How to Start a Tutoring Business Online: Step-by-Step Guide

If you have a flair for teaching, starting a private tuition business can be a great side hustle but also a promising long-term venture.

The COVID-19 pandemic triggered numerous changes in the education sector as a result of the shift towards a remote work environment. This naturally created opportunities for private tutors and exposed some of the flaws in the traditional education system. 

Even though the pandemic is now behind us, tutoring businesses continue to thrive in the UK.  However, due to the vast competition in the market, setting up your own tutoring business can turn out to be more challenging than you may think.

In the following sections, we offer a step-by-step guide on how to start a tutoring business online. We cover everything from planning your journey to analysing existing data for growing your student base. 

Tutoring Businesses Today: Facts and Stats

In 2024, the UK’s tuition market represents more than £2 billion of revenue annually.

Hourly rates for tutoring in the UK vary from region to region, reaching £40 in some areas. For example, a private tutor in London earns £39.01 per hour, while a tutor in Hampshire receives £39.56 per hour. 

This means that tutors working 4 hours per day could be making £160 per day, £800 per week (assuming a 5-day working week), and £3,520 per month (assuming a 22-day working month). 

These projections represent a small business with a single tutor and one-on-one tutoring sessions. The returns can be much more attractive if you were to create a tutoring agency with multiple tutors, group sessions, and a range of different subjects.

Rates also differ based on the tutoring subject. Based on studies, the most expensive tutoring subject is Mandarin, costing around £53.00 per hour. Physics is another lucrative opportunity, at £47.50 per hour. 

Tutoring businesses don’t just offer promising profitability potential. They’re also rather inexpensive to start, with extremely low startup costs. Your biggest asset is your knowledge, while the costs you need to think about are limited to things like creating a website, advertising, investing in tutoring software, and other similar expenses.

You won’t need to spend on purchasing inventory, managing offices, and other costly investments associated with most other businesses.

No matter whether you choose to tutor only on school holidays or would rather turn this idea into a successful year-round business, your efforts can be rewarded by following this guide.

Becoming an Online Tutor Explained

Now that we’ve laid out the basics, it’s time to get to the nuts and bolts of this article – how to start a tutoring business. 

Below, you’ll find detailed insights on six of the core steps essential for starting a tutoring business.

Step 1: Plan Your Online Tutoring Business

At the core of starting a tutoring business is careful planning. 

Here are the main planning stages that we recommend going through.

Conduct market research and identify your niche

Start by researching the market and determining the right niche you want to concentrate your efforts on. Identifying your niche will enable you to select the right tutoring business model and teaching style, ultimately leading you to create tutoring services that add value and can’t be neglected. 

As a private tutor, your niche can be determined according to the subject you teach, the grade you tutor, or the type of tutoring you offer. 

Here are some of the most popular options.

Tutoring form:

• Online tutoring;
• Face-to-face tuition;
• 1:1 tutoring;
• Groups sessions;
• Tutoring at the student’s home;
• Tutoring from your personal home; 
• Tutoring from a location set up for the purpose;
• Tutoring franchise. 

Tutoring subject:

• Math tutoring;
• Physics tutoring;
• Languages tutoring;
• Biology tutoring;
• General science tutoring;
• Chemistry tutoring, and others.

The right choice of niche will depend on several factors. First, think about the subject that you’re most knowledgeable about. Next, consider the tutoring model that will be most convenient and profitable. 

Develop a comprehensive business plan

Next, it’s time to develop an extensive business plan for your new tutoring business. 

Your business plan is designed to help you stay organised but is also a fundamental document if you plan to seek funding now or in the future. It’s the best way to present your idea to potential investors. 

The business plan should include information on:

• Business idea;
• Objectives;
• Mission;
• Initial business expenses and startup fees;
• Business budget;
• Competition overview;
• Marketing strategy;
• Financing and financial management; 
• Projected revenue.

In the early days of your planning, obtaining all of this information may not be possible. However, as your idea crystallises, make sure to complete your business plan and refer to it when necessary. 

Define your target audience

Another key component of planning for your tutoring business is defining your target audience.

Think about the age groups that you plan to tutor, their lifestyle, their learning preferences, age group, and other key details that may come in handy when promoting or delivering your services. 

A clear understanding of your ideal student will help you acquire new clients and improve your levels of retention over time. 

Analyse the competition

One of the most powerful ways to build a profitable tutoring business is to analyse your local competition. 

Finding out what other tutors in your space are doing will enable you to achieve the following:

• Determine adequate tutoring rates.
• Create your own business model.
• Gain insights on your ideal customer.
• Find pain points that you can help solve with your services.
• Identify gaps that you could fill.

The best way to get access to this information is to perform online research using search engines like Google and popular forums and platforms like Reddit. You could also use Crunchbase to discover different online tutoring companies and find out more about their services, tutoring practices, marketing, and others. 

We recommend creating a list of 5 to 10 attractive online tutoring businesses and following them on social media channels, YouTube, and any other platforms they’re active on. This will allow you to become familiar with their messaging, monitor customer reviews, see their pricing, and more. 

