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Tutor Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 8,000 entrepreneurs and business owners create business plans to start and grow their tutoring service. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a tutoring business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Tutoring Business Plan?

A business plan provides a snapshot of your tutoring service as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Tutoring Business

If you’re looking to start a tutoring service, or grow your existing tutoring service, you need a business plan. A business plan will help you raise funding, if needed, and plan out how you will grow your business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Tutoring Businesses

With regards to funding, the main sources of funding for a tutoring service are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a tutoring service is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a tutoring service. They might consider funding a tutoring company with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

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How to write a business plan for a tutoring service.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of tutoring service business you are operating and the status; for example, are you a startup, do you have a tutoring service that you would like to grow, or are you operating a network of tutoring businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the tutoring industry. Discuss the type of tutoring you are offering. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of tutoring you are offering.

For example, you might operate one of the following types:

• Exam preparation : this type of tutoring company provides exam preparation and training materials for high school students, undergraduate students, and recent college graduates preparing for college entrance exams such as the SAT, ACT, GRE, etc.
• Primary school tutoring : this type of tutoring specializes in helping students in K-12. This type of tutoring is typically subject-specific – math, literature, history, etc.
• Occupational and advanced academics tutoring : agencies may sometimes specialize in occupational certification for those entering the workforce as engineers, mechanics, technicians, etc.

In addition to explaining the type of tutoring you provide, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include placement goals you’ve reached, the number of new contracts, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the tutoring industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the tutoring industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the tutoring industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5-10 years?
• What is the relevant market size? That is, how big is the potential market for your tutoring service? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: elementary students, middle school students, high school students, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of tutoring you offer. Clearly, high school students would want different subject tutoring and would respond to different marketing promotions than professional certification clients.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most tutors primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target market. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other tutoring services.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes peers, teachers, or graduate students. You need to mention such competition to show you understand that not everyone who needs help with grade improvement and test preparation will hire a tutoring company.

• What types of customers do they serve?
• What types of tutoring services do they offer?
• What is their pricing structure (premium, low, tiered, etc.)?
• What are they good at?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to engage your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a tutoring service, your marketing plan should include the following:

Product: in the product section you should reiterate the type of tutoring that you documented in your Company Analysis. Then, detail the specific courses or subject help you will be offering. For example, in addition to high school level math tutoring, will you provide GED preparation, or will you be specializing in certification preparation for a specific occupation?

Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place: Place refers to the location of your tutoring services. Document your location and mention how the location will impact your success. For example, is your tutoring office located next to a high school or near a retail district, etc? Discuss how your location might provide a steady stream of customers.

Promotions: the final part of your tutoring marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to schools and teachers
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your tutoring service, such as serving customers, attracting future applications, processing paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect your 100 th student to successfully improve their grades, or when you hope to reach $X in sales. It could also be when you expect your Xth student to excel at a specific exam, or when you expect to launch a new location.

Management Team

To demonstrate your tutoring business’ ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in teaching or tutoring. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in education and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your tutoring office, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $100,000 contract for helping employees achieve certification, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for curriculum, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing your tutoring service:

• Location build-out including design fees, construction, etc.
• Cost of equipment like software, office equipment, etc.
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease.

Tutoring Business Plan Template PDF

You can download our tutoring business plan PDF to help you get started on your own business plan.  

Putting together a business plan for your tutoring company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the tutoring industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful tutoring service.

Don’t you wish there was a faster, easier way to finish your Tutor business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Tutoring Business Plan Template

Written by Dave Lavinsky

Tutoring Business Plan

You’ve come to the right place to create your Tutoring business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Tutoring businesses.

Below is a template to help you create each section of your Tutoring business plan.

Executive Summary

Business overview.

LearnWell Tutoring is a startup tutoring company located in Pocatello, Idaho. The company is founded by Carrie Longwood, a former manager of a franchise tutoring business located in a suburb of Pocatello. Carrie’s determination to assist children in learning, no matter what they’re level of capability, earned her the regard and respect of the parents who observed her dedication to their children’s learning needs. The clients have written multiple letters of recommendation and have promised to support her in her startup venture by either enrolling their children in her tutoring services company or spreading the word about her new company.

LearnWell Tutoring will focus on specific age groups in order to maximize efficiency and ensure the students receive the highest level of teaching and tutoring skills. Elementary children, ages 5-12, will receive tutoring commensurate with the course curriculum they study at their individual schools, whether private or public. In addition, they may be taught or tutored in a foreign language or other academic area of interest to them. Middle school students, ages 13-14, will also be tutored in the academic areas that conform to their school curriculum, depending on the individual needs of the student and the expectations set forth by their school and parents. High school students, ages 14-18, will focus on academic studies as needed or set forth by teachers or academic advisors.

Product Offering

The following are the services that LearnWell Tutoring will provide:

• Assigned 7-day-a-week tutoring sessions
• Curriculum specific tutoring as needed
• Advanced course curriculum tutoring as needed
• Parent/tutor weekly conferences
• Focused academic tutoring programs
• Enhanced tutoring featuring digital tutoring pathways
• Monthly online payment portal for ease of clients

Customer Focus

LearnWell Tutoring will focus on the parents or caregivers of students, ages 5-18, who will benefit from private tutoring in academic subjects of all kinds. LearnWell Tutoring will focus on the public and private schools within the Pocatello region. LearnWell Tutoring will focus on parents or caregivers who may choose advanced courses or foreign language introductions for their children. LearnWell will focus on citywide associations and collaborative partnerships within the city.

Management Team

LearnWell Tutoring will be owned and operated by Carrie Longwood. She has recruited three former tutors from her employer’s franchise business to become Academic Expert Tutors within her new tutoring company. Sheri Blackwell will become the Academic Expert Tutor for the elementary students; Greg Thompson will become the Academic Expert Tutor for the middle school students; and Jack Owens will become the Academic Expert Tutor for the high school students.

Carrie Longwood is a former manager of a franchise tutoring business located in a suburb of Pocatello. Carrie’s determination to assist children in learning, no matter what they’re level of capability, earned her the regard and respect of the parents who observed her dedication to their children’s learning needs. The clients have written multiple letters of recommendation and have promised to support her in her startup venture by either enrolling their children in her tutoring services company or spreading the word about her new company.

Sheri Blackwell, formerly a tutor for children ages 5-12, will become the Academic Expert Tutor for the elementary students.

Greg Thompson, formerly a senior tutor for children ages 13-14, will become the Academic Expert Tutor for the junior high students.

Jack Owens, a former full-time, tenured high school teacher will become the Senior Academic Expert Tutor for the high school students

Success Factors

LearnWell Tutoring will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at LearnWell Tutoring
• LearnWell Tutoring offers the most reasonable pricing for tutoring students of all ages and provides discount packages for families with multiple children in tutoring.

Financial Highlights

LearnWell Tutoring is seeking $200,000 in debt financing to launch LearnWell Tutoring. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for LearnWell Tutoring.

Company Overview

Who is learnwell tutoring.

LearnWell Tutoring is a newly established, full-service tutoring service based in Pocatello, Idaho. LearnWell Tutoring will be the most reliable, cost-effective, and efficient choice for students in Pocatello and the surrounding communities. LearnWell Tutoring will provide a comprehensive menu of tutoring services for all parents or caregivers to utilize. Their full-service approach includes a comprehensive array of curriculum choices and tutoring styles, in addition to a digital platform that is interactive for students.

  LearnWell Tutoring will be able to successfully tutor students ages 5-18. The team of teaching and tutoring professionals are highly qualified and experienced in both skillsets. LearnWell Tutoring removes all headaches and issues of the learning process for students and ensure a positive outcome with tutoring professionals who can guide the students to better, more informed learning practices. All issues are removed expeditiously while delivering the best customer service.

LearnWell Tutoring History

Since incorporation, LearnWell Tutoring has achieved the following milestones:

• Registered LearnWell Tutoring, LLC to transact business in the state of Idaho.
• Has a contract in place at one of the office buildings for a 10,000 square foot office and conference room area.
• Reached out to numerous former tutoring clients to refer LearnWell Tutoring to others.
• Began recruiting a staff of 10 and office personnel to work at LearnWell Tutoring.

LearnWell Tutoring Services

The following will be the services LearnWell Tutoring will provide:

Industry Analysis

The academic tutoring industry is expected to grow over the next five years to over $172 billion. The growth will be driven by a high rate of interest and demand by parents and caregivers. The growth will be driven by technological advancements that make tutoring platforms and tutors easily accessible. The growth will be driven by a growing acceptance of tutors for students who need extra training and cognitive understanding of various subjects. The growth will be driven by students who missed critical learning skills during the global pandemic and now need instructions. Costs will likely be reduced as tutoring services become more available and accessible.

Customer Analysis

Demographic profile of target market.

LearnWell Tutoring will focus on the parents or caregivers of students, ages 5-18, who will benefit from private tutoring in academic subjects of all kinds. LearnWell Tutoring will focus on the public and private schools within the Pocatello region. LearnWell Tutoring will focus on parents or caregivers who may choose advanced courses or foreign language introductions for their children. LearnWell will focus on citywide associations and collaborative partnerships within the city programs.

Customer Segmentation

LearnWell Tutoring will primarily target the following customer profiles:

• Parents or caregivers of students in need of tutoring
• Public and private schools within the region of Pocatello
• Parents or caregivers who want advanced curriculum teaching for their children
• Citywide associations or collaborative partnerships within the city programs

Competitive Analysis

Direct and indirect competitors.

