How To Start A Tutoring Business

How To Start A Tutoring Business - Background Info:

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Home tutoring has been around for many years, but it has recently become more prevalent. Just look at all of the tutoring centers opening up everywhere.

Tutors can help kids who have trouble learning do better in school, giving them more options when they grow up. But tutors aren't just for elementary and high school students. College students often need help grasping concepts in their schoolwork as well.

Schools today put more and more pressure on students to perform. Classroom crowding means that most teachers are unable to provide the individual support that many children need. Parents are often seeking one-on-one help from tutors. A child's tutoring service can provide individual training in areas of reading, writing and math along with other specialized areas.

Tutoring is a business that you can get into without expensive equipment, office rentals, or complicated licensing, and it is a rewarding and challenging job.  Whether you are a professional looking for some extra money, a stay-at-home parent who wants to earn income, or a retired person who wants to help others, a tutoring business allows you the freedom to work from home and the luxury of being your own boss.

Tutoring is a lot like teaching, except you are given the opportunity to work with students on an individual basis.  Students who are struggling in school may have a better shot with your tutoring. 

Tutoring is a rewarding business. It gives you the chance to make a difference in a child or young adult's life. The ability to conduct business exclusively from home and the low costs involved make a tutoring business an attractive choice for home-based entrepreneurs.

How To Start A Tutoring Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running and starting a tutoring business:

• Bookkeeping
• Planning
• Scheduling
• Filing

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a tutoring business:

• Appropriate level of academic knowledge for the students you tutor.
• Ability to teach concepts in simple, easy to understand ways.
• Meet with parents for progress reports.
• Meet or speak with teacher(s) for evaluations and suggestions.

How To Start A Tutoring Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - After-school hours, evening, and weekend hours are best for students who need tutoring.

Hours Needed to Prepare - Before Opening and After Hours Activities - Plot lesson plans for each student, schedule meetings with parents and teachers, return calls, email.

Starting A Home Based Tutoring Business - Number of Employees Needed

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

• Website maintenance
• Record/Bookkeeping
• General office
• Customer Service
• Additional tutors

Here some of the skills necessary to run this type of business other than the necessary business skills:

• Patience.  This is true in any business but especially when you’re going to be working with students who don’t understand a concept.
• How to put concepts into easy-to-grasp terms for different ages.
• Knowledge in course(s).
• Great personality; get along with different ages and types of people well.
• Good intuition as to what students need or how best to teach.

Licenses:

While you don’t need a license to be a tutor, you may need a license or permit to operate a tutoring business out of your home.  Check on your state’s official webpage or contact your city hall to see if your area requires one.

There are no specific skill requirements such as certification that you will need to start a tutoring business however if you have a degree in the area that you are specializing in it will definitely help your credibility. Also if you have any prior teaching experiences that will also help you market yourself.

Approximate Minimum Start up Cost For Starting A Home Based Tutoring Business:

Bare essential: - The initial financial investment for starting your own tutoring company is very low.  A good rule is to only buy what you need. You can go to a school or teacher supply store and buy all kinds of interesting materials, but keep in mind that you only really need the basics, especially at first. 

You can get started for under $100 for supplies, business cards, and fliers.  You may also want to put an ad in your local newspaper.  Otherwise, you can contact local schools, after school centers, teachers, and your friends to tell them that you’re available for tutoring.

Owning a tutoring business requires very little investment in money.  The investment in time is greater, but it is still flexible enough that you can arrange your time as you see fit.  Beginning with the basics, yourself, a student, and a space in your home or at the library, is a great way to get into the business. 

Minimal exposure - Minimal exposure for advertising will run $500 to $1,000 to start.

Word of mouth is often the most effective way to promote a tutoring business. Satisfied parents will often spread the word to other parents in need of your services, and before you know it you might have enough students to provide a full-time income. Enlisting the help of local schools and teachers can also get you referrals.

Fliers and classified ads are inexpensive ways to advertise if you choose to do so. Ads in the school paper are cheap and can make their way in home to parents. You could place your fliers in laundromats, libraries, grocery stores, and other places that parents might see them. If you are tutoring college students, you can often place fliers in specified areas of the college itself.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

• Computer
• Printer
• Cell phone
• Website
• Paper
• Pencils/pens
• Scissors
• Glue
• Tape
• Paperclips and/or stapler
• Envelopes

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

• Laptop
• Teaching software
• Textbooks
• Reference material
• Course software
• Second computer for students to learn with and on
• Office desk with drawers

Monthly Expenses To Consider:

• Wages
• Phone/cell phone
• Internet access
• Certificates (higher learning)
• Advertising/Marketing
• Electricity
• Snacks/drinks

Special Requirements and Considerations For A Tutoring Business:

