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STEPHEN OLIVER'S EXTRAORDINARY MARKETING
"All the Things I Wish I Knew When I Was 22" Part
When I was young something was planted firmly in my mind - I didn't
even recognize it - are you ready? Bigger equals Richer -
More Sophisticated equals More Substantive - More Students equals
More Profits -More Staff equals More Results - and, More
Revenue equals More Profits.
You know what happened ? I added more and more locations
- more and more staff - focused constantly on Getting the Gross
You know what happened? The bigger I got - the harder
I worked. I started finding out that you can gross $200,000
in a month - and, guess what - still not make any money after all
the staff, landlords, advertisers, and insurance bills are paid. It's
really a bummer to sign that many checks - and, really not have
that much left over.
You know what I've figured out since? If you have a school
running nicely with two full-time people and you add another full
time - with no other changes - everyone just does 1/3 less!. If
you have a high profit operation running in 3,000 square feet - and
you add 3,000 square feet (to keep up with the "big boys") -
with no other changes - you know what happens? That's right -
you just run the same number of students through a LOT MORE EXPENSIVE
facility - and, now this is the kicker - everyone assumes that
you are A LOT less successful - because the school just doesn't
look very busy anymore!. Sure, everything else being the
same - a HIGH gross is way better than a LOW gross - it's just
that revenue doesn't equal profits and, size does NOT equal success.
Anytime you make a decision to increase your square footage, add
a staff member, or upgrade your facilities - make sure you have
all the steps in place to make sure that these changes effect not
only the "top line" - ie. Revenue but also the "bottom-line" - what's
left over. In fact, if you figure that bigger facility, larger
staff, or facilities upgrade will just add enough to your gross
to pay for the extra expenses - DON'T DO IT!. Bigger is almost
by definition - more complicated, risky, and difficult to manage.
Our industry is replete with well intentioned
school owners who - when they had a nice thing going - screwed
it up by:
1. Adding a second location;
2. Turning their nice little school into the "Taj Mahal" of karate schools;
3. Hiring everyone who asked for a job;
4. Taking up golf, tennis, or jujutsu - and, leaving the school in the
hands of the "employees" expecting the results to stay the same.
(c) copyright 2001 Stephen Oliver
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Putting up a Web Site
a Great Advertisement?
the Things I Wish I Knew When I Was 22": Part 2
Everything is Negotiable
the Things I Wish I Knew When I Was 22": Part 3
Wealth vs. Lifestyle
Much Can You Spend to Generate Enrollment?
and other Diversions