The Role of Numbers in Running a Successful Dance Studio

Understanding the Importance of Numbers

As a studio owner, it's important to become comfortable with numbers in running a studio. While creative aspects are the lifeblood of dance studios, understanding the financial side is crucial for long-term success.

It's time to shift your mindset from “I’m not a math person” to embracing numbers as an essential part of their business toolkit.

Bridging the Knowledge Gap

Our guest in our previous episode, Ethan Rucioch from Rooshock Accounting answers all these questions and more about making sure we are looking after the numbers in our Studios.

Ethan Rucioch explains that his passion lies in helping creative industry businesses understand their numbers better. He highlights that many business owners neglect the financial side, often leading to problems that could have been avoided with a basic understanding of their finances. Ethan’s role is to demystify numbers, ensuring that business owners can use them to grow and make informed decisions.

Sole Trader vs. Company Structure

A common question dance studio owners face is whether to operate as a sole trader or to transition to a company structure.

Ethan discusses the factors influencing this decision, such as income levels, legal protections, and the complexity of managing company accounts. He stresses the importance of reviewing this decision annually as profits and business circumstances change.

The Role of Bookkeepers and Accountants

Ethan categorizes business owners into three types based on their approach to bookkeeping:

• DIY Approach: Owners who handle all bookkeeping themselves.
• Partial Outsourcing: Owners who hire bookkeepers for daily tasks and accountants for end-of-year taxes.
• Full Outsourcing: Owners who outsource both bookkeeping and accounting.

He highlights the importance of self-awareness in choosing the right approach, ensuring that owners do not spend excessive time on tasks that could be efficiently outsourced, thereby allowing them to focus on growing their business.

Maintaining Accountability

Both Nathan and Ethan stress the importance of holding bookkeepers and accountants accountable. Nathan shares a story of a client who realized that the bookkeeping services she was paying for were not up to standard.

This underscores the need for owners to understand what they are paying for and to ensure that the services meet their expectations.

Conclusion

Understanding numbers and accounting is not just about compliance; it’s about empowerment. By getting comfortable with the financial side of their business, dance studio owners can make better decisions, optimize their operations, and ultimately achieve the success they aspire to.

For those interested in delving deeper into topics like sole trader versus company structure, Ethan’s YouTube channel provides accessible insights into these complex subjects.

Call to Action

If you're a dance studio owner looking to improve your financial literacy, take the first step by reviewing your bookkeeping and accounting practices. Ensure you’re getting value for your money and that your financial systems are helping, not hindering, your business growth.