Start a homeschooling products and services business by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. 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.
Check out our How to Start a Business page.
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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
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.
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
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.
STEP 2: Form a legal entity
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.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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.
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.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
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.
Learn more about General Liability Insurance.
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.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market a homeschooling products and services business
You can reach the homeschooling community in a variety of ways, including through social media platforms and homeschooling blogs. Marketing your business effectively will require identifying the specific channels used by your ideal customer. If you can get involved in homeschooling social media circles, you may find a receptive audience for your product. Some popular homeschooling blogs also may be willing to showcase products and services if you reach out and ask them. Because they cater to homeschooling families, these blogs offer a convenient way to reach that audience.
How to keep customers coming back
The quality of what you sell will play a big part in whether or not customers keep coming back. A high-quality product or service that meets or exceeds their expectations is more likely to generate repeat business than a mediocre one. The better you solve your customers’ problems, the more likely they are to share your offerings with others in the community as well.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Homeschooling Products and Services Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
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.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
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.
TRUiC's YouTube Channel
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a homeschooling products and services business?
Knowing your market and building rapport with potential customers is important — particularly when it comes to homeschooling. It takes a high level of commitment to their child’s education for a parent to take them out of school and teach them personally. Some families do it for religious reasons. Others do it because they believe they can do a better job than the school system. You’ll need to market your business in such a way that you attract these families and avoid alienating them.
How and when to build a team
Some homeschooling-related businesses, such as a consulting service, can operate fairly easily with just one person. Others, such as curriculum development companies, usually require multiple people to stay on top of everything. If you want to develop and maintain curriculums for multiple subjects across multiple grade levels, you’ll need to hire some employees to help with the process.
A simple way to tell if you need to build a team is to examine your schedule for the past month or more. Have you been able to keep up with demand? If not, your business likely will benefit from a few extra hands.