Teaching Business

How Profitable Is A Teaching Business? (Updated for 2024)

Pat Walls

•

Updated: October 6th, 2024

How Profitable Is A Teaching Business? (Updated for 2024)

So you want to start a teaching business?

And the first question that came to your mind was, “well, are teaching businesses actually profitable?”

With a market size of $1.9B - there’s plenty of business to go around.

Especially considering:

You could start a teaching business with as low as $50
Based on our data, teaching businesses generate an average of $189K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a teaching business.

Let’s dive in!

Is a teaching business profitable?

Yes, a teaching business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $189K per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your teaching business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your teaching business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a teaching business worth it?

If you’re wondering if a teaching business is worth it, the answer is a big YES. With teaching businesses, you have the potential to earn $189K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $1.9B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a teaching business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful teaching businesses case studies.

Examples Of Profitable Teaching Businesses

Here are a few examples of profitable teaching businesses, and a few more details about them:

1. Notary Training Network ($54K/year)

recognize the value you bring, but that doesn't define your worth. Surround yourself with like-minded individuals who believe in your vision and continue to push forward.

Is it profitable? Yes
How much money it makes: $54K/year
How much did it cost to start: $0

How I Started A $54K/Year Business Offering Training Classes For Notaries

Notary Training Network, the first state-approved notary education program mandated by law in Maryland, founder Michol Bobb shares her journey of starting the brand and how she achieved full classes of 30-40 students every month through a strong foundation and being hands-on in her business.

Read this case study

Read by 2,315 founders

2. Fem 'n STEM ($18K/year)

Whitney Bowen, a college student, came up with the idea for Fem 'n STEM during the COVID-19 pandemic when she realized the need for educational extracurricular activities for students at home. She created science-themed boxes that contain all the necessary materials to carry out four experiments, aiming to encourage kids to pursue their passions in the sciences. Despite being a college student, Whitney has already achieved $1.5k in monthly revenue and hopes to continue growing her business.

Is it profitable? Yes
How much money it makes: $18K/year
How much did it cost to start: $2K

How I Launched A $1.5K/Month Science Box For Kids During COVID-19 Quarantine

College student, Whitney Bowen, launched Fem 'n STEM during the COVID-19 lockdown selling STEM boxes for kids between the ages of 8-12 and has earned $1.5k in monthly revenue within the first month of launch using social media to advertise and using WIX to create an online store.

Read this case study

Read by 7,752 founders

3. Teacher Jade's Writing Academy ($144K/year)

Jade was working on her masters and she started a side hustle as a teacher to earn extra income. Soon, what started as a side job became her career path and led her to starting her online courses business.

Is it profitable? Yes
How much money it makes: $144K/year
How much did it cost to start: $50

How I Went From Part-Time Tutor To Making $120K/Year Selling Online Courses

Teacher Jade's online academy and consulting services, which teach youth and adults how to offer online classes, resulted in a five-figure monthly income with increased enrollment through Outschool, leading to the creation of a second business and a plan to expand course offerings and salaries for her teachers.

Read this case study

Read by 4,659 founders

Learn more about starting a teaching business:

Where to start?

-> How much does it cost to start a teaching business?
-> Pros and cons of a teaching business

Need inspiration?

-> Other teaching business success stories
-> Marketing ideas for a teaching business

Other resources

How much can you make with a teaching business?

With a teaching business, you can make an average of $189K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $50. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a teaching business make a week?

Based on our data, average weekly revenue for a teaching business ranges around $3.94K. As such, you could see monthly revenues of $15.8K.

To know if your teaching business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your teaching business.

How much do teaching businesses owners make?

The income of a teaching business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established teaching business is about $3.94K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a teaching business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Teaching Business Profit Margins

Generally speaking, a teaching business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a teaching business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, teaching business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, teaching business owners can ensure long-term sustainability and profitability for their business.

Teaching business owner salary

The salary of a teaching business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established teaching business, in a prime position, might see an average weekly salary around the ballpark of $3.54K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a teaching business may be a promising business to start - but the success of your teaching business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable teaching business.

Part of

Starting A Teaching Business: Everything You Need To Know

‹

›