Feb 23

How to start a tutoring agency

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Starting a tutoring agency can be very fulfilling and surprisingly simple — and if you run it well, you can make lots of money. You can even make extra for yourself by doing some of the tutoring!

Tutoring is listed as one of the top 16 industries worldwide for starting a new business, with a with a growth rate of 7%in the last year — and recent findings from Global Analysts, Inc. suggest the private tutoring market will exceed $102.8 billion by 2018!

When an industry is growing fast it makes it a lot easier to start a new business. But you need to learn about the tutoring agency business model before you start a tutoring agency.

What’s the business model for a tutoring agency?

start a tutoring agencyIn most cases, tutoring agencies are an example of what people in business speak call an ‘intermediary’. That may sound grand, but all it really means is that they provide links between two different sets of people. With tutoring agencies, the links they provide are between tutors who want work, and clients who want a tutor. Some tutoring agencies provide online tutorials; some provide tutors in person; some do both.

The tutoring agency charges the client for the tutor plus their commission on top. The client pays the tutoring agency, and the tutoring agency then pays the tutor for their work.

Often tutoring agencies grow big enough to expand into other areas, such as running tuition centres, hosting education conferences, or publishing magazines, so it is often a great platform for an ambitious business to start from.

How do you start a tutoring agency?

1) Mark your territory — Start by finding out where you want to operate. Do you want to operate locally, nationally, internationally, or online?

Top tip: start in an area you know well already. That will save you time when searching for tutors and potential clients, since your prior knowledge will help you find the right places to look right away!

2) Find your niche — Figure out what you want to teach. Do you want to teach mainstream subjects, like English or Maths, or do you want to teach more specialist subjects like Drama, Art, or Computer Science?

Top tip: start of with fewer subjects. That way you will not try to do too much at once, and you will be much more likely to gain a reputation for high quality tutoring.

3) Find your price — This depends on the clients you are looking after, and the amount your tutors expect to receive for their work. But think about these three questions to find a reasonable price to charge:

  • How much are your tutors charging for their services?
  • What are your admin costs?
  • How much are other tutoring agencies in your area charging for their services?

start a tutoring agency4) Sort out your admin — It is really important for small business to get on top of their admin early on, and this is true for all types of businesses, not just agencies. Sorting out your admin will cut your costs, cut time wasting, and increase your revenue and profits. The best way to do this is to use specialist tutor agency data management software like TutorCruncher that allows you to log invoices, schedules, billings and student records.

5) Get going — No plan is ever perfect. The trick is to get going, to find the faults in your plans early on, and adapt your plan accordingly. If you can be adaptable and energetic in the first few months, you’re bound to be more successful!

For more info on running a tutoring agency, take a look at the TutorCruncher Blog, which provides plenty of in-depth plans and ideas on how to succeed.


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