The learning advantage

Kids’ tutoring is expected to increase as education and schools become increasingly competitive.

Learning opportunities

There is ongoing concern over numeracy skills among Australian adults and children, says Mathnasium director of operations, Samantha Aad. She points to data from a global study by the Organisation for Economic Co-operation and Development (OECD), which conducts a Programme for International Student Assessment (PISA).

Pre-Covid, there was evidence of declining performance.

“PISA 2018 shows the long-term change in maths performance reflecting Australia having one of the strongest decreases in performance among participating countries and economies,” says Samantha.

This is the latest data available, as OECD member countries and associates have postponed the PISA 2021 assessment to 2022 to reflect post-Covid difficulties.

There’s no doubt Covid-19 has had an impact on kids’ learning.

“The Covid-19 pandemic has affected children mentally and also in their learning. Technology used for online learning in parts of Australia has been both positive and negative, some students have thrived, while many have struggled and fallen further behind,” she says.

Business opportunities

On the business front, Mohan Dhall, Australian Tutoring Association CEO, says the tutoring market had a strong rebound from the Covid lockdowns up until late June 2021.

“The lockdowns from late June to early November set everyone back a lot,” he says.

“There is expected to be another rebound next year, but no one anticipated Omicron.

“There’s quite a lot of uncertainty about openings and closures.”

While the government’s jobs outlook data shows strong growth over the next five years, Mohan believes it is difficult to predict what this will look like. What he can point to is that every bricks and mortar location will need a really good online supplement.

“That’s been the biggest nuance over the last year and a half,” he says. “Franchised organisations did not have a great online offer, but that’s changed.”

Among the points potential franchisees should consider while reviewing a franchise business are systems and support.

“There will need to be systems in place that are robust in the event of parent complaints, how do you backtrack and find what happened? It’s harder online.

“Business owners will need to carefully look at what content is available and what content support there is – how much investment in ongoing development of curriculum is there? This is a significant driver of enrolments.”

Q&A WITH THREE TUTORING BRANDS

Kumon

What’s the demand for your services?

Up to December 2019, Kumon Australia and New Zealand student numbers increased every year for a decade, with an average annual growth of 3 percent. We exceeded 55,000 student enrolments in Australia and New Zealand in 2019. While our student enrolments are now at 50,000 in 2021, we are again experiencing growth and are confident we will catch up to our 2019 student numbers in the first two quarters of 2022, and then continue to increase afterwards.

Where will the growth come from?

Growth will continue to come from all metropolitan markets, but, in particular Sydney and Melbourne as they rebound after the impact of extended lockdowns in the last two quarters of 2021. We are also expanding into regional Victoria and New South Wales, such as Bendigo, Frankston, Wagga Wagga and Orange, as these are population growth areas.

What are parents looking for?

Extracurricular support in mathematics and reading, to develop confidence and self-learning abilities.

How do franchisees source new clients?

Kumon franchisees primarily source new students through local area marketing and an active social media presence. Kumon offers a national free-trial campaign twice a year during May and August. This event creates awareness in the community and can increase enrolments either directly or from participants telling friends about their positive experience. As a result of the free trials, June and September are among the months of highest enrolments at Kumon.

What makes your business model successful?

Kumon’s business model is kept very simple so franchisees can focus on preparation that relates to instruction of their students. The royalty includes the cost and free delivery of all worksheets and materials required. There is no additional marketing levy or hidden fees.

Tutor Doctor

What’s the demand for your services?

We are in high demand. The pandemic has caused the Covid learning loss crisis, with many parents turning to tutoring for help. In fact, the global tutoring market is expected to grow 16.1 percent by 2027. Tutor Doctor Australia has seen a 155 percent increase in student enrolments in 2021 compared to pre-pandemic 2019.

Where will the growth come from?

We are in an education crisis that will have a ripple effect for years to come – impacting students’ academic gains, wellbeing and economic prospects. In fact, a recent study by McKinsey & Company found that teachers in Australia reported students were on average two months behind where they usually would have been by November 2020.

What are parents looking for?

Parents, students and individuals alike are looking for private learning services that are tailored to their specific needs.

How do franchisees source new clients?

We have a combination of digital and grass-root marketing strategies that feed each other. Parent-child website structure to maximize SEO, pay-per-click, social media, community events, partnerships, etc.

What makes your business model successful?

