Are you about starting a math tutoring business? If YES, here is a complete sample math tutoring business plan template & feasibility report you can use for FREE. It is common to find students who have a natural phobia for mathematics. This is why certain parents who have wards in schools are willing to go the extra mile to ensure that their wards are sound academically and in some cases in mathematics hence the need for extra coaching.
The demands for private math tutorial services are driven by the fact that most schools cannot meet the required teaching style that will enable students learn and understand mathematics. With private math teachers, it is easier to adopt the most suitable learning style for each student.
A Sample Math Tutoring Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Math tutoring is under the tutorial school industry and tutoring is a craft that is as old as man, from when man passed on the knowledge acquired from making fire, preserving cultures, to modern day classroom learning. Tutoring can be informal (from parents to children) or formal (from an instructor to others) and can happen in any setting, the home, office, or school.
Apart from academics, there is skilled based tutoring- this is where an individual or a group is tutored on skills such as dance, singing, sports and so on. This guide will focus on school-based tutoring. Earlier, the myth had been that only slow learners needed tutoring, but this isn’t true as even bright students still get tutoring that is aimed at helping them further improve on what they know, thereby brightening their grades more.
Math tutoring has become so popular due to the fact that most students naturally develop a dislike for mathematics, and most parents have little or no time to tutor their children. Apart from having no time, parents aren’t equipped to handle new information and knowledge that is the prerogative of a math tutor or teacher.
Due to this fact, there has been a tremendous demand for math tutors therefore creating a thriving tutoring industry. Most math tutors are freelancers, making this industry a good one for entrepreneurs to set up.
Entrepreneurs who want to set up a tutorial school do not need to be professional teachers, but have to know where to source for clients in this case students, and how to give them a quality service so much so that they become a source of reference in bringing other clients.
Tutors are people employed to educate others individually, in small groups or in large groups. The key attributes needed to start math tutorial services are patience, enthusiasm, passion about the specific subjects to be tutored, and constant positivity. Also needed are planning, preparation, and certain other organizational skills.
Entrepreneurs who want to open or start math tutorial services – either online, private, or a large school – will have to know the requirements needed – either for the school itself, or the tutors that would need to be employed – by the locality, city, state, association or trade body where they intend to operate from.
In Hong Kong, the Census and Statistics Department pegs the tutoring industry as being worth HK$400 million, .4 billion in india, and $12 billion in Japan. In California alone, there are over 34,000 registered tutors.
In fact, an educational market research and consulting firm states that revenue from tutoring, test preparation services, and supplemental content industry for kindergarten through 12th grade grew 6 percent in 2004 to 2005, rose and reached $21.9 billion.
For high and middle school students, online tutoring had revenue of $115 million. In Pakistan alone, parents spent an average of $3.40 a month in 2011, while in India it was about $2 per month. In South Korea, 90 percent of students receive extra tutoring from tutorial schools, in Hong Kong; the rate is 85 percent of students.
Even though this might seem like a saturated field, it isn’t as there is always a constant demand for math tutors – especially as traditional schools keep taking in new students’ that might require an upgrade of their grades through taking extra tutoring lessons from tutorial schools.
Math tutoring schools are having an impact on students who are struggling with mathematics, or students who want their grades to remain up. Another thing is the available market for math tutors either home based tutors, online tutors, or large tutorial schools.
2. Executive Summary
DY DX® Math Tutoring Services is a registered private tutorial services business with strong bias in teaching mathematics and related subjects, and it is located in a well – populated residential estate in Boston – Massachusetts, united states of America.
We are a standard math tutoring service provider that is set to handle all high school mathematics related subjects for both teenagers and adults who would want to enroll for adult education. We will also hire out home tutors to go to the homes of our students as demanded by their parents.
DY DX® Math Tutoring Services is a client-focused and result driven math tutoring services that provides broad-based learning approaches at an affordable fee that won’t in any way put a hole in the pocket of our clients. We will offer standard and professional teaching services to all to our students (high school students and those that enroll in adult education classes).
