Labor Day has come and gone and in its wake new clothes are being donned, lunch boxes are being packed, yellow school buses are rolling by, crossing guards are providing safe routes, kids are toting backpacks, and bells are ringing in school halls everywhere, officially ushering in a new school year; and with it comes the competition to be the best. In fact, competition to be accepted into the best schools continues to escalate, and not just at the collegiate level. The desire for parents to have their kids earn a place in highly sought after public and private middle schools and high schools is a growing trend in the U.S. The trend is spurring the growth of the educational service industry, particularly tutoring services; an estimated $5-7 billion market.
In 2012, there were just over 78 million Americans, ages 3 and older, enrolled in school. That amounts to 1 out of every 4 people, or 26.4% of the population. (Source: U.S. Census, Current Population Survey Data on School Enrollment). According to the U.S. Department of Education, about 55.3 million students will attend PK-12 in the fall of 2013. Public schools account for 50.1 million of those students, and private schools another 5.2 million. That number is expected to reach 58.4 million by the year 2021.
There are many opportunities available for entrepreneurs and franchisees that go well beyond traditional remedial tutoring services in math, science and English, including early education, music, dance, art, and language, as well as a growing demand for standardized and state testing preparation. Barriers to entry are low and anyone with an education has the potential to enter the field. In the wake of decreased public education funding, there is a growing number of unemployed educators, providing a trained talent pool of individuals already devoted to inspiring the next generation. Nearly 350,000 teaching positions were lost from 2009 to 2012 alone, according to the Bureau of Labor Statistics.
While tutoring services once focused on helping students who were falling behind or those who were challenged with a learning disability, they are now being sought after to give non-struggling students that extra boost. Parents, anxious for their children to do well in school, to score well on standardized and state tests, and to be accepted into the best schools and programs, are hiring tutors at very young ages. Many parents want to ensure their children are performing on par or above the level of their peers. Adults returning to school are also looking for a leg-up on their competition.
How and where tutoring services are accessed is also changing. In-home tutoring services was once the most common method of connecting tutors to students. Tutoring and learning centers were the next evolution, allowing service providers to establish centralized locations, increasing efficiencies as well as profits. Most recently, parents and students are turning to online services. While some tutoring services cater to just one of these delivery methods, others are using a combination to reach their audience. While this field is competitive, the opportunities are many. Any tutoring service can tailor these options to best fit their market niche, and are likely to find it to be quite lucrative.
For any current or prospective entrepreneurs interested in the education services industry, GeoMetrx can provide an in-depth location analysis including an understanding of the competitive landscape. Call us at 1.888.848.4436 or visit us on the web to request a demo today.