If you have specialized knowledge in a particular field owing to advanced degrees in that particular subject, or have extensive real-life practical experience in a specific area, you might want to put it to good use by considering launching a tutoring business.
A tutoring business can be online, in-person, or a mixture of both and will depend on both the client and your preferences. With the online tutoring services market expected to have a CAGR of 14.7% from 2022 to 2030, you can be hopeful that this is an excellent choice if you want to launch something of your own.
In this article, we highlight the pros and cons of starting a tutoring business so that you have all the facts before deciding if it’s the right option for you.
Pros Of Starting A Tutoring Business
One thing you can be certain of is that as a tutor, you will have a sufficiently large market at your disposal. Regardless of your subject area, you will be able to find students who are looking for some extra help with their school or university studies and will be willing to pay for tutoring services.
In order to identify and map your potential market, we suggest writing a comprehensive and detailed tutoring business plan containing your business strategy, a list of competitors, potential client demographics, marketing strategy, financial plan, and a step-by-step process of the measures you need to take to launch your successful tutoring business for your target market.
Another advantage of a tutoring business is the flexibility to choose what you teach and when you work. If you have a specialty in multiple subjects, you can explore teaching some or all of them depending on the demand for those disciplines. Similarly, as a tutor, you have the freedom to choose your hours, and work as much or as little as you want, depending on your financial needs and personal preferences.
Starting a tutoring business has minimal start-up costs, which is great for people who want to start a business but don’t possess the capital to invest. All you really need is word-of-mouth advertising coupled with a basic social media marketing strategy and some flyers and posters in key areas around town. This should not cost you much and is fairly simple in terms of overall effort and time.
Considering that the global economy has been taking a toll on monthly expenditure, a tutoring business is an excellent way to supplement your income by giving you the freedom to choose your business hours and regulate your client portfolio. It is a fantastic avenue to explore if you wish to start a side hustle and want to work part-time to make some extra cash.
Cons Of Starting A Tutoring Business
While tutoring certainly has some great advantages, it is important to keep in mind that it can be quite demanding in terms of the hours spent tutoring students. This is primarily because the majority of your business will be done over weekends, public holidays, or after official school timings. This means that your evenings and weekends are likely going to be busy with you teaching and working away.
Prior to launching a successful tutoring business, you need to spend a considerable amount of time and energy to get started. This involves building your reputation as a tutor and appealing to students so that they might consider hiring your services over competitors. Establishing your credibility as a tutor may take months or even a few years, and would require patience and resilience on your end.
Most tutoring services experience a surge in demand during term time, and face a considerable slump during the summer. This cyclical demand may mean a potential stagnant income during summer periods, due to which full-time tutors may need to look for additional income sources. However, it is possible to seek out clients who want to prepare in advance for the academic year, but this is not guaranteed.
Entering the world of tutoring means that you will likely face fierce competition from other established and qualified tutors. While the potential market is substantial, you will have to work hard to promote yourself and offer something differentiated from your competition to win over clients. Whether you offer mock exam preparation, free trial classes, or discounts for certain months, you will have to compete with other tutors to secure clients.
As with any venture, starting a tutoring business has its advantages and disadvantages, and making the final decision to launch your own business will depend on aggregating all these various factors. Be mindful that tutoring is dependent on your love for teaching and your perseverance and patience when it comes to building client relations. We suggest carefully weighing each of the pros and cons listed above before you make your final decision.