We will ensure that we work hard to meet and surpass all our students’ expectations and educational goals whenever they hire our services.
At DY DX® Math Tutoring Services, our students’ overall best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professional mathematics teachers who are well experienced and passionate in imparting knowledge to students at various learning cadre.
DY DX® Math Tutoring Services will at all times demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our students’ needs precisely and completely.
Our overall business goal is to position our math tutoring services to become the leading private math tutorial brand in the educational industry in the whole of Boston – Massachusetts, and also to be amongst the top 5 math tutoring services business in the united states of America within the first 10 years of operation.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Boston – Massachusetts is the right place to launch our math tutoring services business.
DY DX® Math Tutoring Services is founded by Francis Winston, Kimberly Morgan and Jael Kings. All the members of the team can comfortably boast of having a solid education cum mathematics background and have worked with various students at different levels of learning. All the founding members have equal stake in the business and they will be actively involved in running the math tutoring services business.
3. Our Products and Services
DY DX® Math Tutoring Services is going to teach varieties of mathematics related subjects within the scope of the education board in the United States of America. Our intention of starting our math tutoring services is to soundly educate people in various mathematics related subjects and of course to make profits from the tutoring cum education industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings include;
- Home tutoring services (teaching various mathematics related subjects to students at different learning levels)
- Retailing of mathematics and other related educational books and materials
4. Our Mission and Vision Statement
- Our vision is to build a highly competitive math tutoring services business that will become the number one choice for both parents and students in the whole of Boston – Massachusetts.
- Our mission is to provide professional math tutoring services to students. Our overall business goal is to position our math tutoring services to become the leading math tutoring brand in the educational industry in the whole of Boston – Massachusetts, and also to be amongst the top 5 math tutoring services businesses in the United States of America within our first 10 years of operation.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our math tutoring services business on the right business foundation. As a matter of fact, we are set out to build a math tutoring services business that will be a standard for the math tutoring services line of business in the United States of America.
We want to build a dedicated workforce who will go all the way to ensure that our students are satisfied and they get value for their money. We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent math tutoring services.
The success of our math tutoring services business will be anchored on the team not on any individual. With the wide range of math related subjects that we teach and the locations we intend covering, we are only expected to employ more than it is required to run a conventional math tutoring services business.
Definitely, we will have various teachers to man the various math related subjects offered of DY DX® Math Tutoring Services. DY DX® Math Tutoring Services will employ professionals and skilled people to occupy the following position;
- Head of the Math Tutoring Services/School Administrator
- Tutors for Various Math Related Subjects
- Marketing Executive
- Client Service Executive/Front Desk Officer
5. Job Roles and Responsibilities
Head of the Math Tutoring Services / School Administrator:
- Accountable for providing direction for the business.
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals and payment of salaries.
- Responsible for signing checks and documents on behalf of the company.
- Evaluates the success of the organization.
- Responsible for managing the daily activities in the organization.
- Makes budget and reports for the organization
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization.
- Regularly holds meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Oversees the smooth running of the daily activities of organization.
Tutors for Various Math Related Subjects
- Effectively teach math related subjects as assigned by the school coordinator
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the school
- Contributes his / her quota towards growing the math tutoring service
- Receives complaints from parents and channel it to the appropriate quarters
- Handles any other duty as assigned by the school coordinator.
- Identifies, prioritizes, and reaches out to new students, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the business
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the tutorial college
- Serves as internal auditor for the tutorial college
Client Service Executive
- Welcomes students and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provide the client with a personalized customer service experience of the highest level.
- Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s products and services.
- Manages administrative duties assigned by the school coordinator in an effective and timely manner.
- Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information are supplied to students when they make inquiries.
- Receives parcels/documents for DY DX® Math Tutoring Services and distributes mails in the organization.
- Handles any other duties as assigned by the Manager.
