Knowing when to take your tutoring business to the next level can be difficult to determine. To help you identify when you should make the transition from a sole trader to a limited company, we’ve put together a list of 5 signs that could help you decide when the time is right.
You can no Longer Keep up with Demand
When the time comes that you have to turn students down because you don’t have any spaces left, you only have three options:
- You gracefully turn students away and don’t hear from them again
- You pass them details of other tutors who operate in your area
- You set up a business model where you earn a commission on every lesson you organise between students and other tutors
The third option is certainly the one with most to offer you in terms of financial reward. Without really being aware of it, you may have already implemented an agency business model into your tutoring by passing on details of other tutors to students. In this case, all you need to do is arrange the legal side of things and start charging for the service.
There’s a Financial Safety Net in Place
If all your tutoring efforts have paid off and you have enough money put away to fund a start-up business then this could be the perfect time to start your own agency. Having your own source of income to fund your venture will save you having to borrow money and take out loans, which is a more financially secure option in the long term. Remember, setting up a tutoring agency doesn’t have to cost a fortune, many new agencies start by operating out of their own home and existing virtually.
Your Students are Achieving Their Goals
If your students are consistently achieving the grades they hoped for, then you know that you’re doing your job well. Having confidence in your own ability can often act as the catalyst for starting new business ventures. If you already have a good reputation in your local area, then starting a tutoring ag ency could be a logical next step. You’ll be able to launch your business on the back of your previous success a s a sole trader.
You’re Ready to Grow your Income
Maybe you’ll know it’s time to start an agency when you feel that you’d like to be more financially comfortable. Tutoring agencies are a proven way to make money, that’s why there are currently over 500 operating in the UK. Despite initial start-up costs, in the long term, setting up an agency can be a great way to grow your income.
Other Tutors are Asking for your Advice
If you’re one of those tutors who is constantly being asked for advice by other tutors, then you might want to consider yourself a leading figure. If people value your thoughts and opinions on education, then you’ll be in a strong position to grow your business to the next stage.
Are you a tutoring agency director? How did you know it was time to make the leap from sole trader to limited company? Perhaps you’re a sole trader at the moment. How do you think you’ll know when the time is right to start an agency? We’d be interested to hear what you think.