Startup cost: $200 - $2k

Setup costs for starting an online tutoring and test prep coaching business range from $200 to $2,000. At the low end, you would need essentials like a laptop, a stable internet connection, and basic productivity tools. Optional expenses might include creating a website or investing in tutoring software. On the higher end, additional expenses could include marketing tools, professional website development, specialized tutoring resources, and licensing fees. Hidden costs could include background check fees for working with students and platform commissions for using tutoring marketplaces. While some individuals claim this business can be low-cost, expenses can increase once you commit to quality tools and services. For a friend looking to take this seriously, budgeting between $500 to $1,000 would be a reasonable range to aim for.