How To Start a Tutoring Business in 8 Steps

Whether you’re a career educator or a college student looking to start up a side hustle for extra cash, tutoring can be a lucrative gig. The key is to set up your business strategically and optimize it for success by leaning into your subject matter expertise and finding the right audience. Teaching another person how to do something, whether it’s how to improve persuasive essay skills or ace the SAT, can have major payoffs— both for the student and you. 

Read on to learn how to start a tutoring business, from finding the right subject and setting your rates to effectively marketing your services. 

How to start a tutoring business

1. Choose your areas of expertise and target market
2. Select your tutoring model
3. Register your business
4. Build your knowledge
5. Set pricing
6. Open a business bank account
7. Make a website
8. Market your business

Here is a step-by-step guide to follow to start a successful tutoring business of your own: 

1. Choose your areas of expertise and target market

Before you start, think about your subject matter knowledge and skill set, then leverage that expertise to carve out a niche that attracts prospective clients. For example, if you previously worked as an accountant, your math acumen might lead you to focus on subjects like algebra, calculus, finance, economics, or general math.

Your expertise can be applied to general subject matter tutoring services or to help students prep for specific college entrance exams like the SAT or LSAT. Let’s say you previously held a job in medicine; you might choose to target high school and college students taking related courses like biology or preparing for the MCAT. 

2. Select your tutoring model

Once you’ve identified your focus area and target market, it’s time to select a tutoring model. There are several ways to structure tutoring sessions, including:

• Home-based tutoring. Operate from your own residence or home office, allowing clients to come to you and minimizing your own travel time and expenses. 
• Traveling tutoring. Instead of hosting clients, you can travel to their homes or schools for tutoring sessions.
• Online tutoring. This model offers the most flexibility, allowing you to remotely teach pupils from around the world using online video platforms like Zoom or Google Meet. 
• Franchise tutoring. Setting up a franchise with tutoring companies like Sylvan, Goddard, or Kumon will require some upfront investment, but it’ll also give you access to resources and tools to help get you up and running. 
• Private tutoring. Provide one-on-one tutoring support so that you can tailor each session to a single student’s needs.
• Group tutoring.Tutoring multiple students at once, usually of the same age and in the same subject, can help you maximize both your time and income.

Determining your tutoring business model will be a crucial step in writing your business plan, and will help you build out the other sections, such as how you’ll differentiate your business from others on the market, your financial projections, and marketing plan.

3. Register your business

Once you’ve finalized your areas of expertise, target audience, and tutoring model, it’s time to make your business official. While the process varies by state, you’ll typically start by choosing a business structure, such as a sole proprietorship or a limited liability company (LLC), and then register with the appropriate agencies. 

Although you likely don’t need a specific educational license to start a tutoring business in most places, you may still need other permits depending on how and where you operate. For example, if you plan to advertise on your property, you might need a sign permit. You may also need to register for a sales tax license, depending on your state’s regulations.

4. Build your knowledge

Even if you’re an expert in a particular subject, it’s important to stay up to date with new developments in the field, teaching methodologies, and curriculum requirements. For example, if you’re tutoring high school students for the AP US History exam, you should be familiar with the books in their syllabus, resources from the College Board, and past AP exams to understand standard question formats. 

5. Set pricing

Choosing the right pricing strategy for your company involves weighing several factors, including competitor rates, geographic location, business expenses, your chosen tutoring model, and demand for your specific tutoring niche. For example, if you purchase a franchise and run group classes, you’ll likely charge an upfront course enrollment fee. If you’re operating a home-based or traveling tutoring business, hourly or monthly rates may make more sense.

The average tutor in the US makes an annual salary of $48,580, or $23.36 an hour, according to data from the US Bureau of Labor Statistics. While this data can serve as a benchmark, you should also research competitive rates for your specific subject matter and region. When setting your prices, remember to account for offsetting business expenses like books, office supplies, and gas for traveling. 

6. Open a business bank account

Setting up a business bank account helps keep your personal finances separate from your business finances, which can help you manage income, track expenses, and file taxes. Take time to compare different banks based on fees, accessibility, customer service, and the types of business banking services they offer, so you can choose the best fit for your needs.

7. Make a website 

Once you have all the business details in place, it’s time to build a website that showcases your expertise and promotes your services. Your website serves as your digital storefront—make sure it’s clear, professional, and easy to navigate. Use keywords specific to your niche and location so your website will appear in search results.

Platforms like Shopify can help you create a custom website with features like an About Me page to highlight your background, tutoring focus, and teaching style. Shopify can also help you build out important components like an FAQ section and contact information so students, teachers, and parents can reach you. You can also add an appointment booking app to your website so clients can easily see your availability and book sessions online. 

8. Market your business

When you’re ready to grow your client base, you’ll need to develop a marketing strategy to get the word out. Start by creating listings on forums like Google Business, Care.com, Hey Tutor, or Preply, and use social media and other marketing materials to promote your services, publish testimonials, and share updates.

In addition to digital outreach, you should also leverage local marketing tactics like posting flyers in community centers, libraries, or coffee shops, pinning business cards to local bulletin boards, advertising in the local paper, and reaching out to schools in the area.

Once you’ve built a strong client roster, consider launching a referral program. Offering discounts to clients who refer others can encourage word-of-mouth marketing and help you grow your business organically.