For teachers who want to receive greater compensation for their work, tutoring as a business would be an interesting option. First you need to find out how to get started and how much you can earn from this activity. But in most cases, almost no capital investment is required, and profits appear from the first months of operation.
And although this direction is not considered a new product, not all experienced teachers are able to easily organize themselves and move to a new level of earnings on their own. To do this, you can consult with colleagues who have already been tutoring for a long time, and also draw up a competent business plan and move step by step towards your goal. Even beginners should not have any particular difficulties.
Benefits of additional homeschooling
According to the Institute of Education, it has been established that a quarter of schoolchildren in Russia use the services of tutors, and sometimes several at once. In order to prepare for exams or to improve their knowledge in any field, people want to take the help of additional teachers in addition to those who teach the subject at school.
The most popular areas are mathematics and English, but other areas of science are also in demand on the market. Therefore, almost every teacher or even student who wants to make money on this can find application for their knowledge and experience.
Of course, to become a tutor, you need to have certain qualities:
- Have a good understanding of your subject, love it and improve yourself.
- Be able to convey a message to any person, regardless of his age and level of education.
- Individual approach to each client.
- Responsibility and punctuality - this is the only way to organize work competently, plan classes correctly, arrive on time and be able to distribute information for the allotted period of the lesson.
You need to be not just a professional, know the theory being presented, but also find a common language with students and their parents. It is important to be able to explain any topic at an accessible and simple level. The speed of formation of a client base will depend on these qualities. After all, thanks to the reputation of a good and talented teacher, you can get many orders without even making any special efforts for advertising.
What are the advantages of the idea of private tutoring? Each person can find their own advantages, but the following are considered the most attractive:
- No large start-up capital is required.
- The payback of the project occurs very quickly, high profitability.
- There are different forms of activity and you have the right to choose the one that is more suitable and convenient for yourself.
- Thanks to the Internet, you can find clients even outside your hometown or state.
- The process of organizing a business is quite simple and does not take much time.
- Having a good reputation in certain circles, you can quickly form a client base.
- This area of activity can be the main one or act as additional income.
- High demand for individual items.
How to make money from tutoring
Absolutely any teacher can become a tutor. Some people manage to engage in these services as leisure and additional income to their main job, and some, even in retirement, turn these activities into a successful business, so this is an excellent income option for retirees. Moreover, all that is required is the desire to work.
The content of the article:
- Which tutors are currently valued?
- Where to conduct classes?
- Business benefits
- How to earn millions!
Which tutors are currently valued?
A good tutor is usually considered to be people who have the appropriate special education and sufficiently extensive teaching experience. This, of course, is not so significant, but it greatly increases all chances of success and relevance. If at the time of your working life your parents were happy with you, then this is enough to start tutoring, even without many years of experience. In addition, this idea applies to business without investment.
Such services have always been in price and, probably, will continue to be, because our education system is constantly being updated and improved. And parents are simply forced at times to resort to the help of such specialists so that the child learns the program well. Not to mention preparing for college, this is dealt with all the time. A beneficial target audience could be students who want to learn something before getting a job (for example, English).
Teachers of foreign languages are in particular demand, as well as those subject teachers whose activities are related to entrance exams. But other subjects also need additional reading, since there are also plenty of careless students.
Where to conduct classes?
Tutoring classes are conducted both on the territory of the student and on the territory of the teacher. If the lesson is held at the student’s place, then it is necessary to immediately limit the space from interference from household members; it is better if it is a separate room. The fee for the service should then include the teacher’s travel to the student. At the same time, it would be nice to accept such orders somewhere close to your home in order to shorten the journey and save time. Since you will have to carry all the necessary supplies and aids yourself.
In addition, for your own purposes, draw up a training plan for each student and make a copy for parents so that there are no complaints afterward. It is also worth setting the duration of the lessons; for preschool age and primary school age, the duration of the lesson should not be more than 40 minutes. In general, for other ages it can be 60 minutes.
Business benefits
How good is this kind of income? There is no need to register it with the tax authorities and pay any fees. You work for yourself depending on your personal time, desire and well-being.
