About Tutoring Businesses
Teaching is one of the most noble, but usually under-appreciated, professions. Tutoring is very much the same in that the dynamics of the work are almost identical, and yet the word has a less than professional connotation. Nevertheless, many individuals and groups start tutoring businesses to make their livelihood selling academic instruction outside of the traditional classroom.
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The Facts
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Many families are simply unable to meet all their primary and secondary educational needs through public and even private school alone. With the workforce and higher education becoming increasingly competitive, tutoring has become a growth industry aimed at getting students through specific classes, to learn certain skills, or to succeed on particular tests.
Types
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There are two main kinds of tutoring businesses: those small, often one or two-person operations focused on a specialty, and large regional or national businesses that employ dozens of tutors for various purposes. These large companies often offer a branded tutoring experience across a wide range of topics and age groups, usually with their own copyrighted curriculum and materials. The individual tutoring business generally consists of a parent or teacher using already existing materials and working by recommendation and word of mouth.
Function
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In either case, the business model of a tutoring company is to make money by selling academic instruction. Some larger tutoring firms might save time and cut costs by holding classroom instruction with many students being tutored in the same room at the same time. Others might strive to provide the one-on-one focus that is traditionally the hallmark of the individual small business tutor. In most cases, the service will be evaluated largely on the outcome, whether the original goals will be achieved. However, depending on the age and grade level of the student, intangibles like rapport and scheduling flexibility will also influence the overall customer experience.
Considerations
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Overhead costs are important to consider when starting a business. A teacher or parent might have very low startup costs because the needed materials are already available to them and they already have a good reputation in their community. They also have access to other education professionals who can provide referrals. Non-teachers might have to spend significant sums on advertising and on amassing or creating materials for instruction. The level of overhead costs will determine the rate charged for the tutoring service and impact overall profitability.
Potential
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In periods of economic decline, it's natural for individuals to look to supplement their income through second jobs and side work. Though teachers are relatively insulated since they tend to work for government bodies and hold contracts, the recession that started in 2008 threatened to leave many states and localities with sharp budget shortfalls due to declining property and income tax revenue. As a result, some school boards were faced with cutting staff and withholding expected pay raises. It's likely this will lead to more teachers tutoring on the side to help make ends meet.
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