Starting an online tutoring business is a great way to make money by helping others learn. Many students seek extra help to improve in school, so tutoring is in high demand. This increasing need for tutoring has made the tutoring industry huge.
The industry’s value is already over $55 billion globally. With the rate at which the tuition demand keeps increasing, experts believe it could reach an impressive $100 billion by 2030.
Starting your online education business allows you to teach students from anywhere, set your own hours, and even work from home. This article will explain the main things you need to know to start.
How To Start an Online Tutoring Business
Starting an online education business (tutoring) can be a great opportunity. This is especially true since the demand for remote tutoring is growing fast. In 2022, the global online tutoring market was worth over $7.5 billion.
The number is expected to increase by about 15% annually until 2030. This means a lot of people need tutors. This is good news if you want to start tutoring online from home. The following are some steps to help you get started:
- Create the Right Environment: For your online sessions to be effective, you need a good setup. Find a quiet place in your home. Make sure it has good lighting and a plain, clean background. This will help you look professional and minimize distractions.
- Get Your Equipment Ready: To start tutoring online, you will need a few basic educational resources. Make sure you have a computer with a stable internet connection, a webcam, and a microphone. Good lighting can also help ensure your videos are clear. Some tutors even use extra audio or video equipment for better quality.
- Set Up the Software: Choose a video call platform to schedule sessions. You can send links and share your screen with students. There are some free platforms like Zoom, Google Hangouts, or Skype. These platforms are popular and easy to use. Google Docs is useful for sharing documents and making comments together. There is also Google Classroom, a tool that allows you to organize assignments and grades in one place. You might also think about getting virtual whiteboard software for your virtual classroom. It can help you explain ideas visually during your sessions. You can also get software that makes payment processing easy for you and your clients.
- Join a Tutoring Platform: An easy way to get started with tutoring is to sign up on a tutoring website. There are many platforms, like Chegg, Preply, and Skooli. These platforms help with the student acquisition process by connecting tutors with students. It also offers tools for scheduling, payment processing, and more. All you need to do is fill out details about your experience and the subjects you want to teach.
- Check Legal Requirements: Do you need a license to start a tutoring business? It depends. Depending on where you live, you may need specific licenses or permits to run a small business. These requirements vary by state, so checking what is required in your location is a good idea. Research websites that can help you determine what is needed based on your state.
6 Steps To Start an Online Tutoring Business
Many middle and high school students need online tutors. Many are preparing for things like college entrance exams, and many are learning the skills they will need for future jobs.
These students often need help in specific subjects like writing, interview skills, and organizing and study habits. Before starting your online tutoring business, you must know what you want to teach and who your students will be. The following are some steps to get you started:
- Pick the Subjects You Want to Teach: Curriculum development is essential. Think about your experience and what you are good at. Use that to plan the services you will offer. Decide which grade levels you want to work with: elementary, high school, college, or a mix. Lesson planning is essential. Determine which subjects you are most comfortable teaching, like Maths, English, or test prep. You should also decide whether to work with students locally or reach students in other countries.
- Choose a Business Model: Decide if you want to run your tutoring business yourself or create a business structure that gives you more protection. Running it as a sole proprietor is simple and has less paperwork. On the other hand, forming an LLC can protect your personal belongings if a lawsuit arises. Both options have benefits, so think about what suits your needs best. Once you decide, register your business.
- Get the Right Technology and Software: Make sure you have reliable teaching equipment. You will need:
- A computer with high-speed internet.
- A document camera, webcam, or digital whiteboard.
- Curriculum development.
- Access to apps and online platforms like Google Classroom and Quizlet.
- A customer relationship management (CRM) tool to help with client communication and payment scheduling.
- A tablet or digital drawing pad is needed if you teach subjects like maths involving writing.
- Set Your Pricing: Online tutors can charge anywhere from $20 to $100 an hour. The amount depends on the subject and their expertise. When you want to decide on your rate, consider the following:
- The amount of money you need to cover basic expenses like rent, food, and insurance.
- Your level of education and experience.
- How much time do you want off? Remember that you will not make money when you are not working.
- Plan Your Marketing Strategy: For student acquisition, you must find ways to promote your business. Below are some marketing strategies to reach your target audience:
- Create social media accounts for your business (TikTok, Facebook, LinkedIn, etc.).
- Set up a business website that uses SEO to help people find you.
- Attend local school events like parent nights or education fairs to meet potential clients.
- Join online parenting groups to start getting word-of-mouth referrals.
- Ask for testimonials from clients once you have worked with them.
- Create a Tutoring Contract Template: A contract helps clarify what you are offering and covers details like responsibilities and payment. While it may seem like extra work, a contract protects your business.
Top Advantages of Starting an Online Tutoring Business
Starting an online tutoring business has some significant benefits, especially now that more people are looking for flexible jobs that allow remote work, a trend that grew during the COVID-19 pandemic. Below are some of the main perks of running an online tutoring business:
- Flexibility: With online tutoring, you will teach in a virtual classroom only. You will not be tied down to a physical classroom. This gives you:
- The freedom to reach a bigger audience, no matter where they live.
- Control over your schedule so you can set hours that work best for you.
- The ability to balance work with other personal priorities can help you focus on making a positive impact on your students.
- Helping Underserved Communities: Online tutoring allows you to reach students who may not have access to specific resources, especially in rural areas or areas that do not have educational resources. Some benefits of this include:
- Reaching students who have trouble finding experienced tutors locally.
- Helping to close educational gaps by providing expert guidance through online tutoring platforms.
- Using e-learning and video calls to connect with students anywhere, making education more accessible.
- Low Start-Up Costs: Starting an online tutoring business does not require a lot of money. You mainly need a good marketing strategy to attract students. You also need lesson planning and a solid business plan to keep everything organized. Although these take time to develop, they do not cost much upfront.
Essential Requirements to Start a Tutoring Business
Although starting a business can feel challenging, setting up a tutoring business is more straightforward than most. Below is an essential guide that can help you get started:
- Choose Your Business Structure: Choose the type of business you want to run. Even if tutoring feels like a small side job, the government might still consider it a business. This means you will have to follow specific rules. A simple way to start is with a “sole proprietorship.” It is the easiest kind of business to set up. When you start working, the IRS automatically sees you as a sole proprietor. Later on, if your business grows, you might want to switch to a slightly more formal structure like an LLC (Limited Liability Company). This could give you certain protections.
- Pick a Name for Your Business: This is your chance to create a unique brand and stand out. If you run a sole proprietorship, your legal name will be your business name by default. However, you can also choose a different name, called a “Doing Business As” (DBA) name. You can do this if you want something catchier. Check that no one else has taken that name by looking it up on the U.S. Patent and Trademark Office website. To set up a website, check if that domain name is available.
- Register Your Name: If you decide to use a name other than your own, you will need to register it. This is usually done with your state or county office. The exact steps depend on where you live.
- Separate Business and Personal Finances: Try to keep your business money separate from your personal money as much as possible. Even if you are starting, this will help you stay organized, especially when it is time to file taxes.
- Create a Business Plan: Every business should have a basic plan. It is like a map that shows your goals and how you plan to reach them. Don’t worry if that sounds overwhelming; simple templates are available that can guide you through each step.
- Report Your Income: Always remember to report any income you make from tutoring. You will need to file taxes if you make $400 or more in a year. The good news is that you can deduct specific business costs from your income. This might lower the amount of taxes you owe.
Starting an online tutoring business can be a great way to make money while helping people learn. It might seem like a lot at first, but following the proper steps and choosing a good business model will be easier than you think. With hard work and a good approach, your online tutoring business can grow, and you will be able to impact students’ learning positively.