Tutoring is a promising type of business that does not require investing too much money. In fact, it is quite possible to launch this kind of business with a very limited budget. Furthermore, there is always a demand for tutors since students or students-to-be constantly require preparation to accomplish their learning objectives or enroll in a college of their dreams. As a result, the sky is the limit for this business in terms of acquiring new clients and growing the scope of the revenue. While starting the given business, it is better to organize all financial expectations and predictions, the core ideas, marketing strategies in a business plan.
TOP-5 Benefits of writing tutoring business plan
Of course, solo tutors-amateurs may not bother about writing a professional business plan. However, having all ideas crystalized and written down will obviously come in handy while expanding your business later. So, it is still better to have a tutoring business plan to set up a profitable and thought-through business. At first, let’s list the benefits of writing a tutoring business plan.
- Focus and clarity.
The presence of a written plan increases clarity, especially in the financial aspect of running a business. The plan will give an understanding of the optimal usage of recourses and winning strategies.
- Wholistic approach.
A business plan allows entrepreneurs to see and analyze the whole business at one glance. Having a plan and crystalized ideas at hand will connect the dots and give you a clear picture of the results of past actions, what is happening now, and what is expected to happen.
- Set priorities.
It is clear that even successful entrepreneurs cannot accomplish everything or achieve new goals right away. Therefore, it is necessary to prioritize some tasks over others. Obviously, a business plan can help you to keep track of your progress towards the prioritized objectives. At the same time, a business plan allows minimalizing the waste of time, efforts, and financial resources.
- Wise accountability.
Planning also helps to set expectations regarding the proximate amount of income, and then track the results. Monthly financial accomplishments review can assist in increasing the results, improving the strategy, or stabilize the current revenue. In short, a business plan can show existing and future trends of your tutoring business.
A business plan involves numerous sections that serve to analyze the key metrics: revenue, expenses, returns, web traffic, conversion rates, etc. A constant analysis of these metrics helps to maintain a sharp strategic focus.
As can be seen, writing a business plan can be the first and the most important stride towards having a prosperous business. Let’s go through the basic steps of writing a successful business plan.
Writing a business plan for tutoring business step by step
- 1. Analyze good examples and available professional samples.
It would be wise to spend some time looking for perfect examples of professional tutoring business plans. Nowadays, it is quite possible to find some sample business plans written for the tutoring industry. The analyzed samples will give you an understanding of the sections you need to include, the writing style, SWOT analysis examples, and general tendencies of how to write down your business ideas in the most appropriate manner.
2. Analyze your target market
Try to find more information on your potential clients:
- Who are they?
- Where can you find them?
- What their typical day may look like?
This step will give you clarity of the demand for your services in the market and the approximate level of income you can get. In addition, you may have some insights regarding good channels of acquisition and winning marketing strategies.
3. Write down the main information about your future business:
- The name of your business
If you want to work as a tutor, it is totally alright to use your own name as your brand’s name. However, it is also possible to come up with something unique and catchy if you want to hire others to work in your company.
- The nature of your business
In this subsection, you need to define the services provided by your business, I.e., the subject that you’re going to teach: foreign language courses, guitar or piano training, physics, etc.
- Describe your potential client’s profile
Use the information that you discovered about your target market. In this business plan subsection, try to use the most exact data and numbers. For example, reach out to your local school authorities to get the number of pupils in your area if your target clients are school students. If it is impossible, find the required information by using various demographics websites. This information might make your predictions more accurate.
It is necessary to keep in mind that the research of potential customers’ needs and aspirations will give you all the required details to create a perfect-match offer that they cannot go by. As a result, the right presentations of the programs’ learning objectives based on meeting those needs will drive more new clients to your business.
- 4. Perform a Competitive analysis.
The competitive analysis serves to figure out the market’s size and trends, the main competitors and their offers. The goal of a competitive analysis is not only to determine the main competitors but also to analyze their strategies, their strong and weak points, especially in relation to your own business.
While doing a competitive analysis, make sure to find the information about the amount of money your competitors charge per lesson and how many customers they have (at least, an approximate number). This information will help you to set adequate and appealing prices for your tutoring services. At the same time, don’t forget to forecast some future trends based on the obtained information. If you already have a website for your services, you can use Google trends or similar platforms to check if the used search queries have been increasing these years and whether they remain relevant in 2-3 years.
- 5. Write down business objectives for next three years.
Once you’ve written all the essential information regarding your business and its target market, it is high time to establish your goals for the next years. Of course, these objectives should be motivational and inspiring. However, remain realistic, especially if you’re a newbie in the tutoring business sphere.
- 6. Financial information
Without any doubt, tutoring is one of those not numerous business types where you can start without having a large amount of starting funds. However, it is quite possible that you will still need to spend some amount of money in the beginning: textbooks, educational tools, student management systems, maintenance of your website, a new webcam or a microphone (for online tutoring). This section is also for keeping track of your total income and expenditure, making forecasts about profit margins.
- 7. Make a SWOT Analysis
A SWOT Analysis is a good way to analyze external and internal positive moments and pitfalls of a business, would it be existing or potential.
Strong points and winning aspects that can give a company an advantage over all other competitors. The elements of providing services or internal organizational moments that are functioning efficiently.
Diverse problems or weak points that a business might have. These aspects put a company in a losing position compared to other businesses.
This section serves to determine all opportunities for growth that a business might have in the future.
This section serves to list all threats that a business might face in the future (a sudden decrease in the total number of students, financial crisis, more competitors, etc.).
Pay a lot of attention to this step since performing a SWOT analysis usually gives valuable results. A SWOT analysis helps you look at your business idea or your existing company at different angles, making the mentioned insights accurate and realistic. As a result, the obtained information comes in handy while goals realization strategies and planning stages.
- 8. Marketing
Another important section that should be covered in a business plan is marketing strategies and objectives. In this section, make sure to define the channel(s) of customers acquisition and the amount of funds that you are ready to spend on advertising.
- 9. Use Business Plan Software (Optional)
To save some time, it is possible to use a special software that can assist in creating and customizing your business plan from the first to the final step.
People always need tutors when they have to improve their skills or knowledge in something, pass an important exam, or get prepared for university or college studies. Therefore, a tutoring business is always in high demand. A tutoring business plan can assist you in organizing all thoughts and ideas, gaining all required information before getting started.
Michael Stone is an English tutor in Thailand. His main job is teaching English in a Bangkok private language school. At the same time, Michael enjoys writing as a freelancer and translating texts on diverse topics. In his spare time, Michael enjoys cooking and Thai boxing.