Market research should never be underestimated; especially when you setting up an RTO. As a new business owner who is looking for a successful new business, you need to conduct regular market research to understand your potential target market, identify any consumer problems and pinpoint your realistic competitors.
Market research has always been a part of the key fundamental of setting up and smoothly running a business. Apart from being the simplest way for entrepreneurs to keep up with market trends and maintain a competitive edge, it is mandated by compliance.
The RTO Standards require market research to be carried out at various stages of a business life cycle, from pre-launch of your RTO and continuing on beyond. This comes from good business sense. Having a greater understanding of your marketplace from the very start will enable you to create a sound business strategy to establish and grow your brand into one that’s better than the competition.
Researching your RTO and industries in need.
The foundation of a successful RTO service is the demographics that it appeals to. Who are the people you will attract into your RTO? Where do they live, who do they interact with; are they old, young, men, women; do they enjoy certain activities? Then you need to know what do they want from a training provider? When? Where? How? Who?
Whether you’re a startup or an established enterprise, there is never a period of time in your business life cycle in which your demographics are no longer important. Market research lets you answer the questions that you need to ask to ensure your product or service has a customer base.
Working out what's best for your RTO
When setting up an RTO and trying to decide what training is needed in your area, there are some valuable online resources in the following links:
Health Care and Social Assistance is Australia’s largest and fastest growing industry, employing over 1.5 million people. It covers health services like hospitals, GPs, dental and ambulance services, as well as services like child care and aged care. Many workers are female and part-time work is common. Education is important if you want to work in this industry. Jobs like nurses and doctors need a university degree, while child carers and aged care workers need VET qualifications.
In the news recently the Morrison Government tackled urgent workforce needs with a new, fast-tracked training qualifications for the information and communications technology (ICT) sector.
The training reflects the need for Australians to learn the latest in digital technology and cyber security to meet current labour demands.
“The new training products will support the delivery of cyber security and digital skills needs training across multiple industries.” said The Minister for Employment, Skills, Small and Family Business, Senator the Hon Michaelia Cash.
There are many places to find out where the latest demands are. The following websites provide reports and information. I also recommend you contact your local CCI.
Research your RTO business to be successful
Never has a business been able to succeed without conducting a thorough market research of their audience and the RTO services they intend to offer.
Carrying out market research when setting up your RTO business helps measure the risks involved with implementing various decision-based actions.
Your detailed research for your business idea will enable you know whether to act on those decisions or not. If your market research provides significant evidence of success, you must go for it. However, if your market research doesn’t provide enough data or confidence, you mustn’t take the risk.
As a recap, for registration of an RTO, if you intend to deliver training to students outside Victoria and Western Australia, or to international students, you will need to register with the Australian Skills Quality Authority (ASQA).
If you intend to deliver training only to domestic students in Victoria, or in Victoria and Western Australia, apply to register with VRQA. You can then transfer to ASQA at a later stage if that is something you wish to do.
Refer to this website for the process and any additional approvals for your scope you intend to have for your RTO.
See more RTO Mentor posts on setting up an RTO
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