There is another way of tutoring - distance learning via the Internet. On the one hand, it is very convenient and you are at home and the student is on your territory and you don’t waste time walking. However, there are definitely disadvantages to such training:
- your preparation for such an activity will require much more time and effort;
-certain PC skills will be required;
- all written work, both from you and from the student, is checked and submitted in real time, that is, experience in this mode is required;
– you will need a computer and programs that meet these requirements, as well as the ability to use them. In addition, distance learning is not acceptable in a group setting; it is carried out only on an individual basis. And regular tutoring allows for group lessons with children. You can also release your own audiobook and set a low price. You are guaranteed additional income.
Earn millions from tutoring!
Although, perhaps, we misled you a little by saying that such a business is exclusively individual in nature on the Internet. At one time, our site wrote about the success story of the HotForWords project. The organizer of the entrepreneurial activity was a young girl who, using Skype, earned millions of rubles!
Of course, it’s up to you to decide what to do, because what suits some may not suit others. But tutoring is a very attractive and very profitable small business option. If you take care of clients in advance, there will be constant classes, the frequency of which can also be varied according to personal needs and leisure.
Where to begin?
From paperwork and business organization on a legal level. To do this, just contact the tax service and open an individual entrepreneur. You won't be able to hire a large number of teachers, but you won't need a license to operate.
If you are opening a tutoring center together with partners or are going to organize a large complex with many vacancies for teachers, then it is better to immediately register a legal entity (LLC). But in this case, you must obtain a license for tutoring activities from government agencies.
In any case, the tax system is simplified with the payment of 6% of all income. Be sure to indicate the correct OKVED codes:
- 10.3 – additional education for children.
- 42 – provision of similar services for an adult audience.
But there is another way. From January 1, 2020, tutors have the opportunity not to pay taxes if they are not registered as an individual entrepreneur and carry out teaching activities as an individual. But then the possibility of hiring staff is completely excluded, and you can also provide services only for household and personal needs, which significantly limits the entrepreneur.
But in this case, you will also have to register with the tax service, that is, inform them about your private activities. And since the line between a self-employed person and an individual entrepreneur is too thin, it is better to play it safe and register as an individual entrepreneur.
How to advertise your services
Experience shows that the most reliable type of advertising is “word of mouth”: people trust the recommendations of friends. Sometimes the old method works: publishing advertisements in the newspaper. But this is an exception to the rule. Moreover, people who use this resource recommend doing this all year round, without interrupting publication during the non-working summer season. In this case, it is advisable to recruit a list of students by the beginning of September.
The main feature of advertising for tutors is personification. People trust a specific person more than an impersonal advertisement. Here are examples.
Example of advertising for private lessons
Example of advertising for private lessons
Another effective technique is positive feedback from students who have already completed training with a specific tutor or tutoring center and received good results.
Example of reviews
But now the most common advertising is on the Internet. For example, there are several large ad placement platforms. Let's look at their pros and cons
.
Free message boards.
Pros: cheap, fast.
Minus: not all ads are moderated, especially when it comes to advertising the services of teachers, doctors and lawyers.
Contextual advertising on Yandex Direct and Google Adwords resources.
Plus: fast.
Cons: difficult and expensive. Either you will need a specialist to set everything up, or you will have to train yourself. In both cases, you will have to pay money both to the technical specialist and for the advertising itself.
Targeted advertising aimed at the target audience.
Plus: fast.
Cons: expensive.
Couponers who place discount coupons.
There are no advantages for the tutor business at all.
Cons: expensive, time-consuming and difficult.
You Tube channel where you can post videos with your demonstration lessons.
Plus: cheap.
Cons: Long and difficult, because it also requires special setup.
But there is also good news!
Social networks are great for advertising tutor services. Now this is the most modern form of word of mouth. There is hardly a single person who does not have an account on VK, FB or Odnoklassniki. Use these resources to educate potential clients about who you are.
Look for groups on VK in which residents of your city communicate - and there are many such communities. You can place paid advertising there, or you can simply actively participate in the discussion of relevant topics: such things always happen.
Look for forums and groups where people communicate based on interests: parents of preschool and schoolchildren, as well as adults and students studying languages.
