Tracking Gross Revenue
An important part of the statistics that you should keep is your Daily Revenue numbers. These should be recorded by each source each day and checked against your goals on a weekly basis.
Revenue by Source
The first part of the Revenue by Source section includes money that you’re given up-front for Intros, Enrollments, and Renewals.
Intros is the amount of money you charge for your trial course. Most schools charge between $19.95-$49.95 for their Intro courses- yet others offer a free trial.
Enrollments is the initial investment money you received from a student joining the school. Typically, this is at least two months’ tuition. For instance, a program is $199 down payment/registration and $99 per month for 12 months or for an ongoing program.
Renewals is the initial investment a student makes in order to renew or upgrade in your school. The best strategy for this has been the Black Belt Club. If you do not have a solid system for upgrades and renewals, this stream is dry for you.
PIF if you received any paid in fulls (a.k.a. cash outs) for either enrollments or renewals then add them to the appropriate category.
Recurring tuition usually includes Enrollments and Renewals and is the lifeblood of your school. As you grow, your monthly tuition should grow as well.
Ideally, your monthly tuition would cover your base operating expenses each month.
For instance, if all the monthly expenses, including your salary, totaled $12,000, your monthly tuition collections from your billing company would cover that amount. In that very healthy scenario, these other streams are 100 percent profit. Mind you, this is not easy to accomplish, but even 75% of expenses paid from your billing check would be good.
Enrollments & Renewals is the amount of monthly tuition each student pays on a reoccurring basis.
This is one of the most under-utilized areas of revenue in a school. Consider your retail shop as though it were a separate business. Open a separate business checking account for your retail, and deposit all gear sales revenue into that account to avoid spending more than you make.
In addition to selling items like uniforms, gear, books, DVDs, etc; offer at-home training equipment, an assortment of cool shirts, and more.
Special events are a great way to bring in extra income so try to host at least one event a month even if you already charge for testing. These can range from nunchaku seminars to board-breaking, self-defense seminars, birthday parties, kids lock-ins, musical forms, guest instructor seminars and more.
Miscellaneous income includes just about anything else that generates revenue and is not tuition-related and can add a nice amount of income to your bottom line.
Imagine if you held one event a month and charged around $30.00 for a nunchaku seminar and gave away a pair of chucks for the event. If you have 100 students and get about a third of them to participate- you can easily gross another $1,000 in revenue- with about $900.00 in pure profit.
I didn’t include testing with Special Events, because exam fees are a little different. Most exams for stripes occur in class, and they usually don’t require a fee. The main graduations on the weekends require additional work and staff, so it’s reasonable to charge for these events.
Typically, exam fees range from $30 to $50 and increase with rank. Black belt exams can be as much as $200 to $300 but, to justify this higher fee, it’s a good idea to provide additional prep classes for the black belt candidates.
If your school is large enough and you rent an auditorium to showcase your graduating black belts, be sure the exam fee should cover the additional expenses.
Action Steps: What to do now
1. Examine your current revenue streams and decide if you’d like to implement or improve a revenue-generating area.
Tip: Many schools have room to: increase monthly tuition prices, add or increase the initial investment on programs, or host more paid-for events