How to Start an ACT Tutoring Business in 2025

You’ve been tutoring ACT students one-on-one for a few years now, and you’re good at it—really good. Your students are seeing score improvements, and their parents are thrilled. But instead of feeling accomplished, you’re exhausted. 

As your popularity and your prospects increase, so does the demand for more of your services - mock tests review, performance analysis, prompt replies, and feedback. When parents ask for detailed reports, you scramble to pull together something that looks halfway professional. You know you could help more students if you had the time, but you’re already working 60-hour weeks. 

So you feel you want to convert your freelancing into a more structured business. And given that the U.S. online tutoring market is estimated to grow by $50.29 billion between 2024 and 2029 at a CAGR of 19.5%, your prospects are looking bright.

If this sounds like your dilemma, you’re not alone. Many solo ACT tutors face these same challenges when trying to grow their businesses. 

The good news? 

With the right tools and strategies, you can build an impactful and sustainable ACT tutoring business. 

In this article, we will explain, in a step-by-step manner, how to start an ACT tutoring business to cater to the increasing demand in the test prep services segment. 

Starting an ACT Tutoring Business in 2025: A 9-step Guide

Starting an ACT tutoring business requires careful planning and strategic execution. From conducting market research to setting competitive rates and promoting your services, each step plays a crucial role in building a successful tutoring venture. 

Here’s a breakdown of the key steps to help you launch and grow your ACT tutoring business effectively.

1. Research the market to understand competition and resources

You want to understand how best you can engage potential students, evaluate the competition, and check the available resources. 

• Channels: Learn how best to connect and engage with students and parents.  
• Competition: The presence of competition is actually a good sign: It tells you the market is lucrative. Find out what is the size of the competition and what segments are still untapped.
• Resources: Are there libraries or other help centers that students turn to? How would you leverage these resources, both for promoting your business and for teaching?

2. Develop a business plan

This is an extremely important step. You want to have all the business technicalities in place before the first student signs up. For instance, if you plan to tutor online only, you might need a certain setup for hardware and software. Of course, you’ll have to keep room for alteration as your ACT tutoring business grows. 

• Business plan: Sketch out a business plan. You’ll see some great pointers for resources you’ll need. It would be the starting point for your calendar: you’ll know when to teach, promote, build teaching resources, and unwind.
• Location: Will you have an online model only, or will you travel to meet the student? This will guide you during the subsequent stage of deciding your rates and handling legal requirements, like business premise registration, for instance.    
• Certifications: While you won’t need any special certifications, anything that can bolster your authenticity can be highlighted.

3. Set up your ACT tutoring operations 

Many answers to the question of how to start an ACT tutoring business revolve around funds and their management. While starting a tutoring business won’t break the bank, a small investment is required. 

• Tools: While a paid subscription to something like Zoom might sound adequate, an online tutoring platform that will provide you with all features (like attendance, quiz schedules, and more) will make more sense. If you are planning in-person sessions, you will need supplies, including a dry-erase board and markers.
• Teaching resources: Provision for physical books, practice material, and digital learning tools for your sessions.
• Bank account: Even when not required by law, it will help you keep your personal and business accounts separate. Consider a banking app and getting a business credit card.  Finally, decide the channels through which you’ll accept payments.

4. Address aspects of business registration, taxation, and insurance

That’s exactly why you should have all the legal matters firmly in place before you start ACT tutoring. Business and legal requirements will vary depending on your model, location, size, and other stuff, but here’s what you’ll always need:

• Registration: Register your business as required. Consider or provision for trademark registrations as well. Check for property laws if you plan to conduct sessions within your office.
• Taxation: Speak to your accountant in advance regarding your potential tax liabilities and implications. 
• Insurance: Apart from asset insurance, you want to protect yourself from personal liabilities. That includes protection against bodily injury, claims of negligence in duty, and property damage, especially when you’re on someone else’s property. Remember, the scope of insurance will widen as you add employees or even part-time contractors.

5. Draft policy to cover enrolment, cancellation, and 

Documents clarify your stance and protect you from legal trouble. Offering a score improvement guarantee? Specify the terms in your documents. Do you have referral codes? Mention how referals are defined and compensated. Besides, clearly mention how you’ll process and protect the data that you collect. Using the services of a qualified legal expert is highly recommended.

• Enrolment and cancellation policy:  As you grow, you’ll decide to set certain standards or limitations, so spell them out. And be sure to have a transparent cancellation policy so that the student doesn’t feel cheated nor do you feel having been taken advantage of.
• Privacy: You will be handling considerable data, so know how you’ll protect that data. Among other laws, you want to have at least a basic understanding of California Consumer Privacy Act (CCPA), Children’s Online Privacy Protection Act (COPPA), and Family Educational Rights and Privacy Act (FERPA). Your documents should be framed in the context of laws like these.
• Intellectual property: Set out clear guidelines on how to (and not to) use your material, teaching plans, tests, recordings, and other assets. Consider copyrighting anything that truly belongs to you or your business.

6. Decide the rates you’ll charge

• Achievements: If you achieved a near-perfect ACT score, you can consider charging more. Other previous academic achievements will help, too: a college degree in math or teaching, for instance.
• Credentials: Do you have some special academic credentials? Don’t shy away; flaunt them to establish your authority and attract students. 
• Other factors: Economic factors like the cost of living influence what you can charge, even if you teach online. If you’re based in downtown LA and teach a student in Kent, Washington DC, you’ll charge more than a tutor and student based in Delta, Utah. 

