What should I ask about a tutoring centre’s parent retention through the school year?
Ask for enrolment records that show when families join, when they leave and why. Look at how many students continue after the first term and after the busy test weeks. The answer shows whether the centre keeps its parents or must keep replacing them.
Request a month-by-month list of active students for a full school year, along with sign-ups and withdrawals. Ask whether families commit by term, by package or session by session, because the structure changes how the numbers read.
Look for drop-off points. Many families leave after report cards, after a test, or when the summer comes. Ask what the centre does at those times and whether it checks in with parents. Ask how tutors report progress and how often.
Ask why families left, and whether anyone tracks it. Read reviews and talk to a few current parents if the seller allows it. A centre that can name its reasons knows its parents. Check how much of the roster follows a single tutor. Ask about waitlists, referrals and sibling enrolments. Have your accountant compare enrolments with the deposits and fees in the financial statements, and ask your lawyer about refund and cancellation terms in the parent contracts. Ask what the seller would do differently to hold families longer. The answer often points to the centre’s weak spot, such as communication after a hard term. Ask too how parents hear about progress, since regular, specific updates usually keep families longer than occasional general ones. Find out who writes those updates and whether that person plans to stay.
Key takeaways
- Get monthly enrolment and withdrawal lists for a full school year.
- Ask where families tend to leave and what the centre does then.
- Check whether parent loyalty sits with the centre or one tutor.
Related reading
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Due diligence
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?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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