← Pilates Business Podcast
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Have you ever looked at a fully booked schedule for the week ahead and thought, yes, we've finally made it. Only to then perhaps check your numbers at the end of the month and realize that there's barely anything left over for you. Well, you are not alone. And in today's episode, I'm diving into what I like to call the revenue illusion. That sneaky idea that busy equals profitable. Because the truth is that packed classes can still be money losers. Massive discounts and promotions that bring in tons of new clients can actually be quietly draining your margins. So if your studio feels full but your bank account doesn't, this episode is going to shift the way that you think about growth. Well, hi there, I'm Sarah Glanfield. I'm a business and marketing strategist just for boutique fitness studio owners like you. If you're ready to be inspired and make a bigger impact, you're in the right place. All you need are a few key strategies, the right mindset, and some support along the way. Join me as I share the real life insights that will help you grow a sustainable and profitable studio. This is the Pilates Business podcast. Well, hey there and welcome back to the Pilates Business this podcast. I'm Sarah Glanfield and this is where we talk about building a profitable and fulfilling sustainable studio business. A studio that's not just busy, but that is actually thriving in every way that you want it to. And I've been helping boutique fitness studio owners to grow profitable and sustainable businesses for over a decade without burning out. So when I say I feel like I've seen it all, I've had these conversations before, I really, really do feel like I have. And I think today's topic really hits a nerve for so many studio owners. And that is what I like to call the revenue illusion. You know what I'm talking about. It's that rush. Perhaps on a Sunday night, you look at the schedule ahead and you see some classes that are full, perhaps even wait listed, or you see your, your sessions booked for the week ahead and you've got a nice full schedule and you think, yes, it's going to be a great week. This is fantastic. And then you work through that week, yet at the end of the week, maybe the following week as well, the end of the month hits and so does payroll and rent and merchant fees and taxes and towel laundry and insurance. And suddenly that busy month doesn't actually look so great anymore. And it can be very deflating because you're working hard and you have so much hope and you have so much invested from a financial perspective and an energy perspective. Right. And you're showing up for your clients and you're teaching at your best, you're managing your best, you're marketing at your best, you're doing it all. And somehow those financial results don't reflect the effort. It's frustrating. And I think that sometimes we have this one thing that might be, I think, one of the biggest traps that we can fall into as an entrepreneur. And that is a trap that I think we all have to kind of get our heads around at some point. And maybe you're in that place right now. And that is where we often equate busyness to profit. So the busier you are, the more successful you are, the busier you are, the more profitable your business is. In fact, we often look at other studios that seem busy and we just naturally assume that they must be doing very, very well behind the scenes. It's not often the case, by the way. So this idea, this busy equals successful mindset, I think is one of the biggest traps in our industry. And I think that when we look at what most studio owners experience, you know, you're in a position where you really want to grow. So you push for more, you push for more classes, you push for more clients, for more sessions, and you fill every slot that you can. And at first it truly feels amazing, right? And you're excited because there's momentum and this is all great. It really, really, really is. But we also have to keep our eye on a few other things as well. Because the problem is that not all growth is profitable growth. Okay. Because as you're adding more into your business, more classes, you're, you are also often increasing your costs. And if you're doing that without also adding revenue and that your margins are not really established and set, then things might start to look a little bit shaky. So maybe that best selling intro offer might bring in some fantastic new faces. But once you have kind of followed that down the track and you see that perhaps it's not actually converting people in, it might actually be a money loser for your business. And so it's really, really important that we are aware of what our cost is and what is, what is generating revenue in our business. And I think that this is one of those business traps. So we just assume that as soon as we're busy, we're going to be profitable, or as soon as we're busy, we're going to be making progress, we're going to be growing, and it's kind of Dangerous because if you find yourself thinking that way, what happens is it can actually mask the real issues that might be happening beneath the surface. So you get so caught up with keeping things full that you actually stop measuring what actually matters. And so often what I of what I see in when I speak to studio owners who are falling into this trap and we kind of quickly catch them, is that we have a lot of classes to the schedule, we're adding more classes, schedule at a rate that is outpacing the revenue those classes are generating, or we're increasing our cost base by buying more things for the studio, expanding our footprint, perhaps adding more equipment, or perhaps increasing the salary and compensation for our teachers and our other additional team members that often exist in the studio as well, such as marketing managers, social media folks and other people who are supporting the business. And what happens is as you start to increase your costs and you're not keeping an eye on your profit margins without connecting the two, and