Set clear goals and milestones

Don’t forget that setting clear goals and milestones for your tutoring company can be a game-changer. 

Running your own tutoring business often means feeling a lot of pressure and possibly sinking into demotivation at times. 

By outlining clear and realistic objectives (both short- and long-term) you can keep track of progress and stick to a plan. 

Step 2: Set Up Your Online Tutoring Platform

The second stage of starting your tutoring business is setting up your online tutoring platform.

Here’s everything you need to know. 

Choose the right online tutoring software

Although tutoring software may not seem like something you need at the beginning, chances are that as your services become more preferred, you’ll need an extra hand with routine tasks.

Tutoring students can become much easier with the right digital solution that can help you take care of administrative tasks, financial management, scheduling, planning, and marketing. For example, a commonly used software is QuickBooks.

Some solutions also have integrated accounting software features that can help you send out invoices to students and monitor payments. 

Set up a professional website

Regardless of the business models you’ve chosen to explore, you’ll also need a professional website to make your tutoring services visible to the world.

Setting up your website doesn’t have to be a long and complex process. However, based on the functions of the website, it could take longer to complete.

Some tutors use their website as an online portfolio, presenting their skills, knowledge, and expertise and informing users about the services they provide. At the same time, others rely on their websites for booking tutoring sessions, which requires a more sophisticated system in the back end.

Regardless, to get started with building a website, you’ll need to purchase a domain name and a hosting plan. Make sure that your domain name reflects your business name, making it easier for people to discover it. 

Ensure a reliable technical setup

When tutoring online, you’re highly reliant on our technical setup. Having this in mind, make sure that everything you’ll need is set up appropriately, minimising chances of disruptions.

Some of the core things to consider include:

• Fast and quality Internet connection;
• Reliable hardware (computers, tablets, webcams, and headsets);
• Secure software (tutoring platforms with video conferencing, screen sharing, and interactive tools);
• Backup systems. 

All of these points are key areas of your technical setup and will determine how effectively you can deliver your tutoring services online. 

Create engaging course materials

Most individuals who choose to work with a private tutor are searching for an alternative way to gain new skills and knowledge to the traditional school framework. This naturally means that the learning process during your online sessions will need to offer something extra.

Get access to the curriculum of the subjects you’ll be teaching and observe exam papers and other official assets. Use them to create your own approach to teaching the essential information.

You can experiment with visual presentations, interactive games, audio, and text that offer unique approaches to traditional concepts. 

Step 3: Establish Your Brand

After you’ve planned your tutoring business and you’ve set up your platforms, it’s time to create a brand.

Having a personal tutoring brand will help you establish a distinct identity on the market, connect with your audience, and attract interest from new students. 

Design a memorable logo

Although some tutoring businesses neglect the importance of a logo, this simple visual representation of your services can help you go a long way. 

A well-designed logo communicates the core values and missions of your business at a glance. It adds an extra layer of professionalism to your company and demonstrates reliability and dedication. 

When creating your logo, make sure you’ve carefully thought about the colour schemes, typography, imagery, and icons you’ll use. 

Craft a compelling personal branding

It’s important to understand that running a successful tutoring service is all about building a personal brand. Identify all that makes your tutoring services unique and special. For example, consider your teaching style, subjects, and other specifics that are likely to resonate with your audience. 

Make sure that your visual identity is consistent throughout different online channels, like email marketing, social media, websites, and more.

Utilise SEO strategies

Last but not least, utilise proven SEO strategies to scale your website and reach more potential clients.

Help more people find out that you offer online tutoring by making your website rank higher than others in search results. There are a few ways to achieve this, including maintaining a high-quality blog, optimising your website for highly searched-for keywords, and others.

Step 4: Legal and Administrative Setup

Once you’ve laid out the foundations of your tutoring business, you’ll need to tackle the legal and administrative aspects of the process. 

Register your business

You may think that tutoring a few students from time to time doesn’t really require establishing a formal business structure. However, providing a service and receiving payments in return requires that you set up a business entity in the UK. 

There are plenty of options to choose from when registering a business, from Limited Liability Company to Sole Proprietor. Each business structure comes with its own set of peculiarities and implications on things like tax obligations, liability, and more.

Make sure that you’re aware of the different options and all related implications.

In most cases, tutors begin as sole proprietors, which is one of the easiest ways to get started. However, there are some drawbacks associated with this business model. For example, one of the main challenges is the inability to keep business and personal finances separate under this structure.

To avoid this, you can create a Limited Liability Company (LLC), which allows you to make a decision between being taxed as a company or a sole proprietor. 

Understand your tax obligations

Running your own business inevitably means that you’ll be subject to tax obligations. The amount of tax you owe and the way you will be required to pay it ultimately comes down to the type of business structure you’ve established.

For example, if you’re self-employed as a tutor, you’ll need to register for Self Assessment with the HMRC. You’ll also need to report your earnings and expenses for each year by submitting a Self Assessment tax return. 

Depending on the amount of money you earn throughout the year, you may need to pay Income Tax and Class 2 and Class 4 National Insurance contributions. 

