You have been researching how to start a tutoring business and have decided that you are ready to start creating your tutoring business plan. This will act as a blueprint for your business, so it’s pretty vital to your success, and not having a well-thought-out tutoring business plan may spell disaster for your attempt.
One of the best ways to tutor your students are by using examples, so you can apply this to creating an effective tutoring business plan. Check out how other tutoring professionals are structuring their business plans, and get ideas on how your business should be structured. You may find that they noted something that you did not think of when brainstorming for your business or might notice that they missed something you’ve already thought about adding to your business plan.
The basic components of a business plan are the executive summary, company summary, services, market analysis summary, strategy and implementation summary, management summary, and the financial plan. You should have a mission or vision statement for your business. There should be a detailed description of your tutoring service along with a description of how your business will offer something different from your competitors. A market analysis that goes over your competitors and the current market conditions for tutors, such as a large number of schools in your area. A description of your management structure, which may just be you as a sole proprietor. Your future marketing plans. You should also have an honest SWOT analysis. Also, you should have a cash flow statement along with your revenue projections.
One area that people may falter when starting a new business is with their marketing. You should fully take advantage of any marketing opportunities that exist within your community. For instance, purchasing some tutoring business cards that you carry around with you everywhere opens a few avenues of marketing. You can hand them out to people that you meet during your day-to-day comings and goings, and if you just happen to see an open free bulletin board that is for local businesses, you can tack up a few rather than hoping you remember to bring a flyer by later. Think about handing out materials including your new tutoring business cards to guidance counselors that might want to pass along your services to parents of students that might be struggling. Also, look at any newsletters or circulars that you come into contact with as they may welcome ads for local businesses at a lower price than larger newspapers and magazines. Create a free blog or website through Wix or WordPress. Look into putting yourself into an online tutor directory or try Craigslist. Just be safe with your online marketing efforts. Think outside of the box to start bringing in customers.
A SWOT analysis is really picking apart your idea for a tutoring business. This is an essential portion of any business plan, and if you’re thinking about skipping the tutoring business plan, you should still do this analysis. You are going to need to be brutally honest in this analysis to be as realistic about your business as possible. SWOT stands for strengths, weaknesses, opportunities, and threats. The strengths section means that you have to compare your plan to what currently exists in the market, and examine what makes you better than your competition. Are you offering more subjects? Do you have advanced skills?
The weaknesses section is where you look at any potential problems you think you might have with your business. For example, you are not up to date on HTML5, but want to teach coding or if there are already a large number of tutors in your small area.
The opportunities section is examining what growth potential there is for your business when it comes to finding more students. For example, are you living in an area with a growing population of families with young children or an area where most young families are absent?
Finally, the threats section can be items from other sections of the SWOT analysis, such as weaknesses and lack of opportunities. These are anything that could derail your business.
Accounting is one of the least favorite parts of most people’s business plans, but it shouldn’t be neglected. For the purpose of your tutoring business plan, you should be familiar with cash flow statements and revenue projections at the very least. The cash flow statement shows your operating costs, investing costs, financing activities, and any supplemental information. Since you are just getting started, this sheet should be relatively easy to start. Revenue projections can be created with your Microsoft Excel spreadsheets that you are probably already familiar with, and will help you to estimate your future earnings. It will be helpful to have information on any clients you have already landed, and the amounts that you intend to charge. This may be more helpful when you have more data points to calculate.
Learning how to start a tutoring business and create an effective tutoring business plan can be made easier by doing your research.