11 key tips to starting a private tutoring business in 2024

If you enjoy tutoring and teaching others and feel like the next natural step is turning it into a scalable business, 2024 is probably the right time for you to start. Making a business out of something you love to do is an excellent way to ensure its success. You have a passion for helping students already, so why not get paid for what you enjoy doing?

Overwhelmed by where to start? Workee experts get it and we’re here to support you. We have ample experience in working with tutors and we understand the intricacies of running and managing an online business. With correct guidance and knowledge, you can promptly launch a lucrative tutoring business.

To assist you, we have compiled a straightforward, step-by-step guide for starting a tutoring business, crafted to help you smoothly transition from an idea to a flourishing business. Let’s start by exploring why online tutoring is a smart business venture in 2024.

4 reasons why private tutoring is a great business opportunity in 2024

The online tutoring industry is blowing up. According to recent reports, the global online tutoring market is estimated to reach $90,710.5 million in the year 2030. The market is anticipated to register a CAGR of 17.6% during the forecast period (2021–2030).

1. You are in control of your income

According to a McKinsey report, the leading cause for educators leaving the teaching profession is inadequate compensation. This report highlights that nearly 48% of teachers are contemplating leaving their roles due to financial dissatisfaction, while an additional 42% have already departed the field for this very reason. By managing your own private business, you gain more direct control and autonomy over your financial earnings and overall financial health, empowering you to address this key concern more effectively.

2. You don’t have to break the bank to set up an online tutoring business

Starting an online tutoring business is generally more affordable than establishing a brick-and-mortar school, especially regarding initial costs and ongoing expenses. Creating your own online tutoring business can be straightforward and cost-effective, particularly if you opt for an efficient solution. The primary step is to select a suitable tutor management solution. The investment cost largely depends on the features and functionalities you choose to include. It's crucial to integrate both standard features that are well-regarded in the industry and unique offerings that can serve as the unique selling point of your tutoring platform.

3. Online private tutoring is quite convenient and flexible 

A major reason why tutoring is gaining popularity is due to the scalability and flexibility it provides. Unlike a traditional brick-and-mortar business, which requires constant physical presence, an online tutoring business can be operated from anywhere. This level of flexibility affords you the freedom to live and work from any location in the world, making it an ideal choice for those who need to balance their work schedule with other commitments.

4. Online tutoring provides you with multiple ways to make money

The increasing popularity of online tutoring offers numerous opportunities for substantial earnings. In this domain, you're not confined to individual sessions; you have the freedom to conduct group classes, offer specialized courses, and even develop and market educational materials. Such flexibility and a wide array of options pave the way for various income streams, significantly boosting the prospects for a thriving and financially rewarding business.

How to start a private tutoring business 

Tip 1: Ensure that you have the right skills and a unique selling point

Starting a business requires a lot of planning, and this is especially important for a tutoring business. Before you start, make sure you have the right skills, knowledge, and qualifications.

Think about what you're good at that can help students, like a certain subject or working with particular age groups. Also, check if you have what it takes to run a business successfully, including providing learning materials and managing your time well.

Once you understand what you can do, make a detailed plan for your tutoring business. With some creativity, hard work, and careful planning, you can start a successful tutoring business.

Tip 2: Do due diligence on your target market

Before you start finding clients, it's important to research your market to set yourself up for success. Spend time figuring out who your customers are, what they need, and how much they're willing to pay. This will help you create a strong business plan.

Knowing your target market lets you customize your services and advertise them in a way that attracts clients. Doing good research to understand your customers is essential for starting a successful tutoring business.

Tip 3: Research your local competition 

Another important tip is to check out the local tutoring market. Look into the types of tutoring services offered in your area, the subjects they cover, and their prices. This will help you stand out from competitors.

Understanding what works and finding gaps in the market can improve your chances of success. Find answers to the following questions:

• Who are the main competitors?

• What services are they offering?

• What types of customers are they attracting?

• How can you be different and better?

Also, see how much other private tutors charge and if there are subjects not being taught. This will give you an idea of what you can offer that others don't.

Tip 4: Create a realistic and attainable business plan 

Once you've completed your market research, the next step is to develop a comprehensive and attainable business plan for your private tutoring venture. Creating a well-thought-out plan is crucial as it helps you anticipate and prepare for any potential challenges you might face when launching your business, allowing you to allocate your budget more effectively.

Keep in mind that your business plan or model will likely evolve as your business grows and adapts to the market. However, having this initial plan is essential as it lays the groundwork for your venture. It acts as a roadmap, guiding you through the early stages of your business and helping you stay focused on your goals.

In your business plan, consider including details such as your business objectives, target market, pricing strategy, marketing and advertising approaches, and financial projections. It’s also a good time to start thinking creatively about your brand identity. This includes deciding on your business name, designing a logo, and establishing branding guidelines that reflect the ethos and values of your tutoring service.

Furthermore, outline the operational aspects of your business, such as the technology and resources you'll need, your approach to customer service, and how you plan to manage administrative tasks. Consider including a contingency plan for unexpected situations or changes in the market.

Tip 5: Develop your curriculum 

At this point, you should already know what subject(s) you are going to teach. You also need to decide how long each session should last and how you will break topics down into short, easily digestible sessions. 

