Double Dipping

By Charlotte Klein



For this couple-turned-business-partners, expanding their school meant keeping things closer to home.

 

I opened my first school more than 50 years ago, in my mother’s basement in Worcester, MA.Because of my perseverance, love for the art, and dedication to quality dance education, I survived all the obstacles that new school owners face. Over time, the Charlotte Klein Dance Center grew into one of the most respected schools in New England.

 

By 1983 I was feeling overwhelmed with the business and management aspects of operating a school. It took my focus away from the creative side and prevented me from providing a well-rounded dance education for my students. However, my school’s enrollment was expanding rapidly. Coincidentally, my husband, Ben, had become disenchanted with corporate life. It was time for a change for both of us, so we decided to join forces. Ben and I became partners in the dance business. Immediately, reality set in—we needed to replace his salary.

 

Because the profit from one school did not provide us with sufficient income, we started thinking about opening a second location. Then one day the manager at my bank asked me if I had ever considered opening a branch school. She explained that the Westborough area was growing rapidly and might be a good place to branch out.

 

After studying the demographics of the area (especially young families) and its potential to support a school, we discovered that the bank manager was right. Soon we were investigating location options. The process was a great learning

experience; you have to consider every detail if you’re going to make an investment. Unfortunately, our first choice had no easy access from the highway. Then we found space in a shopping plaza that was a perfect fit. It had ample parking and space for two small studios; plus, the shopping center had a discount children’s clothing store, which would draw potential clients to the area. Once we had decided on a location, we obtained the Westborough churches’ and temples’ schedules for religious classes and tried to schedule our classes around them.

 

Because the space was not ready for a September opening, we hosted registration and an open house, which included performances by students from the Worcester studio, in a partially completed studio. Our newspaper advertisements during August and September emphasized the opening of a regional branch of the well-established Charlotte Klein Dance Center. Our reputation followed us, which helped build enrollment faster than would have been possible with a new school. Still, during that first year we lost $1,200 per month. We stuck it out, and as enrollment increased in the second year, we turned that monthly loss into a small profit. The school has been growing ever since and is now more profitable than the original school, due in part to its location and a shift in demographics. At first we ran the schools as separate entities, including their recitals. But as the businesses grew, running four shows over two weekends became too exhausting and expensive. Now we combine the cost of lighting, sound systems, and programs by producing four recitals on the same weekend at a nearby college auditorium. Sometimes I wonder whether holding the recitals in each school’s community would be a better marketing strategy and attract more area residents to each location. However, for us the convenience and financial advantages of using a common recital location make it worthwhile.

 

Expanding the business brought new challenges, and we learned by trial and error. For example, the Westborough students began to show an interest in competition and the more intensive training available at our Worcester school, so we established an intensive program at the new school. But since those students did not have the experience that our Worcester dancers did, we decided to enter the two schools in competitions under different names. Not a good idea! We quickly realized that the Westborough students felt like second-class citizens. They needed experience, and would learn from attending competitions, but at the same time they needed to feel like they were a part of the Charlotte Klein Dance family. However, a suburban community like Westborough offers so many after-school activities that it was difficult to keep high school students interested in coming to multiple weekly classes. Ultimately, we had to ask those who wanted to dance at a higher level to come to Worcester.

 

With the schools flourishing and a combined population of more than 750 families, Ben and I decided to open retail dancewear shops at both locations. Making dancewear available was a convenience for our students but the cost of inventory and personnel to run the shops made the stores a poor financial decision. In addition, we were competing with discount mail-order and online retailers. After a few years we closed the stores and focused on running the schools. We converted the former shop area in our Westborough school into additional waiting room space and expanded the studio. In our business you have to sell time and space; now we can accommodate more students comfortably during prime studio hours.

 

I simplify management procedures by having faculty members from both locations bring each day’s paperwork and payments to the Worcester office for processing. For recital planning, I make a spreadsheet that combines all the classes according to level and indicates which recital they will perform in. If I have four kindergarten classes and each one is in a different recital, I may use the same costumes and music for all four. This allows me to take advantage of costume discounts and decreases the number of songs I have to record for the performances. Sometimes a teacher teaches the same level in both studios and uses the same costumes and choreography.

 

By streamlining procedures and relying on our office staff and faculty at both locations to physically run the business, Ben and I are able to direct the entire operation from our office in Worcester and from home. We oversee everything and everyone who works for us, and as a result, we can continue to offer the well-rounded dance training I’ve always believed in.

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