Short video transcript (Lauren Bateman) comparing brick-and-mortar and online business models for service industries. Bateman describes much lower profit margins for in-person service businesses (about 10–15% at her music school) versus online businesses (potentially 50–60%), and emphasizes adding an online component to reduce overhead and increase profitability. She also mentions rent/overhead examples and home-office tax opportunities.
Chapters
When you're talking about the difference between brick and mortar versus online, understand that if you're in a service industry.
So at my music.
School, our profit margins are maybe like 10%, 10, 15%. In a service industry, you're not going to make tons of money versus the.
Online business.
Where the profit margins could.
Be as much as 50.
Or 60%, depending on how big your team is, how many employees you have.
And that's why it's.
Important to get.
Online, because you can run.
Something a lot more profitably.
You don't have.
The overhead of a brick and mortar space. One of my locations, it's like five.
Grand a month.
Just to have the space. And then you got the heat and everything on top of that. Now, if you're someone who can do this out of your home, I have an office space.
On my house that I rent out to my business.
So there's different tax opportunities that you can talk to your accountant for having a dedicated business space in your house, if that's possible. So I highly recommend, even if you are in a brick and mortar right.
