Episode Transcription

28: Prepare For a Decrease in Revenue in Your Tutoring Business

  
Hello, lovely lady. Welcome to Classroom to Business. The podcast designed specifically for teachers working to become successful businesswomen and creating financial freedom and lifestyle flexibility. I'm Kirsty Gibbs, business coach and mentor for educators and teachers just like you who are ready to step away from the classroom and create something more.

The Classroom to Business podcast is committed to helping you grow your business, break down those barriers to success and replace your teaching salary without having to work more hours. It's time for you to find freedom and start being your own boss so you can once again enjoy what you do and wake up each morning loving life.

Let's get into it. In this episode, I'm going to be talking to you about preparing for a decrease in revenue in your tutoring business. Now, this might sound like a bit of a strange topic, but because we are coming up to the end of the calendar year, it is something that we all need to consider. Most of us have got our businesses to a point where we've got Regular weekly revenue coming into our bank accounts.

Now, some people they're charging at the beginning of the term. Some people are weekly, some people monthly, but you have got that income, that cashflow that you can rely on that is quite predictable and it's there to help you pay the bills we can usually manage. Those blocks of two week holidays throughout the year, and some of us continue to tutor during these times, but when it comes to the Christmas holidays, that big chunk of time that most of us are not continuing on with our regular students, then it can get tricky.

So, because we've got public holidays, because families are going away. And because we don't have our regular tutoring sessions, we need to think about this. And right now, if you haven't thought about this, if you don't have a plan in place, this is the perfect time to start doing that. So firstly, you've got a couple of options.

You can budget throughout the year so that you have got money set aside for the holidays and these. Big holidays in particular. Now, I'm going to tell you and be very honest with you here. It took me a couple of years to actually do this effectively. And you would think that, you know, you would learn the first time, but it did take a couple of years.

And even my own husband, who is not business minded after the second year, sort of pointed out, um, babe, what are you doing? Because it comes to this time every year. For the past two years, and you're in the same situation, you're stressing out because you've got these big bills to pay, you know, annual bills always seem to be at about that same time of year when I wasn't getting any regular revenue stream and coming into the business.

So I've been there before I've made this mistake. And that's why I want to help you to get sort of ahead of it and plan and just be smarter, right? So if you have budgeted for this time, that's fantastic. And I mean, by all means, listen along because you might pick up some other things, but if you haven't, then this episode is really for you to help you create other ways to make money during this time, because let's face it, we still have the bills to pay.

So if you're renting a space, you still have to pay the electricity, the outgoings, the actual rent on your space, but even if you're not. And if you're working mobile and family's homes, or if you're working out of your own home, you've still got your own personal bills to pay. You still need to be paying yourself your wage.

You still probably need to pay insurances, internet, phone, all of those other things that a business needs. So let's start thinking about some of the ways that you can create extra revenue during this big block of holiday period. The first one, and probably most obvious are just running holiday programs.

Now. I encourage people to think outside of the box here. So if you do tutoring day to day, maybe it's just one to one sessions or small group sessions, see what else there is that you want to offer. Like have fun with this. This could be something completely out of left field that you don't normally offer.

Or you might decide to provide something that aligns with what you already do and sort of complements that. You won't know how successful it is until you actually give it a try. So I encourage you to test the waters and don't hold back. So, for example, one of my clients has a business where she does one on one intervention literacy tutoring.

With students and over the holidays, she ran a Lego program. Now Lego has got nothing to do with one on one tutoring. It's got nothing to do with reading and writing and spelling really. And this program absolutely took off. It came down to she was in a perfect location. She marketed it effectively. She had great messaging behind it.

And she had fun with it. This is an opportunity to really be creative and step out of that zone and out of your comfort zone even, but out of that zone that you are normally in and providing the services that you normally provide and offer something completely different. So some examples, like I said, you've got your Lego program.

We ran some cooking and craft. Well, I think actually we ran Christmas cooking and craft, I guess, holiday activities or programs. And we would always run that in the week leading up to Christmas. And that was lots of fun because I see this now as a parent, sometimes when it's coming up to Christmas, you freak out and you're like, I just need a couple of hours to do the Christmas shopping because certain people are always with me and I need to buy them Christmas presents.

And it's very difficult to get that done and got jobs do and, you know, food to buy and whatever. So I would love to drop my kids somewhere for a couple of hours and have them do something that they enjoy, that they're going to take up that time so that I've got time for myself. So that's what parents are often looking for in that time leading up to Christmas.

So if you're able to provide something that's fairly cost effective, because if you think about it, we are in the lead up to Christmas, so parents already spending money everywhere else. And that meets that sort of minimum. To our time slot. So parents have got time to go away and do something and it's fun and it's engaging and it's hands on.

