Paul's greatest strength was an affinity for business research. He studied the practices of other music schools, and other businesses in general, both successful and unsuccessful. He adopted the practices that made the most sense, and combined them with his own proven teaching style. His business model has produced a successful school/studio.
Two factors he observed that most often distinguished the successful businesses were commission, and how much a student could learn from an instructor.
The solution to the first was simple: commission does not exist at Smith Music. This eliminates instructor competition, and provides a friendlier, more relaxed atmosphere for all his students.
The second issue was far more complex. An instructor's job is based on having skills or information that students will seek. Once the instructor has taught everything they can, they face both the certainty of losing a student and the possibility of gaining a competitor in an already difficult business.
Paul made the commitment to teach everything his students want to learn. That was the only option he would consider. By this point, though, he knew far more than just how to play: he had knowledge of songwriting, music theory, music instruction, and business management. He withholds none of it from a willing student. On the contrary: if a student becomes good enough to become his competitor, only then does he consider himself a successful teacher.
And he can offer them a job.