Teacher, manager, accountant, marketer - do you were these hats and more? As a studio owner, there are checks to write, website and social media updates, newsletters, ad proofs, recruiting and training teaches, scheduling and maintaining client accounts, follow up calls, and thank you cards. For profit or not, all of these tasks require money, time, and energy.
Return on Investment: When considering how use your money, time, and energy, always ask questions: "How will this improve and grow my business? Will it keep current clients happy and satisfied, or will it bring new clients to the studio?" Here are a few things to consider.
Budget your Resources: Cash flow is a dynamic variable that ebbs and flows with the tide of economic change. Setting a budget safeguard your business’ cash flow. Cash flow is the amount of money you have in the bank at any given time. Experts recommend a minimum of three months worth of cash to cover minimum operating expenses (rent and utilities, bank card processing, and payroll). If your monthly minimum is $5,000, you would need to maintain a cash flow of $15,000.
Forecast Revenues: Do you know what your revenue and payroll were last year and the year before? How about your product sales, expenses - fixed and variable? Being able to anticipate, allows you to plan. You’ll know when you its best to make a large purchase and when it’s best to wait.
Improve your Offerings: Being confident that you have more than enough capital to pay your fixed expenses each month, gives you the confidence to grow your business. Selling memberships whenever possible negates the need to "re-sell" clients each month, and allows more time for reach new prospects and improve offerings.
Be Efficient: Use a software program to manage your business such as the Body Mind Software program. Clients can make purchases and reserve classes on-line, and you can manage your studio even when you are not there. Create efficiency such as form letters for your newsletters, emails, and ad promotions. Constant Contact is a great program for web emails. Once you create something that really works, keep using it.
Trade for Services: Always ask yourself how best you could be using your money, time and energy. Trade a client for cleaning, accounting, or personal services. Trading with hair stylists can have the added benefit of being a great source of referrals as they know countless people in your community.
Earn Referral Business: Our value is based on the quality of our client's most recent class experience. Countless other exercise venues compete for our client’s time, energy, and dollar. If we take care of our clients, they will take care of us. Our clients are our greatest source of referral. Always place tremendous value on client contact and service.