How to start a tutoring business: a step-by-step guide

Starting a tutoring business may seem as simple as spreading the word, but there's a lot more to it than that. In addition to building a customer base (which is an art in itself), there are also things like stocking up on essentials, researching tutoring rates, and legal and insurance issues to consider.

“There are a lot of boxes to check when starting a tutoring business,” says Lindsay Wonder, founder of WorldWise Tutoring and the nonprofit Educate. radiate. enhance “There are legal fees for things like registration and reviewing documents, building a website and managing social media, scheduling lessons and gathering feedback.”

Want to know how to start your own tutoring business? Follow these step-by-step tips from experts.

Steps to start a tutoring business

Here's a step-by-step guide on how to start your own tutoring business.

1. Decide on your area of ​​expertise.

While it is possible to cover multiple subjects and age groups in your tutoring business, people generally want to hire a master of all trades rather than a jack of all trades. If your only employee is, that is, you, the only one who thinks about the subject area, you are best suited for a tutor.

Are you good at preparing for SAT/ACT tests? Or do you have experience in elementary school? According to Wonder, you usually don't need to be that niche in terms of subject matter.

“Many parents of elementary school students are looking for teaching qualifications,” Wonder points out. “In high school and college, adult students seek expertise in the subject matter.” In other words, the more advanced the subject matter, the more mastery it requires.

Although it is not necessary to have a specific degree or certification to become a tutor, it is highly recommended. “If you have a college degree, you have a much better chance of success when starting a tutoring business, especially in a highly technical field,” says Greg Freeberry, owner of Think & Evolve Tutoring. says. “Or if you have previous experience successfully teaching students.”

“If parents are spending a lot of money on tutors, they want to know that their kids are in the hands of someone who knows what they're doing,” Freeberry continues. “So if you can prove in any way that you are highly skilled at teaching a subject or age group, use that to your advantage.”

On that note, consider getting certified by the National Association of Home Teachers. Although not required, it provides some legitimacy.

2. Plan your business model

What do you want your tutoring business to look like? Do you want to meet students in person or offer online sessions? both? Are you interested in tutoring children one-on-one or are you open to group sessions?

Think about what you want your tutoring sessions to look like and start from there. (Of course, this model may evolve over time.) Freeberry and Wonder say this is important because if you choose the online route, you will need specific software and programs. Because it's possible. This also applies to face-to-face sessions and materials.

Additionally, some tutors charge more for in-person instruction than for virtual sessions. Freeberry says they charge the same rates for both, but Wonder says she can charge about $10 less per hour for virtual sessions.

If you are interested in owning a tutoring center, another option is to purchase a tutoring franchise such as Kumon or Sylvan. However, be aware that this option is less flexible and has higher initial costs.

3. Dealing with legal issues

Talk to your tax advisor about what business structure is best for your company, such as LLC or sole proprietorship. You should also consult a small business attorney regarding local ordinances, liability issues, and other aspects of business ownership.

“Working with children can be dangerous,” Wonder says. “So, it's a good idea to heavily insure yourself and your business. Professional liability and comprehensive policies are definitely recommended.”

“General liability insurance is very helpful to have in place to protect against personal injury and property damage when you’re in someone else’s home,” Freeberry adds. “Professional liability insurance is a great way to protect yourself from being sued by someone for neglecting your duties. That being said, I have been a private tutor for six years, and I have these insurance policies. I’ve never had to make a claim, but it’s good to have insurance just in case.”

Another thing to keep in mind, Freeberry said, is to ensure that lessons always take place with a parent or guardian present. “Never conduct a lesson with a student when they are home alone or in a room with a closed door and no windows,” he says. “Children must be visible to parents and other guardians at all times in the home while lessons are being given.”

4. Plan your budget

In addition to legal and insurance start-up costs, such as registering an LLC and general liability insurance, there may be various additional charges depending on how you operate your business.

Here's what you might need to budget for, according to Wonder and Freeberry:

• website design. The website has different levels and options, from one-time fees to monthly fees.
• supplies. “If you plan on having in-person instruction, you will need about $50 to purchase pencils, paper, dry erase boards, and dry erase markers,” Freeberry points out. “For test preparation tutoring, you will need to purchase study books for standardized tests such as the SAT, ACT, GRE, and ISEE.”
• Transportation costs. If you are commuting to meet students in person, you will need to factor in transportation costs.
• electronic writing pad. Freeberry said the tool makes teaching “so much easier” for everyone.
• Zoom subscription. “For $16 a month, we can easily offer online lessons,” Freeberry said. “Also, with a subscription, he doesn't have to worry about his Zoom room timing out and closing after 45 minutes during a 60-minute lesson.”
• Schedule management software. “Software that helps you schedule sessions, track balances, manage social media, and collect feedback and testimonials can help,” says Wonder. “And it will help you grow your tutoring business, too.”

Zero-cost tutoring business tools

If you're starting a tutoring business, there are several free options that can help you save money.

• Social media. Posting about your tutoring services on apps like Instagram can help boost your business and promote it to your followers.
• Tutor job profile. “To start getting paid as a tutor, you can create a profile for free on a website like Wyzant and start contacting potential clients right away,” Freeberry said.
• Google Calendar. Freeberry says there's no need for paid scheduling software. “I use Google Calendar and it works great, but if you want to use scheduling software, Calendly is a good option.”
• khan academy. “One of my favorite resources as a tutor is Khan Academy,” Freeberry says. “This site covers just about every topic imaginable and offers tons of instructional videos, articles, and practice questions. Best of all, it's all free! If I don't have any materials to review my lessons, I always turn to Khan Academy.”
• wave financial. Freebury also uses Wave Financial to track all business income and expenses.

5. Conduct market research

When starting your own tutoring business, whether it's a side hustle or a full-time job, research the going rate for tutors in your area. For reference, here are the average hourly tutoring rates for 15 U.S. cities, according to Care's recent long-term care cost calculator.

Average tutoring rate in several U.S. cities*

Look beyond location. When researching and comparing tutoring rates, also consider the instructor's experience, tutoring subjects, grade level, and other areas of expertise.

Freeberry said test prep tutors are generally the most expensive because they cost a lot of money. “It's not uncommon for an SAT/ACT tutor to charge him at least $100 per hour,” he says.

6. Disseminate information

When building your customer base, consider the following:

• Accept as many clients as possible. “A good way to initially build your customer base is to bring in as many new people as possible at the beginning,” says Wonder. “And we incentivize them for referrals.”

• Create an online profile. “Creating a profile on a website like Wyzant is a great way to find new clients because everyone on the site is already looking for a tutor,” Freeberry says. Another option? Care lets you search for tutoring jobs for free across a variety of subjects and grade levels.

• Contact schools and other relevant businesses. “If you're looking to gain new customers locally, contact the school and see if they need a tutor to turn to when their students run into problems,” Freeberry suggests. “Another great way to find tutoring clients is to reach out to other professionals in your field but not in direct competition, such as educational therapists, university consultants, and child psychologists. We can offer you a referral fee for each client you send us.”

• Please ask for a review. “If you really enjoyed a lesson with a student, asking families to leave a testimonial can help build your brand,” Freeberry says. “If you leave us a good review, we can also offer free lessons to your family.”

7. Develop your social skills

“Although it's not a required qualification, it's a good idea to work on your social skills,” notes Freeberry. “There are many bright minds who graduate from Ivy League schools like Harvard and Yale every year, but they have a hard time as tutors because they have bad attitudes or don't know how to teach properly.'' I will.”

“Remember: The foundation of a successful tutoring business is building quality relationships with students and families, not being smart.”