tutoring business

Want Your Own Tutoring Business?

Online and in-person home tuition businesses are enjoying a golden age of growth and profitability. As more parents choose to homeschool their children, and the COVID pandemic pushes students into online learning situations, independent tutors are in high demand. What should you do to maximize your chances for success in this competitive, fast-growing business niche? For starters, you’ll need to decide on a specialty. Almost no one can offer coverage in every academic subject. For new entrants into the online tutoring business, an intelligent technique is to specialize in one or two subjects and one age group of students. Here are the steps you can take today to build a solid income from tutoring students.

Choose a Niche

For new entrants in the tutoring space, the most opportunities exist in elementary basic subjects, high school math and English, and science for all grades. As a college graduate, you can probably cover one or more of the core need areas. However, to maximize your profits, pick one subject and one age group on which to focus. This will let you target advertising dollars more precisely and bring new clients on board quickly. Make sure that your resume stands out within your niche and highlights your star power and expertise. 

Get Personal Finances in Order

For all owners of new businesses, it’s imperative to minimize personal expenses. That means being able to devote more of your own money to the company you’re starting. For tutors, typical costs include upgraded or new computer systems, additional monitors, enhanced audio hookups, high-speed internet connections, fees for certification testing, advertising, and more.

One of the simplest ways to cut your monthly expenses, and free up capital for business use, is to refinance existing student loans. By working with a private lender, you can take advantage of fast online applications, more favorable rates, and the chance to use a loan refinance calculator to find out precise payment amounts. In many ways, running a tutoring business is about keeping expenses as low as possible. Student loan refinancing is an excellent way to begin.

Contact Local Schools

Call schools in your area and speak with academic counselors. Let them know that you are a local college grad starting a new tutoring business and would appreciate any referrals. Consider making an offer of 10 percent off for the first lesson to entice signups.

Avoid Doing Agency Work

It’s tempting to work for a tutoring agency to get experience but be careful if you do. Many larger companies will have you sign a non-competition agreement that prevents you from soliciting local business for up to a year after working for them. Read all non-compete clauses carefully before taking jobs for agencies.

Study the Competition

Analyzing your competitors, both local and online ones, is about more than market research. It’s also a great way to set prices that draw in the most significant number of customers. Use the data you collect to set a high and a low fee range and adjust your prices based on any unique aspects of your business. If you guarantee passing scores on standardized tests, like the GMAT or SAT, consider adjusting fees toward the higher end of the scale. Or, if you do general elementary-level homework help for grades one through six, stick to the lower part of the range.

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Todd VanDuzer

Co-Founder & CEO at Student-Tutor
Hello! My name is Todd. I help students design the life of their dreams by ensuring college, scholarship, and career success! I am a former tutor for seven years, $85,000 scholarship recipient, Huffington Post contributor, lead SAT & ACT course developer, host of a career exploration podcast for teens, and have worked with thousands of students and parents to ensure a brighter future for the next generation. I invite you to join my next webinar to learn how to save thousands + set your teenager up for college, scholarship, and career success!
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