Running a language school is not only about a passion for teaching, but above all, it’s a real business. And in any business – especially in unstable times – keeping an eye on costs is crucial. What can you do to maintain profitability and grow despite rising expenses? Here are concrete ways to reduce costs in a language school that won’t negatively impact the quality of teaching.
What will you find in this article?
- How to reduce costs in a language school?
- Facility
- Outsourcing
- Leasing
- Utilities
- Administrative costs
- Advertising
- Type of business activity
- Summary – how to reduce costs in a language school?
How to reduce costs in a language school?
Many savings in a language school can be achieved through small changes that at first glance may seem insignificant. Monitoring electricity usage, choosing cheaper and more durable office supplies, using recycled paper, better management of the class schedule, and reducing waste.
Such actions, although seemingly minor, can add up to several hundred dollars monthly. Annually, this amounts to several thousand dollars, which you can allocate to development, better equipment, or advertising campaigns.
If you want to reduce costs even further and sustainably increase the profitability of your school, focus primarily on key areas. Below you will find 7 proven methods that will help you rationally reduce the costs of running a language school.
1. Facility
The facility is one of the largest expenses in any language school. If you are just starting, consider renting rooms by the hour—for example, in public schools or cultural centers. This is much cheaper than a full-time lease.
If you already have a location, check to see if rental prices in your area have dropped and renegotiate your lease. Also, ensure that your lease agreement allows for subleasing—rooms that are unused in the evenings or on weekends can be rented out to others (e.g., for training sessions, tutoring, yoga).
Another solution is to downsize your facility and move some classes online. This is a saving and at the same time an opportunity to reach new students outside of the school’s location.
2. Outsourcing
Don’t hire full-time specialists you don’t need every day. Accounting, IT, cleaning, graphic design, and even marketing can be outsourced to external companies or freelancers. This way, you avoid the fixed costs associated with full-time positions, while still having access to qualified specialists and a wide range of services. Outsourcing is particularly cost-effective for small-scale operations.
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3. Leasing
School equipment—such as projectors, computers, boards, or printers—instead of buying with cash, you can lease.
Leasing is a good solution: you don’t tie up cash, you spread the costs over time, you can include the installments as business expenses and deduct VAT. It’s convenient both financially and tax-wise, especially at the start of a business.
4. Utilities
Savings on utilities can be significant. Replace light bulbs with energy-efficient LEDs, turn off equipment after classes instead of leaving them on standby, control heating (especially off-season), and install an aerator on the faucet – the cost is a few dollars, and water consumption can be reduced by up to half.
Avoid unnecessary printing. Use PDF materials, multimedia presentations, or online boards. If you must print, choose equipment with affordable ink or lease office devices.
This is important, especially today, when utility prices are significantly higher and pose a substantial burden on the entire budget.
5. Administrative costs
Secretariat in a language school is an extremely important place for the efficient functioning of the entire facility. Instructors need good working conditions, and clients need to feel well-served. Therefore, it’s wise to approach cutting administrative expenses with caution.
However, instead of hiring additional staff for simple and repetitive tasks, invest in a school management system, such as LangLion. Such systems allow for the automation of enrollments, payments, communication with students, class schedules, and contracts. This means less manual work, less chaos, and more time for activities that truly grow the school.
6. Advertising
You don’t have to spend thousands on advertising campaigns to attract new students.
Focus on actions that are inexpensive, measurable, and effective:
- maintain active profiles on Facebook and Instagram,
- be present in local community groups,
- publish valuable language tips on a blog,
- gather reviews and recommendations from satisfied students,
- ask new clients how they heard about you.
And most importantly – measure the results. If something isn’t working, it’s not worth investing more money into it.
7. Type of business activity
Most language school owners, when starting their business, do not consider operating as a limited liability company. However, in many cases, this can be much more beneficial than running a sole proprietorship.
It is true that establishment of a limited liability company is quite complex, time-consuming and costly. In a longer time perspective, though, it can be profitable, among others owing to better opportunities for fiscal optimisation, plus savings on social insurance contributions.
Summary – how to reduce costs in a language school?
Effectively reducing costs in a language school doesn’t have to mean a drop in quality. Key savings can be achieved through smart decisions such as:
- optimizing expenses on premises,
- outsourcing services,
- leasing equipment,
- efficient management of media and administration,
- thoughtful advertising
- and considering a change in the legal form of the business.
However, it’s also important to remember to take care of the small things – these are the ones that, when added up month after month, can bring significant savings over the course of a year.
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