Top questions about starting a tutoring business

Tutors and teachers often have specific questions about starting a tutoring business. I had to do tons of research into starting and running a small business before I was ready to start my private tutoring business. Sometimes, my research led to even more questions instead of helpful answers. I wished I had someone to ask all my questions to, so I wrote up a Q&A for you with the top questions about starting a tutoring business.

Grouped by category, here are 13 topics people ask about when starting a tutoring business. Grab a cup of coffee, and let’s pretend we are at your favorite coffee shop and you are picking my brain about how I got started. I’m already smelling the Italian roast!

Starting the Business

1. Legal Structure:

• Should I register my tutoring business as a sole proprietorship, LLC, or another structure? I can’t give you any legal advice, but I can say that many people choose to start an LLC to protect their personal funds from their business funds. Sam Vander Weilen is a good resource. (Sam has many good resources!) https://www.samvanderwielen.com/how-to-legally-protect-your-online-business

2. Startup Costs:

• How much does it cost to start a tutoring business? It really isn’t that expensive to get started as you do not need very many supplies. There are some fees involved in registering a business and operating costs such as wifi/website/online platforms if you choose to tutor online. Often, you can get started for less than $500. 
• Are there any hidden expenses I should anticipate? One hidden expense that most people do not think about is credit card fees when you allow your clients to pay you by credit card. Another is coffee. If you decide to tutor at a coffee shop, you should be a paying customer. If you choose to tutor online, you may need to invest in a yearly subscription to an online communication platform such as Zoom.

3. Subject Focus:

• Should I specialize in one subject or offer tutoring in multiple areas? That depends on where your expertise lies and what brings you joy! If you love math, there’s always a high demand for that subject area. If you are patient and engaging with younger children, elementary tutoring is a specialty I love. 

Want to know more? I walk you through these topics in detail and so much more in my Business Basics course, which is a small investment at $399. I know what a teacher’s salary looks like, so it’s affordably priced for teachers, grad students, and stay-at-home parents. 

Finding Clients

4. Marketing and Networking:

• How do I effectively market my tutoring services? Once you set up your business, tell everyone! In my course Business Basics, I give you a template to write a simple business pitch and a 30-day marketing challenge. Post it on your social media, share it on your neighborhood bulletin board, and tell all your friends with kids. After you get a few clients, word of mouth from happy clients is the best advertisement. Karen, a teacher who took my course and started her own successful tutoring business, loved the simple elevator pitch template and the confidence it gave her to tell people about her business.

Finances

5. Rates:

• How do I set competitive rates for my tutoring services? In the beginning, research what other tutors in your area/expertise are charging for an hourly session. Think about what people in your area are willing to pay. Tutoring has low overhead costs, so you can expect to take home much of what you charge. Having your own business also means you don’t have to pay the middleman.

6. Payment Methods:

• What are the best ways to collect payments (cash, apps, invoicing, etc.)? Good recordkeeping is an important part of being a small business owner. Research companies like Wave App or Quickbooks with software to help with invoicing, accounting, and tax records. Having a business checking account is good, too. 
• Should I require payment upfront or after sessions? I prefer to have my clients pay upfront for the month. I talk more about the pros and cons of this in my course Business Basics.

Scheduling and Time Management

7. Workload:

• How many clients can I realistically manage at once? That depends on your situation. I like to schedule chunks of time on my calendar with back-to-back hourly sessions. Some tutors like shorter sessions or time between clients. I also chose this job because I could choose which days work for me and block off time to take my aging mom to her doctor appointments. 

• Should I offer flexible hours, evenings, or weekends? That depends on your situation. If you are working a full-time job, you may only be available a few hours in the evening or on weekends. There are plenty of students looking for afternoon tutoring and plenty looking for evenings and weekends. Time management is a really big question to consider when starting a tutoring business. Choose what works best for you.

8. Cancellations:

• How do I handle last-minute cancellations or no-shows? This is a big decision. Using scheduling software that reminds clients of their appointments helps lower the no-show rates. 
• Should I have a cancellation policy in place? Yes. Life happens for you and for your clients. Decide how close to the start time a client can cancel and how you will reschedule or refund a session. 

