How much money can a tutoring business generate?
How much money can I make tutoring?
This depends upon a number of factors including how many tutors you have, how many students each of them can handle, and how much you will charge. Here are several typical scenarios that will give you some perspective:
Scenario 1: Joan is a retired teacher who has ten students that she tutors on average twice per week for an hour each. She charges $75 per hour, so her monthly revenue is 10 students X 8 hours per month X $75 per hour = $6,000. She figures she will only tutor for about 9 months of the year on average, so her annual income will be about 9 X $6,000 = $54,000.
Scenario 2: Michael just graduated college and wants to start a full-time tutoring academy. He would like to have at least six tutors working out of the same space, and he figures each one can tutor two students at a time, and work 3 hours each afternoon, thus generating six hours of billable revenue per day, or 30 hours per week. Therefore six tutors can generate 6 X 30 = 180 hours per week, or 720 hours per month. If he charges $60 per hour, this will add up to 720 hours X $60 = $43,200 per month. He figures he can keep his tutors busy about 9 months of the year, on average, so his forecasted annual revenue is $43,200 per month X 9 months = $388,800 annually.
Scenario 3: Carolyn recently graduated from business school and has plans to start a tutoring business sending college students to people’s homes to tutor Math and Science. She believes she can eventually hire 100 tutors, each of whom can tutor 20 hours per month on average, for a total of 2,000 billable hours per month. She figures she can easily charge $65 per hour, so her forecasted annual revenue is 2,000 hours X 8 months X $65 = $1,040,000 (more than a million dollars per year!). She is realistic, however, and knows that it may take her a year or two to get to that level, however she is determined and knows she can do it.
The point I am trying to make with these scenarios is that if you want to figure out how much you can earn with a tutoring business, you must start with your assumptions. Decide where the tutoring will take place, how many tutors you will employ, how many billable hours they can generate each month, and how much you believe you can charge for their services. The rest is just simple math!
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