I need opinions

[As-One]

I would like to get into international students consulting business in downtown, Vancouver. I know that there are millions of those companies exist; however, I would like to make my company different by not only introducing ESL schools but also all schools in metro Vancouver. I would like to connect students not only ESL but also regular curriculum. In addition to this, I would like to recruit demography of family and baby boomers which are very good target.
Anyway, should I still get into this business? or should I reconsider because there are so many competitors.

[akula]

hi, my friend owns a consultancy for international students. it's a tough business. are you familiar with what these agencies do? a "consulting business for international students" doesn't really engage in "connect students not only ESL but also regular curriculum". generally, these consultants you're talking about, are registered migration agents who help people get visas. are you a registered migration agent? it's an important question because when you consult with international students, the majority of your work will be in dealing with the Immigration Department.

[As-One]

Akula, thank you for your reply. I did not know you are located in Sydney.
I thought consultat what I explain was connecting students to schools, I didnot know what you said was the job description. My sister-in-law was doing this business for a while and closed but I want to continue what she was doing with my wife. I don't think she was doing a lot of visa work but connecting students ESL students.

[akula]

Akula, thank you for your reply. I did not know you are located in Sydney.
I thought consultat what I explain was connecting students to schools, I didnot know what you said was the job description. My sister-in-law was doing this business for a while and closed but I want to continue what she was doing with my wife. I don't think she was doing a lot of visa work but connecting students ESL students.

ok..well sure let's do a quick back of the napkin test to see whether "connecting students to courses" is a good business to get into..

1. Barriers to entry: Do you need a special licenses? Is there a 500 pound industry gorilla? Are there high set up costs?

For the sake of argument let's say the answers are no, no and no. This makes the biz easy to get into...which is good, but it's also bad because it's gonna be hard to defend your market share.

2. Scalability: Can you realistically grow this venture to the point of meeting listing requirements.

Probably no, I'm not aware of too many listed businesses that can scale in this industry...because of high marginal costs. For example, unlike a software company, every time you take on a new client, your cost base is gonna increase by a lot.

3. Profitability: Can you develop a high degree of differentiation based on technology or other kinds of intellectual property for the purpose of charging premium prices?

Probably not. Consulting is a services business, and new competitors will probably have to be heavy discounters.

...so...I mean there is a lot of other factors to consider such the characteristics of the market and the management team...but over all, from a competitive advantage and financial aspect, this venture doesn't seem like a brilliant business opportunity..

I dunno what else I can tell ya...(?)

[Brainy]

I'd say talk to your Sister-In-Law and ask her specific questions pertaining to the business at hand. Seems like if she ran the business, she'd know a bit about it. You should also do tons of research, like with any business, jumping into a business with only an "emotional high" is a recipe for disaster.

Read up on the business, research large and small competitors, and also investigate just how they operate their services. So many folks start businesses with some sort of "feeling" that it will succeed, and actual truth is that most new businesses fail. A very high percentage.

My dad always told me to "keep my day job" while pursuing a "business opportunity", that is until I felt that I had the talents and skills necessary to jump in at it full time. ~