11 Reasons Why the Tutoring Industry is Ripe for New Entrepreneurs

11 Reasons Why the Tutoring Industry is Ripe for New Entrepreneurs:

08

Oct

2016

11 Reasons Why the Tutoring Industry is Ripe for New Entrepreneurs

Tutoring IndustryTutoring is becoming an increasingly large business, with some reports putting the industry at more than $54 billion worldwide; in Canada, it’s worth more than $1 billion each year, and the United States accounts for about $7 billion.

Entrepreneurs looking to join this growing market have a greater chance of success than ever before, as the industry is ripe for new business owners who want to own their own businesses while making an impact on the lives of students worldwide.

#1: Home-based businesses are on the rise

One of the main reasons people go into business for themselves is for the freedom and flexibility to manage their schedule and hours, creating a better work-life balance that lets them do what they love while still having the time to accommodate their family.

As more people take steps to own their own businesses, it has become more normalized in society, and there is a greater acceptance for individuals who want to start a company. When you start your own company, you don’t need to worry about meeting certain qualifications and expectations, you give yourself much greater job security in an unsure market, and you put yourself in charge of the company’s growth and profits.

#2: Small tutoring companies are succeeding

The United States Bureau of Labor Statistics shows that there are more than 100,000 private companies in the country’s education service industry, which includes tutoring, counseling and test preparation. When the public establishments are also included, the number more than doubles.

Small companies have a great chance of doing well; their data also shows that the 50 largest private companies represent 30 percent of the industry’s revenue; that means the remaining 70 percent comes from smaller companies.

While there are many franchise opportunities available, there are many other small tutoring companies seeing gross profits of between 60 and 90 percent.

#3: There is greater support for tutoring entrepreneurs

Tutoring IndustryIndividuals looking to start their own tutoring business are finding increased support. While some choose to open local sites of national and global franchises for the simple, turnkey ease of business ownership, others jump in and get started on their own.

Companies like Rich Tutor Tutoring Systems pull from many years of experience to give business owners the support and programs they need to find themselves at the top. Rich Tutor offers four essential elements that can be purchased alone or as a package to help new business owners position themselves for success.

  1. Rich Tutor Systems: The pre-built start-up program covers business ownership and scheduling to academic worksheets and learning strategies, and everything in between.
  2. Rich Tutor Websites: Technology professionals will build you a user-friendly, attractive Web site that stands out and encourages customer engagement.
  3. Rich Tutor Marketing: A digital marketing team with experience and expertise can help you spread the word about your new business.
  4. Rich Tutor Panel: Through a partnership with TutorCruncher, business owners have a comprehensive platform for running their business.

#4: More students need more support

Some projections put the market size for tutoring in the United States at more than 10 billion individuals; with a worldwide market availability of more than 100 billion. Those numbers will only continue to grow in the future as more individuals find themselves needing educational assistance for a variety of reasons.

In Canada, 2015 data shows that math scores for 15-year-olds have dropped 14 percent in the last ten years. Parents are looking for the extra help their children need to be successful in their studies by filling the gaps in classroom education.

#5: Tutoring offers greater opportunities for growth

Tutoring companies are offering more than just extra help for math or reading; companies are working with students in early elementary school to get them ready for school entrance exams, leading kindergarten readiness programs, organizing study groups for standardized tests, and helping adult learners make career changes.

Additionally, students are able to take private lessons in art, music, and dance, adding to the education and practice they receive in school. This wider breadth of availabilities is good news for individuals looking to start a tutoring business, as each person can focus on their strengths. Former math teachers can concentrate their tutoring efforts on helping students with math, and still being able to earn a profit.

These individuals are also, then, uniquely positioned for success should they choose to leave tutoring and return to previous careers. Tutors typically further their education and studies, and when they make that career leap, have kept up with the advances being made in the field.

#6: Customers are willing to spend for results

Tutoring IndustryParents want the best for their children, and if they feel like the students aren’t getting the education they need to be able to do well in school or life, many seek out private tutors. In the United States, these parents are paying between $50 and $300 per hour for educational supplementation for their children, depending on the location and subject.

Adult learners, on the other hand, often have more disposable income, and are usually taking courses with the goal of bettering themselves, enhancing their employability, or changing careers. As a result, they want to succeed, and are willing to spend extra money for the help they need.

#7: Standards continue to change, and many parents can’t keep up

Each country has its base of standardized tests and educational requirements, and in many countries, these exams and requirements continue to change, with different measures being implemented each year. Teachers themselves have grown weary of centering their instruction around a test, and are continually in trainings and seminars to learn how to administer these exams. Not only does this take away from their teaching time, but leaves them needing to implement new learning methods in the classroom.

As a result, the way today’s students are learning is vastly different than how their parents were instructed. For example, many parents in the United States have expressed frustration with certain changes in math curriculum that add steps to solving each problem. Not only does this over-complicate the system, but parents are unable to help their children learn and develop.

Tutors, on the other hand, make it their business to stay on top of these changes and updates, and parents appreciate and are eager to find tutors who can make sure their customers understand the new systems of learning.

#8: Online tutoring continues to grow

From programs that must be administered by schools to private individuals, the number of tutors who offer online tutoring for students has grown, and will continue to do so. Using just a microphone, headset, video camera, and a program like Skype, Google, or other video chat, parents can plug in their credit card number and connect their student with tutors around the world.

Entrepreneurs looking to start a tutoring business have found that by including online tutoring in their options, they are increasing their online reach and availability, leading to a greater audience size and growth potential.

#9: Low overhead costs lead to greater profits

Tutoring IndustryTutoring is one home-based business that doesn’t require a sizable initial investment if done privately. Individuals can begin working out of their home, or by renting space, and typically have lower costs for getting their company up and running.

As the businesses grow, many companies have found that it’s important to funnel those profits back into fair wages for the tutors working under the company. Students tend to bond with their tutors, and form a relationship with that individual, not the parent tutoring company. When tutors leave their companies, students tend to leave that company to follow the tutor. This is why, when there are so few expenses, tutoring companies that have employed tutors should pay them competitively.

#10: Tutors make a direct impact on the life of a student

As a tutor, you’ll be a positive role model for your customers. Whether you are helping to mold the mind of a young learner, or helping an adult ace their exam and enter a new career field, you will be impacting that individual’s future, as well as their relationships with their communities, industries, and colleagues.

Through working with a tutor, students are able to find a more tailored learning experience that encourages performance and personal growth, enhancing their understanding of the subject and possibly changing their future career options and lives.

#11: Tutoring offers an exciting, personalized company

There aren’t many other fields where you can run your own business, doing exactly what you love, with no outside regulatory requirements or hefty investments, and such growth potential. In tutoring, you get to use your talents and skills to directly impact not only your family, but also the futures of each and every customer.