Business Funding and Market Research

E-Learning Business Plan

Last updated on June 26th, 2023

E-Learning Business Plan

This article can help you write your own e-learning business plan. However, if you are looking for a business plan writer then our experts can help you get a custom business plan. We have a team of 3 specialists (Finance, Marketing, and Management) to handle each business plan project so the combination of thorough market research and financial model can help you find answers to various questions such as How much investment is needed to get $5 million of revenue in 3 years? How much will I have to spend on salaries? Why are my major competitors and their pricing? etc.

Start your own company with an e-learning business plan.

If the COVID-19 outbreak has taught us anything, it’s that we can achieve a lot more from home than we previously thought. This is a business plan for delivering educational services from the comfort of your own home. Because people are still scared to go out, this is the greatest time to launch an e-learning company.

If you want to learn how to make an e-Learning course, you’ve come to the right place. This one is based on an actual start-up, similar to a driving school business plan or a language school business plan. Let’s take a look at the elements of the approach that will help Smart E-learning School succeed.

The Company

Intelligent e-learning The school will be owned and administered by Hazel White. The focus of the school will be on providing technical education through the internet and online learning. Computers, languages, and programming will be the center of the school’s curriculum. Starting an e-learning business is easier than you would think. It’s comparable to a preschool business plan, except it’s completed entirely online.

Management of the E-Learning Industry

Look no further if you’re wondering how to start an e-learning company. White will lead the organization, and she will enlist the help of experts from many fields to help her plan how to construct the most lucrative online training courses imaginable. A mobile application business plan will be necessary to make the organization accessible to everyone.

Customers of the E-Learning Industry

The customers of Smart E-learning School will come from all geometrographic geographic subdivisions in the United States. The company’s major clients will be as follows:

People who want to learn new talents.

People who are looking to learn a new language.

Those interested in learning about photography and filmmaking.

College graduates pursuing certification in areas such as safety and other related fields.

Business Objective

The company’s subjective objective is to become a well-known brand in the elearning industry. Nonetheless, we have defined the following goals:

Enroll 5,000 students in the first six months.

Produce $0.3 million in annual income at the end of the third year.

Expand to the global market at the end of the second year.

Owner of a business

Hazel White will be the owner and CEO of Smart E-learning School. White has worked in the area of education for the last 30 years. She has previously implemented a tutoring business idea effectively. As a result, she’s the best person to implement this e-learning business plan example.

Why is an e-learning company being established?

Since the coronavirus epidemic, many have realized that studying at home saves money and time compared to traveling to school. The increased use of Google Classroom and Zoom services is the best evidence of this. The best time to start an e-learning company is right now.

How will the e-learning company get off the ground?

Step 1: Create a strategy.

The first step in successfully launching your company is to create an e-learning business strategy. The management structure of the company will be established, and the online education e learning example business plan’s execution strategy will be completed. This is not the same as owning and operating a martial arts school.

Step 2: Create a brand.

The next step in the process of starting a business will be to create a brand. Top-ranking educationalists will be used to establish a brand image. Having a brand, like having a martial arts business strategy, is essential.

Step 3: Establish an online and offline presence

After the brand has been created, the next step will be to lease office space and begin working. A comprehensive website will be created to make the firm more accessible to clients.

Step 4: Promote and Market

The next step will be to create a solid marketing strategy to help the business stand out from the competition.

After that, you must deal with the services section of this e-learning business plan template. If you want to start your own e-learning company, you’ll need to figure out what services you’ll offer first.

Intelligent e-learning The school will focus on 20 services, which will be divided into four categories:

1. Basic Freelance Skills Training

This section will teach people the fundamentals of freelancing and how to use it to make money. The following will be included:

I work as a freelance writer.

Content creation, SEO, and data entry are all tasks that must be completed.

Well-known word processors are used.

2. Advanced Freelancing Techniques Training

This section will cover specialized skills that can be applied to both freelance and office work. The following will be included:

Retouching of video.

Fundamentals of programming.

Retouching of photographs

Virtual assistants receive training.

Writing a business strategy is a difficult task.

3. The study of language

We’ll also teach people languages that will increase their chances of landing a better job. Smart E-learning School will offer classes in the following subjects:

Beginner’s Chinese.

Spanish is a language with a medium level of difficulty.

A higher level of English.

French at an intermediate level.

A higher level of Spanish.

4. Advanced Skillsets

The following will be included:



Automobile maintenance.

E-learning Business Marketing Analysis

You must first conduct a marketing study if you want to learn how to start an online e-learning company. This is the section in which we evaluate the project’s financial viability.

As of 2019, there are more than 31,000 elearning businesses in the United States. In 2019, the elearning industry is valued at 144 billion dollars. Since then, it has grown at a 14.4% annual rate, and by 2025, it is expected to be worth more than 370 billion dollars.

If you want to start your own e-learning business pdf, you’ll need to think outside the box. On the other hand, the COVID situation has made things easier. People nowadays prefer to study online rather than in a traditional classroom.

