer
because there isn't one problem or one type of learner.
When thinking about what you can do, ask yourself
what topics could students be shifting their focus to?
How do they best learn?
What are they doing when the school day is done?
How do factors like diet and exercise affect learning?
All of these problems are opportunities
that require active solutions.
That's just the start.
Homeschooling parents need assistance
with difficult subjects.
Students need extracurriculars
and summer programs that can train and occupy them
in productive ways.
And more traditional schools need thinkers, tools
and technology to help them adapt.
- We see so many problems and opportunities in education
that we try and tackle everything at once.
And startups know that you have to start
in a very, very small way in order to make anything happen.
And action is far more important than big plans.
- [Narrator] Trade and career skills are a solid example.
Research has made clear that career readiness
is a vital component of education.
However, only one US state requires students
to complete a career readiness course.
Consider selling bundled lessons on real world skills,
which 81% of recent high school dropouts
say would have kept them in school.
What skills would help students?
What else do they want to learn?
Consider offering subjects that traditional schools
cannot or do not have.
Home economics, nature activities
and communication workshops can allow children to exercise
their brains while having fun.
The amount of potential here can be daunting
but here are the five steps to actually start
a business of this industry.
One, research.
By watching videos like this
and diving into studies, you're already doing it.
Nice job.
Canvas your community to find needs nearby
and identify problems you already have experienced
navigating.
Explore these rabbit holes too,
which can help you get to know the industry better
and learn how different sectors can be served.
Social-emotional learning, self directed classes,
e-learning systems, career guidance, college alternatives,
unique internships, school nutrition,
understaffed industries, inequality with access to tech,
afterschool programs near you, education in daycares.
Multiple studies show that nutrition,
social-emotional learning, less lectures,
and more contribute to performance.
Two, rough out a business plan.
We have templates on our website to keep things quick
and easy.
You'll begin narrowing down your audience,
discovering your voice and brand,
making decisions about monetization models
and sketching out your business structure.
Business plans are considered living documents,
circle back to it as you plan and grow.
Three, brainstorm some names.
This isn't just vanity.
It will need to be decided before registering your business
or even to secure funding.
Names are also a great rallying point to keep you excited,
and gauge others interest.
Make sure the name has an available domain
and social media accounts.
Here are some ideas we generated
just for you to get things rolling.
Four, when your name and branding is settled,
make it official by registering your business.
We generally recommend an LLC,
but check out our guide to discover the other options.
Five, get your licenses, permits and insurance.
In homeschooling and private settings,
there actually aren't formal licenses in order to create
extra materials or courses in most states.
Each state does have their own guidelines
when it comes to preparedness standards
or offering class credits.
Partnerships with secondary schools,
established organizations or brands may help you
sell your services as there'll be seen as more credible.
Essentially show results from your students year after year
and make parents happy.
Double check with your township, city, state,
smallest to largest to make sure there are no other
certificates you may need in your area,
since every location in the US has totally different rules.
Think about who needs your support the most
when thinking about starting your business.
On the Outschool platform, 500,000 learners
from over 200 countries, unite in small diverse groups
led by one passionate teacher to unearth shared interest.
What can you pass on to the next generation?
Small businesses are the lifeblood of every community.
We want you to be passionate and prepared
for a lifetime of entrepreneurship.
If you're looking for more inspiration
we made some free tools to generate ideas
find a name and form your business.
Find free resources and guides at truic.com.
(upbeat music)