Nikonomics - The Economics of Small Business 205 - The $3 Million Online Trade School Model: Solving the Labor Crisis with Hector Resendez
Jul 16, 2025
Hector Resendez, who runs a $3 million online trade school with impressive 30% net margins, shares his insights on solving staffing shortages. He explains how companies can utilize government grants to train employees, even revealing how a dog grooming business generated an extra $300,000 by becoming an Eligible Training Provider. The conversation highlights the On-the-Job Training program, providing 50% wage reimbursement for new hires, and discusses innovative solutions to address labor bottlenecks in trades like plumbing and healthcare.
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Dog Grooming School Success
- A Texas dog grooming business was a month out on bookings and couldn't find technicians.
- They started a grant-funded school to train their own staff and added $300,000 in revenue.
Use OJT For Wage Reimbursement
- Use On-the-Job Training (OJT) programs to get up to 50% reimbursement of employee wages for 90 days.
- Employ graduates from grant-funded training programs to save on wage costs and improve hiring quality.
Grants Aid Diverse High-Turnover Roles
- High turnover roles like healthcare and IT sales benefit greatly from grant-funded training.
- Training helps businesses overcome labor shortages and staff growth barriers.