The target is a boutique college test preparation and counseling service that caters to the educational needs of college-bound high school students with a focus on a prestigious metro area and surrounding suburban regions generating consistently healthy student traffic year after year. Charging hourly rates of up to $200, the company generates monthly tutoring invoices of up to $10,000 per student.
The Company does little to no advertising to date, with most business coming from word of mouth referrals.
Founded in March of 2017, the company has grown significantly in just a few years with TTM earnings through October, 2019 of $196,000 on Sales of just $314,000.
In addition to offering test prep and college counseling services, the Company also offers specialty programs such as animation, 3D modeling, game design, and ESL programs. All of the services have specific tutors trained in them with the Seller primarily working in a management and marketing capacity. The Company could easily offer expanded services simply by hiring more tutors specializing in additional subject matter. Given the Company’s small size and nimble business model, it can also cater to specific needs for specific children. Should a parent request tutoring in an area not currently offered, the Company is easily able to identify additional tutors with the required background that then work with the family to create the specific curriculum needed for that student. Tutors earn $30-$60 per hour while the family is billed $100-$200 per hour.
Given that the demographic of area students is generally one from households with incomes over $250k, the fee for this concierge style of tutoring is rarely an issue. Spending patterns of families depends on academic urgency and the Company’s ability to provide solutions. Packages usually start at $1,500 and can jump to $6,000 or more each month. During slower times, they may spend less than $1,000 a month, with most students staying on for greater than one year. The Company currently has about 15 stable clients, of which 10 have been with the Company for roughly two years now. New clients are continually being cycled in through a referral system the Company has with a local high-end academy that charges a $55,000 annual tuition.
The owner only works 10 hours per week, primarily in a management capacity, coordinating between students, parents and tutors. A variety of other personal issues take up the balance of the owner’s time. These other obligations have largely contributed to the owner’s decision to list the company for sale. Very little marketing is currently being done, presenting a tremendous opportunity for a new buyer to implement a targeted marketing campaign and grow the company many times over.
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