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Why do the vast majority of educational and training institutions have limited capacity and development bottlenecks

Time:2025-12-24

Source:Artstep

More than 95% of training institutions have a very practical problem:
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Why do the vast majority of educational and training institutions have limited capacity and development bottlenecks


More than 95% of training institutions have a very practical problem:



I have been running my own institution for six or seven years, but the scale of three to four hundred students has been stagnant. The revenue scale, campus scale, and talent replication have reached a ceiling, with profits but limited. The demand for employee growth has never stopped, and various operating costs have quietly increased like a boiling frog, with profit margins being compressed year by year.


Course Product Design: Neglecting the Overall Course Structure and Overemphasizing the Quantity of Knowledge


1. The concept of overall SKU quantity coordination for mainline courses is missing,

Most educational and training institutions, especially franchise brand institutions, blindly copy the brand's curriculum system, lack long-term operational planning requirements for their own curriculum products, neglect curriculum design and planning work, often lasting 6, 12 years or even longer. The curriculum system is too long, too many, too refined, and the length of each stage is not consistent. Class organization is difficult, delivery costs are high, and operational pressure is high


2. Overcatering to changes in market surface demand


At various industry conferences, it is not necessarily industry experts who come on stage to share, but mostly brand investment promoters.


On various media platforms, there are popular evaluation and academic planning projects, fitness programs, self-study rooms, and strong recommendations for  reading. Many education and training institution owners are misled by the promotion of various product projects in the market, exaggerating the demand for subjects and blindly optimistic about the development prospects of future demand. They rush to launch projects, get slapped in the face by the market, have average customer demand response, and are deserted,

3. Blindly pursuing technology exploration


The methods used by educational and training institutions for scheduling mainline courses, peripheral courses, competitions, etc. are confused, and there are deficiencies in the design of the course consumption mechanism, which affects the sales of mainline courses. In fact, the purpose of Tuoke is to consume courses in parallel, rather than in order. Therefore, many training institutions have not truly understood how to use Tuoke, which has not achieved the effect of increasing income. Instead, it has intensified the pressure of course consumption and hoarded more unused courses.


Organizational Structure Design for Education and Training


1. Lack of department

All closed educational and training institutions are due to a lack of sufficient market customer acquisition and sales conversion capabilities. The absence or lack of sound marketing and sales departments is one of the main objective obstacles that limit the development and increase in revenue scale of the institutions.


The detailed division of labor within the marketing department is aimed at deepening channels to increase effective customer acquisition and achieve efficient invitation objectives. Many training institutions mix market acquisition, telephone invitations, sales conversion, and even academic services into one position, which obviously cannot achieve efficient front-end goals.


The operation of educational and training institutions requires an efficient and comprehensive data feedback mechanism, which directly reflects the level and efficiency of a training institution in managing the work of the marketing department. Due to the deficiencies in departmental settings, simply counting sales revenue and contract numbers is insufficient to meet operational management needs. I have seen in more than one institution that the conversion rate of trial courses is analyzed as operational data, which is completely wrong. Similar problems are everywhere, completely lowering the operational management level of the institution.


2. Ambiguous responsibilities


Small and medium-sized institutions often have limited knowledge of their bosses and principals, and only set up basic positions such as teaching, service, and front desk. The definition of the responsibilities of the principal's position and the understanding of support departments such as administration, finance, and human resources are seriously insufficient, resulting in unclear job responsibilities, chaotic management, and low efficiency.  



Many principals have transitioned from being teachers or from marketing or sales positions, lacking the ability to coordinate the overall business chain operation, ignoring the classification of various tasks, being busy with daily affairs, and lacking cross departmental collaboration mechanisms. For example, course delivery of classroom utilization rate, teacher lesson utilization rate, idle time, and busy time resources.


Misconceptions about Business Chain Conversion Efficiency


1. One marketer, one salesperson, and a small number of experience classes.


Many institutions have similar personnel configurations, with 4/6 experience classes on weekends, and the teaching leaders are still struggling to squeeze out. It is difficult to understand the reasons why training institution owners and principals arrange this.


