What is lacking in existing business model of edtech app?
Though for some the EdTech app business model sprouted with new users at a scale and in the most cost-effective method as possible, this growth only solved a part of the problem.
The problems that led to the failure of EdTech are:
· Lack of Sustainable Plans
· New Business Models
· Poor Monetizing Plans
· Scaling Quickly
· Long-term Returns
This is because most of the EdTech businesses are based on expansion-first model and then revenue model is added to the business.
In case you are thinking to embark EdTech as your next business venture, of course it is the right choice but the challenge for the entrepreneurs involves the execution of the monetizing strategies that will allow them to build long-term relationships with their customers.
And historically speaking, most of the EdTech app business models have failed to achieve the kind of response that was expected to be attained.
Another problem that stands as a wall in the success of EdTech is the lack of innovation.
The aspiring businesses aim for the EdTech business when they witness other businesses failing badly, with a vision to scale up the standards of the business with strong MVPs but still fail terribly.
When you are set to building a disruptive business, the requisite also consists of a transformations on a large scale which will contribute to the unique selling point of the business other than making a few small amendments here and there in the ongoing EdTech vicinity.
This way the business can attract more meaningful number of users and growing an Edtech app business model with long-term sustainability.
As passionate as these entrepreneurs are about trying to solve the user’s problem by introducing alluring features by being extravagant in their efforts, their mistake is they don’t spare enough time experimenting with and innovating around new monetizing strategies.
These entrepreneurs spend too much time in deciding the features of their app or website and user acquisition, that they get little or no time in connecting the dots with the business model by the perfect revenue model.
In a nutshell, when there is no renovation in the business plan with respect to the revenue plan, and the expansion is done too quickly by relying upon the long-time returns from the business, the sustainability is affected adversely.