An interesting topic came up with our members’ online group last week that I wanted to discuss – class capacities. As you would know by now, I’m a lover of the numbers… especially when it comes to how full your classes are.
When I start working with Studio Owners they say “Clint, I need more students but I don’t really understand what “more” means.” This takes some thought, doesn’t it? Just because you’re adding more students doesn’t necessarily mean they’re the “right” students, does it?
The first thing you need to do is get really clear on where your classes are at currently by performing audit on your numbers. Start by going through each class and work out how many students you have, the income that class generates for you and the expenses that class has. Then you need to work out the all important numbers – how many more students can you put into that class and what would the resulting income/expenses be if you were operating at that magic, full-capacity number?
Once you do that, you’ll see the difference between where you are and where you CAN be. Only then can you decide on what you must do to achieve those goals to boost your income.
Do this important exercise on all your classes and I’m sure you’ll have a smile on your face when you see what COULD be. One of our members did this and worked out that she could be making an additional $8,500 per WEEK because she was only around 70% of her full capacity. I don’t have to tell you that she started taking immediate action on her marketing plan!
You will also get a handle on those classes that are barely breaking even, or worse, losing money for you every month. Of course, you’ll need to move quickly on these. Perhaps you need to start combining classes or shortening class times to avoid losing money every hour. Only by digging into the numbers will you know for sure.
With those classes that have room to grow you will want to move on those as well. These are the classes you’ll start to actively market to quickly build your numbers.
Review these numbers each week! It’s crucial to the success for your business
Have a great week!
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