Simple 1% improvements for your RTO success

1. The way how you communicate to others.

Often one of our biggest hurdles is the way we communicate ideas to others. Yet this is core to our success. Communication in this instance is to staff, colleagues, and potential clients. If we make improvements to that communication, we will see a greater take up of our services/products. Try changing just 1% – one small change each week.

According to recent studies, 51% of customers will not repeat business with a company after a bad service experience. It also takes several positive customer experiences to make up for one negative one. So communication is key for your RTO success. 

Communication is about developing that quality-focused culture. You need to have regular communication with all of your staff. When I’ve started in new Management roles that is the first thing I always implement. I want to know what is going well, what isn’t going well, and what we need to keep doing. Ideas from the people working on the frontlines of the company’s efforts are more attuned to how to improve process than an outside consultant. Consequently, you need to be asking your employees to be looking for ways to improve performance. This is key to your business success – seriously it is. This step starts the culture around improvement initiatives:

• • Embed a culture of quality and continuous improvement throughout your RTO with regular communications and updates
  • Regularly review and update training and assessment strategies through communication with stakeholders to ensure they meet industry needs and regulatory requirements

2. Focus on the 1% Improvement:

• Identify small, incremental changes that can lead to significant improvements in cash flow or overall business performance
• Implement these changes systematically across your RTO operations

 3. Price Increase

What would happen if you increased your prices by 1%?

• Review your pricing structure to ensure it reflects the value of your training
• Consider premium pricing for high-demand or specialised courses
• Implement strategic discounting or bundling to attract more students
•  

You might think that customers will run, however the reality is, customers will probably not even notice. So what can 1% bring you and your RTO success? Extra cash. Give it a go.

Increase Revenue through Product Strategies:

• • Explore opportunities to sell more training products or services
  • Consider developing new courses or expanding into new markets
  • Implement upselling or cross-selling strategies for existing students

4. COGS Reduction

If you have goods or direct costs for your services, then investigate if you can reduce the price of them by 1% or more. If you are purchasing items for your RTO then maybe you could buy the items in bulk and receive discounts for those purchases. When you buy in larger quantities you will often be able to take advantage of quantity discounts. 

Optimise Pricing Strategies:

• • Review your pricing structure to ensure it reflects the value of your training
  • Consider premium pricing for high-demand or specialised courses
  • Implement strategic discounting or bundling to attract more students

Another consideration could be to substitute lower cost materials where possible. Technology is constantly improving, and updating materials, tools, apps, etc. Prices move up and down due to supply and demand, and processing methods change. It is a valuable exercise to do an audit on your COGS. 

5. Overheads Reduction

Business overhead costs are expenses that are related to the day-to-day running of a business. Reducing overhead costs is important for your RTO Success, and when you see a business downturn.

• Analyse your expenses and identify areas where costs can be reduced without compromising quality
• Consider outsourcing non-core functions or implementing more efficient technologies
• Negotiate better terms with suppliers or partners

Consider what operating expenses do you have that can be reduced?

Software – Cost of software, unused subscriptions, unused space? Whatever it is, consider if it is actually needed, and reduce or remove it if it isn’t. Embrace Technology:

• • Invest in technologies that can streamline operations and enhance the learning experience
  • Use data analytics to inform decision-making and identify areas for improvement

Rent – lease costs of the business premises (or mortgage costs if purchased). 

Insurance – Every business needs insurance coverage, expecially an RTO where it is mandated, yet there are many solutions to meet the RTO Standards. 

Utilities – include electricity, gas, water, sewer, phone and internet service. 

Office supplies – such as computers, copiers,  binders, stationery and other items used within the office 

6. Reduction in Debtors Days day(s)

Good practice debtor management is critical to every business that sells on credit. It is important to remember that a good customer is only one that pays. If the business is not collecting the cash from customers, then the business is funding the customer’s business as well as its own. Consider ways to improve the collection of your debtors faster.

Monitor and Measure Progress:

• • Implement systems to track key performance indicators (KPIs) related to sales, costs, and efficiency
  • Regularly review these metrics to inform decision-making and strategy adjustments

7. Volume Increase

Sell more units. There are two ways in which this can be achieved:

• increasing level of sales to existing customers
• sourcing new customers

Consider how an increase of 1% can be implemented for one of these areas.