Then you're taking a lot of the boxes for the kids and the parents. So that's what I would suggest doing some brainstorming around. So for those. Pre Christmas holiday classes, you could do music, you could do drama, you could do all sorts of things in that time and really have the focus of fun and giving parents some time to do whatever they need.

The other successful program that we ran that now a lot of my clients are doing is January Intensives. So this is particularly for those people who Run school readiness programs. Obviously, you've worked with your students throughout the year throughout the terms prior, and they're about to start the school year.

So let's think 2024 you've worked with these kids, either part of or all of 2023. You don't need to. Completely say goodbye to them at the end of 2023. Instead, what you do is you enroll them for your January intensives. That's that one last opportunity for you to work with those students in that small, intimate, but maybe a little bit more intense environment.

Again, no rules. You get to set this up how you like, but we ran it in a way that children needed to come a minimum of three times during the week. And it was for a longer period of time so that they were getting more used to longer days, but not complete. like they were going to be doing at school. So it's that final stepping stone and we did call it our stepping stone program to transition them into that first year of school.

We used to do a lot of things that they would be doing at school. So sitting down and pretending to do a role, making sure that they knew how to sit with their hands in the laps without touching other kids and all of those things that. Teachers in that first year of school spend a lot of time trying to get on top of.

You're going to give those children that exposure and that small dose, so that when they get to school, they're already confident. They feel like they've been there before and they're quicker to pick things up. And instead of focusing on things like that, they can focus on making friends and feeling more comfortable in their environment.

We also ran back on track school programs in that same time period. So there's a couple of weeks before school starts back, getting students that we had been working with the year before that, booking them in for like, okay, let's get our brains back on track because I don't know about you. If I stop using my brain for six weeks, I know that as a teacher over that time, by the end of six weeks, I was like, how do I.

spell that again. So that happens to our kids brains too, right? It's about providing something in that January time period where you can be getting their brains back in the swing of things. You're helping those students again to hit the ground running once school starts. And providing parents with something to send their kids to, to keep them entertained.

Because also when we get to the end of the holidays, we're, you know, starting to drive our parents crazy. And mums and dads are looking for something else to do. So it could be something like that where it's educational. Or again, it could be something completely different. That it's fun and maybe it's a half day or a longer block.

of time that they're with you and it's super creative and it's, you know, something that they wouldn't normally do at school, something that they might not even do at home with their parents. The other thing that you can do during this time is sublease your space. Now, obviously, if you're working from home, this might not work for you.

But if you've got a space that you're not using during this time, it might be worth looking into seeing if there are any other professionals that align with what you do who could use this space during this time. So we had an OT come in who was overflowing from where she was and wanted to just do a bulk of assessments for a week and it worked out perfectly.

So it's just making people aware that you've got that space. If there's that right fit, taking advantage of that. Some things to consider. If you are looking at running holiday programs or classes, firstly, it doesn't have to be you who runs them. Okay, we can let go of the reins here, let go of some of that control and actually either bring on staff to do that or allow our staff to do that and by giving them ownership of the program as well.

It's empowering them and it's encouraging them to put even more passion and effort into what they're delivering and creating a program that they're really excited to do and unpack with the kids. So, what I would say is, if you have staff or if you have the ability to bring on a staff member, consider that because you still need a break.

We aren't saying, well I'm definitely not saying that you need to be working all through the holidays. What I'm saying is, We want to make sure that if we need, if our business financials need, we want to be continuing to make revenue through this time that doesn't need to look like you working all of that time.

It doesn't even need to look like you working at all. If you can get your numbers, right? So consider bringing somebody in to run those sessions so that you can have that time off and to do this. What I would encourage you to do is sit down and consider. Make sure you are considering the costs. So any sort of expenses.

So if you're doing, for example, Lego building or whatever, and maybe you've got some Lego at home, but you need a couple of extra packs to add in, or maybe every child is going to get their own pack. That's a cost that has to be included and that has to be covered. You don't want to be out of pocket for those expenses.

If you're doing craft. Map out what you are going to need and consider those costs, then also consider the wages that you are going to need to pay out, then ensure the minimum number of students you need for each session to make it viable. Now, I also want you to keep in mind that for the first time that you run something, you might not be making a massive profit, and sometimes you might not be making much of a profit at all.

To maybe running at a small loss now, as long as you're being smart about this and keeping an eye on how things are going, you first couple of programs or sessions that you're running might run at a small loss, and that's okay, because you're starting to build exposure and awareness you're collecting content for.

Videos and testimonials and photos that you can then be putting on your website and your social media and sharing out to other parents, you're building awareness. You're kind of going back to that stage. If you market really well, and you already have an engaged audience, then you should be able to sort of hit the ground running and make profit, but if you're still in that newest stage of your business.

