Best Cities to Start a Tutoring or Education Consulting Business

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The Bureau of Labor Statistics expects the education sector to add nearly 700,000 new jobs in the next ten years. Beyond traditional teachers and professors, independent tutors and education consultants are driving much of this growth. Worldwide education is one of the world’s largest industries and private tutoring alone is quickly becoming a $100 billion market.

Yet, for the tutor just starting out or the small education business looking to grow, building the right practice and network remains incredibly difficult. Compounding that difficulty is the cost of operating, often independently. Professionals need to take into consideration the local education market, cost of living, among other factors like health insurance costs.

With this in mind, Payable sought to help “edu-preneurs” compare which cities provide the most cost-effective environments for starting or growing your business. In addition, with remote, web-based tutoring on the rise, this list can also help professionals determine which markets offer the highest salaries and rates.

Key Factors in Focus

  • Where do education professionals earn the most? We compared the most recent salary data for education professionals to gauge not only compensation, but also local demand.
  • Which cities already have high percentages of self-employed educators? We took into consideration where edu-preneurs are starting out. These cities most likely have higher demand and better networks for education consultants and contractors.
  • How affordable are living costs? We analyzed the median cost of rent in each city against mean earnings to determine where professionals can earn the most while paying the least for housing.
  • How affordable is health insurance? Lastly, we compared health insurance costs per city to provide another important factor for tutors and consultants who have to often cover their own insurance. Prices listed represent the cheapest available Silver Plan for male, non-smokers.

Key takeaways for where to start your tutoring business

The mid-Atlantic region is a hub for education professionals. With so many of the nation’s top schools, universities, and organizations situated in the mid-Atlantic, it’s no surprise that this region tops the list for the best places to start your business. Baltimore, Washington D.C. and Newark with its proximity to Manhattan, show high demand for education services combined with more affordable costs of living

California leads the country in independent education professionals. Oakland, San Francisco, and San Jose all land in the top twenty as great places for independent professionals. The Bay Area has a high rate of self-employment among education professionals indicating a strong network of tutors and consultants. If you’re looking to start your business with a network of independent contractors, the Bay fits the bill.

Best cities for starting a tutoring or education consulting business

Methodology

We compared the following data for the 75 most-populated U.S. cities:

  1. Education professional annual mean wage collected from the 2014 American Population Survey. (Weighted 60 percent)
  2. Percentage of self-employed Education and management professionals from the U.S. Census Bureau’s 2014 American Community Survey. (Weighted 20 percent)
  3. Median gross rent collected from the U.S. Census Bureau’s 2014 American Community Survey. (Weighted 10 percent)
  4. 2015-2016 Health Insurance Premium data was gathered from the Kaiser Family Foundation and our insurance partner StrideHealth. Prices collected used the profile of a 27 year-old male, non-smoker. (Weighted 10 percent)

Laura Zulliger (@laurazulliger) heads up growth at Payable, a company building invoicing, payments and benefits tools for independent professionals. This article was originally posted on the Payable website on April 20, 2016.

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