Running a business is expensive. There are day-to-day costs, monthly expenses, annual bills that you'll receive, and even fees that pop up that you never expected. As a result of all these costs for running their businesses, many owners find themselves looking for ways to save a little green to stay in the black. If this sounds like you then read on, because below we've got five ways you can cut costs and therefore boost profits in your business.
5 Money-Saving Tactics You Need to Consider
- Invest in dance studio software
- Declutter everything that is no longer serving your business.
- Cut staffing costs where you can
- Eliminate unnecessary or unhelpful marketing costs
- Know your numbers at all times
#1 - Purchase Dance Studio Software
At first blush it may seem a little strange that the very first money-saving tactic we’re mentioning here is to buy something. However, before you just brush it off as bad advice, let's look into how dance studio software can actually help you save money in your business.
The entire idea of using software in a business is to help you do things more efficiently. When time is money, and employees are receiving hourly rates, it's important to find ways to save time in order to save money.
Dance studio management software can help you save loads of time, and therefore money in your dance studio, gym, martial arts facility or a similar business. When you use software that's designed to help you run a business like this, you'll find many of the tasks you perform on a daily basis become easier and faster to do. In fact, many billable hours can be eliminated completely from your weekly payroll!
For example, one of the things that you can do a lot more efficiently with dance studio software is scheduling and filling your classes. Without software you would:
- Spend hours creating class schedules and uploading them to a website, or worse creating a paper calendar.
- Then, you would spend time recruiting students. This could mean you email them, or call them, or even snail mail the news of your upcoming classes.
- Finally, after you hear that they want to join the class, you'll then spend even more time registering them, and ultimately invoicing them for their upcoming class. Assuming they pay immediately, the transaction is done at this point. However, in the event the payment has not been made, now you get to chase them for this money, wasting even more of your precious time.
With quality dance studio software, nearly everything related to scheduling and filling your classes is handled automatically for you. All you have to do is enter the information once into the platform, and then you can set up automatic emails that go out to your students and prospects letting them know the classes are available to sign up for.
At this point, without you needing to do another thing, your students can then register for the classes and be automatically billed for those dates and times. You won't even have to worry about whether or not the students have paid, or if their payment is delinquent, because good software will also take care of this for you as well by letting the client know if there was a problem with their payment, and prompting them to re-enter new information when necessary.
Studio management software isn’t restricted to saving you time and money on just scheduling your classes either. In fact, it can help you with the other four money saving tactics mentioned above as well. But, you’ll see more on that as we explore each strategy one by one.
#2 - Declutter everything that is no longer serving your business
Look around your workspace right now. How many things do you see in your current per view that you don't actually use in your business anymore? While this might seem silly to consider, think about the fact that every single thing that is taking up space is actually costing you money. When you're paying for square footage in a facility such as your studio, clutter is costing you that square footage, and therefore that cost per square footage.
Those boxes filled with brochures that you never used, the obnoxious amount of gear you got at “a really good price” but never sold, and even the extra containers filled with toilet paper and paper towels that you thought you needed to order but actually had plenty of - those are all taking up space and costing you valuable real estate.
Could that space that's filled with clutter be used for something else? Something that can actually make you money? In truth, it depends on how much space you have filled with junk. But odds are you can eliminate several things from your studio and repurpose that space for something better that can actually boost your bottom line.
What else can you declutter in your business to save you money?
Do an audit of everything that you're paying for in your business on a monthly basis. Think about things that you actually use, and things that you've not used in longer than you can remember. Use your dance studio software to help you with this audit. It will help you run the numbers on everything you’re spending money on. Look for things like:
- Subscriptions to the trade journals you never read anymore
- The magazines that keep coming and collecting dust because you don't have time to peruse them
- The local networking group that you haven't attended a meeting for in forever
- Even the monthly membership in the business mastermind that you joined in hopes of scaling your business one day
If you're not using things you're paying for, then you are simply throwing away money in your business. Declutter those expenses and let them go. They'll be there for you again if you ever want to sign up for them in the future. But, it makes no financial sense to spend all that money on those things that you don’t know and may never use.
#3 - Cut staffing costs where you can
Don’t let your employees catch you reading this. They might suddenly fear they are at risk for getting the axe! And, if we're being really honest, they might be. It's a sad but true reality, that in some cases a business owner has to make the hard decisions of letting people go for the sake of saving money in their business.
Let's say for example you have a class scheduled that no one is signing up for. Using your dance studio software you'll be able to easily see which classes are filling up quickly, and which ones are stagnant.
