If you are planning to start a tutoring business, the costs are relatively low. This of course, depends on if you decide to start the business on your own or bring on a big team at first.
We’ve outlined two common scenarios for “pre-opening” costs of a tutoring business and outline the costs you should expect for each:
- The estimated minimum starting cost = $15
- The estimated maximum starting cost = $11,100
The average starting costs are $7,282.
|Startup Expenses: Average expenses incurred when starting a tutoring business.||Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs.||Max Startup Costs: You have started with 1+ other team members.|
|Employee & Freelancer Expenses|
|Payroll: This number depends on if you decide to pay yourself a salary upfront and how many employees you have on payroll. At first, many founders take on all responsibilities until the business is up and running. You can always hire down the road when you understand where you need help. Keep in mind, if you do plan to pay yourself, the average salary founders make is $50K.||$0||$4,000|
|Total Employee & Freelancer Expenses||$0 (min)||$4,000 (max)|
|Website builder: The cost of your website will vary depending on which platform you choose. There are many website builders on the market, so it's important you choose the right one for your business and overall goals. To learn more about your options + how to build a great website, check out this article.||$15||$100|
|Web Designer: If you have the necessary skills to design your website, then it may not be necessary for you to hire someone. However, if you do decide to go that route, make sure you establish an understanding of upfront cost, design and what the ongoing costs will be to manage the site. Here is what to expect when hiring a web designer.||$0||$6,000|
|Total Website Costs||$15 (min)||$6,100 (max)|
|Specific Industry Expenses|
|*Tutor-Specific Certification *: This is typically an optional cost. Becoming certified can help with credibility and acquiring new clients||$0||$1,000|
|Total Specific Industry Expenses||$0 (min)||$1,000 (max)|
|Total Starting Costs||$15 (min)||$11,100 (max)|