Starting a Tutor Referral Business
In starting a tutor referral business, you need to write a solid business plan, satisfy all state and federal legal requirements, and find affordable yet knowledgeable tutors. It is common to be excited and to want to start a new business as soon as possible, but take your time, write a solid business plan, and seek out the knowledge of others. The more time and care you put into planning your tutor referral business, the easier it will be to run and the more likely it is to be successful.
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Instructions
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Write a business plan. A tutor referral start-up, like any other business, will benefit from a thorough and strategic business plan. This should include a summary of the proposed business model, marketing, finances and management.
Tailor your plan specifically to the community your company will serve. If there's high-tech industry in the area, for example, it may be that math and science graduates are in high demand, so you will need to make sure you can find good tutors in those subjects.
After determining the tutoring needs of your community, calculate the size of the tutor referral pool that is available to you and that your proposed client base will support. Be detailed and thorough, because the better you plan your business, the easier it is to implement the plan.
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Consult with professionals such as an accountant, a small business lawyer and other applicable service providers who can help guide you. A lawyer can help you navigate some of the confusing aspects of business formation and describe the different options you have. An accountant can cover similar information, but also speak about tax implications and strategy.
Seek the advice of people already in the education and tutor referral business. You'll get better advice if you consult with tutor referral businesses in other areas so they will not see you as a potential competitor.
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Choose a business entity and file a creation document with the applicable state agency of your state. With the information you gained from your research, identify the legal form you wish your business to take: sole proprietorship, corporation, non-profit company, partnership or limited liability company. Register your business with the state agency.
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Contact the Internal Revenue Service and apply for a federal Employer Identification Number (EIN). For federal tax purposes, you must legally register your business with the IRS. You can find the forms you need on the IRS website.
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Obtain any required city and county licenses and permits. Some areas may consider tutoring an extension of education, and therefore require licenses not required of many other small businesses. Check with the city and county clerk's offices about the requirements.
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Hire top-performing college students. Especially when starting up, you want the best possible employees at the lowest possible cost. Students can fill this need, and also are a good source for finding the best and most qualified tutors and potential tutors.
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Network locally. Consider joining the Chamber of Commerce. Local business leaders tend to know a lot of people, and can be a good source for referrals and contacts. School administrators and teachers can be excellent referral sources, so attend school board meetings and try to get involved in the local educational community.
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References
Resources
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