Guide: How to start a training business

Are you setting up your training company in the UK? Then you might already know that there is much more that goes into a business than just a good idea. There are many variables from finance and logistics to marketing. In this guide, we will delve into all the questions you need to ask yourself as an aspiring training provider on the UK market. We will cover the basics of how to start the training business, from establishing the course catalogue to ensuring financial stability. 

 

What is a training company?

A training company is a business that provides courses and programmes for personal and professional development. Whether you are a training provider or are in charge of internal upskilling in your workplace, you provide learning opportunities to the course participants. In this article, we share insights that are most relevant to training providers. 

There are many different shapes and types of training companies. When you are setting up your company, you will most likely start small and build from there. You will have the opportunity to grow and expand your business, or you can choose to keep it local and remain small. This all depends on your business objectives, target client, and your course offer. 

Nevertheless, we will share useful information on how to start your own training business. We will provide you with a step-by-step guide, as well as helpful questions that will guide you in the right direction. 

 

The starting point: What do you offer? 

The first thing you should consider when starting your training business is your target audience. Ask yourself about the landscape within the target market and how your training company can meet the demands that exist here. You should also pick a segment within this market (the target audience), where your abilities and areas of expertise meet the demand and will be of value to the target client. 

Once you have established your niche and what you can offer your target market, then you can easily determine how to set up your company so that it meets the needs and desires of your target market. 

 

Important note! 

In this guide, we take for granted that you know the basics of running your own training business, either administratively or from experience as a trainer. You have a grasp on how to structure your company in compliance with regulations and legal requirements, and if not, you have experience from working for another training provider. 

 

Questions to consider when setting up your business

Before delving into the guide, you should consider the following questions: 

• Should I be a specialist training provider, or do I want to offer accredited courses? Can I offer both?
• Do I have the necessary qualifications and skills for onboarding and employing people, or do I need to outsource this to someone else?
• Which digital tools do I want to use? Do I need software like a training management system to administer the course catalogue? 
• Do I want to offer professional or personal development training to individuals, or do I want to sell ‘off the shelf’ courses to HR departments and companies? 
• Is this my main business or a side hustle? We notice for example that some upcoming training providers offer courses as part of the marketing strategy to bring awareness to their product or main business. Regardless of your mission, you will find valuable insights for setting up your course business here.  

What type of courses will you deliver?

Bespoke courses 

Bespoke courses are customised by your company to fit the specific needs of your target audience. If you are building courses within a company, many develop and deliver bespoke courses in-house. That being said, you can still offer bespoke courses as an external training provider. Then you are considered a specialist training provider. 

 

Accredited courses

An accredited course must have been appreciated by an awarding body that is nationally recognised. One such body is for example SFJ Awards. They define an accredited course as something produced by a training provider, for which you will get a certificate that has a Level attached to it. 

When you are an accredited course provider, you must have someone else on board who is assigned as regulator. This is the Office of Qualifications and Examinations Regulation (Ofqual). You can also verify a course’s accreditation on their website. Later on we will explain how you can become an accredited course provider in the UK. 

 

Funded courses

These courses are either fully or partially funded by the government. You are considered as an accredited provider when you offer funded courses. The Education and Skills Funding Agency (ESFA) manages the funding.

 

‘Off the shelf’ courses

Are you looking to offer your courses and training programmes to other businesses, for example by offering courses to Learning & Development departments that want to offer their employees upskilling opportunities. Then you can create a course catalogue of easily accessible online courses that businesses can buy in bulk and carry out on their own without any needed custom adjustments.

 

Courses for personal or professional development 

Perhaps some of the most relevant courses to offer are those that provide new skills or increase knowledge levels. As a course provider, you are perhaps specialising in a certain area, like web and UX design, and are offering professional development courses. Upskilling in softwares like Figma or InDesign or color theory might be very popular courses in your catalogue. In other words, you can create courses that align with your area of expertise and the target audience you want to impact. 

 

Step-by-step: How do I set up a training company? 

Step 1: Do market research 

Remember, you have already mapped out what your niche is and what type of course you are offering. But you must consider a whole lot more about this target market in order to offer a successful course. Therefore, you should conduct market research on your audience and their specific needs, wants and problems. This allows you to identify how you can meet their needs. 

Tips! Use Google Trends, inspect social media, and observe how your competitors are doing. It is important to learn as much about your target audience, as well as how you can set yourself apart from your competition. 

 

Step 2: Create a business plan 

Consider the business plan as a roadmap for your training company which details the direction, purpose, and goals of your business. These can naturally change or take different forms over time, but will be crucial for you to maintain focus during the whole process of establishing your company. 

Consider these elements when writing your business plan: 

• Synopsis of company objectives 
• Market analysis 
• Explanation and description of products and services, including courses and programmes and what needs they fill with the customer base
• Pricing structure 
• Strategy for marketing and sales
• Financial projections, including cost and revenue forecasts 
• Legal considerations for your company type

 

Step 3: Establish training center or online platform

Is it a physical space or an online platform – or a combination of both? You can enhance your training delivery if you rely on a learning management system (LMS). In the LMS, you can create digital courses that participants can take whenever, wherever. Another option is to provide a learning library that is accessible based on subscription. You can also do a combination of physical and digital learning, and rely on blended learning principles. 

 

Continue to read: How to create an online course?

 

Step 4: Choose the appropriate pricing model 

The pricing model can take many forms, and it depends on whether you are offering in-person or digital courses. A common choice is a subscription on a monthly or yearly basis. You can also separate the model in various stages, from basic to advanced, where in the latter participants get access to all the features or tools in your business. For physical courses, an hourly rate per session is very common.

