How to Start a Private Music Lesson Business

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Quick Reference

Learning to play a musical instrument has many benefits. It’s creative, it can relieve stress, and it feeds your brain. Playing an instrument can broaden your social circle, and it can give you a real sense of achievement. No wonder then that according to CareerExplorer, there are an estimated 122,500 music teachers registered in the USA teaching all levels of abilities and a broad range of musical instruments.

Unfortunately, music lessons are often the first ones to be cut in elementary and secondary school budgets, creating relatively low job security for employed music teachers. This is why offering private music lessons through your own business can be an excellent opportunity. It can give you greater control over the age range and ability of your students, the musical styles you want to teach, and how many students you can take. You will also be in charge when it comes to determining your lesson fees for private music tuition.

Business Overview

Typically, private music tutors are competent in and specialize in one area, such as piano lessons or guitar lessons, or a class of instruments. They tend to work one-on-one or provide small group lessons. Tutors will help beginners develop their basic skills and understand music notation. They might also offer lessons to improve instrumental technique, increase performance ability, or prepare for auditions. Lessons are generally conducted at home, online, or at the student’s home, sometimes in a studio.

Industry Summary

According to IBISWorld, close to 18,000 businesses and over 26,000 musicians are registered in the US offering private music lessons. There are no major players in this industry. These numbers show us that the majority of private music lesson businesses are owner-operated, i.e., they are run by one person. And when it comes to gender, it’s almost 50/50; 51.7% of private music tutors are women.

Related Industries

Record Label
Tutoring

Industry Trends

As with many businesses, online tuition is forecast to be the future of private music lessons. Although remote music instruction is limited in terms of the ability to control the sound quality, for example, many operators in this industry have already implemented a shift towards virtual communication platforms. The bonus here is the ability to record lessons and make them available regardless of time and place. Plus, this generation of youth is a lot more tech-savvy and will be better able to make the most of online tuition.

Target Market

Your target market will have one common denominator: the musical instrument they wish to play. After that, every student will be different and will have different needs. Your target market is likely a mix of ages and levels of capabilities. Note that if you take on smaller children, your credentials and communication will also be important to their parents.

Skills, experience, and education useful in running a private music lesson business

 

Credentials and Competence: You don’t need a degree in music to start your own music teaching business, but you certainly need to be competent in the instrument you are going to tutor. Especially if you are planning to teach at higher levels of music theory and exam preparation, your credentials and potentially affiliations and memberships will help back up your tutoring ability.

A couple of well-known associations include the Music Teachers National Association and the National Association for Music Education.

Teaching experience: Again, you don’t need a teaching qualification to run your own music tutoring company. But remember, you will likely be dealing with students of all ages and abilities. Happy students = happy business. It is vital that you can adapt your teaching style to the needs of your students, especially kids. You’ll also need to be able to organize a lesson plan and set goals for your students.

Stay up to date and on top of trends: It’s good to keep an eye on three main areas: Changes and advances in music and musical instruments, advances in teaching, and also the emergence of new online platforms, improved online resources, and services. Stay connected with your industry and your network. It’ll help you to stay ahead of the game and offer your students a competent, professional, and innovative learning experience.

Excellent interpersonal skills: You’ll have happier students (and parents) if you are able to relate well and if you are patient and positive. This is especially true for teaching smaller children where frustrations can lead to tantrums. You’ll need to be able to communicate ideas and steps clearly and in a positive way. There’s nothing quite like the student’s feeling of success when finally mastering a competency and ‘getting it.’

Costs to Starting a private music lesson business

Estimate amounts are not very useful here, unfortunately. There are so many variables when setting up your private music lesson business. It can be said, though, that becoming your own boss in this industry is relatively easy and doesn’t require a huge investment upfront. Most tutoring can be done at home, online, or at the student’s home. There is no need to rent or buy a studio to start with. We are also assuming that you already own your instrument(s) of choice, so there should not be an additional cost. Your expenses will largely be associated with marketing, setting up business-related systems, accessing teaching material and perhaps additional sheet music, music stands, and potentially setting up online teaching platforms.

Steps to Starting a Private Music Lesson Business

Step 1: Write your Business Plan

After coming up with the idea, the next step in starting your own music lesson business should be to write a business plan. You might think a plan is not that important because starting a private music lesson company doesn’t require a large sum of capital upfront. But the business plan will make you focus on some important aspects of your business, such as who your customers are, how you plan to reach them, projecting income and expenses, and much more. Multiple studies have shown that a business plan helps increase the odds of starting a successful business and sustain it longer-term.

Having a detailed business plan is also a must, should you need a loan from the bank.

