Private Music Studio

1
Private Music Studio
2
The Policy Sheet

• 1. Interview a prospective student
• 2. Have a written policy, including these topics

3
The Policy Sheet (contd)

• Should include these topics
• Fees and payment procedures for lessons
• Yearly calendar, including group lessons if
  appropriate

4
The Policy Sheet (contd)

• Should also include
• Missed lesson policy
• Expectations for performances
• Policy on summer lessons/payments

5
The Policy Sheet (contd)

• Should also include
• Miscellaneous items such as
• How to take care of your instrument
• Appropriate time of day for phone calls
• Short fingernails or other physical requirements
• Parental attendance at lessons

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The Interview

• The time to make your business policies clear
• Students and parents who agree to start lessons
  are obligated to follow them.
• Make sure they leave with a written copy of your
  policies
• Maintain a professional manner so they know that
  this is your business.

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Example of a Policy Sheet

• Mrs. Kathleen Jones . 24 Main Street . Hometown,
  VA 12345 . 555-2222
• Policy Sheet for 2005
• Please save this sheet for reference!

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CALENDAR

• Lessons will begin on September 4, 2005.
• No lessons will be taught on the following
• days
• October 13 Columbus Day
• November 21-23 Thanksgiving Holiday
• December 24-January 2 Winter
  Holiday
• One week in Spring (TBA) Spring
  Holiday
• One week in Summer (TBA) Summer Holiday
• Regular lessons will be taught on all other
  school
• holidays.

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CALENDAR

• The year will be divided into three semesters.
• Tuition is due the first lesson of each semester
• Encompasses recitals, workshops, theory classes,
  and lessons.
• Sept. 4-Jan. 11 _______ 45-minute lessons
• _______ 60-minute lessons
• Jan. 14-May 31 _______ 45-minute lessons
• _______ 60-minute lessons
• June 3-August 3 _______ 45-minute lessons
• _______ 60-minute lessons

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TUITION (contd)

• Payment for tuition may also be made in monthly
  installments, which are due in advance on the
  first lesson of every month.
• Monthly installments remain the same, regardless
  of the amount of lessons received that month.
• 45-minute lessons _____ monthly
  installments
• 60-minute lessons _____ monthly installments

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OVERDUE TUITION FEE

• If a monthly installment is not received by the
  15th of the month, a 5.00 overdue fee will be
  added.

12
MISSED LESSONS

• Make up lessons will only be given
• when 24-hour notice is given for sickness
• If sudden extreme weather conditions occur
• Lesson swap list students publish their names
  and contact info on a list available to other
  students.
• Lesson times will be available so that students
  can switch in the case of important and
  unavoidable conflict.
• I must be notified of changed lesson times.

13
BOOK DEPOSIT

• Students are required to make a 30.00 book
  deposit at the beginning of the September
  semester.
• When the deposit has depleted, a copy of the
  expense record will be provided and another
  30.00 will be deposited.
• If the student should terminate lessons, an
  unused deposit will be refunded.

14
GROUP ACTIVITIES

• A yearly calendar will be given to each student
  with the dates of all group functions.
• Students are expected to attend all group
  functions. They are included in tuition.
• Group theory classes will be held on Saturdays.
  Students should check their calendars for dates.
• Approximately two theory classes/month.
• Group performance workshops one Saturday a month.
  Check calendar for dates.

15
PERFORMANCES

• There will be two recitals one in December and
  one in May
• Both recitals will have rehearsals held in
  advance
• Students should take advantage of all performing
  opportunities for which they are prepared.

16
SUMMER SEMESTER

• Students are expected to continue lessons through
  the summer.
• Summer tuition may be prorated only when the
  student is on vacation out of town.
• If a student is in town and chooses not to take
  lessons during the summer, fall lessons will not
  be guaranteed.

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MISCELLANEOUS

• Students are required to have
• A well maintained instrument, metronome, music
  dictionary
• Short fingernails flush with the end of the
  finger
• Students who arrive to the lesson with long
  fingernails will either use lesson time to cut
  them or be sent home.

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MISCELLANEOUS (contd)

• Please park on the road adjacent to my house. The
  road in front of the other houses should not be
  used for parking.
• Please be sure your child is inside my house
  before driving away!
• Parents are not invited in the studio during
  lessons.
• If you have questions or concerns, please call
  between 930 a.m. and 1030 p.m.
• Lets look forward to an exciting year of
  learning! ?