LearnWell Tutoring will face competition from other companies with similar business profiles. A description of each competitor company is below.

AceTutors Academy

Ace Tutors Academy is an academic tutoring company dedicated to educational support to elementary-aged children. Three goals of the academy are listed on their website: Foster a love for learning, boost confidence, and help children excel in academics”. The tutors focus on ages 5-12 and have a rotating cadre of tutors who instruct online on a part-time basis over the weekly schedule set out by the owner of the company, Nick Demas. As a former online tutor, Nick found that elementary aged children struggle the most with reading skills, math calculations and social studies. As a result, he founded his company in 2015. There are 5 tutors, most of whom have at least one year of tutoring experience, who work on the rotational basis, helping students as needed. There are no monthly contracts for clients; students can jump online at any time for a minimum of one-hour per session to increase or learn a new skill set.

Global English Tutoring

Global English Tutoring is a specialized tutoring company focused on providing comprehensive English language instruction to foreign students of all ages. The goal of the owners, John and Marie Hoover, is to bring English proficiency to students from all countries. The program is designed to help students overcome language barriers, improve their communication skills, and thrive in an English-speaking environment.

The services of Global English Tutoring are similar to the franchised former tutoring company owned by John and Marie Hoover. Their target audience is foreign students, both children and adults, who are seeking to learn or enhance their English language skills. They also target international students, expatriates, and professionals looking to improve their language. Their business was formed in 2019, with the aim to bring these skills to students online around the world and to also, concurrently, bring English-speaking students into diverse backgrounds by teaching and tutoring. The company currently employs three tutors and an administrative assistant and is headquartered in a suburb near Pocatello.

Nihongo Tutoring

Nihongo Tutoring is a specialized tutoring company dedicated to teaching English-speaking adults the Japanese language. With the expansion of the global market, this online tutoring company has opened the doors to English speakers to the world of the Japanese language, along with the cultural and societal understandings that accompany the language. The owners, Ming and Tsong Hingbo, are expert tutors in the company and have prepared the entire curriculum based on their experience and knowledge of Japanese and Japan. They started the company in 2020 and enrollment has grown since that time.

Tutoring is available for adult learners who take an online immersive learning experience. The 24-month tutoring program is paid for in full before starting and, when completed, signifies through a certification that students are capable of and can converse in Japanese. Multiple global companies utilize the services of Nihongo Tutoring and several place their entire executive board into the 24-month programs to facilitate an understanding of their global partnerships. The tutoring program includes academics, history of Japan, social customs, upcoming trends and new markets, corporate structuring, along with protocols for meetings and meals.

Competitive Advantage

LearnWell Tutoring will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

LearnWell Tutoring will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive academic program of tutoring services
• Unbeatable pricing to its clients, with discounts given for multiple students in one family

Promotions Strategy

The promotions strategy for LearnWell Tutoring is as follows:

Word of Mouth/Referrals

LearnWell Tutoring has built up an extensive list of contacts over the years by providing exceptional service and expertise to former students of owner Carrie Longwood. The former clients have agreed to follow Carrie to her new company and help spread the word of LearnWell Tutoring by referrals and word-of-mouth efforts.

Professional Associations and Networking

Carrie Longwood will network among school and community groups to offer services for academic studies to students in need. She will initiate contact with the school district offices throughout Pocatello to offer her services, as well.

Print Advertising

All parents of students within the region of Pocatello will receive a brochure from the LearnWell Tutoring company three weeks prior to the launch of the business. Discounts for the first three months of the company will be offered, along with packages for families who have two or more students who need academic tutoring.

Website/SEO Marketing

LearnWell Tutoring will fully utilize their website. The website will be well organized, informative, and list all the academic services that LearnWell Tutoring provides. The website will also list their contact information and open tutoring schedules for clients to click on and reserve. The LearnWell Tutoring’s website will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “tutoring company” or “tutoring near me”, LearnWell Tutoring will be listed at the top of the search results.

The pricing of LearnWell Tutoring will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for LearnWell Tutoring. Operation Functions:

• Carrie Longwood will be the Owner and President of the company. She will oversee all staff and manage client relations. Carrie has spent the past year recruiting the following staff:
• Sheri Blackwell, formerly a tutor for children ages, 5-12, who will become the Academic Expert Tutor for elementary students.
• Greg Thompson, formerly a senior tutor for children ages 12-14, who will become the Academic Expert Tutor for the junior high students.

Jack Owens, a former full-time, tenured high school teacher will become the Senior Academic Expert Tutor for the high school students.

Milestones:

LearnWell Tutoring will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for LearnWell Tutoring
• 6/1/202X – Finalize contracts for LearnWell Tutoring clients
• 6/15/202X – Begin networking at association and community events
• 6/22/202X – Begin moving into LearnWell Tutoring office
• 7/1/202X – LearnWell Tutoring opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for LearnWell Tutoring are the fees they will charge to clients for their academic tutoring services.

The cost drivers will be the overhead costs required in order to staff LearnWell Tutoring. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

LearnWell Tutoring is seeking $200,000 in debt financing to launch its academic tutoring company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients Per Month: 120
• Average Revenue per Month: $34,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Tutoring Business Plan FAQs

What is a tutoring business plan.

A tutoring business plan is a plan to start and/or grow your tutoring business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Tutoring business plan using our Tutoring Business Plan Template here .

What are the Main Types of Tutoring Businesses? 

There are a number of different kinds of tutoring businesses , some examples include: Exam preparation, Primary school tutoring, and Occupational and advanced academics tutoring.

How Do You Get Funding for Your Tutoring Business Plan?

Tutoring businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Tutoring Business?

Starting a tutoring business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Tutoring Business Plan - The first step in starting a business is to create a detailed tutoring business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your tutoring business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your tutoring business is in compliance with local laws.

3. Register Your Tutoring Business - Once you have chosen a legal structure, the next step is to register your tutoring business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your tutoring business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Tutoring Equipment & Supplies - In order to start your tutoring business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your tutoring business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful tutoring business:

• How to Start a Tutoring Business

• Sample Business Plans
• Education & Training

Tutoring Business Plan

A tutoring business is one of the few businesses which requires a very limited budget in the beginning and has no limits in terms of growing the business.

People or students always need tutors to pass some important examinations or prepare for higher studies. A tutoring business is a highly demanding business and can be started with limited resources.

In the beginning, you can start a business alone yourself and can hire more tutors to expand your business anytime in the future.

Moreover, you do not always require a college degree to start a tutoring business . Many clients are willing to hire professionals with significant experience and skills regarding the subject.

If you want to be a solo tutor it’s okay to work without a business plan. But if you want to expand and grow your business, you will need a business plan.

To write a business plan, you can use our sample ABC – Tutoring Business Plan created using upmetrics business plan software and start writing your business plan in no time.

Before you start writing your business plan for your new tutoring business, spend as much time as you can reading through some sample business plans written for the education and training industry .

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business goals.

We have created this sample tutoring business plan for you to get a good idea about what a perfect tutoring business plan should look like and what details you will need to include in your stunning business plan.

Tutoring Business Plan Outline

This is the standard tutoring business plan outline which will cover all important sections that you should include in your business plan.

• Business Summary
• Market Research Summary
• Marketing Summary
• Business Description
• Compelling Value
• Product/Service Description
• Company History
• Legal Structure
• Vision & Mission
• Professional Advisors(optional)
• Goals & Objectives
• Industry Profile & Outlook
• Local Market
• ABC Tutoring
• Target Market
• Keys to Success
• Customer Survey Summary
• Pricing Strategy
• Marketing Strategy
• Marketing Activities
• Marketing Objectives
• Positioning Statement
• Sales Process
• Strategic Alliances
• Physical Location
• Virtual Location
• Legal Issues
• Insurance Issues
• Human Resources
• Process/Production
• Risk Assessment
• Past Purchases
• Start-up Costs Sheet
• Sales Forecast Assumptions
• Projected Profit and Loss
• Projected Balance Sheet

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After getting started with upmetrics , you can copy this tutoring business plan example into your business plan and modify the required information and download your  tutoring business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample tutoring business plan

Need help writing your business plan from scratch? Here you go;  download our free tutoring business plan pdf  to start.

It’s a modern business plan template specifically designed for your tutoring business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Tutoring Business Plan Template & PDF Example

• August 27, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful tutoring business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your tutoring business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a tutoring business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your tutoring business concept into reality. Let’s dive in!

Our tutoring business plan is thoughtfully designed to cover all essential components necessary for a full and strategic framework. It outlines the business’s instructional approaches, marketing strategies, educational market dynamics, competitors, management structure, and financial projections.

• Executive Summary : Offers a snapshot of the driving school’s business idea, market evaluation, management team, and financial strategy.
• Facility & Location: Describes the driving school’s facilities, training vehicles, and why its location benefits potential students.
• Curriculum & Classes : Enumerates the driving courses offered, including beginner to advanced driving lessons, and the pricing model.
• Key Stats: Presents industry size , growth patterns, and pertinent statistics for the driving school market.
• Key Trends : Points out recent trends impacting the driving education field, such as online learning and simulator training.
• Key Competitors: Evaluates major competitors in the vicinity and how your driving school offers a unique value proposition .
• SWOT: Analysis of strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Tactics for attracting and keeping students, emphasizing digital marketing, community partnerships, and special programs.
• Timeline : Principal milestones and goals from the inception through the first year of operations.
• Management: Details on the individuals running the driving school and their respective roles.
• Financial Plan: Forecasts the driving school’s financial performance over 5 years, including income streams, profit margins, and anticipated costs.

