How to Start a Homeschooling Products and Services Business

Start a homeschooling products and services business by following these 10 steps:

1. Plan your Homeschooling Products and Services Business
2. Form your Homeschooling Products and Services Business into a Legal Entity
3. Register your Homeschooling Products and Services Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Homeschooling Products and Services Business
6. Get the Necessary Permits & Licenses for your Homeschooling Products and Services Business
7. Get Homeschooling Products and Services Business Insurance
8. Define your Homeschooling Products and Services Business Brand
9. Create your Homeschooling Products and Services Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your homeschooling products and services business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a homeschooling products and services business?

The costs of starting a homeschooling products and/or services business will depend greatly on exactly what type of business you want to open. For example, developing and manufacturing real-world products — like a new type of desk for homeschooling students — can cost $10,000 or more at the low end. In contrast, developing a curriculum on your own or offering consulting services can cost as little as a few hundred dollars to get started.

What are the ongoing expenses for a homeschooling products and services business?

If you operate a single-person business you can manage with your laptop and smartphone, such as a consulting business, you could spend as little as $2,000 to $3,000 per year on business expenses. If you instead run something more involved, such as a curriculum development company, you may need to pay for employees, curriculum development from qualified professionals, and possibly product manufacturing costs. All of this can add up to $100,000 a year or more in ongoing expenses.

Who is the target market?

The target market for this type of business includes homeschooling parents and their kids. This larger market also includes several submarkets. For example, multiple homeschooling companies focus on Christian-oriented materials. You may choose to focus your business on a specific submarket or you could try to target all homeschooling families.

How does a homeschooling products and services business make money?

Product sellers make money by converting interested homeschooling families into customers through the sales process. The more products those families buy, the more money the business earns. Service providers also can make money by selling individual packages — such as a week of consulting services — or they may choose a subscription model. Subscription models might charge less per transaction, but could possibly earn more income in the long term.

How much can you charge customers?

How much you can charge your customers will depend on what you plan to sell. A popular homeschooling curriculum business sells a yearlong curriculum for the first grade for around $399. Homeschooling tutors may charge between $20 and $50 an hour, depending on the subject.

How much profit can a homeschooling products and services business make?

A single-person, homeschooling consulting business might make $50,000 to $100,000 a year, depending on the market and the exact services it offers. A curriculum development and sales company could earn much more if sales are good. For instance, if such a company sold 1,000 curriculums at $400 each, it would earn $400,000. Once that company subtracted $100,000 for its annual operating costs, it would then have $300,000 in profits. While these numbers are estimates, they demonstrate the point that product development and sales could prove quite lucrative.

How can you make your business more profitable?

Expanding your customer base is key to boosting the profitability of homeschooling product and/or service businesses. A consulting service might need to hire more consultants to meet additional demand, but it also would be able to earn considerably more due to the increase in work hours available. That same company that sold 1,000 curriculums in one year would earn significantly more if it sold 5,000 the next year.

Growing your customer base will require continued marketing efforts and community outreach, but it’s definitely possible.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your homeschooling products and services business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a Homeschooling Products and Services business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

People with a passion for education make ideal candidates for this kind of business. You may have experience as an educator in a public or private school — or even in a homeschooling setting. Or, you might know a lot about a specific product or service that can help homeschooling families. Whatever your background, starting a homeschooling products and services business may be right for you if you believe homeschooling families deserve every opportunity for success.

What happens during a typical day at a homeschooling products and services business?

A typical day will depend a lot on the types of products and/or services you sell. For example, a typical day at a homeschooling curriculum business might consist of curriculum development, sourcing curriculums from other developers, and marketing existing curriculum products to potential customers. A homeschooling consultant business might instead focus on meeting clients to discuss learning objectives, writing summary reports, and updating social media profiles for marketing purposes.

What are some skills and experiences that will help you build a successful homeschooling products and services business?

A personal homeschooling experience is a big selling point for homeschooling businesses. Many of the parents shopping for these products and services seek like-minded people and gravitate toward those with homeschooling experience as either a parent or student. Legitimate education credentials, such as a teaching degree, also can serve you well by promoting trust with potential customers.

What is the growth potential for a homeschooling products and services business?

A homeschooling products and/or services business can offer significant growth potential. With 2.5 million potential customers — a population NHERI expects will continue to grow — your business could flourish if you can provide a product or service that meets the needs of most (or all) homeschooling families. If you offer curriculums for grades K-12, for example, you could potentially have recurring customers for 12 years in a row.