you're excited because there's a lot of things that are happening, there's a lot of busyness in the studio, there's a lot of energy in the studio. From that perspective, we often don't see what might be happening underneath the surface. And the impact of this is that you're busy with all the things, but you're ending up perhaps exhausted, spinning in circles, doing more, but perhaps earning the same or often less. And so yes, while we typically associate more clients with a growing business. Absolutely. We also want to be very, very aware of how profitable our business is. And so instead of focusing purely on, let's just get busier, think about how you can shift towards thinking about what's profitable in my business, what's most profitable and how can I do more of that. And I think that there's a lot of times where I see that, you know, it's not about effort. Honestly, most studio owners who find themselves in this situation are losing money without realizing it. And you know, when we, when we do run the numbers and we run those projections and I do a deep dive into those key numbers that aren't just a revenue top line numbers, but that look underneath the hood of the business, as it were, we often find that, that the, the pricing model doesn't support the cost base of the business. Right. And that we often find that many classes might actually be costing you money. And there's a lot of different reasons for this. It might be the way that your pricing model is structured, it might that there is a promotion or a discount that has been offered a long time ago that is still impacting your profit margins today. There's a lot of different reasons why this can be the case. And when we start to dive into the data, which is always the key to all of this, we find that, gosh, it can be, it is often either a very easy and quick fix or it's a painful and brutal fix. And so what I always encourage you to do, always, always, always is to make sure that you are aware of how your numbers are impacting your profit margins. So how your cost base looks relative to your revenue growth and, and that you, you're aware of all the different variables that drive that profit margin. Right? And so we often look at perhaps say that that promotion, right, that, that maybe it's Black Friday, maybe it's a New Year promotion, maybe it's a promotion for any seasonal seasons that we have, the many seasons seasons that we have. Or maybe it's just simply your introductory offer. If we discount that extremely heavily without a strong conversion plan where perhaps you're having a discount that is so, so, so appealing that you're getting a lot of people in the door, but you don't have a plan to move them into a package or a long term membership and so many people then don't return, you might find that you ultimately are spending money to fill those classes because the, those new folks who come aren't actually generating long term value for your business. Now that's not to say that you shouldn't have an introductory offer at all. Don't, please don't misunderstand me. But we do want to make sure that we're being very mindful about how we are covering that cost that we of having that introductory offer. And so sometimes we structure that intro offer in that way on purpose and sometimes we are a little bit more careful with that price point. Right? And then we want to look at that time slot efficiency. Maybe the 6am and the 6pm classes are super popular and super profitable, but Maybe there's a 2pm class or a 3pm class that you're running just to add a class to the schedule that perhaps might not be supporting your business at all. And so busy doesn't mean efficient. Right? Profit actually comes from being very intentional, very strategic and understanding where your, your studio actually produces returns. And once you start looking at your business through a more, more of a profit focused lens, not just an attendance focused lens, you'll see perhaps where there might be opportunities for more profit in your business, which is always very exciting. And I'm always Encouraging you to look for those opportunities. They are there, they do exist. But it might be fine. Might be a bit of a challenge to find them, for sure. So it's not about just being busy, all right? It's about. And busyness doesn't bring more profit necessarily. And busyness doesn't necessarily bring more efficiency either. So the more intentional you can be about understanding the levers you can pull in your business, the different parts of your business that are efficient, that are profitable, the better your business will be. So let's say you're in a spot right now where you feel a bit like you're in this place of being busy. And that's absolutely fine. Business is not a bad thing. It's how can we take that busyness step out of that busyness cycle? And then thinking about how you can shift that into being perhaps more profit focused. Okay. And I think that a lot of it often comes down to, yes, we look at the numbers. But the other part of that that I think is often completely ignored is the way that we think about success and what we see success as for ourselves in our business. And oftentimes we are subconsciously defining success by being busy. And I've had the conversations with studio owners many, many, many times, and I share it with you in case this sort of rings true for you too. I've had the conversations where I've said, okay, well, what does your business look like if you were to be to grow from here, maybe double the size of a business? What would that look like for you? Or how would you feel about that? And sometimes the response is not what I would expect. Sometimes the response is like, oof, I don't know about that. Oh, that sounds like it would be very stressful. Oh, that sounds like I wouldn't have time to be with my family or I'm not sure I can do that. I'm already stretched right now. And there is often this idea that growth and success comes with busyness, exhaustion, and overwhelm. And I want to show you right now, I want to share with you that it is not the case. It does not have