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How to Start a Tutoring Business
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .
Tutoring can be a lucrative side business that you can grow into full-time income. There are several advantages to starting your own tutoring business, like a flexible work schedule and low upfront costs.
If you want to apply your knowledge to help students achieve their academic goals, consider channeling that passion into learning how to build a business. Here are nine steps you can use if you’re wondering how to start a tutoring business.
1. Identify your client
You should start out by deciding who and what you want to tutor, since deciding who you want to sell your services to influences your entire business plan . Here are some questions you should ask about your ideal target client:
Which grades do you want to tutor? The subject matter and teaching style for a high school sophomore will be different from a college freshman or a middle schooler, for example.
Do you want to tutor for a specific test? Many tutors specialize in a lucrative niche (more on this below).
Do you prefer group tutoring or one-on-one? Depending on your preference, you might want to tutor in mini-classes or work with more one-on-one sessions.
Do you want to tutor locally or online? Decide whether you prefer working only with local clients or if you’re comfortable tutoring online, often via video chat.
2. Build your subject matter knowledge
Your expertise will be your money-maker when starting your tutoring business. After deciding who your ideal client is, your next step is to build your knowledge in a given subject. Here's how to do it:
Find a niche to teach: Starting a tutoring business focused on STEM subjects (science, technology, engineering and math) is great because they are in-demand skills. Within those subjects, you can narrow your niche even further by focusing on trigonometry or how to write a college-level research paper. You could also find a niche in a standardized test, like the SAT (for college admission) or LSAT (for law school). This can be a highly profitable route — an SAT prep course from The Princeton Review can cost up to $899.
Assess your strengths and weaknesses: When you’re starting a tutoring business, you’ll want to know what you have to work on within the subject matter you’re teaching. A great way to do this is to take a practice test in your chosen field. If you decide that tutoring for the LSAT is what you want your niche to be, you’ll want to take several practice tests. Evaluate your performance and identify the gaps in your knowledge.
Put yourself on a study schedule: After learning your weaknesses, it’s time to sharpen your skills. Take note of how you can compensate for your weaknesses. What study tactics are you using? How do you stay productive? This information will come in handy when you’re coaching students through their own practice sessions.
Stay current with the syllabus: You’ll need to be familiar with the required texts and materials in current education standards. During the off-season, like summers or winters, dedicate time to learning what teachers are assigning during the school year to ensure that you’re prepared when student vacations are over.
Learn how to teach effectively: When it comes to how to start a tutoring business, it isn’t enough to just have knowledge. Teaching is another skill you need to build if you want a successful tutoring business. Learning how to communicate complex concepts while you adapt to student learning styles is how you can build a profitable tutoring business with satisfied clients. Brush up on your communication skills by reading books and watching videos on the subject.
Consider getting certified: While the United States does not require any certifications to become a private tutor, it still may be something you want to consider. Getting certified, especially with the National Tutoring Association, can boost the reputability of your services. There are also additional tutoring certifications that may be useful for you to obtain.
3. Choose a tutoring business model
There are a few different business models you can choose from when starting your tutoring business. These include:
Buy a tutoring franchise: If you prefer to operate within an existing business model, you can consider joining a tutoring franchise, like Kumon or Sylvan Learning. However, buying a franchise does have its disadvantages — including startup fees and a lack of freedom — so it’s important to do your research.
Run a home-based tutoring business: This option is great if you are looking to keep startup costs down. You can designate space inside your home to use as your tutoring space — and if that's all the space is used for, some things related to that space could be tax-deductible. Be sure to read the specifics so you don't end up paying more in taxes, or fines, later down the road. As a home-based tutoring business, you can decide whether you'll meet clients in person at your home or whether you'll run an online operation.
Be a traveling tutor: If you don't feel comfortable putting your home address out there, you could decide to travel to your client's home for tutoring sessions. This could also increase your attraction with parents since they won't have to take time out of their busy schedule to drive their children to lessons. Your mileage or other travel expenses could also be another tax deduction.
4. Register your business
If you’re wondering how to start a tutoring business, you’re probably operating as a sole proprietor, especially if tutoring is your side hustle. However, there may come a time when you want to look into selecting another business structure, like an LLC.
With an LLC, you'll have reduced liability and the choice to be taxed as either a sole proprietor or corporation. Also, attaching “LLC” to your business name can boost your professional appearance. Once you've decided on the right business entity for your tutoring business, you're almost ready to register your business. But first, you'll need a business name.
Choosing a business name
Make sure you choose a business name that is both unique and available in your state. A good way to check availability is by doing a quick secretary of state business search.
If you’re operating your tutoring business as a sole proprietorship and choose a business name other than your legal name, you’ll need to file a DBA, or “doing business as,” name when registering your business. Make sure you research your state’s DBA requirements to ensure you’re completing the process properly.
When registering for an LLC, you will usually be required to include the term “limited liability company,” “LLC,” or “L.L.C.” in your business name.
5. Separate your business and personal finances
It’s always a practical idea to separate your business and personal finances, especially if you’ve formed an LLC. When you mix your personal and business finances, you “pierce the corporate veil” which can risk your legal protections. But even if you’re simply operating a sole proprietorship, keeping this divide makes bookkeeping easier, which ultimately makes your job during tax season that much smoother.
Open a business checking account . You can collect cash or invoice payments and deposit them in this account. Try to only use funds from your business account to pay for business expenses, so all your transactions will be limited to one account and one set of statements.
Apply for a dedicated business credit card . Many people don’t realize that you have a business credit score separate from your personal credit score. Building your business credit history boosts your financial health and can grow your business down the line while helping you gain access to reliable funding from banks and other lenders.
6. Create a business budget
After you decide what tutoring services you will offer, it’s time to calculate your startup and operating costs.
Learning how to create a business budget can be intimidating, especially if you’ve never done it before. However, it’s necessary for any small business and will prepare you for success. To avoid costly errors and maximize your profit, create a budget to help you responsibly manage your finances. Business expenses you want to factor into your budget include, but aren't limited to, writing materials, printer and ink, marketing materials and invoice and bookkeeping software.
Seek funding if you need it
If you intend to find a location to rent and employ additional tutors, your startup costs can significantly increase. You may want to consider applying for a business loan or opening a business line of credit to cover your increased expenses. If this is your first business venture and you haven’t built up much business credit, a traditional bank may be hesitant to offer you funding. However, there are alternative lenders who might look at other factors, such as the financial health of your business and your personal score, to make determinations about lending money.
Alternatively, you could try bootstrapping your business and securing loans from friends, families and supporters, or you could try crowdfunding sites to raise any capital you might need to get your tutoring business to the next level.
7. Determine your pricing
If you’re starting a tutoring business, you’ll want to make sure you set competitive rates that cover your costs while appealing to clients. According to Glassdoor, a private tutor with one to two years of experience can expect to earn $14,000 to $42,000 per year, or a national average of $22 per hour, depending on your rates and how much you work. Here are a few ways you can determine a fair pricing point for your tutoring business:
Research the competition: Are there other tutoring services in your area? Even if they’re not specializing in the same niche as you, what hourly rates are they charging their clients? This can provide you a baseline for how to price your service. You can even consider charging more if you offer more value than your competitor.
Consider location: When pricing services for your tutoring business, consider which communities you’re targeting. Can your prospective clients afford to pay premium rates for your tutoring services? For example, when it comes to a standardized test like the SAT, students in certain school districts may not seek out private tutoring at a high enough rate for your business to prosper at the price you desire, but in other school districts, private tutoring may be more of the norm.
Factor in your experience: While a teaching license is not required to become a private tutor, it can boost your credentials. Also, you can use any relevant college degrees or past teaching experience to increase your prices. However, if you don’t have any of these, you may want to consider lowering your price points until you have more experience under your belt.
8. Market yourself
You'll need to get the word out about your new tutoring business, so coming up with a marketing plan that not only is effective but is within your budget is key. Below are a few ways to get started.
Perfect your elevator pitch: Create a brief, catchy elevator speech to help communicate your tutoring services concisely, especially when you’re pitching your services by word-of-mouth. For a tutoring business, some points you want to address in your elevator pitch include who your target client is, their pain points and how your tutoring services solve them.
Offer a discounted rate starting out: Getting your first client can be tough, especially when they ask for past client results and you don't have any. Offering a discounted rate can help you get clients even with little-to-no experience. Since you’re offering a discounted rate, request a positive testimonial from those first clients. These testimonials will boost your marketing potential when seeking new clients.
Build your online portfolio: Creating a small-business website adds another degree of professionalism when starting a tutoring business. Use your online portfolio to list any experiences you have with tutoring or related fields. You also want to list any degrees and tutoring certifications you have. The right portfolio will attract the right client and will land you the job.
Make business cards: While more businesses are going digital, business cards can still advance your branding and marketing strategy. Since many tutoring businesses work with local clients, having a business card to pass around within your community can help spread the word about your services.
Set up a referral system: Never discount the power of word-of-mouth marketing. It's often the bread-and-butter strategy for many tutoring businesses’ marketing success. A satisfied client who owes their passing grade to your tutoring services can skyrocket your value. Start networking with your clients to increase your business.
9. Prepare yourself for tutoring challenges
Starting a tutoring business can be a great way to earn a side income or even replace your day job. However, there are some not-so-great aspects of tutoring that you should be aware of and prepared for.
Your schedule needs to be accommodating: Many of your clients will be school students that are unavailable during the day. If you’re tutoring college students, their availability can be even more limited. Your schedule can often be erratic as you do your best to accommodate each client’s availability. You should be prepared to sacrifice your evenings and weekends for your clients.
Tutoring will test your patience: Some clients will struggle more than others with the subject matter. Coaching your students and being mindful of their learning speeds requires practice and patience. Do your best to learn different teaching styles to better gel with your clients learning styles. It’s your responsibility as the tutor to meet students halfway and figure out what works for them.
You need to appease the parents: As a tutor, you’ll not only be working with students but you’ll also be working with their parents. You’ll likely be selling your services to parents rather than students and it’s important to keep them happy while creating a comfortable learning environment for your students. You might need to build some customer service skills to keep your clients happy.
Zoning issues: If you plan on tutoring in your home, you need to ensure you’re complying with any zoning regulations. Zoning requirements would vary depending on where you live — both your state and county. New York City, for example, allows businesses to be run out of homes but limits the percentage of space in your home you can dedicate to your business. Check with your county clerk's office or consult a business attorney in order to stay compliant.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
On a similar note...
Tutor Business Plan Template
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 8,000 entrepreneurs and business owners create business plans to start and grow their tutoring service. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a tutoring business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your tutoring service as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a tutoring service, or grow your existing tutoring service, you need a business plan. A business plan will help you raise funding, if needed, and plan out how you will grow your business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Tutoring Businesses
With regards to funding, the main sources of funding for a tutoring service are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a tutoring service is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a tutoring service. They might consider funding a tutoring company with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.
How To Write a Business Plan For a Tutoring Service
Your business plan should include 10 sections as follows:
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of tutoring service business you are operating and the status; for example, are you a startup, do you have a tutoring service that you would like to grow, or are you operating a network of tutoring businesses?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the tutoring industry. Discuss the type of tutoring you are offering. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of tutoring you are offering.
For example, you might operate one of the following types:
- Exam preparation : this type of tutoring company provides exam preparation and training materials for high school students, undergraduate students, and recent college graduates preparing for college entrance exams such as the SAT, ACT, GRE, etc.
- Primary school tutoring : this type of tutoring specializes in helping students in K-12. This type of tutoring is typically subject-specific – math, literature, history, etc.
- Occupational and advanced academics tutoring : agencies may sometimes specialize in occupational certification for those entering the workforce as engineers, mechanics, technicians, etc.
In addition to explaining the type of tutoring you provide, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include placement goals you’ve reached, the number of new contracts, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the tutoring industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the tutoring industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section:
- How big is the tutoring industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5-10 years?
- What is the relevant market size? That is, how big is the potential market for your tutoring service? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: elementary students, middle school students, high school students, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of tutoring you offer. Clearly, high school students would want different subject tutoring and would respond to different marketing promotions than professional certification clients.
Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most tutors primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target market. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Finish Your Tutoring Service Business Plan in 1 Day!
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other tutoring services.
Indirect competitors are other options customers may use that aren’t direct competitors. This includes peers, teachers, or graduate students. You need to mention such competition to show you understand that not everyone who needs help with grade improvement and test preparation will hire a tutoring company.
- What types of customers do they serve?
- What types of tutoring services do they offer?
- What is their pricing structure (premium, low, tiered, etc.)?
- What are they good at?
- What are their weaknesses?
With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior services?
- Will you provide services that your competitors don’t offer?
- Will you make it easier or faster for customers to engage your services?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a tutoring service, your marketing plan should include the following:
Product: in the product section you should reiterate the type of tutoring that you documented in your Company Analysis. Then, detail the specific courses or subject help you will be offering. For example, in addition to high school level math tutoring, will you provide GED preparation, or will you be specializing in certification preparation for a specific occupation?
Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place: Place refers to the location of your tutoring services. Document your location and mention how the location will impact your success. For example, is your tutoring office located next to a high school or near a retail district, etc? Discuss how your location might provide a steady stream of customers.
Promotions: the final part of your tutoring marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Reaching out to schools and teachers
- Reaching out to local websites
- Social media marketing
- Local radio advertising
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your tutoring service, such as serving customers, attracting future applications, processing paperwork, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect your 100 th student to successfully improve their grades, or when you hope to reach $X in sales. It could also be when you expect your Xth student to excel at a specific exam, or when you expect to launch a new location.
To demonstrate your tutoring business’ ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in teaching or tutoring. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in education and/or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your tutoring office, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $100,000 contract for helping employees achieve certification, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for curriculum, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing your tutoring service:
- Location build-out including design fees, construction, etc.
- Cost of equipment like software, office equipment, etc.
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease.
Putting together a business plan for your tutoring company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the tutoring industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful tutoring service.
Finish Your Tutoring Business Plan in 1 Day!
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OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.
Tutor Business Plan FAQs
What is the easiest way to complete my tutoring business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your business plan.
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
Other Helpful Business Plan Articles & Templates
Creating a Tutoring Business Plan - A Step-by-Step Guide
What is a tutoring business plan and do i need one, what makes a good tutoring business plan, how to create an effective tutoring business plan, sample outline, executive summary , business profile, market research.
- Sales & Marketing
Tutoring business plan tips and tricks, when is it good to create a tutoring business plan, when you are just starting, when bringing in partners, when you are embarking on joint ventures, when you need to secure financing, 5 mistakes you should avoid when making a tutoring business plan.
- Wrap Up & Conclusion
Do you have a knack for helping others learn? Are you looking for a way to make some extra money or simply want to be your own boss?
If so, starting your own tutoring business may be the perfect solution for you! In this blog post, we'll discuss how to create a successful tutoring business plan.
We'll cover everything, step by step, from marketing your services to setting prices and more. So, whether you're just getting started or you're looking to take your business to the next level, keep reading for some helpful tips and advice!
If you have stumbled upon this blog then you are likely wondering, do you need a business plan? Does having a business plan come with benefits? Does my already established tutoring business require a business plan? We have compiled all these answers into this article that will help you create your very own tutoring business plan with clear actionable steps and examples.
First things first, having a business plan makes running a business easier. It helps you understand your value proposition, reach potential customers and can even help with financing. In fact, businesses intending to secure a loan and those intending to secure investment capital using a business plan are positively correlated with success rates. And, while some decisions are based on risk, you cannot depend on this for the success of your business. This is where a business plan comes in handy.