The reason is simple: to increase the enrollment scale, more customers need to visit; Need: sufficient course consultants to receive inquiries and sales conversions; Requirement: There should be sufficient experiential and trial classes available for market visiting customers on weekdays and Sundays;  


2. Overreliance on trial classes


Institutional course consultants have learned a lot of incorrect consulting processes and techniques, excessively catering to clients, spending too much time entangling themselves with clients' personal objective factors, setting limits for themselves, emphasizing the theoretical professionalism of consulting while neglecting the purpose of consulting,


The purpose of trial classes and experience classes is to help promote customer visits, which is a tool rather than promoting sales conversion. This is a basic concept, and it is necessary to have the ability to consult and convert without experience classes. This is the basic job responsibility of a course consultant.


3. Confuse the concepts of renewal rate and renewal rate.


Renewal rate and renewal rate are not precise calculation values. The more renewals, the greater the turnover. Annual turnover and turnover rate (refund+non renewal upon expiration) are the accurate values. The absolute increase in the number of students is necessary for the institution to increase its revenue scale and expand its foundation. Education and training institutions that rely heavily on student referrals and renewals as their main revenue components will always stagnate and fail to grow and develop. See details: The proposition that education and training institutions are small but beautiful is false, and the smaller the institution, the more hidden the risks


Knowledge of education, training, operation and management


1. Lack of modular knowledge concepts


Many institutional bosses are not clear about the job responsibilities and job duties of the marketing, sales, and teaching managers in each module of an educational and training institution. The work objectives and requirements are not clear, and there are too many mixed matters of various sizes, or they believe that they can easily replace and manage each other;


2. Lack of standardized processes


A campus with a revenue of three to four million yuan and a campus with a revenue of ten million yuan have different requirements for the predictability of process design. Wrong modular knowledge cognition will inevitably lead to incorrect business process logic design, especially when training institution bosses are not very clear about the needs of front-line operations and management of business processes; The power and authority of the boss are an important reason for flaws in process design;

So, a training institution has not formed a standardized process for market, sales, teaching, and service, let alone a lack of complaint handling mechanisms and a backlog of problems;


Talent cultivation: stagnant growth


1. Management talent gap


Due to the lack of a modular knowledge system foundation, principals and middle-level managers lack management knowledge and team building abilities, making it difficult to replicate useful talents for the institution and cope with the expanded organizational complexity;


2. Insufficient employee motivation


Knowledge of salary and performance systems is outdated and obsolete, institutions neglect employee career development planning, and outstanding talents are lost due to a lack of promotion opportunities or a sense of achievement;


3. Limitations and deficiencies in teacher training


Teaching and research are confused, and the teacher training system is distorted into grinding lessons, emphasizing creativity, skills, standards, and services. Teachers are often positioned as "qualification based" positions, lacking clear professional and management development logic, resulting in redundant teaching teams and endless expansion of delivery costs;


Salary Design: Incentive Mismatch and Cost Pressure


1. Separation between salary structure and departmental goals


The vast majority of salary systems in the education and training industry on the market are based on disciplinary thinking from one to twenty years ago, with a focus on commissions and a disregard for bonuses. The concepts of commissions and bonuses are confused, and the concept of achieving standards is weak. There is a lack of sense of purpose and responsibility, which fails to stimulate the initiative and sustainability of frontline employees;


2. Overemphasizing qualifications and levels is the most direct way to increase costs,


Which can also lead to employee laziness and laxity, reduce the ROI of the position, and gradually erode the profits of the organization;


3. Confusion between performance evaluation and salary system


The salary system is an explanation of the salary standards for achieving monthly goals, while performance is a judgment of whether a stage is competent or not. Overly cumbersome performance content can lead employed management of business processes; The power and authority of the boss are an important reason for flaws in process design;

So, a training institution has not formed a standardized process for market, sales, teaching, and service, let alone a lack of complaint handling mechanisms and a backlog of problems;


{{BLOG_SUBTITLE:Talent cultivation: stagnant growthes to lose their main job goals. Once included in the daily salary system, it will also increase calculation and management costs. Spending several days each month calculating salary is a typical representative.