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ITEMS FOR STUDIO OWNER BUDGET

• A list of items to keep in mind when forming a
  budget for a home studio.
• NOT a comprehensive list a good starting point
• Quarterly or yearly expenses

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HOME

• Rent or mortgage
• Food/household goods
• Telephone
• Electricity
• Gas
• Water
• Repairs
• Insurance

21
MEDICAL/HEALTH

• Prescriptions
• Health Insurance
• Medical Costs after insurance
• Dental

22
CAR TRANSPORTATION

• Gas/oil
• Maintenance
• Insurance
• Car registration fee
• Personal property tax
• Car loan
• Bus/subway/taxi
• Parking

23
TAXES

• Federal
• State
• Property
• Tax Preparation

24
MISCELLANEOUS

• Life Insurance
• Entertainment
• Savings
• Credit Cards
• Other_________

25
BUSINESS/MUSIC

• Dues/publications
• Music
• Concert tickets
• Instrument maintenance
• Instrument repairs and tuning
• Machine repairs (stereos, computers)

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BUSINESS/MUSIC (contd)

• Music lessons
• Conventions, workshops
• Studio rental
• Business License
• Office supplies/postage
• Secretarial fees

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BUSINESS/MUSIC (contd)

• Copying/printing
• Studio maintenance
• Instrument rental
• Insurance for Studio, Instruments,
• Computers, studio furnishings

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BUSINESS/MUSIC (contd)

• Entertainment
• student party
• lunch meeting with colleagues
• public relations
• Other___________

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MONTHLY EXPENSES CHART
Sept Oct
Nov Dec Jan Feb Mar Apr May June July
AugMortgage/rent

ElectricityGas
heatWaterPhoneOffice supplies/postageCopying/p
rintingBusiness dues/ publicationsMusic
booksInstrument maintenanceConvention/workshop
feesConcert ticketsCar paymentsCar
maintenanceGasoline/oilCar insuranceHealth
insurancePrescriptionsDentalBusiness
LicenseIRS quarterly paymentsState Tax
quarterlyPersonal property Tax Tax Preparation

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INCOME TAX DEDUCTIONS

• Tax Laws change from year to year and differ from
  state to state.
• Check with a tax consultant
• Keep accurate records the burden of proof is
  on you

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DEDUCTIONS (contd)

• Keep receipts for ALL music functions attended
  (concert ticket stubs, charge receipts, etc.)
• Keep a mileage log for all business related
  mileage (to concerts, to buy music, to
  conventions, recitals, etc.)
• Keep receipts for all studio related expenses
  (furniture, insurance, music instruments and
  maintenance, etc.)

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DEDUCTIONS (contd)

• Obtain a copy of the tax form used for self
  employed individuals
• Keep your receipts organized in one of the
  following ways
• A Notebook
• An expanding file
• Separate folders in a filing cabinet

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DEDUCTIONS (contd)

• Your studio is deductible as a home office if
  that room, or a portion of a room is used solely
  for your business.
• If your studio takes up 20 of livable space in
  your home then 20 of your household insurance,
  utility bills, etc. may be used as a deduction

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DEDUCTIONS (contd)

• Tax laws can be very confusing
• Accountants may be quite expensive, but its well
  worth it in the end

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Gross Income

• Includes amounts from lessons, recitals,
  lectures, etc.

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LIST of DEDUCTIONS

• The following is a list of possible tax
• deductions for the independent music
• teacher. Check with the IRS or an
• accountant to obtain a list of what is
• deductible in your specific case.

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Possible Deductions -1

• 1. Music Records, tapes, etc. includes
• music purchased for studio
• 2. Advertising
• 3. Bank service charges
• 4. Office Supplies statements, envelopes,
• adding machine tape, pencils, pens,
• erasers, paper clips, etc

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Possible Deductions - 2

• 5. Postage for statements, Christmas Cards for
  music students and for music associates, various
  cards and notices mailed to students, etc.
• 6. Dues and subscriptions magazines,
  organization/professional dues and assessments,
  etc.
• 7. Insurance pro-rate, part of residence for
  studio, instruments, instruments, and studio
  furnishings

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Possible Deductions - 3

• 8. Utilities pro-rate part of residential
  charges for studio
• 9. Telephone include business long distance
  calls
• 10. Piano and organ tuning
• 11. Repairs to equipments, furniture, air
  conditioner, heating, plumbing, etc.

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Possible Deductions - 4

• 12. Teaching supplies teaching aids, chalk,
  erasers, blackboard, pencils and pens, tissues,
  toilet tissue if studio is in residence
• 13. Studio rental if any instrument rental
• 14. Taxes pro-rate part of residence for studio,
  also state sales tax on equipment

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Possible Deductions - 5

• 15. Auto expense mileage to attend meetings,
  purchase music, attend seminars, rehearsals,
  rehearsals, visit pupils, etc.
• 16. Parking expenses