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Printed in Singapore
Design by Sheila Selden Design
Tuttle Publishing® is a registered trademark of Tuttle Publishing, a division of Periplus Editions (HK) Ltd.
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ssss1 ssss1 1 ssss1 ssss1 2 Focus on Your Image 2 Your School’s Image 2 Your Own Personal Image 5 The Image You Project 5 Examine Your Features—What Do You Have? 7 Determine Your Benefits—What’s in It for Them? 7 Develop Your Marketing Identity 9 Choose a Name That Reflects Your Image 10 CHAPTER TWO: FINANCE YOUR NEW SCHOOL 13 Start with Estimates 13 Start-Up Capital 14 Break-Even Point 15 Your First Two Years 18 Discover Sources of Money Available to You 19 Commercial Loans 20 Government Loans 20 Private Family Loans 22 Apply for a Loan 22 ssss1 ssss1 26 Assemble Your Team of Advisors 26 Accountant 27 Attorney 28 Banker 28 Other Consultants 29 Set Up the Legal Form of Your Business 31 Put Together a Professional Business Plan 33 Why Put Together a Business Plan? 33 The Layer Approach 34 Anatomy of a Business Plan 36 Double-Check Your Plan 36 ssss1 ssss1 38 Find a Space That Will Work for You 38 Choose a Good Location 38 Find a Real Estate Agent 41 Choose the Best Space 41 Figure Out How Much It Will Cost You 43 Negotiate a Lease You Can Live With 45 Basic Negotiation Principles 46 Plateau-Level Bargaining 49 What Is a “Fair” Contract? 49 Hazards to Avoid in the Contract 50 Lay Out Your School 51 Plan Your Space 51 Comply with the ADA 54 Comply with Your Lease 54 Convey Your Image 55 ssss1 ssss1 56 Investigate Government Requirements 56 City and County Requirements 57 State Requirements 57 Federal Requirements 57 Ferret Out Information 58 Register Your School’s Name 59 Place Your Order with the Printer 59 Select Insurance 59 Property Insurance 60 Personal Property Insurance 60 Business Interruption Insurance 60 Medical Liability Insurance 61 General Liability Insurance 61 Other Insurance 61 Unemployment Insurance 62 Workers’ Compensation Insurance 63 ssss1 ssss1 64 Set Up a Fee Schedule 64 Set Up a Contract That Protects Your Interests 68 Contract Contents 68 Release Statements 69 Photo Release Statements 71 Make It Legal 71 Take Credit Cards 71 Select Training Equipment 73 Hire Employees 73 Wages and Taxes 73 Who Do You Hire? 74 General Guidelines 74 Prepare for Emergencies 75 ssss1 ssss1 78 Marketing Identity 79 Your Slogan 79 Your Logo 80 Your Sign 81 Business Cards 82 Brochures 82 Flyers 84 Event Flyers 84 Feature Flyers 87 Flyer Layout 87 ssss1 ssss1 90 Mass Marketing 101 90 The Pros and Cons 91 The Key to Mass Marketing Success 91 Mass Marketing Options 92 Yellow Pages Listing 92 Newspaper Advertisements 94 Press Releases 96 Coupon Packages 97 Direct Mail 98 A Web Page 99 TV or Not TV? 101 ssss1 ssss1 103 Marketing to Your Neighbors 103 Service and Leads Clubs 105 Student Referrals 106 Marketing on the Premises 108 P.O.P. Materials 108 Walk-Away Packet 110 Your Annual Advertising Plan 110 The Choices 110 The Timing 111 When Is Advertising Worth It? 112 ssss1 ssss1 115 ssss1 ssss1 116 Build Your Business One Person at a Time 116 Make Personal Contact over the Phone 117 Prepare to Handle a Call 117 Avoid Call Enders 118 Listen Actively 120 Build Curiosity through Benefits 121 Get Follow-Up Information 123 Win Over Your Walk-In Customers 126 Create a Strong First Impression 126 Welcome the Person 128 Show the Person Around 130 Match Needs to Benefits 131 Master the Art of Closing 132 Closing #1: Straightforward 133 Closing #2: Checklist 133 Closing #3: Assumptive 133 Closing #4: Answering Objections 133 Closing #5: The Special Offer 134 Get down to the Nitty Gritty 135 Follow Up, Follow Up, Follow Up 138 Work with Your Employee 139 ssss1 ssss1 142 Set Up Student Files 142 Track Student Attendance 143 A Manual Tracking System 144 A Computerized Tracking System 144 Take In Student Payments 147 Set Up Payment Policies 147 Collect Payments Efficiently 148 Track Student Payments 150 ssss1 ssss1 155 Balance Your Daily Receipts 156 Petty Cash 156 Daily Balance Sheet 157 Collect Your Debts 158 Track Accounts Payable 158 Receipts Files 159 Checking Account Register 160 Manage Your Finances 161 Financial Journal 161 Profit and Loss Statement 165 Balance Sheet 167 Learn to Keep Your Own Books 169 ssss1 ssss1 171 Keep Your Regular Students 171 Keep Them Interested 173 Motivation 173 Children 174 Parents 175 Innovation 175 Consistency 176 Keep Them Playing 177 Keep Them Working 177 Keep Them Loyal 178 Listen Well 178 Praise Well 179 Correct Well 179 Communicate Well 181 Keep Them Successful 183 Build Self-Esteem 183 Transcend Failure 184 Set Goals 184 Motivational Awards and Programs 185 Keep Them a Part of the Group 187 Nip Discipline Problems in the Bud 187 Stay above Student Society 189 Make Contact 189 Make the Tough Choices 190 Build Community 190 Keep Them Safe 194 Keep Them Charged Up 195 Keep Yourself Charged Up 197 Keep Them Paying 197 Keep Your New Students 199 Win Them Back 201 Welcome Them Back 202 ssss1 ssss1 203 Do You Want to Have a Retail Area? 203 The Challenges 204 The Opportunities 205 Organize Your Shop as a Profit Center 206 Who Are Your Customers? 207 Take Care of the Red Tape 209 How Much Working Capital Do You Need for Inventory? 211 Planning and Record Keeping 214 Getting the Right Products from the Right Place 214 The Basics of Pricing, Costs, and Profits 217 Tracking Inventory 226 Creating an Effective Display 232 Getting Fixtures 233 Laying Out a Shop 234 Day-to-Day Management 234 Ordering 235 Receiving 235 Advertising 235 Sales and Customer Service 238 Markdowns 241 Reordering 241 Starting Small and Building 242 ssss1 ssss1 244 Step One: Check Your Goals 244 Step Two: Compile and Review Relevant Statistics 245 What Growth Rate Do You Need? 245 Calculate Your Enrollment Goal 246 Minimum Required Statistics 246 Step Three: Pinpoint and Solve Problems 247 Drop-Out and Attendance Problems 248 Drop-In Problems 253 Closing Problems 254 Payment Problems 255 Per-Student Income Problems 257 ssss1 263 ssss1 285ACKNOWLEDGMENTS