Our service is highly personalised. A one-size-fits-all strategy isn’t what we do. Through carefully matched tutors and a creative approach tailored to each child, we help students confidently achieve their personal best through in-person and online tutoring. We are local. Our franchise owners are actively engaged in their local communities – building partnerships, supporting local schools and positively impacting the communities they serve. More than tutoring. From our X-Skills Program, equipping students with vital life skills, to regular session reports keeping parents up to date, to our recruitment process bringing in only the best tutors – we do so much more than homework help. 

Mathnasium

What’s the demand for your services?

Numeracy skills are not about abstract mathematics, they are required in many aspects of daily life. The fastest growing occupations require STEM skills which include a sound grounding in numeracy. Parents are acutely aware of this and are prioritising their child’s maths understanding and excellence.

Where will the growth come from?

Growth will derive from three fundamental areas: parents looking to help their children achieve foundational maths skills that they are currently behind in; parents who are keen for their child to become a top achiever in maths; and secondary school students who are looking for assistance and support with their school maths program and homework.

What are parents looking for?

Parents approach Mathnasium wanting to help their child catch up, keep up or get ahead in maths. Parents also want to ensure their children have strong numeracy and problemsolving skills, which are considered prerequisites for the workforce of the future.

How do franchisees source new clients?

Our franchisees source new clients by utilising a complete range of marketing tools, assets and promotional materials across the marketing mix. Mathnasium maintains a full range of ready-to-use marketing materials, including formats for online advertising, social media assets, flyers, display ads, direct mail pieces and brochures; as well as continued access to specialist marketing professionals.

What makes your business model successful?

Focusing primarily on children from kindergarten to Year 10, Mathnasium centres offer year-round learning through our maths-only learning centres. Each centre utilises the Mathnasium Method, an individually customisable educational curriculum that has been created through over 35 years of classroom experience and research. Its goal: teach children maths in a way that makes sense to them.

Mathnasium is a multiple award-winning franchise network. We offer a simple business model that is resistant to Covid-19 disruption with a successful online model to complement in-centre learning. Mathnasium has a fantastic support network and offers huge revenue potential to our franchisees, including the opportunity to open multiple centres and no maths or teaching experience is required. 

WHAT DOES IT TAKE TO SUCCEED?

Here’s what the Art and Non-Vocational Education in Australia report suggests: 1. Good technical knowledge 2. Convenience and easy access by public transport 3. Recommendation/accreditation from authoritative source 4. High prior success rate 5. Good reputation 6. Effective cost controls

Sources: *Art and Non-vocational Education in Australia, March 2021, IBISWorld gpseducation.oecd.org/CountryProfile?primaryCountry=AUS&treshold=10&topic=PI

COUNTING THE FUTURE

Small business and accountancy trends that can fuel Aussie enterprises.

Small business owners are the engine room of Australia and those that have survived the last two years are looking to fire up for 2022; what are the skills and trends that can help accountancy and business advisory franchisees stay ahead of the game?

More than the sum of their parts

Financesonline.com points out that accountants today are applying business skills, strategic thinking and tech skills that go beyond traditional accounting roles and turn a modern-day accountant into a business advisor.

And a 2020 survey by Sage revealed business advisory skills like growth modelling were considered essential by respondent accountants, who also ranked tech skills as the most important attribute for future business. Strategic thinking was ranked second, followed by communication skills, customer service skills, and understanding how to grow a business. 

What are small business owners looking to do in 2022?

Xero revealed what small business owners have been doing, and are likely to continue to do this year: • Simplify processes • Rebuild cash in the business • Rethink supply chains • Reduce debt • Improve digital efficiencies • Retain staff • Boost digital marketing • Introduce cardless payments

Source: Xero Small Business Trends 2022 based on surveys and reports across the US, UK, Singapore, Australia and New Zealand.

2025-2030 skills set

Skills accountants rate as crucial

51% 43% 40% 30% 29%

technology skills strategic thinking communication skills

Source: Sage US Practice of Now report 2020 customer service skills growing a business

Services accounting firms provide

Accounting/bookkeeping

Payroll

25%

Tax

Compliance

Advisory

24%

20%

17%

Assurance/audit

15%

Outsourced CFO

5%

Source: Sage Practice Now 2019

79%

Five for the future

According to the International Association of Independent Accounting Firms, accountants need to have their eyes firmly set on five aspects of business: • Agile accounting • Blockchain • Cryptocurrency • Hiring and retaining staff • Sustainability principles