T. Nicole Pankratz – Bodner 
Start & Run an ESL Teaching Business 

Over the past 20 years, teaching English as a Second Language (ESL) has grown by leaps and bounds and now generates billions of dollars every year. Waiting lists for class space attest to the overwhelming demand for ESL instruction in North America. This book provides all the hands-on practical tips you need to start your own ESL teaching business. Whether you want to begin tutoring from your home or start your own ESL school, this book provides the step-by-step guidance you will need to make your business a success. Teaching ESL is ideal for people with an entrepreneurial spirit. While related to formal education, ESL is more about business than it is about school. Those who do well in the ESL industry understand that students are in many ways customers. It is one thing to understand and know how to teach English grammar; it is quite another to start and run a successful ESL school. Start & Run an ESL Teaching Business will show you how to translate an interest in teaching and working with people from other countries into a profitable business.

Table of Content

INTRODUCTION xix
How the Book Is Organized xx
How to Use This Book xx
PART 1 — ESL INDUSTRY OVERVIEW 1
1 ESL FACTS AND FIGURES 3
International Students 4
Immigrants 5
Industry Needs and Trends in Your Area 6
2 ESL BUSINESS OPTIONS 7
Starting a Tutorial Service 7
Students 8
Programs 8
Locations and schedules 8
Tutorial fees 8
CONTENTS
vii
Starting a School 8
Students 9
Programs and courses 9
“English only” policy 9
Types of locations 10
Peak seasons 11
Tuition fees 11
ESL Products 11
English-on-the-Go 12
Teacher Training 12
ESL Services 13
Homestay 14
Which ESL Option Is Right for You? 14
PART 1 EXERCISES 15
PART 2 — STARTING AND RUNNING AN ESL TUTORIAL SERVICE 17
3 UNDERSTANDING YOUR ROLE IN THE ESL-TUTORING MARKET 19
Exploring Your Market 20
Finding a Niche Market 20
4 DEVELOPING YOUR PROGRAMS AND SERVICES 22
Big Picture Planning 22
Creating a student profile 23
Determining the purpose of your program through a mission statement 23
Clarifying your delivery method 24
Defining how your services fill a market niche 25
Outlining your programs and services 25
Establishing an intake and assessment system 26
Program and Service Options 30
Program options for immigrant youth 31
Program options for adult international students 31
Extracurricular program options for all ages and types of students 32
Organizing and Scheduling 32
viii Start & run an ESL teaching business
Contents ix
5 KEY PEOPLE AND THEIR ROLES 42
Program Coordinator 43
Booking Person 44
Tutors 44
Marketer 44
Accommodation Coordinator 45
Office Staff 45
Activities Staff 45
6 LOCATION AND FACILITIES 46
7 MARKETING 48
Word-of-Mouth Advertising 48
Promotional Material 49
Agents 49
Promotions 50
8 POLICIES AND PROCEDURES 51
9 MAINTAINING AND BUILDING YOUR CUSTOMER BASE 53
Potential Problems That Could Become Nasty 53
Wasting time 54
Failing to deliver the goods 54
Too many changes and complications 55
Inappropriate attire 55
Little Things That Promote Team Spirit in Your Students 56
Newsletters 56
Contests 56
Get-togethers and outings 56
Being open to extras 57
PART 2 EXERCISES 59
PART 3 — STARTING AND RUNNING AN ESL SCHOOL 63
10 EXPLORING YOUR MARKET 65
Clarifying Your Market 65
Determining Your Target Market 66
Considering Which Programs Best Match Your Market 66
Making Your Mark 67
Responding to Your Market 68
Student needs 68
Student desires 68
Student perceptions 69
11 YOUR SCHOOL, YOUR PROGRAMS 72
Big-Picture Planning 73
Creating a student profile 73
Determining the purpose of your programs (mission statement) 73
Clarifying your delivery method 74
Defining the ways in which your school fills a market niche 74
Developing a program overview 75
Establishing a system of evaluation 76
Program Development 78
Developing a course outline 78
Using a textbook series 80
Creating your own programs 80
Thinking about program themes 81
12 SERVICES 86
Accommodation 86
Homestay 87
Apartment rentals 89
Extracurricular Activities 96
13 KEY PEOPLE AND THEIR ROLES 98
Director 99
Program Coordinator 99
