Are you about starting a tutoring business? If YES, here is a complete sample private tutoring business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a private tutoring business. We also took it further by analyzing and drafting a sample private tutoring marketing plan template backed up by actionable guerrilla marketing ideas for private tutoring companies. So let’s proceed to the business planning section.
Some parents who have wards in schools are willing to go the extra mile to ensure that their wards are sound academically- hence the need for extra coaching – private tutorial services. So, if you are an academician or someone who is interested in the teaching industry and you don’t have the capacity to start a standard school, then you should look towards starting your own private tutorial business.
The demand for private tutorial services is driven by the fact that most schools cannot meet the educational criteria for all the students, and also the need to ensure that students meet up with educational standards nationally and internationally as well as get their grades up, this is where the private tutorial services come in.
If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan. Below is a sample private tutorial services company business plan template that will help you successfully launch your own business;
Tutoring is a craft that is as old as man, from when man passed on the knowledge acquired from making fire, preserving cultures, to modern day classroom learning.
Tutoring can be informal (from parents to children) or formal (from an instructor to others) and can happen in any setting, the homes, offices, and schools. This is to say that even though schools might be considered the only place serious tutoring takes place, it isn’t the only place.
Apart from academics, there is skilled based tutoring- this is where an individual or a group is tutored on skills such as dance, singing, and sports and so on.
This guide will focus on school-based tutoring. Earlier, the myth had been that only slow learners needed tutoring, but this isn’t true as even bright students still get tutoring that is aimed at helping them further improve on what they know, thereby brightening their grades more.
Private tutoring has become so popular due to the fact that both parents now work, having little or no time to tutor their children, as against previously where only one worked and the other helped tutor the child. Apart from having no time, parents aren’t equipped to handle new information and knowledge that is the prerogative of a tutor or teacher, to use in teaching their children.
Due to this fact, there has been a tremendous demand for private tutors therefore creating a thriving tutoring industry. Most tutors are freelancers, making this industry a good one for entrepreneurs to set up.
Entrepreneurs who want to set up a tutorial school do not need to be professional teachers, but have to know where to source for clients in this case students, and how to give them a quality service so much so that they become a source of reference in bringing other clients.
Tutors are people employed to educate others, either individually, in small groups or in a large group. The key attributes needed to be able to start a private tutorial services are patience, enthusiasm, passion about the specific subjects to be tutored, and constant positivity.
Also needed are planning, preparation, and certain other organizational skills. Entrepreneurs who want to open or start a private tutorial service – either online, private, or a large school – will have to know the requirements needed – either for the school itself, or the tutors that would need to be employed – by the locality, city, state, and association or trade body where they intend to operate from.
In Hong Kong, the Census and Statistics Department pegs the tutoring industry as worth HK$400 million, .4 billion in india, and $12 billion in Japan.
In California alone in the united states, there are over 34,000 registered tutors. In fact, an educational market research and consulting firm states that revenue from tutoring, test preparation services, and supplemental content industry for kindergarten through 12th grade grew 6% in 2004 to 2005, rose and reached $21.9 billion.
For high and middle school students, online tutoring had revenue of $115 million. In Pakistan alone, parents spent an average of $3.40 a month in 2011, while in India it was about $2 per month. Whilst in South Korea, 90% of students receive extra tutoring from tutorial schools, in Hong Kong; the rate is 85% of students,
Even though this might seem like a saturated field, it isn’t as there is always a constant demand for private tutors – especially as traditional schools keep taking in new students’ intake that might require an upgrade of their grades through taking extra tutoring lessons from tutorial schools.
The incentives in venturing into or starting a tutorial school are having an impact on students who are struggling academically, or students who want their grades to remain up. Another thing is the available market for tutors either home based tutors, online tutors, or large tutorial schools.
Brainers® Private Tutors Services is registered private tutorial services business that will be located in a well – populated residential estate in Los Angeles – California, United States of America.
We standard private tutorial services providers that are set to handle all high school related subjects for both teenagers and adults who would want to enroll for adult education. We will engage in home tutors – we will go to the homes of our students as demanded by their parents.