Small and medium businesses are one of the most profitable client segments for any e-learning firm. These companies strive to educate their employees for the least amount of money possible. This is only possible with elearning. This allows employees to receive training while still at work, rather than having to take time off.

Another factor to consider when starting an elearning company is instructor availability. If you want to succeed as a newcomer to the field, you’ll need to hire the best tutors. The best professors and trainers in the area can assist you in expanding your business.

You should also look into how other companies in the same industry operate. The way they educate, assess, and certify their students is one of the most important things to take inspiration from.

Market Developments

As previously stated, the United States has over 31,000 elearning companies. On the other hand, the market hasn’t always been this way. There were only a few distance learning organizations operating in the United States prior to the widespread use of the internet. These companies conducted tests in major cities and taught via remote lectures broadcast on specific television channels.

Since the early 2000s, the industry has been expanding. It grew at a rate of 7% per year in 2002. The number and size of elearning businesses grew steadily, and the rate of growth accelerated over time. New entrants have a chance because the industry is still growing at 14.4 percent.

Segmentation of the Market

The following is a list of Smart E-learning School’s anticipated clients in this e-learning firm:

People who are looking for a way to make money by using their talents

One of the most important customers/students of any elearning system is people looking for a cost-effective way to learn new skills. The majority of Smart E-learning School’s independent customers will be from this group.

People who want to learn a new language

Learning new languages will pique the interest of a large number of students at Smart E-learning School. These individuals will be among the highest paid due to the high cost of language study.

People that are passionate about learning new skills

People can learn about topics they are interested in at elearning institutions. These individuals would be instructed in photography and videography. People, on the other hand, can learn the same skills in order to make money. We don’t pass judgment on anyone at Smart E-learning School.

Small and medium-sized businesses

We will also provide online training options for companies that do not have their own training departments. As a result, this will be the most lucrative market sector in terms of revenue, as customers frequently require training for a large number of people.

To establish Smart E-learning School as a leading provider of distance education services.

To build a stable of long-term corporate clients with whom to sign long-term training contracts.

I want to be earning $26,000 per month by the end of year three.

Maintaining a CSAT score of 90% or higher

Pricing of Products

All courses and training programs will be priced similarly to those offered by competitors. To attract customers at first, pricing will be kept a little lower than competitors.

E-learning Business Marketing Strategy

In order to launch a profitable company, any company e learning marketing plan example must have a solid marketing strategy. Because the elearning industry is so competitive, how well we present our company matters a great deal.

If you’ve read this far and are wondering how to begin an e-learning company proposal, you already understand the importance of a solid marketing strategy. We need to highlight the areas in which we outperform our competitors. Only then will we be able to achieve our goals.

Analysis of Competitors

We’ll employ cutting-edge learning techniques to outperform the competition in terms of training.

To ensure that we provide the best, we will hire the best experts in each field.

In order to gain long-term clients, we will offer new training solutions for small and medium businesses.

Strategy for Selling

We’ll use TV commercials, Google Ads, and banner ads to promote our new brand.

To attract customers and promote the company, we’ll offer discounts for the first six months.

We’ll develop tailored strategies for our business clients.

Personnel strategy

The next step in this e-learning company business plan is to compile a list of employees who will be needed to run the company effectively. One thing to keep in mind is that this business is unique. It will be run by both administrators and instructors.

Employees of the company

Hazel White will be the sole owner of the company.

One Manager Liaison will be required to communicate with the outside world.

There will be a total of four language teachers needed, one for each language offered.

Seven Skills Teachers will be required for all of the disciplines covered.

One IT expert will be hired to ensure that the website runs smoothly.

1 Social Media Manager to oversee the much-needed social media presence of the school.

a single bookkeeper

The technical equipment is maintained by a single technician.

only one receptionist

Plan your finances

This e-learning business case’s final section will tell you how much money you’ll need to get started. This will cover the funds required from the time the company is founded until it begins to break even. Some of the costs that must be considered are as follows:

The rent for the space where the business will be located.

The amount necessary to purchase office supplies.

The amount of money needed to create a school’s website.

Marketing and public relations costs

Money is required to pay the employees before the company can generate revenue.

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E-learning Business Plan Sample

SEPT.30, 2013

E-learning Business Plan Sample

E-learning Business Plan for starting your own business

If there’s one thing we’ve learned from the COVID-19 pandemic, that is, we can do a lot more from home than we previously thought. We are presenting this business plan for educational services from home. This is the right time to get started with an e-learning business as people are still reluctant to go out.

If you want to know how to set up and elearning course, you are in the right place. Just like a business plan for a driving school or a business plan for language school , this one is based on an actual start up. Let’s see the components of strategy that will help Smart E-learning School succeed.

Executive Summary

2.1 the business.

Smart E-learning School will be owned and headed by Hazel White. The school will be focused on providing technical education via the internet and distant learning. The courses offered by the school will be about computer, languages, and programming. starting a e learning business is easier than you think. It is just like a preschool business plan but everything is online.

2.2 Management of E-Learning Business

If you are looking for an answer to how to start e learning business, here it is. The online school business plan will be headed by White and she will hire specialists of each field to help her plan how to set up online training courses in such a way as to make the maximum profit. A mobile application business plan will also be needed to make the business available for all.

