Tutoring businesses offer a home-based entrepreneur the chance to launch a business that has low start-up costs and high earning potential. Tutors can work with students of all ages. A home-based tutor can rely on word-of-mouth advertising, ads placed in local newspapers, or contacts made with school staff to get her business going initially. Most of the supplies needed to run an effective tutoring business can be found right in the house.

Obtain the Right Licenses

Before beginning a home-based business it is important to get the right kind of licenses required to run the business. Each city has its own rules and regulations concerning such requirements, but business owners should ensure that they are on the right side of the law. Contact your city's business license department to find out what licenses are required to run a tutoring business in that city and how they can be obtained.

Invest in Writing and Recordkeeping Supplies

A tutor needs a lot of low-cost writing supplies for her business. It is a good idea for business owners to invest in bulk quantities of pens, pencils, markers, rulers, papers, notebooks and folders. Writing supplies are also essential for recordkeeping and notetaking since managing a large number of clients and employees (if applicable) can be overwhelming without proper records.

Rewards for Tutees

Although optional, a rewards system for tutees is a great way to boost students' morale. Tutors often deal with students who may be struggling academically and who may not be eager to invest extra time and energy on an already difficult subject-matter. In that case, a small investment in rewards would make sense. Rewards can range from special stickers to fancy pens and notebooks.

Business Cards

Business cards are essential for a tutoring business because they are a great way to expose your business to a larger client base. Most people you meet will either have children or will know somebody who does so distributing business cards to them is not a bad idea.