Owner Engagement in Pilates Studios: A Tale of Two Approaches
Introduction:
Welcome to the seventh of ten focussed articles in our special series on What makes a Pilates studio truly profitable. Drawing from my 20 years of experience in owning, running, and consulting for Pilates studios, I focus here on Owner engagement and its importance in developing a profitable Pilates studio.
In the UK, the financial landscape of Pilates studios varies widely. Boutique Pilates studios, typically sized between 800 to 2000 square feet in leased buildings, see turnovers between £200K and £400K, with net profits ranging from a loss to 20%. In contrast, smaller home-based studios, spanning 300 to 700 square feet, have turnovers between £30K and £80K, and net profits range from 10% to 30%. These figures are grounded in the realities of running such businesses, where "turnover is vanity, profit is sanity, but cash is king.“
The level of engagement and enthusiasm from the owners of Pilates studios can dramatically influence their success. This contrast between profitable and less profitable studios becomes particularly evident when examining their management styles and aspirations for growth. This exploration, structured to compare the practices of profitable versus less profitable studios, will delve into how owner involvement impacts studio performance and growth potential.
Engaged Owners: Driving Force Behind Profitable Studios
Profitable Studios: These studios often have owners deeply involved in day-to-day operations. Their enthusiasm is not only a catalyst for initial success but also a sustaining force that propels the studio forward. They are actively involved in decision-making, client engagement, and staff motivation, which translates into a vibrant studio atmosphere and loyal client base.
Less Profitable Studios: In contrast, owners of less profitable studios might start with similar enthusiasm but tend to step back prematurely. This detachment can lead to a loss of the studio's unique character, diminished client engagement, and a general decline in service quality and studio atmosphere.
Impact of Owner Aspirations on Business Structure
Profitable Studios: Owners with clear growth and expansion goals often opt for a business structure like a limited company, which supports scalability and shared ownership. This foresight allows them to maintain 100% share ownership maintaining full motivation but at the same time bring in new Directors or if need be equity investors while maintaining the studio's ethos and quality.
Less Profitable Studios: These studios might choose a business structure that doesn't align with their long-term goals. Owners seeking a lifestyle business but setting up structures that are meant for scaling can face challenges, as they struggle to balance personal involvement with the demands of a growing enterprise.
Incentivising Management for Sustained Success
Profitable Studios: Implement innovative strategies like profit sharing or pseudo shareholding to ensure that their managers or potential partners are as invested in the studio's success as they are. These incentives create a sense of ownership among key staff, driving them to contribute actively to the studio's growth and success.
Less Profitable Studios: Often lack such incentivisation mechanisms, leading to a management team that might not share the same level of commitment as the owner. This can result in a lack of continuity in the studio's vision and a drop in performance, especially evident in franchise operations over time.
Conclusion:
The dichotomy between profitable and less profitable Pilates studios often lies in the level of owner engagement and the strategic choices made around business structure and management incentives. Profitable studios benefit from owners who remain actively involved or effectively transfer their passion and commitment through strategic business structures and incentivisation schemes. In contrast, less profitable studios often witness a decline due to the owner's reduced involvement or misaligned business strategies. For lasting success in the Pilates industry, maintaining owner enthusiasm, either directly or through empowered management, is crucial.
Author: Chris Onslow - Pilates Consultant
Chris Onslow, has run Pilates focussed businesses since 1998. He and his team specialise in supporting Pilates entrepreneurs and business owners. With a rich history of owning and running successful Pilates studios in the UK, and supporting others in Europe and the Middle East, Chris has broad expertise in maximising profitability and optimising operational efficiency. His agency provides top-tier advice on selecting new, pre-owned, and hireable Pilates equipment from renowned brands such as Align-Pilates, Balanced Body or Stott-Pilates/Merrithew. As the founder of Mbodies Training Academy, Chris continues to revolutionise Pilates education, offering premier online and hybrid CPD and qualification courses for Pilates apparatus instruction and special population CPD. Discover more about how Chris can support your Pilates Business or home exercise choices at www.pilates-consultant.co.uk