If you need help in managing your personal and business finances as a tutor, you can always rely on a professional for a consultation on how to proceed. 

Ensure data protection compliance

Running a tutoring company also requires that you’re fully compliant with all data protection regulations. 

For instance, the GDPR (General Data Protection Regulation) lays out strict guidelines on how personal data should be collected, processed, and recorded by all businesses in the UK.

Make sure that you research all applicable laws and requirements related to data protection to avoid legal conflicts and disputes. 

Choose a payment method and consider accounting

As an online tutor, you’ll also need to partner with a reliable payment solution company that will enable you to collect payments seamlessly. 

Before making a decision, compare the payment methods supported by your future partners, the monthly fees, the time necessary for settlement, and other key factors. 

Make sure to create a separate business bank account for your tutoring venture. This will help you keep your business credit score separate from your personal credit score and will differentiate your two accounts. 

As your tutoring services gain popularity, chances are that you’ll also need an experienced accountant who can help you keep track of invoices and payments. 

Step 5: Market Your Tutoring Services

So far, we’ve discussed the initial stages of getting started with your tutoring business. But to make all of these efforts pay off, you’ll need a bullet-proof marketing strategy. 

Whether you rely on a referral system, rewards like free lessons, or networking in your local community, if you plan to grow a successful tutoring business – marketing is a must. 

Build an email marketing strategy

For tutoring businesses, it’s highly rewarding to invest in email marketing. 

A well-structured email campaign can help you educate your potential clients on what they’ll gain from your services and gradually transition them from a lead to a student. 

The good news is that you can utilise a range of different email automation tools that will enable you to quickly and easily schedule emails to different client groups. Make sure to grow your email lists and categorise recipients based on where they are at in the customer lifecycle. 

Include both educational and marketing materials to your email messaging for maximum results. 

Use social media for promotion

One of the most empowering ways to build a personal brand and reach prospective clients is by creating a professional appearance across different social media channels.

For instance, social media platforms are extremely effective for building your presence and engaging with potential students. Choose the social media channels that are most likely to attract your ideal client, like Facebook, TikTok, and Instagram. 

Establish yourself as an authority in the subjects that you teach by sharing valuable content. There are plenty of content types to explore, from study tips to sneak peeks into your tutoring sessions. Connect with other social media accounts related to education and connect with their followers, potentially attracting more students to your tutoring business. 

Not to mention that you can also take advantage of a range of paid online advertising opportunities across social media for instant results. 

Step 6: Manage and Grow Your Business

As your tutoring business starts to operate and provide value to clients, make sure you maintain consistency and continue reaching new levels. 

Implement effective scheduling and booking systems

Note that a lot of your clients will be school students. At the same time, you may also be tutoring college students.

In both cases, you’ll be working with individuals who have very limited free time availability, meaning that scheduling tutoring sessions is likely to be chaotic and last-minute. 

A scheduling and booking system can help you monitor incoming bookings and plan your time more effectively. 

Provide excellent customer service and support

Customer service and support are at the heart of a quality tutoring service. 

Putting in place measures to provide excellent customer service can be equally beneficial for both you and your students. It can help you establish stronger relationships, receive priceless feedback, and make improvements to your teaching style, tutoring materials, or other parts of your business.

Scale your business by hiring additional tutors

As your client base grows, it’s natural that you’ll find yourself in the position of requiring other tutors to join your team and help grow your business.

When recruiting, make sure that the teaching styles of candidates resonate with your core values. Also, ensure that the individuals who will join your tutoring business are adequately prepared to communicate with students and have a lot to offer when it comes to knowledge and skills.

Invest in professional development and continuous learning

Lastly, remember that running a successful online tutoring business is all about consistency and ongoing learning and development.

The beauty of this type of business is that both the client and the tutor acquire new skills throughout the process. 

Rather than falling into the depths of routine, challenge yourself to make new and exciting improvements to your tutoring sessions. You can do this by spicing up your learning materials, introducing innovative forms of teaching, and using your creativity to relate to your students. 

Conclusion

Starting a tutoring business in the UK can be extremely rewarding, both financially and in terms of personal development. 

By following this step-by-step guide on how to start a tutoring business, you can put all of your knowledge into practice and help others improve their learning and achieve their goals in education.

Frequently Asked Questions

Do you need any licences or certificates to open a tutoring business in the UK?

As you’ll be working with youngsters, you’ll need to pass a DBS check. To apply for a DBS check, you’ll be asked to provide information on your address (your residential addresses for the past five years), National Insurance number, and passport or driving licence. You’ll also need to pay a small fee for receiving the check.

What insurance do I need for my tutoring business?

It’s advisable to have professional indemnity insurance to protect against claims of negligence or inadequate service. If you’re tutoring in person, you may also benefit from public liability insurance that can cover accidents or injuries that might occur during sessions.

How much should I charge for tutoring services?

Tutoring rates can vary widely based on your qualifications, experience, subject matter, and location. Research local market rates to set competitive prices. Typically, tutors in the UK charge between £20 to £60 per hour, but this can be higher for specialised subjects or advanced levels.