Try as you may, no matter what you do, sometimes you can't get certain classes filled. It might even be costing you more money to pay the instructor than it does to host the class if you don’t have enough students signed up for it.
Sure, in some cases you may be able to find a different class that that instructor can teach. Or you might even be able to see if the reason that no one is signing up is because the students have a conflict with the time or the day of the week that the classes are being held on. However, when the classes aren’t profitable, it might be time to make the difficult choice of whether or not that instructor should be moving on to another opportunity for the purposes of staying profitable in your business.
Perhaps another position that may be redundant is that of your office manager.
When you’re using dance studio software, many of the tasks that were once handled by an office manager, can now be done virtually and/or automatically. Many office managers handle things like invoicing, communicating with students, recruiting potential new clients, and scheduling and filling your classes.
Odds are you can already see how easily a position that relies solely on these tasks is no longer necessary, when software can get it done in a fraction of the time, and for a fraction of the cost. While software cannot replace everyone in your business, the truth is that it can at least make some positions redundant, and therefore save you money to eliminate them.
But what about the staffing cost of payroll? Can you save money on that?
If you're using dance studio software, the answer is yes. Employee payroll doesn't have to take all day, or even several hours to complete anymore. With good software, your employees can fill in their own time cards directly on the platform, making it that much easier for you to calculate their salary, and simply cut a check.
#4 - Eliminate unnecessary or unhelpful marketing costs
If you're like many studio owners you spent hundreds if not thousands of dollars on marketing last year. You bought flyers, you paid for brochures, you might have even spent an obscene amount of money on newspaper or radio ads. And what probably happened when you spent that money is, you didn't get a good return on your investment.
Grant you that some areas still benefit from these outdated marketing costs. On the other hand, as more and more people get their news online, and rely on social media and email to interact with the brands that they want to become patrons of, mass marketing should follow suit and be done online. The good news is that online marketing can also save you a significant amount of money, when compared with the costs of those old school marketing practices.
Using software you can send emails to potential clients, and keep in touch with current customers. Not only will they stay up to date on all the things going on in your studio, they’ll know you care enough to keep in touch with them.
One benefit of using quality dance studio software, is that you'll be able to create drip campaigns that go out to your email list when you want them to. If a new client comes in and does a tour of your facility for example, you can set up a drip campaign that:
- sends them an email saying thanks for stopping by
- follows up the next week with a second email asking them if they have any questions about your facility, and
- sends additional emails on scheduled times that reach out to them automatically to check in, and keep your business top of mind
#5 - Knowing your numbers can save you money too
Would it surprise you to learn that one of the reasons business owners end up paying unnecessary fees, is due to the fact that they don't know how much money they have in the bank at any given time? Think about the last time you made a purchase. Did you know whether or not the money in the bank would cover it? And, if you didn't know, did you make the purchase anyway?
If you purchased something for your business and didn't have the funds to cover it, you could have faced fees for insufficient funds. Or if you knew you couldn't afford it, but needed it, you may have ended up paying interest because of the credit card or loan you had to acquire to purchase the item.
When you know how much money you have coming in, and going out at all times, you're better equipped to make smart buying decisions in your business. When you're not equipped for these kinds of decisions, you can end up spending way more than necessary, thereby chipping away at your bottom line.
For example, if you needed new equipment in your facility today, would you have the funding to pay for it? And, would you know how much you needed to earn to cover the costs of that equipment?
With studio management software you'll know all of your numbers so that you can plan for instances such as this. You'll be better prepared to budget for unexpected expenses, and the expected ones as well.
Another example was mentioned earlier in this article was having extra paper towels, and toilet paper. When you’re using software to manage your studio, you can also keep track of your inventory so you’ll always know how much you actually need to order when it’s time to purchase supplies. Imagine saving the money this month on supplies simply because you didn’t over order anything. And, you’ll save that valuable real estate by not filling up your studio with an abundance of supplies you don’t yet need.
Saving Money Has Never Been Easier Than it is With Studio Management Software
The number one key to saving more money, boosting more profits, and running your business more efficiently is dance studio management software. And, the number one software we recommend is The Studio Director. We know what we’re biased, but it's because we’re confident that we created the software that answers all the needs of a studio owner.
Don't take our word for it, though. Try it for yourself for free. We're confident you'll find The Studio Director is everything you need to get or keep your studio performing its best, and perhaps even expand and grow beyond your wildest dreams.