Start Your Tutoring Business Plan Using SWOT Analysis
Start Your Tutoring Business Plan Using SWOT Analysis
A plan is required for business growth, and you’ll need a clearly defined business plan whether you own a successful tutoring business, or you’re planning to start a new business from scratch. A good place to start with any tutoring business plan is performing a SWOT analysis, which will help you get a perspective on your business and the market it exists in.
Why Your Tutoring Business Needs a Plan
A tutoring business plan is important to have regardless of your business’ current or past success. It’s equally important to have a business plan whether your business is brand new or many years old.
You need a tutoring business plan because your business needs a method of setting and reaching its goals. Goals are essential because they provide your business with direction. If goals are your destination, your plan is the directions you follow to get there.
It can be challenging to create a business plan, which is why we’re going to discuss a classic method of getting started: a SWOT analysis. SWOT stands for Strengths, Weakness, Opportunities, and Threats. Below we discuss each of these areas and some questions you can ask yourself when analyzing your teaching business. You can then use the results as a jumping off point for developing a more detailed tutoring business plan.
The first part of your SWOT analysis will be figuring out the areas in which your education business stands out. This part of your analysis is dedicated to analyzing your business and its assets, as well as anything that makes your business unique in your market.
Some examples of strengths that you can highlight are quality of tutors, services, facilities, teaching methods/philosophy, competitive pricing, etc.
Try asking yourself some of these questions if you need some help figuring out what your business’ strengths are:
- What does my business do better than others?
- Why would customers choose my business over my competitors?
- What compliments do customers frequently give my business (ask your customers for feedback if you don’t know)?
- What are the unique aspects of my business that I can use as a foundation for future growth?
Make a list of your business’ strengths. These are the areas of your business that you can be confident will contribute to growth, or remain stable during challenging periods.
Next, you’ll want to make a list of your business’ weaknesses. It’s important to be honest during this analysis. Weaknesses that are accounted for can be fixed, but if you intentionally ignore weaknesses they’ll just end up hurting you more later.
Ask yourself which parts of your business could be improved – do you need to create standardized lesson plans? Perhaps you need to improve your business’ marketing strategy, or spend more time building relationships with customers. This area should also include anything that might be perceived as a weakness by outsiders, especially customers and prospective customers.
If you’re in the process of starting your tutoring business you can modify these questions so they’re focused more on your areas of expected weakness. Think about the areas of operating your tutoring business that you may not have much experience with. What areas can you personally improve upon that will make your business stronger?
Make another list with all of your business’ weakness. Don’t worry if it seems long. That just means there is more room for improvement.
The next part of your SWOT analysis will be to highlight any opportunities that are currently or soon-to-be available to your business.
Some questions you can ask yourself include:
- What opportunities are currently available in my market? Are any opportunities coming up soon?
- Do any of my strengths present opportunities for growth? Will correcting any of the listed weaknesses create new opportunities for my business?
- Are there any new trends developing regarding tutoring or the services that I offer that I can take advantage of?
Try and find 2-3 key opportunities that could be impactful for your business if you capitalize on them. Examples of opportunities include hiring more qualified tutors, expanding into online services, or adding group lessons to your service list. The opportunities you identify in this stage will help you set future goals that your business can strive to reach.
The final part of your SWOT analysis includes evaluating any threats your business is facing. Threats can be anything that has the potential to negatively impact your business in the future, or anything that is impacting your business right now.
Some useful strategies for brainstorming potential threats are to look at ongoing trends in your tutoring business’ market and the activity of your competition. You can also evaluate each of the weaknesses you’ve previously listed to check if any of them have the potential to develop into threats to your business’ stability. Another good idea is to evaluate each of your strengths to see if your competitors can do anything to negate them.
Once you start developing a more detailed business plan for your tutoring business you’ll want to make sure that you have options for dealing with each threat listed on your list. That can include creating contingency plans, taking proactive steps to minimize threats, and further developing your business’ strengths so your business is no longer vulnerable to the threats on your list.
Using Your SWOT Analysis to Develop a Tutoring Business Plan
Once completed your SWOT analysis is an excellent jumping off point for creating a more in-depth business plan. You and your team can take the high-level brainstorming you’ve done and use it to create actionable goals, plans, and strategies that are designed to improve your business.
You can also perform a SWOT analysis for each of your competitors to try and get a more detailed perspective on their strengths, weaknesses, opportunities, and threats. You can then use that information to help develop your own plans, design marketing content of your own, and find untapped markets to which you can market your tutoring services.
Improve Your Business With Teachworks
Teachworks offers tutor management software that is optimized to streamline and automate the administrative functions of your tutoring business. If you don’t yet have an account and would like to learn more, you can visit our website for more information.
You can also click the button below to get started with your Free 3 Week Trial of the software so you can start optimizing your business today!