← Pilates Business Podcast
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Let me guess. Your studio is busy, classes are full or almost full across the board, you're teaching a lot and yet you keep hovering around the same number every single month. Maybe it's 15,000, maybe it's 17,000 back down to 14, and maybe every now and again you're heading close to 20,000 on a good month. Not terrible at all. In fact, probably. Probably one of those days. Long time ago you were probably thinking this was the goal, right? But right now you're seeing more opportunity and it's just not enough. You're not enough for the hours that you're working, not enough for the stress that you're carrying, not enough to feel like a real business instead of just perhaps an expensive and heavy workload. If you are feeling stuck right now and you can't quite figure out exactly why more effort and more hard work isn't creating more profit, then this episode is you. Because the problem probably is not to do with your work ethic. There's a little bit more to it than that, and that's exactly what I'm diving into today. 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. Welcome back to the Pilates Business Podcast. I'm so glad you guys are all here listening in today. I've got so much that I want to share with you about what I'm seeing right now. If you're listening and we haven't actually met before, I want to do a quick introduction because I know we're getting a lot new listeners from all over the world. My name is Saran and I am the founder of Spring3 Studio Business Consulting. I've been actually a business coach in the boutique fitness space, working mostly with Pilates studio owners since 2013. So as you can imagine, over the course of that long, I have seen all sorts of different things happen in our industry. I worked alongside studio owners hand in hand with many of them as they've built and grown and often sold their boutique fitness studios. So I know what it's like to be a studio owner, juggling a lot of different things, teaching and managing, and perhaps still trying to stay organized on top of that, and I've been in the trenches alongside studio owners and understand that while we can be so incredibly passionate, as I am with you, about movement and movement practices and the impact that it has on the lives, the people that we get to do this with, that might not be quite enough to build a sustainable business, and especially in the industry as it. It's. As it stands today. And so what I do with you guys here, listening on the podcast and with my members of my Thrive community is I help to turn some of that, perhaps chaos occasionally and some of that ambition into clarity and performance and profit, right? With the most straightforward and the most simple but most effective strategies that I can share with you that actually work in the real world, as you can imagine. You guys, over the last. I don't want to tell you how many years I've been doing this, but it's been many. And there's. The strategies have changed, things have evolved, the world has evolved, the consumers have evolved, the industry's evolved, the tools have evolved. And so this isn't about doing what worked five years ago. It's not even about doing what worked two years ago. I want to give you strategies, or I'm giving you strategies that work today, right? And I'm glad that you're here with me today, because this. Today I want to talk about a common issue that comes up often, and it's often a bit of a sticking point, right, for many studio owners. And I think we see this over the course of. I've seen it at least over the course of the lifecycle of being a business owner, where you hit this sort of revenue ceiling. And maybe that's right now, maybe for you, that's 10,000, maybe it's 15,000, maybe it's 20, maybe it's 30,000amonth, right? And it's in this phase where you are, you know, what you're doing is working, you know how to do it, you know that it is good for people. So you're teaching a lot, right? And you're marketing a little bit, maybe a lot. You're managing a lot, and you're doing all the right things, right? And so this means that, hey, things are actually pretty good. Things are actually maybe doing okay, but maybe you feel like your income is capped. And I think this is just kind of a frustrating place to be as a business owner, because on the outside, things look very successful, right? You've got a lot of clients coming in, you've got a little bit of momentum, but on the inside, for you, as the leader of the business. It often feels quite exact, exhausting. And I think that we often assume that growth is this linear path, that we just keep doing the same thing, then we will grow. But I think there's a little bit more to it than that. And I think that sometimes we assume that, you know, if only I could just get more clients, or if only I could just find that next perfect teacher, or if only I could get my social media down, then that will be the thing that gets me to break through that ceiling. But the reality is that this revenue plateau, this, this maybe 15 or $20,000 a month ceiling is not a marketing problem, it's not a management problem, it's not a motivation problem, Often has more to do with the business as a whole, the business model. And so I want to talk a little bit about what actually keeps studios stuck at this level and some of the shifts that you can make to turn perhaps what is a very busy, busy, busy studio into a very, very profitable studio. Okay, so let's talk a little bit first of all about why we hit that ceiling. And I think that when you're a studio owner and you've grown from, from, you know, just opening the doors, right, and you, you grow and grow and grow, and then you kind of reach this, this sort of limit, right? This, or some might say a, a stall in your growth or a bit of a stagnation or a plateau in your revenue, where we start to see revenue kind of get sticky around a particular number. What, what we see is that revenue at this is coming in. It's coming in from selling, perhaps memberships and packages. Oftentimes we also see at this stage the owner of the studio, the. Or a particular person, to teaching a large percentage of the classes or the sessions. And so what we find is that the studio feels very active. There's a lot of energy in the studio, but it feels a little bit fragile. And