Thinking of Starting a Tutoring Business? Here’s What to Consider

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The demand for tutors has been rising, primarily because of the global COVID 19 pandemic. Meaning that if you’ve been thinking of starting a tutoring business, there is no better time than now.

Besides, the tutoring industry can only get better with parents exploring new ways of ensuring their little ones keep pace with their school work.

Moreover, the increased popularity of remote learning has made it easier for tutors to get more clients through online tutoring.

So, whether you’ve been thinking of offering maths tutoring in Melbourne or offering ESL classes to ESL learners in your country, it’s about time you started your tutoring business.

But before you go telling everyone about your tutoring business, here are a few things to consider if you want your business to succeed.

1. Choose Your Niche

What subjects are you going to teach?

Do you want to teach one or multiple subjects?

You’ll also need to decide the age of students or grade levels you’ll want to work with.

Think about your subject areas of interest or any experience you might have that can give you an advantage in a particular tutoring area. Your level of education can also help you determine the grade levels you’ll teach.

Having unique skills, such as being bilingual or having an ESL certification can give you an advantage when teaching some learners. Similarly, being proficient in sign language may mean you’re better placed to teach learners with hearing problems.

Deciding on your niche is essential as it sets you apart from the competition. It also enables you to narrow your market research to only those tutoring businesses related to your niche.

This brings us to our next step.

2. Research Your Competition

A competitor’s analysis helps you understand the needs of your target audience so that you can shape your business according to these needs. It also makes it easier for you to establish if the niche you’ve chosen is too crowded and if you need to think of specializing in another area.

Here are some tips that can help you get detailed insights about your competitors and target audience:

  • Join Facebook groups made up of your target audience to get to know their pain points
  • Research on the teaching techniques used by your competitors
  • Read the reviews on your competitor’s website or social media pages to establish if there is a gap that you can fill
  • Research on the subject areas that students are struggling with
  • Research your competitor’s marketing strategy

3. Uncover Your Tutoring Business Unique Selling Proposition (USP)

A business Unique Selling Proposition (USP) is what makes it different from the other businesses in the market.

A USP sets your business apart enabling you to attract customers. Your tutoring business USP should be hard for your competitors to replicate. For instance, instead of just offering online tutoring, you can also add in-home personalized tutoring services. 

To come up with a compelling USP, understand your target customers’ pain points and try to come up with solutions to these problems.

4. Figure Out Your Finances

Before you open the doors of your business, figure out how much you’ll need in terms of finances. A financial plan will help you have your finances in order before you open the business, and also enable you to prepare a pricing plan.

Have an estimate of the actual costs and expenses of starting the business. Don’t forget to include recurring expenses such as salaries, office space rent, power bills, and marketing costs, among others.

If you don’t have enough capital, establish where you’ll get additional capital. For instance, you can borrow from family and friends or get a business loan.

5. Prepare a Pricing Plan

Pricing can make or break your business.

Setting your price too high will make you miss clients, while a price that is too low may see you close your business due to losses. Do some market research and find out how much your competitors are charging. You can use this price as the benchmark when coming up with your prices.

Once you’re well established and have earned the trust of students and parents, you can set a higher price for your services.

6. Choose a Name for Your Business

You’ll want to select a fun and easy to remember name for your business. Make sure your business name also clearly states your niche and the services you offer.

Also, do some research on the names already taken by other businesses, so you don’t choose a similar name as your competitor. A quick search with the Secretary of State can give you an insight into names that are yet to be taken.

If you’re having trouble selecting a name, you can always go online and research possible brand names. You can also ask your family or friends to suggest unique names that are suitable for your business.

7. Draw a Marketing Plan

Getting students can be tricky if you don’t plan how to market your business from the start.

Spread the word to your friends and family members that you want to start a tutoring business, and encourage them to refer new clients. You can also give early-bird discounts or discount programs to attract clients. Other ways of marketing your business include:

  • Provide excellent tutoring services to get referrals from your past and current students
  • Give free demo classes to gain the trust of new clients
  • Advertise your business in schools or join their tutor referral programs
  • Join online tutoring groups and advertise your business
  • Get listed on online directories to increase your business visibility
  • Put up posters on schools notice boards

8. Make Your Business Legal

Now that you’ve everything you need for your business, it’s time to put your business idea to paper. Register your business and get all the permits and licenses you need to operate it. Also, file your business name to prevent other businesses from using it.

Once you’re done, it’s all systems go, as now you can open your doors and accept new clients.

In closing, you must plan and prepare well before you start your tutoring business. Following the above tips will help your business get off on the right food and continue to succeed in the long run.

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