Tutorboss · Tutoring Business Ceiling Calculator
Where does your business hit the wall?
Your revenue ceiling is not set by how many families want you. It is set by how many tutors one of you can manage before your week is full. Here is your exact ceiling, and what it takes to move it.
Revenue ceiling of your current structure
$574,080 / yr
Profit ceiling $239,200 / yr
You are at 8 of 13 tutors. At 13, managing them fills your entire owner week.
About 3.4 hours of your week goes to each tutor.
Add more tutors
Grows to 13 tutors, then stops.
$239,200
profit ceiling, then a wall
Make the hire
Resets the ceiling to 18 tutors. Pays for itself at 17.
$271,200
profit ceiling with the hire
How this is calculated
- Every tutor takes a slice of your week to run (matching, quality, parent comms). We take the hours you spend managing and divide by your tutor count: about 3.4 hours per tutor.
- Your ceiling is where that management fills your whole week, your hours divided by the per-tutor hours. Yours lands at 13 tutors.
- Each tutor earns bookable hours times utilization times your rate times teaching weeks, per year. Profit uses your rate minus what you pay the tutor.
- The revenue and profit ceilings are that per-tutor figure times your 13-tutor ceiling.
- A middle-layer hire takes tutor management off you, so the ceiling resets to how many tutors one hire can carry. It pays for itself once the extra tutors' profit covers the hire's yearly cost.
What this assumes
- Based on 46 teaching weeks per year.
- Your ceiling is the point where managing tutors fills your entire owner week.
- Assumes one middle-layer hire can manage up to 18 tutors.
- Owner time the hire frees up is assumed to go to growth, not counted as extra tutors.
Lisa's take