Donna Genie explains how to forecast whether you can afford a studio location or hire a manager. Guessing doesn't work. You need accurate current financials and clear inputs: how much revenue covers your loan payment, whether the business can actually pay a manager's salary.
I often hear studio owners express the wish of buying their own location or adding in a new manager to alleviate some of the pressures and stresses on the owner of the studio. These things can happen and really have a solid outcome if you know what you're planning for. The Crystal Ball method is not always the greatest when it comes to making big financial decisions like this. But we come into this picture to help you. So in order to make a good decision, you'll need two things. You need to know the accurate financial picture of what's going on prior to that decision, what's happening in your business up to right now. And those numbers have to be solid or planning from those numbers will not be solid either. We need good inputs to get good outputs. We specialize in helping our owners forecast out what will happen. So if you're looking at a new location, how much will I need to make in sales to be able to cover the loan payment? Is that going to be a realistic expectation? What if I want to hire that manager? Have I reached that point? How do I know when I reach that point?
