BeautyLink - Volume 9 Issue 2 - outsert7
Compliance & Distractions
The Hidden Cost of Compliance
How to Cover the Cost of Compliance-Related Expenses...Without Going to Jail
By Stephen Epstein
The cost of running a school and maintaining
Title IV Funding have only increased with
every passing year.
#3 - Cost per Enrollment - You must know how
much it actually costs, in terms of marketing
dollars and time, to enroll each new student
into your school. The scalable acquisition of
new students is the key to profitable growth.
And, while these costs eventually should
come down, any changes will take time,
regardless of what "roll-backs" are pursued
by the Trump Administration.
If the cost of a running your school is 30%
higher today than it was 7 years ago, your
school can only survive and remain profitable
by increasing enrollments.
Schools that do not have enough students
or revenues to pay for the mounting costs
of compliance face several choices:
1. Reduce Salaries & Profits
2. Permamently Close Their Doors
3. Stop Offering Title IV Funding
I know it's terribly hard running a school. I know
it's not fun. I know compliance sucks-up most
of your time, money and energy and leaves
you with no money left-over for marketing and
promotion, not to mention owner distributions...
That's why you need to make sure that you
aren't wasting your marketing dollars and that
every lead is properly cared for by your team.
4. Increase Enrollments and Revenues
There are schools who are expanding and
growing despite the massive challenges posed
by the current operating environment.
Of the 4 choices above, only
Increasing Enrollments is a good option.
But not only can your school survive, you must.
Not only can your school expand, but you must.
It all starts with running tightly controlled and
inspected marketing and admissions teams.
Most school owners are simply too busy
dealing with COMPLIANCE related issues
to focus enough attention and energy on
marketing and admissions.
Regency Beauty Institute cited, as their main
reason for closing all 79 locations,
"the organization does not have the cash to
continue to run the business".
The government did NOT shut down their
school. Nope, they ran out of money.
Regency specifically said;
"This is not another case of a school being
forced to shut down because of wrongdoing.
We held ourselves to high educational and
This is what happens when you take your
eyes off admissions and enrolling enough
students to maintain financial solvency.
So, the best thing you can do to survive
and actually thrive in the current operating
climate is to keep one eye on admissions,
while keeping the other eye on compliance.
Here are the 5 statistics that you must track
very closely, if you want to ensure that you're
enrolling as many quality students as possible:
Show Rates on Tours
Number of Tours that Enroll and Start
Let's walk through each of these 5 statistics
and look at where things break down and
admissions teams drop-the-ball.
#1 - Cost per Lead - Many schools calculate
this number incorrectly. They don't take into
account the students that enroll from nonpaid sources, such as walk-ins and referrals.
This means marketing dollars aren't allocated
profitably or efficiently.
#2 - Cost per Tour - It's really improtant to
know how much it costs your school to get a
student arrived for a tour. Correctly tracking
and examining this number can cause an
#4 - Show Rates on Tours - This statistic is
often incorrectly caluclated by admissions
teams. It's usually reported as being a lot
better than it actually is. Exposing mistakes
in the handling of this statistic can lead to
enormous increases in tours / enrollments.
#5 - Tours that Enroll and START - Knowing
which leads from which sources actually end
up enrolling and starting is critical. Some lead
sources are much more profitable than others.
Knowledge is power.
We can show you what areas to focus on and
which mistakes to fix. In our consultation we
provide tips for how to stop wasting time,
money and energy and how to get more
enrollments from the money you're already
spending on marketing and advertising.
So, if you'd like help evaluating your marketing
and admissions efforts, take advantage of our
complimentary 25-min evaluation.
We can show your admissions team how to;
Be authentic, effective, and engaging
Reach more prospective students
Waste less time chasing low-quality leads
Book tours the RIGHT WAY
Dramatically reduce NO SHOWS
Increase Enrollments and Revenue
Schedule your Free Consultation by texting
(415) 535-7921 or sending an email request to