Tutoring Business Plan Template
If you want to start a Tutoring business or expand your current Tutoring business, you need a business plan.
The following Tutoring business plan template gives you the key elements to include in a winning Tutoring Company business plan.
Tutoring Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a Tutoring business in [Location]. It offers tutoring services to children ranging from preschool to high school on subjects like Math, Science and English. The company aims to help children explore their true potential and at the same time strengthen their weaknesses in a way that will make learning fun.
Products Served
[Company Name] is dedicated to teaching the children in [Location] and making a positive impact on their lives. In order to achieve this, we offer many services including the following:
- In-home tutoring
- Online tutoring
- School tutoring
- Small Group tutoring
Customer Focus
[Organization Name] primarily serves students within a 5 mile radius of [location]. The demographics of these customers are as follows:
- 55,376 residents
- Average income of $95,500
- 61% married
- Children Under the age of 18: 24,987
- Median age: 30 years
Management Team
[Founder Name] will act as the overall head and manager of [Company Name]. She graduated with a degree in education from [University]. Along with her is her good friend [Name 1] who will be handling the legalities and accounting part of the business.
Although [Founder] has no experience in managing a business yet, but, she has started taking up business management courses at [University Name] to deepen her business knowledge.
[Company Name] also has an admin staff who takes care of all the administrative tasks including marketing the company’s services and customer care.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Location] does not have a lot of tutoring services that offer affordable, quality tutoring services for students.
- Our teachers are passionate and skillful. They can easily adapt to any learning style a child may have.
- Personalized and Student-focused teaching styles
- The management team has a track record of success achieving the goals of our organization and other organizations for which we have worked.
- Members of our community fully support and believe in our mission.
Financial Highlights
[Company Name] is currently seeking $180,000 in order to hire new staff, expand its program offerings, school materials, and lease costs.
Specifically, these funds will be used as follows:
- Salaries: $50,000
- Educational Materials: $40,000
- Administrative Expenses: $90,000 to pay for lease costs, ongoing operational expenses, marketing.
Top line projections over the next five years are as follows:
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
II. Company Overview
Who is [Company Name]?
[Company Name] offers tutoring services to children at different levels on subjects like Math, Science, English, and more. The company aims to help the children in [Location] explore their true potential and at the same time strengthen their weaker areas in a way that will make learning fun.
At [Company Name], we acknowledge that every child has their own way of learning. And so, although we follow specific modules and curriculum, our teaching methods may differ from one child to another. We are confident that our tutoring services can offer close and personal learning experiences for all of our students. We build a safe and secure environment not only for the children to learn, but also for the parents to trust.
[Company Name]’s History
[Company Name] started in [Year] shortly after [Founder], an education major, started working as a part-time teacher in [school]. [Founder], being really good with people, instantly bonded with her classes and became really close with her students. Shortly after, parents started coming to her and hiring to tutor and assist their children.
The students she first tutored showed positive results in their academic performance, making more parents want to avail her services. Because of the high demand, she started training other tutors and taught them how to properly teach the children and to address their specific needs.
In [Month, Year], [Company Name] became an official company that offers tutoring services for children at different levels.
[Company Name]’s Products/Services
[Company Name] is dedicated to teaching the children of the community and making a positive impact on their lives.
In order to achieve this, we offer many services including the following:
- In-home tutoring
- Online tutoring
- School tutoring
- Small Group tutoring
III. Industry Analysis
Over most of the past five years, the Tutoring industry has experienced steadily increasing revenue. Tutoring services have grown rapidly, capitalizing on government funds and strong economic growth.
Industry revenue is projected to continue to experience steady growth as disposable income rises and growth opportunities, especially within the online market, present themselves. Revenue will also likely be bolstered by the increasing number of students enrolling in discretionary services.
An increase in the number of total students over the next five years is also expected to positively affect industry demand. Many parents have started to use tutoring to help their children get ahead academically. Consequently, the enrollment of younger students is expected to increase. This is an expanding market for the industry and will likely provide a platform for growth over the next five years.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the families and the children in [Location]. The area is mostly populated by young couples and families that have disposable income and can pay for tutoring services.
The precise demographics of the town in which our location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We primarily target the following three customer segments:
- Parents: We will offer a safe environment where the children can learn and where parents will feel comfortable to entrust us with their children’s learning.
- Students (Preschool through High School): Children aged 3 to 17 are our target enrollees. We will build a child-friendly and fun atmosphere where they can freely express their thoughts and feelings.
- Schools: [Company Name] will build a reputation that will make schools want to partner with us and recommend our services.
V. Competitive Analysis
Direct & Indirect Competitors
Tutors Inc.
Tutors Inc. provides tutoring and other supplemental educational services (SES) to children attending K-12 schools through learning centers and over the internet. The company provides tutoring services in just under 700 centers across the United States. They provide tutoring in reading, writing, math and study skills, while also offering test prep for college entrance exams. Its online segment offers real-time online tutoring for students and features certified teachers. This division also provides tutoring and other SES to students in public and private schools through government-funded contracts.
