How to Start a Tutoring Business

If you think about it, you've probably been tutoring informally for most of your life, whether it was teaching pre-algebra to your children or computer skills to your grandma. If tutoring is something that you enjoy, why not turn it into a profession and start your own tutoring business? There is a never-ending pool of grateful students in need of knowledgeable and patient tutors.

How to Start a Tutoring Business

Create Your Business Plan

Start with a plan that addresses all aspects of starting your tutoring business:

Identify Your Skills

Determine where your expertise lies. While it may seem hard to believe, plenty of adults are computer illiterate. These folks will pay big bucks to learn the most basic computer skills. A patient, computer geek could make a good living tutoring this demographic. Resume writing, essay writing, math and science are other high demand areas.

Detail Your Experience

While you may be required to have a bachelor's degree to work with formal tutoring academies, this isn't mandatory for your own tutoring business. However, certifications or formal documentation related to your area of expertise will give your business more credibility. Be sure to detail all formal education on your resume. If you want to build your resume, consider learning a second language or volunteering in an educational arena.

Draw Up a Business Contract

In it, detail the services you will offer, where you intend to conduct your tutoring, such as a public library, and your prices. Tutors start at about $15 to $75 per hour. Find out the average prices in your area. When setting your prices, be sure to include the gas and car maintenance expenses. Have students sign the contract and pay upfront.

Legal Work

You may be required to register your business. It may be wise to purchase liability insurance, especially if the tutors will come to your home. You will also be subject to a unique tax structure. Familiarize yourself with the self-employment tax by visiting the IRS website.

Advertise

Invest a few hundred business cards and fliers for your tutoring business and place these on bulletin boards around town. Visit the YMCA and other youth centers to inquire about posting your fliers. Post fliers at your church and condominiums and apartment buildings around town. Put an ad on Craiglist.org. Become a certified tutor at Tutormatch.com and Tutor.com, which are sites that connect students and tutors.