Tutoring Company Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your tutoring business’s plan, providing a succinct overview of your educational services and objectives. It should detail your market positioning, the range of tutoring services you offer, subjects covered, target student demographics, and an outline of day-to-day operations including tutoring methods and platforms used (in-person, online, or both).

This section should also discuss how your tutoring business will integrate into the local or online education market, including the number of direct competitors within the area or online space, identifying who they are, along with your business’s unique selling points that differentiate it from these competitors. This could include specialized tutoring subjects, unique teaching methodologies, or flexible scheduling options.

Furthermore, you should include information about the management and co-founding team, detailing their roles, educational backgrounds, and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue, costs, and profits over the next five years, should be presented here to provide a clear picture of your tutoring business’s financial plan.

Tutoring Business Plan Executive Summary Example

Business Overview

In this section, provide a concise overview of your tutoring business, including its name, the range of subjects offered, the facilities and resources available, the qualifications of your tutors, and the location of your tutoring center.

This part should highlight what makes your tutoring service stand out, such as specialized subjects, flexible scheduling, advanced teaching aids, or a strategic location. Your  unique value proposition  (UVP) should be clear, demonstrating the distinct benefits your tutoring business offers to students.

Example: “Academic Excellence Tutoring,” located in the accessible Urban Education Hub, offers personalized tutoring in mathematics, science, and test preparation. Our center features modern classrooms and advanced educational tools, providing an optimal learning environment. With certified tutors and flexible scheduling for over 30 classes weekly, we cater to diverse student needs, setting us apart in the competitive tutoring market.

Market Overview

Outline the tutoring industry’s  market size , growth trends, and key dynamics. Discuss the increasing demand for personalized tutoring, the integration of technology in education, and the emphasis on STEM and test preparation services.

Address the  competitive landscape  by identifying major competitors and explaining how your tutoring service differentiates itself, whether through unique teaching methods, specialized subjects, or competitive pricing.

Example: The US tutoring market, valued at $20.5 billion, is experiencing significant growth, driven by the demand for tailored educational services. “Academic Excellence Tutoring” distinguishes itself by specializing in STEM subjects and test prep, utilizing cutting-edge technology for personalized learning. Our focus on quality education in a competitive market, with six main competitors within a 10-mile radius, underscores our commitment to excellence.

Management Team

Highlight the qualifications and roles of your key management team members, showcasing the expertise and leadership driving your tutoring business.

Example: Led by co-founders Alex Johnson and Jamie Lee, “Academic Excellence Tutoring” benefits from Alex’s extensive background in education and curriculum development, and Jamie’s expertise in business management and finance. Their combined skills ensure high-quality tutoring services and a strong operational foundation, propelling the business towards its goals.

Financial Plan

Summarize your financial objectives and projections, including revenue targets and profit margins, to convey a clear financial outlook for your tutoring business.

Example: “Academic Excellence Tutoring” is on track to achieve $1.2 million in annual revenue by 2028, with a projected 9%  EBITDA  margin. Our financial strategy focuses on expanding our subject offerings, leveraging technology in tutoring, and enhancing our marketing efforts to drive enrollment and revenue growth, ensuring the long-term success and sustainability of our tutoring services.

For a tutoring business, the Business Overview section can be effectively divided into 2 main categories:

Facility & Location

Briefly describe the physical or virtual setup of your tutoring center, emphasizing the learning environment, technology use, and the overall atmosphere that supports student engagement and learning.

Mention the tutoring business’s location, highlighting its accessibility for students and parents, such as proximity to schools or ease of online access. Explain why this location or platform choice is advantageous in attracting your target student demographic.

Curriculum & Classes

Detail the range of subjects and courses offered, from basic academic support in subjects like math and English to specialized tutoring services such as test preparation (SAT, ACT, etc.) or advanced STEM subjects.

Outline your pricing strategy , ensuring it reflects the quality and individualization of the tutoring provided and matches the market you’re targeting. Highlight any packages, membership deals, or loyalty programs that provide added value to your students and parents, encouraging consistent engagement and long-term relationships.

Industry Size & Growth

Begin with an analysis of the education and private tutoring industry’s size and growth potential, highlighting the escalating demand for personalized academic support and specialized tutoring services.

Key Market Trends

Discuss trends like the surge in online tutoring, the focus on STEM subjects, and the importance of test prep services for college admissions, noting the shift towards customizable learning experiences and digital platforms.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your tutoring business in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your tutoring business’s unique selling points, essential for differentiating your business in a competitive market.

In addition, the competitive analysis is integral to laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Tutoring Industry

The initial step is to identify who your competitors are. Start by listing local tutoring centers, private tutors, and online tutoring platforms. For instance, if your service specializes in SAT preparation, your direct competitors would be other SAT prep centers and tutors in your vicinity, as well as large online tutoring services offering similar prep courses. It’s important not to disregard indirect competitors like educational apps or websites that provide free SAT prep resources.

Utilize online tools such as Google Maps for a geographical overview of where competitors are located. Educational review sites and forums can offer insights into the  strengths and weaknesses  of these competitors based on user feedback. For example, if numerous reviews praise a local tutor for their personalized approach and success rate, this highlights a competitive strength.

Tutoring Business Competitors’ Strategies

Evaluating your competitors’ strategies involves several factors:

• Tutoring Services Offered:  Look at the range of subjects and courses they offer. If a nearby center, “Ace the Test Tutoring,” is renowned for its comprehensive STEM subject tutoring, this could indicate a demand for STEM-focused educational support.
• Teaching Methodologies:  Assess the teaching methods employed. A service like “Traditional Tutors” that focuses on one-on-one, in-person sessions may attract a different clientele than “Techie Tutors,” known for incorporating cutting-edge technology and interactive online sessions.
• Pricing Models:  Analyze how your pricing compares to your competitors. Are your services more affordable like “Budget Tutoring,” or do they cater to a more premium segment like “Elite Academic Coaches”?
• Marketing Strategies :  Examine how competitors promote their services. Do they have a significant online presence, or do they engage more with local schools and community events?
• Student Experience:  Consider the learning environment and student support. For example, “Friendly Tutors” might be popular for its supportive and encouraging tutoring atmosphere.
• Operational Efficiency:  Look at whether competitors use technology or innovative teaching methods to enhance learning, such as “Interactive Learning Tutors” with its proprietary e-learning platform.

What’s Your Tutoring Business’s Unique Value?

Reflect on what makes your tutoring service stand out. Perhaps you offer a specialized program that combines test prep with stress management techniques, or maybe you provide a unique peer-tutoring program that connects students with relatable mentors.

Identify gaps in the market through student feedback and educational trends. For example, an increase in demand for coding and digital literacy skills could be an opportunity if local competitors are not offering these subjects.

Consider your location and target demographic: A tutoring service in a university town might focus on higher-level subjects and test prep for college admissions, while a service in a family-oriented suburb could thrive by offering a wide range of K-12 tutoring to cater to younger students.

First, conduct a SWOT analysis for your tutoring business, highlighting Strengths (such as experienced tutors and a diverse curriculum), Weaknesses (including limited brand recognition or high startup costs), Opportunities (for instance, the growing demand for online learning and specialized tutoring services), and Threats (such as competition from established tutoring centers and free online educational resources).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain students through targeted advertising, promotional offers, an engaging online presence, and community partnerships, focusing on the unique benefits and results your tutoring services provide.

Marketing Channels

Leverage various marketing channels to reach your target audience and enhance brand visibility.

Digital Marketing

• Social Media Engagement:  Utilize platforms such as Facebook, Instagram, LinkedIn, and Twitter to share valuable educational content, success stories, testimonials, and engaging visuals or videos showcasing your tutoring approach.
• Content Marketing:  Establish a blog on your website featuring informative articles, study tips, subject-specific guides, and educational resources. Optimize your content for search engines to attract organic traffic and position your brand as an educational authority.
• Email Marketing:  Build an email list by offering downloadable educational resources, free trial sessions, or newsletters featuring valuable content, updates on tutoring programs, and exclusive promotional offers.

Local Marketing

• Community Engagement:  Forge partnerships with schools, libraries, community centers, and local educational institutions to offer free workshops, seminars, or trial tutoring sessions. This engagement helps build credibility within the local community and fosters relationships with potential clients.
• Networking:  Attend educational fairs, parent-teacher meetings, and local events to connect with prospective clients, educators, and parents. Establishing a network within the educational community can significantly expand your client base.

Promotional Activities

Incentivize potential students and parents to engage with your tutoring services through strategic promotions.

• Free Trial Sessions:  Offer complimentary trial sessions to showcase your tutoring methods, connect with potential clients, and demonstrate the value of your services.
• Referral Programs:  Implement referral incentives for existing clients who refer new students to your tutoring business. Offer discounts, free sessions, or other rewards to encourage referrals and amplify word-of-mouth marketing.
• Seasonal Promotions:  Develop promotional campaigns aligned with academic schedules, exam seasons, holidays, or back-to-school periods. These promotions can attract more students during peak times and create opportunities for ongoing enrollment.

Sales Channels

Implement effective sales strategies to convert leads into paying clients and sustain business growth.

