1. Control Expenses, Part I

   Profitability doesn’t just come from increasing income; it comes from having a keen eye on your expenses. One of the most productive things you can do to increase your profit margin is to get as lean as possible with your expenses. Trim anywhere possible. Go line by line through your accounting software and be prepared to make some phone calls to negotiate your bills. And of course, if you don’t already have a budget, create one … and stick to it!

2. Control Expenses, Part II

   If you are paying down any debts, prioritize those payments and increase their frequency if you can. Eliminating debt as quickly as possible will free you up from paying interest of course (an expense no one wants!) and will also free you up emotionally. The more progress you make on paying down debt, the more in control you will be when it comes to your profitability.

3. “What Gets Measured Gets Managed”

   This famous quote by Peter Drucker can influence your profitability in a big way. Take the recital for example: If you track and measure every expense and compare it to the income, what is the profit? Whether it’s large or small, this number will show you where to put your time and energy to improve that margin. It works the same for any class, program, or event. Measure your expenses and your pricing to manage financial success.

4. Analyze the Products You Sell

   From dancewear and shoes to costumes and t-shirts, evaluate the wholesale cost and retail price to determine if you can make changes to increase profitability. You may need to spend less or charge more, or you may need to consider reducing or increasing the number of items you sell. Don’t just keep the status quo because it’s easy; do the work because it’s worth it!

5. Use the Compound Effect

   Remember that profitability is likely to happen as the result of many small actions, taken one at a time. Stay encouraged that every step you take to control spending and increase revenue will lead you down the road of increasing profits. Keep taking those steps even when it seems like it’s not enough…the compound effect requires patience for a payoff.

Keep in mind that profitability has to do with many factors, which means there are many ways to improve it! Dig into your finances, understand what you can control, find creative solutions, and most importantly, keep doing the work it takes to know your numbers.