Will the economy hurt my business?

Will the economy hurt my business?

Sounds like an obvious question, but the answer is not completely obvious to me. As a dance studio owner of less than 10 years I have not experienced a downturn in the economy the likes of the one we are facing now. I know that dance studios have been around for a really long time- so what's in their business model that has kept them running all these years, even during economic hard times? What's the secret to staying afloat and keeping kids in the classroom?

When I look at my business I feel like I give an great product at a reasonable price. I know people (and my customer target group) invest in their children before all else. I know as a mom I would do without to make sure my daughter could keep dancing. So what's the answer?

The only way to know if the economy will hurt you is to start asking your customers. I am working on my annual customer survey to every parent - I hope you all do these too- feedback from parents is very valuable. Each year I ask if we met their expectations and other typical stuff. However, the most important question I ask them is "Would you recommend us/or Have you recommended us to a friend or family member." This is the all-important question- to understand word of mouth marketing impact. And word of mouth is a powerful method of marketing during troubled times. People trust each other more than anything else.

This year I'm working on adding a question or two tied to the economy to my survey - Will you be able to continue to provide your child with dance classes next year? Or, what can we do to help you with more flexible payments? etc... I don't have the right question yet, good questions take time, but you get the idea.

I encourage you to start thinking about a question or two you can ask to make sure you can respond and react smartly to the downturn next season too.

Dropping your price is not necessarily the best option(even though your customers may tell you to do it); increasing the value of your product is probably the most sound advice.

You could consider offering "specials" or "loyalty rewards" to existing and new customers. Remember, not to leave the new deals for the new students only. Even if it's a free pair of tights or a free logo'd bag (can be a marketing expense for you, ask your accountants) it can go along way in this deal seeking economy we are in- so reward your customers!

Some other random marketing ideas:
Re-packaging your classes to be more affordable without lowering price is also an option. Shorter term- less price, but at same hourly rate for you. Allows parents to keep some flexibility without committing to a long term service agreement making them feel safe spending money.

Summer programs are probably the most at risk right now. You could offer a free class as part of your package to get people over the hump or other added value efforts.

Other marketing tricks would be to say "we are not raising prices this year" - holding the barre' on prices.

Look for alternate sources of funding, health care plans that cover some classes as part of a fitness program. This is working well at my school. You just may need to rename and invoice differently to make it work for their needs.

Bottom line is you need to be empathetic without sounding to desperate in your conversation with customers in person or in your marketing materials. The economy is tough on all of us, but we'll get through this with some creative thinking.

Pigeon Toes Quandary

I know all teachers have had students with varying degrees of Pigeon Toe, I have had a few myself in just the past few years alone. My latest quandary comes from one of my dear three year old's. She has severe "turn in" a near 90 degree inward turn when she doesn't concentrate on her position. Just this week, after a challenging time skipping I finally decided to talk with the parents. We've been having class for about 6 weeks, so I'm more comfortable with the student and parent now. I explained my observations and they agreed. The trick is the girl's doctor has told the parents "not to worry about it, plenty of athletes are pigeon toed." The Mom told me she's asked the Dr. at nearly every visit about it with the same response. Now that I've opened the door for conversation she almost seems relieved that I've noticed and want to help her find a solution. I explained that it's not her feet, but the rotation from the hip which effects the turn in, and that left without therapy she'll be prone to injury her whole life. Not to mention, it would be difficult for her to excel at dance or other sports. My advice was to get a second doctors opinion, consult an orthopedic doctor, and/or a chiropractor to get some options on treatments and therapies. I also showed her some at home stretches and things to do herself with her child. As well as things that I do during class to help her.

I found it interesting that this Mom instinctively knew something more needed to be done, but that the doctor's comments were so powerful he could override that instinct. One of my observations was that this first time Mom of an adopted child from another country had the instincts, but not the confidence to challenge the Dr.-- maybe because of the fact she's adopted, I'm not sure.

I walked away from the studio that night knowing that I really made a difference in the life of this child, from just one simple conversation. Now, the Mom feels empowered to get second opinion and to aggressively treat this child while time and growth are still on her side. Just one more reason why I love to be a dance teacher. We really can make a huge difference in the lives of children.

Making your community stronger

Many times we as small business people get so caught up in running our own businesses that we forget to step back and remember to work more for the community live in. I'm currently working within my community of Brodhead Wisc. leading a group called Forward Brodhead. We are working to make sure our community is strong for the future of our kids and our businesses. Are you living in a community that's struggling to push ahead and provide a unique, branded experience? A book called 90 days to a winning community inspired our group you should check it out. The author is James Dittoe. We as dance teachers can bring our creativity to the cities we live in by organizing and leading in addition to supporting and growing the Arts in our communities.

You have many gifts as a dancer. Make the community your stage and choreograph your business' future by creating a strong community. It may take more than 90 days, but it will be a great investment in your business future. If the community stays strong, so will your business.

To build or not to build that is the question

Our school is bursting at the seams! We added 35 new students putting our total to 190. For a small town this is a big school and we just keep growing! Problem is we need a new space, or at least I feel like I need my own space. We've been renting now for 7 years. I wish I had all that money invested in a place of my own looking back. The question is now with this down turn in the economy where does Dance fit in? Are there teachers out there that have weathered economic downturns in the past? What did you do to make it through? Is now the time to build, when I can get a better deal on the real estate? Or is it best to wait it out?

I would love to hear from Teachers with experience in this topic, I'm sure I'm not alone in this problem. To build or not to build that is the question!