The Rise of Niche Educational Entrepreneurship

Getting down to brass tacks of founding a school

By: Michael Strong

The rise of microschooling has been getting a lot of attention in the past two years. As documented by FEE’s Kerry McDonald, who has profiled dozens of microschool founders, there is growing demand for small, personalized learning environments. Parents and children prefer the personalized approach, and many former educators find that owning their own microschool is a welcome liberation from the impersonal, bureaucratic system that many have felt stuck in.

As we see a growing proliferation of microschools, I predict that we will see more niche options developed. In every business, an optimal strategy is to identify a niche taste, interest, or need that is not yet being satisfied by the market. Consider restaurants: fast food, convenience store snacks, food trucks, gourmet dining, vegan restaurants, ethnic foods (Chinese, Mexican, Japanese, Vietnamese, Korean, Ethiopian, French, German, Cuban, Peruvian, etc.), “fusion” cuisine that combines these, “American” cuisine, and on and on and on. People also cook at home, grow their own food, eat meals together, etc.

Because of the dominance of mass compulsory government schooling for more than a century, most people have a very limited sense of what an “education” is. Insofar as government schools have become increasingly homogeneous in recent decades, corresponding to increasing levels of federal control, many people can’t imagine a wider range of offerings. We’ve all been forced to eat in the same cafeteria for so long that the notion of a range of restaurants offering a spectacular range of foods is unimaginable for many people.

That said, there have been a limited range of alternative options: Montessori and Waldorf alternatives have been around for more than a hundred years, albeit both marginalized by the tax-financed government school systems. While a few Montessori and Waldorf schools have hundreds of students, most are smaller than a hundred, thus most are de facto microschools. Sudbury Valley and similar self-directed, or “democratic,” educational models burst forth in the 1970s and are now represented in dozens of locations across the US. The first Acton Academy was founded in 2009, and now there are hundreds of them. Since COVID we’ve seen an ever-growing number of microschool models, including Prenda, Primer and Acton spin-off Alpha School.

Many of these provide distinctive approaches to learning. Maria Montessori and Rudolf Steiner developed distinctive pedagogies and curricula based on their respective beliefs about learning and the world. Sudbury schools are typically committed to democratic governance and self-directed learning. Acton Academies feature a “hero’s journey,” learning apps, a philosophy of responding to all student questions with a question, and an emphasis on entrepreneurship. Prenda has a commitment to test score metrics. Alpha schools highlight their software-driven “two-hour learning” with the rest of the day devoted to personal growth and student projects.

While many new microschool entrepreneurs, including former parents and educators, may start by simply providing a more personalized and humane learning environment, the future is in developing a niche brand. Certainly as Educational Scholarship Accounts or Educational Savings Accounts (ESAs) allow more parents to opt in to new learning options, we will see a more diverse market along with more sophisticated parent consumers. Already many parents are realizing that mere “curriculum coverage” and average test scores are not necessarily the metrics that matter for their family.

One way to think about niche offerings for microschools is that your most likely customers are going to be parents who are dissatisfied with existing public school offerings. Most parents will want their children to be able to transfer back to a conventional public, charter, or private school later on (perhaps for high school). Thus typically microschool entrepreneurs will want to provide a brand promise that includes at least grade level mastery of basic skills (reading, writing, and mathematics). That said, that allows for considerable freedom to provide distinctive value for your parents beyond standard academic skill development.

In some cases, microschool entrepreneurs may want to launch a program based on their own reputation, experience, or personality. But one of the reasons I emphasize the importance of connection, community, meaning, and purpose for the well-being of children is that microschool entrepreneurs by definition will be providing a superior experience for their students based on these characteristics of a small environment. Insofar as the absence of these essential “vitamins” for a child’s well-being could lead later to anxiety, depression, and suicide, microschool entrepreneurs are thereby providing incalculable value to their families beyond academic skill development. Find a way to talk about the value you provide to your families in your sales and marketing initiatives in a compelling, informed manner.

Beyond these common elements, consider developing an even more distinctive niche identity for your program. One branding strategy is to consider “the only” strategy: What can you say honestly about your program that positions you as “the only” provider of that experience (at least locally) in your neighborhood? Is yours the only program where kids can grow a garden? Where they can learn robotics? Where there is a bilingual immersion program? Where a published author teaches creative writing?

Right now many parents are both exploring new options while also being confused by new options. Consider how you can stand out in their minds and in the school talk buzz taking place on soccer fields, at dance lessons, and at church. What do you want the moms to be excited about? What do you want them to say about you and your program?

Of course, your front line evangelists are always your current parents. What do they say about your program? Have you educated them about all the cool learning experiences you provide?

As parents come to understand the profound value that you are providing their children, you can often increase your tuition. This is not a matter of being greedy. Launching a microschool is really challenging, and you are likely to need all of the financial support you can get in order to provide a quality program. Develop a niche that inspires all stakeholders, so parents are proud to advocate for you at any price. As your business prospers, you can always provide scholarships and discounts down the road.

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1 Comment on The Rise of Niche Educational Entrepreneurship

  1. I THINK IT’S WONDERFUL THAT OPTIONS ARE OPENING UP FOR PARENTS TO CHOOSE FROM. YES, I ALSO THINK THAT PARENTS MUST STUDY THOSE OPTIONS FOR THEIR CHILD AND WHAT IS BEST FOR THEM.
    AMERICA WAS FOUNDED AND BUILT ON GOD’S PRINCIPLES, AND OVER A HUNDRED YEARS’ EXPERIENCE SHOWS THAT WE CANNOT HAVE A SOCIETY THAT IS BOTH FREE AND PEACEFUL WHEN LEGISLATORS USE SCHOOLS TO SHAPE ATTITUDES OR CONTROL THE CONTENT OF STUDENTS’ MINDS.
    PLEASE READ: “MARIA MONTESSORI HER THOUGHTS AND HER BELIEFS FOR TODAY,” TO UNDERSTAND MORE OF WHAT HAS HAPPENED TO OUR EDUCATION SYSTEM THEN AND NOW.

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