Pathways

Primary Consultancy

Tyler Kusunoki

Flynn Corson

Andrew Greene

Interviews

Yesterday: 11

To date: 90

Hong Kong Pivot

● Day 1: Began by seeking an international market with varying components:

o An economy with a high-net-worth upper class

o A culture that values and desires American private school education

● Day 1: Hong Kong makes sense because...

o We have contacts there

o There is a market demand for educational consultancy services

o It is distinct from a mainland Chinese market

Psychology of Parents in Hong Kong

Iteration● Day 1: Aware of the frenzied environment that has parents anxious,

desperate, and confused. Hypotheses:

o They feel the need to get their kids out of HK high school educational

market,

o but don’t know how to navigate American prep school admissions

processes,

o or what is valued by American admissions officers

● Day 2: Everything above confirmed, but…

o Anxiety begins earlier than middle school

o No shortage of consulting services for middle schoolers

o Parents are accustomed to spending >$40K/yr. on supplemental

education beginning in elementary, but don’t know how best to invest

1st/2nd Grade Iteration

● Day 1: Initially intended to serve families with current 8th grade students,

targeting them for American prep schools the following year

o High market demand + limited services @ high premiums = fast and

reliable revenue stream with little overhead

● Day 3: Adjust product/market fit:

o Current market is saturated with consultants whose services begin at

about 5th grade--earlier than we intended, and later than families

prefer (confirmed $2B market)

o HK parent culture over-emphasizes academic prep. American prep

schools value well-rounded applicants. Developing kids takes time.

o High market demand + limited, extended services = maximized

customer lifetime valuation

Middleman for Enrichment Service

Providers and Boarding Schools

● Day 1: We initially believed from professional experience that:

o Boarding schools admissions officers would be wary of middlemen

o That enrichment service providers (tutorial programs, music teachers,

sports coaches, etc.) would view us as unwanted competitors

● Day 3: What we learned from interviews with admissions people and

tutors, etc.:

o Schools are wary of unknown middlemen, but those with independent

school backgrounds, proven track records, and personal relationships

can provide a valuable service of ensuring uncorrupted documentation

from applicants in Hong Kong and can effectively communicate their

real intentions in the application process

o Enrichment service providers would value us as referring partners

Fee Structure & Revenue Model Iteration

● Day 1: Revenue model and fee structure have been a primary question

from the start

o Ultra-premium fee for a guaranteed acceptance to a top tier boarding

school

o Annual Subscription model with extra fee for admission in 7th grade

o A la carte menu of services with associated fees

● Day 4: We learned that our customers value

o Choice in their suite of services and payment schedules

o So offering parallel structures along with added a la carte options was

most attractive

Day 1 Day 2 Day 3 Day 4

Here’s What We

Thought

There are parents in the

world who want their

kids to get into US

boarding school

Hong Kong Parents

would be willing to start

(and pay for) boarding

school prep at 1st/2nd

grade

Young Hong Kong parents with

young children have overwhelming

anxiety and massive paralysis of

choice when it comes to how to

best educate their child and prepare

for the future and would be willing to

pay for quality ease of mind and

more clear, guided channeling of

their resources.

The saturation of supplemental

education and enrichment services

in Hong Kong means that there is a

segment of qualified teachers and

companies who are struggling to

find clients or who lack the time and

resources to accurately assess

potential students, resulting in

preventable client-side and

classroom complications.

Here’s What We Did Interviewed parents Interviewed parents with

1st/2nd grade parents

Designed revenue models

and a rough suite of services

and asked parents about

deep concerns and anxieties

(some counselling included).

Interviewed a wide range of

supplemental enrichment services,

including life coaches and independent

tutors looking to make some money on

the side. Evaluated interest in a middle-

man service and in potential payment

models for said service.

Here’s What We

Found DUHStill DUH. But realizing that

boarding school is still too

big picture at that age.

Parents have more

immediate anxieties and are

not being addressed in the

academic marketplace

Bingo. Not only a dead on

hypothesis re: customer segment

but interest in a wide range of

potential revenue, package and

service options and discovery of a

relatively new market. The

importance of a proprietary

diagnostic process reveals itself

Almost unexpectedly warm interest

in this idea. Especially with potential

language barriers, expensive

advertising fees and market

saturation, figuring out how to build

a customer base is frustrating and

time consuming beyond what a lot

of companies/individuals expected.

Here’s What We Did

Next

Zoomed in.