Forums for your fellow tutors are great. These communities, in addition to professionals, are also visited by smart parents. Actively participate in discussions. There you will not only attract the attention of a potential audience, but also receive a sea of invaluable information related to your business.
Are you still reading this article? It's high time you started! And remember: you have one of the most sought-after professions, and there will always be a demand for your services.
Activity format
Today you can make money through tutoring in several ways:
- Through remote learning, for example, via Skype, Viber or other instant messengers. This also includes webinars, online conferences, etc. All you need for this is a computer or laptop, headphones, a microphone and a webcam. This method makes it possible to unite a group from different parts of the world and approach the learning process as creatively as possible.
- Tutoring at the client's home. At the same time, you must appear at the address on time, and additionally include the cost of transport (public or private) in your payment. Try to leave early and avoid traffic jams so as not to violate the rules of punctuality.
- Training at home when clients come themselves. Thanks to this, you can reduce the cost of lessons. But plan your class schedule carefully so that no one has to wait in the hallway while you finish with the previous student.
- A separate center or office where people come for individual or group classes. To do this, it is better to hire several teachers at once and carefully think through the lesson schedule. So, there are categories of people for whom it is more convenient to study in the morning, while for others, on the contrary, evening hours are suitable.
Risk Analysis
In the process of developing a business plan, minimizing the risk of bankruptcy and financial losses is taken into account, taking into account the following factors:
- * relatively small starting capital, which does not include borrowed funds;
- * high advertising costs designed to provide our company with the maximum possible influx of customers and. as a result, a sufficient rate of profit and a decent reputation in the market for the consumption of educational services;
- * normal return on investment (it is planned to recoup the starting capital within 12 months, which was included in the mathematical calculations of the break-even point);
- * high mobility of the enterprise due to the simple organizational structure and small staff;
- * real growth prospects.
for 550 rubles, from our partners, with a quality guarantee. It is not publicly available on the Internet. Contents of the business plan: 1. Confidentiality 2. Summary 3. Stages of project implementation 4. Characteristics of the object 5. Marketing plan 6. Technical and economic data of the equipment 7. Financial plan 8. Risk assessment 9. Financial and economic justification of investments 10. Conclusions
Prospects for growth and development
Business in education is always profitable. At the initial stage of the operation of the individual entrepreneur (in the first 12 months), when the starting capital must be repaid, undistributed profit, according to our forecasts, will be about 18,000 rubles. These funds will be distributed to employee bonuses, the enterprise expansion fund, and the reserve fund. We plan to expand our activities a year and a half after the start of operation by opening one office with a staff of 3 teachers. In addition, a professional accountant will be hired. Thus, the structure of the enterprise will become somewhat more complicated.
If the expansion is justified, it will continue to the extent permitted by the legal status of the individual entrepreneur, after which, if appropriate, conversion into an enterprise with a legal personality will follow. In addition to the above, three years after the start of operations, a programmer will be added to the staff to create educational software products based on the teaching methods of our teachers. If these programs perform well, then in the future it will be possible to think about the most profitable way to distribute them on the market, but this is a completely different area of activity.
Services
First, be sure to decide on your profile. If you are a subject teacher, then most likely you made your choice a long time ago. But when searching for personnel for a tutoring center, it is advisable to focus on different and most in-demand areas. Thus, today foreign languages (especially English), mathematics and Russian are in greatest demand.
Since all clients are different and their learning goals are also different, you need to create a certain algorithm of actions. Typically, full-fledged tutoring centers operate as follows:
- The first consultation is free. It is necessary to find out the wishes of the student, his level of knowledge and training, determine the profile, prices, conditions, etc.
- If the client wishes to enroll in any university, they provide him with the basic requirements for each specialization, guide him towards specific exams and draw up an individual work plan.
- During the learning process, they must adhere to the chosen methodology and strategy, providing as much as possible all the required information on the subject in accordance with the goals of the classes. For this purpose, teaching aids, dictionaries, reference books and other educational literature on the subject are often used.
- They try to diversify the forms of classes as much as possible - seminars, lectures, consultations.
- Modern computer technologies are also used to speed up learning, facilitate this process, and consolidate skills by simulating individual situations.
