-$772.69
-$592.38
Thanks for all the advice and support on this tuition dilemma. Many of you have talked about credit card boxes, but you still have to have the parents come in and make them use them. Parents who have maxed their cards or don't have the money to pay just will not come in the studio. They avoid me. I don't want to come off as a greedy bi^&%. Also I have checked into services that do your billing and they take about 10%. I am losing money now and work for free at the studio this would put me over the edge. My husband is upset as we have been so in debt to the studio and still have about $20,000 worth of debt not counting the $35,000 I borrowed against the house. He wants that paid off before I close the studio. He also hates the stress it puts me under every month. The anger and the frustration. He said next month at this time you will be hounding and worried about tuition the same as you are now. He is right, I am just dreading it. So this morning I am going to call every one that is late and insist on payment by Friday as next week their are no classes this gives them another week to stall Then I will send out another impassioned letter asking that tuition be paid on time as in December 1st. Hubby said it is time to get personal.
Putting the checking account balances at the top of the blog is the best and worst thing I have ever done to myself.
It is the best in that I know how bad the situation is and I won't let myself write until I have balanced. It just takes a few seconds. I wrote 2 checks in each account yesterday but it sure made the totals go up. Now I know where I stand and I can't pretend that there is money.
It is the worst in that I know how bad the situation is and I don't know how to get out of it. I know I will figure it out. Eventually money will come in but all this future money I had earmarked for debt, just does not exist or it is spent. I have to be realistic and that is harder than I thought.
I will be able to cover everything in the studio account. I know that. It is the personal account that is bleak right now. I have $120.00 in the shop and $180.00 to be picked up which is odd as usually people pick up a lot faster. I do have work that I can get done, but no way am I going to cover that mess and get to my daughters next week. Unless I have a miracle.
I need to go clean up and get to work on studio business and in the shop. I need to stop feeling sorry for myself. I did this. Now I have to figure out a way to undo it!
Have a great and productive day!
Kim
Be tough!!! You can do it!
ReplyDeleteIf you were my client this is what I would tell you...send a note/post a note to your parents that your new policy starting January 1st is that all tuition for January needs to by paid by January 1st. Each month after that, tuition is due before the month starts. No exceptions, no participation if tuition isn't paid. When they pay in December remind them of the same thing. You are a business person and you shouldn't have to beg for what you are due. Some parents may not like it (and they really may not like it when you send their kids home before class after January 1st because they didn't pay) but this will do three things: it will let people know you are serious about your policy, it will get rid of people who aren't paying you, it will make room for new people who start out with this policy so it won't bother them at all. Im sure these parents who arent paying would be really unhappy if their boss decided to pay them two, three or four weeks late. YOU ARE WORTH BEING PAID IN FULL AND ON TIME! Besides that I am praying for you to get a windfall to clear up those negative numbers!
ReplyDeleteDon't be too hard on yourself. You have a whole list of stuff trying to bring you down, and trust me, they don't need you handing them a club to hit you with! Things will sort out. Eventually. It's good that you're looking into how to try and automatize the tuition problem. Seems that right now it is more stress than it is worth.
ReplyDeleteIn your future letter to non-payers, I would use that their unpaid amount will be going into collections and nicely threaten them that you will be using a third-party agency to collect the unpaid tuition.
ReplyDeleteIf the automatizing will take a piece of your already razor thin profits, don't do it. You just need to be a hardass on payments, like Cash only Living said.
ReplyDeleteIf there some way to revisit the landlord and what they charge you for rent at the studio? With the continuing bad economy I'd go take my case to them that what they charge is not commiserate with your profits. Or is there a lack of business spaces in your area so that folks are lined up to pay them what they are charging? Especially if you've been renting this place for many years....times have changed and only for the worse for both individuals and businesses. What the market will bear now may have nothing to do with what the rental market was back then.
And if the dance studio is not profitable why not look into a plan to close it down and concentrate on the sewing. What if you just do sewing......mending, clothing and costumes? There is always a market for people who can alter, if not tailor clothing and the overhead would be less than running a dance studio.
Just throwing out some ideas, not that you've prolly already thunk on this stuff anyway.
As for the studio debt....you need to sit down with your figures from the last however many years and see realistically how long it is going to take you to get rid of that debt. This is something you might want to take to a meeting with a financial planner too, along with everything else in your personal finances.
You need to remember your worth. Don't let the parents use you. The studio means alot to you, and I don't think you really want to close it. But you need to take the personal side out of it, and remember at its core, it is a business. If parents walk because you expect them to pay....then so be it. Respect yourself, and others will respect you.
ReplyDelete((Kim)) You've been given great advice so I'll just keep you in my prayers. :)
ReplyDeleteI agree it's the right time to do something with it. I agree with calling them and reminding about tuition (make some notes for yourself about the day and time when you reached them). Then, send them a more official letter. As anonymous said, you can mention about third party agency but I would leave it as an extreme necessity. And I would send a letter with a new policy to all parents. Maybe you can consider another solution: I remember when my parents paid for different extra classes for me when I was a kid. It is still very popular that you can pay in advance for the whole semester (then you pay regular price or you are given a discount) or classes are prepaid monthly BUT for this solution you pay few extra bucks more as a "risk" if you would resigned. Whatever you'll decide, I wish you good luck! I know you'll go through that! :)
ReplyDelete