We are rebuilding and will continue..
Unfortunately, there have been some conversations around regarding the operation of the Academy that makes for great gossip.
Covid, like many creative businesses, impacted greatly. Since the lockdowns, we have small ups and suffered massive downs. Costs have increased since the lockdowns and I have personally funded many shortfalls to support keeping teachers teaching and students attending through free programs and other initiatives. Last year I exhausted all my savings and relied on growth to return the viability of the Academy. It was so important to keep the business moving and ‘hoped’ that the landscape improved. Term 1 2024 saw that improvement and things were looking up.
The 2nd and 3rd terms have been the opposite, and I want to be transparent and clarify the situation that transpired. The Academy is a small business and has always relied on private fees to keep operating. Since the lockdowns from Covid, it has been a struggle to manage and keep afloat, however, we kept moving forward.
Unfortunately, this year we have experienced a 70+% increase in operation costs and unfortunately led me to ‘put the brakes on’ through many reasons from issues mostly out of our control. Sicknesses and the increased costs devoured the business and was getting out of control. Effectively, I was funding every lesson as the costs were more than revenue from the lessons. I always supported teachers with higher rates whilst keeping lessons affordable for students. Unfortunately, this is not sustainable in the current environment. Changes needed to be made!
The Academy has been around for 20 years and will continue to provide high quality Performing Arts education pathways once we regain the momentum. We want to reassure you that all refunds and credits will be made and we are committed to regain trust in being the ‘go to’ performing arts school for the area and beyond. This may take a little time and I ask of your enduring patience.
Drama classes were external and therefore weren’t effected by any closure.
Recently, I have restructured the business to be more agile with less overheads to be more sustainable and be innovative with improved lessons and pathways. I apologise for the lack of communication as I have also returned to full time teaching and very time poor to fast track anything. I have moved the lessons to external venues and will be focusing on hybrid lessons that also includes an AI reporting for students to have recorded their lessons with written summaries. The Academy will be focusing on workshops, group lessons and band programs.
Studio Rent
In January this year, there was to be a new lease that also included an increase in rent. Initially this was manageable however, the property manager added extra fees and outgoings that ended up an increase of 66% in rent to our operation. In addition to the increased costs in insurance, utilities, admin and sundries.
I did not receive the formal lease until May and I was told that it was going to be the standard lease that I have had for 6 years before. This was not the case, and it became obvious that we could not sustain the operation in that studio ongoing.
Negotiations failed towards the beginning of term 2 and property manager lock us out for 7 weeks and only allowed us 3 days to finally get our equipment removed on the last 3 days of the term. The 7 weeks effectively crushed our music lesson operation where if we had access, we could have had very minimal disruption to lessons.
Sicknesses
In the last 2 years, on average, cancellations and/or credits averaged a $6000-$7000 loss each term. Term 1 and 2, 2024 saw an average of up to 4 teachers ill per week. Term 2 also had an average of 20+ students calling in sick per week and was escalating. There was also a prediction that the flu season would be devastating and having to go through 2 lockdowns, we couldn’t sustain another interruption to operate.
There were also safety concerns regarding ventilation in the studio and we were considering moving many of our lessons externally in new venues. This we are doing now.
Cost of Living
Term 2 2024 also saw a massive 40% drop in enrolments citing costs as the main reason and need to reduce the kids’ activities. The business works on a business model of scale to keep sustainable.
There had been a escalating level of families not being able to pay and have left without settling their balance.
Costs of lessons
Whilst group and partner lessons are ok, one on one lessons have been financially unsustainable. We are an advocate to pay higher rates for teachers however, margins have decreased and eventually, due to the escalation of costs, the profitability was in the red and costing the business. The business cannot compete with home-based teachers that don’t have the same accountabilities as a business like the Academy.
My Personal Situation
Many know that I have had physical and mental health issues in the last 2 years and was hospitalised late in 2023. This is an ongoing issue and can be challenging to my ability to be functional. I have kept mostly quiet about my mental health as well. Since covid, my wellbeing had declined and has impacted in my ability to function at the most productive level. In recent times, this has also included a marriage separation. This is something I have been working to regain positive and healthy routines and habits. Work in progress but I am much better now having a diagnosis being more manageable.
Where to now
I have had to start the business from scratch! Some teachers have remained, and new teachers will be coming online as time moves on.
The Academy will be honouring existing individual lessons and will only allow a limited number of these lessons moving forward. Our focus is in group and partner lessons and the introduction of School Of Rock and comedy classes for students.
Refunds will come through as we ramp up the business. I am so sorry that this may take some time. Having 7 weeks of no revenue in term 2 and very limited funds in term 3, with the expenses made it very difficult. I apologise for the delay.
Moving on, the Academy needed to change its focus to be sustainable. Many music schools have had to close due to the costs related to delivering music lessons.
I personally and sincerely apologise for any distress and pain this has caused. I have never wanted to walk away from this and will work tirelessly to repair the trust back to the community.