to be the case. Yes, it can be that way if you design it to be that way, where perhaps you are the one who is doing all the things. But it's very possible to build a very strong, profitable, sustainable studio business where you are extremely successful and where it is not exhausting, tiring, overwhelming, chaotic, and means that you are always, always, always, always busy. Right? And so often it comes down to redefining what success looks like for you. And so instead of saying, okay, well, I want to grow my revenue by X, you might say, I want to have five high value clients that are filled with the positive energy and who are love coming to classes and have great vibes when they walk in and they are kind of, they become sort of the, that community in my studio. Okay, and maybe that's what will feel really good for you when it comes to what success looks like for you. Or maybe you want to say, I want to grow my Evan, my revenue and I want to have this person who is on my team to help me with that, that person on my team to help me with that. And I want to be able to take two weeks off to spend with my family. Right? And so when you start to really get clear about what success looks like for you and you remove that attachment it may have, or association it might have to busyness, you might find that you come up with a lot of different solutions to perhaps how you can find yourself moving towards that vision and that version of success that is yours. And I am the first person to say that everyone has a different version of success. And far too often, I think the other trap that we often fall into is we end up going after someone else's version of success. So, oh, I have to open a second location because that's what success is, that's what success looks like. I have to open five locations because that's what successful studios do. The reality is that, no, you get to decide what success looks like and what success looks like for you. And that's exactly the way that you should build your business. So instead of saying, I want my schedule full, perhaps I want every class to be profitable, I want every class to run or every session to go in a way that I would love it to go and in a way that is aligned with our brand and our goals. Right? And so when we stop chasing this, perhaps this volume and busyness as perhaps the, the indicator for success and start perhaps optimizing for that type of business that is fulfilling for you, that is valuable for you, you'll find your business becomes lighter as well, becomes perhaps easier for you to operate, but also it will always be far more sustainable to you as well, right? And when you are able to build a business that is profitable, that is easy to run and that is sustainable to you, my goodness, to me, I think that is perfectly successful for everybody. Right? So you don't need to necessarily be adding, adding, adding more and doing, doing, doing more to earn more. But we do need to focus on the things that really matter and what actually moves the needle. You know, for years we've been conditioned, I think, to equate busyness with worth. Right? Full classes, like I said, packed schedules. It often feels like proof that we're succeeding. But I think that real leaders, especially in this industry where we have a tremendous amount of opportunity to step into our own light. If you're willing to look under the hood, if you're willing to look at the numbers, and if you're willing to make choices that are strategic and that are aligned with what you want, then this is where you start to step out of that sort of technician, copycat mode and into a real role of CEO and leadership. So you stop measuring success by how much you're doing and start measuring it by how well this amazing business that you've built to run in a way that is sustainable and strong and profitable, how well it performs. And that is incredible. So recap for you guys. Being busy is not the same as being profitable. In fact, I think that busyness often hides a lot of inefficiencies. Unprofitable classes, unsustainable pricing, poor conversion rates. And when you shift your focus from just filling the schedule at any cost to actually optimizing profitability, you will build a business that works for you, not against you. And the best part is, it's not necessarily about playing small or cutting back. It's about creating a business that is strategic and aligned with the income and the lifestyle that you truly want. So if today's episode really hit home for you and you want to go a little bit deeper, you want to build a studio that's not just full, but is financially thriving, I would love to to help you do that. Inside of Thrive, my business coaching program for boutique fitness studio owners. Inside, we work together to help you uncover exactly where your studio might be leaking profit, help to simplify those systems and create a growth plan that lets you earn more, perhaps even while working a little bit less. So you can learn more at spring3.com forward/thrive. The link is in the show notes because remember, you guys, the goal isn't just to be the busiest studio in town. It's also to be the most profitable and sustainable one. So I hope you enjoy this episode where we touch on everything from revenue to profit to mindset. It's what I love to talk about most because so many of these elements are intertwined, right? And I hope you enjoyed this. If you did, please, please go to wherever you're listening to this and rate and read this podcast. It would mean so much to me and help to get this out there into our fabulous community of studio owners just like you. All right, have a great rest of your week, you guys. I'll speak to you soon. Did you love this episode and want more? Head to spring3.com and check out my free resources that will help you run a profitable and fulfilling studio business. And before you go, one last reminder. There is no one way to do what you do, only your way. So whatever it is that you want to do, create or offer, you've got this. Thanks again for joining me today and have a wonderful rest of your day.