Test prep and tutoring center

Parents of students preparing for tests like the SAT, ACT, state exams or entrance exams for private and selective schools.

Monthly or per-course fees per student, plus paid practice test days and extra one-on-one sessions. More tutors and class times mean more students served.

• Strong subject knowledge in math, reading or writing
• Teaching and explaining clearly
• Talking with parents and students
• Scheduling and organizing

• Local business license and zoning for an educational use, check with your city or county
• General liability insurance, and check whether your lease requires it
• Some states regulate private tutoring schools or require background checks for staff working with minors, check your state education department
• Lease commitments, avoid long leases before you have steady enrollment
• Demand is seasonal around exam dates, plan your cash flow
• Be careful with promises about score improvements

Estimated startup costs are typically around $8,000 to $35,000, depending on the space you rent, how many classrooms you set up and what you spend on materials and marketing. Avoid long leases before enrollment is steady.

Monthly revenue is estimated at typically around $3,000 to $15,000, depending on enrollment, class sizes and how many one-on-one sessions you sell. Demand is seasonal around exam dates, so plan your cash flow accordingly.

Check a local business license and zoning for educational use with your city or county, plus general liability insurance and your lease requirements. Some states regulate private tutoring schools or require background checks for staff working with minors, so ask your state education department.