Teachers 99
Marketer 100
Accommodation Coordinator 101
Office Staff 102
Activities Staff 102
x Start & run an ESL teaching business
14 LOCATION AND FACILITIES 103
Urban versus Rural 103
Location Guidelines 104
15 MARKETING 105
Promotional Material 105
Agents 106
Word-of-Mouth Advertising 106
Promotions 107
16 POLICIES AND PROCEDURES 108
Common Issues Warranting a Formal Policy or Procedure 109
Preparing for Future Policy and Procedure Issues 110
17 MAINTAINING AND BUILDING YOUR CUSTOMER BASE 112
Little Problems That Can Turn into Big Problems 112
Cutting corners 113
Awkward coffee breaks and lunch breaks 113
Nagging 114
Too many holidays 114
Lack of take-home materials 115
Little Niceties That Spread Good Vibes 115
Prizes and gifts 115
Welcome Day 116
Excursions 116
School clubs 118
Student of the term 118
Parties 119
PART 3 EXERCISES 121
PART 4 — SETTING UP YOUR BUSINESS 129
18 DEVELOPING YOUR BUSINESS PLAN 131
Executive Summary 132
Description of the Industry 132
Description of the Business 132
Contents xi
Products and Services 133
Marketing Plan 133
Operational Plan 134
Corporate Structure and Support 134
Risk Assessment and Action Plan 134
Finances 134
Appendixes 135
19 ASSEMBLING YOUR BUSINESS TEAM 136
Lawyer 136
Accountant 137
Banker 137
Insurance Agent or Broker 137
Other Individuals Worth Building Relationships With 138
20 GETTING STARTED 139
What Type of Business Structure Should I Choose? 139
Sole proprietorship 139
Partnership 140
Corporation, or limited liability company (LLC) 141
What Should I Call My Business? 141
Where Should I Work? 142
What Kind of Registration and Licensing Do I Need for My Business? 144
What Equipment and Supplies Do I Need to Get My Business Up and Running? 144
Home-based tutorial service office 144
A school with 20 or more students 147
21 PLANNING AND ORGANIZING YOUR FINANCES 151
Determining Your Start-up Costs 151
Determining Your Ongoing Monthly Expenses 152
Obtaining Financing 152
Types of financing 152
Where to get financing 152
Keeping Financial Records 153
xii Start & run an ESL teaching business
Setting and Collecting Fees 154
Setting fees 154
Collecting fees 155
Planning for your business expenses 156
Getting Contracts for Government-Funded Language Programs 157
22 EXPLORING YOUR INSURANCE OPTIONS 158
Types of Insurance 158
Industry Specific Insurance 159
Student health insurance 159
23 HANDLING LEGAL ISSUES 161
Visas 161
Visas for the US 162
Visas for Canada 162
Accreditation Agencies and Industry Associations 163
Hiring Employees 164
PART 4 EXERCISES 166
CHECKLISTS
1 Tutor self-evaluation 43
2 Opening an ESL tutorial service 58
3 Opening an ESL school 120
SAMPLES
1 Typical ESL-school program 10
2 Profile of students 23
3 Tutoring mission statement 24
4 Methodology description 24
5 Marketing promise 25
6 Tutoring services schedule 27
7 AEIOU level assessment 28
8 Level assessment form 29
9 Entrance and exit assessment system 30
Contents xiii
10 Student-led methods of tutoring conversation 34
11 Handout for Wish Club communication sessions 35
12 Wish Club communication sessions evaluation form 36
13 Programs and services 37
14 Tutorial contract 38
15 Lesson summary (for parents of children in public schools) 39
16 Tutor’s schedule 41
17 Profile of students 73
18 Mission statement 74
19 Methodology statement 74
20 Marketing promise 75
21 Morning program overview 76
22 Afternoon program choices 77
23 Afternoon program overview 78
24 Evaluation system 79
25 Course outline for an academic class 82
26 Student evaluation form 83
27 English communication program 84
28 Using art as a program theme 85
29 Homestay application form (for students) 90
30 Homestay application form (for host families) 93
31 Homestay policies 95
32 Program and classroom policies 111
33 Welcome Day schedule 117

About the author

Nicole has been working in the ESL industry as an instructor, curriculum developer, program coordinator, and teacher trainer for more than ten years. Nicole has run her own tutoring business and has helped launch and expand two licensed ESL colleges. She has also written numerous newspaper and magazine articles and co-authored a book.