• Consultative Selling Approach:  Provide complimentary consultations to understand the educational needs of potential students. Propose personalized tutoring solutions tailored to address their specific challenges and learning objectives.
• Transparent Pricing:  Clearly outline your tutoring packages, pricing structures, and flexible payment options on your website, brochures, and promotional materials. Transparency in pricing builds trust with potential clients.
• Online Booking System:  Simplify the process of scheduling tutoring sessions by implementing an intuitive and user-friendly online booking system. Offer incentives, such as discounts, for clients who book sessions online, streamlining the enrollment process.

Retaining Customers

Focus on retaining existing students and cultivating long-term relationships to ensure ongoing enrollment and business sustainability.

• Progress Tracking:  Provide regular progress reports to parents and students, highlighting improvements and  milestones  achieved through tutoring sessions. Clear communication about progress builds trust and reinforces the value of your services.
• Loyalty Programs:  Establish loyalty rewards or discounts for long-term students as a gesture of appreciation for their commitment to your tutoring services. Encouraging ongoing engagement can foster a sense of loyalty and support retention efforts.
• Personalized Support:  Offer supplementary resources, study materials, or online support between tutoring sessions. Providing additional support demonstrates your dedication to student success and enhances the overall learning experience.

Strategy Timeline

Finally, create a detailed timeline that outlines key milestones for the tutoring business’s launch, marketing initiatives, student enrollment growth, and potential expansion plans, ensuring the business progresses with a clear direction and measurable goals.

The Management section focuses on the tutoring business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the tutoring business toward its financial and operational goals.

For your tutoring business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your tutoring business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your tutoring business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Our Tutoring Business Plan for MS PowerPoint and Google Slides is an ideal choice for depicting your coaching business’s vision, target market, services, pricing model, financial projections, and other details to the target audience. Deliver an unforgettable presentation on how your tutoring services empower students to excel academically and achieve the desired results.

Educators and trainers can showcase the market and risk analysis, marketing strategy, and implementation plan of their tutoring business. You can also illustrate the educational challenges and how your tutoring company addresses them with its unique value proposition. Harness our striking visuals and well-researched content to highlight the online/offline/hybrid courses offered by your coaching business and how they will make the students’ learning experience more engaging and effective.

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How To Write a Winning Tutoring Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for tutoring businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every tutoring business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Tutoring Business Plan?

A tutoring business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Tutoring Business Plan?

A tutoring business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Tutoring Business Plan

The following are the key components of a successful tutoring business plan:

Executive Summary

The executive summary of a tutoring business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your tutoring company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your tutoring business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your tutoring firm, mention this.

You will also include information about your chosen tutoring business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a tutoring business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the tutoring industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a tutoring business may include parents of school-aged children and working professionals who want to improve their English language skills.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or tutoring services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your tutoring business may have:

• Proven track record of success
• Extensive tutoring experience
• Highly qualified and experienced staff
• State-of-the-art technology and tools
• Customized programs to meet individual needs

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your tutoring business via word-of-mouth marketing.

Operations Plan

This part of your tutoring business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a tutoring business include reaching $X in sales. Other examples include adding a certain number of new customers or hiring a specific number of new tutors.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific tutoring industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Tutoring Business

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Tutoring Business

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup tutoring business.

Sample Cash Flow Statement for a Startup Tutoring Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your tutoring company. It not only outlines your business vision, but also provides a step-by-step process of how you are going to accomplish it.  

Finish Your Tutoring Business Plan in 1 Day!

Creating a Tutoring Business Plan - A Step-by-Step Guide

What is a tutoring business plan and do i need one, what makes a good tutoring business plan, how to create an effective tutoring business plan, sample outline, executive summary , business profile, market research.

• Sales & Marketing

Executive summary

Tutoring business plan tips and tricks, when is it good to create a tutoring business plan, when you are just starting, when bringing in partners, when you are embarking on joint ventures, when you need to secure financing, 5 mistakes you should avoid when making a tutoring business plan.

• Wrap Up & Conclusion

Do you have a knack for helping others learn? Are you looking for a way to make some extra money or simply want to be your own boss?

If so, starting your own tutoring business may be the perfect solution for you! In this blog post, we'll discuss how to create a successful tutoring business plan.

We'll cover everything, step by step, from marketing your services to setting prices and more. So, whether you're just getting started or you're looking to take your business to the next level, keep reading for some helpful tips and advice!

If you have stumbled upon this blog then you are likely wondering, do you need a business plan? Does having a business plan come with benefits? Does my already established tutoring business require a business plan? We have compiled all these answers into this article that will help you create your very own tutoring business plan with clear actionable steps and examples.

First things first, having a business plan makes running a business easier. It helps you understand your value proposition, reach potential customers and can even help with financing. In fact, businesses intending to secure a loan and those intending to secure investment capital using a business plan are positively correlated with success rates. And, while some decisions are based on risk, you cannot depend on this for the success of your business. This is where a business plan comes in handy.

Here we will provide you with a comprehensive guide on how to create a business plan for your tutoring business from scratch. Here’s what’s to come:

• What makes a good tutoring business plan?
• How to create an effective tutoring business plan?
• Tutoring business plan tips and tricks
• Tutoring business plan FAQs

Read More: Write a business plan from Gov.uk

The type of business plan you create will depend largely on your specific tutoring business. However, in general, a business plan is a document that clearly defines your milestones and how you plan to achieve them. Having a hard copy of all important details and goals to show potential investors and employees makes it easier to be held accountable while keeping track of these details and improving upon them.

A good business plan will help you to:

• Organise your thoughts in a professional and easy-to-understand way
• Make sound and informed business decisions with solid projections to reach realistic targets
• Communicate your plans to banks, your partners, and even your employees.

The biggest benefit of starting your own tutoring business is that this business can be started on any scale. You can even start it from your home with little to no investment. However, if you want to start a proper tutoring centre where students with different age groups and educational backgrounds will be helped with their education, you will first have to prepare a comprehensive tutoring business plan. The business plan will not only establish the basis of your company’s future operations and decisions but will also help you with funding your startup.

Before you start writing your business plan for your new tutoring business, spend a bit of time doing research and reading through some sample business plans written for the education and training industry. This will give you a good idea of what you’re aiming for and will also show you the various sections that different entrepreneurs include, the language they use to write about themselves and their business goals.

We have created the following sample outline for your tutoring business plan from some popular examples to give you a better idea of how to structure the perfect tutoring business plan. Remember that not all of these need to be included! Pick out the key elements for your tutoring business:

• Include a business summary, market research summary, marketing summary, financial situation summary and net income.
• Include business overview, business description, compelling value, product/service description, company history, management, location, legal structure, vision and mission, professional advisor (optional), goals and objectives.
• Include, industry profile and outlook, local market, key competitors/SWOT analysis, TOP tutors, ABC tutoring, target market, keys to success, and customer survey summary. 

Sales & Marketing

• Include pricing strategy, marketing strategy, marketing activities, marketing objectives, positioning statement, sales process and strategic alliances.
• Include physical/virtual location, legal considerations, insurance considerations, human resources, process/production and risk assessment. 
• Include past purchases, start-up costs sheet, sales forecast assumptions, cash flow, projected profit and loss and projected balance sheet. 
• Include any relevant documentation to support your business plan. 

Let's dive a little deeper into each of these categories…

The executive summary consists of your entire business plan summary. It always appears at the beginning of the plan but should be always done last. It is crucial to note that the executive summary is of utmost importance, as it will be one of the first parts of your plan that anyone reads. It should contain a summary of everything your tutoring business is focused on in a maximum of one or two pages.

One of the best pieces of advice we can give is to not oversell your business. Usually, everyone wants to find out what you are focusing on and how you are solving the problems in your industry. Therefore, start by:

• A brief description of your entire business plan.
• Try to summarise each of the sections you’re covering.
• Keep it straight to the point.
• Improve it often.

This section should cover what your tutoring business does, your unique selling point (USP), competitive value, vision, mission and so on. It is important to have clearly defined points, which might be difficult if you’re still in your inception phase. What you need to remember is that as long as you outline your objectives and what you’re hoping to achieve, your profile will look well-polished. Don’t forget to choose and highlight your tutoring method, be it online, in person, or both. If you decide to go the online teaching route, there are a lot of tools and services that can help make scheduling and conducting classes easier.  

To write your business profile, follow these steps:

• Start with an elevator pitch: Describe your business in the easiest way possible, so any reader would understand. Stay away from smart words - they might make you sound good, but in reality, they complicate the context. Explain what you do, your service description and your USP. A paragraph should be enough. Later on, move along with your value proposition, mission, vision and your goals and objectives. These points help elevate your business plan and set you apart from the competition.
• Be straight to the point: The more clear and concise you are, the better the reader will understand your business model. 
• Keep your points short: Short sentences are key here, but make sure not every sentence is short as it disturbs the reading pace and it might make it quite monotonous. The important thing here is to keep all the essential information short and explain what requires explanation a bit longer.

When you present your market research, you have to demonstrate your understanding of the tutoring industry. You have to mention factors that have an influence on the industry such as local market area, key competitors, target market and your strategy for success. An easy approach would be to start broad and then go towards more specific that applies to your services.

Start your market research with:

• Conduct industry-related interviews with key people.
• Speak to parents and students and record what they feel it’s missing.
• Identify key competitors and analyse their business offerings. 
• Determine the cost of tutoring services in your area and check if your costs are competitive.
• Create buyer personas based on your target demographic and the type of students you hoping to attract.

When your offering is defined, it is time for it to be promoted with the goal of selling it. Your sales and marketing section should contain your strategy of how are you planning to market and sell your tutoring services. It is not an easy job to attract the customers you want, so it is crucial to have a thorough think about how you’ll do it and plan ahead. 