6. SWOT Analysis
We are quite aware that there are several math tutoring services businesses that offer math tutoring services all over Boston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
DY DX® Math Tutoring Services engaged the services of a core professional in the area of business consulting and structuring to assist our math tutoring school in building a well – structured educational business that can favorably compete in the highly competitive education industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for DY DX® Math Tutoring Services. Here is a summary from the result of the SWOT analysis that was conducted on behalf of DY DX® Math Tutoring Services.
Our core strength lies in the power of our team. We have a team that has successfully run a standard tutorial college, a team with excellent qualifications and experience in mathematics education. Trust and competence are key factors in this line of business and we can boast of having a healthy dose of both.
We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors for business.
As a new math tutoring services provider in Boston – Massachusetts, it might take some time for our organization to break into the market and gain acceptance in the already saturated tutorial/education industry; that is perhaps our major weakness.
The opportunities in the tutorial/education industry is massive considering the number of parents who would want their wards to perform excellently well in mathematics and also adults who would want to learn mathematics and obtain high school diplomas. As a standard math tutoring services provider, we are ready to take advantage of any opportunity that comes our way.
Every business faces a threats or challenges once in a while. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the math tutoring school.
Some of the threats that we are likely going to face as a math tutoring services provider operating in the United States of America are unfavorable government policies that might affect tutorial services, the arrival of a competitor within our location of operation and global economic downturn which usually affects spending/purchasing power.
There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
The trend in the math tutorial line of business is that the key to attracting students is the educational performance of their students in exams. Any math tutoring services provider that has good records will always thrive.
The demand for math tutoring services is driven by the fact that most schools cannot meet the educational criteria of all the students, and also the need to ensure that students meet up with national and international educational standards.
The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of math education. The areas you would need to spend heavily on is in ensuring that your teachers are well paid, their teaching style is up to standard, your advertisements, and insurance.
8. Our Target Market
DY DX® Math Tutoring Services will initially serve high school students and those enrolling for adult education but would later grow to accommodate middle school students. Our target market as a math tutoring service provider cuts across people of different class and people from all walks of life.
We are coming into the tutorial industry with a business concept that will enable us work with students at different learning stages. Below is a list of the students we have specifically designed our math tutoring services for;
- High school students
- Adults and Elderly who would want to enroll for adult education
- Middle school students
Our Competitive Advantage
This field is a highly intense one because of the quality service offered by home tutors and tutorial schools, who are more pressured to deliver better services. Due to this pressure, there is a jostling amongst the different math tutors and tutorial schools to get more students, thereby increasing their earnings as well.
Hence, schools are besieged by requests to offer math tutorials to students. It is for that reason that math tutoring services have had to step up on advertisements and publicity to retain an edge over competitors. Home tutors aren’t left out of this competition as well.
We are quite aware that to be highly competitive in the tutorial industry means that you should be able to deliver consistent quality service, your students should be able to experience remarkable difference and improvement and you should be able to meet the expectations of both students and parents alike.
DY DX® Math Tutoring Services might be a new entrant into the tutorial industry in the United States of America, but the management staff and owners of the business are gurus. They are licensed and highly qualified mathematics educationists at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees (mathematics tutors) will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
DY DX® Math Tutoring Services is established with the aim of maximizing profits in the tutorial industry and we are going to go all the way to ensure that we do all it takes to attract students on a regular basis. DY DX® Math Tutoring Services will generate income by offering the following tutorial services;
- Offering math tutor services (teaching various mathematics related subjects to students at different learning levels)
- Retailing of mathematics related educational books and materials
10. Sales Forecast
One thing is certain, there would always be parents and students who would need that extra coaching in mathematics to be able to achieve their educational goals and as such the services of math tutorial centers will always be needed.
We are well positioned to take on the available market in Boston – Massachusetts and we are quite optimistic that we will meet our set target of generating enough income from our first six months of operation and grow the math tutoring business and our student base.
We have been able to critically examine the tutorial market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Boston – Massachusetts.
