When I first opened my martial arts school, I experienced a burst of initial success, grossing $5,800 in the first month. I thought I had it made.
However, within six months, my revenue had plummeted, and I was struggling financially. My ledger was filled with red ink, and I even drew an explosion where my financial graph dropped off the page.
In desperation, I reached out to a friend who was running a successful school. His first question was, “How many calls did you get last month?”
When I responded with an uncertain estimate of 10 or 20, he bluntly told me, “Probably doesn’t run a business. Probably kills a business.” The lesson was clear: "What gets measured, gets done."
The Importance of Tracking Metrics
If your school were a public company, potential investors would examine various indicators such as debt ratios, market position, earnings, and growth.
For a business to attract investment, it must show consistent earnings growth—ideally 20% annually.
Although you're not selling stock in your school, your investment's health still matters. To effectively manage your school, you need to keep track of essential metrics:
- Monthly Revenue: How does this month's revenue compare to last year or three years ago?
- Lead Generation: How many phone calls and emails does it take to acquire a new student?
- Cost of Acquisition: How much money do you need to generate the necessary contacts?
Without tracking these statistics, you are essentially flying blind. Metrics act as a heart monitor for your school, providing crucial feedback on its health.
When your school's performance starts to decline, the statistics will reflect this change and alert you before it's too late.
Avoiding Common Pitfalls
Many schools only realize they are in trouble when it’s too late. By then, they have no way of diagnosing the problem or implementing corrective measures. To prevent this:
- Implement Regular Monitoring: Track key performance indicators (KPIs) consistently.
- Analyze Trends: Compare current data with historical performance to identify patterns.
- Make Data-Driven Decisions: Use your statistics to guide business decisions and strategies.
By keeping a close eye on your school's metrics, you can address issues proactively and avoid the fate of many failed schools.
Don’t let your school’s heart rate drop unnoticed—ensure you have the tools and systems in place to monitor and improve your performance continuously.
Learn More: Explore MATA’s Statistics and Financial Control Section to gain deeper insights into managing and improving your school’s performance through effective data tracking.