Granularized. Picked a

location. Located a

customer segment.

Refined interview questions.

What keeps you up at night

re: your child? Shifted

interview focus to young

parents of single children.

The other end of this market is the

organizations and individuals that

we would be acting as middle man

for. Cannot match make without a

match. Targeted a range of

supplemental enrichment services

for interviews for their interest in an

agency type service

Prepared this presentation.

But more importantly (?),

iteration. There is a clear

customer segment. The

challenge now is a definite

revenue structure.

EddietheMusician(orArtist/Dancer/RoboticsEnthusiast/TeamSportsProgramCoordinator/&c.)

ReasonablyaccomplishedinhisfieldCurrentlyofferingtutoringservices,butstrugglingtofindcustomersSalary:$20-30,000/yr.intutoringfeesDemographics

· MaleorFemale· 30-45yearsold· Collegeeducatedorexperienceas

tradeprofessionalMotivation

· Loveshis/hercraft· Enjoysteaching· Lookingtoexpandhis/her

business,butnotbeyondhimself· Comingtorealizebeinga

professionalteacherismorefeasiblethanbeingaprofessional“musician”

Behavior

· Spendsappx.10hours/weektutoring

· Spends20-30hours/weekworkingintheirfieldorpracticingtheircraft

“I’mlookingforkidswhowillbesteadyclientsandcanbeseriousaboutpracticingandlearningmycraft.”

ValueProposition· Findregularandqualitystudents

Differentiation

· Wecanincentivizetheregularityandseriousnessofthestudents’engagementbylinkingtheirperformancetotheiradmissionsprospects

· Wecangetandkeepstudentsinavendor’sservice

Evidence

· InterviewswithHKvendorsandparents

Cost

· 10%oftheirregularrates· Costforparentsarecoveredby

retainerRisk

· Qualitycontrol· Vendordisruptionofourholistic

objectives(ourvaluepropositionforparents)

TheKentFamilyWantthebestpedigreeandeducationfortheirchildrenDual-familyincome:$200,000+Usewordslike,“Harvard,Yale,Princeton”Demographics

· Bi-racialorfullChinesefamilylivinginHongKong

· Dual-incomefamily· 2+kids<10yearsold· Collegeeducatedparents

Motivation

· Seekingtoavoidalocaleducationfortheirchildren

· Alreadyinterestedintheworld’stopcolleges

· Wantingtheirkidstobeandhavethebest

Behavior

· Alreadyspendingorpreparedtospend$40,000+oneducationalconsultingandenrichmentprograms

· LackingawarenessofUSprivateschooladmissionsstandards

· Applyingpressuretotheirchildrentoachieve

· Stress“Itseemsit’stimetothinkabouthowmychildwillbeeducated,butitcan’tbehere.Idon’tknowwhereorhowtostart.”

ValueProposition· EducatefamiliesaboutUS

admissionspractices,standardsandexpectations

· Offerreferralstohelpdevelopwellroundedchildren

· Provideongoingdiagnosticandevaluativereports

· Usherfamiliesandstudentsthroughtheadmissionsprocess

Differentiation

· Servicesbeginin1st/2ndgrade· Servicesareholisticallyminded· Servicesarelong-term

Evidence

· InterviewswithHKparentsCost

· Annualretainer($20K)· Alacartesupplements· Admissionsconsultingin8thgrade

($60K,50%paidinyear1,balancepaidannually)

Risk

· Attrition· Limitedcontroloveradmissions

decisions

Channels

Parents

Parents

Pathways

Tutors

Schools

Coaches

Word of

Mouth

Kids/$

Kids/$

Centers

Kids

$

Referrals

Admissions

Time!

Super Kids

$$$$

Super

Kids

Super Kids

Boarding

School

Better Kids

Get Strategy

Existing Pipeline

Parents Vendors

Word of Mouth

“We’re Columbia Grads”

Expat Communities

Young

professionals

Client List

Peer Group

Schools

Diagnostic Vendor List

AccomplishmentsExperience

ExpertiseConnections

Churches

Int’l Schools

asiaexpat.com

Waiting Lists

Existing Pipeline

Word of Mouth

“We did Lean Launchpad”

Expat Communities

Business

Contacts

Existing

Partners

Peer Group

Schools

Diagnostic Student List

AccomplishmentsExperience

ExpertiseConnections

Churches

Int’l Schools

asiaexpat.com

Waiting Lists

Business

ModelParent Profile