How do you start a test prep (SAT/ACT/GMAT/LSAT) business in 2027?

Test prep in 2027 is a barbell: digital SAT and digital ACT have flattened the easy-content moat (everyone has the same Khan Academy + Bluebook practice), but high-stakes grad tests (LSAT, GMAT Focus, MCAT) still pay $150-$400/hr because a 5-point swing is worth $100k+ in scholarships. Honest 5/10.

Startup costs. Official prep books and digital licenses $300-$1.5k. LSAT requires LSAC PrepPlus ($120/yr/account). Diagnostic-tracking software (Atlas LSAT, Manhattan Prep tools) $500-$2k. LLC + insurance $500-$1k. Website + booking $500-$2k. Optional: rent a tutoring suite $400-$1.2k/mo.

Credentials. No license. What sells: your own 99th-percentile score (170+ LSAT, 750+ GMAT, 1500+ SAT), screenshots welcome. Tutor.com, Varsity Tutors, Wyzant verify scores. A degree from a target school helps for college-admissions adjacent prep.

Customer acquisition. Wyzant, Varsity Tutors, PrepScholar take 20-40%. Direct: high school college-counselor outreach, Reddit (r/LSAT, r/GMAT — but no spam, contribute first), IG score-jump reels, Facebook parent groups. Referral fees to existing tutors $50-$150 per booked student.

Revenue model. Hourly $60-$400 (LSAT/GMAT top end). Packages $1.5k-$8k for 20-40 hrs. Group bootcamps $400-$1,200/seat.

Year-1. 1-2 sections/year (SAT cycle, LSAT June/Aug/Oct). $30k-$90k gross solo, scalable with subcontractor tutors at 40-60% rev share.