Part 1: Why most new trade schools fail before they even open.

In partnership with

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Most people think starting a trade school is easy.
Get a name, buy a course, throw it online, start enrolling.

That’s the fastest way to get denied by your state board — or worse, permanently blacklisted from WIOA funding.

Step 1: Choose your entity — and do it right

Before a single class is built, you need the proper business structure.
You’ll need:

• A registered LLC or corporation in your state

• A trade-ready business name (avoid words like “academy” or “institute” unless your state allows it)

• EIN, DUNS, and SAM.gov registration

• A dedicated business bank account

Miss one of those and you can’t receive federal funds.

Step 2: Understand your state’s rules

Every state runs its ETPL (Eligible Training Provider List) differently.
Texas alone has 28 different workforce regions, each with unique requirements.
Some require 3-5 employer letters.
Others demand audited financials or course evaluations.
Most have no published checklist.

If you send the wrong application — even to the right board — you’ll lose 90-120 days instantly.

Step 3: Build your program catalog

Each program must include:

• Course outlines

• Learning objectives aligned with CIP codes

• Credential description (certificate, diploma, or license)

• Instructor résumés (often 2 years minimum experience)

• Job titles graduates can hold

• Tuition and refund policies

You’ll need to upload this in the exact format the board wants — typically a 40- to 80-page packet.
Most people quit here.

Step 4: Secure employer partnerships

Boards want proof that your graduates will get jobs.
They require at least three signed employer commitment letters, each confirming they’ll consider hiring your students.
No letters, no approval.
If your employer letter isn’t worded properly, it’s tossed.

Step 5: Prepare for audits and compliance

Even before you teach your first student, the board wants to know how you’ll:

• Track attendance

• Manage refunds

• Secure student data

• Handle grievances

It’s not optional. They’ll reject you if your policies aren’t airtight.

Step 6: Submit the application

Each workforce region has its own submission schedule.
Some review monthly.
Others only twice per year.
That means missing one window could delay you six months.

We continue on Part 2 - see ya there next week.