You won’t be able to attract the customer you want by marketing where your target market isn’t present. You need to focus on making noise and push out your offering through public relations and other relevant marketing channels. This is a good exercise to demonstrate your persuasive skills and think about how can you attract students, parents and teachers to your services. Remember to be genuine and avoid ‘salesy’ language.

Here’s what you need to consider:

• Choose the platform or means of selling your tutoring services, but keep in mind that your target customer has to be on there. Do some research and find out where your target audience can be found and market there.
• Build your brand presence on your platform of choice and fill it with information that a student, parent or teacher in need of tutoring would go to.
• Once all that’s been set in stone, form a relationship with your audience and be as helpful as you can. This will help increase your brand authority and spread the word about it to other platforms.
• Top tip, if you follow most of these steps above, your brand will start getting its own voice and sell itself through loyal customers, which means you won’t have to invest much in marketing.

Your operation portion of your tutoring business plan contains essential information about general operational details that help investors understand the physical details of your vision. Information such as the location of your business, assets, legal matters, insurance and resources. If you’re just started your business, the operations plan can also serve as a checklist for startups as it includes a list of everything that must be done to start turning a profit. To put it simply, you explain how your business operates from all points of view.

And the most stressful part of a business plan as some may say, it’s your finances and how you keep track of them and maximise revenue for your tutoring business. This is where a tutoring business plan comes in handy, as you need to forecast spending and make sure you have the necessary resources to succeed.

Predictions are not always certain, but what you have to do is do as much research as possible in order to be as accurate as you can. Your business will grow over time, therefore the forecasting and budgeting will get more complex. That’s why it is important that not only essential but also relevant financial data is meticulously recorded in your books.

Invoicing is an extremely important part of tracking finances for your tutoring business. Invoices collect the charges that have been placed on your clients from lessons and ad hoc charges. When a company generates invoices, it can review each one before sending them to its clients. Clients that have received lessons will be able to see any sent invoices and pay for them from their accounts. They can be viewed from their own login, or they can be sent to their email address as well as an attachment.

At TutorCruncher, we create and generate those by default. We pretty much already have those templates created based on the company's address, logo and email etc. Here’s an example of a basic layout of the invoices that we generate

Companies can decide if they want to add additional text to those Invoice PDFs that get sent out as well. Sometimes they might want to have their own description of what’s included on the Invoice or to remind clients to double-check them etc. Here is where it’s displayed on the INV (Default Text)

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• ### Be concise

It’s really important that potential investors can understand what your business is all about from a quick glance at your plan. Make sure you include a summary of your business, and how it will make money right from the start using simple language throughout.

• ### Be specific

Being specific is just as important as being concise. The details will help you dive deeper into how you will actually deliver on your plan and promises.

• ### Know your market

A big part of knowing whether your business will be successful is understanding your audience. Make sure your plan is clear about your target market and that you have chosen them based on solid evidence. 

• ### Know your finances

If your business isn’t going to make any money, it won’t be successful so you need to be very clear on how you will make a profit. Your tutoring business plan will be incredibly useful when it comes to securing loans and investments if needed.

While starting, a business plan can serve as a plan of action. It is unlikely that you immediately want to secure loans or funding when starting, but creating a business plan can significantly clarify your next steps. Having guesstimates in your forecast can be risky in the long run, which means having experience in predicting your financial future might make forecasting more dependable. To get that experience, you can start with a business plan. Here's more information on setting up a business to check out.

Asking someone to commit to your tutoring business and sharing your passion before knowing the ins and outs is like asking them to buy a house without checking it out in person first. The spontaneity might seem fun at first but it is a huge commitment that needs a thorough evaluation. Using a business plan will help you convey your vision succinctly and show every relevant point to a potential partner.

A joint venture is an agreement between companies to share the work and the profit and have the same or similar goals. As a tutoring business, you could have this agreement with non-profit organisations or aided educational institutions. A business plan is a handy tool in this case to relay not just the vision of your business, but also all required information, like your projected profit and loss, your sales tactics, and anything else you might feel is relevant.

A good and well-written business plan will summarise your business’s history and background, which you will need to successfully communicate to banks and investors and secure financing. It is your opportunity to convince investors that your business will be a high-yield investment for their money. Lenders will want to see the actual potential in your business. Every detail from your marketing strategy to financial projection has to be presented to them to showcase that potential. This will be best done with a business plan.

Now that you have some in-depth knowledge about crafting a tuition business plan, here are 5 mistakes you should avoid to make your business plan foolproof:

• Every statistic and detail in your plan should be based on realistic data. Your plan should not have unrealistic financial projections. 
• Do not be inconsistent, your plan should quote consistent stats and have solid, unidirectional strategies.
• Be clear about what your business plan is. A business plan is not a detailed and defined budget. While a budget is part of it, the business plan is more than just your income and expenses. 
• Do not include too much information. The purpose of your plan is to be concise and to focus on the key elements of your tutoring business. 
• Make sure your plan is proofread multiple times. Include your team in the process. 

Wrap Up & Conclusion

Putting together a business plan for your tutoring company is a long but worthwhile endeavour. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the tutoring industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful tutoring business. If you have any questions on getting started or setting up your tutoring business get in touch with us here at TutorCruncher, we’re here to help!

We build business management software for tutoring companies. Whether you are a small team or an established company, we can help you give your clients a 5-star service while spending less time on administration.

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BUSINESS STRATEGIES

How to create a tutoring business plan

• Jeremy Greenbaum
• Sep 7, 2023

Crafting a tutoring business plan isn't just about putting words on paper. It's about designing a blueprint that outlines your aspirations, strategies and financial forecasts for starting your tutoring business.

When starting a business , especially when starting a service business , it’s crucial to take the time to construct a solid business plan. Keep reading for tips on how to develop your own plan for success. Also check out these service business examples to help you get started:

Ready to take your tutoring business online by making a website ? Test drive Wix’s website builder .

Benefits of creating a tutoring business plan

Creating a comprehensive business plan is particularly important in the education sector because of the one-on-one, personalized nature of tutoring services. Your plan can help you articulate your unique teaching methodologies, learning objectives and student engagement strategies. This clarity not only assists in building a strong foundation for your business but also establishes credibility and trust among potential students and parents.

A comprehensive and clear business plan additionally plays a pivotal role in attracting funding or other partners. Potential stakeholders will want to see that your tutoring business is well-thought-out and is positioned for success. The financial projections and growth strategies outlined in your plan provide a realistic overview of your business's profitability and expansion potential.

All in all, a well-crafted plan enhances the chances of being successful in the education space and your ability to meet the needs of various students.

As you build your tutoring business plan, here are the six primary sections to keep in mind:

Executive summary

Business and domain names

Market analysis and research

Operations plan.

Marketing and advertising plans

Financial plan

01. executive summary.

The executive summary serves as a concise overview of your tutoring business plan, encapsulating its key components. It outlines the vision, mission, target market, competitive advantage and financial projections for your tutoring business. Writing a clear executive summary for a tutoring business involves succinctly conveying your unique approach to education and demonstrating how your services meet the needs of students and parents.

Example of an executive summary: “Welcome to InspireLearn Tutors, a tutoring service dedicated to empowering students to achieve academic excellence and personal growth. Our mission is to provide personalized and engaging educational experiences that foster a love for learning and equip students with lifelong skills. With a team of passionate and qualified tutors, we offer a range of subjects and study techniques tailored to each student's learning style. At InspireLearn Tutors, we believe in nurturing curiosity and building confidence, ensuring students thrive in their academic journeys.”

02. Business and domain names

Choosing the right business name is essential for brand identity and recognition. The name should reflect your tutoring philosophy, convey professionalism and be easy to remember. Use a business name generator for inspiration, brainstorming names that resonate with your educational values and core audience.

In the same vein, when selecting a domain name , prioritize simplicity and relevance. Avoid complex spellings or excessive hyphens. Verify that your chosen domain name is available and secure it promptly. For instance, if your tutoring business is "InspireLearn Tutors," a suitable domain name could be "inspirelearntutors.com."

Once you’re landed on an appropriate business name and legal structure, make sure to register your business .

03. Market analysis and research

Include a comprehensive market analysis to gain insights into the tutoring industry and your target market. Research local educational needs, competition and trends. Understand students' and parents' preferences, pain points and expectations from tutoring services. This information will guide your business strategy, helping you tailor your services to meet specific demands and to stand out in a competitive market.

04. Operations plan

An operations plan outlines the practical aspects of running your tutoring business effectively.

Location and premises: Choose a convenient and safe location for in-person tutoring sessions or consider offering online options for broader accessibility. Design your tutoring space for comfort and focus, with ample lighting and appropriate resources.

Equipment: Invest in educational materials, technology and tools to enhance the learning experience.

Staffing: Hire qualified tutors who share your educational philosophy and possess excellent communication skills.

05. Marketing and advertising plan

The "marketing and advertising plan" section of your business plan shares how you plan on reaching and engaging students. It outlines concrete strategies, such as the ones listed below, for drumming up attention around your tutoring program:

Online presence: Develop a business website (EduVisionTutors.com) to showcase your services, tutors' profiles and success stories.

Social media platforms: Utilize platforms like Instagram, Facebook and LinkedIn to engage with students and parents, sharing informative content.

Content strategy: Create blog posts, videos and study resources that showcase your expertise and provide valuable insights.

