The tutoring industry has seen an unprecedented boom in 2020. With many parents looking to get extra support for their children along side online school, tutors are more in demand than ever.
If you are business savvy, you might see this as an opportunity. While 2020 has come with a huge number of challenges for everyone, it may also bring a number of unique opportunities, such as the potential to start a thriving tutoring agency.
Here are 5 key tips for starting a tutoring business: 1. Identify your area of expretise and business' unique selling point. 2. Research your market and competitiors. 3. Figure out your pricing. 4. Research useful tools you could use. 5. Create an effective marketing strategy.
Read on to find out more!
1. Identify your expertise
When starting out a business it is important to recognise your strengths and weaknesses. If you are planning to hire people and build a team, keep in mind the areas you need help with and work on finding people who provide a complimenting skill set. This will help your team be as effective as possible.
More specifically for a tutoring agency, understanding your areas of expertise will help you focus on what subjects your company should be teaching.
Even if you are not personally teaching any students, having some understanding of the subjects taught by your tutors will help with quality assurance. Being able to have a general understanding of what your tutors are teaching, will mean you are able to overview curriculums or lessons and therefore make sure that your students are getting the best possible service.
2. Research your market
Market research will help you answer many of the initial questions you might have. As a business owner you will need to keep in mind that your business does not exist in a vacuum.
To get a better understanding of the world you are about to enter as a new business looking to areas such as:
- Who will be your key competitors within the market?
- What services are already available?
- Which type of customers are you looking to attract?
- What can you do to set yourself apart from other businesses?
If you are looking to get some influence from this research, look into how much agencies charge for each subject, if there are any gaps is subject availability and how many tutors other businesses have on board. This can help you get a better understanding of what other companies have done and what you can do better than them.
3. Set your price
Once you have a basic understanding of the market around you, it is time to set your price. This is often the step people find the most intimidating. However, setting your price does not have to be difficult.
Here are a few things you might want to keep in mind:
- What pricing model are you planning to choose? Do you want to create a high cost/low volume model, or are you looking to make your money based on quantity? You could also consider a hybrid of the two models.
- Will your prices vary? As most agencies charge different amounts for different subjects, you might want to vary your prices too. For most businesses more specialised subjects will be more expensive. If you do have access to tutors who can teach niche subjects, you could consider charging a premium for their lessons.
- What are you operational costs? Most importantly, you need to make sure that your charge rates will cover overhead charges. Creating a spreadsheet or using CRM software to keep track of expenses will allow you to learn what is the minimum amount you must earn to stay out of the red.
4. Find the right tools
Running a business means having to focus on dozens of different things at the same time. Keeping on top of your billing, tutoring payments and your customer relations can seem overwhelming from time to time. However there are lots of tools out there which can help you!
There are specialised Tutor Management Softwares, such as TutorCruncher, which give you all the tools you need to run your business. CRM software can help you stay on top of all areas in your business. Whether you need help taking secure payment, are looking to streamline your sign up process through your website or just want to spend less time on mundane admin work, Tutor Management Software can help! (You can learn more about TutorCruncher here!)
You might want to also think about how you will facilitate your tuition. During COVID-19 most tuition is happening online. Consider integrating your management software with an online whiteboard, to allow your tutors to communicate with students better!
5. Market your business
Since the tutoring market can be quite competitive, making sure your business is seen by lots of people is extremely important. You might want to consider implementing:
- Paid advertising: Social media advertising campaigns are cheap and effective. You can run an advert for as little as £5 or £10 a day. Most social media platforms use smart AI to show your advert to those most interested, meaning you could gain dozens of customers in no time.
- A slick website: Your online presence is very important when running a business. Making sure your website looks professional is often a make or break factor in customer acquisition. might want to also add an enquiry form or a list of your tutors to your website, to let people contact you easily.
- Email/SMS Marketing: To ensure that you stay in touch with existing contacts, you might want to think about sending automated emails and updates. This way you can make sure your customers remember your brand and continue to come back for more tuition.
Want to learn more tips about Tutoring during COVID-19? Read our blog article here!
Looking for tools to organise your business better? Try TutorCruncher today and say goodbye to mundane admin work.