Starting a tutoring business can be a very profitable venture. Not only is the demand for tutoring services high, but the overhead costs are low. In order to start a successful tutoring business, there are several important steps that must be taken.
Here are the 10 steps you can take to get started on building your very own tutoring business.
10 Steps to Launching a New Tutoring Business
1. Choose Your Type of Tutoring Business
The first step in launching a tutoring business is to identify the type of tutoring business you want to launch. You might choose from the following types among others:
- One-on-one tutoring
- Group tutoring
- Online tutoring
- Academic coaching
2. Name Your Tutoring Business
Give your tutoring business an identity so people will think of it as a well-known and respected brand. You can take the name of your tutoring business from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your tutoring business is to make it sound appealing and trustworthy so that potential students and their parents will feel confident in your abilities.
3. Determine Your Tutoring Business Model
There are several possible types of business models for a tutoring business including:
- Individual tutoring: You provide all services directly to students.
- Franchise: You purchase a license from an existing company to operate under their brand name and business model.
- Online tutoring: You provide all services online through video conferencing, email, or chat.
No matter which model you choose, make sure that it aligns with your business goals and the services you offer.
Read more about choosing the right business model for your tutoring business.
4. Choose a Legal Form for Your Business
By incorporating your tutoring business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your tutoring business will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common tutoring business structures.
5. Write a Tutoring Business Plan
All tutoring business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your tutoring business plan and strategy, you should think about the following questions your customers might have:
- What services do you offer?
- Do you have any qualifications?
- How much do your services cost?
- What is the duration of each session?
- Where will the tutoring sessions take place?
- When are sessions available?
- Are there any restrictions on who can be a customer?
- What methods do you use to deliver services?
- What are your company’s core values?
- Do you have any competitive advantages?
After answering these questions, you will have a good foundation on which to build your business plan.
Read our article about how to write a tutoring business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your tutoring business.
For example, if you plan on operating a tutoring business out of your home, you may need to obtain a Home Occupation Permit from your city or county.
Other common business licenses and permits for tutoring businesses include:
- Business license
- Sales tax permit
- Child care license
You must also register your tutoring business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
7. Determine Your Budget & Apply for Funding as Needed
In developing your tutoring business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your tutoring business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your tutoring business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a tutoring business to help you determine if funding is needed.
Read our article about how to fund your tutoring business.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your tutoring business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in a project management system to help keep track of your students’ progress, schedules, payments and more.
Tutors benefit from purchasing customer relationship management software to keep track of their students and parents.
Read our article about the technology and software you need to run a tutoring business.
9. Market Your Tutoring Business to Potential Clients
Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the tutoring industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Tutoring businesses should consider the following promotional strategies for which you should start getting prepared:
- Create a targeted marketing campaign specifically for parents of students who are struggling in school
- Sponsor a charity golf tournament or 5k race and donate a percentage of the proceeds to a local school organization
- Offer free consultations or assessments to potential clients
- Distribute flyers and coupons in local businesses and schools
- Collaborate with other local businesses to offer discounts to customers who use your tutoring services
- Speak at local parent-teacher association meetings about the benefits of tutoring
- Give free presentations about the importance of education to local groups and organizations
Read our article about how to market your tutoring business for more tips.
10. Get New Clients & Grow Your Business
When you promote your services, you’ll start to get interest from potential clients.
Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your tutoring business.
Read our article about how to effectively grow your tutoring business to learn more.
Starting a Tutoring Business FAQs
There are many reasons to start a tutoring business. As a tutor, you can make a difference in the lives of your students by helping them improve their grades, build confidence and develop important skills. Tutoring is also a flexible business that can be done full-time or part-time, and it can be operated from home, which saves on overhead costs.
To start a successful tutoring business, you need the right mix of skills, experience, knowledge, technology and marketing. You also need to be passionate about helping your students succeed.
Starting a tutoring business from home is a great way to save on overhead costs. To get started, you’ll need a computer with internet access and accounting software for tracking expenses and revenues. You may also want to invest in customer relationship management software to keep track of your students and parents. Once you have the necessary technology in place, you can start promoting your business through social media, networking and other marketing channels.
Starting an online tutoring business is a great way to reach a larger audience of potential students. To get started, you’ll need a website and the necessary technology to provide tutoring services online, such as video conferencing software. You’ll also need to promote your business through social media, search engine optimization and other online marketing channels.
Ensure that clients can book your services online too.
Here are a few tips to help you get started on starting your own tutoring business:
- Choose the right business model – There are several different business models you can choose from, including one-on-one tutoring, group tutoring, online tutoring and franchise tutoring. Each model has its own set of pros and cons, so it’s important to choose the one that best fits your needs and goals.
- Find the right niche – When starting a tutoring business, it’s important to find a niche market that you can serve. This will help you target your marketing efforts and attract the right type of students.
- Invest in technology – Tutoring is a technology-driven business, so it’s important to invest in the right technology to deliver your services. This includes a computer with internet access, video conferencing software and customer relationship management software.
- Promote your business – Once you have your business up and running, you need to promote it to attract students. There are several marketing channels you can use, including social media, search engine optimization, pay-per-click advertising and print marketing.
A simple checklist to use when starting a tutoring business is as follows:
- Choose Your Type of Tutoring Firm: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Tutoring Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Tutoring Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Tutoring Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Tutoring Business to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services.
Starting a tutoring business can be a great way to help students learn in a personalized setting. There are several things you need to do before launching your business, including choosing the right type of tutoring firm, naming your business, writing a business plan and getting the necessary permits and licenses. You also need to invest in technology and promote your business. Following these steps will help you set up a successful tutoring business.