2.3 Customers of E-Learning Business

The customers of Smart E-learning School will be from all geometrographic geographic subdivisions from all over the US. The main customers of the business will be:

  • People looking to acquire new skills.
  • People wanting to learn new languages.
  • People interested in learning photography and videography.
  • College graduates wanting to get safety and other certifications.

2.4 Business Target

The subjective target of this online school business plan is to create a reputable name in the elearning industry. However, we’ve set the following objective targets:

  • Enroll 5,000 students within the first 6 months.
  • Generate a revenue of $0.3 million per annum by the end of year 3.
  • Expand to the global market by the end of year 2.

E-Learning Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Hazel White will be the owner and CEO of Smart E-learning School. White has worked as an educationist for 30 years. She previously implemented a tutoring business plan with success. That makes her the perfect person to implement this e learning business plan sample.

3.2 Why the E-learning business is being started

After the coronavirus pandemic, people have realized that it is cost and time effective to learn from home than going to a school. The greatest evidence of this is the increase in the use of services like Google Classroom and Zoom. This is be best time to start e learning business.

3.3 How the E-learning business will be started

Step1: Planning

The first step towards successfully launching this online school business plan is business model for e learning is planning. The managemental hierarchy of the business will be developed and online education e learning sample business plan implementation strategy will be finalized. This is not as simple as a martial arts business .

Step2: Developing a Brand

The next step towards starting the business will be establishing a brand. Top-ranking educationists will be hired to create an impression of the brand. Just like a martial arts business plan it is important to have a brand.

Step3: Establish a Web and Physical Presence

Once the brand has been established, the next step will be to hire office space to start the work. An extensive website will be launched to make the business accessible for customers.

Step4: Promote and Market

The next step will be to create a strong marketing strategy to help the business get noticed by the customers.

E-Learning Business Plan - Startup Cost

The next thing that needs to be addressed in this e learning business plan template are the services. If you want to start your own e learning business, you need to determine the services.

Smart E-learning School will be focusing on 20 services divided into 4 categories:

1. Basic Freelance Skills Training

This category will teach people the basic level and easy freelancing skills that they can use to make money. This will include:

  • Freelance writing.
  • Content creation.
  • Data entry.
  • Use of popular word processors

2. Advanced Freelancing Skills Training

This head will cover specialized skills that can be used for freelancing as well as office jobs. These will include:

  • Video editing.
  • Basic programming.
  • Photo editing.
  • Virtual assistant training.
  • Business plan writing .

3. Languages

We will also be teaching people languages that can increase the chances of them getting better employment opportunities. Smart E-learning School will teach:

  • Entry level Chinese.
  • Intermediate Spanish.
  • Advanced English.
  • Intermediate French.
  • Advanced Spanish.

4. Advanced Skills

These will include:

  • Photography.
  • Videography.
  • Automotive repair.

Marketing Analysis of E-learning Business

If you want to know how to start e learning business online, you need to conduct marketing analysis. This is the part where we determine the economic viability of the project.

UK Start-Up Visa Business Plan

As of 2019, there are more than 31,000 elearning companies in the US. The market capitalization of the elearning industry was 144 billion USD in 2019. It has been growing ever since at a rate of 14.4% annually and is expected to be worth more than 370 billion USD by 2025.

If you want to start your own e-learning business pdf, you’ll need to come up with an innovative approach. However, the COVID situation has made things easier. People now prefer to learn via elearning rather than attending an actual school.

Great service

Great service. Good turnaround time and quality work. Thanks!

One of the most profitable customer bases for any e learning business model are small to medium enterprises. These companies want to get their employees trained at the lowest possible cost. That is only possible through elearning. This enables the employees to receive training while they are in the office and they do not have to take a leave for it.

Another thing that you need to take care of while planning to start an online school business plan is the availability of teachers. If you want to succeed as a new entrant in the industry, you’ll need to hire the best teachers. The best teachers and trainers in the territory are the people who can make the business a success for you.

You also need to look into the way others in the same industry are operating. The way they teach, examine, and certify their students are some of the very important things to get inspiration from.

5.1 Market Trends

As stated earlier there are more than 31,000 e-learning businesses in the US. The market, however, has not always been like this. There were only a handful of distant learning companies operating in the US before the widespread use of the internet. These companies taught through distant lectures on dedicated TV channels and conducted examinations in large cities.

Since the 2000s, the industry started to bloom. It had a growth rate of 7% in 2002. The number and magnitude of e-learning businesses kept going up and the growth rate accelerated over the years. The industry still has a 14.4% growth rate meaning that new entrants still have a chance.

5.2 Marketing Segmentation

In this business writing e learning we’re listing the expected customers of Smart E-learning School:

E-Learning Business Plan - Marketing Segmentationt

5.2.1 People Looking for Skills to Earn

One of the main customers/students of any elearning setup are the people who are looking for a cost-effective way to acquire skills. This segment will makeup the bulk of independent customers at Smart E-learning School.