Then you might find it a little bit of a slower start and that's okay. As long as you're going back and reviewing your financials, your numbers to make sure that it is growing every single time you do it and it's improving and you're not going backwards. So just keep that in mind. The other thing to consider is if you are in New South Wales, You can get, or you can apply for the creative kids voucher.

So if you're in one of the other States, you probably don't know what I'm talking about, but in new South Wales, families have got, I think it's 50 now. I think it might be two 50 creative kids vouchers that they get every year. And those children can use those at approved providers. So You are providing your service and these vouchers are paying for it.

So the parents aren't out of pocket that 50 and you are being paid for that. So I've got a client who's actually done extremely well over holiday programs, just doing that. So if you are in new South Wales, definitely something that I would be looking into. The next thing that I want to talk about is if you are considering this, you need to start planning for this.

Now, so we're in October, do not wait until the middle of November or the middle of December to start planning for this. Start mapping out your offer. So, who is this for? What is it that you're going to be actually running? What things will you need to purchase or use to make these lessons or sessions actually happen?

What are you going to charge for the sessions? What are you going to pay your staff if you've got staff? What will the child or the participants get out of the sessions? What is the timing and they're going to go for 2 hours or how long will these sessions go for? What dates are you looking to run? All of that.

You need to map that out first. Then I encourage you to speak to your staff. If you're thinking of bringing some stuff on to take that to find out who's available, who can take it if they're interested and. Coming up with some sort of plan of maybe how you're going to pay them if you want them to take over.

So this was something that I did eventually and it was amazing. I just got one of my staff members to run the whole Christmas holiday program. So she decided what activities she wanted to do, what days she wanted to run it. She created these amazing little flyers. I got them printed up for her. And so I paid her for that time to do that for the planning and for that.

Marketing work and then obviously to deliver those craft holiday sessions to the families as well. So you might want to run it like that, or you might want to design it all and then just get your staff to come in and take it. So that's something to consider as well. But you need to speak to your staff to lock in the dates that.

They're available so that you can ensure that you are advertising. The last thing you want is to be promoting these amazing holiday classes and people booking in on Monday, Tuesday, Wednesday, and your staff say, Oh, I'm actually going away. I'm not here on a Monday, Tuesday, Wednesday. So. Make sure you have done that too and then start speaking to people about it.

Firstly, speak to your own clients. The people that you have coming into you already, those families already know, like and trust you. There is a high possibility that they will want to do whatever it is that you are offering. So speak to them first. I would speak to them face to face. I would probably have a little flyer to give out to them.

I would be emailing them. And I would be emailing them more than just once. Okay. One email out to families and then saying to me, Oh, Kirstie, I sent an email and I've done a Facebook post and just, nobody's interested in, I just don't know what to do. That's not enough. Okay. Start now and continue to tell people about what you're doing because.

I know from a busy mum's perspective myself, I forget stuff. So things come across my desk or I get emails or a mum friend might send me this fantastic holiday activity program and I think that's so good and I'll tap on it and I'll open the website and it will sit there for weeks because I forget about it because it's not the number one thing on my mind.

It's not my priority. So you need to put yourself at the top, at the front of people's minds. So. Don't just send one email and forget about it, send a few handfuls. And if you're working with me, that's something that I sort of can talk you through and guide you on what sort of things to put in your emails, how to word them appropriately and when to send those sorts of things, but get enough out there to your list, your families, so that there's no possible way they can miss out.

Because that's what happens to me. I have this link open on my phone, that I intend to book my child into, and then come holidays, It's the week after and I think, Ah, I really wanted to book my girls into that, you know, painting class. Damn, I completely forgot about that. You don't want that to happen to you, okay?

You want to be reminding parents like myself. This is coming up. We've only got so many spots left. Blah, blah, blah. Book your spot here. Book your spot here. Make it easy for families like me. Well, parents like me. The other thing that you want to be doing is, or that I would suggest you do, is create some flyers.

Now, you don't have to go all out. These can just be simply paper flyers that you create on your own printer that you're handing out to your families that you're currently working with. And then you've gone and you've handed out to other people. So it might be doing collaborations with other local businesses in your area.

Ideally, they would have the same audience as you, or you could go to that next level and actually get a printer to print out some nice, glossy, double sided flyers that you can use. to sort of send to a variety of different locations, including the local businesses with similar audiences. Make sure your flyers do not have too much wording on there.

Okay. We want your flyers to be professional. You want them to give the details, but you don't want people's eyes to think, Oh my gosh, this is just too much. I can't even look at this. Social media. This is one that for some people, they get all of their business from social media for other people. They're not getting much at all.

