There’s been lots of talk over the past few weeks about the upcoming budget and what might be in it for training companies. There’s also been a lot of talk on the election, and what both Labour and the Coalition might offer to ‘save’ the VET sector.
I’ve got bad news. Neither the budget or the election are going to make much difference to you and your operation.
The truth is, whilst governments, policy and funding might change, the good businesses will continue to do well, and the poor businesses will continue to struggle.
At OTrain, we get to work with a number of RTO’s and are privileged to have some insight. In the 8+ years we’ve been working in the space, we’ve effectively seen 5 governments (from both sides) and numerous policies and funding priorities. The one thing that has remained true across the entire time is the good businesses continue to do well, and poor businesses continue to struggle.
When policy is favourable, the good businesses excel. Sure the poorer businesses have an uplift, but not necessarily enough to make a real difference. Sure they might go ok for a little while, but not sustainably and certainly not for the long term.
In 2016, I wrote a blog post called “Hey Chicken Little” Iooking at why some people in the sector were thriving, whilst others were just surviving. In thinking about the budget tonight, and reviewing the previous post, I’m convinced the more things change, the more they stay the same.
In the previous post I noted my observations on why the successful businesses continues to do well in what was at the time a tough market. I pointed out:
- they are not afraid of the future
- they are investing in their businesses
- they are adopting blended learning and online training and adapting to meet changing market needs and expectations
- they are active with marketing, specifically digital marketing
- they are investing in their own education and self development
- they experiment with new ideas and concepts
- they are too busy running and growing their businesses to get caught up in worrying about the negative publicity
I’m pleased to say that a few years on, and I still believe in these key observations. Particularly the last point, which I highlighted in the original article, and highlight again.
Note none of these points address the funding arrangements, the political climate, the unemployment rate, the exchange rate or the price of Bananas at the Sydney markets on a Tuesday. None of the things we often hide behind, or the thing we ‘hope’ the next government or Minister for Training might fix.
They are all internal factors. Decisions we get to make. Things we are in control of.
I don’t think it matters what is in the budget tonight, or who the new PM or Minister for Education and Training is following the pending election. I don’t think it matters how much money is spent on training and what the policy is regarding TAFE versus the Private sector.
As the great philosopher Kenny Rogers said ‘Every hands a winner, and every hands a looser’ and I think it is up to us to decide if we want to be successful or otherwise and to play the cards we are dealt.
Tonights budget and the election might have something in it for us; it might even have something big; but as I point out above even if it does, its up to us to go out and realise it.
What do you think?
PS:- Since writing the Chicken Little post we haven’t had another RTO client cease to trade, despite the tough conditions of the past 2-3 years.
About OTrain
OTrain provides a range of products and services to help you put YOUR training online; and help make YOUR training and business work. From a Cloud based, Learning Management System and creative Studio team to create and host online training courses, to our Training Success Club, with coaching, consulting workshops and tool to help you get the most out of your business, OTrain is the logical choice for your online training partner. OTrain is Simply put, a better way to train.
Learn more about OTrain by visiting www.otrain.com.au or calling us on 07 3040 3310
About the Author
OTrain founder and Managing Director Shane Ridley
Shane Ridley is the Founder and Managing Director of OTrain. With a background in Workforce Development, Shane has been involved in everything from staffing and developing workforces in Greenfield sites to working with 100 year old companies. 1 man operations to multinationals.
A serial entrepreneur, Shane has also successfully started and grown 5 businesses, on 3 occasions taking them from concept to $1M+ in revenue.