Here we will provide you with a comprehensive guide on how to create a business plan for your tutoring business from scratch. Here’s what’s to come:
- What makes a good tutoring business plan?
- How to create an effective tutoring business plan?
- Tutoring business plan tips and tricks
- Tutoring business plan FAQs
Read More: Write a business plan from Gov.uk
The type of business plan you create will depend largely on your specific tutoring business. However, in general, a business plan is a document that clearly defines your milestones and how you plan to achieve them. Having a hard copy of all important details and goals to show potential investors and employees makes it easier to be held accountable while keeping track of these details and improving upon them.
A good business plan will help you to:
- Organise your thoughts in a professional and easy-to-understand way
- Make sound and informed business decisions with solid projections to reach realistic targets
- Communicate your plans to banks, your partners, and even your employees.
The biggest benefit of starting your own tutoring business is that this business can be started on any scale. You can even start it from your home with little to no investment. However, if you want to start a proper tutoring centre where students with different age groups and educational backgrounds will be helped with their education, you will first have to prepare a comprehensive tutoring business plan. The business plan will not only establish the basis of your company’s future operations and decisions but will also help you with funding your startup.
Before you start writing your business plan for your new tutoring business, spend a bit of time doing research and reading through some sample business plans written for the education and training industry. This will give you a good idea of what you’re aiming for and will also show you the various sections that different entrepreneurs include, the language they use to write about themselves and their business goals.
We have created the following sample outline for your tutoring business plan from some popular examples to give you a better idea of how to structure the perfect tutoring business plan. Remember that not all of these need to be included! Pick out the key elements for your tutoring business:
- Include a business summary, market research summary, marketing summary, financial situation summary and net income.
- Include business overview, business description, compelling value, product/service description, company history, management, location, legal structure, vision and mission, professional advisor (optional), goals and objectives.
- Include, industry profile and outlook, local market, key competitors/SWOT analysis, TOP tutors, ABC tutoring, target market, keys to success, and customer survey summary.
Sales & Marketing
- Include pricing strategy, marketing strategy, marketing activities, marketing objectives, positioning statement, sales process and strategic alliances.
- Include physical/virtual location, legal considerations, insurance considerations, human resources, process/production and risk assessment.
- Include past purchases, start-up costs sheet, sales forecast assumptions, cash flow, projected profit and loss and projected balance sheet.
- Include any relevant documentation to support your business plan.
Let's dive a little deeper into each of these categories…
The executive summary consists of your entire business plan summary. It always appears at the beginning of the plan but should be always done last. It is crucial to note that the executive summary is of utmost importance, as it will be one of the first parts of your plan that anyone reads. It should contain a summary of everything your tutoring business is focused on in a maximum of one or two pages.
One of the best pieces of advice we can give is to not oversell your business. Usually, everyone wants to find out what you are focusing on and how you are solving the problems in your industry. Therefore, start by:
- A brief description of your entire business plan.
- Try to summarise each of the sections you’re covering.
- Keep it straight to the point.
- Improve it often.
This section should cover what your tutoring business does, your unique selling point (USP), competitive value, vision, mission and so on. It is important to have clearly defined points, which might be difficult if you’re still in your inception phase. What you need to remember is that as long as you outline your objectives and what you’re hoping to achieve, your profile will look well-polished. Don’t forget to choose and highlight your tutoring method, be it online, in person, or both. If you decide to go the online teaching route, there are a lot of tools and services that can help make scheduling and conducting classes easier.
To write your business profile, follow these steps:
- Start with an elevator pitch: Describe your business in the easiest way possible, so any reader would understand. Stay away from smart words - they might make you sound good, but in reality, they complicate the context. Explain what you do, your service description and your USP. A paragraph should be enough. Later on, move along with your value proposition, mission, vision and your goals and objectives. These points help elevate your business plan and set you apart from the competition.
- Be straight to the point: The more clear and concise you are, the better the reader will understand your business model.
- Keep your points short: Short sentences are key here, but make sure not every sentence is short as it disturbs the reading pace and it might make it quite monotonous. The important thing here is to keep all the essential information short and explain what requires explanation a bit longer.
When you present your market research, you have to demonstrate your understanding of the tutoring industry. You have to mention factors that have an influence on the industry such as local market area, key competitors, target market and your strategy for success. An easy approach would be to start broad and then go towards more specific that applies to your services.
Start your market research with:
- Conduct industry-related interviews with key people.
- Speak to parents and students and record what they feel it’s missing.
- Identify key competitors and analyse their business offerings.
- Determine the cost of tutoring services in your area and check if your costs are competitive.
- Create buyer personas based on your target demographic and the type of students you hoping to attract.
When your offering is defined, it is time for it to be promoted with the goal of selling it. Your sales and marketing section should contain your strategy of how are you planning to market and sell your tutoring services. It is not an easy job to attract the customers you want, so it is crucial to have a thorough think about how you’ll do it and plan ahead.
You won’t be able to attract the customer you want by marketing where your target market isn’t present. You need to focus on making noise and push out your offering through public relations and other relevant marketing channels. This is a good exercise to demonstrate your persuasive skills and think about how can you attract students, parents and teachers to your services. Remember to be genuine and avoid ‘salesy’ language.
Here’s what you need to consider:
- Choose the platform or means of selling your tutoring services, but keep in mind that your target customer has to be on there. Do some research and find out where your target audience can be found and market there.
- Build your brand presence on your platform of choice and fill it with information that a student, parent or teacher in need of tutoring would go to.
- Once all that’s been set in stone, form a relationship with your audience and be as helpful as you can. This will help increase your brand authority and spread the word about it to other platforms.
- Top tip, if you follow most of these steps above, your brand will start getting its own voice and sell itself through loyal customers, which means you won’t have to invest much in marketing.
Your operation portion of your tutoring business plan contains essential information about general operational details that help investors understand the physical details of your vision. Information such as the location of your business, assets, legal matters, insurance and resources. If you’re just started your business, the operations plan can also serve as a checklist for startups as it includes a list of everything that must be done to start turning a profit. To put it simply, you explain how your business operates from all points of view.
And the most stressful part of a business plan as some may say, it’s your finances and how you keep track of them and maximise revenue for your tutoring business. This is where a tutoring business plan comes in handy, as you need to forecast spending and make sure you have the necessary resources to succeed.
Predictions are not always certain, but what you have to do is do as much research as possible in order to be as accurate as you can. Your business will grow over time, therefore the forecasting and budgeting will get more complex. That’s why it is important that not only essential but also relevant financial data is meticulously recorded in your books.
Invoicing is an extremely important part of tracking finances for your tutoring business. Invoices collect the charges that have been placed on your clients from lessons and ad hoc charges. When a company generates invoices, it can review each one before sending them to its clients. Clients that have received lessons will be able to see any sent invoices and pay for them from their accounts. They can be viewed from their own login, or they can be sent to their email address as well as an attachment.
At TutorCruncher, we create and generate those by default. We pretty much already have those templates created based on the company's address, logo and email etc. Here’s an example of a basic layout of the invoices that we generate
Companies can decide if they want to add additional text to those Invoice PDFs that get sent out as well. Sometimes they might want to have their own description of what’s included on the Invoice or to remind clients to double-check them etc. Here is where it’s displayed on the INV (Default Text)
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- ### Be concise
It’s really important that potential investors can understand what your business is all about from a quick glance at your plan. Make sure you include a summary of your business, and how it will make money right from the start using simple language throughout.
- ### Be specific
Being specific is just as important as being concise. The details will help you dive deeper into how you will actually deliver on your plan and promises.
- ### Know your market
A big part of knowing whether your business will be successful is understanding your audience. Make sure your plan is clear about your target market and that you have chosen them based on solid evidence.
- ### Know your finances
If your business isn’t going to make any money, it won’t be successful so you need to be very clear on how you will make a profit. Your tutoring business plan will be incredibly useful when it comes to securing loans and investments if needed.
While starting, a business plan can serve as a plan of action. It is unlikely that you immediately want to secure loans or funding when starting, but creating a business plan can significantly clarify your next steps. Having guesstimates in your forecast can be risky in the long run, which means having experience in predicting your financial future might make forecasting more dependable. To get that experience, you can start with a business plan. Here's more information on setting up a business to check out.
Asking someone to commit to your tutoring business and sharing your passion before knowing the ins and outs is like asking them to buy a house without checking it out in person first. The spontaneity might seem fun at first but it is a huge commitment that needs a thorough evaluation. Using a business plan will help you convey your vision succinctly and show every relevant point to a potential partner.
A joint venture is an agreement between companies to share the work and the profit and have the same or similar goals. As a tutoring business, you could have this agreement with non-profit organisations or aided educational institutions. A business plan is a handy tool in this case to relay not just the vision of your business, but also all required information, like your projected profit and loss, your sales tactics, and anything else you might feel is relevant.
A good and well-written business plan will summarise your business’s history and background, which you will need to successfully communicate to banks and investors and secure financing. It is your opportunity to convince investors that your business will be a high-yield investment for their money. Lenders will want to see the actual potential in your business. Every detail from your marketing strategy to financial projection has to be presented to them to showcase that potential. This will be best done with a business plan.
Now that you have some in-depth knowledge about crafting a tuition business plan, here are 5 mistakes you should avoid to make your business plan foolproof:
- Every statistic and detail in your plan should be based on realistic data. Your plan should not have unrealistic financial projections.
- Do not be inconsistent, your plan should quote consistent stats and have solid, unidirectional strategies.
- Be clear about what your business plan is. A business plan is not a detailed and defined budget. While a budget is part of it, the business plan is more than just your income and expenses.
- Do not include too much information. The purpose of your plan is to be concise and to focus on the key elements of your tutoring business.
- Make sure your plan is proofread multiple times. Include your team in the process.
Wrap Up & Conclusion
Putting together a business plan for your tutoring company is a long but worthwhile endeavour. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the tutoring industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful tutoring business. If you have any questions on getting started or setting up your tutoring business get in touch with us here at TutorCruncher, we’re here to help!
We build business management software for tutoring companies. Whether you are a small team or an established company, we can help you give your clients a 5-star service while spending less time on administration.
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Tutoring Business Plan Template
Tutoring business plan.
You’ve come to the right place to create your Tutoring business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Tutoring businesses.
Below is a template to help you create each section of your Tutoring business plan.
LearnWell Tutoring is a startup tutoring company located in Pocatello, Idaho. The company is founded by Carrie Longwood, a former manager of a franchise tutoring business located in a suburb of Pocatello. Carrie’s determination to assist children in learning, no matter what they’re level of capability, earned her the regard and respect of the parents who observed her dedication to their children’s learning needs. The clients have written multiple letters of recommendation and have promised to support her in her startup venture by either enrolling their children in her tutoring services company or spreading the word about her new company.
LearnWell Tutoring will focus on specific age groups in order to maximize efficiency and ensure the students receive the highest level of teaching and tutoring skills. Elementary children, ages 5-12, will receive tutoring commensurate with the course curriculum they study at their individual schools, whether private or public. In addition, they may be taught or tutored in a foreign language or other academic area of interest to them. Middle school students, ages 13-14, will also be tutored in the academic areas that conform to their school curriculum, depending on the individual needs of the student and the expectations set forth by their school and parents. High school students, ages 14-18, will focus on academic studies as needed or set forth by teachers or academic advisors.
The following are the services that LearnWell Tutoring will provide:
- Assigned 7-day-a-week tutoring sessions
- Curriculum specific tutoring as needed
- Advanced course curriculum tutoring as needed
- Parent/tutor weekly conferences
- Focused academic tutoring programs
- Enhanced tutoring featuring digital tutoring pathways
- Monthly online payment portal for ease of clients
LearnWell Tutoring will focus on the parents or caregivers of students, ages 5-18, who will benefit from private tutoring in academic subjects of all kinds. LearnWell Tutoring will focus on the public and private schools within the Pocatello region. LearnWell Tutoring will focus on parents or caregivers who may choose advanced courses or foreign language introductions for their children. LearnWell will focus on citywide associations and collaborative partnerships within the city.
LearnWell Tutoring will be owned and operated by Carrie Longwood. She has recruited three former tutors from her employer’s franchise business to become Academic Expert Tutors within her new tutoring company. Sheri Blackwell will become the Academic Expert Tutor for the elementary students; Greg Thompson will become the Academic Expert Tutor for the middle school students; and Jack Owens will become the Academic Expert Tutor for the high school students.
Carrie Longwood is a former manager of a franchise tutoring business located in a suburb of Pocatello. Carrie’s determination to assist children in learning, no matter what they’re level of capability, earned her the regard and respect of the parents who observed her dedication to their children’s learning needs. The clients have written multiple letters of recommendation and have promised to support her in her startup venture by either enrolling their children in her tutoring services company or spreading the word about her new company.
Sheri Blackwell, formerly a tutor for children ages 5-12, will become the Academic Expert Tutor for the elementary students.
Greg Thompson, formerly a senior tutor for children ages 13-14, will become the Academic Expert Tutor for the junior high students.
Jack Owens, a former full-time, tenured high school teacher will become the Senior Academic Expert Tutor for the high school students
LearnWell Tutoring will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team at LearnWell Tutoring
- LearnWell Tutoring offers the most reasonable pricing for tutoring students of all ages and provides discount packages for families with multiple children in tutoring.
LearnWell Tutoring is seeking $200,000 in debt financing to launch LearnWell Tutoring. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for LearnWell Tutoring.
Who is learnwell tutoring.
LearnWell Tutoring is a newly established, full-service tutoring service based in Pocatello, Idaho. LearnWell Tutoring will be the most reliable, cost-effective, and efficient choice for students in Pocatello and the surrounding communities. LearnWell Tutoring will provide a comprehensive menu of tutoring services for all parents or caregivers to utilize. Their full-service approach includes a comprehensive array of curriculum choices and tutoring styles, in addition to a digital platform that is interactive for students.
LearnWell Tutoring will be able to successfully tutor students ages 5-18. The team of teaching and tutoring professionals are highly qualified and experienced in both skillsets. LearnWell Tutoring removes all headaches and issues of the learning process for students and ensure a positive outcome with tutoring professionals who can guide the students to better, more informed learning practices. All issues are removed expeditiously while delivering the best customer service.
LearnWell Tutoring History
Since incorporation, LearnWell Tutoring has achieved the following milestones:
- Registered LearnWell Tutoring, LLC to transact business in the state of Idaho.
- Has a contract in place at one of the office buildings for a 10,000 square foot office and conference room area.
- Reached out to numerous former tutoring clients to refer LearnWell Tutoring to others.
- Began recruiting a staff of 10 and office personnel to work at LearnWell Tutoring.
LearnWell Tutoring Services
The following will be the services LearnWell Tutoring will provide:
The academic tutoring industry is expected to grow over the next five years to over $172 billion. The growth will be driven by a high rate of interest and demand by parents and caregivers. The growth will be driven by technological advancements that make tutoring platforms and tutors easily accessible. The growth will be driven by a growing acceptance of tutors for students who need extra training and cognitive understanding of various subjects. The growth will be driven by students who missed critical learning skills during the global pandemic and now need instructions. Costs will likely be reduced as tutoring services become more available and accessible.
Demographic profile of target market.