Below are the sales projections for DY DX® Math Tutoring Services, it is based on the location of our math tutorial business and of course the wide range of mathematics related subjects that we will be offering;
- First Fiscal Year: $125,000
- Second Fiscal Year: $250,000
- Third Fiscal Year: $550,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. Also, there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions amongst math tutoring services in the United States of America, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of DY DX® Math Tutoring Services.
We will also ensure that our students’ excellent results from national exams and other exams speaks for us in the market place; we want to build a standard and first – class math tutorial services business that will leverage on word of mouth advertisement from satisfied clients.
Our goal is to grow our math tutorial services business to become one of the top 5 math tutoring services in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Boston – Massachusetts but also in other cities in the United States of America.
DY DX® Math Tutoring Services is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our math tutoring services by sending introductory letters alongside our brochure to schools, parents/household and key stakeholders in Boston – Massachusetts.
- Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
- Create a website that allows parents to look us up, and also allows us to post general study tips
- Use friends and family to spread word about our math tutoring business
- Introduce ourselves to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
- Call up schools – either private or public – and intimate them of our services
- Post information about our math tutoring services on bulletin boards in places like schools, libraries, and local coffee shops.
- Place a small or classified advertisement in the newspaper, or local publication about our math tutoring services
- Using tutorial referral networks such as agencies that will help match students with our math tutoring service
- Joining relevant associations or bodies that will enable us network and meet others in the same industry.
- Advertising online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
- Advertise our math tutoring business in relevant educational magazines, newspapers, TV and radio stations.
- Attend relevant educational expos, seminars, and business fairs et al
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both parents and students in the whole of Boston Massachusetts which is why we have made provisions for effective publicity and advertisement of our math tutoring services.
Below are the platforms we intend to leverage on to promote and advertise DY DX® Math Tutoring Services;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Boston – Massachusetts
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas.
- Contact schools by calling them up and informing them of our math tutoring services, and the advantage our math tutors has over others.
- Passing general information via the math tutorial school’s social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our tutors wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.
12. Our Pricing Strategy
Generally, for tutorial services (home tutors and tutorials for the physically challenged inclusive), flat fees on a weekly or monthly basis is what is obtainable. As a result of this, DY DX® Math Tutoring Services will charge our students flat fees except for few occasions where there will be need for us to charge special students on hourly basis.
At DY DX® Math Tutoring Services we will keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.
We are aware that there are some students that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such students’ needs.
- Payment Options
The payment policy adopted by DY DX® Math Tutoring Services is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that DY DX® Math Tutoring Services will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to pay for services rendered.
13. Startup Expenditure (Budget)
In setting up a math tutoring school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of.
This means that the startup can either be low or high depending on your goals, vision and aspirations for your business. The capital for a home-based tutor might fall between $500 and $2,000, while that of a medium and large scale service would definitely be higher.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a math tutoring school business; it might differ in other countries due to the value of their money.
This is what it would cost us to start DY DX® Math Tutoring Services in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring an office space or warehouse that will accommodate the number of teaching and non – teaching staff (Re – Construction of the facility inclusive) will cost – $35,000.
- Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- Launching an official website will cost – $500
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
While a home tutor might not have to incur all these expenses but going by the above report, we will need an average of fifty thousand dollars – $50,000 to start a small scale but standard math tutorial school business in the United States of America.
Generating Startup Capital DY DX® Math Tutoring Services
DY DX® Math Tutoring Services is a partnership business that is owned and managed by Francis Winston, Kimberly Morgan and Jael Kings. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $10,000 (Personal savings $8,000 and soft loan from family members $2,000) and we are at the final stages of obtaining a loan facility of $40,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business shuts down.
One of our major goals of starting DY DX® Math Tutoring Services is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our math tutor services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
DY DX® Math Tutoring Services will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Securing a small office facility (Renovation of the facility inclusive): In Progress
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Math Tutorial Schools’ Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Math Tutorial School: In Progress
- Creating Awareness for the math tutorial school in Boston – Massachusetts: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress