When the pandemic hit, there was a massive gap in the education of children who were left with limited schooling. And there is always competition, even without that issue, for children to get the best grades possible. Therefore, over the past 20-30 years there has been a significant jump in the growth of demand for tutors. So in this article, we will be discussing how to start a tutoring business for you.

How to Start a Tutoring Business

Why Start a Tutoring Business?

There are numerous reasons why a tutoring business, for those who have the skills and knowledge, is a good idea. It is certainly a business that brings rewards, with children that you’re teaching able to provide you with an income while also the reward of seeing them achieve their grade goals.

But here are some of the reasons why you might want to start a tutoring business.

See Results: Be proud of the results you have, helping students to achieve their best and get the grades they’re capable of.

Be your boss: No need to report to a manager or someone else. All the responsibility is your
own. Therefore, you can be proud of what you’ve achieved.

Low overheads: Compared to other businesses, the costs for tutoring can be relatively low. All you need is you, your skills, and some basic materials.

Expandable: It is relatively simple to expand this type of business, getting others involved in the business, and offering new subjects and services. You can offer one-on-one, group work, lectures, and more.

Regular Work: Typically, students don’t just have one lesson and go, they tend to have regular students who attend a weekly session. Therefore, tutors have high levels of retention that lead to better success.

Good Rates: Because there is a lot of competition when it comes to children doing well at school and the limited number of people who can tutor, the rates for tutoring can be significantly high. Therefore, you can earn well as a tutor.

How to Start a Tutoring Business

Tutoring Business Statistics

Here are some of the key statistics that might interest you about starting a tutoring business:

  • The global tutoring industry was worth $102.8 billion in 2018.
  • The growth of the industry is expected to be about 15.7% between 2021 and 2028.
  • In the US, the tutoring industry is worth $7 billion annually.
  • Asia accounts for nearly 70% of the global tutoring market.
  • 39% of students who are benefiting from tutoring sessions are in Kindergarten to Grade 8.
  • Over one-third of UK, parents have hired a tutor for one of their children.
  • US tutoring franchises saw annual growth of 1.6% between 2018 and 2021.
  • 98% of parents believe that tutoring does have a positive impact on their child’s success at academic levels.
  • Europe will see steady growth in tutoring demand, with growth expected to be at 10.1% between 2021 and 2028.
  • Online tutoring is very popular with Generation Z, with 58% of tutoring lessons delivered this way.
  • US parents spend an average of $26.43 an hour for tutoring services.
  • The average US tutor can earn about $58,000.
  • Research has shown that one-to-one tutoring can increase a student’s grade by two levels.
  • STEM tutoring is expected to see the biggest increase, with a growth rate of 15% in the next 8 years.

How to Start a Tutoring Business

How to Start a Tutoring Business

Here are the steps that are required when you want to know how to start a tutoring business. Follow these steps to get your new business off to the best start.

Step 1 - Choose a Niche

With tutoring, there are lots of ways to get started. You might want to start a business where you’re providing services to the local community-based at a local office, in a home office, or visiting your students.

Alternatively, you might be looking to start a business where you offer coaching online, to students who could be based across the world.

There are different costs for both and you will need to market your brand in the right way that can help you make a success of your business.

It isn’t just the business model that you need to think about. You should also consider what subjects you’re going to choose. For example, you might want to focus on Maths, English, a foreign language, or science. You might want to offer several subjects. You might also want to focus on a certain age.

Step 2 - Research

Now you need to think about researching the industry that you want to have. When it comes to tutoring there are so many different business models that you can use that you need to do some research into the specific niche that you want to fill.

You might also need to check on the rates for tutoring. If you’re online, then you might need to consider what the rates are across the world for your service. If you’re teaching to the local audience, then you need to consider what others in your area are charging.

All this research will go into building your business plan, which is created in the next step.

Step 3 - Create a Business Plan

Now you need to create a business plan for the tutoring business. The business plan is a simple document that provides lots of different elements that allow someone else to read it and then be able to run your business. It includes the details of what services you’re going to offer, who you’re going to offer those services to, and what you’re going to charge.

The business plan should also detail specifics about your business’ competitors, their strengths and weaknesses, and what opportunities there are for your business.

In addition, you need to think about marketing. What sales channels are you going to use, how much is this going to cost and what is the branding of the business?

There are numerous business plan templates online. You can build a business plan in just a few hours. But you need to make it look good. Numerous third parties might want to see your business plan, including business bank managers, investors, grant companies, financers, suppliers, and more.

Step 3 - Create a Brand

Now you need to create a brand for your tutoring business. A tutoring business brand starts with the name. For many businesses in this niche, the name has something to do with the subject that is covered or the name of the tutor. However, this is not always the case and sometimes you can be looking at other options. To help you, you can use a company name generator to look at the names that you have available. You can try the tool for free here.

Get a Name Idea

How to Start a Tutoring Business

You should also consider how you’re going to market the tutoring business. There are lots of options here and each will require you to develop a brand persona that will help with the positioning of the business and how you communicate with customers.

Finally, you might want to think about registering your business as an LLC. Numerous tutoring businesses do this. Registering a business as an LLC does affect the business name, so do this first.

But having an LLC business does offer additional protections.

Step 4 - Plan your Costs

Now you need to think about the costs of the business. How much are you going to spend on starting the business? There are going to be some costs that you are not going to be able to avoid, like LLC registration, permits, licenses, trade association fees, website fees, etc.

However, if you’re on a tight budget, then you might want to know how you can save on costs.
For example, you could try some of these options:

  • Use existing equipment that you have at home such as your computer, calculator, etc.
  • Buy second-hand equipment or materials.
  • Market on social media with free profiles using MailChimp’s free account or something else.
  • Build your website with Squarespace or WordPress.
  • Don’t travel to clients, instead get them to come to your property.
  • Look around for good deals on your business.

Plan for all those regular and irregular costs. It is also best to add a 10% buffer to any quotes or costs that you get. This tends to mean that you’re not surprised by the costs. And don’t forget that you need to save for equipment repair/replacement and other elements that can stop you from working. And don’t forget insurance.

Step 5 - Marketing

Now you need to consider how you’re going to market your tutoring business. There are lots of options for marketing your business. Lots of people jump on social media and try to market and gain clients that way. While this is a simple option, it doesn’t always work. Social media can be only the first step and fails to help.

Instead, you might need to think about your website, improving your SEO, and other elements to bring in inquiries.

In addition, you might want to register with local schools and colleges to get new clients. You might also want to register with local business directories.

Remember that you are looking for a set of students that come every week. Therefore, as a tutor, you only need between 20 and 40 students to make a decent salary. Therefore, you can use urgency and FOMO to improve conversions.

How to Start a Tutoring Business

Final Word: How to Start a Tutoring Business

A tutoring business is a great way to earn a living in the US and across the world. It doesn’t take much money to start the business, and because of the nature of the business, retention of customers is relatively simple. Fees can also be very lucrative. Above are the instructions you need to know when you want to learn how to start a tutoring business. Good luck with your next venture.

Tutors have a very high success rate. Partly, this is because they can build returning customers at a good rate and there is a high demand for their services.
The tutoring market is worth more than $100 billion globally. The expected growth from tutoring is expected to be about 10% over the next few years.
Establishing a brand is one of the biggest challenges that you will have when you want to start a tutoring business. Trust is a key factor as people need to experience your lessons to learn that you are qualified and a good match.