Starting a tutoring business

When starting your tutoring business, you will have to deal with the following matters:

A legal structure

Choose a suitable  legal structure for your situation. Look carefully at the differences in liability and tax benefits. If you start on your own, you can opt for an eenmanszaak (sole proprietorship). Or maybe you want to hire students, or take on personnel? In that case, you can opt for a legal structure that offers more protection, such as the bv (private limited company).

Location

Location-wise there are several options to start as a homework tutor. You can rent a property or a space in a multi-company building, tutor from home, or go to your client’s house.

Property

You can rent a business property. In your search for the right location, pay particular attention to accessibility by public transport, sufficient parking space, and of course a bike storage facility. 

Do you already have a location in mind? Do the KVK location scan (in Dutch) and explore the area of your future place of business.

Multi-company building

A multi-company building is ideal if you only need a small office space. It is also an attractive option regarding costs. You can use common facilities and share these costs with the other tenants.

From home

It is also possible to tutor your pupils from home. In that case, you have to bear in mind the conditions of your municipality. Contact your municipality to verify that you are allowed to start a business from your home. Also carefully read your mortgage agreement or rental agreement. These documents state whether you are allowed to run a business from home. If you only provide online tutoring, there are no requirements.

House visits

You can also go to your clients. The advantage is that it is relatively quick and easy to get started. Take into account the travel time and travel expenses that come with this option. You can include these costs in your price or hourly rate.

Online

Online tutoring is on the rise. Online tutoring became popular during the corona crisis, and it has not gone away since. It seems that this will continue to be a way to provide tutoring or homework help.

Hourly rate

Determine an appropriate hourly rate for yourself. You can always adjust this rate, for example if it turns out to be too high or too low. Ask yourself these 3 questions:

1. What income do I want to have?
2. What are my business expenses?
3. How many hours do I want to work?

With the answers, you can calculate how many hours you need to work in order to earn the amount you need to live on with a certain hourly rate. Also consider the rates of your competitors.

Tutoring and homework help are very similar. Tutoring is usually individual brushing up on a specific subject. Homework help can be individual, but is also possible in (small) groups. This can therefore be taken into account when calculating your hourly rate. If groups for homework support consist of several people, your rate per client may be lower than for an individual tutoring hour.

VAT

Homework assistance is usually exempted from VAT. This means that you do not charge VAT on your invoice, and you are not allowed to reclaim VAT.

Marketing

Consider how you will publicise your business and how you will find clients. Linsey Brouwer of Lekker Leuk Leren started her business in tutoring and pupil guidance during her training as teaching assistant. A primary school teacher asked her to tutor a pupil with developmental delay. That is how it all started. Brouwer still guides children at that same primary school. Here, and via word-of-mouth advertising, it is easy for her to meet parents who are looking for homework tutoring for their children. “Most importantly, the parents get a good idea of what I have to offer during an obligation-free conversation at school. And I get a good idea of what parents expect of me.”

Many businesses also use social media. Brouwer has a business account on Instagram. “A website seems outdated to me.” Her Instagram account is also aimed at parents.

Insurances

What happens if a child trips over a desktop cable at your location? If you have a business liability insurance, you are insured against any personal injury that your pupils sustain. Consider the risks you want to cover with insurance, and the risks you can or want to carry yourself.