5.2.2 People Looking to Learn Languages

A substantial portion of the students at Smart E-learning School will be the ones looking to learn new languages. These people will be the high paying ones as language education is expensive.

5.2.3 People Learning Skills as Passion

People also go to elearning schools to learn things they are passionate about. We’ll teach photography and videography to such people. However, people can also learn the same for earning money. We don’t judge anyone at Smart E-learning School.

5.2.4 Small to Medium Enterprises

We will also be providing online training solutions for the companies that cannot have their own training wings. This will make up the largest single market segment by revenue as such clients often need training for a lot of people.

5.3 Business Target

  • To establish Smart E-learning School as a leading distant learning services provider.
  • To make some permanent corporate clients and sign long-term training contracts with them.
  • To start making $26,000 a month by the end of year 3.
  • To maintain a CSAT score of more than 90%

5.4 Product Pricing

All courses and training programs will be priced as per the competitors. The prices will be kept a little bit lower than competing businesses to earn clients at the start.

Marketing Strategy of E-learning Business

In order to start a successful business any business e learning marketing plan sample must contain a solid marketing strategy. As the elearning market is a saturated one, a lot depends on how well we present the online school business plan.

If you have come this far looking for how to start a e-learning business proposal, you need to know the importance of an effective marketing strategy. We need to highlight the areas where we are stronger than our competitors. Only then we can succeed.

6.1 Competitive Analysis

  • We will implement modern learning techniques to make our trainings better than what the competition has to offer.
  • We will be hiring the top-notch professionals of every field to make sure we deliver the best.
  • We will design innovative training solutions for small to medium enterprises to get permanent clients.

6.2 Sales Strategy

  • We will use TV commercials, Google Ads, and banners to promote our nascent brand.
  • We’ll offer discounts in the first 6 months to attract people and advertise the business in turn.
  • We’ll make specialized plans for corporate clients

6.3 Sales Monthly

E-Learning Business Plan - Sales Monthly

6.4 Sales Yearly

E-Learning Business Plan - Sales Yearly

6.5 Sales Forecast

E-Learning Business Plan - Unit Sales

Personnel plan

The next step for this business plan for e learning company is making a list of people needed to effectively run the company. One thing that must be noted here is that this online school business plan is unique. It will be needing both administrators and teachers to run.

7.1 Company Staff

  • Hazel White will be the owner of the company.
  • 1 Manager Liaison will be needed to connect with the outside world.
  • 4 Language Teachers will be needed, one for each language being offered.
  • 7 Skills Teachers will be needed for all the subjects being offered.
  • 1 IT Expert will be hired to make sure the website runs smooth.
  • 1 Social Media Manager to manage the much-needed social presence of the school.
  • 1 Accountant
  • 1 Technician to upkeep technical equipment.
  • 1 Receptionist

Financial Plan

The final part of this e learning business case will tell how much capital will be needed to start the business. This will cover the amount of money that is needed from the way the execution of the business is started to the day it starts breaking even. Here are some of the costs that must be taken into consideration:

  • The rent of the place to set up the business in.
  • The amount needed to purchase office equipment.
  • The money needed to set up and online portal for the school
  • Marketing and publicity expenses.
  • Money required to pay the employees before the company starts generating revenue.

8.1 Important Assumptions

8.2 break-even analysis.

E-Learning Business Plan - Break-even Analysis

8.3 Projected Profit and Loss

E-Learning Business Plan - Profit Monthly

8.3.2 Profit Yearly

E-Learning Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

E-Learning Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

E-Learning Business Plan - Profit Yearly

8.4 Projected Cash Flow

E-Learning Business Plan - Projected Cash Flow

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How To Build An Elearning Business In 2024: Six Approaches That Work

he global school shutdown caused by the covid-19 outbreak has offered a chance for e-learning companies to reach approximately 1.37 billion students. The desire to learn and the need to supplement limited access to educational institutions have led to a boom in the eLearning industry. The e-learning industry is projected to grow at a CAGR of 20 percent to reach $315 billion by 2028.

Thus, now is an excellent time to start your own e-learning or training business, given the worldwide demand for online and distance learning. However, implementing an e-learning business plan is no easy feat. The key to achieving success is to try things no one else has. Consider  Cathy More  and her ilk as an example. Cathy is a well-known training pioneer who has made it her mission to rid the world of boring education. Companies such as Microsoft, Pfizer, the US Army, Barclays, and the US Department of the Interior have all used Cathy's designs. 😎 

Don't be disheartened that the key players have already taken their places at the table, and you're just getting started. At least, this is why we are here to teach you how to fly.  EducateMe  outlines the fundamental but essential steps to create an e learning business in this article. Want to follow in Cathy's footsteps or perhaps join the ranks of successful e-learning companies? Buckle up and enjoy the ride as we reveal the inside scoop. 

In six steps, the following summarizes how to start an e-learning business.

1️⃣ Define your audience

2️⃣ Establish a core content

3️⃣ Choose an LMS

4️⃣ Launch your courses

5️⃣ Promote your company 

Ready to learn? Let's go! 🚀

What Is an E-learning Business? 

