Success in your RTO is dependent on the effort and work you put into the foundations of the development of your business. The structure of your RTO is only as strong and secure as its foundation. This is not only true in architecture, but it’s also true when building your RTO business. No matter how much work you put into building and marketing your RTO, if the foundation that it’s built on isn’t a solid one, your business is unlikely to stand up to the stress of time and outside forces.
Owners of successful RTOs and businesses all share one similar characteristic. They understand the key steps to build a solid business foundation. The key steps to building a solid business foundation are to:
- plan,
- seek out professionals who are skilled in business development,
- learn and
- have funds available for contingencies.
Create a compelling Business Plan
The first step in building a solid RTO foundation is to create a plan for your RTO that will spell out the details of how it will earn a profit. Your business plan is one of the key steps to a solid business foundation and will address procedures to be followed to make your business a success. This information is valuable for you to look at your market and see where your business is coming from, as well as deal with any contingencies that may occur. It also is used within the application process and the information drawn from it is used to assess your risk.
Identify Professionals
When developing your RTO operation, it is important to find competent professionals to assist you in building that foundation who will assure your success. RTO Consultants, Accountants, website specialists and marketers are all key players to be considered as part of your team. Remember to include their costs in your start up costs.
Set Up the Right Structure
Will your business be run as a sole proprietorship, a partnership or a company? You will be asked this question at the application time, and will need to provide evidence. Seek advise on which structure is best for you and your circumstances.
Educate Yourself Constantly
It is essential you continue to educate yourself in regards to the RTO requirements. The organisation that ultimately outlasts the competition is the one who has built the foundation. Learning how to run a business, maintain compliance and read as much literature as possible about your operation is one of the keys to building a solid business foundation.
Financial padding
All businesses fluctuate with the monthly income, and it is wise at the commencement of your business to have enough funds to carry you through the lean times and build a solid business foundation. ASQA are looking this when they assess your financial risk, so I would recommend being able to show at least six months of funds at your disposal to cover capital improvements, rent or commercial mortgage payments, salaries, advertising and marketing costs and other general start-up costs. Having this extra padding of at least six months’ worth of expenses is one of the key steps in building a solid business foundation.
By developing strong foundations you are assured of continued success. Your foundations are not just bricks and mortar, it is the systems, research, development of material and planning you put into your RTO.
The development of your RTO, pre-application, is an essential journey to undertake, to develop those strong foundations and allow your business to stand the test of time. You should first lay a strong foundation – a slow process of development, starting small and only when you have laid that strong foundation can you look at expansion and growth.