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How to Start a Tutoring Business From Home

One of the businesses that is easy to set up is a tutoring business. You can do it on a part-time basis and you can start from home. The initial cost of setting up this business is also very minimal. What's nice about it is you can start small, and expand your operation over time if you want to.

You might think that because tutoring is a relatively simple business, you don't need to plan. However, if you want to be sure of success, take some time to do a little research and write down your plans on paper.

Let's see in this blog post what are the action steps you need to consider when starting a tutoring business:

1. Decide which subjects you would offer for tutoring.

How do you choose the subjects you would be teaching? Here are some questions to ask yourself:

Is there enough demand? You may be a very good artist, but it's not a good subject to teach if there's no demand for art tutors. It’s important to find subjects that are in demand. A lot of students seem needful of tutoring in Math and English.

Do you have the required expertise? Consider if you have the required knowledge of the subject. If you're struggling with basic math, then it's unlikely that you would offer tutorial services for Algebra or Calculus.

2.  Choose the age group of students you want to tutor.

Consider which age groups match your experience, knowledge, and personality. Would you teach grade school or high school kids? Each has its own unique challenge.

3.  Consider the geographical area you're willing to serve.

For starters, you might want to provide tutoring services in your home or somewhere near your house. But if you decide you want your business to be more lucrative, you might need to go to other parts of town.

If your intention is to find a place out of your home where you can meet students, i.e. the public library, consider the distance that a student would be willing to travel. Students or their parents may only be willing to travel thirty minutes at most.

If you’re willing to go to your students' place, then how far are you willing to travel? Consider the time and cost of transportation, which have an impact on the fees you charge.

4.  Define your pricing structure.

Pricing is very important. It sends a message about the quality and value of the services you offer, and it can significantly impact the amount of money you’ll be able to earn.

Tutoring rates depend on several factors like the subject, student, geographic location and tutor's level of expertise. Some tutors charge only $10 per hour, while others in larger cities charge $200 per hour.

Before deciding on a competitive tutoring rate, look at the prices that comparable tutors charge. Go online to find this information or call providers and inquire about their prices. Once you know, decide on your pricing structure.

If you charge a low rate, you’ll probably have plenty of students. But you'll probably earn less in the long run. With a low price, some parents may also think that your services are of lower quality.

Pricing that is too high may mean having only a few students. That is fine if you can show that your services are worth a premium price. You might have to show a track record of success first.

In most cases, the best rate would be close to the average tutoring fee being charged in the market. At this price-point, students (and their parents) are likely somewhat insensitive to price. After proving your quality of service, then you can raise your rates.

5.  Market and promote your business.

Marketing plays a very important role in achieving your initial success with your tutoring business. In the beginning, people don't know who you are. You can overcome that obstacle through advertising.

Watch the video below to get helpful ideas on marketing a tutoring business. Or you can continue reading about ideas on how you can market your tutoring services below.

  • Students or parents looking for a tutor might go to the teacher or guidance counselor for a recommendation. So, contact the schools in your area to let them know about your tutoring services. 
  • A simple way to reach potential customers is to hand out a handwritten note with a simple flyer or brochure about your services.
  • Go to other places students and their parents frequent like the local library, community center, sporting venues, or even the local grocery store. Post flyers in those locations with your contact information.
  • Tell everyone you know about your tutoring business. Tell your family and friends. Word-of-mouth marketing still works. 
  • Post on Facebook or on other social media sites to let the world know about the tutoring services you're offering.
  • Another way to advertise your tutorial services online is to create a website. Choose a domain name that closely matches the term someone would likely search for. For instance, get if you lived in that area.
  • Post ads on Craigslist as many people turn to Craigslist. List your website and services on online directories as well.

6.  Get organized.

You’ll want to keep all your relevant records and paperwork organized. This includes your session notes, progress reports.

Choose a billing system and be consistent with it. It’s up to you if you allow the student to pay before or after the session. But it’s good to pick one and be consistent. You might also like to consider an upfront payment for 5 to 10 sessions to avoid the hassle of collecting payments.

Keep track of your revenue and expenses for payment of taxes. Stay up to date so you won't need to recreate the past from memory. Keep all your receipts include any gas expenses, your mileage, and any material purchases.

7.  Improve your tutoring business

Aside from making sure you're offering a good quality tutoring service, you could further make your business better and more profitable by addressing challenges along the way. Whether you're faced with scheduling challenges, difficult parents, or students, find solutions to work things out.

A tutoring business is one very good way to supplement your income. If you could get enough clients, you might turn your part-time tutoring business into a full-time gig!

There are many people desperately seeking tutoring services. Many are struggling with the challenges in high school or college, which if successfully mastered can have a profound impact on their future success in life. Helping others successfully get through school can make you incredibly valuable.

If you're one of the few people who would like the opportunity to influence someone’s life, then be a teacher or tutor. You can have a profitable business while helping others at the same time.


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