Starting a Training Business - Things You Need to Know

Starting a Training Business - Areas to consider.

The following is a basic checklist you need to start with in order to make informed decisions and reduce the risk of failure.

What qualifications are required to start a training business?

There is no official list of qualifications needed in order to start a training business, and barriers to entry into this business are either low or non-existent.

• Attending training courses on accounting, marketing, sales and priority management will enhance your skills at managing the business.

• If you are planning to train in your business, then industry and official certifications on the subject will be important.

• If you plan to hire instructors, you can easily find expert trainers from different fields such as information technology, business administration, social sciences and psychology.

• It is possible for a trainer to succeed in the field without completing formal education when they have acquired skills and expertise through experience.

Even in those cases, attending short or vocational courses will enhance the trainer's presentation skills and abilities. What credentials are needed to start a training business?

• There are different views on the importance of formal education and credentials (certificates or degrees). Some believe that a formal education-related degree is necessary, while some find no correlation between formal credentials and the success of training businesses.

• Relevant credentials may help you develop needed training skills but you don't need formal credentials to start a training business as it is not required by law

What are the main things to consider in the preparation stage?

Finances

• You need to carefully plan what finances are required for the initial marketing and training resources, as well as understand the on-going costs.

Business plan

. A business plan is highly recommended—and a must if you intend to raise funds. Develop a business plan that reflects your business mission and defines your business objectives, competitive advantage and potential market. The purpose is to define the realities of your soon-to-be-business.

Market research

• Talking to trainers, potential customers and other businesses in the education industry will help you understand the market trends and demands, so you are not tailoring a service in an area where demand is low or non-existent.

Marketing

• There is no point building a great business that no-one knows about, so marketing is critical to business success. Focused marketing effort will determine the growth and success of your training business, so think seriously about all possible marketing avenues. There are different methods ranging from free, such as word of mouth; low cost, such as internet marketing and branding; to expensive, such as advertisements through media channels.

What skills are needed?

• Many training businesses fail because owners underestimate the type of skills needed to run the business. Most assume that being a good trainer means you can run a good training business. The most critical skills are the business skills to run, manage and market the training business.

•	 If you plan to train in your business, then in addition to business skills you need training process skills which include delivery and expertise in the relevant content areas and subject matter.

• Needless to say your knowledge and presentation skill levels need to be very high. Operating as a generalist or in a niche?

• Before starting a business you need to decide whether you will be operating as a generalist or in a niche. If you opt to operate as a generalist it might give the impression of lack of depth or expertise as one cannot specialise in all fields. Specialising in a selected area allows you to create an image of expertise in the market.

Franchising

How does franchising work in the training world?

• In a franchising model you usually pay an upfront fee to a parent company and ongoing royalties. The parent company provides basic training on running the business and ongoing generic marketing. You may also receive some exclusive territory where you have to provide the training. Sales and marketing of your offering and managing the day-to-day operation will still be your responsibility, as well as delivering the training and running the business. Should purchasing a training franchise be considered?

• If you have limited management and finance expertise in running a business, franchising is a good way to start the business with a ready model. You will still need to consider the franchise start-up costs. Is it worth it?

Can a training business be profitable?

Absolutely. But as is the case with any business venture, preparation is key. Start with some questions:

• Do I possess the right set of business skills?

• Do I have sufficient resources and initial capital?

• Does my business plan demonstrate the potential to run a profitable business?

• Am I committed enough?

On the last point, you need to consider that successful and profitable businesses did not start that way. Sleepless nights, stress, long working days and missed kids' games are common things in the life of the training business entrepreneur. A requirement for multitasking and managing multiple priorities—customer expectations, resource management, hiring or contracting staff, arranging facilities, financial reporting and many more—make for a challenging time ahead. If you have decided to go ahead and take the first step, there is of course the good news—your opportunity to build a set of highly desirable skills will be unmatched and if your training business can establish you as an expert in your chosen field, it can turn into a very rewarding and profitable venture. There are a number of tests to check your entrepreneurial flair and many books have been written to advise potential entrepreneurs on the pros and cons of considering a business. Like any business, the training business is not the right move for everyone—the better informed you are before you make a decision, the higher the likelihood it will be a good one.

Salah Banna is the author of the book ‘‘Crush the Competition with Outsourcing: Everything You Need To Know About Outsourcing. The book was published and released in October 2012Salah Banna is the co-founder of Training Choice—an international training facility and training outsourcing company based in Australia. He started teaching during his Master's degree and, for the last 30 years, has been developing and implementing better training strategies.Email: salah@training-choice.comhttp://www.training-choice.com