₹0 finishing school for getting hired
India’s unemployment rate has reached 6.1%
- Most colleges don’t push their students to showcase their skill-set.
- Insane population growth and economic slowdown are making matters worse.
- Millions of qualified candidates don’t even get a chance to present to the right recruiters.
While Points 1 and 2 cannot be corrected in the short-term, something can definitely be done about Point 3, by actively helping candidates showcase their skill-set and helping them get connected with credible recruiters.
Is it a problem worth solving?
By 2020, the median age in India will be 29 years; making ours the youngest nation across the world. With 65% of the population under 35 by then, a population of 145 crores and unemployment rate being the same as now; we are looking at 5.75 crore unemployed citizens, who can benefit from this offering, just next year!
A “zero-upfront cost” finishing school for recruitment, which will use a mixture of online and offline guidance, to help technically-qualified candidates get a credible job. This is how it will work:
- Specific career-tracks to be created. For e.g. Digital Marketing.
- Credible companies on-boarded with a guarantee of candidates matching their requirements.
- Rigorous online screening on own platform, to get technically-qualified candidates.
- Intensive 45-day online training to apply and showcase skill-set digitally.
- 1-week long physical training, in the end, to polish soft skills and be interview-ready.
- Partnered companies called for interviews, who get to hire from a handpicked pool.
No upfront cost.
Only if the candidate gets a job for a salary, equal to or above the figure guaranteed, they give 10% of the same on a monthly basis for a year as compensation.
Companies will provide 1/2 month pay for the candidates hired.
In the start, 3 groups of 50 candidates can be selected for connected career tracks. Possible combination: Digital Marketing, Back-End Development, and UI/UX Designing.
- 150 candidates in total, who will be screened and enrolled.
- ₹3,60,000 salary minimum guarantee, with average secured salary being ₹4,00,000
- 85% of candidates securing a job above the salary promised
₹5,000 | Company incorporation expenses.
₹2,00,000 | Online web platform for onboarding candidates and providing online training & support.
₹2,15,000 | Total fixed expenditure
Note: Content for screening and training evolves daily and thus, it will be outsourced and integrated on a recurring basis. No use reinventing the wheel.
Expenditure for Batch 1
₹1,00,000 | Highly-targeted, digital content marketing for 2 months on LinkedIn to get ~500 applicants
₹25,000 | Automated screening test cost to get final 150 candidates (₹50 * 500 applicants)
₹3,00,000 | 2-month salary of 3 mentors, with 1 for each group (₹50,000 p.m. * 3 mentors * 2 months)
₹2,40,000 | 3-month salary of BD personnel to get companies (₹40,000 p.m. * 2 individuals * 3 months)
₹1,80,000 | 3-month salary of an experienced batch manager (₹60,000 p.m. * 3 months)
₹7,50,000 | Content licensing expense from top-rated institutions (₹5,000 * 150 applicants)
₹2,10,000 | Venue and associated expense for a week for soft-skills training (₹30,000 per day * 7)
₹3,000 | Interview hosting and company hospitality expense (₹40,000 per day * 2)
₹1,18,800 | Fractional annual cost of accounts personnel for revenue recovery (₹30,000 p.m. * 12 * 33% time utilisation for Batch 1)
₹60,000 | Platform maintenance expense for 3 months (₹20,000 p.m. * 3)
₹45,000 | 3rd party SaaS expenses, like GSuite for 3 mon9ths (₹15,000 p.m. * 3)
₹30,000 | Compliance and ‘other’ expenses for 3 months (₹10,000 p.m. * 3)
₹0 | Server expense (Cloud companies waive-off server fees for promising businesses for 1-2 years)
₹20,61,800 | Total monthly expenditure
Note: While the costs will scale with batch growth, cost per student will go down due to economies of scale.
Revenue from Batch 1
128 | Candidates hired above the salary guaranteed (150 candidates * 85% success) – A
₹40,000 | Revenue generated per successful candidate over 1 year (₹4,00,000 salary * 10% fee)
₹16,667 | Revenue generated per hired candidate from company (₹4,00,000 annual salary / 12 / 2)
₹56,667 | Total revenue per hired candidate – B
₹72,53,376 | Total revenue from the first group (A*B)
Note: The same assumes only 3 groups (with 50 candidates each). If you start with more groups or more candidates per group, the revenue will be higher.
Cashflow for Batch
₹72,53,376 | Revenue, i.e. inflow
₹20,61,800 | Expense, i.e. outflow
₹51,91,576 | Net monthly inflow
Note: It is assumed that the initial investment is not borrowed. If it is, deduct the EMI from the above amount.
The model is super scalable and cash-positive from the first batch itself. After the initial success, you should try to increase the batch size within the same fields and get more companies within your fold. Growth rate, in this case, depends on your management bandwidth.
Within a year of operations, you can onboard and place 1,000+ candidates.
Good luck! 🙂