The global education
technology market share crossed $17.7 billion in revenue in 2017 and
is expected to grow to $40.9 billion by 2022, yet many edtech companies don’t make
it. The trick is to sell the business before it fails. Let’s look at
some signs that it might be time to sell your edtech company.
You have run out of steam
This is not
an uncommon situation. Setting up a startup from scratch, steering it through
funding, finding the right co-workers and fine-tuning your product or service
all takes an inordinate toll on a founder’s personal resources. As Green
Wedding founder Kate Harrison
puts it: Which do you have more of, passion or exhaustion? In the beginning,
passion carries you through the many personal sacrifices founding a startup
requires, but there may come a time that you may realize that you are too
exhausted for another sleepless week.
The company doesn’t need your skill set anymore
It so often
happens that the person who comes up with a brilliant product idea can carry
the business in the beginning through pure passion and vision. But later as the
business grows, the business requires additional skills that the founder might
not have or might not be interested in acquiring. For example, when the company gets to a
certain size, it will require leadership in different departments or areas.
Some founders can adapt to these changing conditions, others are better off
finding a new idea for a new startup.
The market is changing
started your business, the market was ripe for a certain product, but the market
trend is changing and it looks like your product or service will become inconsequential.
This is an obvious point, but if you don’t keep your eyes peeled for changes in
a fast-paced market, you might be caught with a company that has lost its
market edge. An example is Kno,
originally known as Kakai Inc. which only lasted four years. The company’s tablet
flopped when Apple took over the tablet market and the company’s shift to an
app-based textbook platform failed to garner interest.
Your business model is failing or not attractive
must have a viable business model to succeed. Simply put, this means you need
to generate more income than costs. It sounds very simple, but it is not at all
simple to achieve. One of the reasons the online tutoring marketplace Tutorspree
failed was that once the tutor and student met up with each other, they were
able to meet up and work together without the aid of Tutorspree. This meant the
company lost out on its share of the fees.
other hand, you might come up with a viable business model, but you might not
want to run your business like that. For instance, setting up a call center
might boost your sales, but you might hate the idea of running a call center.
The cost of a winning team might be too high
company that depends on tech can’t compromise on quality and quality tech
professionals come at a high financial cost. If you can’t afford the professional
expertise you need to turn your educational technology idea into reality, you
may be on a losing track. Unless you can convince top people you work for next
to nothing, it might be time to sell.
there are many reasons for a founder to sell the company and move on. It might
be a difficult decision, but it may also be the beginning of a new edtech adventure.