Too frequently, learning and  online learning  are confused with one another. Before defining an e-learning business model, it is necessary to clarify what falls within and outside the learning scope.

E-learning, often known as "virtual learning," primarily refers to an internet-based form of education. The instructor and students do not meet in person. All coursework and contact are conducted through email, message boards, chat, or video conferencing. Some schools refer to this course format as "fully online."

  • Out of scope

The bulk of the coursework will be completed online through forums, shared papers, email, chat, and so on. However, this does not mean that students and teachers have no face-to-face contact. Coursework may be completed in a classroom or remotely, so long as most discussion takes place online. Online learning falls under this category.

So what Do Elearning Startups Do? 🤔

You need an e learning business if you want to effectively educate people in a specific field or teach them new skills while maximizing your resources and increasing your revenue. Consequently, learning startups refer to platforms used by instructors to administer online courses or impart curriculum-aligned learning experiences. eLearning programs may contain videos, quizzes, simulations, games, activities, and other interactive elements. Additionally, students could view a recorded lecture or attend a live lecture.

Types of eLearning Business Models

Types of eLearning Business Models

There are three primary business models for e-learning that instructors may implement. 

✅ Night School Model

The term "night school model" was coined to describe community colleges' vocational and evening courses. The majority of eLearning companies follow the model of conventional night schools. In this tried-and-true arrangement, students pay a one-time fee for curriculum access. This business model provides courses with predetermined learning modules, assessments, quizzes, and examinations that adhere to a specific structure. 

✅ The Academy Model 

The Academy eLearning model is comparable to a cyberspace membership or subscription service. Students are granted access to all content, including live classes and courses, for a monthly fee. As their expertise grows, students have a greater say in what and when they study. The business model of the academy provides students with a plethora of study materials, including courses, videos, and other media, from which they can learn and develop in various domains. 

✅ The Combined Model 

The "combined" model is a hybrid of the night school and academy models, intending to increase income. Here, the academy model is the primary offering, while the night school strategy is an optional extra. In addition to subscription-based services, this model offers both a "buy once, use forever" option and individual courses.

Who Needs an Elearning Business? 🤷‍♂️ 

Launching an e-learning startup is just one aspect of the process, but before you start, you'll need to determine if it's a good fit for you. 

Course Designers 🖼 

Online course developers are those who make courses available to students online. Packaging your expertise into an eLearning course may supplement your income or start a new one. Using an eLearning business model, you may differentiate yourself from the competition by deciding to develop courses that feature your comprehensive knowledge and skills.

Online teachers 🧑‍🏫 

Starting an online learning business requires excellent communication and teaching skills, a stable computer, and knowledge of the subject area being taught. Your responsibilities as a remote tutor may change based on the kind of eLearning company you run, the grade level you instruct, and your student's age and learning needs.

Training Camps ⛺️ 

The eLearning industry presents an opportunity for boot camp planners to integrate their events. The first guideline for managing a successful boot camp is removing students from their normal environments. Corporate learners can now interact with distant colleagues and facilitators via the eLearning industry, broadening their access to education and training opportunities.

Is Elearning a Profitable Business and Why Launch One? 

The importance of the eLearning industry has grown as the educational landscape has shifted away from classroom-based instruction to online courses. An e-learning company facilitates digital interaction between educators and their students. Several important factors are contributing to the increase in interest and participation. Listed below are the most important ones.

Start Your eLearning Academy with Confidence - Try Our Guide Today!

Feeling uncertain about building your eLearning academy? Our guide can help you start with confidence

The COVID-19 Pandemic has Irrevocably Altered the Future of Education, with Elearning at the Forefront of the Revolution

Global elearning market

According to Technavio's most recent market analysis, the e-learning market's potential growth gap is  expected to increase by USD 1.72 trillion between 2021 and 2026 . The report finds that the market is expected to expand at a CAGR of 16.35% over the predicted time frame. The e-learning market's growth is largely fueled by improved learning in the academic sector. 

COVID-19 boosted e-learning revenue. In response to rising employee safety concerns, companies are adopting work-from-home policies. This hinders companies' training, communication, progress monitoring, and upskilling, fueling demand for e-learning platforms among large corporations and SMEs. 

Corporates Are Investing Heavily in R&D for Their Clientele, and Employees

Between 2022 and 2028, the service providers industry is anticipated to grow at a rate of 30%

Between 2022 and 2028, the service providers industry is anticipated to grow at a rate of 30% due to the increasing emphasis on portfolio expansion among Indian businesses. The rapid spread of coronavirus necessitated the closure of schools and universities, necessitating the development of online alternatives for reinstatement of regular classes. Terms such as social and  collaborative learning are becoming commonplace in fast-advancing companies. Businesses invest more money in research and development to provide new products and services to satisfy consumer demand. 

