How to Write a Business Plan for Your Tutoring Business:
I am often astounded at how many people launch their companies without writing a formal business plan, which is equivalent to building a house without a blueprint! I’m not sure what you would end up with but it probably wouldn’t be anything like the house that you had imagined.
You must first start with a general vision of the business that you want to build by addressing some general questions such as i) How many tutors will be involved?, ii) Where will the tutoring take place? iii) What geographical area will you operate in? and iv) What grades and subjects will you teach?
Once you have answered these general questions, you will be ready to start writing your business plan. You don’t need to have a business or accounting degree to write your business plan, but simply follow a basic guideline and do your research. Here’s a list of seven areas you will want to include, along with a brief description of each:
Executive Summary: This section provides a high-level summary of the industry and the specific opportunities that attracted you to it, as well as the type of business you are proposing to launch. Essentially you want to answer the five W’s – i.e. what, where, why, when and who of the industry and the opportunity. You will complete this section with a description of the business you plan to launch including top level details.
Market Overview: This section will provide valuable information about the industry you will be operating in, and should identify all the factors that will affect you as a competitor. You must research this section carefully so that you will understand your market and your company’s place within it.
Situation Assessment: This section describes your company as it is now, and where you would like to take it in the future. To ensure that your corporate plans are realistic and achievable, we suggest you do an analysis of your company’s strengths, weaknesses, opportunities and threats, commonly referred to by marketing people as a ‘SWOT’ analysis.
Operational Plan: Here you will define exactly how you are going to structure your company and the staff, organization and processes you must establish in order to deliver a successful service that people will want to buy. This should include a detailed description of the Service Provision Process – everything that happens from when the customer calls for the first time, to after the tutoring has taken place, as well as descriptions of the major company functions such as recruiting, billing, customer service etc.
Marketing Plan: Your Marketing Plan should articulate how you will sell your services – i.e. what media you will employ (social media, organic search engineering, pay per click, print advertising, direct mail) and what message you want to deliver to your potential customers. Your marketing plan should also address other promotional activities you will employ, such as school visits, partnerships or other networking activities. You should also define your pricing strategy as this will have a direct impact on your ability to attract customers and the type of customers you wish to attract. You will also need to develop a marketing and advertising budget that will support your customer acquisition plan.
Financial Plan: Your financial plan is an important component of your business plan, because it provides you with realistic objectives against which you can measure the future performance of your company. Your plan should start with carefully researched, reasonable assumptions such as hourly revenue, average hours per month per student, hourly wages etc. Your financial plan should be realistic and do-able, rather than overly optimistic. There is no more satisfying feeling than achieving your financial objectives at the end of the month. If you don’t achieve your monthly objectives, then this should send up a red flag that something is wrong and you need to make adjustments to correct the situation.
Tracking: This section identifies how you will track your performance vs. objectives. At a minimum you will want to track revenue, expenses and new customers on a monthly or quarterly basis.
Action Plan: This is simply a step-by-step, calendar zed plan of every detail that needs to be completed prior to launch. You can create this using MS Excel, MS Project or any other project planning software.
For more information about starting a tutoring business consult: