Question

Topic: Strategy

Need Help: The Time Of Unoccupancy

Posted by Anonymous on 6/30/2009 at 2:14 PM ET 125 Points
I am currently working on a education tutor service and is working hard on the business. In working on it, there is two major concerns (one is location) and the other one, which is the question I'm asking here is that during the weekdays day time, the place will be empty. Many people have suggested to rent it out for other businesses to use or rent it out as meeting rooms.

Initially, this was the first thing that came into my mind as well, but i dont think that renting it out for those occasions would benefit the business and the chances are minimal.

I have also thought about offering training, sales training or offering paid seminar presentations; during weekday, people will need to work and we will be loosing our brand 'tutor for students'.

I have thought about this in an HR perspective, advertising and marketing perspective but in terms of profit/ breakeven and ROI, the rental for the premises during the day is just an on going cost and i cannot figure out how to go about this. We didn't plan to rent other businesses premises, as we will need the entire floor for the renovations, decorations etc to build up the brand from scratch.

Other business partners have suggested renting it out to third party, i believe wont work effectively for the company and some suggested that the company will know what to do when the time comes. I have been placed in a position of a managing director of the company and i think it is crucial to measure the unexpected and try to cut unnecessary expenses.

I need a strategy to fit what i can do into the same/ similar category (high school tutoring), but needing to cut this on-going expense whist maintain our new brand we are developing on.

Would anyone be able to assist me with this question?
any ideas, suggestion and feedback would be great!
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RESPONSES

  • Posted on 6/30/2009 at 5:33 PM Moderator
    It sounds like you're considering getting into another business -- real estate or meeting facilities. Unless this was an integral part of your original business plan, you will probably be best served focusing your energies on building your basic business, not dabbling in a side business.

    It's always tempting to pick up extra cash when you can, but you might do better baby-sitting or flipping burgers than waiting for someone to come along and rent your space on a shared/part-time basis.
  • Posted by Jay Hamilton-Roth on 7/1/2009 at 9:59 AM Accepted
    You can focus on other businesses that serve the same niche (standardized testing preparation) but you'll find the same problem: students are in school during that time. Alternatively, focus on related niches (college student tutoring, business coaching, etc.).
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