How To Start A Tutoring Business With Limited Overhead Costs


While writing many of these posts, we feel like business tutors ourselves. After all, we are simply helping other people understand how to start, grow and profit from business. Naturally, we write about topics like starting a tutoring business because it is a great industry to be in. With so many private tutoring academies, home tutor instructors and tutoring centers available everywhere, who says you cannot be a successful tutoring entrepreneur yourself? This is especially true if you decide to tutor people with disabilities. Keep reading below to find out how to make this possible.

It May Seem Simple

Starting a tutoring business might seem simple at first glance. So simply, you find students or people who need special attention in the subject that you have expertise in. Then, you can provide them tutoring and they will pay you for your services.

Unfortunately, It Is Not

Unfortunately, starting a tutoring company does not work like that. For any start up to be successful, it must have a well developed business plan. The plan should include everything including attracting customers, carrying out operations and maintaining your finances. Without a proper plan, your tutoring business will be at a much higher risk of failure.

How To Start A Tutoring Business

So, let us get an A+ tutoring business started. In your business plan, specify all the roles and responsibilities in the company. Who will network or bring in new customers? Who will do the tutoring? What geographic location will you market to? What subjects will you offer? Where will tutoring be held? How much will you charge? These are pertinent questions you need to think about when starting a private tutoring business. Many of your answers should be compared with the competition in your area along with online tutoring services and websites.

Keep Overhead Low

It is important to keep your initial overhead business costs very low. By being cost conscious, you will not invest too much money and run out of cash flow when it is the time to grow, hiring more tutors or staff to support the business. Additionally, low cost options like starting the business from home can give you flexibility to learn more about the business before scaling.

For example, if you start the business from home and realize your customers prefer you to come to their homes, then you have already saved yourself a lot of money in rent. And, you could have avoided signing a lease for commercial office space which would have been necessary. In any new business, it is better to be frugal and cautious in your decision making.

Research Rates

You want to know what other tutors are charging in your area. Otherwise, you will have no idea how to price your services. You may wind up charging too much and not getting any clients. Or, you may wind up charging too little and not valuing your own time. Search local professional tutoring prices for both in-home tutors and in-center tutoring centers. Set your rates based on this information. This way, you can be sure you are staying competitive but still getting paid for your time appropriately.

Start In Your Neighborhood

Another helpful tip for opening a tutoring business is to start in your own neighborhood. Think of how many contestants have done it on those entrepreneur TV shows you watch. If you went to school in the area you live, try seeing if anyone you recognize is still working there. Then, use that connection to get you some clients. Or if you have a child yourself, mention your student tutoring business to the other parents in class. Include business cards in your kid’s birthday goodie bags that they hand out to the class. If you start a tutoring business in your own neighborhood, you can utilize your connections to easily source clients.

The Key To Success

The key to a successful tutoring start up is quality service. You do not need a business degree to figure that out. If you provide tutoring services that are truly effective and helpful to your customers, they will refer you to their networks. With outstanding service, the business will grow organically and you will be able to reinvest along the way to a full service corporate tutoring company.

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