Music teaching business

[nimdy]

My other half runs a music teaching business from home (studio building in the garden). This primarily runs after school as we have child care commitments (she cares for the kids during the day while I work and vice versa). Her hours are reaching capacity now (17:30 to 21:30 each night, mixture of children and adult students) and she has had potential students inquire about after school times (15:30 to 17:30) which she cannot do at the moment. She wants to employ a second teacher to teach these hours, but we need help with calculating what she could pay the second teacher whilst still making money.

Internet research hasn't helped as many online calculators work on a salary or set weekly wage, which is not applicable here as:

1. The teacher would be doing at most 2 hours per day, Mon-Fri
2. Teaching only happens in term time (around 40 weeks of the year)
3. The hours would be booked up as and when customers come on board, so she cannot offer set hours as part of the contract of employment.

The advise we are looking for is how to calculate all current income and outgoings so she can work out her actual hourly wage, then do the same for the potential second teacher, taking into account NI, holiday, pension, increases in costs due to extra staff (payroll, resources, increase in electricity and heating in the studio etc).

Is there anything out there on the net that could help with this, or sources I can bring together to get the information I/we need?

Thanks

 

[Financial-Modeller]

Why not pay the music teacher an hourly rate for the hours worked on a freelance basis?

 

[The Byre]

I spent three years invested in a music school in a proper building and with proper instruments (concert grand, etc., etc.) and we only closed because the main teacher wanted to do other things and we wanted the space to expand other sides of the business. As you have found, the clients can be lined up at the door.

You definitely should be working on a subscriber model. i.e. not being paid by the lesson but as a contract for six or twelve months. Pitch the price high enough to be making a healthy profit and that it is worthwhile doing. That way, if they miss a lesson, that's their look-out. No refunds! The teacher has to be there and be paid whether they show up or not! No-shows still must be paid for!

The danger we found with teachers is the tendency for some to want to steal clients - "I could do this at your home if you want me to!"

The parents came to us and asked why one teacher was saying that and if it was OK with us. It was not and his little feet didn't touch the ground! Keep a sharp eye open for that.

Part-time music teaching is usually freelance work, so no PAYE, NI, etc. Always talk to an accountant first though, as they will know the specifics of your situation.

TIP - if major capital expenses are to be expected (recording equipment, microphones, grand piano, other expensive instruments such as synths - and in the long run, a proper school building) then it pays to be fully VAT registered and get all the VAT back even if you are not anywhere near the £85k threshold p.a. As a music school, as long as a teacher is owner or part-owner of that school, his or her lessons are VAT free. Again, talk to a proper accountant about setting up the correct structure for that. Junior teachers can also be junior partners in the same way that they would be in some orchestras.

Remember that anyone dealing with children needs that "I am not a Royal Prince!" certificate and it is best to employ qualified teachers, preferably women.

Good instruments to teach - piano (never ever try to teach on an electric piano! Get the real thing!) and all wind and brass instruments, as well as violin and other strings.

Not so good - rock guitar and drums.

 

[nimdy]

Thanks for the replies. The business is primarily piano, guitar and singing lessons and is pretty well established in the town for the last few years. An electric piano has been her main instrument for this time, but an upright is being delivered this week. Good point about the subscriber model, she has learnt this the hard way with no-shows, lates and walk outs. The term/half-term payment system with emailed invoices and automated direct-debits has been in place for the last 9 months and is so far much better for her.

I also thought freelance was the best route, but the concern is there isn't much incentive to keep high standards (turning up late or not at all, poaching students as mentioned above). How have you dealt with this in your business(es)?

Thanks.

 

[The Byre]

As dumb as it sounds, you just have to pay enough!

 

[A.Friend]

The Byre has given the most amazing, indepth advice for you there, before I read that, the only suggestion I was thinking was hire a couple of students to assist...

Like if you have a student that is good enough to teach the newbies, or moderates, you can then concentrate on the moderates to pending prodigies...

And offer the student teacher a few free lessons, or time to play when no bookings, or just pay or be kind of like baby sitting....

Or you might even find a few music students at your local college or university happy to teach & work part time for a few hours.

But your best is what was said above, their advice is very professional.

 

[BustersDogs]

If you want a new teacher filled up quickly, find current clients that are happy to move to the new times with the new teacher, so you can offer something concrete. You should find your own hours refill quickly if you are very much in demand. That would also make it easier to calculate salary costs.

 

[Mark T Jones]

My sister ran an after-school language club under a franchise

In theory it was very successful with an ample supply of students and a reasonable availability of teachers

even getting money wasn’t really a problem

the big problem was with the reliability of teachers who repeatedly let her down at short notice. - there were only so many spaces she could fill personally