If you want to get your tutoring business off the ground now, right from your home, you have come to the right page. Tutoring business is a very lucrative way to earn money by following your passion for educating others. Currently, tutoring is almost an $8 billion industry, and it is just going to grow in the coming years. Tutors are always in demand as there is no end to education and studies. Today, we will walk you through the steps involved in starting a tutoring business and the mistakes that you can avoid as a start-up tutor.
Starting a Private Tutoring Business from Home
You can start a tutoring business with just one or two students as your part-time hobby. However, once you decide to grow it, you will need some amount of planning.
The business is ideal for current or former teachers. However, if you are a people person and love teaching one-on-one, this is a great career field. Home tutoring needs diligent planning as you will have the responsibility to manage many students from different batches, collect and make notes, keep track records, market, and have excellent time management skills.
A typical schedule of a home-based tutor involves conducting pre-scheduled classes, reviewing emails, correcting student’s progress sheet, keeping yourself updated with latest learning tools, and interacting with your students to develop a rapport.
Typically, home tutors charge clients per hour wise fee. Your education experience, the subject, and the average market price will determine your price. The scope is, and you may eventually end up hiring more tutors as an expansion strategy, provided you can follow the steps thoroughly.
There are different types of tutors; what you want to be, the choice is ultimately yours. You either can help struggling students to cope up with their classes or help students prepare for special examinations or advanced studies.
Getting It Started
Required Skills for Starting the Business
You need to have a visible degree or certificates in your chosen subject. Your credentials will help you advertise yourself better in the market. Other skills that are required to start a tutoring business include effective communication, interpersonal skills, business management to tackle your business solely, and time management skills to maintain a set schedule.
Choose a Niche
There are different niches you can focus on tutoring. You can become a teacher for special subjects, like German or Hindi language or Mathematics for all grades, specialize in the primary, secondary, higher secondary or UG students, or focus on teaching students with special needs. Your rates and opportunities will vary depending upon the choice you make.
Budgeting Your Start-Up
The best part of starting a home-based tutoring business is you will not require a lot of money to start this. You don’t have to buy or rent anything. All you will need is a computer for research and marketing purpose, good internet connection, a telephone line and a spacious room where you can teach your children. Since it will be a one-on-one class, you probably may not need a blackboard as well.
Most of your capital fund will go towards marketing and promoting your business. You may have to hire a marketing team to do your job. You will also have to possibly invest in bookkeeping software to help keep track of your accounts payable and receivable. You should be able to start this with a meager budget and can break-even in 2 – 3 months.
Legal Steps Involved in Starting Tutoring Business
To make sure your business legally is compliant, follow the steps mentioned below one after the other:
- A Solid Plan: Consider your target market, develop a business aim and mission statement, budget your initial costs and research your industry competitors.
- Scope out Competitors: Check the tutoring businesses in and around your area and see what they specialize in. Understand how they run the business and determine how you can set yourself apart.
- Choose a Business Name: Make sure your company name is unique, easy to remember and relevant to your occupation.
- Register Your Business as a Legal Entity: This will protect your assets from being hampered, in case the business runs into a loss or is prosecuted.
- Open Bank Account: A separate bank account will keep your business organized. It will be useful while determining your professional and personal costs incurred separately.
- Obtain Necessary Permits and Licences: Each business requires to obtain different permits and licenses. Contact your local state authorities to understand your obligations. Failure in obtaining this can lead to fines, if not shutting down your business.
- Create a Brand Image: Branding is highly crucial to set your business apart from the rest. ‘What value does your business give out’, ‘what is so unique about it’, ‘is there a special service you also offer’ are some of the questions you need to consider while developing your brand image.
- Get Insurance: A business insurance policy will protect you and your assets from unforeseen hiccups. If you plan to hire employees in the future, you’ll also have to acquire a worker’s compensation insurance.
- Create an Online Presence: Develop a website to make your clients aware of your services and rates. A website will also help you strategize online marketing on social media.
Create a Marketing Plan
Your target market should be the local families around you. One of the best ways to promote a home-based tutoring business is through word of mouth advertising. Reach out to schools, children’s libraries, kids’ sports clubs, and other relevant places to tell them about your services. You can also leave flyers and business cards with them.
Start a blog and focus on offering tips on tutoring, coaching, and educating children. Share the links on social media. Offering tips and information will make you seem like an authority in your field to parents and families.
Tutoring is all about investing in people who are in need, so it becomes essential that you build a community via your social media handles and spend more time convincing how your services can help students learn and grow.
Common Tutoring Mistakes You Can Avoid
Start-up business owners often struggle and so will you. Making connections and connecting the dot is very important in home-based businesses. You have to put yourself out there and voice your services. Although tutoring has its own challenges, you can sidetrack them graciously if you understand how to avoid the common mistakes tutors make:
- Don’t Start Spending Too Much on Online Marketing initially, including developing a website. It is an expense; get some simple business cards done and try to get business through referrals from friends and family.
- Don’t Tutor From Your School or Your Former Students. It is always better and safer to not mix both professions. It will put your professionalism in jeopardy. For instance, the parents of the students you tutor may start asking favor during school hours and it may become awkward for you and may seem impartial for other students.
- Do Not Undervalue Your Experience, neither Undercharge. What you charge should reflect your experience in the subject. In fact, your skills can get the job done in less time than what professors take. If you are worth it and if you have unique skills then you shouldn’t hesitate to charge at least $20 more.
- Don’t Crow with Too Many Students. Tutoring is all about providing a personalized, one-to-one learning experience. If you crowd too many students in a session, it will be equivalent to a classroom environment. That is not your ultimate purpose. Make sure you screen each student and his family to know if the kid really needs tutoring or not.
- Don’t Invest in Extra Curriculum Accessories, such as school supplies, furniture and so on. Keep your overhead costs low. A few highlighters, markers, copies, and pen and pencil should be more than enough to build a business out of tutoring.
- Don’t Be Afraid to Follow-Up for Payments, even if you are close to the family and the student. It’s your business, and soon you’ll be earning an income out of it. You cannot allow people to take advantage of you. If you are hesitant to directly call and ask, shoot a professional email or send a text message. If it becomes extremely annoying, ask for advance payments.
- Don’tHesitate to Ask for Professional Help, if you are unable to address a problem directly. Students may encounter challenges that you may not know how to handle, including speech problem, dyslexia and so on. Therefore, you should request your colleagues for their advice. You can also join relevant communities for gaining wisdom on the subject.
- Don’t Promise for Instant Results. You have to be completely honest with the parents about your service. You cannot quick fix a child in a few weeks. You, in fact, need to analyze his weaknesses and then form an effective plan to help him/her. Students should also practice at home for improvements, especially kids with special needs. Be honest about it with the parents.
The rewards are amazing, but only if you put enough efforts and stay consistent. If you have any questions that need to be discussed, mention them in the comments below.