How to Start a Computer Training Business

Starting a computer training business can be an exciting and rewarding business venture for entrepreneurs who are passionate about technology and enjoy helping others learn essential computer skills.

Having said that, you should keep in mind that launching a successful computer training business requires deep subject knowledge, a detailed business plan, and a clear understanding of your target market’s needs.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own computer training business, from obtaining all necessary equipment to developing your training curriculum and pricing your services.

Ready to turn your business idea into a reality? Tailor Brands is our top recommendation because it guides you through every step of the process with hands-on support.

Tailor Brands ($0 + State Fees)

Industry Overview

In 2023, the global IT training market value reached an all-time high of $75.1 billion and is projected to have surpassed $99 billion in total value by 2032, with a CAGR of 3.1% from 2024 to 2032.

In particular, this steady growth is thought to be fueled by rapid technological advancements, which are causing a global push for IT competency. As businesses increasingly expand and adopt these new technologies, the need for skilled IT professionals surges, which in turn makes IT training a critical service in both corporate and individual sectors.

As an illustration of this, the broader corporate training industry was valued at approximately $357 billion in 2020 and is expected to grow at a CAGR of 8.0% up until 2027. Evidently, companies across the globe are investing heavily in upskilling their workforce — particularly in areas such as cybersecurity, IT, and software proficiency.

Startup Costs

If you’re considering whether a computer training business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own computer training business?

Well, it depends, while the initial investment for a computer training business can vary widely, it will typically be made up of the following three main expenses:

• Equipment and Software: Perhaps the most critical cost to bear in mind when starting this type of business is the expense associated with purchasing the necessary computers, software licenses, and training materials. While this may only require as little as $2,000 if you’re planning on setting up a home-based business, it can increase quite significantly if you plan to open a physical facility — ranging from $10,000 to $25,000 or more. Overall, the total you end up spending will vary based on the number of computers, specialized software (e.g., coding tools, graphic design suites), and hardware (e.g., projectors, servers, or networking equipment) you may need.
• Marketing and Advertising: While not strictly necessary to its initial formation, investing in a solid marketing strategy will be key to your computer training business’s success, particularly if you won’t have a physical location to attract walk-in customers. If you’re based from home, we recommend starting out with a smaller marketing budget of around $1,000 at first to find what’s most effective for your business, though larger businesses could easily invest $10,000 or more in order to reach their target market effectively.
• Insurance and Licensing: The final key initial cost to be aware of is ensuring your computer training business is properly insured and legally compliant. The total cost associated with obtaining all necessary coverage and ensuring compliance with local licensing regulations can vary, but will typically fall somewhere between $1,500 to $5,000 depending on the specific services your business offers, as well as its location.

It’s also worth mentioning that — while we recommend against it for this business model — if you decide to open a dedicated training center, your facility costs will also be one of your largest initial expenses.

While leasing a physical space is becoming increasingly unnecessary due to the rise of virtual classrooms, you could easily spend between $20,000 and $50,000 on this if you do decide to go down this route.

In terms of ongoing expenses, you’ll need to account for regular costs like office supplies, equipment upkeep, marketing efforts, business insurance renewals, and any necessary software updates.

Additionally, it’s a good idea to factor in the continuous education and certifications you and your staff will need to obtain periodically, as this is crucial for staying competitive and ensuring the long-term success of your business.

Earning Potential

Starting a computer training business offers significant earning potential due to the low overheads and minimal capital requirements involved, particularly if you avoid setting up a physical facility.

Unlike other businesses that require substantial investments in equipment or inventory, a computer training business can be launched with basic tools like a computer, access to the specialized software you plan to teach, and internet access.

While there are a number of different ways to earn money as a computer training business — including one-on-one training, live classes (both online and in-person), webinars, and workshops — the key to maximizing your earnings is to focus on online self-study courses.

This is because with a minimal upfront investment of time and money you can create pre-recorded video lessons or online modules that can teach many clients simultaneously. However, the real benefit of this business model is that it allows you to generate passive income — once the courses are created, they can sell repeatedly without requiring constant active involvement.

For example, if you create a 20-hour computer basics course priced at $1,000 and sell it through an online learning platform, you might earn $700 to $900 per sale after platform fees are deducted. If that course sells 500 copies in a year, that’s an extra $350,000 to $450,000 in passive income without any additional production costs.

While offering one-on-one classes can be a great source of additional income, these should be considered a premium offering due to the additional time and effort they involve. While you may charge a higher rate for them, don’t expect 1:1 training to be the primary source of your income; the bulk of your revenue will come from online courses and group sessions.

