If you're looking for a way to earn some extra cash, look no further than tutoring. Learning new skills is not only fun but also can be very rewarding. I'm sure many of us have had that one teacher who made the subject so much more interesting and exciting than it would've been if we were just sitting in class reading out of the book.
That's what tutor/mentor-ship can do for you! Allow yourself to get back into your education with someone who has experience teaching the material and get paid while doing it!
Do you want to start tutoring in Australia? Are you wondering how long it will take before you can get started? Then, you’ve come to the right place! This blog post is all about getting your tutor business up and running.
I'll be talking through what qualifications are needed, which companies offer tutoring services and some of the things that might happen on your first day as a tutor. Don't worry, though - I'll do my best to answer any questions or concerns you have along the way. And by the end of this post, you should be well on your way to starting your own business!
Tutoring Business Basics
If you enjoy helping people learn on a one-on-one basis and are looking for a business opportunity, you may want to consider tutoring. You'll gain the satisfaction of helping others overcome difficulties in learning a particular subject while earning income. In addition, knowing the basics can help you get your tutoring business started.
The cost to start your tutoring business will largely depend on the type of business you open, according to the Home Business Center, Inc. If you plan to use free space such as a home or public library, you can get started for under $1,000.
If you need to rent space and employ other tutors, you should have between $5,000 and $10,000 available. A large online tutoring business may require between $15,000 and $25,000 to pay for office expenses, hiring additional tutors, website development and marketing expenses.
It is not necessary to have prior teaching or tutoring experience, although it is helpful. For example, suppose you have strong expertise such as business experience or educational background in English or math. In that case, you can use this as a substitute for tutoring experience. As of 2010, no states require tutoring certification, although your state may require you to get a business permit if you are operating the business out of your home.
A good way to get business is to start by contacting your local schools and offer your services. If you're a parent, ask your kids if they have any classmates who may be struggling with a certain subject. You can also network with other parents at PTA meetings and post fliers at libraries. If you have a marketing budget, you should advertise in the local newspaper or purchase ad space on education-oriented websites.
Home Business Center indicates that online tutoring might run $20 to $30 per hour, and in-person could be $30 to $60 per hour. Private tutor academies typically charge between $40 and $50 per hour for group sessions.
If you decide to charge $40 per hour and work 15 hours per week during the school year, or roughly 36 weeks, you can earn a potential $21,600 per year. Hourly rates in your area might be higher or lower, and you may also decide to work on more of a full-time basis.
In addition to teaching skills, good people skills are essential for success. Parents will expect to see improvement in their kids' performance and may put additional pressure on you, so you will need to be able to deal with them effectively. If you do a good job and develop rapport with the parents, you may be able to gain positive word-of-mouth advertising.
Starting Your Own Tutoring Business
Parents who are concerned about their child's academic performance may seek additional help in the form of a private tutor. Tutors may also be employed by parents who choose to homeschool for their children. If you possess a teaching background or have expertise in specific subject areas, becoming a tutor is a way for you to start your own small business.
Tutoring allows you to apply your teaching skills in a more relaxed atmosphere than in a classroom setting. Sessions can take place virtually anywhere, such as in your home, the home of the student or at a public library. In addition, parents may use tutors not only to help their children who are weak in certain subjects but also to give them an edge by helping them become better prepared for college.
Tutoring allows you to experience the rewards of helping students learn on a one-on-one basis, as opposed to classroom teaching, where you may not have the time to work with students individually. You'll also have some flexibility in setting your schedule, although you'll typically need to work evenings and weekends when students are not in class. In addition, tutoring is a low-cost business to start, as students supply most of the materials, such as textbooks.
You can use a number of methods to find students to tutor. First, prepare a resume that lists the subjects you wish to teach as well as your teaching qualifications. Next, stop by schools you're interested in and inquire about their tutoring needs. If you know any school teachers, touch base with them to see if they have any students who may need assistance. Finally, network with parents in your neighbourhood or at gatherings like PTA meetings.
You need no specific qualifications to become a private tutor, although you can expect that most parents would like you to possess at least a four-year college degree. Practical experience can also be helpful, such as using your real-world business experience to tutor a high school business class student. If you don't want to tutor on a full-time basis, you can start a part-time tutoring business to supplement your income.
As a private tutor, you will determine the rates that you charge. According to the Math and Reading Help website, typical rates range from $15 to $50 per hour. If you tutored 20 hours per week at $25 per hour for 36 weeks per year (the approximate length of the average school year), for example, your annual income would be $18,000.
How Do I Set Up a Tutoring Business?
As the school curriculum gets more difficult, many parents look at sending their children to tutoring schools. As a result, tutoring schools are now becoming lucrative businesses, with many education franchises now well-established across Australia.
Tutoring is an incredibly competitive industry. Whether you are tutoring one-on-one or are looking to set up a tutoring business, you should understand your legal obligations. This article will go through the steps you should take if you are considering setting up a tutoring business.
Check Restraint of Trade
If you are a teacher or employed as a tutor at an agency, make sure that you are not breaching a restraint of trade or non-compete clause in setting up a tutoring business. For example, your employment contract may state that you cannot work for, or set up, a tutoring business that competes with your employment agreement. Furthermore, some restraint of trade clauses have a geographical limit (e.g. 50 kilometres from a particular location) or a time limit.
Choose a Tutoring Business Structure
A key step in setting up a tutoring business is understanding what type of business structure you should establish. Many tutoring businesses start as small operators (hiring a few tutors) or are independent sole-proprietor tutors. If you are looking to set up a tutoring business individually, a sole trader structure may be best.
A sole trader business structure allows you to have full control over your assets and business decisions. Furthermore, it is also relatively easy to establish. You can use your individual tax file number (TFN) to lodge tax returns, and you are not required to have a separate business bank account.
If you are looking to set up a tutoring business with other tutors, a partnership or company structure may be more suitable. A partnership allows you to run the tutoring business jointly with another person (up to 20 people). You will be required to apply for an Australian Business Number (ABN) if you are carrying on an enterprise. If you have plans to expand your tutoring business and have limited liability for the directors, a company structure will be more suitable.
Franchising is now also a common expansion method for tutoring businesses. You can choose to buy a tutoring franchise if you do not want to establish your own business. Furthermore, the franchising model means that the franchisor controls the branding, marketing and management practices. This allows you to focus on the day-to-day operations of running the business.
Draft Tutoring Contracts
With the exception of a few large operators, most tutoring businesses are small and usually arranged privately with one-on-one sessions. As such, tutoring contracts in private settings are uncommon. However, where there is a delivery of services between a tutor and a student, it is advisable to have a written tutoring agreement. This will clearly set out the terms of the relationship. For tutoring businesses, contracts should disclose all associated fees as well as descriptions of the service.
It is advisable parents read any contracts carefully before signing, particularly for tutoring services offered by overseas institutions or online platforms. Research the organisation, ensure they have contact information and are accredited. The Australian Tutoring Association (ATA) is the peak national body representing tutors and tutoring organisations. The ATA requires all its members, who are formally accredited, to abide by a Code of Conduct.
If you are hiring tutors, make sure that all tutors sign an employment contract. Whether tutors work part-time or are higher education students, an employment contract with each tutor should be signed.
Where the classification of tutors are as contractors, a contractual agreement should be drafted. This will ensure that there are clear responsibilities and expectations of your tutors. Unlike tutors that the organisation employs, independent contractors set their fees and working arrangements. They can also work for more than one tutoring company.
Tutoring businesses continue to expand in popularity as parents seek to provide their children with a competitive advantage in the classroom. In the past five years, online tutoring business models have become readily accessible compared to traditional face-to-face tutoring services.
If you are looking to set up a tutoring business, understand the business structures available to you and whether you are breaching any potential restraints of trade. Moreover, you should have the right legal contracts drafted to protect you and your employees.
How To Start A Tutoring Business
Did you know that your passion for education can help you earn extra income? Tutoring is a rewarding and worthwhile venture for those who love to teach. This guide will take you through all the steps of setting up your very own tutoring business, including all the equipment and legal admin you'll need to get sorted.
What Is A Tutoring Business?
A tutoring business supports students academically. A tutor is knowledgeable or has defined expertise in a particular subject or set of subjects. They do not have to be teachers, as many tutors are undergraduate students or professionals in other industries. They assist students who struggle in their school subjects or want to improve their results.
How To Start A Tutoring Business
Here's what you need to do to get your tutoring business up and running:
- Write a business plan. Work on a robust business plan that indicates the competitive market, estimated costs, pricing for your services, and potential business location.
- Choose a business name and logo. Creating a name and logo is essential to your business's marketing. A business name should be easy to remember and memorable for your clients. You will also need to register your business name with the Australian Securities and Investment Commission (ASIC). You can engage the services of a graphic designer to create a logo promoting your business or use tools like Canva to create your own.
- Fulfil your legal requirements. Before opening up a shop, register your business, decide on a business structure and get the necessary legal documents sorted (we cover these steps in more detail below).
- Consider loan options. Unless you're a home-based or mobile tutor, you might need to invest in a business location. Additionally, your tutoring will require some equipment similar to that of a classroom. Again, a loan could help with these expenses.
- Set up your classroom. Make a list of all the equipment and computer hardware, and software you will need to conduct tutoring lessons.
- Market your business. Being smart with marketing will help your business thrive. Consider advertisements, list your services in forums and online job sites, and reach out to your friends and family.
Skills Needed To Start A Tutoring Business
A good tutor improves students’ knowledge and teaches them how to study and prepare for examinations effectively. Hence, a tutor should be able to listen and communicate strategies and encouragement to their students. Often, a student will not grasp a certain concept on the first or second try. This requires patience and a creative streak to adapt concepts to a student's learning style.
Tutors should also teach students time management techniques and help develop a revision plan and exam tactics. A tutor will facilitate independent and critical thinking, which students can use to understand and utilise their individual learning styles. Tutors generally do not keep the standard 9 to 5 working hours. Many tutors are hired to work with students after school hours, which might mean late-night tutoring sessions or weekends.
Courses Or Qualifications To Start A Tutoring Business
There is no required qualification to become a tutor. However, experienced tutors have highly sought after. This doesn't necessarily mean you should have a teaching degree, but you should at least have a Senior Secondary Certificate of Education (SSCE) from completing high school.
A tutor should also be familiar with teaching techniques and know-how to pass on knowledge to a wide range of students. Usually, tutors are hired to teach math, English and science from primary school through to high school.
If you are looking to get a formal degree, consider a Bachelor of Educational Studies, which takes three years to complete when studying full-time. Another option is to apply for certification from the Australian Tutoring Association or Accredited Tutor.
Equipment And Software Needed To Start A Tutoring Business
If you intend to start a home-based tutoring business, you will need to invest in bulk supplies of pens, pencils, markers, rulers, papers, notebooks and folders. In addition, you will need some workbooks and notebooks for record-keeping.
Other equipment to invest in is a reliable computer set-up, a good webcam and microphone, and a strong Internet connection. You can choose between purchasing a whiteboard or using a tablet or digital drawing pad and stylus as a virtual whiteboard.
On top of these, you should consider downloading or investing in some tutoring software such as:
- Video calling software
- Google Hangouts
- Whiteboard software
- Drawp for School
- Document sharing software
- Google Docs
- Online tutoring software
- Acuity Scheduling
Loan Options For A Tutoring Business
Once you have decided on a tutoring niche and your business location, the next step is to calculate your starting costs. This will help you determine how much starting capital you will need and if you'll need to consider a loan.
If you're open to joining a franchise, it can sometimes be cheaper to join a tutoring franchise that provides you with ongoing support and branding, with an initial investment as low as $1,000. However, if you want to control your business, you can choose to opt for a small business loan or a personal loan.
How To Structure A Tutoring Business
There are three general types of business structures to consider when starting a business in Australia.
If you want to start your tutoring business as an individual, you can register as a Sole Trader. You will have full control of the business and its assets.
If you're looking to start the tutoring business with a friend or a partner, you might consider a Partnership business as it allows shared decision making and financial liabilities. A Partnership can include up to 20 people.
Setting up as a Company enables you to expand your business and contains a possible tax deduction. Though a Company entails more paperwork and up-front costs, it limits your personal liability.
Legal Documents Needed To Start A Tutoring Business
- Working With Children Check. It is vital to apply for a Working With Children Check (WWCC), a requirement for anyone working or volunteering in child-related services. This check will either give you a clearance to work with children for five years or bar you from work.
- Insurance. Investing in insurance can be a good precautionary measure for your business. This insurance should cover potential property damage, accidental injury, erroneous advice the tutor may provide and customer dissatisfaction with your tutoring service. The insurances you should consider are Professional Indemnity Insurance, Public Liability Insurance, Business Insurance, Equipment Insurance and Employer's Liability Insurance.
- Tutoring Agreement. To ensure your service is adequately compensated, it is important to have a Tutoring Agreement in place. An agreement outlines the relationship between the tutor and the student and the details of the tutoring services. Additionally, the agreement can include clauses on limitation of liability, intellectual property protection, termination and governing law. Usually, the Tutoring Agreement will require signatures from the student's parents or guardian.
- Employment Contract. If your tutoring business employs other tutors, you will need to have an Employment Contract outlining the terms of employment and the employee and employer's obligations.
How To Find Students For Your Tutoring Business
There are several marketing tools online to help you produce brochures and posters, search engine optimisation (SEO) marketing and social media content.
An excellent place to start is reaching out to your local community and posting online advertisements via Facebook and Google Ads. Register your business with Google My Business, which allows people in the vicinity to find your services. Offer study materials, study notes or workbooks for free as a huge bonus.
You will need to continuously work on increasing your chance to be picked by students and their parents. For example, you could start by providing your services at a discount to friends and family and then ask them to leave testimonials and reviews on your website.
Students in need of tutors list jobs on websites such as Tutors Fields, Airtasker or the Bored of Studies online forum. These are hassle-free job sites that put you in touch with people in need of your services.
How Much Should I Charge My Customers?
Generally, tutors charge an hourly rate. This rate can be anywhere from $15 to $80 an hour. Tutors on the lower scale are usually undergraduate students with less experience. For example, if a tutor is hired for "homework help", then the charge can start at $30. A tutor with years of teaching experience and subject matter experience charges from $150 to $200.
When setting a price, consider the supply and demand in your area. For example, if there are already many tutors in your subject matter, you will need to adjust your price accordingly. You will also need to consider the costs of travelling if you are required to have private sessions in the student's home and whether the sessions are one-on-one or with a group.
In Australia, anyone can apply for tutoring jobs. Legally, you do not need a qualification, either in teaching or in your specific field. In order to become a private tutor, you simply need a passion for the subject, some experience and the ability to build rapport with others.
Private tutors across Australia are charging on average between $15 and $80 per hour, according to the latest data released by Tutors Field Australia. In general, the tutors who charge $70 or above usually have at least 10 years of teaching experience.
Private tutoring comes with no legal obligations in Australia. Tutoring students is largely free from regulation and you don't need any specific certificates or qualifications. However, there are certain steps the best tutors will want to take to protect their tutees and themselves.