5 Most Common Business Strategy Mistakes When Starting an EdTech Startups


In the current globalized and high technology world, start-ups are being established at a fast rate. Due to this, these businesses dealing with different products have become many. Among them, EdTech businesses occupy a high percentage of companies that exist in the current world. Reportedly, higher education institutions, as well as other lower school institutions, use billions every year to purchase technology. The management of universities as well as colleges set aside a budget to ensure they buy technology which can help their students learn easily and therefore attain high grades.


Even though academic institutions require advanced technologies from EdTech companies, these companies suffer a great deal when in the process of establishing and stabilizing themselves. Depending on the management and strategies employed by these companies the problems may arise from a financing point, when the company hires, during operation as well as when conducting sales and marketing. The start-ups in this sector have to adopt the best techniques to ensure they stand out and achieve competitiveness in the market. Other like companies research and looks for methods which they can use to make their clients which are school management to become loyal to them and thus expand their market size. Due to this, they are supposed to know the amount of capital they should invest and employ competent people who can work and help the company become competitive and enjoy the high profits which are associated with the business.

Notably, even though EdTech startups may be associated with many problems, the problems affecting specific businesses depend on the type of product they are dealing with. Some may be dealing with laptops, others microscopes, others projectors, and other products. As such, the problems depend on the number of competitors dealing with the same product, the quality of the products and the marketing style used by the EdTech startup.

Employees working for EdTech companies like DoMyWriting, or are sole proprietors of academic technologies, have a lot of work. These people may find it extremely challenging to position themselves, but they should know that the problem is not them but is the higher education. A survey shows that the management of higher education institution has admitted that they are unreliable customers because they find it hard to decide on the products which they should procure. The reason behind this revolves around:

Ø  Lack of clear and competent decision-making panel in these institutions.

Ø  Internal commotion in the higher academic institution on the products that they need the most.

Ø  The institutions are not organized enough to outline the products that they need in prior.

Ø  The institutions fear taking risks when investing in educational technologies.

It is inarguable that the market is already flooded a factor that makes it challenging for EdTech startups to establish themselves and grow positively. All EdTech business people, owners, and management should know the primary mistakes which their businesses make that prevent them from achieving success and the best ways to avoid them.


1) The empathy difference that exists between EdTech entrepreneurs and their clients

Various EdTech businesses fail to relate effectively to their clients who are the teachers, school students, and school management because they are too considerate. Teachers believe that empathy is part of their job and therefore they should consider students whenever they make any decisions. This makes them turn down plans to procure EdTech since they try as much as possible to avoid any step that may make students suffer. For instance, teachers may want to procure a certain app from EdTech entrepreneurs, but since these apps will need smartphones which students lack, they cancel these plans. Also, the fact that the apps may require testing and see whether it will work and improve learning, teachers decide to adopt the new technologies gradually. They take time while evaluating the benefits as well as the cost which are affiliated with the product. On the other hand, EdTech entrepreneurs may have empathy, but they are focused on making sales and meeting their targets. This makes them pursue a different thing or rather have different goals from their clients the teachers.

As such, to counter this problem, the entrepreneurs should find ways to communicate with the teachers and make them understand the benefits of their products. This will eliminate the tension and factors that hold the teachers from buying educational technologies. Since the entrepreneurs only focus on testing their products and learning their effectiveness on the students, the teachers, as well as school management, focus on ensuring the new tools are effective in students learning are better than the ones which were used before.

2) Poor understanding of the bigger picture

Most companies which deal with EdTech tend to stop relating with schools when they feel that their efforts are becoming futile. After finding out that some teachers are indecisive with what they want and their products are not selling, they decide to look for other markets. The reason behind this is that many school districts doubt the effectiveness of technology in education. They view technology to be only expensive in not only procuring but also maintenance and also teaching students to use them.

Due to this, entrepreneurs should ensure they invest in EdTech business with tactical reasons. The ones whose goal is money end up becoming frustrated and failing. This indicates that these business people should be concerned about promoting learning and thereby helping students achieve the academic goals. Entrepreneurs who aim at helping students end up being successful in this sector than those who start up with the aim of making money. EdTech entrepreneurs should learn the market through research, develop tactical strategies which can help them penetrate the market and implement them accordingly. Besides, they should be flexible and expect changes anytime in the course of business operation. They should employ professionals to help them to handle different emergencies to prevent great risks.

3) Inappropriate utilization of feedback

All startups conduct an initial market analysis when they issue their first products for sampling. They offer these products to possible clients so that they can get feedback concerning the quality of the products. EdTech businesses are supposed to use these feedbacks to adjust the product as well as the services they are producing to ensure that they are of the right quality and they meet the expectations which the customers have.

The fact that the customer base will always change, entrepreneurs should ensure that they take time before releasing the products for actual sale. They should try to get feedback from different market segments before selling the products. This will enable them to adjust the product together with the services they are dealing with effectively. When they have improved the quality of the product using the feedbacks, upon selling them, they will attract a large customer base.

4) Transparency

Indeed, management of EdTech companies should be aware that even though different higher learning institutions compete with each other, all have the same goal. They all intend to provide quality education and make their students learn skills as well as the knowledge that will make them better people in the business world. This is to mean that these entrepreneurs should join hands with the teacher to use the best technologies which will help them.

The technologies which are beneficial to students can only be attained when the EdTech entrepreneurs become transparent about their products. They should be open to the teachers when they order for products. They should inform them, the products which are best for them and the actual benefits that the products will have to their students. The entrepreneurs should inform the teachers about the products which have gaps or the ones which will be improved in due course. They should not be hungry for money, but their goals should be to help improve the quality of education through their products. This will help improve the relationship between these two parties.

5) EdTech companies are supposed to employ and use educators

The competition that exists in the EdTech sector and is increasing each year requires the use of educators to help teachers understand the importance of these products. In 2018, the EdTech sector managed to make a total of $2 billion. Since the sector competes with other sectors, it has to employ measures to ensure that their clients value their products and therefore place orders regularly. This will help their businesses not only grow but also make high profits.

By including competent people to work as educators in the EdTech industry will help significantly make the clients see the importance of the products. After investing the right amount of capital during business startup, they should ensure their target market which includes the teachers, and the school management understands the influence that the products they deal with have on the quality of education. They should compare the new technologies with the traditional methods and make the teachers see the difference in the results. This will help improve the business.


By implementing measures to avoid the mistakes discussed above, EdTech entrepreneurs are supposed to be flexible and understand various factors which prevail in this sector. They should understand that many companies are being started and competition is increasing. Perse, to achieve success in this sector, they are supposed to be persistence and not focus on the outcome of their business which is to make money, but instead, they should be passionate about improving learning. They should be innovative enough and use strategies which help students understand that the benefits of their products to students and their academic life.