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Navigating your finances Advice for teachers and school owners. In the ever-changing landscape of dance, financial planning has become more crucial than ever. Whether you’re a seasoned school owner or an independent dance teacher, having a clear understanding of your finances can help you thrive, even amidst challenges like those brought by the pandemic. Here, we provide practical advice to help you project income, plan expenses, and secure a stable financial future for your dance business. 1. Understand your income streams and associated costs Dance teachers and school owners often rely on multiple income sources, including tuition fees, workshops, merchandise, and performances. Start by categorising your income streams and allocating the costs associated with each. Use this information to identify which streams are the most reliable and profitable. This clarity will help you prioritise efforts and forecast earnings more accurately. 2. Set financial goals Establish short-term and long-term financial objectives. These might include saving for equipment, studio upgrades, launching new programmes, or building an emergency fund. Goals provide direction and help you measure progress. 3. Develop a budget Creating a detailed budget is the cornerstone of financial planning and will help you achieve your financial goals. When preparing your budget, include fixed costs such as rent, hall hire, utilities, insurance charges and staff salaries, as well as variable costs like costumes and marketing. Factor in seasonal fluctuations – for example, lower enrolments during school holidays – to avoid surprises. Track your progress 16 Dance | Issue 504
against the budget to help you better understand your financial performance and to estimate your tax liability. 4. Use technology to simplify financial management Consider software that improves and streamlines your admin (customer database, class scheduling, invoicing). These packages often generate reports on revenue per class, class sizes, number of classes taken by each dancer and more. These reports are key to unlocking opportunities for your business. Where possible look for admin software that integrates with accounting software to manage the end-to-end process and help capture complete and accurate data for your tax return. 5. Prepare for tax obligations Stay informed about tax requirements and updates specific to your region. Keep clear records and evidence of your transactions. Work with an accountant familiar with the dance industry to maximise deductions and avoid penalties.
Diversifying your offerings can help you reach new audiences and stay resilient. 6. Diversify your offerings Consider adding new revenue streams, such as online classes, private lessons, teaching in local schools, teaching adults, community outreach, collaborations with other creative professionals, or hosting taster sessions at local schools and community centres. Diversification can mitigate the impact of economic downturns and help you reach new audiences. Start by assessing market
demand and understanding your audience’s needs. Similarly, offering introductory workshops in schools, evening classes for adults, or partnering with local organisations can establish new revenue opportunities while promoting dance education. Evaluate your existing resources – such as studio space, staff availability, and expertise – to determine what is feasible without overextending your capacity. Experiment on a small scale to test the viability of new offerings before committing significant time or financial investment. For additional ideas and support, log in to your My ISTD account. In the Find Your Dance Space section, you’ll find cheat sheets with top tips for securing dance business in primary and secondary schools, sample letters for contacting local schools, business guides, and many other helpful member-only resources to help grow your dance business. 7. Build a cushion for uncertainty The pandemic highlighted the importance of having an emergency fund. Aim to set aside 3–6 months’ worth of operating expenses to cushion against unexpected disruptions.