LearnWell Tutoring will focus on the parents or caregivers of students, ages 5-18, who will benefit from private tutoring in academic subjects of all kinds. LearnWell Tutoring will focus on the public and private schools within the Pocatello region. LearnWell Tutoring will focus on parents or caregivers who may choose advanced courses or foreign language introductions for their children. LearnWell will focus on citywide associations and collaborative partnerships within the city programs.
LearnWell Tutoring will primarily target the following customer profiles:
- Parents or caregivers of students in need of tutoring
- Public and private schools within the region of Pocatello
- Parents or caregivers who want advanced curriculum teaching for their children
- Citywide associations or collaborative partnerships within the city programs
Direct and indirect competitors.
LearnWell Tutoring will face competition from other companies with similar business profiles. A description of each competitor company is below.
Ace Tutors Academy is an academic tutoring company dedicated to educational support to elementary-aged children. Three goals of the academy are listed on their website: Foster a love for learning, boost confidence, and help children excel in academics”. The tutors focus on ages 5-12 and have a rotating cadre of tutors who instruct online on a part-time basis over the weekly schedule set out by the owner of the company, Nick Demas. As a former online tutor, Nick found that elementary aged children struggle the most with reading skills, math calculations and social studies. As a result, he founded his company in 2015. There are 5 tutors, most of whom have at least one year of tutoring experience, who work on the rotational basis, helping students as needed. There are no monthly contracts for clients; students can jump online at any time for a minimum of one-hour per session to increase or learn a new skill set.
Global English Tutoring
Global English Tutoring is a specialized tutoring company focused on providing comprehensive English language instruction to foreign students of all ages. The goal of the owners, John and Marie Hoover, is to bring English proficiency to students from all countries. The program is designed to help students overcome language barriers, improve their communication skills, and thrive in an English-speaking environment.
The services of Global English Tutoring are similar to the franchised former tutoring company owned by John and Marie Hoover. Their target audience is foreign students, both children and adults, who are seeking to learn or enhance their English language skills. They also target international students, expatriates, and professionals looking to improve their language. Their business was formed in 2019, with the aim to bring these skills to students online around the world and to also, concurrently, bring English-speaking students into diverse backgrounds by teaching and tutoring. The company currently employs three tutors and an administrative assistant and is headquartered in a suburb near Pocatello.
Nihongo Tutoring is a specialized tutoring company dedicated to teaching English-speaking adults the Japanese language. With the expansion of the global market, this online tutoring company has opened the doors to English speakers to the world of the Japanese language, along with the cultural and societal understandings that accompany the language. The owners, Ming and Tsong Hingbo, are expert tutors in the company and have prepared the entire curriculum based on their experience and knowledge of Japanese and Japan. They started the company in 2020 and enrollment has grown since that time.
Tutoring is available for adult learners who take an online immersive learning experience. The 24-month tutoring program is paid for in full before starting and, when completed, signifies through a certification that students are capable of and can converse in Japanese. Multiple global companies utilize the services of Nihongo Tutoring and several place their entire executive board into the 24-month programs to facilitate an understanding of their global partnerships. The tutoring program includes academics, history of Japan, social customs, upcoming trends and new markets, corporate structuring, along with protocols for meetings and meals.
LearnWell Tutoring will be able to offer the following advantages over their competition:
Brand & value proposition.
LearnWell Tutoring will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a comprehensive academic program of tutoring services
- Unbeatable pricing to its clients, with discounts given for multiple students in one family
The promotions strategy for LearnWell Tutoring is as follows:
Word of Mouth/Referrals
LearnWell Tutoring has built up an extensive list of contacts over the years by providing exceptional service and expertise to former students of owner Carrie Longwood. The former clients have agreed to follow Carrie to her new company and help spread the word of LearnWell Tutoring by referrals and word-of-mouth efforts.
Professional Associations and Networking
Carrie Longwood will network among school and community groups to offer services for academic studies to students in need. She will initiate contact with the school district offices throughout Pocatello to offer her services, as well.
All parents of students within the region of Pocatello will receive a brochure from the LearnWell Tutoring company three weeks prior to the launch of the business. Discounts for the first three months of the company will be offered, along with packages for families who have two or more students who need academic tutoring.
LearnWell Tutoring will fully utilize their website. The website will be well organized, informative, and list all the academic services that LearnWell Tutoring provides. The website will also list their contact information and open tutoring schedules for clients to click on and reserve. The LearnWell Tutoring’s website will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “tutoring company” or “tutoring near me”, LearnWell Tutoring will be listed at the top of the search results.
The pricing of LearnWell Tutoring will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
The following will be the operations plan for LearnWell Tutoring. Operation Functions:
- Carrie Longwood will be the Owner and President of the company. She will oversee all staff and manage client relations. Carrie has spent the past year recruiting the following staff:
- Sheri Blackwell, formerly a tutor for children ages, 5-12, who will become the Academic Expert Tutor for elementary students.
- Greg Thompson, formerly a senior tutor for children ages 12-14, who will become the Academic Expert Tutor for the junior high students.
Jack Owens, a former full-time, tenured high school teacher will become the Senior Academic Expert Tutor for the high school students.
LearnWell Tutoring will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for LearnWell Tutoring
- 6/1/202X – Finalize contracts for LearnWell Tutoring clients
- 6/15/202X – Begin networking at association and community events
- 6/22/202X – Begin moving into LearnWell Tutoring office
- 7/1/202X – LearnWell Tutoring opens its doors for business
Key revenue & costs.
The revenue drivers for LearnWell Tutoring are the fees they will charge to clients for their academic tutoring services.
The cost drivers will be the overhead costs required in order to staff LearnWell Tutoring. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
LearnWell Tutoring is seeking $200,000 in debt financing to launch its academic tutoring company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Clients Per Month: 120
- Average Revenue per Month: $34,000
- Office Lease per Year: $100,000
Income statement, balance sheet, cash flow statement, tutoring business plan faqs, what is a tutoring business plan.
A tutoring business plan is a plan to start and/or grow your tutoring business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Tutoring business plan using our Tutoring Business Plan Template here .
What are the Main Types of Tutoring Businesses?
There are a number of different kinds of tutoring businesses , some examples include: Exam preparation, Primary school tutoring, and Occupational and advanced academics tutoring.
How Do You Get Funding for Your Tutoring Business Plan?
Tutoring businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Tutoring Business?
Starting a tutoring business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Tutoring Business Plan - The first step in starting a business is to create a detailed tutoring business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your tutoring business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your tutoring business is in compliance with local laws.
3. Register Your Tutoring Business - Once you have chosen a legal structure, the next step is to register your tutoring business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your tutoring business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Tutoring Equipment & Supplies - In order to start your tutoring business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your tutoring business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful tutoring business:
- How to Start a Tutoring Business
- Dec 21, 2021
5 Steps to Start an Online Tutoring Business
Updated: Apr 8, 2022
The increasing adoption of digital technologies in the COVID-19 pandemic prompted significant growth in the online education sector. According to the report by Allied Market Research , the global e-learning market size was valued at $197.00 billion in 2020 and is projected to reach $840.11 billion by 2030, registering a CAGR of 17.5% from 2021 to 2030.
E-learning can increase educators’ productivity by 50% by utilizing online learning software to provide quality courses anytime and anywhere. If you want to start an online tutoring business and aren't sure how to start, this article may provide you with step-by-step guidance according to your needs.
Five steps for starting an online tutoring business:
Prerequisites for online tutoring
Figuring out the tutors in demand
Starting as an online tutor under an established service
Starting your own business
Promoting your business
1. Prerequisites for online tutoring
1.1 Education background and certification
To work as a tutor, one must meet some specific requirements. In general, you should be professional teachers and subject-area experts, thus you should have earned at least a high school diploma and sometimes tutoring certifications .
Tutors who want to work individually do not generally require further training beyond the high school level education. However, if you want to work in a school or an institution, you usually have to pursue formal education training, such as a teacher’s aide certificate or a teacher preparation associate degree, as well as other specific training programs.
Certifications are not required for tutors, but they can improve one’s chance of landing a high-paying job or charging a better rate for classes. It is worth noting that tutor certifications are supplied by different organizations in different countries.
1.2 Set up your device and classroom
Generally, you need to find a place in your home or studio to conduct online tutoring. The “classroom” should meet some basic requirements: away from ambient noise, sufficient light, as well as a clean background for teaching .
You should also make sure that you are equipped with adequate hardware to support online tutoring. A stable network connection and a computer that meets the basic configuration requirements are essential. You should also have a webcam and a microphone – remember to adjust and test in advance to make sure the devices are working properly. Sometimes, you may need a tablet or digital drawing pad to make full use of the virtual whiteboard. Some software also supports mobile devices, you can refer to this manual for equipment requirements.
1.3 Online teaching tools
Picking an online education software for online tutoring is an important yet overwhelming decision. A suitable platform enables efficient and productive teaching and effective learning outcomes. More importantly, the right platform helps achieve better delivery of your prepared course materials. Many online tutoring services may have designated virtual classroom software, but if you are looking for one, you can refer to Best Virtual Classroom Software of 2021-2022 .
Looking for professional teaching tools for your classes? Click the button below and book a demo with a ClassIn consultant!
2. Figuring out the tutors in demand
2.1 Think of a list of niches
Start by making a list of the courses you can teach. For example, if you can teach any English topics to anyone, list the courses you can teach, and to whom. The following are some angles to determine the niches.
English for kids
English for middle school
English for adults
You got a general idea of the subjects you can teach and the target student, now let's do some research to find some more specific keywords.
2.2 Look at search engine autocomplete suggestions
You can type "English tutor for" on Google or on other search engines and to look through the autocomplete suggestions. These may give you some inspiration, now you know what other people are looking for. You can even cycle through the alphabet to see what comes up, How To Start An Online Tutoring Business In 5 Simple Steps provides a very detailed tutorial, so we won't elaborate on it here.
3. Starting as an online tutor under an established service
If you are new to this business, you probably don’t have a large enough base of students to begin with. Therefore, registering with an established online tutoring service may be the fastest way to enter the market. The platform can connect tutors with potential learners, which saves you the energy from building a client base from scratch. If you are looking to jump-start an online tutoring career, the article 12 Best Online Tutoring Websites for Online Tutoring Jobs at Home may help. To register, you need to submit your personal resume, copies of your credentials and certifications, and sometimes a profile picture and a copy of your ID card .
3.2 Verification and approval of profile
After filling out relevant forms and submitting all the materials, the platform’s verification group will check the authenticity of the information, some may even do a background check or an interview . Once you pass the verification step, your profile will be made public on the website.
3.3 Get ready to have classes
Once you are verified as an official tutor, you should get ready to conduct live classes to your students according to the platform’s guidelines. If you have any questions about the features of the software, most tutoring companies would have a technical group to support you. It is also advisable for tutors, especially those who handle subjects like math and science, to get familiar with the whiteboard function, which helps illustrate course content and further student understanding.
4. Starting your own business
There is another way to start an online tutoring business - to launch your own online tutoring platform. In this case, you are the owner of the business, and you do not need to turn in a percentage of your earnings. You may choose to set up your own online tutoring platform if you have a small and growing client base .
4.1 Make a business plan
A good plan makes a good business. Before getting started, you need to have a clear vision of how your platform will be organized as well as how it will operate and make profits. An insight into the business model and key features is important, you can find information online and write your own business plan. Your local chamber of commerce and government economic development agencies may also provide support and resources.
A business plan generally includes a summary, company description, market overview, sales & marketing strategy, operating plan, finances, etc. Since you are just getting started, your business plan does not need to be too specific and detailed. The most important aspects are goals, strategy and initial funds.
4.2 Register your business
You have to register your business to make it a distinct legal entity. The process of business registration varies depending on the type of operation, how big it is, and the region you live in. Therefore, the first step is to decide on a business structure (tutors who decide to operate as sole proprietorship or partnership may not have to register their business), you should also consider the Trademark or Entity Name for your business, and register with different departments and agencies before you get the licenses and permits. For more detailed information, you may refer to the article How to Register a Business .
4.3 Design a website
It is important for an online tutoring business to have a strong online presence, and a professional and well-designed website adds credibility to your business and facilitates publicity. You can hire a web designer to develop your website, purchase a ready-made platform, or create a website on your own.
It doesn’t matter if you don’t know how to code and design as there are many user-friendly and cost-effective website builder tools to help you set up a site in a couple of days.
5. Promoting your business
There are many channels to market and promote a business. Firstly, you can set up business accounts on social media that the clients are most likely to use (Facebook, Instagram, Twitter LinkedIn, WhatsApp, etc.) , and you should encourage comments on the social media page, so parents and students can review and leave testimonials.
It is also recommended to make the most of top review sites. Adding a page on Google My Business or Yelp encourages more clients to leave reviews, and it also helps direct new potential clients to the business . Here are also some other popular review sites for you to choose from.
With more time and funds, Google ads, email marketing, newsletters, and blogging are also effective marketing methods for greater exposure and retention.
How To Start An Online Tutoring Business: Prerequisites & 8 Steps To Success
All The Steps Needed To Start Your Online Tutoring Business
How To Start An Online Tutoring Business
E-Learning Market Size, Trends | Industry Analysis -2030
How To Become a Tutor
12 Best Online Tutoring Websites For Online Tutoring Jobs At Home
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Tutoring Business Plan Sample
Tutoring business plan for your own tutoring company
Are you thinking about opening a tutoring business ? Well, if you love to interact with people and have the passion as well as the skill of transferring knowledge then it is definitely the best profession for you. Tutoring may seem like a simple service business where you just have to share your knowledge with a group of individuals in return for a fee but, in order to excel in this tutoring business plan , you must love to teach otherwise you will find it a difficult and stressful task.
The biggest benefit of starting your own tutoring business is that this business can be started on any scale. You can even start it from a small rented house business or your home with a little to no investment. In such cases, all you possess is sound knowledge of what you will be teaching to your students. On the other hand, if you want to start a proper tutoring center where students with different age groups and educational backgrounds will be helped with their education, you will first have to prepare a comprehensive tutoring business plan . The tutoring business plan will not only establish the basis of your company’s future operations and decisions but will also help you with startup. So, if you are wondering how to write an effective tutoring business plan , here we are providing you the tutoring business plan of a startup named ‘Katie’s Tutoring Service’.
2.1 the business.
Katie’s Tutoring Service will be a tutoring center that will provide high school tutoring, college admission test preparation, undergraduate tutoring and individual tutoring to the students. The tutoring business plan will be started in a small rented location in downtown Manhattan.
Katie’s Tutoring Service will be a sole proprietorship owned by Katie Gill who has recently completed her bachelors in Mathematics from Michigan State University. Katie loves tutoring and decided to start a tutoring service only because of her passion to teach. She has been tutoring students for the last 3 years and due to her academic background and the experience gained during these years, Katie knows everything about how to open a tutoring business .
Our customers include high school students, high school graduates, and undergraduate students based in Manhattan. At our tutoring center, we will focus on building skills in our students rather than providing them with knowledge only.
2.4 Target of the Company
Our target is to become the best tutoring center in Manhattan within next five years of startup and to balance the cost of the startup with earned profits within next one year. The company’s three years target is outlined as follows:
3.1 company owner.
Katie’s Tutoring Service will be a sole proprietorship owned by Katie Gill. Katie has recently completed her bachelors in Mathematics from Michigan State University and has been tutoring students for the last 3 years.
3.2 Why the Business is being started
Katie began tutoring when she was in the second year of her studies. At first, she tutored a couple of juniors but in the process, she discovered how well can she convey her knowledge to others. Soon, something which was started just to help a couple of juniors, turned into her passion ultimately leading her to starting a tutoring business .
