Pondering Profitability

We don’t exactly work on wall street, do we?

Let’s talk profitability. In the brick and mortar, boutique fitness and yoga business world, our margins are tight. This means that we don’t often have a lot of profit or cash leftover after we pay our bills. It means the owners are often not rolling in cash a la Wolf Of Wallstreet. And I’m here to say to this reality YES, AND?! I get sick of some of the conversations online about always needing more profitability and the undercurrent, almost shaming vibe, about the dire boutique studios not making ENOUGH money. Enough for whom? Enough for what goals? Be careful of listening to people tell you what to think about your business online without context. Just because corporate America would scoff at your P&L it does not make your studio less successful, important, or impactful!

Me teaching at my studio baby a few years ago

I have worked with studio owners whose studios are hobby playshops where they aren’t worried about profitability at all as long as they have a place they like to go move with their friends. I have worked with owners who are using personal savings and double mortgages to support their businesses after investing too much time and money for years. Most studio owners I talk to are in the middle, they often feel ok about their cash flow, bank balance, and owner draw / salary. They have growth goals of varying degrees and want to optimize and thrive across the board. We are all connected in our desire to build and cultivate soulful communities who move together; to have work that lights us up each and every day.

More isn’t always better my friends

I am here to remind you that more is not always better. Yes, a tight budget can be pretty difficult to work with. If you are in that place, you always have these three choices - accept it, change it, or remove yourself from it. I have found it helpful to think about my personal min and max. How much minimum do I want in my business bank account to feel secure? How much do I need to bring in to have good cash flow? What is the maximum amount of personal money and energy I’m willing to spend on this heartfelt business project? Every single person has a different money story, real estate reality, and heartfelt mission they are driving towards. Be honest about yours without blame or shame. Keep focused on your vision. Phone a friend if you need support in making hard choices or changes.

What would I tell my younger self? The one who wanted to empty her savings, quit a full-time day job she loved, take an SBA loan, and a HUGE personal security risk in buying her studio dream job? First, I’d say, hell yes, let's do it! Life is short and growth only comes from challenge. Don’t forget about Maslow's hierarchy of needs though, your basic needs must be met. Think about exit strategy, in my case, how long are you going to do this and what might be triggers or messages that it’s time to stop or make big changes? You know what you’re worth no matter what the supply and demand situation is. Your mission can continue in this and many forms. 💗