The risk of starting as a traditonal physical tutor is much higher. On the outset, you'd be stuck with a two year lease on a physical space, an upfront cost of renovating it, purchasing furniture. Rent and running costs are also high. Moreover you'd still have to make the right call of setting up in the right neighbourhood, and be affected by competition nearby. 

Online tutoring has very low risk,  at most you have a $1000 computer that you can sell off, or use it for something else. You can stop anytime you want, and scale your business up and down whenever and whereever you want.

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