It seems like the #1 concern for every business, whether it's a small yoga studio or a large gym is how to grow. But growth doesn't always equal higher profits, nor does it mean that your business is prepared for the responsibility of growth such as hiring, expanding space, budgeting, and more.
Every small business or gym seems to want to grow; the question is, are they ready? Check this quick assessment to get an idea if your yoga studio or gym is ready for growth.
#1 - Why Do You Want To Grow?
I wrote a guest blog post recently that defines my sales style. However, within this article is a pretty personal issue I have with a lot of businesses. Why do you want to grow? Read the entire article, but in particular read the section titled selling with purpose.
Now if I ask you, "Why do you want to grow the size of your studio?" do you think you can honestly tell me why?
Not because you want to make more money or retire, but the REAL reason?
It is a truth that is deep down inside of you and is going to take a lot of thought to uncover. I'm not sure that most studio owners know why they want to grow.
However, if you can truly define why you want to grow your yoga studio, it makes the growth process more natural and your goals more easily attainable.
#2 - Are You Ready to Hire Instructors?
Hiring your first instructor is a huge step. I have to say, after hiring our first employee a few years ago, I don't regret a thing.
However, it could have gone in a totally different direction.
Hiring is stressful and managing an employee can be a pain. Hiring an employee sometimes does not work out for a solopreneur because they are used to doing everything themselves.
They spend their time micromanaging their employees rather than delegating and focusing on sales and growth.
If you are planning to grow your small business and are planning on hiring employees, just make sure that you are ready to let go of some of the operations.
From a fitness center bookkeeping perspective, you also need to ensure that you have the financial backing to handle taxes and payroll costs associated with an employee. Payroll should be outsourced, if possible.
Outsourcing your gym payroll bookkeeping ensures that it is free of errors and removes financial liability from your business if your payroll doesn't match up around tax season.
#3 - Will Your Business Grow Into Something You Hate?
Will growing your yoga studio make you hate it?
I can't tell you the number of business owners or former business owners I talk with who tell me that growing their business past a certain point was the worst decision they ever made.
Dealing with too many instructors and clients caused them to crave the simpler days when it was just them. Back then, there was nobody to worry about or blame or praise but themselves.
They will tell you the ultimate business horror story that drove them to where they are now: back on their own.
Maybe they made a critical mistake and maybe they didn't. Maybe they were cut out for growth and maybe they were not.
Financial considerations and personal preferences can make the difference between a successful business and a failed one.
#4 - Can You Deal With Failure?
Many entrepreneurs fear failure and rejection; the problem is, they are going to have to experience it on some level.
Thinking that you will start and then grow a successful small business without having some failures and rejections along the way is unrealistic.
Fearing rejection and failure is admitting defeat before you even face it and those negative thoughts have no place in entrepreneurship.
Successful entrepreneurs know that they will face failures and rejections along the way, but they are also equipped with the skillset or mindset to rise above them and succeed anyway.
Likewise, having a financial safety net is crucial to ensuring that you aren't putting all your eggs in one basket. Have a bookkeeper set up a financial forecast to give you valuable input on the ups and downs of your industry. From there, you can plan for slow periods where you otherwise may suffer from a lack of cash flow or profits in your yoga studio.
You shouldn't fear failure. You should plan for it.
So, you are ready to grow your small studio, right? Just make sure that you really want to grow your yoga studio before you take that next step.