Prospects for growth and development
If at first the business plan provided for working with three teachers, then in a year and a half we can fully count on expanding the staff. You should expand in popular and promising areas that your market demonstrates. But we must take into account that an individual entrepreneur implies limited possibilities for hiring staff. Therefore, the business plan must foresee in advance the possibility of changing the form of organization of the center.
As a rule, the staff is expanded not only by teachers. The growth of the center requires the hiring of additional support staff: a professional accountant, a programmer who will develop training programs, an IT administrator who will monitor the smooth operation of computers, etc. Additional income can be generated by selling your own training programs, educational literature, and manuals.
Arrangement of the premises
If you tutor at home or remotely, then this item is unlikely to interest you. But when creating a center or office for conducting classes, you need to approach this issue correctly.
First, think about a good location. It is desirable that it be somewhere in the central part of the city or near educational institutions - schools, institutes. Consider the cost too. Sometimes it is more profitable to rent a ready-made classroom at a university or other institution, where the payment is low and you do not have to purchase additional furniture. Here it is easier to find clients with minimal advertising costs.
Secondly, make repairs if necessary and arrange everything in such a way that sanitary and epidemiological control and fire inspection do not make claims against you. Again, there is a pleasant pattern - in educational institutions all the rooms are already prepared properly and the owner has the necessary permits from regulatory authorities.
Thirdly, you should purchase everything for the arrangement of educational and administrative rooms:
- furniture (desks, tables, chairs);
- boards;
- office equipment;
- computer and educational software;
- consumables, stationery, small accessories, etc.
It is imperative for students to stock up on a sufficient number of teaching aids, textbooks and other materials that are issued to them for a limited period. In some cases, it is necessary to install a telephone line, the Internet and other means of communication.
Registration procedure
Registration of an individual entrepreneur (tutoring) involves filing an application with the tax office, which is located at the place of residence.
The following documents must be attached to the application:
- TIN;
- passport (copy);
- OKVED code;
- receipt for payment of state duty.
The OKVED code is selected taking into account your activities. This is an all-Russian classifier of types of economic activity. A foreign language tutor needs to select code 85.41.
After which you need to apply for a patent for an individual entrepreneur. In order to reduce the tax burden, a patent can be issued not for a year, but for 3 months. After registering with the tax office, you need to open a bank account.
Personnel and work schedule
To start a tutoring business, you don’t have to hire someone. You can cope with the influx of clients on your own and keep all the profits for yourself. But when organizing the center you will have to use the help of specialists.
To do this, they hire a sufficient number of teachers with different areas of subject matter in order to cover the range of services as widely as possible. Their qualifications, work experience and personal qualities should be checked especially closely. The reputation of tutors and their professional skills will largely determine the desire of clients to visit your institution.
To perform administrative and organizational functions, you will have to hire a secretary. An accountant can act as a separate staff unit or perform work under a contract (outsourcing). Don’t forget about constant maintenance of order - the cleaning lady can also come at certain hours or clean the classrooms throughout the whole working day.
Don't skimp on wages. Please note that good specialists will be in demand outside the center. And along with them, most of the clients may leave. Therefore, always try to respect the interests of professionals and pay them adequately for their work.
It is important to properly organize the educational process. To do this, they create a convenient schedule for students. Consider personal preferences, group composition, target audience and other factors. For example, it is easier to conduct individual lessons in the afternoon or morning. But group meetings take place in the evening. The duration of the lesson for children should not exceed 40 minutes, but for adults the time can be increased to 1-1.5 hours.
The main clients of tutors are the following categories of the population:
- Students who do not keep up with the program as a whole or have problems with any one subject.
- Applicants wishing to enroll in a university.
- Young people after the army who want to continue their education.
- Various representatives of professions who had to change the specifics of their work or retrain.
- Entrepreneurs who lack knowledge in a narrow specialization.
Having decided on who can mainly become your clients, you should build on this in the future when building a business (placement, advertising, training methods). Thus, when targeting children, it is desirable to be located closer to schools and provide a wide range of subjects for the secondary educational system.
