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Tutor Your Way to Profits

With parents wanting the best academic possibilities for their children, the kids' education and tutoring arena is ripe for new businesses.
November 17, 2006
URL: http://www.entrepreneur.com/article/170786

Colleges keep getting more competitive, and parents want to give their children every possible edge. Add to that the No Child Left Behind Act, which re-quires schools to provide tutoring services if their programs don't meet performance standards, and you have a solid market in education and tutoring. According to data from Eduventures LLC, an educational market research and consulting firm in Boston, revenue in the tutoring, test-preparation services and supplemental content industry for kindergarten through twelfth grade grew 6 percent in the 2004-2005 school year, reaching $21.9 billion.

Online tutoring, a $115 million market, is one of the hottest areas, especially for high school and middle school students, notes Eduventures senior analyst Tim Wiley. Selling tutoring services to schools is also sizzling, though Wiley notes entrepreneurs in this arena should be prepared to meet all the local, regional and state school requirements. For grades three through eight, reading and math tutoring is always in high demand, but look to science tutoring as a growth area in the next few years. Preschool education, too, is expected to grow exponentially, says Steven Barnett, director of the National Institute of Early Education Research at Rutgers University in New Brunswick, New Jersey--especially as more states mandate preschool for all children.

Carving out a niche in this market is Marc Stelzer, 41, co-founder of the Learning Breakthrough Program in Palm Beach Gardens, Florida. His developmental and learning program helps children age 6 and up with academic, cognitive and even motor skills. Marketing the product online as well as through therapists and professional associations, Stelzer expects sales to reach $600,000 in 2006--his first year in business.

Getting Started
Thinking of jumping into a kids" education and tutoring business? Here are some ABCs of starting up: