Spoiler: It’s not just about spreadsheets.
When I left the classroom to start my own structured literacy business, I had a sound pack, a pile of decodable readers, a heap of card decks, a new ABN, and a strong sense of purpose. What I didn’t have was a clue how to budget.
Like many educators, I knew how to work hard. I knew how to teach well. But when it came to running a business? I had no idea how much I needed to earn, how much things would cost, or how to plan for anything beyond the next session.
Here’s what I wish someone had sat me down and explained … maybe it will help you feel a little less in the dark too.
1. Your Personal Budget Shapes Your Business Goals
It took me a while to click that budgeting started with me.
If you don’t know how much you need personally (to cover your bills, contribute to your household, and live comfortably), it’s impossible to know what your business needs to earn. This doesn’t mean you need a complicated spreadsheet. It just means being honest about:
- What your baseline income needs to be
- What you’d like to earn ideally
- How many hours you want to work each week
Setting prices based on what I thought was “fair” or “affordable” was not sustainable, I had to work out the kinds of numbers were required in the time I had to support my own needs.
2. Know your expenses.
You don’t need to be afraid of expenses. But you do need to know what they are, and plan for them. I thought I was keeping it simple, but things do add up.
- Resource printing
- Insurance
- Tax advice
- Professional development
- New tech
Add to that the unpaid admin time such as replying to emails, scheduling sessions, prepping for assessments and writing up reports, and suddenly my “hourly rate” was looking a bit different!
3. Undercharging Is a Fast Track to Burnout
I was scared to charge too much. What if families couldn’t afford it? What if I didn’t seem worth it?
Once I calculated my real costs (and remembered I don’t get sick pay or holiday leave anymore), I realised I had to charge more – not to be greedy, but to be sustainable.
It helped me:
- Value my own time
- Say “no” to things that didn’t fit
- Create offerings to work fewer hours but earn more
- Still make an impact (with boundaries!)
You can’t support others well if your business isn’t supporting you.
4. Understand the peaks and valleys of income
Unlike school salaries, tutoring income doesn’t just roll in during the holidays. There are quiet periods – January, term breaks, student illness, late-term fatigue. The first year caught me off guard. What helps? Planning before the slowdown hits. You might:
- Offer short-term intensives or assessments during holidays
- Save a portion of each invoice for time off
- Build in flexible work, like resource development or PL, during lighter weeks
The key is building a rhythm that works across the year and not just week to week.
5. Make good use of your accountant
One of the most useful (and underused) resources in your business is a good accountant, but only if you know what to bring to the conversation. In our first year, we weren’t prepared for those meetings. We didn’t know what to ask, what to track, or how much to set aside for tax, and it showed. Your accountant can help you:
- Understand what to put aside for tax
- Track expenses and deductions properly to spot any red flags
- Understand your business and help you grow
The right accountant won’t just file your numbers – they’ll help you understand them. And that understanding builds confidence.
A Few Things I Wish I’d Asked Myself Earlier
- Do I know how much I personally need to earn – not just what sounds fair?
- Have I added up all my business expenses, including the ones that creep in quietly?
- Am I charging enough to support myself, cover tax, and avoid overworking?
- Have I planned for the slow periods?
- Do I know what to ask my accountant – or am I just hoping they’ll tell me everything?
