How many legs are on your stool? This is a question one of my mentors asked me recently. By "legs", she meant income sources. The "stool" is your business. The more income sources, the better, and the more types of income the better. Types, such as passive income (like a storage unit or rental income, that really doesn't require you to do any work), subscription income (for example, a cell phone plan or dance tuition), or product income (one-off purchases such as retail sales or ticket sales). Other types include investment income (real estate) and affiliate income (commission).
Of course, ideally you would be diverse as far as income sources. Most studios likely have subscription income (tuition) and product (retail, snack bar, costumes, and ticket sales). The more income streams, the better you will be able to manage any ups and downs in your tuition income. So it is a question worthy of some deep thinking. How else could you be generating revenue? I have listed a few ideas below that may work for your business, but get creative. Consider the level of financial or time investment, your market, and your business model and add one or two into the mix.
Renting our space during non-peak hours - Think yoga, pilates, Zumba, karate, music, bible study, personal training, paint parties, scrapbooking workshops, quilting groups. My sister had her wedding reception at a dance studio that had a full kitchen and was a banquet hall on the weekends. It was completely transformed with draped fabric and lighting and tables and actually a very nice location. Check local license requirements for serving liquor and food before doing this, though.
One day events or camps - Consider father/daughter dances, ballerina tea parties, parents night out, Halloween parties, theme camps, workshops and master classes.
Birthday parties - This is a lot of work but you could structure the package however you wanted. For example, Sundays only between 1-4pm, maximum of 15 kids, guest provides all food and drinks.
Creating a membership model - Pay an extra yearly fee for 'membership' and receive extra bonuses, such as a free gift, discounted tuition, early ticket sales or discounted seats, or early registration to events or classes. Maybe you could host a special gala for these members or give them a special performance.
Affiliate yourself with another business (maybe it's a customer) - Strike up a deal. They refer clients to you, and you provide them an agreed upon dollar figure as a commission. Or maybe reverse the arrangement. You refer families to a certain bakery, dentist, or hair stylist, and receive a cut in return. If you are in a shopping plaza, look to the other businesses for potential partnerships.
Buy or build your facility instead of renting - This is a personal long term goal of mine!
Rent out costumes. You could start small and with clearance items, adding a few styles year after year. It would require some space for storage, but you could make up the cost of each costume probably within 1-2 rentals. And it would be more affordable for families than purchasing.
Don't limit yourself to just dance-related income streams! Be creative. What could your studio families and your community use?