Somewhere in your early learning days you experienced a studio that was fun, that had energy, that you looked forward to going as often as possible. Ten, twenty years later you are done with your competitive days and thinking I’m paying too much in floor fees and I have no control. Although I cover all the expenses, and planning that you have to do to open a studio in another page, this page is about the vision you had when you planned everything. The goal is NOT to talk you out of owning a studio. It’s a reality check. Alright here we go…
You were going to tell a contractor what you wanted, file a few permits and licenses and open a few months later to a full house and lots of media in attendance. I chuckle as I write this because I’ve seen lots of owners make this mistake in my past 40 years. If you wanted a small 2000 sq. ft. studio so you could teach privates and rehearse at your convenience, the first thing you’ll find is that between rent, utilities, insurance, music licenses, advertising, etc., you would have to teach 72- $100 privates to just open the doors each month. Now if your personal housing and expenses run around $5000 per month, you would have to teach 122 lessons before you even put anything towards your taxes, social security AND the loan you took to do all your construction, purchase you floor and mirrors and all sorts of other expenses. So in other words you would have to teach 30 hours per week (or 6 lessons/day) just to cover you expenses. Now if there are other teachers who rent space from you would need 30 lessons per day with a floor fee of $20. Ask any independent studio owner what their typical daily income is. Most typical studio owners never realize this until they are drowning in debt.
Along the way you had envisioned big parties, large classes and studio showcases. First thing you find out is that independent teachers are not going to support your parties, so you now have 20 ladies who will get 2 whole dances with you in a 2 hour party. Oh, and you are having to continuously make play lists so that everyone doesn’t get bored by the same music. Ooops, somebody clogged the only toilet and it’s overflowing. “Hey boss, we’re out of cookies and coffee creamer” Three clients paid for the party with hundred dollar bills and now you are out of change. Did I say it’s 20 ladies and 4 gentlemen? Oh and there was a setup of tables and chairs before and after and payroll for the door person collecting the money. Those two hours you use to live for as a student are now 4 hours of hell that just drag on.
That’s ok, we have group classes to bring in income. Because most of your private students are competitors, they won’t take your beginner level classes so your classes are dependent on new customers. Therefore your classes will be 45 minutes to an hour and will have all the energy of a funeral wake. If you can manage to have 10 students in class, between the receptionist and your time, you are making less than you make in a private and now, that shows on your face. Oh, and because you wanted to save money, you didn’t build separate rooms for classes. And because a privates in the same room with a group class are distracting, either you teachers can’t teach during prime hours or your classes are going to suck.
Oh, I’m sorry, did I pop your bubble of nirvana? Actually I am sharing what my first three years were like. When I started to discover the techniques that changed everything I had learned, it wasn’t a slow rise from the ashes, it was meteoric!
So now I’m going to tell you what you missed and somethings you can do to turn this around. In June 2022, premium gas in LA is running $7+ per gallon. Imagine you own a dealership that sells monster trucks and Hummers. That is what it is like when your clientele is private lessons doing mostly competitive dancing. You are one sprained ankle, from getting in financial trouble. We assume that most of these clients are very well off so you don’t worry that they can afford lessons no matter the political, financial, situation.
I have had students that take their entire family to month long vacations in far flung countries. Before they leave they are busy preparing and upon returning they are exhausted. This student who loved Christmas so much that she decorated 7 GIANT Christmas trees in her mansion. The entire ranch house roof and 16 trees lining the drive were covered with lights, had over 1 million LEDs with 50 thousand XLR cables, a moving train, a 23 foot lighted video board synchronized to a FM radio band with personalized holiday music. LA tv stations were covering this circus- and the ranch was in TEXAS! Why am I telling you this? She started decorating in SEPTEMBER.
Now that is one student. You can plan and prepare around her lifestyle. But imagine what happens when you suddenly pop an achilles, tear a meniscus, or break a leg during a skiing vacation. I’ve seen all happen. Now you are the one that is 4-6 months without being able to teach.
Pull out out lease, your conditional use permit, or local city code. Do you see any prohibition from extending your operating hours? Great! Now pay attention- you are paying rent on a building. That building is there for 720 hours in a month. If you expect to work 40 hours a week, that is 160 hours. That means that your building is available another 560 hours to make money. Old thinking tells you that studios should run from 2-10pm Mon-Fri. That doesn’t make you nearly enough to cover expenses so you open early and a few private lessons throughout the day barely add to your income when offset by air conditioning, lights and your presence. Early in my owner days I created a list of 25 revenue streams- NOT related to private lessons. When people think small, the first thing they will do is come up with excuses. I don’t want to work that hard. Who wants lessons at 4 am?What kind of people would take lessons at night? I don’t want to sublet my studio for rentals.
Now, the schedule you choose depends on your lifestyle. Single? You might want to work the late hours. Married with kids? You might want to be off when they are out of school and work when they are in school. In other words, your choice. Now the key, is how to fill those hours.
First of all you have to get rid of the thought that real life is like Father Knows Best in the 50’s, Leave it To Beaver in the 60’s, the Wonder Years, Family Ties, or Growing Pains. Regardless of where you live there are thousands that work nights or graveyard shifts. Hospital Workers, Police, Restaurant workers, for example or lots of folks that get up at 3 am- International Securities Traders, Actors, people that drive to work by 5 am. All these folks will find your evening classes at 7 or 8 way too late, or in the middle of their sleep cycle. pm. But just like everyone else, they need human contact, fun activities as an alternative to couch surfing or being glued to Facebook. In the disco era, many of us went home after work to nap. Got up at 11 pm, hit clubs til 4 am, then went to breakfast, a quick shower and then off to work. Tap this market and you will be the only game in town and soon the biggest, most profitable studio in town. And while you may work more hours, you’ll enjoy it more! When you are ready to connect with these, I’ll be there to show you the back doors in.