One of the biggest issues most studio owners face is money leaks. There are essential things you must spend money on in your studio business but there are plenty of cracks where extra money can slip through without you even noticing it.
Here are 5 ways your studio might be stealing your money…
1. Your studio might be trying to look fancier than it is
It’s really important that your studio represents your brand. And that when your students walk in the door it feels safe, comfortable and welcoming. However there’s no point spending lots of money on decor, merchandise and other things that don’t make you money. Don’t play it big before you can afford to.
2. Too many staff members
To be fair, I usually see understaffed studios but there are a lot of studios out there that have miscellaneous staff members. Often these staff members are actually family members who are on the books and are paid a salary but don’t seem to do much around the studio. If you happen to have one (or several!) of these types of staff members it might be time to gently let them go or give them something to do.
3. Subscriptions
How many streaming services do you subscribe to for music? 2? 4? More? It’s absolutely necessary to pay for the music you use but make sure you’re actually using your services and licences. If you have a service you haven’t use in months, unsubscribe and then subscribe again when you find you need it. Repeat this process every few months to stop from paying for things you’re not using.
4. Not automating everything
If you’re still manually collecting class fees and manually checking them off as paid, we need to get you to fall in love with automation. Get systems sorted for everything you possibly can – teacher recruitment, class schedules, payments, chasing up missed payments. A human is needed to oversee these things but most of it can be automated and free up a lot of time and money.
5. Incidentals
Incidentals are unavoidable – I’m not suggesting you stop buying toilet paper for your studio but there are ways to be smart about it. For a start you can buy in bulk. It’s much cheaper to buy bulk toilet paper than it is to run up to the local shop every week and buy a couple of rolls. The same thing applies to cleaning supplies, tea, coffee, bobby pins – whatever you supply to your studio must be bought in bulk. You can automate this and sign up for subscription deliveries to avoid regular last minute expensive purchases.
These are just a few things you can do to stop your studio stealing money from you. These are just some little things to look at before making any major changes.
Happy money saving!
All my best,
Chantelle
