5: Specialization An established provider has tailored its curriculum to local needs. Employers in each city want different things. Just in Texas, the major cities all want different skills (Hou, Austin, DFW, SAT) Teaching one tech stack doesn’t work everywhere.
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6: Brand Education is a big investment and people only do it once. A new entrant doesn’t have a trusted brand so they’re at a big disadvantage. The brand can’t be built overnight because it’s mostly built by successful graduates driving a flywheel of success for a bootcamp.
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7: Counterpositioning University chains (Kaplan, state schools, etc) and their extensions are in the “education” business. All tried to be in the business. All failed/failing. Good bootcamps are in the "make lives better by getting people jobs biz." Different mission.
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8: Cornered Resource Bootcamps are very people dependent on the student and delivery sides. There are also few people who know tech and can teach it, too. Especially in small markets, this is even tougher for new entrants to get great teachers.
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Bootcamps are a decent business but hard. Nobody is becoming a billionaire if they’re doing this business the right way by putting students first. But, it helps both people and a community. So, a noble endeavor I'm proud to be a part of.
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(If you’re interested in learning more about moats, the absolute best book on the subject is the 7 Powers book: https://7powers.com/buy-the-book/ ) (If you're interested in how we do this business right -- check out http://Codeup.com /
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Have you studied Kumon or the famous teacher phenomenon in Korea? Seem like fertile areas for strategy.
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Replying to @Molson_Hart @gocodeup
Both a bit. Would love your take on opportunities around those ideas.
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Unfortunately I don’t know. I just feel like other people aren’t looking there. Private schools in the Asian community have been around for a long time so there are probably some best practices. I went through your list of competitive advantages in an attempt to think of one you
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Replying to @Molson_Hart @gocodeup
Thanks! I do feel like education is so ripe for improvement. Last night I was thinking: "What if the $ that went into Quibi had been to upgrade education online instead?"
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I’m not qualified to make suggestions in this space but have you considered buying the real estate? Some thoughts about that: - coding schools increase prop values - this may be a generational opportunity in commercially zoned real estate - avoids wholesale pricing transfer
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Replying to @Molson_Hart @gocodeup
Good one! It's so much cheaper for us to rent now -- also more flexibility, which is important with a fast-growing company. Buildings, where we are (CBD), are trading at such low caps compared to rent that it's hard to make sense, frankly.
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Long term just keep one eye open for that perhaps. Caps are low but what doesn’t have low caps right now...ugh
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