Many clubs face a slow down
every year during the months
of July & August. Factors
include summer sports, vacations,
breaks, etc.
Whatever
the reasons that contribute
to your lowered turnout for
the summer months, they can
have a harsh impact on your
club’s financial stability
if not looked after.
For
example if your enrollment
halves for these two months
and your rent is the same
(you are keeping normal teaching
hours); are you prepared and
able to cover these regular
expenses during this lull?
Ideally a club should have
2-3 months rent in the bank
at all times; understandably
though this may not always
be possible.
If
you are renting space in a
public area (a fitness center,
community hall, etc) you could
try negotiating for a rent
reduction for these months.
If you pay for space by the
month (calculated by the hour),
than you can reduce your class
time or combine the classes
for the summer only. This
could drop the rent fees as
the hours are significantly
decreased.
Your
club may or may not be a business,
but to stay open even the
most non-commercial club has
to maintain a solid income
to support itself. If you
are leasing property and teach
full time, then you are paying
the same amount monthly irregardless
of how many students you have
paying tuition.
In
this situation there are two
things you can do. One is
to cut costs by ensuring the
utilities are running at a
bare minimum...that means
the fans and the lights are
only on when needed!
Another
way is to explore what other
class options you have. A
great example is to offer
morning or daytime classes
for children. Many households
rely on double income so the
children spend time at home
alone. If advertised effectively
you could gain a sizable daytime
class of students on vacation
with little to do for the
day. A few hours away from
the house and exercising could
be a good attraction for parents
to enroll them.
Normally
too this will not interfere
with other summer sports &
activities and many coaches
are part-time and the main
events are on weekends.
Which
ever situation you are in,
the July & August slowdown
needs to be addressed in a
manner that allows classes
to continue for those months
without taking a financial
toll on your club’s
bank account.
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