How do I judge a tutoring centre’s reliance on exam-season demand?
Compare enrolments and revenue for each month across the school year and look at how sharply they climb before exams. A centre that stays steady outside exam season is less exposed. One whose business vanishes after the tests carries a seasonal risk you must plan for.
Ask for monthly records of students, hours taught and revenue for a full year. Lay them side by side and see how tall the exam peaks are compared with the quiet months. Ask which grades and subjects drive the peaks.
Then ask what the centre offers when exams are not near: ongoing homework help, skill-building, summer programs, group classes. Find out whether those fill or merely exist on the schedule.
Think about cash. If income bunches into a few weeks, expenses such as rent and pay carry on all year. Ask how the seller covered the slow months and whether they relied on credit. Build your own cash plan with your accountant before you take the centre on. Check tutor availability too. Part-time tutors may leave after exams and be scarce when demand returns. Ask how the centre hires, trains and keeps them through the cycle. Ask also whether the seller has tried to smooth demand, for example with early-booking offers or year-round packages, and what happened. A real attempt, even a partial one, shows how families respond. Compare any enquiry numbers during quiet months with the busy ones, and ask what advertising ran in each. Ask what share of families come only for one test.
Key takeaways
- Chart enrolment and revenue by month before judging the peaks.
- Ask what keeps students coming outside exam weeks.
- Plan for slow months and for keeping tutors through them.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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