Discretionary Spending: Martial Arts school closes by 3200+ in May!
From Tracy’s Business Guide:
July 6, 2008
For too many studios my advice will be too late
3,200++ Martial Arts Studios went out of business in the month of May alone. In the history of Martial Arts in the United States – nothing like this has ever happened. In one month about 20% of all studios closed their door. Most will never reopen! Most should never been in business to start with.
Starbucks is closing 600 locations this year because people cannot afford to pay $3 for a cup of coffee.
How do studio owners – especially those with 90% kids expect parents to pay $100 per month plus testing fee’s? Now they have the added expense of $4 a gallon gas.
This is a no brainier for parents: Cut out the kids Karate and Dance lessons.
Three Critical Areas are at the top of the list:
1. Keep your overhead low
2. Do everything yourself!
3. Teaching mixed martial arts is not the solution its part of the PROBLEM!Your goal for Studio Survival:
Keep you total Studio overhead below $2,200 per month. If you can’t do that there is a good chance you will go Bankrupt.
Warning: You still may not be able to survive if your personal living expenses are more then to studio can bring in.
Related posts:
- Discretionary spending hack in uncertain times
- Orient Century undervalued?
- Investors are suppose to understand Lehman Minibond when end a NUS Business School Dean doesn’t?
- WSJ: How to make a Spending Plan
- Economics: The Government spending masks the unemployment problem
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