The Upside of the Education Business

If you’re reading this, there's a good chance you have a sense of the opportunities available in the US education market. It’s not news that the United States is the largest economy in the world, despite growth in burgeoning markets. If you’re guessing that the US education market is equally substantial, you’d be right. Not only are there 57 million students in K-12 public education, it’s a sector that supports 3.5 million public employees. These students and adults report to 14,000 school districts across the United States and these districts support 91,000 school buildings. By most accounts, it’s a $2+ billion sector. Let’s simplify it this way: if you can capture .1% of the US education market, you’ve likely arrived at profitability.

There’s no secret, special sauce, or marketing gimmick needed to succeed in a market with such potential. It takes an informed strategy, correctly timed tactics, and purposeful execution. Ensure these are aligned and it’s a snap getting to .1% market share and beyond!

Let’s simplify it this way: if you can capture .1% of the US education market, you’ve likely arrived at profitability.

That sure seems like a manageable number.

To get there, it’s essential to have an understanding of the market. It’s not enough to have an amazing product, great marketing, or a killer sales person. Here’s what is important: understanding the budget and purchase cycle, tailoring activities to coincide with the cycle, and making sure you’re engaging the right audience. Let’s briefly take each in turn...

The Cycle

There is a budget and purchase cycle in the education market. Every public school receives public dollars based on the same basic cycle.

1. Schools plan.

2. Budgets are approved.

3. Money is spent.

4. The cycle repeats.

If you want to capture any share of the market, it’s imperative that you understand what happens when. If not, you’ll be wasting time and money. If you’re not involved in the budget process, you’re being left out. Once money is budgeted, there’s typically very little discretionary money--at least not enough to make a difference to your bottom line. To maximize revenue impact, it’s essential to do the right thing at the right time.

The Activities

Once you understand the budget-purchase process, it’s a logical next step to align your marketing, sales, and finance activities to the sector’s repetitive cycle. Are you building pipeline at the right time? Are you piloting products at the right time of year? Are you expecting revenue when schools typically pay? The lesson: make sure your activities and expectations are aligned with the informal and formal ways schools do business.

The Audience

For anyone who’s spent any time in sales, no doubt you’ve heard some variation of: ‘We don’t have any money. Well, there’s always money in the education market. School districts receive money every year and if they don’t spend it, they have to give it back. So when someone says ‘We don’t have any money, the immediate reaction should be: ‘I’m not talking to the right person, provided your timing is right (see above).

There’s no secret, special sauce, or marketing gimmick needed to succeed in a market with such potential. It takes an informed strategy, correctly timed tactics, and purposeful execution. Ensure these are aligned and it’s a snap getting to .1% market share and beyond!