Brainers® Private Tutors Services is a client-focused and result driven private tutorial services that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients (students and parents alike).
We will offer standard and professional teaching services to all to our students (high school students and those that enroll in adult education classes). We will ensure that we work hard to meet and surpass all our students’ expectations and educational goals whenever they hire our services.
At Brainers® Private Tutors Services, our students’ overall best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professional teachers in various subjects who are well experienced and passionate in imparting knowledge to students at various learning ladder.
Brainers® Private Tutors Services will at all-time demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our students’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our students.
Our overall business goal is to position our private tutorial services to become the leading private tutorial brand in the educational industry in the whole of Los Angeles – California, and also to be amongst the top 10 private tutorial services business in the United States of America within the first 5 years of operations.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Los Angeles – California is the right place to launch our private tutorial services business.
Brainers® Private Tutors Services is founded by Tommy Dyer, Zoe Johnson and Julius Fox. All the members of the team can comfortably boast of having a solid education background and have worked with various students at different level of learning.
All the founding members have equal stake in the business and they will be actively involved in running the private tutorial services business.
Brainers® Private Tutors Services is going to teach varieties of subjects within the scope of the education board in the United States of America.
Our intention of starting our private tutorial services is to soundly educate people in various subjects and of course to make profits from the education industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings are listed below;
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our private tutorial services business on the right business foundation.
As a matter of fact, we are set out to build a private tutorial services business that will be a standard for the private tutorial services line of business in the United States of America. We want to build a business of dedicated workforce who will go all the way to ensure that our students are satisfied and they get value for their money.
In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent tutorial services and run the business on autopilot. The success of our private tutorial services business will be anchored on the team not on any individual.
With the wide range of our subjects that we teach and the locations we intend covering, we are only expected to employ more than it is required to run a conventional private tutorial services business. Definitely, we will have various teachers to man the various subjects offering of Brainers® Private Tutors Services.
Brainers® Private Tutors Services will employ professionals and skilled people to occupy the following position;
Head of the Private Tutorial Services / School Administrator:
Tutors for Various Subjects
Marketing Executive
Accountant / Bursar
Client Service Executive
We are quite aware that there are several private tutorial services businesses all over Los Angeles and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
The Perfect Tutors Educational Center engaged the services of a core professional in the area of business consulting and structuring to assist our tutorial school in building a well – structured educational business that can favorably compete in the highly competitive education industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Brainers® Private Tutors Services. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Brainers® Private Tutors Services;
Our core strength lies in the power of our team; our workforce. We have a team that has successfully run a standard tutorial college, a team with excellent qualifications and experience in education. Trust and competence are key factors in this line of business and we can boast of having healthy dose of both.
We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors for business.
As a new private tutorial services provider in Los Angeles – California, it might take some time for our organization to break into the market and gain acceptance in the already saturated tutorial / education industry; that is perhaps our major weakness.
The opportunities in the tutorial / education industry is massive considering the number of parents who would want their wards to perform excellently well in their education and also adults who would want to learn how to read and write and also obtain high school diplomas. As a standard private tutorial services provider, we are ready to take advantage of any opportunity that comes our way.
Every business faces a threat or challenge at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the tutorial school.
Some of the threats that we are likely going to face as a private tutorial services provider operating in the United States of America are unfavorable government policies that might affect tutorial services, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power.
There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
The trend in the private tutorial line of business is that the keys to attracting students is the educational performance and the pass rate of their students in national exams. Any private tutorial services provider that has good records will always thrive.
The demand for private tutorial services is driven by the fact that most schools cannot meet the educational criteria for all the students, and also the need to ensure that students meet up with educational standards nationally and internationally as well as get their grades up, this is where private tutorial services providers come in.
The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. The areas you would need to spend heavily on is in ensuring that your teachers are well paid, their teaching style is up to standard, your advertisements, and insurance.
Even though Brainers® Private Tutors Services will initially serve high school students and those enrolling for adult education and later grow the tutorial school to accommodate middle school students As a standard private tutorial services provider, Brainers® Private Tutors Services offers a wide range of tutorial services hence we are well trained and equipped to services a wide range of students (adults and elderly inclusive).