So, you know, your business, you know, where you need to put your time and effort, but I would be encouraging you to post and share about this every week until it happens on your social media, because like I mentioned before. We're busy. We're mums. You know what it's like. There are a thousand things going through your brain at any one time, and there are a thousand things on your to do list at any one time.

If that's not in my face at the right time, there's a good chance I'll forget about it. And the other thing with social media, as you're probably aware, just because you post something doesn't mean that everybody who's following you sees it. So you need to be continually sharing what's coming up for you.

I would have something on your website. So if you've got a website that's got all of your tutoring services and your about page and all of those things, I will be temporarily putting something on your homepage that really stands out like something extra above the fold promoting. These services that you are offering over the holidays, and I would even if you've got a services page, make sure you've got in there that you offer holiday programs so that if somebody comes along, you know, at a different time, they can click through that to find out more information.

Previous clients. Guys, this is something that so many people forget about. We think that when a family has left us, that we can't ever talk to them again. One of the biggest mistakes that people make in their businesses, those people might have left purely because the day clashed with soccer practice that's just started, or because they went on holiday and they were going to come back and rebook, but they didn't have time to rebook.

Just because they're your old or ex clients. Families does not mean that you shouldn't contact them and share these sorts of things with them. So I would be doing that. And I would also, if you have a whole list and if you work with me, you will be working on building your list. I will be making sure that you email your list again on more than one occasion with a proper campaign email sequence.

Promoting. It doesn't have to be bombarding. You can do it very skillfully without the spammy stuff, but promoting these new services that you have coming up. Something else to consider. Lots to consider here, guys. You might want to offer an early bird discount. So if this is the first time you're doing anything like this and you really just want to make sure you've got at least For kids booked into a program or something like that, you might have an early bird discount for anyone who books by the 30th of November, just making dates up because you really want to get that base number of students in.

And obviously that is bringing in that urgency for parents to actually act. It's giving them a reason. So like myself sitting there with that tab open and thinking, yeah, I really need to book this. If it said, 20 percent off book before Friday, I would literally book it then and there. It's giving me a reason.

It's not sleazy or anything like that. It's giving me a reason to take action now. And that's what you need to do. Parents are busy. We've got so many things going on, especially that time of the year. Give me a reason to act on your promotion right now. You could also offer something like a bring a friend.

So that helps to build that exposure and that awareness and spread your services amongst other families. You might also want to set up a checkout on your website so that families can come along and pay without having to email you or call you or get in touch. So obviously. A lot of us, when we have, uh, with our tutoring services, we like to assess the students or screen the students to figure out which groups to put them in and are they a good fit and those sorts of things.

This is a whole different service. We don't need to speak to the parents first. We don't need to do a big onboarding call with a parent to find out where they're at, what their concerns are, what the school has said. That doesn't need to happen. This can be a much shorter and simpler Onboarding system to literally just get parents to sign up and pay.

So if you can, and it's a fairly simple thing to do, if you can get a plug into your website or check out onto a website, parents can do that without you needing to do much at all, once you've set it all up, don't forget though, if you're doing that to have your terms and conditions. And your cancellation policy on there that they need to tick because you don't want people booking and then turning around and saying, Oh, actually we've decided we're going to go away camping and we won't be here that day.

Or, Oh, they're having a sleepover and there's just a bit too tired. And so I don't think we're going to come. No. They've booked in, they've secured that spot, they've taken that spot. Make sure you have your no refunds policy on there for them to check, as in tick check. And like I said before, this is the main thing.

So from now on, so like I said, we're in October, this should be the main thing that you are promoting from now on. New enrollments aren't coming in generally as much. At this time of year, you already have your regular income. You already know what's happening until the end of the term. Now you need to be focusing on new ways to generate revenue over that Christmas break where you are going to see a massive decrease in your normal So hopefully that's given you something to think about.

I love holiday programs. I think they can be extremely effective. And like I said, I've got a lot of clients who are doing something completely different to what they do on a day to day basis. So have fun with it. Just because you do something once and it doesn't get a huge uptake, doesn't mean it's not a good idea.

Please remember that. And let me know. If you are going to run a holiday program and it's a brand new one, send me a message. I would absolutely love to hear the different sorts of holiday sessions that people are going to run and then let me know how it goes. So next year, once it's done and dusted, make sure you are reviewing it yourself and then send me an email, send me a DM and let me know.

How your holiday sessions went and if you need to up the ante for your marketing next time, or if you're going to repeat it or tweak it or change it, let me know how it all goes. If you enjoyed this episode today, I would absolutely love for you to leave a review. It only takes a minute. And if you haven't yet subscribed, make sure you do to ensure that you never miss an episode.

Finally, if you want to know more about what we do, head over to the website, Kirstie Gibbs dot com, or check out the link in the show notes below. Thanks for listening. It's so great to have you here.