The North American Government Is Improving Its Telecom and IT infrastructures 

Increases in telecom and IT infrastructure investment, scalability of resources, and greater access to university courses have all contributed to the expansion of the eLearning industry, as have service providers' substantial According to the International Telecommunication Union, the number of internet users will increase from 4.1 billion this year to nearly 5.3 billion in 2022. (ITU). The development of the industry is being driven by the growing number of people with Internet access. As the telecommunications and broadband industries have expanded, so has the availability of inexpensive Internet connection options. 

Higher Education Now Prioritizes Scalable Resources and Expanded Course Availability

In addition, there is a great deal of encouragement to launch an eLearning company because the demand for online learning materials currently exceeds the supply, resulting in a substantial increase in the earnings potential of market participants.

What Is ROI in Elearning?

Using an economic formula known as elearning return on investment (ROI), 💰 one can calculate the financial benefits of offering online training courses or operating an eLearning business. For an eLearning project to be successful, its benefits must exceed its expenses. A calculation of return on investment justifies the investment in training by comparing the costs of development and delivery to the value or benefits realized. 

The owner of an eLearning company is understandably curious as to whether or not their online training program produced the desired outcomes, whether or not their trainees found it useful, and whether or not their company's bottom line has increased significantly. In essence, eLearning ROI is an essential performance metric for determining whether or not your eLearning organization is optimizing its financial resources.

How Do You Measure Elearning Business ROI?

When starting an e-learning business, the ROI estimate is essential. Measuring ROI enables a business to determine the success of a campaign and establish benchmarks for future campaigns. For instance, after establishing an e-learning startup, you could use ROI measurement to determine when something fails, allowing you to swiftly reevaluate or re-shape your offerings and avoid wasting time and money on something that isn't working.

Traditional Elearning ROI Calculation

Traditional Elearning ROI Calculation

ROI is frequently calculated by dividing the profit from an investment by the amount invested. The ROI of your eLearning company can be determined by comparing the cost of creating and delivering training programs to the results they produce. To determine the average eLearning ROI, simply divide the amount of money your company made due to the program by its implementation cost. You can calculate your return on investment as a percentage using this formula by multiplying the result by 100. To declare your effort a success, you must show that the benefits and value of your program outweigh the costs.

Kirkpatrick's Four Tiers Evaluation

Kirkpatrick's Four Tiers Evaluation

Donald Kirkpatrick's 4-level model, which considers learner feedback, the impact on the business, and the return on investment, is the most widely used technique for determining training effectiveness. 

  • The first level or stage is known as "Reaction." Students' responses to surveys and comments reveal what should be improved and whether the material was useful. 
  • Each participant's learning level will determine how much they take away from experience. It assesses how well the learner is progressing toward their objectives, whether the training objectives are being met, and whether there are knowledge gaps that can be filled by modifying the course content. 
  • Upon completion of a course, instructors can determine whether their students' behavior has changed and whether the skills and knowledge they gained have been applied by observing their behavior levels. 
  • The effectiveness of training is determined by calculating its impact or influence on the trainees' outcomes. Productivity gains are a common indicator of success. 
  • In Kirkpatrick's assessment methodology, Level 5 is the transition between the first four stages and the final step in calculating ROI for online education. The ROI of online learning can be calculated by comparing the cost of the training to the benefits it offers.

Through an LMS (the most practical method)

A learning management system (LMS) is essential software for your e-learning business. It enables you to host training and provides multiple options for collecting training data and generating reports on the fly. Using your cloud-based learning management system (LMS), students can access course materials anytime and from any location. Your learning business's return on investment (ROI) may not rack up immediately. However, your business will begin to generate a return on investment once you replace traditional training with an LMS.

How to Build an Elearning Business in 6 Steps

How to Build an Elearning Business in 6 Steps

There are two possible routes for launching an e-learning business. The first is to create a website or mobile application to promote your business, and the second is to use an LMS to aggregate or sell courses. Custom websites and applications are an excellent concept, but they require a substantial investment and technical expertise to develop and maintain. In contrast, LMS implementation requires fewer resources and no technical knowledge. Consequently, instructors utilize LMS more frequently.

If you prefer the LMS route, the following is a 6-step guide on how to start e learning business models.

Step #1. Define Your Audience

Market research is required to determine who you should target. To narrow down your target audience, ask yourself questions like: 

  • Who is my target audience? 
  • What age range should I shoot for? 
  • What are their annoyances or pain points? 
  • What kinds of courses do they want to take? 

With the answers to these questions, you can tailor your course material to the needs of your audience.

Step #2. Determine Your Core Content

If you want to launch an e-learning startup, you should prioritize long-term value and attract prospective new learners, and keep your current customers. A list of the core skills students want to learn is extremely beneficial. Based on this data, you can decide what to focus on creating and who you're attempting to reach. Furthermore, you may complete more than one critical piece of content with different subsets of your target audience. 

Step #3. Select an LMS

When it comes to launching your eLearning business, you have some options. However, to provide students with engaging online course material, we recommend using a platform with an open-source LMS. You can customize an open-source platform to meet your specific needs. 

Step #4. Make Your Courses Available

It's a good idea to create some sample lessons and courses that cover the main features of your platform before launching it. To see high rates of early acceptance and positive feedback, ensure your material is high quality and provides value to the learner. Your students' reactions to these initial practical exercises will determine the long-term success of your eLearning platform. 

