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How to Start Coaching Business in India?

How to Start Coaching Business in India?
Teaching is noble profession. In Indian society, particularly teachers have always been very highly regarded. If you are passionate about teaching and looking for an alternative of ten to five job then a small opportunity to run coaching business, then small business opportunity to run a coaching business would became a great option for you.
It is possible to make a profit out of your talent. Starting your own classes is one way to pass on your skills, to make most out of your talent and to enjoy your work. You will be making money soon while working from home if you kept in mind following aspects.
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A. Qualification for coaching business
Teacher, educator, professionals or housewives, retired professional, professor or people from various fields have specialised knowledge of their fields can start coaching business. You just need passion for education. This field is depend on ability of educator.
B. Skills required for coaching business
If you love teaching you can start your coaching business immediately but few leadership qualities are:
  1. Skill of human management (since you would have to manage student) and
  2. Specialisation on one or more subjects and
  3. Team building and management if you like to build panel of faculty in long run
C. Create a business entity
  1. For starting small level coaching business there is no mandatory laws or regulations to follow but to make it full time business at large level you should register your business entity. There are various options in India for business registration -
          1. A proprietorship
          2. One Man Company
          3. Partnership firm
          4. Limited liability partnership
          5. Private limited
You may have option to choose any of the above. At initial level you should choose sole proprietorship or partnership and if further you would like to expand business then you can convert it into company.
D. Taxability
  1. Taxability under Income tax

If coaching is your only profession then Income from tuition will be your main source of income and taxable under the head “Income from Business/Profession”. However, if you are in receipt of any other main source of income like salary income, house property income or income from other business and in addition to this you are giving tuitions, then such tuition income will be taxable under the head “Income from other Sources”.
If your income from coaching as well as from all the other sources is more than basic exemption limit (i.e. Rs. 2,50,000/-in case of individual) in the whole financial year, then you are required to file Income-tax return.

  1. Taxability under Service tax
Coaching business services are taxable under the purview of service tax. General exemption under service tax is:
Small Service Provider: Vide Notification No 33/2012-ST, dated 20.06.2012 – Exemption to Small service providers having taxable turnover of less than 10 Lakhs and providing services other than by way of under a brand name.
E. Infrastructure
  1. One can start from home with minimum infrastructure but if you want to do this at large scale then you might have to pay attention toward infrastructure.  
  2. Ensure each student would receive proper attention, notes and study materials.
  3. There should be proper sitting arrangement.
F.  Marketing Plan
A comprehensive marketing plan can go a long way to establishing your credibility and acceptability amongst student and parents.
  1. Digital market: In era of internet create your presence on online media through comprehensive digital marketing so that your target group can easily find information about you on internet.
  2. Direct marketing: Direct mailer, advertisement of print and electronic media flyer, bill board, word of mouth will help you to reach target group directly.
G. Conclusion
A study conducted on current education scenario of India suggests that 87% of primary school children and almost 95% student at higher school receive private coaching in Indian metro cities. And, all trends will show a strong increasing in these numbers the coming days.
Some facts are figure about coaching centre business in India:
    1. In total, the industry is a multi-billion dollar industry
    2. The current turnover of the business is around 23 billion dollar in 2013
    3. By 2015, it is expected to cross 40 billion dollar.

Hence it is profitable business idea .


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