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How can I start a tutoring business?

Starting a Tutoring Business

There are three basic ways of starting a tutoring business which are i) starting from scratch, ii) buying a tutoring franchise or iii) buying a business start-up package. Below is a brief description of each of these methods, along with the pros and cons of each method.

Starting a tutoring business from scratch means basically doing everything yourself without the benefit of any outside help. You will have to develop your own business plan, do your own market research, decide on a business model that is best for you, create all your own forms, assessment tests, contracts, and about two dozen other tasks that you may or may not have the knowledge to do. Many entrepreneurs choose to start from scratch because they believe that they can do everything themselves and that this will save them a lot of money. However many people find out the hard way that they don’t actually know how to do everything themselves, and they end up spending hundreds of hours researching and developing all the materials, tools and processes they need to start their own tutoring business. And because time is money, starting from scratch may not be such a good idea after all.

Buying a tutoring franchise is at the other end of the spectrum, and it will provide you with most, if not all, of the information, resources and processes you need to successfully start-up your own tutoring business. A good tutoring franchise will provide you with a proven business model, and will even show you how much money you can expect to make in your first, second and subsequent years. And many franchises also do advertising on the Internet, television, radio and other media, which will generate new business for the franchisees. However buying a tutoring franchise can be incredibly expensive, not only in start-up fees which can often be $50,000 to $100,000 or more, but also in ongoing royalties which may take up to 5% or more of your revenue for as long as you operate your franchise. Running a franchise is often restrictive, especially to entrepreneurial type people who are use to making their own decisions. Your franchise contract may dictate where you can locate your business and how wide an area you may draw customers from, as well as how you are to operate your tutoring business. And if you don’t like all these restrictions, there is little you can about it, because you have already signed the franchise agreement and must abide by its terms.

Buying a business start-up package is somewhere in between starting from scratch and buying a franchise, and may be a more suitable alternative for many would be entrepreneurs. A good start-up package will offer you many of the resources you might get with a franchise, but at a fraction of the up-front cost and without any ongoing royalties. You should also look for a start-up package that does not restrict where or how you may operate your business. And you should be able to find a good start-up package for $1,000 or less, which makes this option about fifty to a hundred times less expensive than a franchise! There are some things that you won’t get with a start-up package that you will have to provide yourself, such as a company name and logo, advertising, curriculum, and finding a location, however you will be saving a lot of money by doing some of this development work yourself.


For more information about starting a tutoring business consult:

The Wealthy Tutor

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