Overall, the long-term earning potential of your computer training business will heavily depend on your ability to stay updated with emerging technology trends. By constantly learning and adapting your courses to cover the latest industry advancements, you’ll ensure that your training remains relevant and that people seek your expertise to stay current with changing tech landscapes.

6 Steps to Starting a Computer Training Business

In order to start a computer training business, you’ll need to complete the following steps:

1. Planning Your Computer Training Business
2. Registering Your Business
3. Opening a Business Bank Account and Credit Card
4. Establishing Your Brand
5. Getting all Applicable Licenses and Permits
6. Obtaining Business Insurance

We’ve broken each one of these down in more detail below.

Still exploring your options? Check out other small business ideas.

Step 1: Plan Your Computer Training Business

Before diving into your computer training business, you’ll need to spend some time conducting thorough market research.

This can involve analyzing the local market to understand the demand for computer training services, identifying potential competitors, and assessing the target demographic.

This will help you evaluate the financial viability of your project — including projected revenues and expenses — as well as determine the best location for your business.

Finding a Suitable Name

Choosing the right business name is both important and challenging.

Your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.

If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide or use our Computer Training Business Name Generator tool.

If you do have a name in mind, we recommend researching the following to confirm it’s available:

• Your state’s business records
• Federal and state trademark records
• Social media platforms

You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.

Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for a computer training business.

Develop Your Computer Training Curriculum

Creating a well-structured and effective curriculum is key to the success of your computer training business — but how do you know which topics to cover in your teachings?

Before you start developing your course content, you should first try to hone in on the particular specialty or niche you’ll focus on. To do this, we recommend considering the following questions:

• What are you an expert at already?
• What do you have experience in?
• What have you had results in?
• What do people often ask you questions about within this area?

Once you’ve identified a specific in-demand topic, narrowing down your focus to target more specific audiences or skill levels is essential to ensure you create a more tailored, effective course that sets you apart from broader, more general offerings.

As an example, instead of producing a general course on “How to Use PowerBI”, try a more niche offering like “How to Use PowerBI for Advanced Financial Analysis”. These more specific topics will appeal to niche professionals looking for targeted, specialized training that directly relates to their day-to-day work.

With this out of the way, you’ll need to produce an outline of your curriculum, breaking it down into major sections and filling in the gaps with more detailed information. Make sure each lesson logically builds upon the previous one in order to guide your students through a clear progression.

Once your content is ready, upload everything to a course hosting platform like Thinkific, Teachable, or Udemy, where students can easily access and complete the course.

Step 2: Register Your Business

One crucial aspect that cannot be overlooked when starting your computer training business is the importance of establishing a solid business foundation.

While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs — especially when it comes to computer training businesses (with potential liabilities and debt).

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.

In practice, this means that if your computer training business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

Note: If you’re interested in more information before getting started, we recommend having a look at our How to Start a Business guide (DIY) or our in-depth Best Business Formation Services review (for those opting for a professional service).

Step 3: Open a Business Bank Account and Credit Card

Using dedicated business banking and credit accounts is essential when operating as a business owner; this is because when your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) can be at risk in the event your business is sued.

In business law, this is referred to as piercing your corporate veil and is a result of the fact that not having a separate business bank account can be interpreted by some courts as evidence that you are not treating your business as a separate financial entity.

As a result, you could lose your limited liability protections even if you’ve registered a separate business such as an LLC or C Corp.

There are also a variety of practical and economic benefits to this step, such as a larger access to business loans and a more legitimate look.

Getting a business credit card can also be a great idea as it can help you build your company’s credit history from the start.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Step 4: Establish Your Brand

Another essential step to standing out in the competitive industry of computer training and online courses is creating a strong and recognizable brand.

While most people associate “branding” with a logo or a catchy name, it means far more than just this for a computer training business — it’s your commercial identity and the embodiment of how potential clients will perceive your services.

In other words, it’s how reliable and trustworthy your business appears to consumers as well as why they should believe you’re an expert in the area you claim to be.

To successfully establish your brand, there are two key elements you’ll need to focus on:

• Highlighting your Unique Value Proposition (UVP)
• Developing a brand voice that resonates with your target audience

What sets your computer training business apart from the rest? Perhaps you specialize in a specific niche, such as training healthcare professionals on industry-specific software, or you offer personalized, one-on-one coaching for corporate clients. Whatever it is, make sure your specialty is made clear to your audience so they know why to choose your business over others.

Next, develop a brand voice that resonates with your target market — whether you opt for a professional, approachable, or technical tone, consistency is key. You’ll want to reflect this brand voice equally across all of your communications, including your website, social media, and marketing materials.

