How To Start a Tutoring Business In 2021 | Expert Guide

How To Start a Tutoring Business
How To Start a Tutoring Business

The COVID-19 pandemic has opened up a lot of opportunities in the education sector. One of such opportunities is the ability to start a tutoring business.

Setting up a home tutoring business is a great way to earn some supplemental income or even make a career change if you’re successful enough.

Here I will be showing you how to start yours.

Tutoring is needed by students at all levels of education, from elementary to college, and on various topics.

According to the Research And Market report, amid the COVID-19 crisis, the global market for Private Tutoring estimated at US$173.4 Billion in the year 2020, is projected to reach a revised size of US$279.3 Billion by 2027, growing at a CAGR (compound annual growth rate) of 7% over the period 2020-2027.

So, to help you tap into this opportunity, this

Here is a table of what to expect.

How To Start a Tutoring Business In 2021

There are several ways to follow to start a tutoring business from home either online or offline. You can sign up to work as a contractor on one of the many online tutoring companies such as Chegg, Brainfuse, or Tutor.com. On the other hand, you can open your own.

Regardless, here are the steps to follow to start a successful tutoring business:

  • Be sure a tutoring business is right for you
  • Know your expertise
  • Make a list of potential students
  • Decide how you Will offer the tutoring services
  • Plan your budget
  • Carry out some market and competitive research
  • Gather the materials you’ll need to provide tutoring services
  • Decide on your pricing and policies
  • Choose a business name
  • Deal with financial and legal issues
  • Draw up a plan to bring in clients
  • Map out a marketing plan
  • Ask for assistance when you need it

#1 Be Sure a Tutoring Business is Right for You

Before starting any business, you need to answer some questions to determine if the business is a good path for you. As an aspiring tutor, you need to be sure that you want to teach or even own the business.

According to Caitlin Meister (founder of the Greer Meister Group, a practice of private educators who tutor kids throughout the New York City area), “If you only want to teach, you are best off working with an established tutoring practice that can handle the myriad demands of running a business and free you to do the best teaching you can do. On the other hand, if you have the entrepreneurial spirit to launch a new business in the midst of a pandemic, a strong source of initial client referrals, and strong credentials that you can communicate well, there is definitely an opportunity.” 

#2 Know Your Expertise

Tutors can provide assistance in almost every subject that students take from elementary school to high school all the way through college.

So, before starting a tutoring business whether online or face to face, answer these questions:

  • What type of tutoring will you specialize in?
  • Will you focus on younger kids, test prep, subject-specific tutoring, or special needs students?
  • Do you prefer group tutoring or one-on-one?

Now, break down the grade levels and subjects with which you are comfortable enough to tutor students.

In addition, you can boost your business simply by embracing the basics that parents are looking for. For instance, those common topics where students need help like math, English, and science from elementary school through high school. Also, many college students need help in these areas and in subjects specific to their majors.

#3 Make a List of Potential Students

Based on your expertise, that is the subject and level you want to tutor, draft out the people who are most likely to hire you, and where you will find them.

#4 Decide How You Will Offer The Tutoring Services

Do you want to tutor locally or only online? Or do you want to do both?

If you’re going to tutor local students(one on one), where will you conduct the sessions? Make sure you check with your local city/county zoning department if you plan to tutor in your home. Also ensure you have good liability insurance, in case your student gets hurt on your premises.

#5 Plan Your Budget

If you want to set up your own tutoring business, having a sustainable budget and sticking to it is a big part of being a successful business owner.

Here some factors to consider when planning your budget

  • The business costs you may incur to set up your tutoring business.
  • The right materials and supplies (Do you have them? If no, can you obtain them?).
  • New equipment or dedicated space you need to work.
  • Your living expenses (How much money will you need to cover them?).
  • Your pricing (Is that enough to be profitable?)
  • Business type (Will you hire other tutors or do it all yourself in the beginning?)

In a situation where you plan to quit your job to pursue a career as a private tutoring entrepreneur, it’s advisable to set aside money to cover at least three to six months of your living expenses.

However, you can decide to continue working while you launch your tutoring service, then use the money you’ll get to build a savings account to cover lean times that may arise when you’re ready to quit your job and run your business full time. 

#6 Carry Out Some Market And Competitive Research

Invest time in market research and know your competition in the tutoring service. Then answer the following questions honestly to ascertain the likelihood of your tutoring business success: 

  • What are the other tutoring businesses in your location? 
  • What do they specialize in? The subjects and grades.
  • How much do these tutoring centers charge?
  • What difference will you bring; How can you set yourself apart from them?

#7 Gather The Materials You Will Need To Provide Tutoring Services

There are many teacher stores (both online and offline) where you can get workbooks and other materials to assist in tutoring. If you plan on tutoring online, ensure you have a good webcam with clear audio. Also, consider using a service that allows for digital whiteboard writing.

#8 Decide On Your Pricing And Policies

After carrying out your market research and knowing what others charge, consider other factors that affect pricing in the tutoring business such as the topic and grade level you’re instructing. Weigh them and place your price(s).

While doing this, also bear in mind that the more advanced the topic and grade, the more money you should charge.

#9 Choose a Business Name

The next step is to create a name, a logo, and a tagline or catchphrase for your business. Ishmael Brown, Jr., president of the National Tutoring Association (NTA) recommends that you choose something that is kid- or family-friendly.

Nevertheless, you can operate your business under your given name or you can create a business name or a combination of both. Better still, ask for other people’s opinions on the name.

Also, search for the name in Google to make sure other companies aren’t already using it — this will help you to stand out.

It is always important to know of any local laws or regulations surrounding tutoring. For instance, in some areas offering group tutoring to home-schooled students could mean that you need to register as a private school.

So, make sure you obtain needed permits and licenses as required by your city or county.

Also, speak to your tax accountant about what kind of business structure is best for your company. In addition, consult with a small business lawyer to find out about local ordinances, liability issues, and other aspects of business ownership. 

#11 Draw Up a Plan to Bring in Clients

Write a business plan, outlining all aspects of your tutoring business, and how you plan to grow it. Remember your clients are the core of your business.

So, as someone who’s starting tutoring service for the first time, you need to figure out who or what their initial source of clients is going to be.

Do you have any friend, family member, or colleague who works with children, is trusted by families, and can recommend you? You can also get clients through another tutor who has more students than they can take on, a pediatrician, a music school director, or a coach of a kids’ sports team, says Meister.

#12 Map Out a Marketing Plan

Once you’ve connected with a potential client, you need to be able to communicate the credentials that set you apart from other new tutors and your value in order to strengthen your initial success.

Word of mouth is a great way to begin accumulating clients, but a website or an online presence will also go a long way to build your brand and your tutoring business. This is because many parents—even those who hear positive word-of-mouth recommendations—may not take your business seriously if they can’t find more information on the internet.

So, a good tutoring marketing plan will include a website where people can learn about you, a networking strategy, such as through schools, and a referral system. This is a vital plan of action you must take to start a tutoring business.

#13 Ask For Assistance When You Need It

Don’t be afraid to ask for help. Also, don’t take any of those business relationships for granted once you develop them. Network, ask for advice, and learn from other people. 

Networking groups like Lions Club International or Rotary Club and organizations like the Small Business Administration offer excellent resources for new business owners.

Final Thought

Tutoring business is one business that will stand the test of time.

Although starting up a new tutoring business can be a bit difficult just like other businesses, but if you invest time and energy and provide follow the steps above, soon you’ll be the one offering advice to other tutors opening a company.

I hope this helps you in making meaningful decisions.

Good Luck And Success!!!

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