3.3 How the Business will be started
The first thing to do before you start thinking about how to start your own tutoring business is to develop a detailed tutoring business plan for your startup. After this phase, you can start executing the planned steps. Katie will start her tutoring company in a small rented location in downtown Manhattan. The facility comprises of 6 rooms which will be converted into classrooms. Other than chairs, desks and the usual inventory, the company will procure 6 whiteboards, 6 projectors, and 7 computers. The costs for the startup are as follows:
The detailed startup requirements are given below:
Services for customers
After you have planned how to build a tutoring business , the next step is to plan what types of tutoring services will you provide to your students. This step is extremely important because all the subsequent things will depend on your services so make sure to plan it before starting a tutoring business plan or even before thinking about how to start a tutoring service . Katie’s Tutoring Service will provide following tutoring services to its students:
- High School tutoring: We will provide tutoring services to the high school students who are lagging behind in one or more subjects due to any reason. Our system of tutoring high school students is based on building problem-solving skills in the students for future applications as compared to the usual system of answering the students’ immediate questions.
- Admission tests preparation: Most colleges and universities in the United States require that students applying for admission in them take one or more standardized admission tests like SAT and ACT. We will provide tutoring to high school graduates so as to prepare them for undertaking these entrance tests required for getting admission in their desired college/university.
- Undergrad tutoring: Undergraduate students from different colleges or universities often need help with one or more courses, and at our tutoring center, they will get the guidance they need to go through these courses. Initially, we will only be offering Mathematics related courses including Algebra, Calculus, Statistics, and Finance.
- Individual tutoring: We will also offer individual tutoring services to the students who either join us between our ongoing sessions or are in need of special attention due to their poor academic background.
Marketing Analysis of tutoring business
The most important component of an effective private tutoring business plan is its accurate marketing analysis that’s why Katie acquired the services of marketing experts to help her through this phase. It is only after this stage that a good tutoring business plan could have been developed. If you are going to start a tutoring business on a smaller scale then you can carry out the marketing analysis of your tutoring business plan yourself by taking help from this tutoring business plan sample . On the other hand, if you are planning a large-scale tutoring business model , you should seek help from marketing experts. Doing so, you can get a lot of tutoring business ideas and will also be able to make an effective marketing plan for tutoring business .
In any case, pay special attention to the marketing plan of your tutoring business plan before thinking about how to start a tutoring business .
The four main steps to carry out an accurate marketing analysis of a tutoring center business plan are to identify the current market trends, identify your target audience and potential clients, set out the business targets to achieve, and finally set the prices of your services.
5.1 Market and Industry Trends
According to IBISWorld, US tutoring industry generates around 1 billion dollars in revenue every year. There are more than 3,500 tutoring businesses in the United States responsible for employing nearly 39,000 people. Moreover, the industry is growing steadily at a rate of 3.5% and the number of tutoring and test preparation centers are on the rise in the United States. Considering these stats, it will not be wrong to establish that this industry presents a lot of opportunities. Another important thing that you should consider before you start your own tutoring business is ensuring that you are based in the right location. Location is one of the most important factors that decide the success of this tutoring business plan . Residential areas are ideally the best regions to start a tutoring center because the tutoring center will then be easily accessible to most of the students it will be targeting.
5.2 Marketing Segmentation
Katie’s Tutoring Service is located at a 5 minutes’ walk from the main residential zone of Manhattan and is therefore fairly accessible to the residential community which is our primary target market. The location was also selected because there are no tutoring centers which provide admission test preparation services to the students in a 5 km radius around us. The residential community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000. There are currently more than 738,000 households in Manhattan out of which 17.1% have children under the age of 18 living with them. In addition to that, 59.1% are non-families, out of which 48.0% population comprises of individuals living alone. A successful and efficient marketing strategy can only be developed after we completely know our potential clients. Our experts have identified the following type of target audience which can become our future consumers:
The detailed marketing segmentation of our target audience is as follows:
5.2.1 High School students:
Our first target group comprises of the students who are studying in high schools. Most of the high school students in the United States face difficulty with Mathematics and Sciences like Physics, Chemistry, and Biology. Moreover, sometimes students miss their classes due to absences caused by illnesses, family issues or other engagements. Our tutoring service will be the perfect place for these students to make up their deficiencies in one or more subjects.
5.2.2 High School graduates:
This group comprises of those students who are about to graduate or have recently graduated from high schools and are trying to secure admission to a university/college of good standing. This group will not only be given a conceptual overview of particular courses but will also be subjected to regular practice tests. This group will contribute the biggest chunk of our revenue and hence our marketing business strategy will be specifically built to target them.
5.2.3 Undergrad students:
This group includes the students who are studying in colleges or universities and are finding it difficult to grasp one or more courses. However, initially, we are only offering a limited number of courses to this group since the tutors required for teaching undergrad students must be specialized in their field of study. This group will be directly taught by Katie herself along with one of her friends who is a business graduate from Harvard University. The detailed market analysis of our potential clients is given in the following table:
5.3 Business Target
We aim to become the best tutoring center in Manhattan within next five years of our startup. Our main tutoring business plan targets to be achieved as milestones over the course of next three years are as follows:
- To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
- To balance the initial cost of the startup with earned profits by the end of the first year
- To get all high school and undergrad students cleared up in their respective courses
5.4 Product Pricing
After considering the market demands and the current competition, we have priced our tutoring services in the similar ranges as of our competitors. The fee for individual tutoring will be $20/hour for high school students and $40/hour for undergraduate students.
Like marketing analysis, sales strategy is also an important component of a tutoring business plan so it must be given proper attention before you think about how to start tutoring business .
L-1 Update – RateGain – KOTHARI, Siddharth
Alex has been super quick with his responses to my emails. I needed my business plan very urgently and whether it was Saturday or Sunday, Alex made sure that i had my plan ready in the shortest amount of time possible. My finance team is also very impressed. Well done Alex and keep up the good work!!!!! Sid Kothari Executive Vice President www.rategain.com 470.422.8578 8300 Greensboro Drive, Suite 800, Mclean, VA, 22102
Marketing analysis describes which individuals are you supposed to target and sales strategy describes how you are going to target them. A good sales strategy is based on an accurate competitive analysis which enables you to present yourself to your customers in the best way possible.
6.1 Competitive Analysis
As mentioned earlier, there are more than 3,500 tutoring businesses located across the United States. To survive and excel in such competitive environment, it is essential for a startup to work on its competitive aspects which will give it an advantage over the rest of the similar businesses in the locality. Our biggest competitive advantage will be our high-quality and unparalleled services provided at suitable rates. We will address the issues of every student individually and work with them to improve their problem identification and problem-solving skills.
6.2 Sales Strategy
After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.
- We will carry out a large-scale social media campaign for our advertisement.
- We will establish a strong online presence by using SEM/SEO techniques.
- We will arrange seminars and sessions for providing information about college admission procedure/tests.
- We will partner with local high schools and will provide our services to them for tutoring their low-performing students.
6.3 Sales Monthly
Our monthly sales, as forecasted by our experts, are as follows:
6.4 Sales Yearly
Our yearly sales, as forecasted by our experts, are as follows:
6.5 Sales Forecast
Considering the quality of our services and our unparalleled client service, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted in detailed the following sales on a yearly basis which are summarized in the column charts.
The detailed information about sales forecast, total unit sales, total sales is given in the following table:
Personnel plan is important since the success of tutoring business plan significantly depends upon its employees. It is never easy to estimate the number and type of staff needed for a company before it is even launched therefore it is better to seek the help of HR experts to get through this phase. However, you can also have a rough idea yourself before you decide on how to start your own tutoring service . Katie has developed the following personnel plan for starting a tutoring company .
7.1 Company Staff
Katie will act as the General Manager of the company and will manage its overall operations while the following people will be hired initially:
- 1 Accountant for maintaining financial records of the center
- 2 Sales Executives responsible for marketing and discovering new ventures
- 10 Tutors for tutoring different subjects and courses
- 4 Assistants for undertaking various day-to-day tasks in the center
- 1 Technical Assistant for managing company’s web pages and social media accounts
- 1 Front Desk Officer for acting as a Receptionist and receiving calls
All the employees needed to start a tutoring company will be hired by following strict testing procedures and will also be trained before onboarding.
7.2 Average Salary of Employees
The following table shows the forecasted data about the salaries of the employees for the next three years. These salaries are just an estimate and are also expected to deviate but the overall expenses will be more or less the same.
Just like the other plans, you must also prepare a detailed financial plan covering all financial aspects of your startup before you move on to starting a tutoring center . The financial plan should craft a detailed map about the costs of startup, inventory, payroll, equipment, rent, utilities and how these costs will be covered by the earned profits. Also, make sure to carry out a detailed profit and loss analysis before getting to think about how to start a tutoring company . The financial plan of Katie’s Tutoring Service outlines the development of the company over the next three years and is specifically developed to achieve the company’s short-term as well as the long-term objectives.
8.1 Important Assumptions
8.2 brake-even analysis.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
8.5 Projected Balance Sheet
8.6 business ratios.
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Crafting the Perfect Tutoring Business Plan: All the Whats, Whens, and Hows
Starting a business with no plan is like walking into a classroom with no lesson plan. As a tutoring business owner, you need to have a clear action plan and understanding of what will impact major decisions – which is exactly what a well-written tutoring business plan can help you with.
Not just that, having a business plan can also help you get financing. A study at the University of Oregon says that “businesses intending to secure a loan and those intending to secure investment capital using a business plan are positively correlated with the chance of succeeding at them”.
While some decisions are based on risk, you cannot depend on a stroke of luck for the success of your business. This is why you need a business plan.
In this blog, we have put together a comprehensive guide on how you can create a business plan for your tutoring business from scratch. Here’s what we are going to discuss:
What is a business plan and when do you use it?
- How to make a business plan for your tutoring service?
- What are some common mistakes and best practices?
You can jump to any section directly by clicking on the links. Plus, we also have a handy checklist for you towards the end!
The definition of a business plan will depend on what you need for your tutoring business. Generally, a business plan is a document that clearly defines your milestones and how you plan to achieve them.
We all plan. If you have a gathering with your friends in the evening, you set time aside for them, prepare some food, maybe even choose your outfit for it. It is human nature to plan.
We need to document these plans so there is a hard copy of all important details and goals, making it easier to keep track of these details and improve upon them, which is exactly what a business plan will help you with!
A business plan is a good tool to:
- organize your thoughts.
- make sound decisions with solid projections to reach your targets.
- communicate your plans to banks, your partners, and even your employees.
We now know what a business plan is. Now it’s time to understand its utility. In the next section, we cover a few scenarios in which businesses often need a business plan and how the format of the plan changes according to its utility.
4 situations where having a business plan will help you grow your business
Situation 1: when you are just starting:.
- While starting, a business plan can serve as a plan of action . It is unlikely that you immediately want to secure loans or funding when starting, but creating a business plan can significantly clarify your next steps.
- Having guesstimates in your forecast can be risky in the long run, which means having experience in predicting your financial future might make forecasting more dependable. To get that experience, you can start with a business plan.
Situation 2: When bringing in partners:
- Asking someone to commit to your tutoring business and sharing your passion before knowing the ins and outs is like asking them to buy a house without checking it out in person first.
- The spontaneity might seem fun at first but it is a huge commitment that needs a thorough evaluation. Using a business plan will help you convey your vision succinctly and show every relevant point to a potential partner.
Situation 3: When you are embarking on joint ventures:
- A joint venture is an agreement between two companies to share the work and the profit and have the same or similar goals . As a tutoring business, you could have this agreement with non-profit organizations, or aided educational institutions.
- A business plan would be a handy tool to relay not just the vision of your business, but also all required information, like your projected profit and loss, your sales tactics, and anything else you might feel are relevant.
Situation 4: When you need to secure financing:
- A good and well-written business plan will summarize your business’s history and background, which you will need to successfully communicate to banks and investors and secure financing . It is your opportunity to convince investors that your business will be a high yield investment for their money.
- Lenders will want to see the actual potential in your business. Every detail from your marketing strategy to financial projection has to be presented to them to showcase that potential . This will be best done with a business plan.
As the owner of your business, you know what situation your business is in. Knowing that we can now move forward to define the ways you can create your business plan.
What are the approaches to creating a business plan for your tutoring service?
Creating a business plan may seem like a daunting task, but we are here to help you through the process. The following are 3 different approaches to go about making your tutoring business plan. You can read and decide which approach is most suitable for you:
Use easy-to-download functionality:
You can use templates available at your disposal if you like to fill-in-the-blanks:
- BPlans also offer different types of business plans, traditional, lean, even particular sections, like investor pitch templates, SWOT templates, Sales forecast templates.
- They require a free sign-up for download.
You can also make a business plan for your tutoring center from scratch:
- This might seem labor heavy but it is the most cost-effective way of creating a business plan.
- It is also the way which might even give you the most satisfaction with the result. After all, no one knows your business better than you do.
- You can jump ahead to find an in-depth explanation of how to make your business plan .
Use online tools and resources:
There are multiple resources available on the internet that can help you make a business plan.
You could hire someone online to make the business plan for you. Freelancing platforms like Fiverr or Upwork are available where they charge anywhere from 20$ to 500$ depending on how much you need in your business plan.
There are also services like LivePlan , Enloop , and StratPad that help businesses with planning and writing tutor business plans. Both LivePlan and Enloop offer free trials whereas StratPad does not. The pricing for each service ranges from $8 – $19 for their first-tier paid versions.
Consult a professional business plan consultant:
If you think this is the path you want to take then make sure to check the following metrics:
- Do they have a credible website?
- Are they getting good reviews?
- Do they truly understand your business?
- Do you feel comfortable asking them questions?
If the answer to all these questions is yes, then you can go ahead and pick them as your business plan consultant.
A business plan consultant will charge anywhere between $5000 to $20,000. Sometimes they might also charge up to up $50,000.
How to create your tutoring business plan from scratch?
Things from here might get a little bit confusing, but we are here to guide you through this. We will start with the two different types of business plans:
- Traditional business plan: This is a long-form business plan. This contains every small detail of your business, from the business description to the financial projection. If your business is in Situation 3 or 4, you need a traditional business plan
- Lean business plan: This is a brief and clear way of writing a business plan and is much shorter than the traditional plan. If your business is in Situation 1 or 2, you need a lean business plan.
All the common points in the Venn diagram are explained in the traditional business plan section.
How to create a traditional business plan for tutors?
Akin to detailed notes that you want to share with your students after class, a traditional plan is usually needed when you share it with your investors to secure financing. A traditional plan is usually long-form and very detailed. The following are the components of a traditional business plan:
While the executive summary is usually mentioned at the beginning of the business plan, it is prepared last . This section is usually a make-or-break. It should ideally summarize how your tutoring business is solving students’ problems in one or two pages.
Do not try to use hyperboles and oversell your business. Focus on the problem that you are solving and giving the reader the right feel for your business.
- Start with an overview of the document.
- You can take a small summary section from each section that you will be covering.
- Keep it concise.
- Keep on polishing it. Read it every so often. Read it out loud.
This section of your tutoring service business plan is where you combine the key details of your business, like what you do, what is your unique selling proposition, etc. This section can be tricky, especially if you’re still in your planning stages.
An important decision to make for a tutoring business will be choosing the mode of teaching – either online or in-person.