7. Promote your business

You want your potential students to notice you, right? So, go out and spread the word. But be careful because you are just starting out and finances would be tight. So, be a little creative.

• Target groups: Be sure you’re speaking to the right audience and their decision-makers. Parents are actively involved in most decisions at this stage, so learn how to appeal to them.
• Promise: A promise to raise the score by a certain number of points is a great way to attract students. However, make sure you clarify the terms under which the promise is valid. As an example, you can promise to raise the score by 3 points or more if the student takes at least ten sessions with you and completes the assignments in the given time.
• Medium: Fewer parents than students may be using Instagram. So, your message on Instagram will likely address students. Conversely, if more parents pay attention to emails, your cold emails would probably do better if they addressed parents. In short, craft your message depending on the medium you’re using.

We have elaborated on rates and promotions in a separate section below.

8. Build a professional ACT tutoring website

A website is no longer an option; it’s a must-have for your tutoring business. You can also build a website for free, but there will be several limitations. Generally, it’ll make more sense to go with a paid website builder that specializes in test prep and education. Regardless, here are the areas to keep in mind when you think of your website. 

• Updates: Keep the website updated. If you’re offering a discount or having a free session next week, your website should invariably mention it.
• Videos: Upload a few videos on YouTube and then share them on your website. That way, you won’t have to spend extra on the memory for video, and yet you’ll be able to showcase your tutoring skills.
• Analytics: Wondering how to start an ACT tutoring business (and grow it) using data? Watch your website analytics. Sure, you won’t have too many visits in the early days, but soon, there will be some numbers you can rely on. Experiment with how website-only offers resonate with your target group.

9. Keep upgrading yourself

Building and growing your business requires you to equip yourself with both domain-specific skills as well as general business skills. So as you go along teaching your students ACT test-taking strategies and skills, you will also need to update some skills and learn some new ones.

• People skills: You’re working with students with tight schedules and lots of distractions. As a result, you need to keep them motivated to keep working and achieve their target scores.
• ACT-specific skills: With the ACT going digital, you need to stay updated and skill yourself so that your tutoring is accurate and result-oriented. A strong ACT platform for tutoring companies will complement it like nothing else.
• Social media skills: Because you’re just starting an ACT tutoring business, we’ll assume you don’t have the budget to hire a social media manager. So it will do you a lot of good to learn some basic skills on how to promote your tutoring services on social media for free.

How Much Should You Charge for ACT Tutoring?

Five factors impact how much to charge for ACT tutoring:

1. Format: In-person and online tutoring have different costs (the former is priced slightly higher), so your rates vary accordingly. 

2. Duration: A fifteen-session plan will be priced differently from a twenty-three-session ACT tutoring plan. Also, the length and frequency of each session will impact the rates you set.

3. Deals: Are you offering special rates for students taking the ACT again? Are you running a Christmas sale? Will you throw in one free session after every, say, eight sessions? 

4. Skills and experience: Any visible skills or experience will let you charge slightly above the average. For instance, you might have taught students whose first language was not English or students with special needs. Or perhaps you had tutored ACT students for a year under a different tutoring company, and now you’re setting up your own business.

5. Ongoing rates: The figure that your students consider an acceptable rate is conditioned by what other tutoring companies charge. If you price yourself too high or too low, you’ll need strong reasons to justify them. If you have scored 34 or more on the ACT, for example, you can command a premium.

A simple rule of thumb is to start at US$30 per hour and then raise or lower it based on the factors mentioned above.  This is not a hard number - the hourly ACT tutoring rates can easily cross $150 for good tutors. Then there are factors like the zip code, frequency of sessions, duration of the session, and so on (Source).

How to Advertise Your ACT Tutoring Business

Explore the alternatives below to promote your ACT tutoring services:

• Free or low-cost: You can send cold emails within your network. Announce it through your WhatsApp status. Simultaneously, create a great offer, for example, offer one free session. Next, get in touch with college counselors, academic advisors, and study groups, and tell them what you’re offering. Also, hone your presentation skills. Finally, don’t forget the good old visiting card.
• Paid ads: Targeted paid ads work great, but keep a close watch on the spending otherwise your budget will be exhausted without delivering proportional results. 
• Reviews: Student testimonials are perhaps the most authentic endorsement. Even if it appears tiny, every single review counts. So be sure to ask your students to rate you on public review sites. 

Go With a Proven Expert / Take Your Most Important Step

Find a digital tutoring solution that will help you get up to speed. Want to see how a strong platform for ACT can translate all the advice above into success? Request a demo with our expert and learn more about the solution that has helped over 1,000 businesses.

FAQs

1. What certifications will I need to begin ACT tutoring?

No specific certifications are required for ACT tutoring. However, all your credentials can help: if you are a Math major or have taught English for a while, it’s a big plus. Your passion for helping students and your willingness to learn will go a long way.

2. Can I tutor for the ACT on a part-time basis?

Sure, why not? If you already hold a job or are currently studying, you don’t need to devote your entire day to ACT tutoring. However, remember that spending less time isn’t the same as not doing it sincerely. Prepare for your sessions so that you deliver value.

3. Should I get experience elsewhere before I launch my ACT tutoring business?

Tutoring is both a skill and a craft, so any previous experience in working with students will always help. But that doesn’t mean you should wait for the ideal time to start. If you launch your tutoring business without any experience, you’ll probably need a little more time to learn the ropes. 

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