what I mean by that is that you probably feel perhaps if it's you that's teaching in a lot of classes, you might be concerned about taking time off. You might realize that a lot of the business and a lot of the income is despite building, a business is actually attached to your input. And in the beginning, this is very often the case. But over time, we want to perhaps move away from that structure, from that model, because when you're close to capacity but you're still not getting paid, or when we see clients head out of town for certain periods of the year during the holidays, for example, or we often see perhaps a Bit of a slowdown in, in, in clients coming in. It feels immediately like there is a, a big problem because it's kind of scary. And, and, and most of all, I see this sort of friction because the growth of the studio is often tied to the input that you're continuing to put in and seeing that need. And I think this is often where we start to sort of feel perhaps like we're not really sure which way to turn or what needs to happen next. Because oftentimes by the time you, you realize some of these things or you're at this place, you're feeling like the business is not going to fall apart. But it only is can continue as long as you keep showing up in full force with all of these hours that you're already giving to it. And the only way to grow is to, for you to do more. And this is already where we start to see a little bit of that burnout begin. And so we want to make sure that we are very conscious of how we're tying all of these things, these pieces together. Because a lot of times more clients into that mix, a busier studio into that mix won't actually help your business to grow, right? Won't actually help you to build the business, I should say, that you actually want. It might just require more hours of your time. Right. And so if the structure of your studio doesn't support profit, doesn't support scale, then volume, more people, more clients, will only create more work for you. And if you're already stretched, you're already teetering on the edge of burnout, then you might find that adding more people in isn't really actually going to help. So in this scenario, in this case, profit isn't going to come from just adding more hours, right. Especially when it's adding more hours to your time. It's perhaps going to come from rethinking how money is made in your studio and where money is made in your studio and how money moves through your business as a whole. So revenue is not the same as profit as well. Right. So we have to also consider this is, I think, where a lot of folks get stuck, that this is not about just adding more revenue to that top line. And I think we have to understand a little bit more about what's happening behind the scenes in terms of your margins and your cost base. Okay. Because what we also see sometimes is that we get a really super focused on that top line revenue number when we actually do a little bit of deep dive into what's happening under the hood. Of the business. What's happening once you've established your, your or you're, you're. You're comfortable and you're looking at your numbers and you're seeing your costs and where your income is actually going, where that revenue is going, we might see that some of that revenue doesn't necessarily, necessarily mean that you're going to increase your income. And so a lot of folks tend to focus really on that top line and think to themselves, if only I can get that $20,000 or the 20, $30,000 or the $40,000 months, then everything will be fine. Right. But the problem often come when your expenses increase at the same pace as your revenue, and then nothing actually changes because you're not actually building in that sort of buffer into your business. And what happens then is, you know, it's very hard, I think, to. It's very hard, honestly, I see it so often. But there's a mindset that we have to really be aware of here. Right. And if we're making associations to specific revenue numbers as our only measure of success, then you will probably find that no matter what that revenue number is, you will always feel stressed. And I know you're probably thinking, yeah, whatever, Sarah. And if I'm making a million dollars a year in revenue, I'm totally happy. The reality is that if you're not taking home or you don't have a buffer in there, your margins aren't also growing, then you will continue to feel that stress. Truly you will, and you'll be stressed despite the growth. Right. You'll have nothing to show for all of that, and your business will never truly feel stable. And I think one of the most amazing things that happens when you really are able to design your business, structure your business in a way that makes your business strong and robust and stable and consistent in its ability to. To generate revenue and to generate profit. I think that's really when we feel this sense of freedom and relief and comfort and contentment and excitement around our business. So we want to perhaps shift our mindset a little bit away from the only measure of success we have is, or the biggest measure of our success is our revenue number. In fact, we want to be thinking about what is it that we want our business to do and how do we want our role within our business to look. So profit isn't just going to be rewarding you for those thousands of hours you're pouring into your business, but actually profit is a reward and a result for very intentional design of your business and the studios that grow and really do generate revenue in a, in a. Every month. And we see that number growing every month. It's not just about making more revenue, it's also about making more profit. And that really comes down to how you're structuring your business. And we also need to move away from this idea where we're seeing our business like this sort of hobby or passion project or something that we do to perhaps to. To, you know, for good and actually see it as this sort of economic engine, right? This machine that is designed to deliver this amazing movement practice, but with. With an impact and with. With all of the energy that you want to have that, that you want to give to your clients, but that is able to do that while also bringing in the income and the profit. And ultimately then also it has to bring in the revenue that you need. Now, as I'm already mentioned, you know, we see a lot of different stages of growth when it comes to your studio business. And no matter how old your business is, often early on, we see that you as the leader and the founder, you are the business. Right. I did this when I was starting out. I've seen it over and over again in the studio owners that I work with. Right. This means that you're perhaps teaching those classes, you're teaching the peak classes, you fill in the gaps, you jump in whenever needed, and you know, you're being responsible, which is, by the way, yes, absolutely the right thing to do. And, and, and the impact, right, is. Is good on the business because it means that you're building this consistency and you're building this engine. And the impact of that is. Is positive, but it's also a little bit sneaky in a lot of ways, because early on, when we see the results of that, and we're perhaps very energized by everything that we're doing in our business. We also making this association between the hard work that you are putting in and the output that you're getting from your business, the outcome you're getting. So your income is tied to how much you're there. Right? Your business can't grow without your time. You're training the studio, we train the business to depend on you. And we see this happen and it's this sort of idea that one day it won't. But the reality is that it's very hard to know when that moment comes. And we're often so deep in this sort of trap that it's hard to pull ourselves out. And then we have all of these other things that come along in terms of should we, is it the right thing to do? I don't want to let people down. I don't want to be seen as this type of a boss or that type of boss or that type of business owner. Right. And then there's a lot of other associations that we make. And I think that when you get to a certain point and I think you have to be really clear on when that is and this is a lot of what we help studio owners to determine inside of Thrive, which is when is it appropriate for you as the business owner to remove yourself from the business and where in the business does it make sense for you to remove yourself from. Right. Because oftentimes your value beyond a certain stage of business is no longer in just teaching. It's in designing the business and designing its ability to scale and making sure that a lot of the systems that are supporting that are intact, that are the way that you want them to be, that you are hiring the right people and they are trained in the way that you want them to teach and deliver a client experience, that you're really clear on your customer journey and what those touch points look like, that you're offers and the way that you're selling what you're doing makes sense and that is bringing you profit. And so the studios that are growing and really being so successful right now aren't scaling because the, the owner is just teaching more. Right. They're scaling because the owner is stepping into a higher level of leadership. This isn't always an obvious sort of next step here. And I often find that there takes, it does take coaching and support and perspective shifts for you to see the next step. Right. And we often create our own bottlenecks in our business because that's all that we know. And when you open up this, the, these sort of, these other doors to opportunity to growth, professional growth of your own in skills that perhaps you know would serve you but aren't sure how to get. That's when I see studios really take off and it is uncomfortable for sure. Right? You're, you're, you're entering into some doing things that perhaps are not sort of second nature to you, perhaps not easy or very, very new. And you know, we tend to as humans be biased towards not wanting to do those things, but they are uncomfortable and they are also very, very necessary. So we have to be really careful about falling into this sort of. We are the labor in the business trap as an owner and actually think about our time as from a leadership perspective as well. Now What I often see when we, when revenue starts to plateau, I want to share with you some of the, just really quickly before I, before I wrap up, some of the things I mistakes I see people making when they are hitting this revenue plateau and they are feeling frustrated, as they often are, as we all are, and wondering why, and we start to perhaps just sort of throw spaghetti at the wall. So this is what it kind of looks like. We see people perhaps offer some new type of program, new offer. They see a studio on the street offering a particular type of class, so they say, I can do that too. And they start throwing this extra class on the schedule in the hopes that it will pull some people from that studio on the street into your studio and all be well, right? We also see folks perhaps experimenting with pricing, but in a way that harms their existing pricing structure and pulling perhaps demand for their existing offers into perhaps lower priced offers or lower commitment offers which ultimately does not support stable and recurring revenue. Or we see folks perhaps doing, spending a lot of money on rebrands and new websites or agencies. And to be honest, they often it's a huge expense, but with often little to no reward. Because the reality is that those are all in and of themselves fabulous tactics. But when they aren't layered into a really robust, thoughtful strategy, you're creating just more complexity and more expense without getting clear on exactly how the profit is being created from those tactics. Right? In and of itself, adding a new class format makes a lot of sense. But if you only when you have clarity around how that is going to drive more profit and revenue and income for your business, right? Without that clarity, you get a lot of confusion. You get a lot of fragmentation of your marketing efforts. You get a lot more expenses and often a lot more admin and a lot more headaches for you and creates even more of that sort of chaos that we're often trying to actually avoid. And it's kind of an interesting, you know, when we think about it from a mindset perspective, it's kind of interesting because, you know, it does sort of. It feels like you're doing things and you're taking action, but actually perhaps creating more, or I should say more, more stress than, than