The Complete Guide | 15 MIN READ

7 crucial steps to consider before starting a private tutoring business

“In learning, you will teach, and in teaching, you will learn." - Phil Collins


Are you between jobs and looking for a challenge? Do you have a passion for teaching but do not have a proper educational qualification to become a professional teacher in institutions? Or do you have the zest and zeal to explain and teach others about your subject of interest but do not know the direction of letting your drive go? You are in the right place to explore. Let’s take a deep dive into the world of private tutoring and making your passion generate income for you.

According to ReseachAndMarkets, the global market for Private Tutoring is estimated at $123.8 Billion in 2020. It is projected to reach a revised size of $201.8 Billion by 2026, growing at a CAGR(Compound Annual Growth Rate) of 8.4%. According to Glassdoor, a private tutor can expect to earn $14,000 - $42,000/year, depending on rates and how much you work. So if you have the passion and the drive for teaching and helping, with the help of this guide, move an inch or at least a step forward in starting your private tutoring business.

Step-1: Deciding if Tutoring as a Biz is Right for You?

Before starting and managing a private tutoring business, you need to decide if it is the best option. If your only aim is to teach, many private tutoring institutions are ready to hire passionate teachers. It is crucial to question yourself if you want to be a business person or just a teacher. This step is vital as there is no going back or regretting once you started investing your time, effort, and money in it. It is also equally time-consuming to gain a reputation as a private tutor and takes a lot of patience and will to establish the business. If you have the entrepreneurial spirit to raise this skill as a business, have enough client referrals, and are good at convincing and communication, there is definitely an ample opportunity door ready to pass through for your success.

Step-2: Create a Business Plan for your Private Tutoring Business

“Do the business in the right way”- it is essential for you to analyze and examine the market you are planning to invest in properly. Starting your private tutoring business blindly and right away without knowing about your long-term goals doesn’t take you anywhere. The most crucial step to investigate is the formulation of your business plan. Try to answer some of the fundamental questions about your business- (in this case- private tutoring) like,

  • Who is your target audience

  • What resources are you going to need

  • How could you monetize it effectively

  • How you could reach a wide range of audience

  • Could you do it full-time or part-time

  • Should you consider doing it online or offline or opt for hybrid teaching

  • Could you fulfill all the requirements and fit them into your day-to-day life

Creating a business plan should be your first stepping stone in starting a business, so make it real by setting achievable goals.

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7 crucial steps to consider before starting a private tutoring business

Step-3: Deciding your Area of Expertise

Your target audience greatly depends on your area of expertise/the area you choose to teach. If your area of choice is language like English, French, Spanish, etc., there are more chances of people from varied age groups joining. Emphasize the benefits of learning a language from you: If an employee wants to learn a language, explain its importance in a professional workspace. If parents want their children to learn a language from you, explain the importance of knowing a second language. Or, if your area of choice is academic subjects, let them know about your background on that subject. Whichever domain you choose to tutor, convince your audience that you are the best and deliver the best.

Never forget that your area of expertise is the money-maker of your business, so choose it wisely. FingerFact: don’t narrow your subject of choice to specific/limited people.

Step-4: Market and Competitive Research

As important as it is to choose your area of interest and target audience, having a complete market study is also crucial in the long-term sustenance of your tutoring business. Analyzing your competitor’s business helps you pitch solutions for the possible problems, even before starting your private tutoring business.

Some of the possible problems you should consider before starting are:

  • Your schedule needs to be optimized for accommodating your clients - if your target audience is school students, they would be busy during the daytime, and if it is college students, their time is even more limited. If they are working people, they would be only free during the weekends. So your schedule must be on par with your customers. With ZealSchedule, you need not worry about scheduling your bookings. The automatic scheduling software makes booking only when both you and your student are free.

  • Appeasing the parents- as a tutor, you need to give your best in educating your student and make their parents happy.

  • Multiple people tutoring the same subject - if various people in your business area are offering the same service like yours, your customer intake is widely cut out.

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Step-5: choosing a business model and creating a brand

There are a few business models you can choose from for starting a tutoring business. If the standard frameworks aren’t the best for you, you can always customize the models according to your needs. But keep in mind to stick to it throughout.

Running home-based tutoring: In the initial stages of your start-up, when your budgets are low, you could opt-in to home-based tutoring, where you would allocate a small area of your home to run your business. If it is offline, make sure you provide an educational and peaceful environment for your clients. In some states, there are some rules and regulations regarding tax deductibility. Ensure to read them so that you don't pay excess tax or pay fines.

Being a traveling tutor:  If you don’t feel confident in putting out your address, you could travel to your client’s home and teach them. This would also increase the attraction towards your business as you try to provide quality education at their comfort.

As a franchise: you could also open a franchise of an already reputed tutoring institution if you do not want to start and establish from scratch.

There might be advantages and disadvantages in all the above frameworks. Choose the one that you think is the best while knowing entirely about it.

After choosing your biz model, ensure to select an attractive name and is available in your state. Do a quick research to check the name’s availability.

Step-6: Registering your biz and legal procedures

There are many different ways to register your business. If you are wondering how to start tutoring biz, you are probably operating as a sole proprietor. According to Wikipedia,

“Sole proprietorship is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity.”

When time passes, you might want to expand your business into an LLC. With an LLC, you would have limited liability and the choice of choosing your taxing model. As an LLC, you would also have the added benefit of showcasing your service professionally.

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7 crucial steps to consider before starting a private tutoring business

Step7: Creating a Plan to Bring in Clients

Once you start your business, it is crucial to market yourself and get your target audience’s attention. You will need to get the word out in the market about your tutoring business. Your marketing plan should be effective and cost-efficient. Prepare a catchy and attractive pitch to communicate with your customers. Bring on opening discounts, share your digital marketing profile with all, and efficiently manage your social media platforms. And lastly, never doubt the power of word-of-mouth marketing. Choose a customer-based system rather than a competitor-based one; this would help in attracting a lot more customers.

The scope of private tutoring:

It is evident that private tutoring as a business is developing worldwide. The backbone reason for the increasing number of private tutors is that,

  • The popularity of supplementary education is rising in both developed as well as developing countries.

  • In most countries, competitive entrance examinations are critical for gaining admission into top universities and colleges.

  • Another important factor driving the private tutoring industry is the growing student population in schools and colleges and the lack of adequate funding and teaching staff, which compels students to seek additional knowledge and competence through private tuitions.

So with the passion of teaching in your heart, knowledge about your subject in the brain, with this guide in your hand, and ZealSchedule for your support, start your business and make your dream come true and generate revenue.

We wish you all the very best in your business endeavors!