Year End Benchmarks. How Well Did Your Studio Perform?

The end of the year provides you with a unique opportunity in your business. You have the complete picture, which means you have all the data that you need to set achievable goals for the new year.

This is the perfect time to measure KPIs (Key Performance Indicators) and decide which will be most beneficial for you to continue tracking.

Here are several KPIs that are great, year-end benchmarks to provide you with accurate data on how your business performed over the course of the year:

• Total Revenue: Compare this year's total Revenue with previous years. Did you grow or are you in a decline?

• Net Profit Margin: Calculate the percentage of revenue remaining after all expenses. This measures profitability and operational efficiency. This number will uncover whether your expenses are too high, pricing is too low, you need to acquire more students, or you're positioned for continued growth.

• Churn Rate and Retention Rate: How many students have you lost and how many have stayed with you? Measuring both allows you to develop an average that you can work from so you know what to expect and how to make improvements.

• Inventory Turn Over Rate: It's not only wise to segment certain KPIs such as Total Revenue and Net Profit Margin to measure merchandise sales/profit, but you'll also want to analyze your turn over rate. If you have merchandise on-hand that is not selling quickly, it's money that you've spent and haven't seen a return on. How much merchandise is too much? How long is too long for it to sit on the rack?

For details on KPIs, including formulas and application, download our free KPI guide.

Are you a member of Studio Owner Solutions, our online subscription site? We've got a full library of KPI courses specifically for dance studios. Clients, don't forget to reach out to your bookkeeper for your 50% off discount code.