Step #5. Decide on a Price 

Every e learning business must make a profit, and detailed course pricing is one way to do so. It would help if you struck a balance between charging too little and failing to make enough to cover your expenses and charging too much and failing to attract any students. You could conduct a market study and compare the prices of similar classes on competing websites. Establishing a market presence frequently entails undercutting competitors' prices or offering discount deals. 

Step #6. Market Your Elearning Business

You won't be able to succeed without solid marketing, no matter how strong your platform is. You'll need to actively promote your business through marketing, social media, and other channels to stand out among the hundreds of eLearning platforms. 

Elearning Startups Founders' Lessons

Here are some pearls of wisdom from early learning entrepreneurs. We didn't name them but picked up their most important messages.

👉 Lesson 1. It's All about being in the Audience!

The learners are now the mainstay of education. This trend is further supported by concepts such as  cohort-based learning . As an instructor, you must capture your students' attention and reassure them that they are not alone in their struggles. When starting an eLearning company, focus your efforts on the target audience. When users feel like they belong on your eLearning platform, they have an emotional investment, which motivates them to tell their classmates about it. 

👉 Lesson 2. You Can't Ignore the Technical Sides

Technical considerations and project technology execution are equally important to the instructional component of the project. You must understand the fundamental guidelines for evaluating your eLearning business software. 

👉 Lesson 3. Do Everything You Can (Mistakes Too)

You can save money in the early stages of a project by doing as much of the work as possible on your own. Your future failures will not negate the valuable lessons you've already learned. 

👉 Lesson 4. Adopt Industry Best Practices to Increase Your Demand

The goal of online education is to make learning enjoyable and beneficial. Best practices in the industry may be used to increase sales in this manner. Suppose you want your students to be able to see how they're doing and receive feedback on how they can improve. In that case, one option is to use an artificial intelligence-powered ePortfolio module. Games can help to foster student competition.

Create an E-learning Startup on EducateMe 🔥 

Beginning an eLearning business may not be the simplest endeavor. But with an all-inclusive and feature-rich LMS like EducateMe, you can streamline the process.EducateMe is a platform that enables instructors to offer live courses, foster engagements between mentors and their students, and offer performance analytics.

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E learning business plan development

Eric Kluijfhout

Define your pedagogical approach; Define your business model; Define (inter)national opportunities and threats; Define institutional opportunities and threats; Define student attractors and deterrents; Review your pedagogical model; Review your business model


Business Planning In Educational Institutions

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  • 1. E-learning business plan development author: Eric Kluijfhout, [email protected]   This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike License. To view a copy of this license, visit or send a letter to Creative Commons, 559 Nathan Abbott Way, Stanford, California 94305, USA.  
  • 2. E-learning business plan development Refresher Course for Senior Executives Program “ Entrepreneurship development and -training in a global perspective”: e-learning strand Uganda, 18-29 October 2004 by Dr Eric Kluijfhout
  • 8. Analysis and design framework Level Dimension Macro National environment Mezzo Institutional environment Micro Learning environment Pedagogical Technological Organizational