Referral programs: Offer incentives for current students or parents who refer new clients, leveraging word-of-mouth marketing.

Branding: Use a logo maker to generate a logo for your tutoring services, plus flesh out the messaging and other visual components of your brand.

06. Financial plan

The financial plan is a critical component of your tutoring business plan, detailing how your business will generate revenue, manage expenses, achieve profitability—and, if needed, raise money . It provides a comprehensive overview of your business's financial health, including startup costs, revenue projections, expenses, funding sources and more:

Startup costs: Outline the initial investment required to launch your tutoring business. This includes expenses such as curriculum development, tutoring materials, technology, marketing, legal fees, office setup and any other essential expenditures.

Revenue projections: Estimate the potential income your tutoring business can generate. Calculate your projected revenue based on the number of students you anticipate, the services you offer and your pricing structure. Consider offering different packages or services to diversify your revenue streams.

Expenses: Break down your monthly and annual operating expenses. This includes costs for tutor salaries, rent (if applicable), utilities, marketing efforts, technology subscriptions, materials and other ongoing expenditures. Accurate expense estimation is crucial for effective financial planning and ensuring your business remains sustainable.

Funding sources: Detail how your tutoring business will be funded initially. Specify the contributions from personal savings, loans, investors, grants or any other financial sources. Having a clear understanding of your funding sources helps you allocate resources effectively and manage your finances responsibly.

Profitability: Outline the projected timeframe for your tutoring business to become profitable. This timeline depends on factors like student enrollment, pricing strategy, expenses and market demand. A realistic profitability timeline helps you set goals, make informed decisions and measure your business's financial success.

Financial management: Describe how you will manage your business's finances. This includes setting up a dedicated business bank account, tracking income and expenses diligently, using accounting software and implementing financial controls to ensure financial stability and compliance.

Contingency plans: It's essential to include contingency plans in your financial section. Anticipate potential challenges or changes in the market that could impact your financial projections. Having backup strategies in place ensures you're prepared to navigate uncertainties and make necessary adjustments.

Sample tutoring business plan: EduBoost Tutors

EduBoost Tutors is committed to empowering students with personalized learning experiences that foster academic growth and confidence. Our mission is to provide top-notch tutoring services that inspire students to excel in their studies and realize their full potential. With a team of experienced educators and a student-centered approach, we aim to create a positive impact on the educational journeys of our students.

Company and domain names

Company name: EduBoost Tutors

Domain name: www.eduboosttutors.com

Choosing a compelling name is integral to building a strong brand identity. EduBoost Tutors signifies our dedication to enhancing students' learning capacities. The domain name further aligns with our brand and is easy for students and parents to remember.

Our research reveals a growing demand for personalized educational support. Parents and students are seeking tailored tutoring services that address individual learning needs. By understanding the local education landscape, we are well-positioned to offer relevant and effective tutoring solutions.

Location: We will operate from a centrally located tutoring center equipped with comfortable spaces for one-on-one sessions and group workshops.

Premises : Our premises will include dedicated study areas, resource libraries and state-of-the-art technology for interactive learning.

Equipment: We will invest in curriculum materials, digital resources, computers and interactive displays.

Staffing: Our team will consist of qualified tutors with expertise in various subjects, ensuring a well-rounded educational experience.

Marketing and advertising plan

Online presence: Develop a user-friendly website (eduboosttutors.com) that showcases our services, tutor profiles and student success stories.

Social media: Engage with students and parents on platforms like Instagram, Facebook and X, sharing informative content and educational tips.

Content strategy: Provide regular blog posts, videos and study guides to demonstrate our expertise and offer valuable resources to students.

Local partnerships: Collaborate with schools and educational institutions to establish our presence and offer supplementary support.

Startup costs

Tutoring materials: $3,000

Website development: $1,500

Marketing initiatives: $1,000

Staff training: $1,000

Premises setup: $5,000

Total startup costs: $11,500

Revenue projections (year 1)

Number of students: 40

Average monthly fee per student: $250

Total monthly revenue: $10,000

Total annual revenue: $120,000

Expenses (monthly)

Tutor salaries: $5,000

Marketing expenses: $500

Premises maintenance: $300

Software subscriptions: $200

Miscellaneous: $200

Total monthly expenses: $6,200

Initial funding will come from personal savings and a small business loan of $7,000.

Profitability timeline

We anticipate achieving profitability within the first year, driven by consistent student enrollment and efficient cost management.

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Online Tutoring Services Powerpoint Presentation Slides

The COVID-19 pandemic has affected every essential activity, but the worst impact has been on educational institutions and students. Learning is the essence of holistic development for the children of every age group. Therefore, emerges the need to generate innovative solutions for the continuance of effective teaching. SlideTeam presents Online Tutoring Services PowerPoint Presentation Slides that allows you to showcase your technology-driven expert services and garner the attention of your audience. Promise your prospective customers an affordable and quality education in the cover letter of this attractive PPT visual. This online education PPT layout helps you in creating a perceptible presentation on the subject-matter that engages the audience positively. Elaborate on the technical requirements to ensure a smooth training session with the assistance of this teaching services PPT design. Address the frequently asked questions to eliminate any confusion regarding online classes by taking the aid of this invigorating PPT slideshow. Employ our virtual learning PPT presentation to develop a strategic plan for effortless customer engagement with your content. Use this e-school PPT graphic to exhibit various platforms like skype, cloud storage, and youTube through which your company dispenses its services. Mention characteristics like in-depth knowledge, enthusiasm, communication skills, constructive feedback, and flexibility of the tutors to build confidence in your prospective customers with the assistance of this PPT deck. Build a positive rapport with your clients and investors with this e-learning PowerPoint slide. The slideshow lets you create a visually-appealing proposal for your expert coaching services. Use this skill development PPT theme to break-down the cost changing factors according to all the elements involved. Convey your mission, vision, and goals clearly and in a simplified manner with our professionally created online learning services PPT presentation. Download this PowerPoint deck and create an informative presentation outlining your company's background, awards, and achievements.

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Presenting our online Tutoring Services PowerPoint Presentation Slides. This is a 100% editable and adaptable PPT slide. You can save it in different formats like PDF, JPG, and PNG. It can be edited with different colour, font, font size, and font type of the template as per your requirements. This template supports the standard (4:3) and widescreen (16:9) format. It is also compatible with Google slides.

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Content of this Powerpoint Presentation

Slide 1 : This slide introduces Online Tutoring Services. State Company name, Client name, Submission date, and User assigned. Slide 2 : This slide displays Cover Letter for Tutoring Service Proposal Slide 3 : This slide displays Table of Content of the presentation. Slide 4 : This slide represents Client Requirements and Solutions for Online Tutoring Service. Slide 5 : This slide is continued with Client Requirements and Solutions for Tutoring Service. Slide 6 : This slide showcases Online Tutoring Platforms Service. Showcase various services here. Slide 7 : This slide is continued with Online Tutoring Platforms Service. Slide 8 : This slide showcases Additional Skills for Online Tutoring. Showcase relevant skills. Slide 9 : This slide showcases Our Online Tutoring Service Programs for Personal Training. We have a few different types of programs including homework help, enhanced learning & our homeschool, program Slide 10 : This slide showcases Average Online Tutoring Service Prices. Mention the prices for private tutor, Online tutoring and Tutoring centers. Slide 11 : This slide shows Students Assessment for Tutoring Service Slide 12 : This slide represents The Best Online Tutoring Service: Summed Up Comparison Table. Slide 13 : This is About us slide. Write in detail Company history, its Vision, Mission and Goals. Slide 14 : This is Our Team slide with names and designations. Slide 15 : This is also Our Team slide with names and designations. Slide 16 : This slide displays Client Testimonials. Slide 17 : This slide displays Client Testimonials. Slide 18 : This slide depicts Terms of Agreement Online Tutoring Service Proposal. Slide 19 : This slide shows Next Step in Tutoring Service Proposal Template Slide 20 : This is Contact Us for Tutoring Service Proposal Slide 21 : This is Icons Slide for Online Tutoring Service Proposal Template. Slide 22 : This slide is titled as Additional Slides for moving forward. Slide 23 : This slide displays Our Vision, Mission & Goal for Tutoring Service. Slide 24 : This slide shows Timeline Process. Slide 25 : This is 30 60 90 Days Plan slide. Slide 26 : This slide displays Roadmap process.

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How to Start a Tutoring Business

A tutoring business offers one-on-one or joint learning sessions for specialized subjects, such as mathematics, science, accounting, engineering, and more. If you are considering starting your own tutoring business, follow our easy steps to determine viability and get your business off the ground.

How to Start a Tutoring Business — Checklist Download

Download our free tutoring business checklist in PDF format.

In 2019, the United States tutoring service industry brought in total revenue of $608 million , with the average tutor earning between $20,000.00 and $85,000.00 per year, depending on their chosen subject(s) and tutoring services.

In addition, the tutoring industry has grown exponentially in the last six years , increasing by popularity with 6.9% between 2014 and 2019. This growing interest in tutoring businesses has attracted entrepreneurs across the world, ultimately helping the global tutoring industry reach the $100 billion mark in 2018.

Tutoring Business Plan — Free Template

Download our free tutoring business plan template in MS Word format.

How to Start a Tutoring Business:

In this detailed guide, we will show you all the steps you need to follow in order to successfully start a tutoring business.

Do research on the tutoring industry.

Research essential questions about the tutoring industry..

