Early repayment can make an enterprise or bring down a giant. Affected by the epidemic, the 17 educational institution established in 2020 won the education and closed down under the triple pressure of franchisees, parents and employees. K 12 online education is over, and little arrow learning is king. In the face of parents' crusade, employees' rights protection directly collapsed. The outbreak of such a large-scale time has a lot to do with the pursuit of rapid expansion, large-scale misappropriation of advance payment, and excessive optimism leading to the break of the capital chain. Early repayment is the default rule in the education industry. Due to the particularity of teaching, the prepaid mechanism is reasonable, but the risk of practitioners is also huge.
Prepayment can bind users and reduce losses. First of all, the education industry has its particularity. We also use fitness cards every day, which can urge us to stick to it, because fitness is too easy to give up. The same is true of the education industry. Although it is not a pleasant thing, it must be done. Paying in advance is a restriction. In the education industry, whether it is a culture class or a professional art class, learning is a long-term undertaking, which cannot be learned in a day, a week or a month, so long-term learning requires long-term investment.
Early repayment can form a fund pool. Capital can influence the market and bring opportunities. If there are enough funds, under normal operating conditions, the operation of funds can bring better returns. At present, the cost of the whole industry is rising gradually, and customers, rents, teachers and brand operations all need continuous cash flow. However, it is very important to control and grasp the cash flow. The risk of misappropriation of advance payment is great, and enterprises lacking risk control ability are prone to fall into crisis.
The introduction of the new policy has both advantages and disadvantages. The introduction of the new policy stipulates a three-month charging standard, which is beneficial to consumers and avoids the emergence of enterprises, and consumers' money is entangled and cannot be taken out. If implemented in this way, enterprises have almost no fund pool except operating costs. The advantage is that some investors who just want to make money quickly are eliminated and the industry atmosphere is standardized. But in this way, the development space of the education industry will not be so large, and it will not be able to expand effectively, and the valuation will not go up. Enterprise development will be slow, it is difficult to produce large institutions, and funds will not be invested. This is also a problem. The education industry is not only a simple commercial organization, but also needs to export good education, and the long-term is the foundation.