Educational institutions have been closed for face-to-face teaching for the whole of 2021 so far due to the global pandemic. It’s no surprise, then, that many parents and students are now looking for educational support outside of schools and universities.
For some established online tutoring companies, their number of pupils increased six times their usual intake in just the first few weeks of lockdown in March 2020. That’s a lot of students and a lot of income! If you’re interested in earning money in education, it’s unlikely there will be a better time to dive in than now.
The demand for additional learning outside of school has never been higher. Despite the fact that schools are still teaching students online, it’s a completely different environment that’s led to a lot of pupils feeling isolated in the virtual classroom. Communication between students and teachers has also inevitably been impaired by the complications of teaching a large class online. That’s the most significant reason why one-on-one online tutoring has boomed in the last year.
But, it’s not only the demand of young students that makes education franchises so successful at this time. I’m sure you’ve heard of someone’s new lockdown hobby? Or have you heard the neighbour trying to learn the guitar? The social lives of adults have also been impacted, which has resulted in a rise of people wanting to learn new skills like a foreign language or musical instrument. The demand for education outside institutions has grown beyond a few demographics and people are willing to pay for it.
The UK government can testify to this demand and growth in the tutoring industry by announcing their input of £350 million in a National Tutoring Programme.
Many people with higher education qualifications, especially the self-employed, have also lost their jobs over the last year, meaning there’s a great pool of people who would love the opportunity to earn good money per hour tutoring for your company.
Are education franchises lucrative?
The short answer is yes. Private tutoring brings in a lot more money than people may suspect. Around 27% of children who attend school paid for private tutors before the pandemic, which had risen from 18% in 2005. In 2019, it was estimated that at least 41% of children in London alone took part in private tutoring.
The private tuition industry had an annual turnover of £6 billion before the pandemic. In 2019, it was calculated that the global tutoring industry is likely to have a significant compound annual growth rate of 13% between 2019-2023. That’s a lot of money for an industry that is already valued at approximately $100 billion globally. It’s also extremely likely that this rate will be much higher due to the current growth in demand for extra education.
On top of that, most adults are willing to pay up to £50-£70 for just an hour of tuition. With tutors willing to take around £30 an hour for a tutoring session, businesses can earn a very good percentage of the hourly lesson price, making it a viable business opportunity.
Don’t forget, home tuition franchise opportunities are often low cost franchises due to their home-based nature. Minimal overheads mean maximum profits.
Will the boom in educational services be short-lived?
The demand for extra education is likely to lessen once schools, colleges and universities return to normal post-pandemic. However, education is always held incredibly highly in society and isn’t going anywhere. Looking at the increasing figures and percentages of students investing in extra education before the pandemic makes that clear. With university places becoming more competitive, the need for tutoring isn’t likely to diminish.
There’s also a great potential to make this boom in education long-lived for your business. By starting and building on educational relationships now, students and parents will see the advantages and progress gained from teaching. That way, you’ll hold onto your clients even after the boom has subsided.
Is business growth possible?
The great thing about starting up an educational business or investing in an education franchise now is that the industry is showing great signs of growth not just because of the pandemic. Over recent years, the industry’s scope has grown.
With an increasing awareness of learning disabilities, there’s been more demand for specialised children mental and wellbeing health franchises. The same goes for mental health awareness. Parents are more conscious of the mindfulness and mental wellbeing of their children. Mentoring and companionship could be a great feature to add to your educational services that will only grow in popularity over the coming years.
The private tutoring system, largely operating online, gives education franchises the opportunity to become global. There aren’t any limits to the geography, age or skill level of the students you teach. Educational services have the potential to grow to a huge, worldwide franchise with hundreds of thousands of students and a very healthy turnover. There won’t be a better time to get involved in this growing industry than now.
Has starting an education franchise piqued your interest? There are a wide range of resources out there to help you find your ideal franchise. We hope this article has been a useful insight.