A few questions you should be asking include:

• What does the current market in my area look like?
• What niches do local tutoring businesses cover?
• Is there a need for my specific niche?
• Is there room for profit?
• What do local tutoring businesses charge?
• Will I work from home or an office?
• Do I have the proper supplies and material?
• Will I travel to students?
• Will I need to hire tutors to keep up?

Approach local tutoring business owners.

Before setting up a tutoring business, scope out the competition. Once your business is up and running, these are the businesses you will need to keep up with. Find out all you can about their services, prices, and customer base. More importantly, this step will allow you to determine a way to help your business stand out from the rest.

Interview current and new clients.

Depending on your experience in this field, it's wise to ask current and potential clients questions about your services. Find out how you can improve and what works for your current students. In addition, ask potential clients about their experiences with other tutoring businesses, as well as what they would expect from a good tutor.

Determine your business growth potential.

Certain factors can affect your growth potential, such as location and overpopulation in the industry. If your area already has a large number of tutoring services available, your business could get lost in the crowd.

Read about the tutoring business.

Your research should include additional reading as well. Numbers and statistics may be great for determining the likelihood of your business success in your location, but are you prepared as well? There is always room to learn more about the tutoring industry and books are a great way to unlock new tutoring strategies and services.

Best books to read before starting a tutoring business:

• How to Start a Home-Based Tutoring Business (Home-Based Business Series) by Beth Lewis.
• How to Start a Tutoring Business: A guide to starting your own tutoring business by Tutor Cruncher.
• How to Make Over $4,000/Month Tutoring by Mark and Erik Krupp.
• Smart Marketing For Tutors: A Step-by-Step Guide To Building Your Online Tutoring Business Using Free Marketing Tools by Victoria Olubi.
• The Novice Tutor: Answers to Your Questions About Running a Successful Tutoring Business by Adrianne Meldrum and Killian Piraro.

Find your target market.

Who will you be offering your services to? While deciding on your niche, you should have thought about who you will serve. Will you focus on college students or high school graduates? Or both? Once you've decided on your target market, determine the need for your services in the area.

Defining your ideal target market will be beneficial in the long run, as it will help determine your services, costs, advertising requirements, and materials needed. For example, if you plan on tutoring school children, especially those under 16, then consider their parents as primary customers.

Start by listing important points about your target market:

• What time will they be at school or work?
• What are their traveling constraints?
• Do they expect home-based tutoring?
• How often will they use your services?
• What are they willing to pay for your services?
• Do they want one-on-one sessions or group sessions?

Get educated.

Formal training will provide you with advanced knowledge of key tutoring strategies and methods, which will enhance your professional credibility. In the United States, you generally don't require a specific qualification to become a tutor. However, there are multiple training options for tutors to consider.

If you're an individual with a bachelor’s or graduate degree in a high demand field, such as English, mathematics or science, entering a tutoring certification program will be enough to get you started. However, if you wish to work in a classroom, formal training in education will be your next step.

Decide what type of tutoring business you want to open.

Research working out of your home..

If you decide to start a home-based tutoring business and work from home, you will save money on rent and travel expenses. However, this means that clients will need to travel to you which could be difficult for students without a car.

The size of your home also limits the number of students you can teach at a time.

Research working from a formal environment.

If your business grows, you may want to rent an office space where you can create a classroom for more students. Not only will you be able to teach more students at a time, but you could also be based near schools or along public transport routes.

Pick a location space near the main street. This could help potential clients find you better. Make sure your location offers good parking, which might be required for licensing and zoning purposes.

Visit different locations. Don't just visit one or two locations. Be patient while searching for a location by touring different areas in your community.

Choose a location near educational facilities. Consider a location near a school, college or university, as your target audience will mainly be students.

Think about tutoring online.

Online tutoring services have gained popularity due to widespread use of technology like free voice over internet services and video sharing platforms like YouTube. Parents and students alike have become comfortable with online tutoring. With this option, you get to work with students from diverse cultural backgrounds and geographic territories.

Decide on a focus area for your services.

Tutoring is no longer just the test preparation many families and schools have come to know. In today's market, there are different options to consider that have been established to help clients at different academic stages.

These stages include, but are not limited to:

• Pre-K tutors.
• Elementary tutors.
• General tutors.
• Special education tutors.
• Speciality subject tutors.
• Test-prep tutors.
• Homework tutors.
• Admissions and application tutors.
• Student tutors.
• Language and ESL tutors.

Create a business plan.

Write an executive summary..

This section should describe your business, define your mission, and highlight what makes your business stand out.

State your legal structure.

You should let investors know which legal structure you plan to register as. Many businesses choose to register as an LLC.

Describe your launch.

Explain how you plan to launch your business. For example, you could offer discounts on lessons or offer a free lesson when clients pay for several lessons at once.

Explain your source of revenue.

While simple, it should be made clear that you charge clients per lesson or offer a discount for multiple lessons (or multiple children in a family).

Download our tutoring business plan template to see an in-depth breakdown of how to write a section on your finances.

List essential staff members.

List the job titles of any staff members that will need to be working for the business at its launch. Name yourself as the owner and head tutor, for example, and mention any other tutors you will be working with.

Describe your target market.

Explain who they are and include some information from your market research about the target market's preferences.

Describe your marketing strategy.

List the promotional outlets you plan to use to advertise your business.

List your competition.

Name your closest competitors and describe how your businesses are similar and how your business is unique.

Describe your finances.

List your startup expenses, sources of funding, and revenue projections.

Explain your future plans.

Describe how you will expand your business in the future by hiring more tutors or offering more subjects.

Form your tutoring business.

Choose your business name..

The name you operate under will represent your services to the outside world. Therefore, it's important to evaluate your different business name options before officially choosing a name. Your business name should be catchy, memorable, and accurately describe the services you will be offering. Write down your name ideas and ask people for their opinion on your ideas.

Before you settle on your name, check with the Secretary of State's (SOS) office in your state to ensure that your business name is not already registered with the SOS.

Choose your business structure.

There are four common business structures:

Sole Proprietorship : owned and run by one individual. No legal distinction between the owner and the business.

Partnership : a legal agreement between two or more individuals who share management duties and profits.

Limited Liability Company (LLC) : offers the protection of a corporation but only the owners pay taxes on business profits.

Corporation : the more formal structure available which includes offices and a board of shareholders.

With a partnership or sole proprietor , you will have an easier time filing your taxes. However, if you choose a corporation or LLC , you are able to limit your liability for anything that happens while you manage your business.

Each business structure offers its own advantages and disadvantages. Your ideal business structure should provide you with the best liability protection, and tax and financial benefits.

Obtain an EIN.

If you plan on hiring employees for your tutoring business, you will need a federal Employer Identification Number (EIN) from the IRS. Also known as Federal Tax ID Number, the number is used to recognize taxpayers who are obligated to file different business tax returns.

To get an EIN, you can complete an online application on the IRS website. There is no filing fee. If you are unable to apply online, you can also get an EIN by mail or fax.

Open a bank account.

To ensure that your personal and business finances stay separated, your best option is to open a business bank account. Opening a bank account will also help with clean audits, and present professionalism.

Contact your local banks for the different business accounts available.

Some of the best banks for small businesses include:

• Wells Fargo.
• Popular Bank.

Get insurance.

As a business owner, it's essential that you research the different types of insurance suitable for your specific business and industry. Because every business is different, you may require different types of insurance.

Consider the following:

Business interruption insurance.

Liability insurance.

Property insurance.

Health insurance.

Cyber insurance.

For tutoring businesses, liability insurance is a popular choice. Liability insurance will help provide peace of mind to parents and the business owner, ensuring that the business is protected financially for any situation that may occur.

Professional indemnity insurance is another option for tutors to consider. It will be able to pay out if a client claims they’ve made a loss because of your services. For example, if you haven't covered a part of the syllabus and your client/student doesn’t perform well on their exams because of it, your client may decide to take you to court, which is where your professional indemnity insurance would be beneficial.

For more information on which types of insurance are required based on your type of tutoring business, visit your local municipal government office.

Obtain the applicable licenses and certifications.

In order to legally operate your business, you may need to obtain special licensing and certification. Failure to obtain certain certificates and licenses can result in substantial fines, or even force you to close down your business.

State boards of education often require tutors working in school environments to be licensed. However, private tutors may establish their own rates and advertise their services to the public. These private professionals are not regulated or licensed. Therefore, private tutors do not have to meet any additional training requirements beyond their chosen credentials.

Because tutoring is not regulated at a state or national level, both entry-level and experienced tutors have the option to choose from a range of tutoring certification programs to develop new skills and become certified.

If you wish to study further and enhance your skills as a tutor, you may pursue basic and advanced certifications from the National Tutoring Association and the College Reading and Learning Association .

Comply with necessary tax laws.

You will have to manage differing tax responsibilities, depending on the type of legal business structure you choose. When selecting your business structure, you should have educated yourself on the forms you will need and the types of taxes you must pay.

With a partnership, S-corporation, and multiple member LLC , owners must report a share of the business taxable earnings on their personal returns. They are also responsible for paying the income tax on it.

With a sole proprietorship or single-member LLC , your business will have to file business taxes as a sole proprietor. Sole proprietors use a Schedule C to separately report revenue, deductible business expenses, and net profit.

With a corporate structure , your personal tax returns will not be affected as your business is seen as a separate legal entity that reports revenue and expenses with a Corporate Tax Return, Form 1120 . Your business will have to pay the tax on profits, which are taxed at special rates that only apply to C-corporations.

If you plan on working as an independent contractor, the Internal Revenue Service will consider you a small business owner. To ensure you keep track of your tutoring profits and expenses, record all transactions throughout the year.

Establish an accounting system.

To ensure that your tutoring business is operating in the best financial state, you may need to obtain accounting software or hire an accountant.

Accounting software. This software will help simplify accounting processes, such as expenses, tuition, payment processing, and reporting. There is a range of free accounting software.

Hire an accountant. It's wise to research the benefits of this option. They allow for fewer mistakes and less time worrying if your taxes were in order.

Obtain funding.

Ask friends and family..

Prepare a business presentation and ask family and friends if they're willing to invest in your tutoring business.

Apply for a loan.

If you need more funding than you or your family and friends are able to afford, applying for a loan is a good alternative. Find out more about small business loans.

Start small. Consider starting small by offering home-based tutoring services. This eliminates the cost for location space, employees, equipment, and supplies needed for large groups of students.

Research Crowdfunding.

With crowdfunding, you will need to raise money by appealing to the online community. This option is often used in exchange for gifts, future products, or other small rewards.

Prepare your tutoring materials and supplies.

Buy stationery and find resources..

Before you start your business, make sure you are prepared for success by stocking up with the appropriate stationery, office supplies, and equipment. By creating an effective system and stocking up with the proper tools beforehand, you will be properly prepared for your first student.

Tutoring Materials:

• Calculators (if necessary).

Prepare your lessons ahead of time.

Start by preparing at least 3-4 lessons for each subject and level you plan on teaching before you officially launch.

For example, some of the most successful tutoring businesses offer their own learning handouts as marketing material for their business. Apart from including your contact details and business logo, a handout of personalized learning material also gives the impression that you are experienced and that your teaching style is student-friendly and effective.

Hire and train employees.

Evaluate your business size..

At first, you may choose to work alone as you will probably have a manageable number of students. If you think that hiring more tutors to cover a variety of subjects would be beneficial, you should look for suitable candidates.

Create job descriptions.

Once you have decided which employees you need, you should create job descriptions for each role to outline exactly what is expected.

Advertise your vacancies.

Post your job descriptions on online job boards, in newspapers, or on industry-specific social media groups.

Interview candidates.

After reading through applications, you should invite suitable candidates for an interview.

Prepare interview questions that are job-specific as well as questions that reveal the candidate's cultural fit to your company.

Hire suitable candidates.

If you find the right individuals to fill your vacancies, make them employment offers and draw up employment contracts. You can ask a lawyer to do this for you to ensure that the contract is legal.

Set your hourly rate.

Determine the going rate..

While studying your competition, you will get an idea of what to expect with pricing. Make sure you don't charge too low for your services, especially if you plan on traveling and creating your own materials. Your rate should be fair and match your quality of work and experience.

There are many factors that will affect your hourly rate. A general tutor charges between $17.00 - $45.00 per hour, depending on your location, education, and experience. If you have extensive experience and certification, you can charge up to $75.00 per hour.

Consider your travel expenses.

Do you plan on offering home-based tutoring or will you meet at a public location? As your location will play a major role in your business success, you should be prepared for the traveling expenses you may need to cover. For example, if you have three students in different parts of your area, you will need to consider traffic, time-constraints, and gas expenses.

For example, your average traveling time is 30 minutes for a round trip. This means a 1-hour session will require 1.5 hours of your time. So if you want to make $20.00 per hour for your tutoring services, you should consider charging $30.00 for that 1-hour session.

Consider the subjects you'll be teaching.

As some subjects are in demand, you may adjust your hourly rate according to the subject. If you are skilled in any of the subjects listed below, with the exception of English, you should contemplate setting your tutoring rate above the average for other tutors in your area with related experience.

Subjects that are in high demand:

• Mathematics.

Consider your qualifications.

The highest paid tutors are experienced, often charismatic people with prestigious degrees or certification. Generally, college students and individuals with minimal tutoring experience will charge less than the average rate.

Your cost of doing business, which includes materials, tool costs, transportation and office administration costs, should also be billed to customers in addition to your hourly rate.

Market your business.

Develop a marketing strategy..

Before you officially start your business, it's wise to invest in a solid marketing plan. Having the appropriate skills and acquiring the proper supplies does not mean customers will arrive in droves. Instead, you'll need to market your business. During the early stages of your tutoring business, you will need to rely on small scale advertising activities like fliers, word-of-mouth, or going door-to-door.

Your marketing strategy should be based on the image and values of your business. What message would you want it to convey to the public? To help sort out your different marketing ideas, compile a list of the services you're offering and what type of values your business will hold.

Approach educational organizations and businesses.

Distribute your business brochures and business cards at libraries, recreational spaces, PTA meetings, neighborhood get-togethers, colleges, etc.

Get a website.

All the important information about your business should be on your website including costs, location, policies, values, mission statement, services, contact details, and more. You can create a website with a website builder.

Open social media accounts.

Social media is an easy way to access thousands of potential clients. However, it does require constant updates and admin support. Furthermore, there are additional charges for advertising your business to larger audiences.

Form a Search Engine Optimization (SEO) strategy.

When clients search for "the best tutoring business near me," you will want your business name to appear in search results of the first two pages. To do this, you will need to invest in a proper SEO strategy and register your business with Google.

Host a grand opening.

In the tutoring profession, small tutoring businesses that are home-based start accepting jobs steadily, growing their customer base with each new client. However, if you plan on working from an official office space, a grand opening is a great way to attract new clients.

This will help create a celebratory atmosphere, attracting interested customers located in your area. Clients won't easily walk into your establishment on day one and immediately book your tutoring services. Therefore, you should be prepared to answers all the questions about your experience and offers.

Set a daily schedule.

Create a schedule for lessons and travelling..

As your business will require a lot of traveling and daily tutoring sessions with different clients, be prepared to follow a strict schedule. Your daily schedule will depend on the size and scope of your tutoring business. You don't want to arrive late for appointments or have to cancel because of scheduling conflicts. This will reflect poorly on your business reputation.

Your schedule should allow you enough time to set up your materials and travel to different clients, as well as ample time for additional processes, such as progress reports with parents or appointment scheduling.

Manage employee schedules.

If you are opening a major tutoring business, you will require additional employees. To prevent scheduling conflicts, ensure that all your tutors have their daily schedule. Consider different factors, such as employee leave, job estimations, available materials, part-time employees, employee breaks, and shift changes.

Tutoring Business Metrics: Hourly Rate

Knowing how to set a fair hourly rate for tutoring services will be a vital part of your business. Your rates will be the difference between success or failure, between making a profit and making a loss. Ultimately, it will help you to determine prices, what kind of discounts you can offer, and what type of services you'll provide.

It's important to note that your hourly rate may change with each job.

Establish how much you would like to earn in your first year. Let's assume you're starting out small and want to earn $45,000 by the end of your first year.

Determine the expected monthly income.

$45,000/12 months = $3,750 per month.

Determine the work schedule. For example, if you want to work 30 hours a week, a four-week month would be 120 hours a month.

$3,750 / 120 hours = $31.25 per hour.

Tutoring Supplies & Equipment:

Note: Your cost for supplies and material will depend heavily on the number of students using your tutoring services.

How do I register a tutoring business with Google?

• Log into your Google account.
• Go to google.com/services and click Google Places.
• Add your tutoring business.
• Enter your business's phone number, address, or company name.
• Verify your business.
• Select your method to confirm your business information. Google will send a PIN.

Formal certifications and requirements:

Advice for Starting a Tutoring Business:

Tutoring Logos

How much does it cost to start a tutoring business?

It costs between $100.00 and $25,000.00 to start a tutoring business, depending on the scale and services provided by your business.

What qualifications do I need to become a tutor?

In the United States, you generally don't require specific qualifications to become a tutor. However, the basic requirement is a high school diploma and valid experience in a similar role. Tutors are encouraged to complete voluntary certification programs to sharpen their skills and establish credibility.

Where can I obtain a tutoring certificate?

You can obtain tutoring certificates from the National Tutoring Association , College Reading and Learning Association , and other certifying bodies available in your state.

How much does a tutor earn?

A tutor can earn between $20,000.00 and $85,000.00 a year, depending on the size, services, and scale of the business.

What skills and qualities do I need to be a tutor?

• Listening skills.
• Adaptability.
• Positivity.
• Creativity.

How many tutors are employed in the United States?

In the United States, there are over 1.2 million teaching assistants and tutors employed. According to BLS, that number is set to increase to 1.3 million by 2024.

How do I become a tutor?

• Graduate from high school.
• Complete additional tutoring training and education.
• Join a tutoring association.
• Obtain tutoring certification.
• Get licensed.

How much does a tutor charge per hour?

A tutor will charge between $17.00 and $45.00 per hour, depending on the services and scale of the business.

What online tools are used by tutors?

• Virtual classrooms.
• Online communication platforms.
• Online tutoring platforms.
• Online file sharing.
• Google Hangouts, Skype, Email, Google Docs, OneDrive, Dropbox.

Do you need a license to start a tutoring business?

No, you do not need a teaching or tutoring license to start a tutoring business. However, you may need to register your business and obtain a business license.

Do I need a license to be a private tutor?

No. Private tutors are professionals that are not regulated by state education boards. Therefore, they do not have to complete additional training beyond their chosen credential.

Is there insurance for a tutoring business?

There is no tutoring business insurance specifically, but liability insurance and professional indemnity insurance are popular choices for protecting a tutoring business.

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