Our target market as a private tutorial services provider cuts across people of different class and people from all walks of life. We are coming into the tutorial / education industry with a business concept that will enable us work with the students at different learning stages. Below is a list of the students that we have specifically design our tutorial services for;
Our competitive advantage
This field is a highly intense one because of the level of quality service offerings by home tutors and tutorial schools, who are more pressured to deliver better services, lifting the pressure off traditional schools. Due to this pressure, there is a jostling amongst the different home tutors and tutorial schools to get more students, thereby increasing their earnings as well.
Hence, schools are besieged by requests to offer home tutorials to the students. It is for that reason that tutorial schools have had to step up on advertisements and publicity to retain an edge over competitors. Home tutors aren’t left out of this competition as well.
We are quite aware that to be highly competitive in the tutorial / education industry means that you should be able to deliver consistent quality service, your students should be able to experience remarkable difference and improvement and you should be able to meet the expectations of both students and parents alike.
Brainers® Private Tutors Services might be a new entrant into the tutorial / education industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals, licensed and highly qualified educationist at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees (tutors) will be well taken care of, and their welfare package will be among the best within our category (startups home tutors / tutorial centers in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
Brainers® Private Tutors Services is established with the aim of maximizing profits in the tutorial / education industry and we are going to go all the way to ensure that we do all it takes to attract students on a regular basis. Brainers® Private Tutors Services will generate income by offering the following tutorial services;
One thing is certain, there would always be parents and students who would need that extra coaching or push in their education to be able to achieve their educational goals and as such the services of tutorial centers / home tutors will always be needed.
We are well positioned to take on the available market in Los Angeles – California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the private tutorial business and our student base.
We have been able to critically examine the tutorial / education market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – California.
Below are the sales projections for Brainers® Private Tutors Services, it is based on the location of our private tutorial business and of course the wide range of subjects that we will be offering;
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
We are mindful of the fact that there are stiffer competitions amongst private tutorial services provider in the United States of America, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Brainers® Private Tutors Services.
We will also ensure that our students’ excellent results from national exams and other exams speaks for us in the marketplace; we want to build a standard and first – class private tutorial services business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).
Our goal is to grow our private tutorial services business to become one of the top 10 private tutorial business in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Los Angeles – California but also in other cities in the United States of America.
Brainers® Private Tutors Services is set to make use of the following marketing and sales strategies to attract clients;
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both parents and students in the whole of Los Angeles – California which is why we have made provisions for effective publicity and advertisement of our private tutorial services. Below are the platforms we intend to leverage on to promote and advertise Brainers® Private Tutors Services;
Generally, for tutorial services (home tutors and tutorials for the physically challenged inclusive), flat fees on a weekly or monthly basis is what is obtainable. As a result of this, Brainers® Private Tutors Services will charge our students flat fees except for few occasions where there will be need for us to charge special students on hourly basis.
At Brainers® Private Tutors Services we will keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.
We are aware that there are some students that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such students’ needs.
The payment policy adopted by Brainers® Private Tutors Services is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Brainers® Private Tutors Services will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.
In setting up a private tutorial school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The capital for a home-based tutor might fall between $500 and $2,000, while that of a medium and large scale would definitely be higher.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a private tutorial school business; it might differ in other countries due to the value of their money. However, this is what it would cost us in the United of America;
While a home tutor might not have to incur all these expenses but going by the above report, we will need an average of fifty thousand dollars – $50,000 to start a small – scale private tutorial school business in the United States of America.
Generating Funds / Startup Brainers® Private Tutors Services
Brainers® Private Tutors Services is a partnership business that is owned and managed by Tommy Dyer, Zoe Johnson and Julius Fox. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
N.B: We have been able to generate about $10,000 (Personal savings $8,000 and soft loan from family members $2,000) and we are at the final stages of obtaining a loan facility of $40,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Brainers® Private Tutors Services is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our home tutor services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Brainers® Private Tutors Services will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