Growth and Expansion

9. Scaling and Adding Services:

• How can I grow my business beyond just one-on-one sessions? There are so many ways! You can offer a group session, online courses, workshops, or book clubs. You can teach an online cooking class via a webinar. You could lecture at a parent gathering. I’ve got a book club kit with all the things you need to get started – except the books and the kids! You can also design value-added resources and workshops such as test prep or study skills.
• Should I hire other tutors or stay solo? That depends on whether you enjoy running the backside of the business, as those responsibilities will also grow when you hire employees. Staying small allows you full control, but it also means saying no to more clients or having a waitlist. Growing also allows you to hire people to do the jobs you dislike! 

Client Relations

10. Setting Expectations:

• How do I communicate my goals and expectations with parents and students? There are several ways to communicate this. You can write up your expectations and give them out as part of your client onboarding. You can go over them during your first session. You can have it posted on your slide deck or wall. Simple and clear goals and expectations work best. Developing rapport with clients is a great way to communicate expectations and mutual respect.

11. Feedback:

• Should I regularly share progress reports with parents? That depends on your style and the expectations you set up with the clients. Regular communication in person or via email can be a good summary for parents, whether you send it weekly or quarterly. 
• How do I ask clients for reviews or testimonials? I go over this in my course Business Basics, but honestly, you just ask! I like to have a short form they can fill out that prompts them to talk about certain aspects of the business. I also get their permission to use their review and name. Check out some of my clients’ reviews on my website, tailorjoy.com.

Technology and Tools

12. Software:

• What tools should I use for scheduling, billing, and online sessions? I have a list of my favorite business tools on my website. https://tailorjoy.com/at_home/favorite-business-tools/
• Are there any free or affordable platforms for starting out? When starting a tutoring business, you could easily write up a blurb about your business and services on a free Google Doc that you share with a link or print as a flyer. It is helpful but not necessary to have a website or fancy business software. Keeping records on paper or spreadsheets is a free way to start.

13. Online Tutoring:

• How do I make online sessions as effective as in-person ones? Building rapport with clients can happen in person or online. You just have to be intentional about it. For me, my sessions are the same regardless of if we are in person or online. I have a new workshop, “How to tutor online,” coming out this spring, which will give tips, tools, and examples of teaching online. Click here to get notified when the free workshop opens up. Personally, I love the freedom and flexibility of tutoring online, and it saves parents time and gas money, too!
• What equipment do I need to get started? A laptop, a camera, a microphone, and internet services are the basics, besides knowing what platform you will use for the video call. 

How was your coffee? My steaming hot cup of Italian roast black coffee is the perfect blend to sit with you and chat about starting a small business. Can I give you one more piece of advice? Don’t just print a short checklist of how to start a business and think you can successfully pull it off if this is your first business. Build your business professionally right from the start. Put in the time and work. Sets yourself apart from other tutors.

I highly recommend a business course or tutorial that helps you dig into the specific options you have to consider when starting a tutoring or coaching business. You don’t just want a plug-and-play business because the services you offer are unique to your skill set. That’s your biggest secret weapon! There are many amazing tutors out there and thousands of students in need of a tutor who is just the right fit. Take the time you need to set up your business ahead of time. 

Think through all the big and little decisions. My course has a ready-to-use Asana template or printable PDF with over 200 big and little steps to keep you on track, saving you many hours and countless sticky notes. Business Basics course can be done in just a few days or a week, but I do not recommend hanging out your open sign in less than 24 hours. Consider your situation, your strengths, and your boundaries. Dream about your benefits and freedoms as a business owner. I’d love to come alongside you on this journey and cheer you on!

This course is for tutors, teachers, parents, college students, grandparents, coaches, or people who want to start a successful tutoring business. I did it, and so can you. I love my private tutoring job and the income and freedom it provides. Did this Q&A answer some of your questions? Are you ready to love your job? Enroll now. Want to jumpstart this process with accountability? Business Basics Plus will help you go from sticky notes to start-up in 6 weeks. 

Table Talk:

Which category was one you had not thought about yet? What questions do you still have about starting a tutoring business?