Related:
How to write a business plan
Free sample business plans

Step 2: Name the Business

Finding the perfect name for your private music lesson business can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related:  How to do a Trademark Search Before Choosing a Business Name

Step 3: Form a Business Entity

A business entity refers to how a business is legally organized to operate. There are four primary business entities to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC).  Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

Related: Comparison of Business Entities

Step 4: Select your Location

It’s an important consideration, but perhaps one that comes with easy options. Statistics show that most private music lesson businesses are run from the tutor’s home. To offer lessons from home, you will need to verify whether you need licensing to operate a home-based business.

Other common options are dedicated studio space, online tutoring, and offering lessons at the student’s house. Providing group tutoring will normally require dedicated space, so be sure to run the numbers to see how many students will be needed to cover the facility costs. Rental costs will depend on the studio’s square footage, location, and amenities.

Related: Choosing a business location 

Step 5: Apply for Business Licenses and Permits

You won’t need a degree to offer private music lessons, but a business owner will need to obtain certain general business licenses and permits. These permits and licenses can vary based on the state and town where the business is located. Some common local, state, and federal registrations a private music lesson business may need include a business license, sales tax permit, and Employer Identification Number.

Related: Common business licenses, permits, and registrations by state

Step 6: Find Financing

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start your own business is another. Luckily, a private music lessons business does typically not require a large amount of capital upfront and can start small scale. However, should you need a loan, it is important to understand that the borrower(s) will need to have good credit and be able to invest 15-25% of their money towards the total start-up costs.

Related: Finding the money to start a business

Step 7: Open a Business Bank Account

Keeping your business and personal finances in separate business bank and credit card accounts is vital. It will also make it easier to track the income and expenses of your business.

Step 8: Get your Marketing Plan in Place

A music lesson business will need to set aside a budget to cover marketing costs on a continuous basis. Music stores and schools are excellent places to build connections and leave flyers and business cards.

Common marketing techniques for private lessons include social media marketing, online advertising with Google ads and Craigslist, and print advertising. Creating a customer loyalty program aimed at families or small groups can help to encourage new and repeat students. Developing a website can be a significant expense, but it can also give your business greater visibility and reach. The website can also be used as a portal to online tuition for existing customers. Marketing costs will depend on the activity performed and its volume.

Related: Low-cost ideas to market a new business

Step 9: Get Insurance

Compared to other businesses, a private music lesson business will not need an extensive range of insurances. But you should explore:

  • General liability insurance protects the business from expenses like medical and legal bills that it could face if a student is ever hurt while on the business’ property.
  • Worker’s compensation insurance covers expenses like medical bills and legal fees that a business might face if an employee were ever hurt while working.

Insurance policies will vary in cost depending on factors like the business’s location, the value of its inventory (if any), and the number of employees on staff (if any). To get the most accurate idea of what to budget for insurance, request quotes from multiple providers. When comparing the quotes, consider not only the premiums but also how the plan exclusions, coverage limitations, and deductibles compare.

Related: Common types of insurance a business may need

Step 10: Hiring Employees

A large proportion of private music lesson businesses are owner-operated. But should you want to hire staff or instructors to expand the range of tuition you can offer, the average pay for a private music teacher is $26, according to Salary.com.

In addition to salary costs, your budget will also need to include other employee-related expenses. Workman’s comp insurance, unemployment insurance, and paid time off are common expenses that a business will need to cover when hiring staff. It will also be useful to set aside some time and budget for training and development.

Related: Hiring your first employee

Step 11: Set up an Accounting System

Setting up an accounting system for your music lesson business is critical to its long-term success. A good system will allow you to stay on top of your billing and will track income and expenses. It will allow you to maximize profits, identify trends and also keep the business out of trouble with the government.

Related: Setting up accounting for your business

How much can you potentially make owning a private music lesson business?

According to Salary.com, highly experienced and specialist private music tutors can earn up to $54plus per hour. That is a relatively high rate, certainly if you look at the comparatively low overheads and expenses. That said, it pays to check out your competition in your area. Your rate will be determined by the demand for learning to play a certain instrument but also by the supply. Your charges will be influenced by what level of tuition you provide, your experience and the skills and expertise you offer, and whether it is one-on-one, a group, or online.

Things to consider before starting a private music lessons business

Teaching music can be such a rewarding experience! Especially with students who are positive and excited about learning an instrument. It’s also a business with low entry barriers. You can easily start off small, ease yourself into being your own boss, and then grow your business from there. A private music tuition business will also travel to some extent. If you already offer part or all of your tuition online, your business and your students will easily travel with you. Plus, running your own music tuition business means you can develop your own ‘brand’ and have more freedoms in the way you develop students, when you work and how much you charge.

On the other hand, don’t underestimate teaching. It can be quite hard work. You might have students who are in your class because the parents thought it was a good idea. You will also do a fair bit of lesson planning and, of course, administrative work relating to the business.

But if you have a real passion for music and are excited to share that with others, if you treasure the students’ ‘aha-moments and you enjoy being your own boss and working on your own terms, then running your own private music lesson business ticks all these boxes.

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