How to Start an ESL School

Part 1 - How to start an ESL School business - Background

As more and more non-English speakers arrive in English-speaking countries, there is a growing need to help these new arrivals learn how to speak English to increase their chance to work or attend school. An ESL school meets this need by providing adult and children with instruction on how to speak, read, and write English. These types of schools are sometimes known as English Language Schools. ESL stands for English as a Second Language.

Start an ESL School by following these 10 steps:

1. Plan your ESL School

2. Form your ESL School into a Legal Entity

3. Register your ESL School for Taxes

4. Open a Business Bank Account & Credit Card

5. Set up Accounting for your ESL School

6. Get the Necessary Permits & Licenses for your ESL School

7. Get ESL School Insurance

8. Define your ESL School Brand

9. Create your ESL School Website

10. Set up your Business Phone System

We have put together this simple guide to starting your ESL School. 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.

Our guide is in 3 parts:

• Part 1 - How to start an Esl business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening an ESL School?

In the beginning, you can offer classes out of your own home, out of a public place like a library, park, or coffee shop, or even visit students in their own homes. However, once you have accumulated enough students to actually open a school, you will need to have enough money set aside to cover certain expenses.

One of the highest costs is rent. The amount you must pay depends on your market. In the case of an ESL school, most schools are located in large metro areas because that is where the potential students live. These are the same places where rent can be higher than normal.

Labor is also a large cost. Instructors are usually paid based on the number of hours they teach each week. This allows schools to more easily control the cost for instructors. Instructors are usually paid between $25 to $50 per hour.

Office staff typically receive a lower wage than teachers, but still earn above minimum wage. Most of the office staff involved with sales earn the bulk of their salary through commissions.

Another large expense is purchasing the curriculum and extracurricular activities like games, toys, and teaching materials. Supplies costs will vary according to the number of students you have enrolled at each course level.

What are the ongoing expenses for an ESL School?

Rent and labor are two of the biggest ongoing expenses. Smaller monthly expenses include utilities and maintenance costs.

Who is the target market?

Most students who enroll in ESL schools in the US are out of school and working. Students are more likely to be male than female, and they typically have at least some experience with learning English in the past.

How does an ESL School make money?

An ESL school makes money by charging students for classes. Some schools charge students for each lesson they attend and students at other schools pay for a set time period. Most ESL schools have multiple pricing tiers based on the number of students in a class, the level of instruction, or the time when the students attend classes.

How much can you charge customers?

According to Thumbtack, students pay an average of $40 an hour for ESL instruction. That rate can vary based on location of the school and other factors like the number of students in a class or the level of instruction.

How much profit can an ESL School make?

Experts predict revenues for educational services will grow 2.4% over the next five years. An English language school which keeps a tight control of its expenses can expect to see a good return.

How can you make your business more profitable?

ESL schools can easily add new classes and events to increase their bottom line. English schools can supplement their income by selling a variety of educational tools like dictionaries, CDs, language-learning games, and other literary and digital learning materials.

Day-to-Day and Growth

What happens during a typical day at an ESL School?

At the typical ESL school, the office staff arrives a few hours before the first class to prepare for the day. The first class at many ESL schools begins in the late afternoon, and many schools don’t open until after lunch. After handling administrative work, like bookkeeping and marketing, the office staff usually spends the rest of the day dealing with the concerns of students and parents. Instructors typically arrive an hour before their first class to plan and attend a short meeting. After teaching classes, instructors usually write reports and meet with students or their parents. The owner needs to ensure everything runs smoothly.

What are some skills and experiences that will help you build a successful ESL School?

Many successful ESL school owners have experience teaching English to non-native student. Many owners have taught abroad or worked at private English language schools in their home country and have a clear understanding of the business. Quite often owners of ESL schools have a certificate or degree in TESOL (Teaching English to Speakers of Other Languages). Owners should be capable of recognizing good teaching when you see it and have the ability to help instructors improve their teaching. Due to the high level of marketing and sales involved in this business, ideally an owner has experience running a company.

What is the growth potential for an ESL School?

An ESL school can start with a single owner who is also the instructor. Many small, independent schools start off this way. As a school builds up its student base, the owner can hire more instructors and staff members. In an English-speaking country with lots of new immigrants, ESL schools have a great growth potential.

ESL schools which are able to enroll foreign students directly are very popular these days. Unfortunately, it takes up to two years to become qualified as one of these “I-20” schools, and a school must be certified by the Student and Exchange Visitor Program (SEVP) in the US.

What are some insider tips for jump starting an ESL School?

Schools must start small and build slowly. Over expansion can easily force a school to close. Schools should not offer extremely low-cost, long-term classes as a way to attract students. This marketing technique can easily find schools filling their classrooms, but losing money in the end. Schools shouldn’t make guarantees about academic improvements or minimum test scores. Most importantly, schools need to do all they can to keep students happy. One unhappy student can ruin a class and cause other students not to sign up for additional classes.

How and when to build a team

Build your team depending upon your needs. Ideally, your teachers should be able to focus one hundred percent on preparing and delivering classes, while other staff members handle advertising the school and registering new students. In addition, it is often necessary to hire staff members who are able to speak the native languages of your students.

Part 2 - Is an ESL School business the right fit for you?

Part 3 - Action plan to launch your ESL School business in 90 days