Keep in mind that different students may have different needs, so it’s important to create a flexible curriculum that can accommodate those needs. Using a lesson plan generator to create your lessons is a good idea. Also, ensure you are up-to-date with current teaching trends and familiarise yourself with the various teaching methods for different learning styles. 

Tip 6: Establish rates that reflect your skills and expertise

Take into consideration how much experience you have, what certifications you hold, and the amount of time you’ll need to dedicate to each session. Your rate should reflect all these factors. 

Remember that experienced tutors will typically charge more than those without any teaching qualifications or industry connections, so value yourself appropriately and don’t underestimate the worth of your services.

Doing some research on competitive prices in your area can help inform your decision so that you can price competitively while still making sure that your rates represent the quality of service you provide. Here are a few things you might want to keep in mind:

• What pricing model do you plan to choose? Do you want to create a high-cost/low-volume model, or are you looking to make your money based on quantity? You could also consider a hybrid of the two models.

• Will your prices vary? As most agencies charge different amounts for different subjects, you might want to vary your prices too. For most businesses, more specialized subjects will be more expensive. If you do have access to tutors who can teach niche subjects, you could consider charging a premium for their lessons.

• What are your operational costs? Most importantly, you need to make sure that your charge rates will cover overhead charges. Creating a spreadsheet or using CRM software to keep track of expenses will allow you to learn what is the minimum amount you must earn to stay out of the red.

Tip 7: Create a professional website 

Now that you know who you are targeting, what services you are offering, and your rates are set, it's time to build your brand identity. This involves creating logos and branding materials such as websites or social media accounts that showcase who you are as a company. 

Additionally, this is also when you should decide on pricing strategies for your services, while average tutoring rates in your area are useful, potential customers may well pay more for a premium service or may want to take advantage of cheaper, shared lessons.

Want to create a professional, SEO-optimized website for your tutoring business? Try the Workee website builder now.

Tip 8: Set up your virtual workspace 

Create a virtual workspace that is conducive for both you and your students. 

Make sure the space is comfortable and has all the necessary tools to have successful lessons. Ensure that your internet connection is reliable, as well as having technology like screen sharing programs and video/communication systems so that both parties can collaborate more efficiently.

Depending on what subjects you plan on teaching, consider setting up any necessary equipment such as interactive whiteboards or computers with specific software installed. 

Tip 9: Invest in quality tutoring solutions

Running a business means having to focus on dozens of different things at the same time. Keeping on top of your schedules, billing, customer relations, etc can be overwhelming from time to time. However, there are lots of tools that can help!

All-in-one business management software, such as Workee gives you all the tools you need to run your business and help you stay on top of all areas of your business. Whether you need help taking secure payment, are looking to streamline your sign-up process through your website, or just want to spend less time on mundane admin work, Workee can help. 

Tip 10: Invest in marketing and advertising efforts to grow your customer base.

Since the tutoring market can be quite competitive, making sure your business is seen by lots of people is extremely important. You might want to consider implementing targeted advertising. The Workee Ads program, for instance, allows you to run advertisements for a minimal cost, helping you attract customers swiftly and efficiently. Run an advert for as little as $20 and you will gain customers in no time.

Tip 11: Foster a more positive reputation online and offline

Building a strong reputation is crucial for long-term success. Encourage satisfied clients to leave reviews on various platforms. You can use their positive comments on social media, review pages, and emails to market your services and grow your brand organically. Word of mouth will also do a lot for increasing your online presence if done correctly, as people like to hear recommendations from trusted sources. Engage with your community through educational workshops or seminars, contributing to local events, and maintaining an active, helpful presence on social media. Remember, a good reputation leads to referrals and repeat business, which are invaluable for growth.

Conclusion

Starting a private tutoring business in 2024 is an exciting prospect. With the right guidance, tools, and dedication, you can transform your passion for teaching into a thriving business. Remember, success in tutoring comes from not just academic excellence, but also your ability to connect with students and adapt to their needs.

Ready to leap? Workee is here to support you every step of the way. Our comprehensive suite of tools simplifies the management of your tutoring business, from scheduling and billing to creating a professional online presence. Take advantage of our resources, expertise, and community to make your tutoring business a success.

Ready to start your tutoring journey? Try Workee today and turn your passion for education into a rewarding business venture!

FAQs

1. How much do I have to invest to start a private tutoring business?

Investment is relative. However, the initial investment for an online tutoring business is generally lower than that of a brick-and-mortar business. It primarily involves costs for a tutor management solution, marketing, and any specialized tools or software required for your tutoring services.

2. What are some effective ways to attract my first clients?

Effective ways to attract your first clients include leveraging social media, engaging in community events, offering free or discounted trial sessions, and utilizing word-of-mouth referrals from friends and family.

3. How do I determine the right pricing for my tutoring services?

Research competitive rates in your area, consider your qualifications and experience and evaluate your operational costs. You might also consider offering different pricing tiers based on subjects, student levels, or lesson duration.

4. Can I run my tutoring business entirely online?

Yes, with the advancement of digital platforms and tools, you can run your tutoring business entirely online. This includes conducting lessons, managing schedules, processing payments, and communicating with clients.