 

Explore: How to correctly price your course

 

Step 5: Develop training courses and create materials 

Training materials, including video lectures, readings, assessments and tests, are fundamental to the course. The materials should be tailored to the customer base and include techniques that they grasp. You should also include visuals which keeps them engaged and interested throughout the course. Consider whether you want to use digital tools and platforms for online courses or video conferences as well.  

Tips! Evaluations and feedback from participants on the course material are also key to developing the best course possible.

  

Step 6: Market your business and course catalogue  

You must build your online presence and market yourself through social media and your own website. The website should be optimised for the search engines, so that people can organically stumble across your website when they search for «training provider» or «courses in design» on Google. You should also use social media channels proactively to build an online community, where you can connect with potential participants and spread the word about your course catalogue.

Another advice we would give you is to take advantage of your course calendar – and promote this on all marketing channels, including keeping your former and current participants updated on upcoming courses. In the FrontCore TMS, you can access a customisable booking module that will be seamlessly integrated to your course calendar and online payment solutions. By customising the course calendar and booking solution, you ensure that your future customers are exposed to your brand identity from start to finish.     

 

Ready to market your courses? Read our best advice 

 

Step 7: Measure success and implement changes as needed

Surveys and feedback forms will help you measure your success and identify areas of improvement. You should track what participants are satisfied with and what they are less satisfied with, including the learning outcome, learning material quality, and flexibility. 

 

After you have set up your training company 

You must ensure that you are competitive on the market as well. Explore our tips for how to maintain a competitive edge on your competition. 

 

Consider the overall cost of setting up a training business

The cost of setting up your business depends on your starting point and what you need to get the business up and running. This will impact the scope and determine what you can offer from the start. We recommend that you get advice from a mentor, someone who has been or is in the same industry that can share some insight into what it requires – financially and otherwise – to set up your business. 

The costs vary depending on various factors, therefore you should consider the following questions: 

• How much time do you anticipate     spending with your client base? 
• What kind of materials do you need? How much and which format?
• Do you have access to infrastructure, like an office or a learning management system or training management system? 
• What is your marketing budget? 
• Do I need to build a team and outsource tasks and responsibilities to someone, i.e. marketing and sales or HR? 
• Operating expenses like insurance
• Additional funds for qualifications, registrations or certifications

 

Ready to sell your course? Read more about how to go about it and how to ensure that your course business is profitable here 

 

Do you want to offer accredited courses? 

Then you must keep track of various providers of accreditation, which is listed below: 

• The UK Register of Learning Providers (UKRLP) is a collection of approved training organisations in the UK. The number will identify you as an official government partner.
• Find information on the application process to become an accredited partner at the Education and Skills Funding Agency (ESFA).
• Apprentice Provider and Assessment Register (APAR) lists approved training providers, where you want to register your new training business.
• The Office for Standards in Education, Children’s Services and Skills (Ofsted) regulates standards and ensures quality learning environments
  
• Consider the awarding body, which is an examination board that sets exams, standards and awards qualifications. Which awarding body you should comply with, depends on your business and which qualifications you are training. Examples are Pearson Excel, SFJ Awards, VTCT, NCFE, AQA. 

 

Qualifications that are needed for creating accredited courses 

There are qualifications related to teaching and assessment that are necessary if you want to offer accredited courses. You want to ensure that your qualification level is consistent with the level of courses you offer. Meaning that if you only have a Level 1 or 2 qualification, you should not offer training in something you are not competent in.

• Level 3 Certificate in Assessing Vocational Achievement (CAVA): This enables you to assess learners in their workplace and learning environment
• Level 3 Award in Education and Training (AET): This is essential to anyone who wants to teach, whether in groups or individually
• Level 4 Award in the Internal Quality Assurance of Assessment Processes and Practice (IQA)
• Level 4 Certificate in Leading the Internal Quality Assurance of Assessment Processes and Practice (Lead IQA) 

You will need at least one Assessor and one IQA, these must be held by two different people. As a training provider, you cannot be both.

 

How to become an accredited training provider in the UK? 

1. Apply for your UK Provider Register Number from UKRLP
2. Comply with the instructions from ESFA
3. Apply to APAR using the Register Number 
4. Ofsted will inspect your training facilities 
5. Hand over documentation 
6. Align and comply with applicable standards 

Important! Be transparent with your accreditation, as many training companies are vague about it. This makes it difficult for participants to assess which course provider they should choose. 

 

A summary of the most essential points that we have brought up in this article: 

The target group: Who is your ideal client? You want to work with someone who will benefit from your training services and who are likely to see the value in what you offer.

Your goals: What are the short, medium and long term objectives for the business?

Define how your training services will be profitable: Consider your areas of expertise and course design, in addition to the demand within industry and among your target market. You must consider training fees and prices.

Your business model: Are you offering workshops on set topics, bespoke packages, or virtual library (subscription)? Do you have access to the necessary digital tools and softwares?

Convey the value to the client: Why should they choose you over someone else, and how will they benefit from your services? Speak your clients’ language and to what they need and what they value

Financial capacity: What levels of costs do you project and how much money do you have in the bank? 

 

Use our TMS when you start your own training company 

A training management system will make all administrative tasks associated with your course catalogue much easier. Explore our customer success stories to get a better understanding of how we have helped other businesses like yourself. 

Explore the TMS 

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