If you decide to go the online teaching route, there are a lot of services that can help make scheduling and conducting classes easier .
Craft your problem statement, identify your target market, and explain your concept and strategy.
Some best practices are:
- Start with an elevator pitch : Give a short description of your business in a way that the investor will immediately understand in a short time. Identify your goal, explain what it is that you do, explain your USP, and put it together in a concise short paragraph.
- Use specifics : Always use specifics to create understanding. High-level information does not persuade, it creates a superficial comprehension. Conceptual understanding can only take you so far.
- Keep it concise: Explaining in specifics does not mean long drawn explanations of every point. Checking the length is key.
A market analysis is a completely exhaustive assessment of the tutoring market. The main purpose of this section is to understand what factors influence industry behavior and business performance of tutoring services.
Start high-level and then slowly ease into specific research. Once you understand your market in general terms, you can dig deeper into segments more relevant to you.
A few tips to carry out market research are:
- Conduct interviews and face-to-face discussions.
- Research the tutoring community and what are the current pain points that they are targeting.
- Check the pricing that the tutor services or private tutors in your area are charging.
- Create your buyer persona. Who is your target demographic?
- List out your primary competitors. If you’re an offline tuition service, it could be other tutors in your area. You can do this by searching on social media, or downloading a market report using Forrester or Gartner .
- Here is a guide on how to conduct market research properly.
Partners, Organization, and Resources:
This section highlights the key employees or even ideal staff members that you want to hire.
- Who are your critical partners? Who are your staff members?
- What is the hiring procedure like?
- What are the key resources such as licenses and intellectual properties?
The reason behind putting this section in your tutor business plan is two-fold. One is for the investors and lenders. More often than not in service businesses like yours, lenders feel the quality and experience of the management team is important.
The second reason is for you, as a business owner, to be able to evaluate your team’s skills and decide what resources might be needed.
Include details about what your team is offering in terms of the intended results. For example:
Joe Collins, 47, Assistant Professor
- Joe has 19 years of experience in teaching college students and has a doctorate in so and so. They have an undergraduate degree from Oxford University and got their MBA from the University of Pennsylvania. – full resume in the appendix.
Most importantly, when creating this section, make sure to pay attention to skills and what they bring to the table.
Sales and Marketing:
Customers knowing that your services exist is paramount. This is where your marketing plans come into play. It seems obvious when you think about it, but this area is where a lot of businesses miss the mark.
Marketing is not just having pamphlets to share or advertising on a local billboard. It’s public relations, promotional activity. This is where you implement your unique selling proposition (USP) to drive students and teachers to your door.
This section will cover your sales channels and marketing activities.
- How will you sell your services? Will it be online? Will it be through a website? How will you advertise your tutoring business?
- Take guest lectures, seminars, and webinars, and reach out to your audience via these channels.
- Harness the power of online forums and social media. You should be where your customers are. Your aim should be to build a brand presence with your audience. Respond to comments and queries on your posts to increase engagement and build a rapport.
- Here is a complete guide to help with advertising and expanding your tutoring business cost-effectively.
Just hearing the word “budget” might make you feel like it’s such a big task. Don’t worry. We’re here to help.
This section will help you evaluate where your business finances currently stand and what you need to do to hit your financial goals.
The basic process is to list your business’s fixed and variable costs monthly and then decide where to use your funds optimally.
Budgeting for new businesses, especially service businesses can be difficult. Since a budget is decided by your business’s return, make sure to implement your market research with due diligence. You will be offering your services as a product, focusing on your sales forecast and income-expenditure forecast will be a good metric.
Bench promises that “ Budgeting + Book-keeping = a match made in heaven ”. Making a budget is mostly fiction, just like most projections are. But they are based on realistic data.
The longer your business has been operating, the more solid groundwork you will have to make that fictional budget a functional budget. But to do that, you have to make sure that all your financial data is being recorded through bookkeeping.
Here is a handy template that you can use to record all of your existing finances .
Financial Planning and Projections:
If the first thing that comes to your head after reading the heading is “but we don’t have enough sales to project accurately”, don’t worry. It is completely normal for the first few forecasts to be based on rough guesses since initial sales are hard to predict.
This section should ideally forecast your future finances and how you intend to maximise revenue for your tutoring business . Most businesses will include the following in this section:
Depending on how long your business has been around, you can have short-term sales forecasts and long-term sales forecasts.
If you are a new business that has not been in the market for more than a couple of months, you do not have enough historical results, which might make forecasting challenging. But if you have a good understanding of the market you are entering, then it can be done.
Your forecast should be broken down by monthly sales. If you have been taking sessions for a couple of months, how many sessions you took, and the fee for every session.
This is also called the cash-flow projection.
It will outline how much revenue is coming in – which basically going to be how much you charge for your services and how much is going out, monthly, and based on that project the expected inflow and outflow.
Using your sales forecast and your budget forecast, you can estimate approximately what your cash-flow statement will look like.
Every business should strive to achieve its break-even point, which is simpler than it sounds. Break-even is when you are neither losing money nor gaining profits. This means that your profits and expenses are balanced and you have broken even.
If you have predicted your sales and cash flow accurately, then it should be feasible to find the break-even point of your business.
The information that you will need at hand is your costs and expenses. Your variable costs and fixed costs, the costs of paying your employees, etc.
Make a spreadsheet. This spreadsheet should ideally be turned into a graph to plot break-even.
Calculating break-even can be difficult for a service business like tutoring. To say it simply, break-even is:
Fixed Cost per unit / (Sales fees per unit – Variable Cost per unit)
Here, a unit could mean students/hours/courses depending on how you have set your fees.
Balance sheet projection
If you are new to accounting, creating a balance sheet may make you nervous, but it is quite easy to understand.
What is a balance sheet? A balance sheet keeps track of certain elements of your business to determine where you stand financially in your tutoring business.
You can use your current balance sheet to predict your future balance sheet more accurately. Your balance sheet should ideally have:
- Current assets are what your business can expect to convert into cash within a year.
- Noncurrent assets are long-term investments that you do not expect to convert into cash in the near future.
- Liabilities: This would be anything that your business owes to a debtor. It may include utilities, rent, taxes, etc. Just like your assets, your liabilities should also be separated into current and non-current liabilities.
- Equity: This is the difference between your assets and liabilities, what remains when the business sells all its assets and pays off all its debts.
Assets = Liabilities + Equity
Thinking of the balance sheet as a report, you have to decide on the period of reporting. Is it going to be monthly? Quarterly? Annually?
Once you’re done listing everything in your balance sheet, mention a brief of each of these three components.
A more in-depth explanation of how to make a balance sheet can be found here.
Here is an example of a balance sheet.
This section is usually the last thing to appear in the traditional business plan. Although not absolutely necessary, a well-structured appendix can go a long way to convince any plan-reader that the planning is great and well thought out.
Generally, an appendix will include:
- Charts, graphs, or tables that supplement information from other sections.
- Any agreements, contracts, and supporting documents.
- Marketing materials.
- Resumes for each of your staff members.
- Credit history.
- Building permit and equipment lease documentation (for offline tutoring).
How to create a lean business plan for tutors?
Now that we’ve seen what a traditional business plan is, it is time we understand the components of a lean plan and how to go about building each section.
One thing to keep in mind is that the lean plan can always be updated into a traditional plan. Just because you are making a lean plan does not mean you are completely forgoing the traditional business plan.
It is similar to when you make short notes to teach in class and improve as you go, based on requirements. The lean business plan is usually used to manage strategy, tactics, milestones, and activities.
The components of a lean plan are:
Your business strategy should ideally outline who you are and what you are going to do in simple and understandable statements.
- Business identity: Who are you and what is your business? Your identity adds brand value. Especially as a tutor, your identity is your most important asset. You can create a tagline for your tutoring business. For example: Smart and indulgent tutoring, for smart and inquisitive students. Mention the ways you will be defining your business identity. Like “We have created our business logo. -insert picture of the logo- ”
- Problem: What problem are you solving for your students? You should have the ability to define what the problem is in a few points. Eg: It could be that you will be tutoring and helping people with dyslexia.
- Solution: How are you solving the problem that you have identified? This should be a brief description of your service and how your service might benefit your students. Eg: What are the steps you are taking to teach your dyslexic students?
- Market Research and Competition: This section is synonymous with the section “ Market research ” in the traditional business plan.
The tactics section is an outline of how you will make your strategy happen. All parts of tactics are common with other points in the traditional business plan:
- Sales channels and marketing ideas : This section is the same as the “ Sales and marketing ” section in the traditional business plan.
- Partners and resources : As the name suggests, this section is the same as the “ Partners, organizations and resources ” section in the traditional business plan.
You may need to add some additional tactics, such as details of services, locations, and other key aspects.
The schedule is basically a list of tasks, milestones, with dates, responsibilities, and budgets. It’s the promise of commitment, that you will need to have to build your tutoring business successfully.
- Seeing as the lean plan is based on customer needs and iteration, it is paramount to create a plan and schedule tasks to test yourself with some students before launching into your tutoring business journey.
- Make a list of all the steps and tasks that you will need to complete to get your business up and running. This could include getting permits and licenses, dates for registering your business, or even choosing and setting up your tutor scheduling software.
- Finally and most importantly, you need to create a schedule to constantly review and revise your plan. If your plan is not regularly updated and checked, you could easily go off track.
This is your plan to make a profit. A business model will generally include information about your service, your target market, and anticipated expenses in brief.
- For most businesses, this is a straightforward concept. But this section avoids the hassle of financial forecasts as those can be hard to predict accurately.
- Listing out your primary revenue streams and major expenses as a bulleted list is easier and more dependable.
5 common mistakes to avoid while making your business plan
Now that you have some in-depth knowledge about crafting a tuition business plan, here are 5 mistakes you should avoid making to make your business plan foolproof:
- Every statistic and detail in your plan should be based on realistic data . Your plan should not have unrealistic financial projections.
- Do not be inconsistent, your plan should quote consistent stats and have solid, unidirectional strategies.
- Be clear of what your business plan is. A business plan is not a detailed and defined budget. While a budget is part of it, the business plan is more than just your income and expenses.
- Do not include too much information. The purpose of your plan is to be concise and to focus on the key elements of your tutoring business.
- Make sure your plan is proofread multiple times. Include your team in the process.
Choosing the right tutoring business plan is like choosing whether you want to write detailed lesson notes or short-hand notes which can be expanded upon. Both have their own merits and times where they want to be used.
While having a business plan does not guarantee the success of your business, it does reduce the likelihood of failure .
If you’re wondering how you’re supposed to remember all of that, don’t worry! We made a checklist for you, mentioning both the traditional business plan and the lean one , so you don’t have to scavenge through the entire article to find the relevant points. Here’s a sneak peek of the checklist:
Having a plan is not just about being 2 pages or 40 pages long but more about setting the right goals regularly and tracking progress , making changes as you gain more feedback from your students and their parents. Tutor scheduling software , like Appointy, is being used for exactly this reason.
Crafting a business plan is all about knowing what your business is and figuring out how to understand your students and their needs. It can seem intimidating at first, but the one thing you should always keep in mind is that there is no single “right” way .
Do let us know if we succeeded in answering your questions in the comment section below!
About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day. If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below. We love a good talk!
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A proper procedural explanation. Very informative.
I’ve bookmarked it in my google bookmarks.
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Here is in general an outlook of what your Tutorial Business Plan may include.
1. assessment., 3. outline., 4. vision and mission., college academic business plan example.
However, your local bureau may look for the following for legal purposes.
1. executive summary, 2. company description, 3. market analysis, 4. organization and management, 5. service or product, 6. marketing and sales, 7. funding request, 8. financial projections, 9. appendix, online tutoring example.
How to Sell tutoring Services to School Example
And to make it concrete, you may want to follow some steps in doing your business:
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How To Create Your Tutoring Business Plan From Scratch?
Do you excel in a subject and think you are confident enough to tutor? Running an online tutoring business may be an excellent choice for you, as it can be rewarding. Whether you are a fresh graduate, a university teacher, or a retired educator, this is a business idea that you can rely on, which can bring additional income for you. After all, teachers are always in demand.
As an edTech business owner, you need to have a tutoring business plan with a clear idea of how it will impact important decisions.
Have you considered starting a tutoring business but are unsure where to start? In this blog, we will walk through important ideas for where you can start a tutoring business .
What exactly is a tutoring business plan?
The biggest advantage of starting a tutoring business is that you can get started on any scale. You can begin with little to no investment and can scale as you expand. On the other hand, if you want to start a proper tutoring business where students belonging to different educational backgrounds and age groups will be helped with your classes, you will have to prepare a comprehensive tutoring service business plan.
A tutoring business plan is a documented strategy for a business that highlights the goals and plans to become successful. The plan outlines the businesses’ market research, promotion plans, financial aspects, business purpose, and more.
A business plan’s purpose is to summarize a tutoring business’s strategies to execute it long-term, securing financing from investors and helping predict future business demands.
What must a tutoring business plan include?
When you discuss your business ideas with your investors to secure financing, you need a traditional business plan to present. A business must be in its long-form and very detailed, and here are the following components of a traditional business plan.
Business plan subtitle
Every good tutoring business plan must begin with a captivating title and subtitle. In the business plan, you have to make it clear what the document is all about, and you can use the subtitle to tell the story of your online tutoring business in a short and precise manner.
While the executive summary is the last thing you will write, it is the first section the stakeholders will read and hence the most important part of your online tutoring business plan.
The brief section of your tutoring business plan includes your business name, years in operation, key offerings, and more. You can include core values and a short history of your organization here.
The business opportunity
The goal of this section is to clarify to investors that your tutoring business meets the market’s requirements in a way that no other business can. Here you can elucidate the specific channel your business solves within the marketplace and how it helps to overcome them.
Like every industry has more than one player, tutoring businesses have many key players, making competitive analysis a significant part of your tutoring business plan. In this section, take an objective look at the market to understand where your edTech business fits first.
Perform a strategic planning technique like SWOT (strengths, weaknesses, opportunities, and threats) to identify the strengths and weaknesses.
Define who your core customers are and why? The target market must include the demographics of your customers, psychographics, behavioral patterns, and geographies of the ideal clients.
This section briefly covers how you will promote your unique value proposition (USPs) to your target audience. Think broadly and briefly expand your points. Are you planning to adopt a slow but steady process where you make an upfront investment, or do you want to generate lots of quick customers using paid advertising strategy?
Make an outline of your business in terms of financial aspects and where you would like to be positioned in the future.
Now that you have outlined the business purpose and goals, it’s time to define your “Team.” If even if you don’t have every team member on board yet, assign different toles as you seek funding from investors.
Writing a tutoring business plan
When it comes to writing a tutoring service business plan, there is no right or wrong way. What is important is that your plan meets your requirements.
Most tutoring business plans fall into two common categories: traditional or lean startups.
Traditional business plans, as we discussed, use a standard structure and encourage you to go into detail in each section. It works more upfront and can be lengthy.
Whereas lean startup business plans are less common, but they still use a standard structure. It focuses on summarising the most important sections of the key elements of your business plan. It could take as little as 60 minutes are concluded in a single page.
Traditional business plan format
A traditional tutoring business plan format is often a detail-oriented plan and is written with the goal of requesting financing from investors. So here is what is included in this format.
Write an executive summary
The executive summary must include the following:
- A mission statement.
- A brief description of the services offered.
- A broad summary of your financial growth plans.
Describe your business
Your business description must include the following information:
- The registered name of the business.
