3 reasons why learning centers are a great choice
Are you looking to buy a business? Finding the right business is tough. If you are considering ownership for the first time, it might feel like you are walking down the diving board toward that daunting leap into the pool.
There are so many businesses that you could look at, which one is going to be “the one”? We work with our clients to find the right business to buy. With over 550 business models to consider, it can be overwhelming. One of the strongest is the tutoring/learning center model. Read more to find out if this might be the business for you.
Tutoring and Test Prep is a Growing Industry
According to MIT economics professor Michael Greenstone, “High-income families spend as much as $9,000 annually on private tutoring, SAT prep courses, computers, and other activities, compared with about $1,300 for low-income families.” Education is definitely a priority in this country, and money spent on your child’s educational performance is seen as money well spent.
According to the Anything Research 2019 Tutoring Industry Report,
tutoring in the U.S. is a $4.9 billion dollar industry and is projected to reach $5.2 billion by 2020. In 2018, Anything Research also cited Exam, Test Prep and Tutoring as #8 on a list of “Best Industries for Starting a Business”.
The in person tutoring and test-prep industries are not going anywhere. The global economy demands competitive education. K-12 especially will always have a need for in-person, hands-on tutors.
There’s Money to Be Made In a System That Works
You could start your own tutoring center. Or, you could step into one that corporate has run, or one with an established name as a resale, or open a new tutoring/learning center franchise.
Any way you go, there’s a runway for ROI. The runway is longer if you start your own center. You can shorten that runway by adopting an already proven business model. The ideal situation would be something that had name recognition, has been established for some time, but perhaps was corporate owned – such opportunities are rare but they do exist.
When you are considering the right business to buy, you want to look for multiple revenue streams. With a learning center, there are multiple revenue streams – and your clients have longevity. “We can take students from kindergarten and help them throughout their whole lifecycle of school,” says Stephanie, one franchisee in Ohio.
Tutoring centers are also great as a part time or side business, as well. Whether you are looking to augment your income, or make this your primary business, there is a positive financial future for this industry.
Tutoring Franchise Centers are Affordable
Generally speaking, getting into a tutoring/learning center as a business owner is reasonable. The general range to buy this business is roughly $119,000 to $270,000. Variables are the center’s location, size and leasehold. You will also need $60,000 in liquid capital or income to cover living expenses if it’s a new location and you are just ramping up.
We can assist in helping you find sources for funding as well. Watch our video for more on funding a business.
In conclusion – you want to own a business to make money, and maybe to have more freedom. This is a model that allows for both of those things, but also gives students tutors that provide them with the skills and motivation to succeed. There is a lot of reward in that.
If you are looking for a business – this could be a great choice for you. Contact us to find out more about strong models available in your area!
Alternately, you can submit your info below and we can contact you with more information. We currently have 33 learning centers available in New York and New Jersey, and have others elsewhere.