Weekly Library Tip: The MF Formula (courtesy of Master Farid Dordar)

Everyone has a different philosophy when it comes to their business.  My attitude has always been not to try to save money, but to try to spend less on what is not as important.

For example, when it comes to saving: Your staff is off-limits! Quality help is priceless so if you value your staff, do not underpay them as a means to make the budget. There are plenty of better places we can look to spend less money on our school without it suffering. 

Here are some general examples of places you can look to cut costs:

Never buy the top of the line computer! Most computers these days are over-equipped for our needs. Unless you plan on becoming a professional video-editor in your spare time the regular run-of-the-mill PC will do fine.

Don't spend a penny on Advertising if you don't have a proper system to follow up on the results.

Never spend money on a new staff member if you are not willing and able to Train, Supervise and Re-train your staff. Otherwise you will simply be paying more people to do less work!

Never hire a new staff member with the purpose of reducing your workload!  Hire people with the intent to change your current position to a new position where your efforts will make a bigger impact.

Don't spend money on billing when you can use ChampionsWay's Free Billing! See info below.

While there are some places we can cut our costs, there are others that remain constant. Here are some rules of thumb for your school's general expenses:

 15% for Rent

 35% for Staff

 10% for Marketing/Advertising

  5% for office expenses and systemization

  5% for other expenses

  5% for Owner’s Salary

  5% for Corporate Profit

  100 Total Gross

Do you already follow a similar model? If you have chosen to take a higher salary, you may want to consider reinvesting that money into your business instead, because as the school's Gross increases so will your share!

Courtesy of Master Farid Dordar