85 - How to Build an 80% Margin, $3M Online Trade School on 2 Hours/Day, with Hector Resendez
Nov 18, 2024
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Hector Resendez, the founder of an online trade school leveraging VR technology, discusses his innovative approach to vocational education. He reveals how his school provides immersive training in trades like HVAC and plumbing, using federal grants to finance student education. Hector shares insights on scaling his business to over $200,000 monthly with high profit margins and tackles the impact of WIOA grants on funding opportunities. He emphasizes the importance of aligning courses with job market demands to effectively address the skills gap in the trades.
Hector Resendez leveraged virtual reality to revolutionize online trade education, making it more accessible for blue-collar workers through innovative technology.
The online trade school successfully utilizes federal WIOA grants to provide vocational training with high profit margins and minimal fees for students.
Deep dives
Innovative Online Trade School Model
An online trade school model is described, offering courses in fields such as HVAC, plumbing, and electrical work. This approach challenges traditional notions that trades education must occur in person, especially with the pandemic's impact leading to a shift toward digital learning. The unique selling proposition hinges on the ability for students to learn theoretical knowledge online, even if they need to complete practical assessments in person. By leveraging virtual reality technologies, the school enhances the learning experience, catering to different learning styles while keeping costs low.
Utilizing Government Grants for Student Enrollment
The school benefits from government grants that cover substantial costs for students, making vocational training accessible to low-income individuals. These grants, particularly the WIOA program, provide funding directly to the schools rather than the students, simplifying the financial aspect of enrollment. This unique funding model allows the institution to avoid charging students upfront fees and enables it to provide laptops for remote learning. Through strategic marketing outreach to nonprofits and shelters, student enrollment has increased significantly, utilizing these grants as a primary revenue source.
High Profit Margins and Efficient Operations
The business model reveals impressive profit margins ranging from 80% to 85%, demonstrating a highly efficient operational structure. The school purchases curriculum materials at low costs, allowing for substantial markup when sold to students. The streamlined enrollment process and a significant reliance on automation minimize administrative costs, making the process both time-efficient and cost-effective. This profitability stems from the strategic acquisition of students via existing relationships with nonprofit organizations rather than traditional advertising methods.
Future Growth and Expansion Opportunities
Plans for future growth include exploring accreditation routes to expand beyond Texas and potentially selling the business for profit. The entrepreneur expresses interest in consulting and sharing the successful model with others looking to start similar institutions. This expansion might involve navigating different state regulations and potentially forming partnerships in other regions. The focus remains on continuing to help individuals gain valuable trade skills quickly while maximizing the business's operational efficiency.
Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Hector Resendez (https://x.com/TS_Secrets)to explore his journey in building an online trade school that’s changing the way blue-collar trades are taught. Hector shares how he used VR goggles to provide immersive training for trades like HVAC and plumbing, all while leveraging federal grants to fund student education. We discuss how Hector scaled to $200,000+ per month in revenue with extremely high profit margins, the impact of WIOA grants, and how this innovative model is helping fill the skills gap in trade industries.
Questions this Episode Answers:
How did Hector Resendez build an online trade school using VRgoggles?
What is WIOA, and how can entrepreneurs leverage government grants for business growth?
How did Hector scale to $200,000 per month in revenue while keeping margins high?
What are the challenges and opportunities in teaching trades like HVAC and plumbing online?
How can entrepreneurs tap into the education sector with innovative training models?
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Love it or hate it, I'd love your feedback. Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts. __________________________
00:00 Introduction to the Online Trade School Model 03:07 Understanding the Grant System and Its Impact 05:56 The Evolution of the Business Model 08:51 Customer Acquisition Strategies 11:48 Curriculum Development and Accreditation 15:02 Operational Insights and Business Growth 17:55 Challenges and Future Aspirations
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