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Tutoring Business Idea

The Type of Business

The type of company I will create is a one-person company (OPC). This is a company that is formed by a single person, and the director and member can be the same person. Therefore, my future for this company is to carry out future tasks in offering the tutoring service and, after some time, expand to more states and institutions (Smerek and Vetráková, 2020). Since the tutoring business is mostly done single-handedly, the owner benefits from the profits of the business and is responsible for the losses of the company. However, other stakeholders, such as the students, will also benefit from the business. Since the service offered by the company deals mainly with students, I will start it in a social hall setting in an institution or a community center since it is accessible to everyone. Additionally, the company will facilitate door-to-door services if necessary. I am planning on moderate growth of the company so that after some time, I will have an expansion and employ more tutors under the same company.

Industry analysis

Since the company is a sole proprietary structure, I will be the owner and be in charge of all the operations, including finances and relations. However, upon growth, I will restructure the company into a partnership structure as the chief executive officer of the organization. Arborbridge and Kaplan are the companies dominating in the tutoring business. Arborbridge has a total revenue of 3 million dollars (RocketReach, n.d.). On the other hand, Kaplan has an estimated total revenue of 1.3 billion dollars (Anita, 2022). Since the company will be handled single-handedly, it will not require a large startup cost since there are only a few procurements to be made. However, with continued experience, there is room for growth since it will handle the clients directly, which will also facilitate marketing. With high demand for education in different sectors, the market for tutoring services is rising, especially with technology, which has made it even simpler to market and cater to the needs of the customers. The major failures that are associated with the tutoring business are a lack of clients, especially during vacations, which leads to low revenue. The major risks associated with a tutoring company are context, content, and the conduct of the tutor towards the client. The threats associated with the industry are competition from big tutoring companies, which offer better services and at a standard price to their clients.

Competitive analysis

Based on the analysis using the Porter five forces, the company will experience competition both online and face-to-face from its competitors. The second force is the potential of new entrants into the industry, which will weaken the business due to fewer clients compared to before. The third force is the power of suppliers, which is not related to the industry since it deals more with services than products. The power of customers is the fourth force whereby, through minimum student enrollment, especially during vacations, the company might be forced to lower their costs to acquire more clients and be profitable (Dobbs, 2014). The last force is the threat of substitute, where the company will have to illustrate to their customers how their education service outdoes the services offered by other organizations. The three main competitors are Arborbridge, Pearson Education, and Kaplan. The chief executive officer of Arborbridge is Megan Stubbendeck, while that of Kaplan is Andrew S. Rosen. On the other hand, the leader of Pearson Education is Andy Bird. The service that will be the most competitive will be online tutoring, where they have dominated for a long time. However, the least competitive service will be face-to-face tutoring, where I can market my company physically. To compete, I will charge the tutoring service a standard lower price than the competitor to gain more clients. I will be a follower since I have a lot to learn from the existing competitors who have prospered in the industry. I will not focus on a specific market segment because the service offered serves a diverse population, ensuring diversity. What makes my idea unique is that I will offer bonus tutoring hours for free to all the frequent and loyal customers.

Offerings of goods or services

With social media being among the best marketing platforms in current times, I will market my services through this strategy. Therefore, two marketing strategies will be used, which are social media marketing to reach out to a vast majority of clients and referral marketing, whereby the students or clients will spread information about the company, which will eventually boost its number of customers (Holloway and Pimlott-Wilson, 2020). I will price the service depending on the number of hours and the subjects that I tutor. The distribution channel for the business will be direct selling since I will deal with the client one-on-one with no intermediaries.

Go or not to go decision

The tutoring business company is viable commercially since the demand for platforms offering education services still increases with the rising population of students in school. Therefore, through marketing strategies and referrals, the number of clients will start to increase, which will in turn increase the revenue of the company (Laasch, 2018). Therefore, through proper service, good relations with the customer, and standard pricing, the profits for the company will gradually increase, which means it is viable commercially.


Anita. (2022, December). Global private tutoring market analysis 2022-2026:. Bristol City Supporters Trust. Retrieved from market-analysis-2022-2026-ambow-education-new-oriental-tal-education-xueda- education-american-tutor-tutorz-chegg-com-eduboard-manhattan-review-itutorgroup- mindlaunch/

Dobbs, M. E. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness review.

Holloway, S. L., & Pimlott‐Wilson, H. (2020). Marketising private tuition: Representations of tutors’ competence, entrepreneurial opportunities and service legitimation in home tutoring business manuals. British Educational Research Journal, 46(1), 205-221.

Laasch, O. (2018). Beyond the purely commercial business model: Organizational value logics and the heterogeneity of sustainability business models. Long Range Planning, 51(1), 158-183.

RocketReach. (n.d.). Find email, phone, social media for 450M+ professionals. Retrieved from

Smerek, L., & Vetráková, M. (2020). Difference in human resources development in various types of companies. Polish Journal of Management Studies, 21.


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