How to Write a Tutoring Company Business Plan
The tutoring industry has been growing steadily over the last decade, which has increased the demand for tutoring business plans, tutoring business plan templates, and tutoring proforma financial projections.
There are so many reasons for the elevated demand. First, more and more adults are heading back to higher education after years of absence. As more adults enter colleges and universities, the need for tutors to help refresh basic writing, studying, and test-taking skills are at a premium. Further, specialized subjects, such as finance and accounting, all too often require professional tutoring. Finally, traditional tutors for elementary school, high school, and middle school are still in high demand. Regardless of why there are an increased number of tutor entrepreneurs seeking out tutoring company business plans, having a well-prepared business plan and pro forma financial projections is an excellent strategic move. From this, our tutoring company business plan writer has come up with some tips and tricks to help tutors write their own tutoring company business plans, business plan templates, and pro forma financial projections (2/22).
Executive Summary for a Tutoring Company Business Plan.
The executive summary section of a tutoring company business plan should summarize the internal and external aspects of an organization. However, specifically for tutoring the company's business plan, business plan writers should definitely identify core competencies within the tutoring company. A core competency for a tutoring company may include subjects taught, strategies utilized when instructing students, and proven practices to help students best grasp pot material. By embracing and discussing this information in the executive summary, the business plan writer is able to show the readers up front why their organization is prepared to succeed in the long run.
Company Information and Location for a Tutor Business.
The company information section of the tutoring company business plan should start by explaining the problem that the organization wishes to solve. Once this is done, then the organization should broadly summarize how they plan to operate and wherein their company section. Unfortunately, some tutoring companies fail to discuss specific structures or strategies used in tutoring sessions in their business plan. This is a little bit different compared to most industries. However, though an important key to success in the tutoring industry is following a proven tutoring session structure, because of this importance, make sure to highlight and expand upon this topic in your company information section.
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Product Description and Competitive Advantages for a Tutor Business
The product description section of a tutoring company's business plan should include a discussion about subjects taught by their tutors. Popular subjects taught by tutoring companies include science, math, and writing. Further, tutoring companies are continually specializing in their services for specific subjects like finance, economics, and event management. No matter what subjects are taught or specialized, make sure to explain not only the subjects' top but also levels of education services well.
Target Market for a Tutor Business
The target market for a tutoring business more often than not depends upon the subject matter taught. For example, if an organization specializes in math, science, and writing tutoring, then its target market could be students struggling in grades from K to doctoral students; however, if a tutoring company chooses to specialize in specific subjects like finance or economics. Then, their target market is going to be much more narrow, like college students taking finance or economic courses.
Industry research for a Tutoring Business Plan
When participating in industrial research, most tutoring company owners go directly to examine the local competition. However, this practice often misses the opportunity to examine the tutoring industry on a national or even international scale. A better strategy for doing industrial research is to start with researching industry trade magazines for the tutoring industry or reviewing videos published by large tutoring organizations. Once a firm grasp has had on national trends for tutoring, then examine local competition from the lens of a national perspective. In doing this, tutoring company business owners are able to quickly ascertain which tutoring organizations are most aligned with industry expectations and growth. From this observation, business owners can then research and target high-quality competitors for industry analysis.
Owner and Management Section of a Tutor Business Plan
As for the owner and management section of a tutoring company business plan, try starting this section by summarizing your resume. In doing this, make sure to highlight educational achievements as well as other tutoring conducted. By following the strategy, a business owner is able to show the reader how their educational skills and achievements are best aligned with the future growth and prosperity of their tutoring company.
Funding Request for a Tutor Business Plan
The tutoring company funding request section of a business plan should cover all funding needs of the organization at startup and through the first several months of operations. An interesting phenomenon in the tutoring company industry is that organizations may start tutoring using a notebook, textbook, and blank sheets of paper. However, other tutoring organizations go all out by purchasing buildings, conducting buildout, stocking the building with high-tech computers, and hiring the best of the best tutors. Regardless of which end of the spectrum, you foresee your organization starting, make sure to identify how much funds will be needed to start your tutoring company and where the money will be spent.
Financials for a Tutoring Company Business Plan.
When creating a financial statement or financials for a tutoring company, start with identifying how many tutors the organization wishes to start with. Next, determine how many hours of tutoring each tutor will do on a daily basis. From this, now identify the average hourly rate charged and paid to each tutor. Once this is done, a tutoring company business owner is unable to quickly calculate gross profits and align the gross profits with monthly costs. At the end of the day, a sound rudimentary financial profit and loss statement may be created.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author