Analysis On The Business Model Of K12 Extracurricular Training Company From The Perspective Of Finance

With the increasing importance of education,the education resources in the public education system are limited and it is difficult to meet the increasing educational needs of the market,so the K12(Kindergarten through Twelfth Grade)extracurricular training industry arises at the right moment.However,K12 extracurricular training company also exposed a series of problems such as illegal operation and non-compliance in the process of brutal growth.In 2018,the Ministry of Education and relevant departments started a special crackdown on this.At present,the market competition of K12 extracurricular training company is increasingly fierce,and it has shifted from fighting for the incremental market to fighting for the stock market.As the leading enterprise of K12 language education and training in China,Lischen has also begun to change its business model,expand online business and look for new growth points.In order to evaluate the impact of the business model on the enterprise,this paper evaluates and analyzes the business model of Lischen from the perspective of finance,and puts forward corresponding suggestions.To a certain extent,it has certain reference significance for the transformation and development of other extracurricular training institutions.This paper adopts the single case study method and selects Lischen as the case study company.In order to more directly understand the impact of business model on enterprise finance and its embodiment in specific business,this paper draws on the existing business model research framework based on the financial perspective as an evaluation framework,and carries out a specific analysis from the three financial dimensions of profit-driven,resource allocation and value creation.At the same time,compared with the same industry in the process of analysis,so as to better understand its situation in the whole industry.According to the logic that business determines finance and finance reacts on business,this paper expects to optimize Lischen’s business model by improving financial management.Through the evaluation and analysis of Lischen’s business model,it can be found that there are some worthwhile experiences in Lischen’s business model,which are summarized as follows: First,joining mode accelerates market expansion;Second,investment in off-balance sheet assets increases core competitiveness.But at the same time,there are also some problems: insufficient profit drive,unreasonable allocation of resources,ineffective value creation.In order to obtain better effect of the business model of the enterprise,but also for the sustainable development of the enterprise,according to the analysis results of the enterprise business model evaluation from the perspective of finance,the development of the business model of Lisichen put forward suggestions: First,to ensure the quality of the franchise model,play to the advantages of the franchise model;Second,optimize the teaching team and teaching content and service,improve the market competitiveness;Third,strengthen cost control and reduce operating pressure;Fourth,to develop the asset-light model and optimize the rational allocation of resources;Fifth,we need to enhance the growth capacity of enterprises.