- Address of your business location.
- Names of the key people in the business. You can also highlight your team member’s unique skills and technical expertise.
Make sure your business description also defines your business structure- Sole proprietorship, partnership, or corporation.
State your business goals
This section must explain why you have a clear need for the funds, how the financing can help your tutoring business grow , and how you plan to achieve your growth targets.
For example, if your tutoring business is launching a complimentary service, how will the financing plan help your business launch the new product, and how much sales can you earn over the next 5 years?
Describe your services and offerings
In this section, explain what your tutoring brand has to offer. It must include the following:
- Explain how your service will work.
- The revenue model for your tutoring service.
- The ideal client base you will serve.
- The sales plan and marketing strategy.
- Perform a business financial analysis.
If you are a startup tutoring business, you won’t have detailed information about your business financials yet. But if you are an existing business, you must include income, profit, and loss statements, a balance sheet that lists your assets and debts, a cash flow statement, etc.
Lean startup tutoring business plan format
If you are an edTech business and want to start a business quickly, you might prefer a lean startup format. This might suit you best if you regularly change and refine your tutoring business plan.
While there are different ways to create a lean startup business plan, let’s look into the important aspects of a sample business plan.
Include the other businesses or services you will work with to run your tutoring business. It can be partnering brands, strategic partners, etc.
List the ways your tutoring business will have a competitive advantage.
List down resources that you will use to create value for your customers. It can include your team, capital, etc.
Define your USPs to make it clear about the unique value your tutoring business brings to the market.
Be specific when you define your target market. Your tutoring business might not suit everyone, so defining whom your business will serve is important.
This is where your business plan defines how you would make a profit. A tutoring business model includes everything about your service, your target audience, and anticipated expenses. List down your primary revenue streams and expenses as a bulleted list.
A tutoring business plan is a blueprint of a business idea and why it would be successful. The more detailed information you put into your business plan, the more successful your business will be.
When creating a business plan, you must put in extensive market research and feedback from your team and follow a template to organize your thoughts in the right way.
It can seem intimidating at first, but you must keep in mind that there is no single right way.
We at Pinlearn help edTech businesses and independent educators establish, launch, run and grow their online tutoring businesses. If you need any assistance with launching an online tutoring plan, we can assist you with the guidance you require. Get in touch with us now.
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Tutoring business plan sample.
Do you love tutoring or have been a tutor before or doing it presently? Do you know that starting a tutoring business doesn’t have to be capital intensive? Do you think you can make $50 an hour without even stepping out of your room?
Indeed, all you have to do is let your brain do the walking by setting up an online tutoring business. The idea of tutoring and getting paid is: hatching the eggs of knowledge you possess into the birds of profit.
Tutor clients vary from students preparing for professional exams, international exams, to students who need aids with their assignments. Some tutors earn an average income of about $100 per hour.
The exciting part of starting an online tutor service is the painting of the realization that one can import the process of tutoring from the limited physical classrooms to the virtual and wider cyber classrooms.
This provides the possibility of an expert African mathematics tutor delivering lectures to a Danish student on algebra. Also, the flexibility of conducting tutorials online is one advantage that can hardly be over-emphasized.
The following are necessary considerations, and factors that would have to be addressed to open the business of online tutoring .
I will hammer on the four basic and important points that would constitute the pillars of making money from the venture and they include:
Tutor Your Way to Profits: How to Start Your Own Online Tutoring Business Model
1. Necessary Skills
It is of course grossly important that you have a fairly strong familiarity with the subject you intend to tutor. Your success as a freelance tutor is grossly dictated by this factor as one major promoter of any business are great testimonials.
The enthusiasm to teach must be an avalanche. You must be zealous about your duties as a tutor; your success would depend on your diligence and uniqueness in this profitable education-based business idea .
Bad communication corrupts a good manner but good communication keeps clients wanting to get to know you more.
It is important that as one who intends to venture into an internet-based tutoring company, you should have good communication skills.
You must keep in mind that the advantage that face-to-face tutors have over online tutors is in this area, so you must do well to bridge up lapses in this area. You have to be reasonably responsive.
You should be a good listener, even to the silence of gestures. You should deduce a student’s problem and always attempt to solve them. This you can do by asking questions or giving assignments at the end of a tutorial.
Encouragements must constantly flow from you to your clients to develop them and keep them in line to learn. You know, Einstein once said, “I do not teach my students, I only provide the environment in which they can learn”.
To reasonably personalize your small tutoring business video interaction, it becomes necessary for you to have the teaching tools. One basic tool for doing this is Skype. This application also has other benefits like sharing of files, the use of emoticons to add flavor to the tutorial, and even sharing the screen for smoother conversation.
To replace the usual classroom boards, we use apps like Scribblar as virtual blackboards with equivalent utility. Other apps exist like IDroo, AWW, Realtime Board, and Sketchlot, most of which work in tandem with Skype.
You also need apps tools like TutorPanel that would play administratively the roles of scheduling tutoring sessions, automating billing and payment receipts, as well as session reminders. Another software that performs this duty is Teachworks.
Dropbox is another powerful file hosting tool that plays an important role in loosening the knot of file sharing between you and a client. Some tutor brands adopt the strategy of giving tutorials via a Youtube channel. We have the likes of Fermilab and Khan Academy; as well as Duolingo for language learning .
You could delve into using such an approach.
The platform offers chat and tutor an efficient environment for a tutor to discharge his duties, with aids like information regarding international curriculum and ease to connect with clients who desire your service.
Some renowned platforms include;
• eTutor • MathTutor • Tutor.com • Tutorvista • eTutorworld
So you would have to sign up with any of these platforms to commence your sojourn through the tasking yet the viable business of tutoring online.
4. Target Audience
Online tutoring business ideas need to have a good market strategy and plan. You must put in writing how you intend to reach and maintain your clients in your online tutoring business plan. I’ll highlight some strategies that you could adopt:
• Blog/Websites — This could facilitate your tutoring business in that it can serve an avenue to showcase and
advertise your expertise. Probably you could post links in possible blogs and sites where you could fetch potential clients. Then importantly it should be Search Engine optimized, though this could be reached as you go on.
• A good way is to register with popular online tutoring directories ; they make it possible for potential
students anywhere in the world to locate you, even without much effort. An example of such an establishment is My Private Tutor.
• Use of email marketing software like AWeber and Mailchimp to disburse emails to potential clients whose email directory you can have within your possession.
Hopefully, this article has exposed you to the necessities in starting an online tutoring business ; if you have got the intellectual and extra wits, it’s a powerful shot.
PRIVATE TUTORING BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a home-based learning center.
It takes more than knowing how to impart knowledge to start a business . As a business owner, knowing how to properly manage an organizational structure is of the essence. Hence managing a business is entirely on a different level when compared with being under the employ of an organization as a tutor.
Being a tutor can be very challenging, as you would have to ensure that the information you are trying to pass across is properly received. A tutor is only as successful as the knowledge passed across. Running a tutoring business will have to combine this attribute in addition to being a manager.
For persons planning to start an online tutoring business , this tutoring business plan sample will come handy as you need to know how to design one of the most important documents for any business venture. This guide will provide you with the needed assistance in drafting your unique plan. As evident in the title, this is only meant for guidance purposes.
The Headline Tutors is a tutoring service based out of San Diego, California . It offers a vast array of instructional services in the woodwork and electronic repairs sector. These services are offered at very affordable rates to clients from different walks of life and we accept clients with no background at all in these fields.
Our students/clients typically range from the total novices to those with an appreciable knowledge of these areas who are a bit rusty and would love to brush off on some memory as well as learn the newest trends.
Our team of experts/professionals are ever ready to commit themselves to impart their vast experience and knowledge in these fields into teaching willing clients about the tricks of the job and professions. These fields, especially woodwork has witnessed a surge in interest from a diverse group of people from different professions with absolutely no link to furniture making or woodwork. This is where the opportunity lies as we offer very practical approaches to learning, as well as a learning-friendly environment where students/clients are comfortable without distractions.
The Headline Tutors is a partnership entered into by childhood friends Jimmy Stuart a professional carpenter with over 30 years of experience in the woodwork industry and Mr. James Miller, an electronic repair expert who has spent 25 years working with electronics giant Philips. These have come together to start a business where they plan on combining their skills to teach people willing to learn.
There is a growing demand for the services of woodwork experts as well as electronic repair engineers. This has largely been driven by the innovations that have characterized these industries.
With the rising costs in electronic gadgets and furniture, people are increasingly tending towards learning to seek the services of experienced technicians and carpenters to fix their furniture and electronic gadgets. This is more so because fixing a faulty electronic product is cost-effective than having to buy a new one.
The only difference here, however, is a newer technology that may attract users to prefer buying new products.
Hence the demand for professional electronic repair and woodwork experts is on the rise. This is good for our business as we seek to provide the needed training, which will be accompanied by the necessary certifications after having been exposed to quality training.
Products and Services
For our woodwork department, the services on offer include tutoring on how to make wooden toys, varieties of bookcases, baby cradles, boxes, fruit bowls, blanket chests, as well as home pieces of furniture such as settee, beds, chair, tables, shelves and many more.
Our electronic department will offer to tutor on the repair of TV sets, radios, gym equipment, hospital equipment and many more, as most of these work on the same principle.
This business will be financed from two main sources that include savings set aside for this purpose by Messers.
Jimmy Stuart and James Miller amounting to the sum of $300,000.00, while the sum of $700,000.00 will be raised from loans obtained from financial institutions where the duo are both clients/customers.
At Headline Tutors, we have a projected sales forecast which has been arrived at by conducting a 3- year quality survey on the forces of demand and supply in the furniture and electronic repair markets. This has revealed a lot of prospects for your business as we will witness a steady rise in our revenues.
The chart below summarizes these findings;
- First Year $380,000.00
- Second-year $700,000.00
- Third Year $1,500,000.00
While several tutoring services are doing a good job, an advantage we have over these are our niche-specific areas of specialization. This allows for greater focus and a streamlined effort channeled into achieving the desired impact.
By choosing the two areas to focus on, we will offer more depth in tutoring and our clients will be the better for it as there are lesser distractions and they will only focus on what they are supposed to focus on.
Our Keys to Success
At Headline tutors, our keys to success include the creation of an excellent learning environment for the student that allows for maximum learning while also providing a work-friendly environment for our instructors to better express difficult concepts for better assimilation.
Also, our crop of instructors will be carefully chosen from the best in their respective fields. These would be persons with a passion to impart knowledge and experiences they have gathered over the years.
This is an outdoor and home tutoring business plan sample you can work with to achieve the best results with your business. The business plan is one of the most important documents necessary for success in business.
Hence you must give it due attention.
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A Comprehensive Business Plan for Launching the Online Tutoring Company
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Get this complete sample business plan as a free text document.
Tutoring Service Business Plan
Start your own tutoring service business plan
Bryan's Tutoring Service
Financial plan investor-ready personnel plan .">, key assumptions.
Our key assumptions are:
- In this education based society people to get degrees to get ahead.
- Not everyone learns the same.
- Different tools help different people ace the tests
Revenue by Month
Expenses by month, net profit (or loss) by year, use of funds.
The tutoring business will need about $5,000 to start. Costs include gas and transportation to meet with students away from his home and occasional handouts. Bryan has reserved a room in his house and an office/meeting room for his business. Additionally, Bryan incurs Internet service provider fees, and every two years a new computer.
Sources of Funds
Bryan will use the money he made in his side job to make the tutoring his only source of income.
Projected Profit and Loss
Projected balance sheet, projected cash flow statement.
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Business Plan Example: Math Masters Online Tutoring Service (Fictional Example)
I. Executive Summary
Math Masters is an innovative online tutoring service designed to deliver comprehensive mathematics education for undergraduate students across the United States. We aim to bridge the gap between academic pressure and student success by providing effective, engaging, and personalized online learning experiences.
II. Market Research and Analysis
Online education has been a burgeoning sector in recent years, with the COVID-19 pandemic accelerating this shift. The online tutoring market in the U.S. is projected to grow at an impressive CAGR of 12.75% between 2021 and 2025, making it an opportune time for entry.
- Remote Learning Acceptance: The pandemic necessitated a move to online education, familiarizing students with digital platforms.
- Flexible Learning Needs: Students are seeking flexible, personalized education solutions that cater to their individual learning styles and schedules.
We identify Chegg Tutors, Wyzant, and Tutor.com as primary competitors. Although they offer a broad range of subjects, Math Masters' emphasis on math education for undergraduates creates a unique niche.
III. Business Model & Pricing Strategy
Math Masters adopts a subscription-based model with three tiered plans - Basic, Advanced, and Premium. Each plan provides varying degrees of access to our services and resources.
Pricing is competitive and tailored to students' budget constraints. It's aligned with the market while considering the added value of specialized, targeted math instruction.
IV. Developing the Product
Our cornerstone product is personalized, one-on-one online math tutoring. These are live sessions with experienced tutors, offering interactive problem-solving and doubt clarification.
Subscribers gain access to a wealth of resources, including study guides, practice problems, and explainer videos, to further support their learning journey.
We offer a user-friendly platform with features such as session scheduling, progress tracking, and a review system for tutor feedback.
V. Target Customers
Our target customer profile centers around undergraduate students in the U.S., either pursuing a math-related major or those needing to fulfill math-oriented general education requirements.
These students typically fall within the 18-24 age range, are technologically adept, and often juggle academic responsibilities with part-time jobs or internships.
VI. Marketing Your Offer
Digital marketing strategy.
Our marketing approach leans heavily on digital channels. We plan to leverage targeted social media ads, optimize our website for search engines, and run email campaigns to draw in and retain customers.
Partnerships and Collaborations
We aim to form partnerships with U.S. colleges, providing exclusive offers for their students and hosting webinars or online workshops to demonstrate our value proposition.
VII. Financial Forecasts
We anticipate steady growth in revenue and our user base, projecting a breakeven point by the second year end.
Our financial model assumes a 10% conversion rate from free trials to paid subscriptions, and a subsequent 5% monthly growth in new subscribers.
VIII. Legal & Licenses
We are committed to abiding by federal and state laws relevant to online education and remote business operation, data privacy, and employment regulations.
We will secure the necessary business licenses and accreditation to operate legally and build credibility with our target market.
IX. Operations & Processes
Our primary operations will involve overseeing the online platform, quality control of tutoring services, and offering exceptional customer support.
We'll leverage automation for routine processes like scheduling and billing, with a dedicated team for personal interactions, such as customer queries and tutor support.
Our tutors, the backbone of Math Masters, will be independent contractors, with clear guidelines for quality of instruction, scheduling flexibility, and professional conduct.
Math Masters is strategically positioned to capitalize on the growing trend of online education. Our targeted focus on undergraduate math tutoring, coupled with a well-defined business model, sets us on a path towards becoming a trusted name in online math tutoring across the U.S.
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If you plan on running your own business, then it’s very important that you’re able to outline everything that you’re supposed to be doing. It’s important that you’re able to come up with a proper plan where you know what goals you want to accomplish and what you have to do in order to accomplish them. You can also read free plan templates .
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Private Tutoring Business Plan [Sample Template for 2024]
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Are you about starting a tutoring business? If YES, here is a complete sample private tutoring business plan template & feasibility report you can use for FREE .
Okay, so we have considered all the requirements for starting a private tutoring business . We also took it further by analyzing and drafting a sample private tutoring marketing plan template backed up by actionable guerrilla marketing ideas for private tutoring companies. So let’s proceed to the business planning section .
