The Fall of WeWork
It's difficult to recognise the old WeWork from their recent news coverage. A company once hailed as ‘the Future of Work' is now plagued with reports of huge layoffs, allegations of reckless spending, and even potential misconduct.
Looking at this sinking ship from a distance, it is easy for any business owner to shrug off concerns that this could happen to them. However, in order to make sure you avoid the same trajectory as WeWork's ex-CEO Adam Neuman, it is important to understand what you can take away from his story.
How does this apply to my tutoring company?
Any frank analysis of the options for growing a tutoring company must begin with an honest appraisal of the tools at hand. Understanding what options are available to a fledgling or mid-sized tutoring company is key to expanding market reach.
In theory that list is limitless. Tutoring companies like all other companies benefit from forays into sales and marketing theory, but the specifics of the industry add a thick veneer of complexity to each.
Sales techniques are particularly hard to implement. Few people have ever received cold calls selling tutoring services, nor would we expect positive reactions if they did. The personal nature of the industry and the importance of trust means salespeople must develop a soft touch and a calm manner. This is also a difficult trait to foster without years of experience.
Marketing improvement is certainly the more attainable of these two approaches. However, it can be difficult to justify a big marketing spend. 39% of marketers say proving the ROI of their marketing activities is their top marketing challenge. Without the scale which justifies mass consumer marketing through billboards and TV ads it is easy to be left confused and directionless. Social media, one of the ‘go-tos' for many businesses can feel equally bewildering. Choice overload and poor aim often means marketing campaigns feel cumbersome.
Unfortunately, there is no easy answer to business success. However, there is one simple tool anyone can implement, which has been interwoven with many of the key business failures and successes of the last decade.
So what is the solution?
The answer is astoundingly simple: keeping track of analytics and KPIs. Choosing to overlook or even ignore these is one of the most common mistakes made by business owners. Analytics gives you an overview of your business, and allows you to measure success against actual quantifiable data. Losing track of numbers, which means losing track of your business. It is that simple. The failure of WeWork can be directly directly linked to this exact mistake.
So what caused the company, once seen to be the most successful start-up of its time, to lose 80% of its value in a few months? The answer is straightforward: reckless thoughtless spending. Following the $7.5 billion investment made by Softbank, CEO Adam Neuman completely ignored any prior business direction, and carelessly invested in anything he fancied, from wave pools to preschools. Any business not held accountable by their own KPIs and analytics, can make the same mistake.
Without analytics it is also difficult to measure success. These numbers are the single most important tool for reshaping your business, allowing it to be more streamlined, and ultimately more successful. Modern businesses such as Uber use anonymous data from their huge user base to understand their habits and what features they prefer. Uber closely monitors the star ratings of their drivers and users. By keeping close track of these KPIs they are able to make sure their drives and users are reliable, and are able to make sure their business continues to have a good reputation.
But how does any of this apply to my tutoring company?
Everywhere you look, studies consistently find that business owners do not look at their analytics. However, the reality of being able to put a numerical value of the successes and failures of your company should be a blessing for any business owner.
Access to analytics and KPIs can also be much simpler than you expect. A clear, digestible view of the key numbers in your business, does not have to be a big investment decision. Tutor Management Software can give you crucial analytics to help run your business smoothly and effectively.
So what can Tutoring Management Software offer my business?
1. An overview of all aspects of Communications Omni-channel marketing strategies have also been shown to increase all aspects of your business success, from sales to engagement and even retention. However, engaging users across multiple platforms can be time consuming, and difficult to monitor.
Business owners are often faced with the challenges of having to monitor different parts of their marketing on different platforms. Platform-to-platform variations means it is difficult to measure overall marketing success. However, Tutor Management Software can offer a solution, which allows you to view important numbers across multiple channels of your marketing campaign.
2. An Ability to Keep Track of KPIs Identifying key metrics for your website is important as it allows you and your team to identify the failures and successes of your business. There are endless suggestions for what KPIs each business should use and it is important to take your time figuring out what metrics will suit your business models, aims, and targets.
Once you have identified these figures, having a single place you can monitor them in real time, means you know exactly how your business is performing on a day-to-day, month-to-month or even year to year basis. A great way to do this is by creating a dashboard which you can view regularly.
3. Tutor Accountability A star rating system is something any business who offers a service to a client, can implement. For tutoring companies having an automated review feature can allow you to keep track of the quality of your tutors.
This is a simple metric, but it can help boost your ROI. Indeed, studies have found that there is a direct correlation between higher star reviews, and better conversion. Having these ratings displayed on the front end of your website ensures that potential customers know you offer a quality service.
So what do I do next?
Well, we're biased, but we think that TutorCruncher is the best tool for managing a tutoring business. As the premium provider in the marketplace TutorCruncher offers all of these tools as well as many, many more, to help you manage your business. It offers intelligent, wide ranging features to serious business owners and doesn't condescend its user base by limiting functionality. TutorCruncher offers a two week free trial which does not require you to add any payment details. By trying it out you have nothing to lose and potentially a lot to gain.
Regardless of what choice you make about management software, we hope you will weigh the options carefully and pay due consideration to the importance of analytics in your business decisions. No business owner wants their business to become the next WeWork, and with some rigorous practice of well informed analytical pragmatism they don't have to.
This article was by Paula Antalffy on behalf of TutorCruncher Ltd. If you would like to check out TutorCruncher and explore a free trial of their software please click here to view their website.