Oscar Tutors
Oscar Tutors predominantly provides tutoring for mathematics and reading. Moreover, while students range from preschool to high school ages, Oscar Tutors primarily targets the elementary school age market, as more than 60.0% of its students are in grades two to six.
Last year, an estimated 300,000 students studied at 1,532 Oscar Tutors centers throughout the United States. Oscar Tutors has been named the leading franchise in the after-school education industry by Entrepreneur magazine over the past seven years.
City Tutors
City Tutor is a collective of education specialists and school psychologists that serves students with all types of learning needs (ADHD, learning disabilities and gifted students). They provide support in core subjects from early literacy and numeracy to understanding complex texts, research papers, and calculus. The company develops a 1 to 1 tutoring program based on your student’s needs. They also use Executive Function to perform activities such as planning, organizing, strategizing, paying attention to and remembering details, and managing time and space.
Competitive Pricing
| Tutoring Hourly Fee (K-3rd grade) | Tutoring Hourly Fee (4th-8th grade) | Tutoring Hourly Fee (high school) | |
|---|---|---|---|
| Tutors Inc. | $50 | $55 | $65 |
| Oscar Tutors | $45 | $50 | $75 |
| City Tutors | $40 | $55 | $75 |
Competitive Advantage
There are a few tutoring service companies in [Location], but none of them provide the same benefits and quality that we at [Company Name] provide, specifically the following:
- Location: [Company Name]’s location is near the center of town, giving members of our community easy access for the parents and children.
- Passionate and Skillful Teachers: [Company Name] will ensure to hire those with a strong teaching background and are gentle and skillful in handling all children, regardless of age or skill level.
- Personalized and Student-focused teaching methods
- Affordable, quality tutoring services: Most of the tutoring services in the area offer their services at a very expensive price. Our fees will be moderately low so that we can reach a broader demographic.
VI. Marketing Plan
The [Company Name] Brand
[Company Name] brand will focus on the company’s unique value proposition:
- Providing premium teaching services and care to students at an affordable price
- Providing a safe and fun place for children to learn
- Strengthening students’ weaker subject areas
- Giving parents the assurance that their children will reach their full potential
Promotions Strategy
[Company Name] promotes itself to the community in order to reach families and couples with children who are in preschool up to high school. The organization’s promotions strategy to reach these individuals includes:
Direct Mail
[School Name] blankets neighborhoods with direct mail pieces. These pieces will provide general information on [Company Name], and will share program offerings and our unique value proposition.
Advertising
[Company Name] will execute advertising in local newspapers, magazines and on radio stations.
Event Marketing
[Company Name] will sponsor community events in order to introduce the community to our tutors and gain brand awareness.
Ongoing Customer Communications
[Company Name] maintains a website and publishes a monthly email newsletter to tell clients about new events, promotions and milestones.
Referrals
[Company Name] will establish a good reputation and will always providequality tutoring services so parents and students will recommend our company to their friends or classmates.
Click below to see each section of our free tutoring business plan template. You can also click here to get our tutoring business plan pdf.
VII. Operations Plan
Functional Roles
In order to execute on [Company Name]’s business model, the organization needs to perform many functions including the following:
Service Functions
- Tutors
- Marketing
- Curriculum Coordinator
Administrative Functions
- General & Administrative functions such as bookkeeping, legal and marketing etc.
- Customer service and management
Milestones
[Company name]’s long term goal is to offer the best quality tutoring services to children aged 3 to 17, in the [city] area. We seek to be the standard by which other providers are judged.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Founder Name] will act as the overall head and manager of [Company Name]. She has a degree in education and has worked as a teacher in [School 1] and a substitute teacher in [School 2]. Along with her is her good friend [Name 1] who will be handling the legalities and accounting part of the business.
Although [Founder] has no experience in managing a business, she has started taking business management courses at [University Name] to deepen her business knowledge.
[Company Name] also has an admin staff who takes care of all the administrative tasks including marketing the company’s services and customer care.
Hiring Plan
In addition to our current team, we plan to hire the following personnel:
- 3 Full-time tutors
- 2 Substitute tutors
- Sales and Marketing Director
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues come from student fees.
The major costs for the company will be staffing, lease and educational materials. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $180,000 in order to hire new staff, expand its program offerings, school materials, and lease costs.
Specifically, these funds will be used as follows:
- Salaries: $50,000
- Educational Materials: $40,000
- Administrative Expenses: $90,000 to pay for lease costs, ongoing operational expenses, marketing.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| Year 1 | 10 |
| Year 2 | 15 |
| Year 3 | 20 |
| Year 4 | 25 |
| Year 5 | 30 |
| Average session price | $75 |
| Annual Lease ( per location) | 50000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