Some parents who have wards in schools are willing to go the extra mile to ensure that their wards are sound academically- hence the need for extra coaching – private tutorial services. So, if you are an academician or someone who is interested in the teaching industry and you don’t have the capacity to start a standard school, then you should look towards starting your own private tutorial business.
The demand for private tutorial services is driven by the fact that most schools cannot meet the educational criteria for all the students, and also the need to ensure that students meet up with educational standards nationally and internationally as well as get their grades up, this is where the private tutorial services come in.
If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan. Below is a sample private tutorial services company business plan template that will help you successfully launch your own business;
A Sample Private Tutoring Business Plan Template
Table of Content
1. Industry Overview
3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.
Tutoring is a craft that is as old as man, from when man passed on the knowledge acquired from making fire, preserving cultures, to modern day classroom learning.
Tutoring can be informal (from parents to children) or formal (from an instructor to others) and can happen in any setting, the homes, offices, and schools. This is to say that even though schools might be considered the only place serious tutoring takes place, it isn’t the only place.
Apart from academics, there is skilled based tutoring- this is where an individual or a group is tutored on skills such as dance, singing, and sports and so on.
This guide will focus on school-based tutoring. Earlier, the myth had been that only slow learners needed tutoring, but this isn’t true as even bright students still get tutoring that is aimed at helping them further improve on what they know, thereby brightening their grades more.
Private tutoring has become so popular due to the fact that both parents now work, having little or no time to tutor their children, as against previously where only one worked and the other helped tutor the child. Apart from having no time, parents aren’t equipped to handle new information and knowledge that is the prerogative of a tutor or teacher, to use in teaching their children.
Due to this fact, there has been a tremendous demand for private tutors therefore creating a thriving tutoring industry. Most tutors are freelancers, making this industry a good one for entrepreneurs to set up.
Entrepreneurs who want to set up a tutorial school do not need to be professional teachers, but have to know where to source for clients in this case students, and how to give them a quality service so much so that they become a source of reference in bringing other clients.
Tutors are people employed to educate others, either individually, in small groups or in a large group. The key attributes needed to be able to start a private tutorial services are patience, enthusiasm, passion about the specific subjects to be tutored, and constant positivity.
Also needed are planning, preparation, and certain other organizational skills. Entrepreneurs who want to open or start a private tutorial service – either online, private, or a large school – will have to know the requirements needed – either for the school itself, or the tutors that would need to be employed – by the locality, city, state, and association or trade body where they intend to operate from.
In Hong Kong, the Census and Statistics Department pegs the tutoring industry as worth HK$400 million, .4 billion in india, and $12 billion in Japan.
In California alone in the united states, there are over 34,000 registered tutors. In fact, an educational market research and consulting firm states that revenue from tutoring, test preparation services, and supplemental content industry for kindergarten through 12th grade grew 6% in 2004 to 2005, rose and reached $21.9 billion.
For high and middle school students, online tutoring had revenue of $115 million. In Pakistan alone, parents spent an average of $3.40 a month in 2011, while in India it was about $2 per month. Whilst in South Korea, 90% of students receive extra tutoring from tutorial schools, in Hong Kong; the rate is 85% of students,
Even though this might seem like a saturated field, it isn’t as there is always a constant demand for private tutors – especially as traditional schools keep taking in new students’ intake that might require an upgrade of their grades through taking extra tutoring lessons from tutorial schools.
The incentives in venturing into or starting a tutorial school are having an impact on students who are struggling academically, or students who want their grades to remain up. Another thing is the available market for tutors either home based tutors, online tutors, or large tutorial schools.
2. Executive Summary
Brainers® Private Tutors Services is registered private tutorial services business that will be located in a well – populated residential estate in Los Angeles – California, United States of America.
We standard private tutorial services providers that are set to handle all high school related subjects for both teenagers and adults who would want to enroll for adult education. We will engage in home tutors – we will go to the homes of our students as demanded by their parents.
Brainers® Private Tutors Services is a client-focused and result driven private tutorial services that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients (students and parents alike).
We will offer standard and professional teaching services to all to our students (high school students and those that enroll in adult education classes). We will ensure that we work hard to meet and surpass all our students’ expectations and educational goals whenever they hire our services.
At Brainers® Private Tutors Services, our students’ overall best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professional teachers in various subjects who are well experienced and passionate in imparting knowledge to students at various learning ladder.
Brainers® Private Tutors Services will at all-time demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our students’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our students.
Our overall business goal is to position our private tutorial services to become the leading private tutorial brand in the educational industry in the whole of Los Angeles – California, and also to be amongst the top 10 private tutorial services business in the United States of America within the first 5 years of operations.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Los Angeles – California is the right place to launch our private tutorial services business.
Brainers® Private Tutors Services is founded by Tommy Dyer, Zoe Johnson and Julius Fox. All the members of the team can comfortably boast of having a solid education background and have worked with various students at different level of learning.
All the founding members have equal stake in the business and they will be actively involved in running the private tutorial services business.
Brainers® Private Tutors Services is going to teach varieties of subjects within the scope of the education board in the United States of America.
Our intention of starting our private tutorial services is to soundly educate people in various subjects and of course to make profits from the education industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings are listed below;
- Offering Home tutor services (teaching various subjects to students at different learning levels)
- Retailing of educational books and materials
- Our vision is to build a highly competitive private tutorial services business that will become the number one choice for both parents and students in the whole of Los Angeles. Our vision reflects our values: integrity, service, excellence and teamwork.
- Our mission is to provide professional home tutorial services to students. Our overall business goal is to position our private tutorial services to become the leading private tutorial brand in the educational industry in the whole of Los Angeles – California, and also to be amongst the top 10 private tutorial services business in the United States of America within the first 5 years of operations.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our private tutorial services business on the right business foundation.
As a matter of fact, we are set out to build a private tutorial services business that will be a standard for the private tutorial services line of business in the United States of America. We want to build a business of dedicated workforce who will go all the way to ensure that our students are satisfied and they get value for their money.
In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent tutorial services and run the business on autopilot. The success of our private tutorial services business will be anchored on the team not on any individual.
With the wide range of our subjects that we teach and the locations we intend covering, we are only expected to employ more than it is required to run a conventional private tutorial services business. Definitely, we will have various teachers to man the various subjects offering of Brainers® Private Tutors Services.
Brainers® Private Tutors Services will employ professionals and skilled people to occupy the following position;
- Head of the Private Tutorial Services / School Administrator
Tutors for Various Subjects
Accountant / Bursar
- Client Service Executive / Front Desk Officer
Head of the Private Tutorial Services / School Administrator:
- Responsible for providing direction for the business
- Responsible for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the organization
- Prepares budget and reports for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for all employees
- Regularly hold meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily activities of organization.
- Effectively teach subject / subjects as assigned by the school coordinator
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the private tutorial services
- Contributes his / her quota towards growing the private tutorial services
- Receives complaints from parents and channel it to the appropriate quarters
- Handles any other duty as assigned by the school coordinator.
- Identifies, prioritizes, and reaches out to new students, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, execute and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the tutorial college
- Serves as internal auditor for the tutorial college
Client Service Executive
- Welcomes students and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the school coordinator in an effective and timely manner
- Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
- Receives parcels / documents for Brainers® Private Tutors Services and distribute mails in the organization
- Handles any other duties as assigned by the Manager.
We are quite aware that there are several private tutorial services businesses all over Los Angeles and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
The Perfect Tutors Educational Center engaged the services of a core professional in the area of business consulting and structuring to assist our tutorial school in building a well – structured educational business that can favorably compete in the highly competitive education industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Brainers® Private Tutors Services. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Brainers® Private Tutors Services;
Our core strength lies in the power of our team; our workforce. We have a team that has successfully run a standard tutorial college, a team with excellent qualifications and experience in education. Trust and competence are key factors in this line of business and we can boast of having healthy dose of both.
We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors for business.
As a new private tutorial services provider in Los Angeles – California, it might take some time for our organization to break into the market and gain acceptance in the already saturated tutorial / education industry; that is perhaps our major weakness.
The opportunities in the tutorial / education industry is massive considering the number of parents who would want their wards to perform excellently well in their education and also adults who would want to learn how to read and write and also obtain high school diplomas. As a standard private tutorial services provider, we are ready to take advantage of any opportunity that comes our way.
Every business faces a threat or challenge at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the tutorial school.
Some of the threats that we are likely going to face as a private tutorial services provider operating in the United States of America are unfavorable government policies that might affect tutorial services, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power.
There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
The trend in the private tutorial line of business is that the keys to attracting students is the educational performance and the pass rate of their students in national exams. Any private tutorial services provider that has good records will always thrive.
The demand for private tutorial services is driven by the fact that most schools cannot meet the educational criteria for all the students, and also the need to ensure that students meet up with educational standards nationally and internationally as well as get their grades up, this is where private tutorial services providers come in.
The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. The areas you would need to spend heavily on is in ensuring that your teachers are well paid, their teaching style is up to standard, your advertisements, and insurance.
Even though Brainers® Private Tutors Services will initially serve high school students and those enrolling for adult education and later grow the tutorial school to accommodate middle school students As a standard private tutorial services provider, Brainers® Private Tutors Services offers a wide range of tutorial services hence we are well trained and equipped to services a wide range of students (adults and elderly inclusive).
Our target market as a private tutorial services provider cuts across people of different class and people from all walks of life. We are coming into the tutorial / education industry with a business concept that will enable us work with the students at different learning stages. Below is a list of the students that we have specifically design our tutorial services for;
- High school students
- Adults and Elderly who would want to enroll for adult education
- Middle school students
Our competitive advantage
This field is a highly intense one because of the level of quality service offerings by home tutors and tutorial schools, who are more pressured to deliver better services, lifting the pressure off traditional schools. Due to this pressure, there is a jostling amongst the different home tutors and tutorial schools to get more students, thereby increasing their earnings as well.
Hence, schools are besieged by requests to offer home tutorials to the students. It is for that reason that tutorial schools have had to step up on advertisements and publicity to retain an edge over competitors. Home tutors aren’t left out of this competition as well.
We are quite aware that to be highly competitive in the tutorial / education industry means that you should be able to deliver consistent quality service, your students should be able to experience remarkable difference and improvement and you should be able to meet the expectations of both students and parents alike.
Brainers® Private Tutors Services might be a new entrant into the tutorial / education industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals, licensed and highly qualified educationist at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees (tutors) will be well taken care of, and their welfare package will be among the best within our category (startups home tutors / tutorial centers in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
- Sources of Income
Brainers® Private Tutors Services is established with the aim of maximizing profits in the tutorial / education industry and we are going to go all the way to ensure that we do all it takes to attract students on a regular basis. Brainers® Private Tutors Services will generate income by offering the following tutorial services;
One thing is certain, there would always be parents and students who would need that extra coaching or push in their education to be able to achieve their educational goals and as such the services of tutorial centers / home tutors will always be needed.
We are well positioned to take on the available market in Los Angeles – California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the private tutorial business and our student base.
We have been able to critically examine the tutorial / education market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – California.
Below are the sales projections for Brainers® Private Tutors Services, it is based on the location of our private tutorial business and of course the wide range of subjects that we will be offering;
- First Fiscal Year-: $75,000
- Second Fiscal Year-: $150,000
- Third Fiscal Year-: $350,000
N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiffer competitions amongst private tutorial services provider in the United States of America, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Brainers® Private Tutors Services.
We will also ensure that our students’ excellent results from national exams and other exams speaks for us in the marketplace; we want to build a standard and first – class private tutorial services business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).
Our goal is to grow our private tutorial services business to become one of the top 10 private tutorial business in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Los Angeles – California but also in other cities in the United States of America.
Brainers® Private Tutors Services is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our private tutorial services by sending introductory letters alongside our brochure to schools, parents / household and key stakeholders in Los Angeles – California
- Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
- Creating a website, allows parents to be able to look you up, and also allows you to post general study tips, giving you an added advantage.
- Use friends and family to spread word about your private tutorial business
- Introduce yourself to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
- Call up schools – either private or public – and intimate them of our services
- Post information about your private tutorial services on bulletin boards in places like schools, libraries, and local coffee shops.
- Placing a small or classified advertisement in the newspaper, or local publication about our private tutorial services
- Using tutorial referral networks such as agencies that will help match students with our private tutorial services.
- Joining relevant association or body that will enable us network and meet others in same industry.
- Advertising online by using an advertising platform such as Google Adwords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
- Advertise our private tutorial business in relevant educational magazines, newspapers, TV stations, and radio station.
- Attend relevant educational expos, seminars, and business fairs et al
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients (students)
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both parents and students in the whole of Los Angeles – California which is why we have made provisions for effective publicity and advertisement of our private tutorial services. Below are the platforms we intend to leverage on to promote and advertise Brainers® Private Tutors Services;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Los Angeles – California
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact schools by calling them up and informing them of your private tutorial services, and the advantage our private tutors has over the others.
- Passing general information via the private tutorial school’s social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our tutors wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.
Generally, for tutorial services (home tutors and tutorials for the physically challenged inclusive), flat fees on a weekly or monthly basis is what is obtainable. As a result of this, Brainers® Private Tutors Services will charge our students flat fees except for few occasions where there will be need for us to charge special students on hourly basis.
At Brainers® Private Tutors Services we will keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.
We are aware that there are some students that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such students’ needs.
- Payment Options
The payment policy adopted by Brainers® Private Tutors Services is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Brainers® Private Tutors Services will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.
13. Startup Expenditure (Budget)
In setting up a private tutorial school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The capital for a home-based tutor might fall between $500 and $2,000, while that of a medium and large scale would definitely be higher.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a private tutorial school business; it might differ in other countries due to the value of their money. However, this is what it would cost us in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring an office space or warehouse that will accommodate the number of teaching and non – teaching staff (Re – Construction of the facility inclusive) will cost – $35,000.
- Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- Launching an official Website will cost – $500
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
While a home tutor might not have to incur all these expenses but going by the above report, we will need an average of fifty thousand dollars – $50,000 to start a small – scale private tutorial school business in the United States of America.
Generating Funds / Startup Brainers® Private Tutors Services
Brainers® Private Tutors Services is a partnership business that is owned and managed by Tommy Dyer, Zoe Johnson and Julius Fox. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $10,000 (Personal savings $8,000 and soft loan from family members $2,000) and we are at the final stages of obtaining a loan facility of $40,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Brainers® Private Tutors Services is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our home tutor services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Brainers® Private Tutors Services will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Securing a small office facility (Renovation of the facility inclusive): In Progress
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Private Tutorial Schools’ Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Private Tutorial School: In Progress
- Creating Awareness for the private tutorial school in Los Angeles – California: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the education industry: In Progress
Online Tutoring Business Plan
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- Financial Model
- Value Proposition
- One-Page Business Plan
- SWOT Analysis
- Business Model
Products & services, market analysis, marketing plan.
- Management Plan
- Financial Plan
The lack of flexible and customized learning experiences has been a persistent problem in the online tutoring industry. Many tutoring services offer fixed programs that do not cater to the specific needs of students, leading to dissatisfaction and suboptimal results. Furthermore, the high cost of online tutoring services has made it difficult for middle and low-income families to access quality tutoring services for their children. TutorLink aims to solve these problems by offering affordable and flexible tutoring services that meet the unique needs of each student. Our value proposition leverages technology to provide a seamless and personalized service, with independent contractor tutors who specialize in a wide range of subjects and offer sessions at set rates. Through TutorLink, students and parents gain access to the best learning experience, tailored to their specific needs, and at a reasonable price point.
