Optimise Your Guitar Teaching Business
Optimisation is a never ending process and an extremely powerful strategy. Its also largely underrated. Most of us go about our lives never really giving much thought to how to optimise. I am going to specifically talk about optimising your guitar teaching business but the ideas discussed can be applied in almost any area of your life.
Understanding ‘leverage points’
In both your guitar teaching and business there are what we call leverage points. A leverage point is simply a point where we have the ability to change the outcome. For example when a student first calls you to inquire about guitar lessons the outcome of that conversation can vary greatly. Saying one thing might result in a 20% enrolment on average where as saying something even just slightly different might result in a 40% enrolment. Adding another element to your presentation may again increase the enrolment rate to 50% and so on until you reach 90% or more. If you could double your current enrolment rate over a year that means twice as much growth based on just one leverage point.
Now apply this idea across multiple leverage points. In your teaching business this could begin with marketing. Examples would be improving your ad layouts or, if you are using Adwords it might be improving your keywords or on Facebook finding a better picture. If you could double your ad response rate and double your enrolment rate you have now doubled twice. In other words if you were spending $100 to get one enrolment before, now you are spending $25 from tweaking just two leverage points.
40x your investment
Next lets say the value of an average student enrolment is $500. If you were able to keep those students longer by reducing dropouts and take it to $1000 per enrolment you have again doubled a leverage point. This could be done by using a whole range of tweaks such as improving your communication skills, developing your course materials, offer more value to your students, engaging parents more and so on. So what was originally $100 for a $500 return or 5x your investment to $25 for a $1000 return or 40x your investment. Another way to view it would be like this. If you had $1000 to invest in marketing you would initially be getting $5000 back. By doubling just 3 leverage points you would instead end up with $40,000.
Getting to $1,000,000
Now we can put this whole idea on steroids and really accelerate your business’s growth by reinvesting the extra income. The extra income generated from doubling the 3 leverage points equals $35,000. Take the $35,000 and times it by 40 and and you’ll be looking at $1.4M. It will of course take some work but by identifying your leverage points and then working at improving the result at each point the end result will be well worth it.