Editor's Notes

  • Substitution: you only change the medium; often emphasis on digital content presentation and in combination with face-to-face meetings. Innovation: using the added value of e-learning for time and place independent learning, asynchronous communication, personalised learning etc. Transformation: new didactics related to distributed learning (full distance learning) and required support organization.
  • Leerdoel: Begrijpen dat bij verschillende combinaties van traditioneel en afstandsonderwijs er verschillende eisen aan ELO’s worden gesteld. ELO functionaliteit bij aanvulling op traditioneel onderwijs: Vaak nadruk op organisatie van het onderwijs (bijv. rooster kunnen raadplegen; plaatsen van behandelde teksten; presenteren extra info door docent) ELO functionaliteit bij vervanging van een deel van een opleiding: Gaat dan vaak om zelfstudie en werken aan opdrachten waarbij bijeenkomsten gebruikt worden om mijlpalen te bespreken of te toetsen. ELO functionaliteit vooral gericht op communicatie tussen student en docent/begeleider tussentijds voor oplossen van problemen; soms ook functionaliteit voor samenwerken tussen studenten. ELO functionaliteit bij volledig afstandsonderwijs: Zowel presentatie van leerstof, begeleiding, samenwerken, en toetsing. Stelt niet alleen hoge eisen aan ELO functionaliteit maar ook het didactisch ontwerp van het materiaal!
  • Often no clear demarcation/some overlap between cells!! We will discuss each cell, for general (in terms of facilitating or inhibiting e-learning) as well as e-learning specific.
  • Political, economical and social pressure: motives in high-income and low-income countries are different: low-income countries: do more with less high-income countries: provide a high-level working force but for both: it is sexy, hot, ….
  • General E-learning specific
  • Attitudes: in NL supportive (of esp. services sector); in Finland technology itself as a major national economic asset (RTD as an export article)
  • Non-pedagogical and non-technical issues, but IN SUPPORT of pedagogy and technology.
  • National e-learning policy should be medium-long term (3-5 years rolling plan) and include also the role of non-gevernmental players. E-learning programmes are medium-term (1-3 yeaqrs) and should be derived from the long-term policy. Distance teaching/e-learning organizations along the lines of educational levels (secondary, tertiary), professional associations (IT staff, teachers, ….) or economical sectors (education, government, private sector). Teacher training: often the present generation of teachers is ‘lost’ Reliable hardware and software suppliers: e-learning requires stable hardware and software services. Internet services providers: to provide reliable connectivity ICT training and manpower providers: without competent and responsible people, no technology can function
  • Customer and market demands: students ask for it, and the competitors do it also; reaching new audiences; politicians Extending services: enrol more students, and different students (e.g. women, working professionals) Drive for excellence: improving the quality and efficiency of education Efficiency: Reaching more students with one-time investment Accommodating low enrolment numbers Accommodating limited availability of teachers
  • Accessibility at institutional level: Learning resources: e.g. to on-line libraries, own library with CD-ROM’s, learning objects repository, etc. Support services: e.g. domain-specific communities, e-learning support communities, etc.
  • Education is often one life-cycle behind developments in society (universities 5 year; secondary education 10 years, primary education 15 years).
  • Leerdoel: Aantal argumenten kennen voor de invoering van ELO’s bij bedrijfsopleidingen.
  • Learning resources: course texts, library access, web (google), other students Learning services: tutoring, self-tests, …………
  • Connectivity: lhe ‘last mile’ syndrome. Either not properly ‘designed’ in the course, or ‘perceived’ as insufficient. ‘ Improper’ = partly culturally determined: whether and how to discuss; who to initiate; open or closed groups; etc. Poor course examples: only digitised lecture notes/not using e-learning’s added-value; Poor tutoring: not reacting in time to questions; no clear course management; allowing unstructured discussions; dominating discussions; …………… Inferiority: e-learning = second-best education.

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Educational Software Business Plan

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Third Degree I.D.

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Third Degree I.D. is a limited-liability company (LLC) with three founding partners, located in Savannah, Georgia. The company designs, develops, and markets instructional products and services for the corporate, education, government, and healthcare e-learning industries. It is committed to high quality instructional design and educational new media development, and provides a core deliverable of programs, courses, and learning objects for the distance education, distributed learning, and e-learning markets.

The company employs an object-oriented design methodology that yields flexible, scalable, and reusable content, supporting clients with rich, targeted solutions that are easily replicated and maintained. It seeks a balanced portfolio of clients from a variety of industry sectors, and plans to mitigate business  fluctuations with an appropriate number of local, national, and international clients.

Third Degree I.D. develops strategic relationships and builds its business on a returning customer base and an accumulation of educational content that can be re-purposed and re-sold.

The three founding partners of Third Degree I.D. will each invest $35,000 into the company, and are seeking an additional two-year loan of $30,000 to complete the start-up funding. Roughly $19,000 of this initial funding is required for start-up expenses and assets; the remainder will provide a cash basis for the initial year of operations, during which Third Degree I.D. will provide some at-cost work to influential clients to create a solid reputation for our work and capabilities; this reputation forms the necessary basis for marketing and sales strategies after the first year.

Our market research shows our sales goal of $360,000 in the first year is conservative, for a start-up educational software company with our combined expertise. Growth estimates in years 2 and 3 are based on data from comparable businesses in the same industry.

Sbp, educational software business plan, executive summary chart image

1.1 Objectives

Key objectives for Third Degree I.D. in the first year are as follows:

  • Establish a legal business through appropriate licensing.
  • Complete business planning and pursue funding–via venture capital, bank loans, grants, and contracts.
  • Establish a web presence and list products and services in industry-relevant websites and publications.
  • Contract with six  to eight clients requiring consulting, training, design or development work of an appropriate scope ($50,000 or more).

1.2 Mission

Third Degree I.D. designs, develops, and markets instructional products and services for the corporate, education, government, and healthcare e-learning industries. It affords companies and institutions cost-effective, progressive, flexible and well supported solutions to their instructional design and e-learning operational needs. Its principal goal is client satisfaction, serving client interests as an ally and loyal business partner. The company operates on a for-profit basis and provides an engaging and equitable work environment for its owners, employees, and contractors.

1.3 Keys to Success

Success will be dependent upon:

  • persistent and creative client development efforts
  • exceptional product and service quality
  • time-efficient and cost-effective development processes
  • expert management and knowledgeable staff
  • cash-savvy growth strategies

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9MUSES platform for online education Business Plan

by Akram Dakhli

2018, 9MUSES.NET is an online tutoring platform created by co-founders Akram Dakhli and Tawfik Chelli to develop and market online education in Tunisia and possibly in other countries during the following years. 9Muses is a massive open online course (MOOC) provider. It hosts online university-level courses and professional courses in a wide range of disciplines to a worldwide student body, including some courses at no charge. This business plan outlines how the company will prepare the launch of this project in the year 2018.


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