Summary

This business offers a profitable and scalable business focused on LEGO®-based STEAM and robotics education for children and teens. Using LEGO Education™ materials, the business delivers dynamic, hands-on learning experiences that help students build critical skills in engineering, problem-solving, and creativity.

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How does the business operate on a daily basis?

From an administrative standpoint, the owner oversees the daily management of invoices and handles the WhatsApp and social media accounts related to current classes and potential new leads. This typically requires 1-2 hours of admin work per day.

The business offer 5-10 one-hour classes each week, all of which are facilitated by their trained contractors. The classes are primarily hosted by individual parents with whom they have formal agreements in place.

Additionally, they maintain ongoing communication with individuals interested in joining or hosting new classes in their area. Once they have sufficient client interest, a suitable host, and an available facilitator for the desired location and time, they proceed with launching new classes.

What Advertising/Marketing is carried out?

We manage paid advertising campaigns on Instagram and Facebook that effectively direct interested individuals to their WhatsApp account and website.

What competition exists?

Their primary competitor in the weekly extramural space is a franchise based on early childhood development concepts. Customers have reported that their lessons have superior content. Their business model is also more flexible than the competitive franchise based system.

How could the profitability of the business be improved?

Improving the profitability can be achieved through several strategic actions that enhance revenue streams and optimize operational efficiency. Here are some key strategies:
1. Expand Geographic Reach
2. Offer Tiered Pricing for Classes
3. Increase Event and Competition Engagement
4. Increase Marketing & Branding Efforts
5. Operational Efficiency
6. Collaborate with Schools and Education Systems

Give a breakdown of staff/ functions/ length of service?

The business currently has ten facilitators, each of whom has been with them for 2 to 3 years.

Do any have management potential?

Most of their facilitators have the potential to be trained in managing the administrative responsibilities related to their classes.

How involved is the Owner in running the business?

The marketing and administrative aspects of the business are fully managed by the owner (between 1 and 2 hours admin per day), while the teaching of workshops is carried out by their facilitators.

When does the current lease end?

The business does not require premises, as their classes are primarily hosted by parents. This arrangement is governed by an agreement signed between the hosts and the business.

What are the trading hours?

Their weekly extramural classes are held Monday through Saturday, between 9 AM and 5 PM, with each class lasting one hour.

What are the main assets of the business?

The primary assets used to facilitate the workshops are the LEGO sets. In addition, the business also have a monitor, laptop, phone, and supplementary training equipment.

Strengths?

1. Flexible business model with low overhead.
2. Minimal asset depreciation.
3. Limited competition in the sector.
4. High contractor retention through competitive wages and commissions.
5. Strong supplier relationships.
6. Established customer base.
7. High ROI on advertising efforts.
8. Steady new customer interest.
9. Profitable, low-overhead classes with strong demand for ages 7-12.

Weaknesses?

1. Class size and frequency limited by available sets and facilitators.
2. Facilitators are not full-time, affecting retention.
3. Owner’s time constraints limit follow-up on new business opportunities.
4. Limited preschool class offerings due to equipment needs.
5. Current robotics model restricts simultaneous use of sets in multiple classes.

Opportunities?

1. Improve social media engagement with more relevant content.
2. Expand facilitator training, particularly in Robotics, to increase class capacity.
3. Invest in additional equipment to enhance operational capacity.
4. Growing demand for online workshops in new locations, especially Cape Town, Pretoria, and Centurion.
5. Opportunity to host workshops at playschools, birthday parties, and events for extra revenue.
6. Demand for an advanced robotics curriculum presents a development opportunity.