actually results. And I'm all about results. And oftentimes it, you have to really sort of peel back the layers of the onion, look inside and see like what is it at the core? Is it that I want for this business and what do I want this business to look like and how am I going to get my business from where I am today to where I want to get to in six, 12 or 18 months and building towards that business. And so when you start to just throw tactics at the, you know, spaghetti at the wall or throw a bunch of tactics out there, it doesn't. It's not strategic enough to actually move the needle for the long term. It looks like you're doing a lot. You feel like you're taking bold moves, right? And I think there's a lot of noise around that and doing these things that are, you know, big, big goals and all of that sort of stuff. And it's great, there's place for it, but it has to come from a very grounded and sensible strategy. And so it's not about adding more. It's about being aligned with where you want to go and how you want your business to generate revenue. And you need to understand your business model for that on every level. Right? And so the studios that really grow past that bottleneck, past that revenue ceiling, are the ones that really are clear on what they want their business to look like. And they can see all of the pieces of the puzzle that need to go into the developing and that the business that they have designed, and they do that before they start throwing tactics out, before they expand. So they know exactly what it is they need to do, because they know exactly who they, their studio and their office are for. They know exactly what offers drive profit. They know their margins inside out, and they know exactly what drives those margins higher and lower. And they're also able to really, really clearly prioritize their time, energy and effort. And so they know what it is in their business needs, their focus and when. And also, I think this is just as important, you guys, what is some the things that you can, you can put on the shelf for another day, right? The things that don't need your attention right now, even though they might be easier to take care of, they're things that you can kind of put on the shelf or push away or delegate or perhaps take off of the list altogether. And so I think once you're able to develop this sort of the skills required around doing some of those. And it is a habit and it is a little bit of discipline, but let me tell you guys, it's a whole lot easier when you've got support and structure. And that's exactly what we give inside of thrive to all of the studio owners inside. Every single week, we show up for our group coaching calls and we talk through what's relevant right now in our industry when it comes to strategy and tools and resources and tactics. We talk about what we're seeing from a consumer perspective and also from what other big players are doing in the industry. And of course, we talk through the specifics of how you can implement specific strategies in your unique business because you're at a different stage of business and a different place in than anyone else out there. There is no cookie cutter solution when it comes to building a business. But there is a strategy and a next step that is going to fit what you need most for your business. And that's the approach that we take inside of Thrive. So if you're stuck at a 15 or 20 or $25,000 a month in revenue, then there's a few things I want you to remember. Number one, you're not failing. Actually, you have a really valid business. So congratulations, you're not lazy because my gosh, I bet you're working harder than you ever, ever have. And you also don't need to work harder at all. Okay. But you do need perhaps to make some changes unless you want to continue on as as you are, right? If you want things to be different, you kind of need to do things that are different. So right now you're probably operating inside a business model that has reached its limit, right? This is the capacity limit of the business that you've created right now. And so if you want to break through to that next level, then you want to design the next phase of your business growth for more profit and scale, scale. And you want to shift away from connecting your energy inputs, your hours worked, to the revenue output. All right, you want to separate those two and then you want to think about how you can step up and into that leadership role, what skills that you might need to spend some time working on and to develop. What are the things that will support your next phase of business growth. And sometimes that takes a lot of self reflection. It's not the easiest thing to do, honestly. But if you're willing to do that, my goodness, you will find a lot of doors opening for you. And I think ultimately we want to move out of seeing your role as a teacher and then a business owner to being a business owner plus an exceptionally great teacher. And so all of this is exactly the type of work that we do inside of Thrive. Thrive is my business coaching program for studio owners who are want to stop spinning their wheels and actually want to start scaling their business in a way that is intentional and sustainable and profitable. You guys, the folks inside a Thrive, they are not going to be going out of business anytime soon. They have been in business through the hardest of times that we have seen in the last 10 years and are stronger than they have ever been. Plus every single week when we get on a call, all I hear from my amazing studio owners is how much they are able to achieve in their business. There are wins every week, from growth to revenue growth to profit growth. But the ones that make me smile most is when I see them being able to take time out of their business and they are actually living the dream of being able to feel that freedom plus still get that income. So if you're ready to move beyond the revenue plateau that you're at right now and build a studio that actually supports you your life, then you can learn more at spring3.com forward/thrive. Because truly, I want to see your studio fund your fun and your freedom and and give you back what you're looking for in return for all of the effort that you're putting in. Okay, so I'll see you in the next episode. 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.