Pipistrel LSA Flight Instructor reported an NMAC in the traffic pattern at a non-towered airport.

Narrative

My student and I had completed a flight to the practice area and did a full stop taxi back. While taxiing back to the runway; we heard a bonanza call that they were inbound. I do not recall them specifying how they would enter the pattern but they did say runway XX which was in use at the time. I knew they were coming from the south and the traffic pattern for XX is on the north side of the airport. We back taxied on runway XX and departed making calls prior to both on the CTAF XXX.X. As we departed the Bonanza made a call that they were entering the pattern. I had a visual on them at our 10 to 11 o'clock high. According to the ADS-B information I saw in the plane they appeared to be at the TPA (Traffic Pattern Altitude) and entering into the crosswind for XX right in front of us. I told my student to level off at about 400 feet and deviate to the right to avoid them. The pilot of the bonanza then entered directly into the downwind and continued to land uneventfully. They did make radio calls; however it was unclear how they were entering the pattern until we were already air born and on a collision course. Having to level off and deviate at such a low altitude was risky. It would have been safer for the Bonanza to overfly the field at 1500 then enter the pattern at a 45 degree angle into the downwind. Thankfully we had ADS-B in and saw them on the map and I was able to get eyes on them quick enough to maintain separation.