The proposed online tutoring business, TutorLink, aims to provide a solution to the growing demand for flexible and personalized learning experiences by offering online tutoring services for students ranging from elementary to college-level subjects. Our platform facilitates direct and personalized relationships between students/parents and independent contractor tutors who specialize in specific subjects. With TutorLink, clients can work with a range of tutors for different subjects, and pay a set rate per session, allowing for a customized and affordable learning experience.
Our comprehensive platform will be easily accessible through our website and mobile application, offering students and parents the freedom to learn anytime, anywhere. We intend to leverage advanced technology to facilitate tutor matching and scheduling, ensuring a seamless user experience. Furthermore, we aim to provide the best value for money to our clients, ensuring that they receive high-quality tutoring services at a fair rate.
Overall, TutorLink is committed to providing a superior online tutoring experience by offering flexible, affordable, and customized learning experiences that meet the specific needs of our clients.
The target market for TutorLink is students and parents seeking online tutoring services across various subjects. The market includes elementary, middle, high school, and college-level students. We understand that the education system in the US is highly competitive, and students require personalized attention to excel in their studies. Our services are designed to cater to this demand by providing flexible and customized learning experiences that meet the unique needs of each student. Additionally, our value proposition offers affordable rates, making our services accessible to a wide range of students and parents across different economic backgrounds.
Our financial plan is aimed at ensuring sustainable growth for TutorLink. Here are the key highlights of our financial plan:
- Intend to raise $5 million from investors by 2023 for platform development, tutor recruitment, marketing and advertising, and operational costs
- Aim to break even by the end of the second year of operations and become profitable by the end of the fourth year
- Projected revenue of $1.5 million in the first year, increasing to $10 million in the fifth year
- Projected expenses of $1.2 million, including platform development, marketing and advertising, operational costs and tutor fees in the first year
- Gross profit margin of 25% in the first year, increasing to 50% in the fifth year
- Projected net profit of $300,000 in the first year, increasing to $2.5 million in the fifth year
We will constantly monitor our financials and make necessary adjustments to ensure we remain on track towards achieving our financial goals.
Below is a brief outline of the amount of money needed to start TutorLink:
- $5 million to be raised from investors by 2023
- Funds to be allocated towards platform development, recruitment of high-quality tutors, marketing and advertising, and operational costs
- Aim to break even by the end of the second year of operation and become profitable by the end of the fourth year
This funding will be crucial for the successful launch and growth of TutorLink. With the funds, we can ensure that we have a top-of-the-line online platform, a wide range of highly qualified tutors, and effective marketing campaigns to attract clients. Our financial goals will be achieved through careful budgeting, cost management, and revenue optimization. We are confident that our innovative business model and exceptional service will provide significant returns to investors.
Milestones and Traction
At TutorLink, we have a clear roadmap towards achieving our primary business goal of becoming the leading online tutoring service provider in the US by 2026. Our milestones include:
Our team is highly motivated and dedicated towards achieving these milestones, and we believe that we have the right strategy, resources, and partners in place to make TutorLink the go-to online tutoring platform for students and parents across the US.
Problem Worth Solving
The education system in the United States faces many challenges, and one of the most pressing is the struggle for students to receive personalized and flexible learning experiences. Traditional classroom settings may not provide the necessary support for students who require additional assistance or seek to enhance their skills beyond the standard curriculum. For parents, finding suitable tutors for their children can be a daunting task that often comes with high costs and limited availability. The COVID-19 pandemic further exacerbated these issues, highlighting the need for remote learning solutions that can be adapted to students' evolving needs.
As a result, there is a significant demand for online tutoring services that offer customized solutions at affordable rates. TutorLink aims to solve this problem by providing students and parents with access to a wide range of independent contractor tutors who specialize in various subjects. Our pay-per-session model allows for flexible and convenient learning experiences without the commitment of long-term contracts or membership fees. By addressing this pain point, TutorLink can revolutionize the online tutoring space and provide our clients with exceptional value and service.
Validation of problem and solution, product overview.
TutorLink is an online tutoring business that offers flexible and personalized learning experiences to students and parents across all academic levels. Our core product is online tutoring services provided by independent contractor tutors who are subject matter experts in their respective fields. Our platform enables clients to access our tutors anytime from anywhere, either through our website or mobile application.
We take pride in our range of subjects, which includes mathematics, science, English, social studies, and foreign languages. Our tutors cater to the specific needs of each client, addressing their learning gaps one-on-one, and customizing lesson plans to suit their individual preferences and pace of learning.
At TutorLink, we aim to provide exceptional customer service by closely monitoring each tutoring session's progress and quality to ensure our clients receive value for money. Our flexible Pay-per-Session model allows clients to decide the length and duration of each session with set rates. We do not require any long-term commitment from our clients, ensuring they only pay for the tutoring services they require.
Our product benefits students and parents seeking affordable, flexible, and personalized tutoring services, tailored to their specific needs. With our range of independent contractor tutors and an intuitive online platform, we are confident that our clients will receive a unique learning experience that makes a positive impact on their academic achievements.
Roadmap of Products & Services
As a newly established online tutoring business, TutorLink aims to provide the best value for money to our clients while ensuring they obtain high-quality tutoring services. Our roadmap consists of the following steps taken so far and outlines of steps we plan to take to grow our business:
Market segmentation helps identify potential groups of customers who share specific characteristics. The following table outlines the different segments for our online tutoring business:
Target market segment strategy
Our ideal customer is a student or parent seeking online tutoring services across various subjects. We aim to cater to individuals who value customization and flexibility in their learning experiences. Our services will be particularly useful for those who struggle to find time for traditional in-person tutoring or who require specialized support in a particular subject. We will also target customers who are looking for affordable and accessible tutoring options. By offering a pay-per-session model with set rates, we hope to provide a cost-effective solution for students and parents seeking quality tutoring services.
Our ideal customer archetype for our online tutoring business is a busy parent seeking high-quality, customized tutors to supplement their child's education. They value convenience, flexibility, and personalized learning experiences for their child. These parents will be the main advocates for our business, as they will be satisfied with the exceptional results and recommend us to other parents and students seeking online tutoring services.
Based on the market analysis, the potential market for online tutoring services is significant. As the demand for flexible and customized learning experiences continues to grow, online tutoring platforms have the potential to reach a wide range of students across various subjects. Our pay-per-session model, paired with our personalized matching and scheduling services, sets us apart in the online tutoring market and positions us for success in future markets.
Here is a list of potential competitors in the online tutoring market:
Each of these platforms has its own unique features and strengths in the online tutoring market, but our business will differentiate itself through our focus on flexibility and customized learning experiences with independent contractor tutors.
Marketing and Sales Plan
Our marketing and advertising strategy will focus on reaching potential customers through online channels such as social media ads, search engine optimization (SEO), and email marketing campaigns. We will also partner with schools and educational organizations to reach their student and parent networks. Our goal is to increase brand awareness and attract new customers while also retaining current ones through exceptional service. Our advertising budget will be allocated towards targeted campaigns based on subject and geographic location, and we will track our return on investment through analytics tools and customer feedback.
Based on our market research and capacity, we anticipate a gradual increase in sales for TutorLink. In the first year, we expect to have 500 students signed up for our services, which will generate approximately $150,000 in revenue. As we grow and establish our brand, we anticipate a 20% increase in the number of customers each year. Our pricing strategy is competitive and fair to both students and tutors, with a pay-per-session model that ranges from $25 to $50 per hour, depending on the subject and tutor’s experience.
We will also implement a referral program, where current customers can receive discounts for referring new customers to our platform. Additionally, we plan to offer discounts and promotions during the back-to-school season and holidays to attract new customers and retain our existing ones.
To increase our sales, we will prioritize marketing initiatives such as social media advertising, search engine optimization, and partnerships with local schools and universities. We will also leverage our existing customer base to gain positive reviews and word-of-mouth referrals, further increasing our reach and sales opportunities. By the end of our fourth year of operation, we anticipate generating $1.5 million in revenue, with continued growth prospects in the US online tutoring market.
Location and Facilities
As an online tutoring business, TutorLink does not require a physical business location. However, we will have a headquarters in New York City where our team will manage operations, marketing, and customer service. The costs of operation for this space will be minimal, as we will only require a small office space and equipment for our team.
Our tutors will work remotely, meaning they can operate from anywhere as long as they have a reliable internet connection and professional environment to work in. This allows us to recruit tutors from diverse locations, ensuring we have access to a wider pool of specialized talent.
In regards to marketing, we will primarily focus on digital marketing strategies, including social media advertising, search engine optimization, and content marketing. We will also attend educational conferences and events to network with potential customers and partners.
At TutorLink, we understand that technology is fundamental to the success of our business. Our online tutoring platform will leverage advanced technology to provide a seamless and user-friendly experience for both students and tutors. Our website and mobile application will be designed with an intuitive user interface that makes it easy to navigate and use.
In addition, we will incorporate innovative technologies such as virtual whiteboards, real-time chat functionalities, and video conferencing for an authentic classroom experience. Our platform will be cloud-based, allowing our clients to access their tutoring sessions from anywhere in the world with an internet connection.
Furthermore, our platform will incorporate advanced analytics tools to help us track user activity, measure tutor effectiveness and improve our services. We will also use data analytics to identify emerging trends in the online tutoring industry and tailor our services to meet the evolving needs of our clients.
We aim to stay ahead of the curve by investing in emerging technologies such as artificial intelligence, machine learning, and natural language processing, which we believe will be the future of online education. By continually evolving our technology stack, we will be able to provide a cutting-edge online tutoring platform, which is both efficient and effective in terms of delivering personalized learning experiences.
Equipment and Tools
As an online tutoring business, our primary equipment and tools include:
Our tutors will be responsible for providing their own equipment and tools, such as textbooks and additional software, that are specific to their specialized subject area. We will also offer training on our online platform to ensure they are comfortable with our system and tools.
Management and Organization
Our online tutoring business operates with a lean organizational structure, with a focus on efficiency and flexibility. The team consists of:
Communication and information flow between team members is encouraged, with regular check-ins and updates to ensure everyone is aligned and working efficiently towards our company goals.
As the business grows, we anticipate bringing on a strong management team to oversee day-to-day operations and guide strategic decision-making. The table below outlines potential candidates for high-level management roles within our company:
We will prioritize candidates with experience in edtech and online learning, as well as those who share our passion for providing quality education and personalized learning experiences to students. Our management team will work closely with our tutors and students/parents to ensure the success of our business and the academic growth of our students.
Management Team Gaps
At the moment, we do not have any candidates to fill the position of a Chief Technology Officer who will oversee the development and maintenance of our online tutoring platform. We are actively searching for an experienced individual who can help us keep our technology current and user-friendly. Additionally, we do not have anyone with an extensive marketing background, which is crucial for reaching our target customers and expanding our reach. We plan to address these gaps by seeking out qualified individuals to join our team or outsourcing these functions to specialized agencies.
Running an online tutoring business will require a team of dedicated professionals. Here is a potential list of positions that we expect to require:
Company history and ownership
TutorLink is a newly established online tutoring business under the ownership of a group of seasoned entrepreneurs in the education industry. The founding partners have a combined experience of twenty years in the education sector, having started and run several successful offline tutoring businesses. TutorLink was born out of the partners' desire to provide a more flexible and personalized learning experience to students and parents through the use of advanced technology.
The partners have a proven track record of building and managing successful businesses, and their expertise in the education industry gives them a competitive advantage in the online tutoring space. The ownership structure of TutorLink is split among the partners, with each partner having an equal stake in the company.
Planning and launching TutorLink has been a strategic move by the owners, who aim to leverage their experience in the education industry to establish TutorLink as the leading online tutoring service provider in the US. The partners have invested considerable resources in developing a robust business plan and securing funding to ensure the success of TutorLink.
As part of our management and organization plan, we have outlined specific goals and objectives that we aim to achieve to ensure the success of TutorLink. The table below details our roadmap of milestones:
In order to gauge the overall performance and health of the online tutoring business, some key performance indicators (KPIs) that can be tracked include:
- Number of active tutors and students
- Revenue generated per tutoring session
- Customer satisfaction and retention rates
- ROI on marketing and advertising expenses
- Platform uptime and user engagement rates
Tracking these KPIs can provide important insights into the effectiveness of the business model and help identify areas for improvement or growth.
Financial Plan and Metrics
Projected sales for the three years (2023, 2024, 2025) are shown in the table below:
These sales projections are based on our targeted market, competitive pricing, and planned marketing strategies. We anticipate a steady growth in sales year over year as our customer base grows and we expand our services to reach a wider audience.
Starting and operating an online tutoring business requires certain costs that need to be accounted for. Below are tables showing the expected startup costs and ongoing operational expenses of the business.
Note: The operational expenses may vary depending on the number of tutoring sessions per month and rates charged by the tutors.
Projected Profit and Loss
Our revenue will primarily come from the pay-per-session rates charged to students or their parents for online tutoring services. We estimate that our revenue will be $1.5 million in our first year of operation (2023), $5.5 million in the second year (2024), and $10 million in the third year (2025).
We expect to break even by the end of the second year of operation (2024) and become profitable by the end of the fourth year (2026). Our expenses will include platform development and maintenance, marketing and advertising, payment processing fees, and tutor fees. We will closely monitor our expenses to ensure that they are in line with our projected revenue and profit margins.
Projected Cash Flow
Below is a projected cash flow statement for three years (2023, 2024, 2025) for our online tutoring business:
We expect to raise a total of $5 million from investors by 2023, which will be primarily used for platform development, recruitment of high-quality tutors, marketing and advertising, and operational costs. By the end of the second year of operation, we aim to break even, and by the end of the fourth year, we strive to become profitable.
Projected Balance Sheet
Here is a table showing the projected balance sheet statement for the next three years (2023, 2024, and 2025).
As shown in the table, we expect to steadily increase our assets and equity while keeping our liabilities in check over the next three years. We will continue to carefully manage our finances to ensure the success and growth of the business.
As an online tutoring business, our primary need for personnel will be independent contractor tutors with expertise in various subjects. We intend to hire tutors through our online platform and provide them with the flexibility to set their own rates and schedules. Compensation for tutors will be based on the number of tutoring sessions they conduct, with a percentage deducted for platform maintenance and payment processing fees.
Aside from tutors, our business will require a small team to manage platform development and maintenance, tutor matching and scheduling, and marketing and advertising efforts. We intend to keep our team lean and agile, with a focus on efficiency and effectiveness. Compensation for team members will be competitive and performance-based, with opportunities for growth and advancement within the company.
In terms of fitting employees into business operations, our company culture will prioritize collaboration and communication. Tutors will have direct and personalized relationships with their students or parents, and our team will work closely with both to ensure a seamless experience. Our team will also prioritize ongoing education and development for our tutors, in line with our commitment to providing outstanding tutoring services.
Use of Funds
Below is an overview of our plan for utilizing the $5 million investment from investors:
The bulk of the investment will be going towards platform development, ensuring that our online tutoring platform is state-of-the-art, user-friendly, and secure. A significant portion of the funds will also be spent on the recruitment of high-quality tutors, ensuring that we are able to offer the most comprehensive and diverse range of subjects to our clients. Finally, marketing and advertising expenses will ensure that we are able to reach a wider audience and grow our client base, while operational costs will ensure our business operations run smoothly.
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