Determining whether your studio is ready to hire additional help can be influenced by two factors:

  1. The number of students you feel comfortable handling with your current resources.
  2. Your financial goals.

Problems Facing a Lone Instructor:

  • Handling Phone Calls:
    • Answering Machines: Using an answering machine for potential students calling for information is not ideal. They want to speak to a real person, and failing to provide that may result in lost opportunities.
    • Visitors Answering Phones: Never let visitors in the lobby answer the phone. The person answering should always sound professional.
    • Hiring a Receptionist: Not necessarily. A cellular phone is a good option for handling calls during class and when away from the studio. You can forward calls from your office phone to your cell. If you don't have a cell phone, step away from class to handle calls quickly, asking callers to call back after class if necessary.

Handling Paperwork:

  • Modern Technology: Computers are essential in most studios. A good database helps track student attendance, payments, and lesson plans.
  • Billing Company: Consider employing a professional billing company to handle accounts receivable. They can make collections more efficiently, saving you valuable time.
  • Bookkeeper: Hiring a bookkeeper to manage accounts payable and taxes can also save money by avoiding the need to hire an additional employee.

When to Hire an Employee:

  • Studio Income: Delay hiring until your studio income can accommodate the expense of an employee.
  • Considerations: Besides salary, there are employee taxes, social security, vacation, and other benefits, plus additional equipment and workspace.

Student Capacity:

  • Class Arrangements: The key is in how your classes are arranged. The balance between work and profit is crucial.
  • Experts' Suggestion: About 150 students per instructor is a good rule of thumb. Smart scheduling and a good leadership team program can help manage the load.
  • Maximizing Profits: Conduct business with low overhead and a lot of classes. For example, teaching three classes per day, five days a week, with a limit of 20 students per class allows for 150 students attending twice a week.

When to Consider Additional Staff:

  • Exceeding 150 Students: Once you exceed 150 students, consider hiring an additional staff member who can teach lessons and assist in marketing and sales.
  • Qualifications: This staff member should be capable of handling various tasks with minimal supervision.

Handling Intro Lessons:

  • Efficient Intro Classes: Consider incorporating intros into the enrollment process. Offer a 20-minute introduction followed by a five-minute sales presentation. Schedule a second intro only if the student doesn’t enroll after the first.
  • Dedicated Intro Days: Hold class intros on one day a week, such as Saturday, to focus energy and enthusiasm on gaining new students.

Maximizing Resources:

  • Financial Threshold: Don't hire a new employee until cash flow justifies the expense. Staff expenses, including your salary, should not exceed 35% of the total school gross each month.
  • Net Income Goals: A well-run studio should net between 40-60% of the gross annual income, which can be challenging with paid employees.

Location Impact:

  • Overhead Costs: The net income ratio may be affected by your studio's location. Studios in areas with lower overhead, like Oklahoma, may net more than those in higher-cost areas like Washington, DC.