Expand or Not?
I opened my school
in September of 2005 with close to eighty students and now we
have more than one-hundred. Of course, I feel very positive
about the future, but I don’t know what I’m going to do about
space. We’re a one-room dance school with most of the
prime-time hours for classes already filled up.
If I stay where I
am, I will start to make a profit this fall, which I consider
a wonderful thing. But, I could end up in a place where I’m
turning students away. Or, I could move to a larger space,
more rent, more teachers, etc. If I choose the latter, then
I’m going to go more in debt. Do I stay where I am or move on
to a bigger space with bigger expenses? Another thing that
concerns me is the personal attention I currently offer my
students . . . I think that’s why I’m growing so fast. This is
hard for me, what would you do? Thanks—Sarah
I
had the same problem when I opened 13 years ago. My
enrollment grew so quickly over the first few years and we
needed more space. I acquired a loan and purchased land
available a block from my location to built my own studio. It
was a major decision, but the best step I have ever taken. I
now pay a mortgage vs. rent and have control over all aspects
of the business. My building is 4 times the size and my
payments are the same as the rent that I was paying. I was
able to hire quality teachers who shared my dance philosophy
and style of teaching. We now have 10 teachers on staff, but
I am there every day making sure that the classes are run in
the manner that I want. We are now about to outgrow our space
and are looking to open a second location to help with the
overflow. Good luck with your decision. If you can secure
the financing, it is worth the effort. My decision has really
paid off!
--Denise
Hawkins, Overland Park, KS
I started out with 83 students in a one room school and did
not expand until I had over 200 students. People know there is
something good about your school when classes are closed.
People then come running when you expand. I jumped to about
500 students after I added a second studio. I now have almost
1,000 students.
--Lisa Gold,
Highland Park, IL
I would stay
put for a couple of years. I expanded and then downsized. It
is difficult to find teachers who will give the personal
attention you will give. To me that is the major drawback.
I'd rather have a waiting list and have every class filled
before I considered expanding.
--Judith
Johnson, St. Petersburg, FL
It's quite a wonderful feeling to have all your classes full,
with parents still trying to enroll their children in your
school. I've been in your situation. I stayed where I was for
a good many years while the reputation of my school grew.
I could easily have moved to a larger location, but by
remaining small (a one room studio with 200 students attending
classes once a week), my school was perceived as being
somewhat exclusive. Still, I longed for a larger location, and
years later, I finally moved. The expansion was very exciting
and it was good, but everything expanded. Higher rent, more
teachers, more students, more parents, more hours of
paperwork, and of course, more taxes.
Am I
happier? In some ways yes, and in some ways no. Am I making
more money? It all depends on how you look at it. Sure,
there's a lot more money coming in, but a lot of it is going
out for expenses, too. Nevertheless, my school was ready for
the change, and I don't regret it.
My advice to you would be to stay in one spot for at least 3
years and let your reputation grow. I've learned that people
always put a higher value on what they can't have or can't get
easily. It's human nature. Take some time to enjoy your
success!
--Micky Powell, San Francisco, CA
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