• The tutor can tailor the lesson to the individual student. It's sometimes a challenge when the student isn't very motivated, but it's rewarding as well to find the way in for just that person.
• Taught without the pressure of peers or authorities, many students learn through tutoring what they don't absorb in a classroom. As a tutor, you'll customize what you teach to the level and needs of each of your students. While tutors who specialize in computer topics will need equipment for their students to use, most tutoring requires little in terms of books or materials.
• Beyond academics, you can also teach or tutor any skill someone wants to learn. Music, the arts, and sports like baseball and tennis are a few such areas where both children and adults need additional help. And remember, it's going to be easier to sell yourself if you have teaching experience or are degreed in the subjects you're tutoring.
• Success for a tutor is usually defined by the increase in their tutees' school grades. It only takes one satisfied parent to begin building your tutoring business. When parents are pleased with their child's progress, they are eager to pass along the name of their tutor. Thus, success is also measured in the number of queries a tutor gets from potential clients.
• Tutoring is not teaching. Different skills and strategies apply. Research proves that more effective tutoring results when clear steps are followed to help the student achieve independence from tutoring. Dr. Ross MacDonald’s book entitled, The Master Tutor, is internationally heralded with success repeated each time it is followed.
• Be happy tutoring but learn how before you begin. It is not how much you know but how you help the student learn it on his/her own.
• Consider tutoring your students in an innovative and non-traditional manner, such as online. Many students don’t want a stranger (even if it is a tutor) in their home, and don’t want to drive to a session either. In addition, other students don’t have the time to actually meet you during the day due to work responsibilities. Tutoring online reduces the risk of liability and allows you to provide the same service at a competitive cost.
• Know your schedule and only offer times that work for you. It’s easy to get caught up in the excitement of a new client and find yourself over extending yourself to accommodate them. In the end, this will have a negative effect on your service. You might find yourself often late or having to reschedule. If not that, at the very least it will create a great deal of stress on your end.
• Prepare a contract or agreement that you and your clients can sign. Outline both your expectations including payment, price and schedule.

Pros And Cons of Starting A Tutoring Business:

The Pros of Running a Tutoring Business:

• You can work from home.
• You don’t need any special licensing.
• You can fit tutoring in on weekends and evenings, leaving your days free.
• You can tutor online.
• Quick setup.
• Very little overhead.
• After you have established yourself, you can expand your range. When the students continue to do well in their schools, their parents will begin to ask help for their younger siblings

The Cons of Running a Tutoring Business:

• May not be steady work.
• You may not be able to teach certain things to some students.
• Parents may put a lot of pressure on you for their child’s success.
• Students may not want to be tutored and are uninterested in learning.

Type of Customers You Need to Attract:

It's as simple as saying, "I'm a tutor,"--- well, okay, not that simple----but it can be somewhat easy. Simply spread that word among your family, friends, neighbors, church, etc. that you have opened a children's tutoring business. Let them know what you are specializing in and more than likely your first student or students will come from friends or neighbors.

Besides sharing the word among friends and family, it would also be beneficial to let your local schools know about your services. Call and speak to the principal or teachers that work in the area that you are specializing in.

In addition, there are many online schools today, so consider reaching out to those students as well with your advertising.

Tutoring Business Statistics:

Because the tutoring business varies in need and demand around the world, please see BizStats or USA.gov for current information.

Revenue:

Tutors normally charge between $15 and $40 an hour for their services. Rates are dependent on the subjects and the levels that are being tutored as well as the location where the services are offered. Naturally, services offered in larger cities will cost more.

The potential earnings from a home tutoring service are really dependent on the efforts and the commitment of the individual. If more time were allocated to tutoring, then more income will be generated.

There have been tutors who have successfully made an annual income of $10,000 to $15,000 tutoring just 20 hours a week from home.

 

Tutoring Business Resources:

Industry-Specific Websites:

Clever Apple

WealthyTutor

Courses:

Become a Tutor

Clever Apple

Equipment and Supplies:

Walmart and other discount stores for supplies needed.

Forums:

Family and Home Network

Associations:

National Tutoring Association

Books:

Become an English Tutor (ebook)

Amazon books

Software:

Vogue Systems

Homework Help

MathTutor

Other:

The Dollar Stretcher

Helium

Businesses To Related to a Tutoring Business:

• Retired or current teacher
• Teaching assistant
• Daycare worker
• Current higher-level students
• Children's transportation
• Camp director
• Boy/Girl Scout Troop leader

12 Steps To Starting a Tutoring Business

Before You consider a Tutoring Business, see 16 Questions to Consider Before Starting a Business

1. Ensure A Tutoring Business is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How A Tutoring Business Operates

How can you run a Tutoring Business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure There Is a Profitable Market for Your Business

What's the use of starting a Tutoring Business that is not profitable? You'll be putting all your effort in something that can't support itself or you.  There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create A Business Plan For Your Tutoring Business

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Tutoring Business evolves.  Read our free online guide on How to Write a Business Plan

5. Set up Your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your Tutoring Business. 

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.

6. Get A Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Tutoring Business. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Tutoring Business see our guide on Financing Your Small Business

7. Legalize Your Tutoring Business

In order to run your Tutoring Business legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Tutoring Business with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Tutoring Business

In order to run your Tutoring Business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Set up Your Accounting System

Running a Tutoring Business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Tutoring Business. See Setting Up Your Accounting System for more on this topic.

10. Acquire Customers for your Tutoring Business

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See  Acquiring Customers for more on this topic

11. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

12. Insure Your Tutoring Business

Make sure you have the proper insurance for your Tutoring Business. Without the right coverage you could lose everything you've worked for. For tips on insuring your Tutoring Business, see our free online guide:  Insuring Your Small Business.

Tutoring Business Issues:

Estimating Startup Costs - Find out if you're forgetting something

Business Location - Choosing A suitable one For Your Tutoring Business

Build or Buy A Business? - Buying an existing Tutoring Business

Business Builders For Your Tutoring Business:

Starting A Business - Free Online Guide

Business cards for Your Tutoring Business

Business Plan for Your Tutoring Business

Business Insurance for Your Tutoring Business

Small Business Loans Finance Your Tutoring Business

Small Business Marketing For Your Tutoring Business

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