Blue Collar Business Schools
Identifying the potential in re-skilling the displaced white collar workforce.
As AI continues to revolutionize the landscape of productivity, it is evident that white collar jobs will see a decline. This leaves a significant portion of the workforce seeking alternative paths to maintain their livelihoods.
One area of opportunity lies in the realm of blue collar trades. These jobs offer a level of protection from AI displacement, can be learned relatively quickly, and allow individuals to utilize their existing white collar experience in managing the business aspects.
A key opportunity presents itself in the establishment of a Blue Collar Business School specifically geared towards this unique demographic. The focus of these schools would be two-fold:
1. Providing hands-on training in the chosen trade, such as electrical services, plumbing, HVAC, carpentry, painting, etc.
2. Imparting knowledge and skills to manage and operate a business in the industry.
Exploring Business Models
As the need for a specialized Blue Collar Business School catering to transitioning white collar workers becomes apparent, it's crucial to consider the various business models that could be employed to generate revenue. Here are some possibilities:
1. Tuition-based model: Charge students a fee for the training program, which covers the cost of instructors, facilities, and resources.
2. Subscription model: Offer ongoing support and resources, such as access to a business management platform, through a monthly subscription fee. This would create a steady stream of recurring revenue and foster a long-term relationship with the students-turned-business-owners.
3. Revenue-sharing model: Take a percentage of the revenue generated by the businesses started by the graduates of the Blue Collar Business School. This would align the interests of the school with the success of the students and incentivize the provision of high-quality education and support.
4. Hybrid model: Combine elements from the models above, such as charging a base tuition fee, offering a subscription-based business management platform, and taking a smaller revenue share percentage.
Estimating the Total Addressable Market
While it is essential to stress that the figures provided here are rough estimations meant to illustrate the potential opportunity, we can attempt to calculate the total addressable market (TAM) for Blue Collar Business Schools. Assuming an average annual revenue of $100,000 per student's business, a 5% revenue share, and 25% of all white collar workers looking for alternatives:
Number of potential students: ≈ 15,892,500
Annual revenue share per student: $5,000
TAM = Number of potential students x Annual revenue share per student
TAM = 15,892,500 x $5,000
TAM = $79,462,500,000
Based on these rough estimations, the total addressable market for Blue Collar Business Schools, considering only the 5% revenue share, could be around $80 billion.
By catering to the specific needs of the transitioning white collar workers, these Blue Collar Business Schools would be addressing a growing demand in the market. As the AI revolution unfolds, the rise of such schools may prove to be a lucrative venture for those who recognize the potential early on. This could be an advantageous path to explore for those seeking to capitalize on the changing dynamics of the job market.