(No, you didn’t read that wrong. Yes, this does have to do with running a tutoring center.)
When I first met my would-be husband, I loved to shop. I could spend hours in a store trying on clothes, buying what I wanted, and dressing in the most fashionable clothes possible. And then I met Todd. As we would enter a store, he would quickly steer me towards the back. Yep, you guessed it. The sales racks. And if there was a clearance rack (you know, cheaper than the sales prices), then that was a bonus.
Before I knew it, long gone was shopping at the front of the store. In Todd’s eyes, if it wasn’t a deal, then it wasn’t worth buying. Besides, wait a few weeks and that same $50 blouse would be on sale for $20. And of course, he was always right. Argh.
My husband took the fun out of shopping.
Fast forward to today. We’ve been married for almost 11 years and together for 16. Now when I go shopping, I pick something up, feel the quality, check the cut and style of the garment, and then look at the price tag. (Okay, truth be told…I usually look at the price tag first.) Most things go right back on the rack. Ahhh, long are the days when I could just pick something up, try it on, and then buy it. Now, it has to pass a litmus test. Will I wear it? Do I already have pants and shoes to match? Is it worth the price? Can I get it cheaper in a week or two?
Shopping just isn’t as much fun anymore. I’m too consumed with getting a good deal to actually enjoy the shopping process.
So, how does this relate to running a tutoring center?
My husband taught me a valuable lesson. Even though I make a lot more money today than I did when we first started dating (come on, I was in college), I actually spend less money today on clothes than I did back then. Why? Because I realize the value of my money. I know how hard I work to earn it. I know how quickly it disappears.
I run my tutoring center the same way. No frills and no frivolous purchases. The whole goal is to keep my overhead as low as possible while offering the highest quality services. We don’t have a big fancy building. We don’t have state of the art technology. We don’t spend gobs of money on advertising. We don’t have every gadget ever created for tutoring.
Instead, we utilize everything we have and only purchase things we actually need. We use coupons and discount codes as much as possible. We collect points on Amazon and cash them in when we need to buy resources and supplies. We pay annual rates on subscriptions versus month-to-month rates. We analyze each expense and determine if it is a necessity.
Why is this so important?
There are two main goals for your tutoring center:
- To provide a high-quality education for the students that you serve.
- To make a profit.
The first one is obvious. We know that we want to provide high-quality services. This is a no-brainer. That’s why we do what we do. It’s all about our kids.
The second one should be a no-brainer, too. But people tend to forget that the goal is to make money. It is a business, right? If you aren’t making money, then you aren’t running a viable business. At that point, it’s not a business, it’s just a hobby. Let’s face it. You have to put food on your table. Also, your hard work, dedication, and time are worth something. Pay yourself!
So, how do you do this? It’s simple. Keep your expenses low. Stay away from the glitz and glamour at the front of the store. Instead, head to the back and find those deals.
What are some ways that you cut expenses in your tutoring business? Comment below or share in our free FB group. Maybe you have an idea that none of us have considered. Let’s learn from each other!