I do not read music, but I do know chords and progressions. I have played in bands and was in education, so I think that I could do a wonderful job of teaching beginner's guitar, but I am worried about not having a music theory background. I am patient and flexible. What are your thoughts?

A good guitar teacher at any level will certainly need to know how to read music notation and understand music theory. It is also beneficial to have some knowledge of tablature and playing music by ear. Although it is not required, it helps to have some official training in music such as a college degree, in order to prove to customers that you are capable of teaching them the correct material. Teaching is not so much about the teacher's technical skill, but rather their experience, education, and ability to coach and guide their students to learn to play the instrument.