There are 3.5 million sole traders in the United Kingdom, according to the National Federation of Self Employed & Small Businesses Limited, and solo entrepreneurs who tutor to earn cash and help others should know that growing their tutoring businesses will give them access to higher incomes, not to mention enhanced prestige and job security. If you’re interested in turning your solo tutoring business into a growing venture, these tips will be very helpful. There are many great ways to grow a tutoring business, even in the age of social distancing.
Switch from a sole trader to an LLP owner
Whether you want your business to morph into a big and successful agency that’s a bit of a business empire, or you are dreaming a little smaller, you should know that changing your official business designation from a sole trader (sole proprietor) to an LLP (limited liability partnership) co-owner will be smart. According to the UK government, it’s possible to register an LLP for just £40 as of April 8 2020, and this type of business will give you the freedom to grow.
Before you register an LLP, you will need to find a business partner. You and your partner will need to make your names public, as well as any home address that is used as the business address. Once you’ve fulfilled the legal requirements of incorporation, you’ll get a certificate that proves the registration of your limited liability partnership. Two companies may also form an LLP, instead of two people.
When you form your LLP, the company name will be protected. No one else will be able to use it. Your company will be considered a legal entity that is able to hire staff members, access properties via purchase, rental or lease, and sign contracts. How the partnership is run will be up to you and your partner, including how profits are divided.
Buy the right business insurance
Once you form an LLP with a business partner, it will be time to buy insurance policies that protect your growing tutoring business. Every company is different. Some LLPs need to choose workers comp insurance that covers some lost wages, in addition to medical expenses, during times when staff members can’t work due to injuries or illness that relate to their jobs. This form of insurance may be needed if you’re running a bricks-and-mortar operation, where employees might slip and fall in the classroom, or get injured doing other tasks.
A general liability insurance policy is also a smart policy for small business owners with offices and staff to buy, as it offers cover for a range of circumstances, including damage to property. Whether you’re going to run a physical classroom or a digital agency, you’ll also need to give some thought to protecting intellectual property, sensitive company information, and clients. Getting new hires to sign non-competition and non-disclosure agreements is strongly recommended.
Find qualified tutors with good references
After you’ve taken care of incorporation and insurance, you’ll have a strong foundation for business success. The next step is searching for talent. Look for qualified tutors who have impeccable references. Never cut corners when it comes to verifying information and references. After you find the right tutors, you’ll be ready to serve the needs of more students, faster. You’ll also be ready to make more money.
As you can see, you’ll need to alter the structure of your business to grow your tutoring business, but this is not hard to do. You’ll also need insurance that protects your company from lawsuits and other potentially costly problems and circumstances. Last but not least, you’ll need a team of tutors that is skilled, dedicated and experienced.
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