For instance, if you’re focusing on corporate training, a professional and authoritative tone might be more suitable. On the other hand, if your focus is on training individuals with basic computer skills, you might want a more friendly and approachable tone.

Step 5: Secure All Necessary Permits and Licenses

In general, a computer training business shouldn’t face extensive licensing requirements, but it’s worth double checking applicable local laws to ensure you comply with general business regulations.

In the sections below, we’ve broken down some of the permits and licenses your computer training business may be required to obtain (if any).

Sales Tax Permit

If you’re selling online courses, you may be required to collect sales tax on these digital products depending on your location.

While this isn’t always the case (e.g., in states like California and Florida), businesses based in over 30 states will be required to collect sales tax on digital products like online courses, downloadable software, and eBooks.

A sales tax permit is a legal requirement for you to be able to legally collect and remit sales tax to the appropriate authorities. However, since the requirements regarding its application vary on a state-by-state basis, be sure to check your state’s specific regulations regarding this.

Business Operation Licenses

At a state level, your business may be required to obtain a business license in order to operate — though this will depend on your location.

This process generally involves submitting an application, paying a fee, and meeting specific state requirements. However, some states may also require you to provide a detailed business plan or proof of insurance as part of the licensing process.

Home Occupation Permit

While not common, if you’re operating your computer training business from home, you may be required to obtain a home occupation permit depending on your jurisdiction to ensure that you’re complying with zoning laws and local regulations applicable to home-based businesses.

California is an example of where this would apply; in this state, you’re still required to obtain a Home Occupation Permit for a home-based business even if it has no foot traffic or physical storefront.

Step 6: Get Business Insurance

In addition to securing the necessary permits and licenses, you will need to obtain the right business insurance.

Note

Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.

While specific coverage needs may vary based on factors such as location, size, and unique risks, there are several key types of insurance that most computer training businesses should consider.

We’ve briefly outlined these below.

Errors and Omissions Insurance

If you’ll be offering expertise, particularly in areas like business training, technology, or legal matters, E&O insurance will protect your business from any liability related to the information you’re providing.

For example, if a client or student claims that your advice or course caused them financial loss or harm due to inaccurate or misleading information, this policy would cover legal fees, settlements, and judgments.

On average, you can expect to need to spend between $50 and $150 per month on this type of insurance, depending on the types of courses you provide and the size of your client base.

Cyber Liability Insurance

Since your computer training business collects personal and payment information from customers, investing in cyber liability insurance is also highly recommended.

This insurance protects your business from costs associated with responding to data breaches, cyberattacks, or unauthorized access to sensitive client information — such as the expenses associated with notifying any clients that have been affected, recovering their data, and dealing with legal liabilities.

If you decide to go for cyber liability insurance, you can typically expect to spend between $75 and $200 per month on it in order to keep your computer training business adequately protected.

Workers’ Compensation Insurance

If your computer training business will have employees, workers’ compensation insurance is likely going to be a legal requirement depending on your state.

This insurance policy provides coverage for medical expenses and lost wages to employees who are injured during work.

The average cost of workers’ compensation insurance ranges between $50 and $200 per employee per month, but this can vary based on factors such as payroll, location, and (once again) your business’s specific risk profile.

Ready to Get Started?

How to Start a Computer Training Business FAQs

Who is the target market?

The target market for a computer training business includes individuals or professionals looking to improve their digital skills, such as beginners, corporate employees, or industry-specific professionals.

Businesses also commonly seek training for their staff on specialized software like Microsoft Office, Salesforce, or industry-specific tools like AutoCAD or Power BI.

How much can you charge customers?

The amount you can charge depends on the course intensity. While self-study courses on industry-specific programs generally range from $500 to $1,000, more intensive courses, such as those offering live Q&A or coaching, can charge up to $2,000 or more.

If you also offer additional one-on-one sessions, these will typically be priced at a much higher premium.

How much profit can a computer training business make?

When run correctly, a computer training business can earn significant profits due to the low overheads associated with this business model.

For example, with just one 20-hour course valued at $1,000, you could generate between $350,000 and $450,000 in passive income a year after platform fees. This doesn’t even include any extra income you could make by offering extras such as live classes and one-on-one training.

How can you make your business more profitable?

To increase profitability, it’s essential to focus on offering online, self-study courses that generate passive income as this allows you to reach a larger audience without requiring constant active involvement.

While one-on-one sessions will carry a premium price tag, it’s important to remember that this shouldn’t represent the bulk of your earnings, just a nice extra.