If your target audience is adults for the purpose of retraining, then focus on practical skills in certain areas of activity and in foreign languages.
Why do we need tutoring centers?
In business terms, education is a long-term investment in the future. In order to master the chosen profession, which will subsequently bring a stable income, a person will have to study long and hard. As a rule, they do not save on training. To obtain a better education, students turn to private tutors for in-depth knowledge of the subject. Tutors, in turn, can unite into groups, organizing training centers. This is no longer a simple part-time job at home, but a full-fledged source of additional or main income.
A couple of decades ago, tutoring was not as widespread as it is now. The reason for this was the reform of education and the introduction of mandatory exams (Unified State Examination, OGE). The school course does not always provide students with the necessary knowledge base. Many people have to pore over textbooks on their own. The brightest minds manage to cope on their own; the rest, without a teacher, get lost in the thorns of science, and also lose their way to the stars of success.
As one character said who was going to teach piano without having a musical education: the main thing is to be one lesson ahead of your student. It is worth taking his experience as a basis. Tutoring can be done either by a professional teacher or by a person with deep knowledge in some field (languages, literature, mathematics, chemistry).
Creating a tutoring center is a good business idea that promises the entrepreneur a stable profit. The need for a good education will never disappear, which means the need for tutors will remain relevant at any time.
Advertising campaign
People most often learn about tutors, their skills, reputation, and focus from sources such as acquaintances, close friends, neighbors, and relatives. Word of mouth is the main method of advertising for most good teachers.
But if you are going to recruit students for a full-fledged center or complex that provides a wide range of training programs, then it is worth using mass advertising. To do this, use different strategies:
- Post notices in educational institutions.
- Distribute leaflets on crowded streets or places where your potential clients gather.
- Disseminate information about your activities among everyone you know;
- Print out business cards.
- Create a website or group on social networks, post ads, use contextual advertising.
- Use local newspapers and magazines.
Remember that the best advertisement will be an individual approach to each student, a high reputation of teachers and work for results.
Resources needed:
To start the activities of an Individual Enterprise you need:
- a three-room space specially equipped with office furniture and equipment,
- Pentium 188 computer with all accessories (printer, modem, etc.);
- a car (the property of one of the employees, to whom the individual entrepreneur will pay for gasoline);
- educational, methodological and information literature.
At the initial stage of its activities, an individual entrepreneur must coordinate the work of 4 people: 3 teachers (two of them will work on the premises of the individual entrepreneur, and the third on the road) and one manager who does accounting, deals with advertising issues, organizing work activities in a team, etc. .
The starting capital required to start a business will be a maximum of 1000 USD.
Recommendations
This type of business has its own characteristics, and in many cities it is also characterized by high competition in certain areas. To succeed, you need to adhere to unspoken rules:
- Take into account the individual characteristics of the perception and assimilation of information by each client separately. Design training programs according to personal characteristics.
- Pay special attention to the first lesson, where you need to objectively assess the student’s level of preparation, his needs and goals.
- Design training programs in such a way that clients find it interesting. Involve the creative process, use modern techniques, captivate children with games, and further motivate adults to achieve their goals.
- Give students the opportunity to express their opinions and build constructive debate.
- If for any reason you cannot gain the trust and respect of a client, it is better to refuse cooperation with him. Remember, a good specialist will always have a job.
- Try to create a schedule that is convenient for both students and teachers. Consider life situations, work and educational processes.
- Never skimp on office equipment, auxiliary materials and aids.
By building the system properly and approaching organizational issues with full responsibility, you can quickly achieve full payback for the project and receive not only profit from the activity, but also pleasure, and also earn the respect of your students.
Business plan for a tutoring center
Having a business plan will allow you to avoid mistakes at the stage of launching and starting the work of the center. A project to implement the idea of opening your own educational organization looks like this:
Summary
Here they prescribe an analysis of the market in the region, project features, competitive advantages, pricing policy and areas of work.
Possible areas of activity for the center could be:
- preparing children for school;
- classes with schoolchildren in individual subjects;
- preparing applicants for further admission;
- teaching students in selected disciplines.
