Starting Your Own Tutoring Business Online
Step 1: Make A Business Plan
Business plans are the foundation of strong businesses. Generally, a business plan is a written description of how your business will operate and how your business strategy will be implemented. Your business plan shows how you envision your organization, how you plan to operate it, and how you intend to make money with it. A business plan is a complex subject, and you can find lots of information online about how to write one. You may also be able to use resources from your local chamber of commerce and government economic development agencies. You can also use online tutoring to start your own tutoring business online.
A typical business plan includes:
- Executive Summary
- Company Description
- Market Overview
- Sales & Marketing Strategy
- Operating Plan
- Organizations & Management Team
- Financials
Step 2: Perfect Your Computer Setup
Setting up your classroom is the next step. Select a comfortable location at home to conduct the online course. The best location to shoot should be away from the house’s noise and have plenty of light. During video calls, you should place yourself so that you are facing a clean, neutral backdrop.
As well as having the required technology, make sure that you have the capability to teach online. Computer and strong internet connection are, of course, necessary. A working webcam and a microphone should also be included (even if they are just on your laptop). A tablet or digital drawing pad, along with a stylus that you can use with the software, is also a good idea. From a distance, you can use these tools to illustrate and share concepts with students.
Step 3: Find The Right Tutoring Software
Your next step should be to choose your software, once you have found out what your hardware needs are. Here are some options to consider:
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Video Calling Software:
You will be able to schedule meetings in advance and send meeting links via email to your attendees with video calling software like Zoom or Google Hangouts. It is also a good idea to check whether you can share your screen during tutoring since this will likely be useful for making demonstrations.
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Virtual Whiteboard Software:
You can draw, write, and the diagram on a virtual whiteboard with whiteboard software. It is only necessary to use a mouse to operate the software, but you can also control it more efficiently with a tablet or digital drawing pad (such as a Wacom Intuos). Check out Ziteboard, IDroo, and Scribblar, which all offer virtual whiteboards.
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Document Sharing Software:
Take advantage of the free tools that Google offers. For the purpose of sharing documents, editing concurrently, and making comments on specific sections of documents, Google Docs is a great tool. Moreover, Google Classroom enables us to build upon this functionality.
Step 4: Set Your Rates
Choosing the price you want to charge for your services is up to you as your own boss. The rates charged by tutors vary dramatically, and they typically depend on a number of factors, including your education level, the subject that you teach, and how your students learn.
Prices for tutoring typically range from $20 to $80 per hour.
Most high-priced tutors specialize in subjects that require a great deal of experience and knowledge, such as SAT preparation and high school and college math and science. Students who have special education needs typically charge a higher rate when they have training and experience working with these students.
Step 5: Register Your Business
It is technically not mandatory for your business to register with the state.
It is not necessary to register a business if a tutor runs their business as a sole proprietorship or partnership. Essentially a business that extends the owner, so registration is not necessary. The setup of a sole proprietorship is simple, and taxes can be simpler in a sole proprietorship than in a corporation. Sole proprietorships must file business and personal taxes together when filing taxes. Your self-employment tax will be deducted from your earnings. Besides, sole proprietorships don’t afford the same level of liability protection as other kinds of businesses. If your business incurs a debt, you are personally held accountable.
Besides the fact that other forms of incorporation take more time to set up, they also have a number of disadvantages and advantages.
Step 6: Establish A Web Presence
It’s imperative that you have a strong online presence as an online tutor. You can build your web presence in several ways:
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Create A Website:
An attractive, sleek website never hurts. You can build hype for your services by creating your own website, which offers credibility to your business. A site can be set up in a matter of days with the help of easy-to-use and cost-effective website builder tools. Some (such as Wix) even allow you to make online appointments so that your clients can book and pay for tutoring sessions.
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Set Up Social Media:
Make sure that your business accounts are set up on the social media sites used by your clients. You can start by setting them up on Facebook and Instagram. Your subject areas and a website link are important points to include. Additionally, you should encourage students and parents to leave testimonials on your Facebook page, increasing your credibility.
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Create A Yelp Page:
Now is the perfect time to create a Yelp page for your business if you don’t already have one. By creating an account on Yelp, you are encouraging more clients to leave reviews, which means more potential clients will learn about your services.
Step 7: Choose A Payment Processing Solution
Integration with a payment processing solution is required if you want to accept payments online.
Merchant accounts and Payments Service Providers (PSPs) are the two types of payment solutions.
The following solutions may be of assistance to you:
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Payment Service Providers:
PSPs like PayPal are widely accepted, and it is an option your clients are familiar with. Also, Square is a good PSP. You can schedule sessions and accept payments simultaneously through Square, so your customers can schedule and pay for services at the same time.
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Built-In Payment Processors:
A site builder may have its own payment processing solutions built-in. Users of Wix can take advantage of Wix Payments. Installing a payment method using built-in solutions is a great way to set up payments quickly.
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Merchant Accounts:
It can take a considerable amount of time to have a merchant account set up, but the initial cost is well worth it for some merchants. The two options we recommend the most are Fattmerchant and Payment Depot.
Step 8: Market Your Business
Your tutoring business can be marketed once your website is live and your payment method is set up. You should consider your present network and your target audience when planning your marketing strategy. Here are a few methods you can try:
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Email Marketing:
- Make sure to inform your existing personal network about your new business if you already have one. To let family and friends know about your tutoring services, use email marketing software such as Constant Contact or Mailchimp.
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Social Media Marketing:
- Using your social media accounts to advertise your tutoring services is a good idea. Putting out free content that anyone can view or download is a great way to gain new clients with social media.
- Post In-Person Flyers:
- Printed flyers with tear-off tags can be posted in libraries, churches, schools, gyms, and daycare centers.
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Offer Free Consultations:
- You may want to offer free initial consultations to potential clients. Parents should include this initial consultation as well.
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- Use positive customer reviews to your advantage by asking happy clients for testimonials. The power of word-of-mouth cannot be overstated. Take advantage of it as much as possible.
How To Fund Your New Online Tutoring Business
Capital is often an issue for newly formed businesses. You may wonder how to tackle startup costs if you find yourself facing them:
Personal Savings
The time may be right to use the liquid assets you have saved up. You eliminate the risk associated with debt and will not lose money on interest by using the money you already have saved. Therefore, if you use your personal funds for business financing, you take a risk. It’s your money at stake if your company fails.
Credit Cards
Your startup expenses are funded by using credit cards. And is much easier and riskier than using other methods. A credit card is used for a variety of purchases and allows you to access credit quickly.
Carry a balance from month to month on your credit cards. Be aware that you’ll be charged high-interest rates.
Personal Loans
Some of the startup costs for a new business can be covered with a personal loan, even if traditional business loans are not an option for you. When you’re first starting out, these types of loans are easier to get.
In contrast to a business loan, personal loans do not provide liability protection.
Grants
It’s possible that grants are the closest thing the real world has to “free money”. Businesses are often required to complete an intricate application process to get grants. This is often highly competitive. The time you spend applying for a grant should be taken into consideration when weighing your options. As a result, you should allow for the possibility of not being selected for the grant.