At this stage, you need to determine your target customer audience. It is necessary to determine the level of competition in a particular region and study potential risks. If the center plans a full-time system of work, then its category of visitors is residents of the area where the premises are located.
Risk analysis
Possible risks:
- income level - not every parent is willing to pay for education when there is a free alternative. In addition, many people choose centers based on their geographical location or price level;
- absenteeism - unlike a regular school, a commercial center will not be able to influence attendance or require documentary evidence of the reason for the child’s absence from classes;
- teaching staff - it is important that the overall learning process is an order of magnitude higher than in government institutions. It is not easy to find specialists of this level, and they will have to pay more.
As for competition, you can take a strong position in the educational services market by:
- effective advertising;
- introduction of a discount system;
- holding promotional events.
Organizational plan
Includes the following steps:
- licensing and registration of a business - the procedure was discussed above;
- search for premises and requirements for its internal condition. The optimal number of rooms is 4 - 5. You will need a reception area, a dressing room and several classrooms. The condition of Rospotrebnadzor is that at least 2.5 square meters must be allocated for each student. The ideal option is to rent a suitable premises for a long term;
- equipment and inventory - you will need furniture, computer equipment, blackboards, additional didactic and visual material, stationery;
- staff - an administrator and teachers are required. Try to attract qualified teachers, because people most often go to a specific teacher. How many staff you will need depends on the number of subjects and the expected number of students. It is more convenient to hire a cleaner on an hourly basis. Labor agreements must be concluded with all employees.
Financial aspects
If you do tutoring at home, then you won’t need any special investments. Almost from the very first lessons you will begin to earn income. But organizing the center will require large investments.
Most of the investment will be spent on:
- rental of premises;
- staff salaries;
- public utilities;
- furniture and office equipment;
- teaching aids and consumables.
On average, students pay from 300 to 800 rubles for one lesson with a tutor. But much depends on the locality, the chosen subject, the group or individual process, the duration of the lesson, the complexity of the tasks, etc. A third of the income usually goes to pay specialists. But even with such indicators, the payback of the project occurs after just a few months of active work.
Video: tutoring as a business.
Franchise work
For those who are hesitant to open a tutoring center from scratch, purchasing a franchise may be a good solution. Typically, a franchise package includes a ready-made business plan and educational programs. The entrepreneur will receive a recognizable brand and working marketing strategies. He will be provided with developed accounting and reporting forms, contract templates, and IT systems.
The disadvantage of working under a franchise is the need to pay a lump-sum fee and royalties, and comply with the requirements of the franchisor (population in the city, area of the premises). The estimated payback period for the enterprise in this case is six months.
The business plan of a tutoring center proves that the provision of educational services quite quickly brings income to both the initiator and investors. To launch a project, you do not need to have significant start-up capital; small investments are returned in a matter of months, allowing the new business to reach the break-even point.
Reviews
Karina: “I used to be a teacher. And often parents asked to further improve their children in my subject. Over time, tutoring began to bring in much more money than regular work and I completely retrained. This is profitable and promising for a good specialist.”
Olga: “I’ve been thinking for a long time about organizing a full-fledged center where people can find help on a variety of subjects. After all, it’s much more convenient than searching through advertisements or friends for the right professional.”
Konstantin: “It is important for a teacher to engage in self-development, constantly improve their skills and knowledge, apply modern methods, and also study practical psychology. This is the only way to gain a good reputation and perform work at the highest level.”
The main goals of the Business Tutor Association
- Help free up time from work for life, family, friends, travel, self-development and other pleasant things. After all, this is what you originally built your business for, isn’t it?
- When more free time appears, help distribute it between the main areas of activity - family, friends, business activities, hobbies, leisure, health, spiritual sphere, creativity and education.
- Correlate your personal values with the strategy and form of business management and choose the most successful and easiest management model for you personally.
Selection and preparation of premises
To provide tutoring services, a premises in a central or large residential area that meets the following requirements is suitable:
- Availability of ventilation, air conditioning and two exits (main and fire)
- Fire alarm installed by a licensed company
- Ceiling height not less than 3 m
- Connected water supply, sewerage, heating
- Separate classrooms, administrative area, hall, locker room and bathrooms