Episode 3: Setting Up for Success: Opening a Pilates Studio - The Key Steps

Kirsten Burgess  
Welcome to it's family business the podcast. Join the Burgess family at our dinner table, where we explore the power of connection through stories, laughter and lessons from life and business. Together, we'll reform the way we think about relationships, success and growth. Grab a seat and join the conversation.

Adrian Burgess  
This podcast is brought to you by Pilates reformers Australia. Your all in one solution for Pilates and wellness. If you're looking to invest in commercial or home Pilates equipment, you need to speak to the experts in Pilates. Visit our website, at Pilatesreformersaustralia.com.au, or check us out on social media.

Kirsten Burgess  
Hello, everybody. I'm Kirsten, and today I'm here with Cheryl and Adrian, and we will be talking about starting a Pilates studio, and the things that you need to think about and consider when you're looking to start a Pilates studio. So we've broken it down into six different areas that you need to think about, and they include your business model, whether or not you want to do a franchise or DIY, the legalities, the marketing, what equipment you're going to buy, and also whether or not you are going to have another income stream, such as starting an in studio shop. So we'll start with Cheryl, and we'll touch on the business model. What do we need to know about business models?

Cheryl Burgess  
Well, obviously, one of the biggest driving forces in Pilates at the moment is the group Reformer model, where you have between six to 20 reformers in your studio.

You can also have a boutique or a clinical Pilates studio. These are smaller Studios which have more than just Reformer equipment within them. And these can be found just as a studio on their own or within a physio or allied health practice. And then you can just have just the private studio, which is usually the single owner owns the studio, and they've just got a small little business that they're running on their own.

There's also wellness clinics where they would be having Mat Pilates. Some of the studios actually have a combination of things. So it could be yoga with Pilates, or barre with Pilates. And then the wellness clinics are also bringing in the sauna with Reformer Pilates or the magnesium baths. Those sort of thought processes are coming out at the moment.

Finally, there is the online studio. So you buy the Reformer and you're going to run it from home, and you as the business owner, are producing an app of some sort where you are running your business model from.

Kirsten Burgess  
So there's a lot of different ways that you can incorporate Pilates into your fitness business. How do you decide which business model is going to be the best model for you?

Cheryl Burgess  

I think you're going to have to look at things like being able to get the right instructors to teach your Pilates for you, ones that are going to be educated either just in Reformer or just in Mat. Or are they fully equipment taught in diploma?

You need to think about what is going to be your income, like, How much money do you need to generate from this model that you're going to choose? And that will be a governing factor, because you'll have to think about the expenses of bringing all the equipment in to generate the income that you want to take out. 

Also consider your particular interest. So, you know, are you interested in a wellness clinic? Are you wanting to not just provide Pilates, do you want to provide bare and yoga and a sauna and a magnesium bath and a day spa and whatever. 

Adrian Burgess  
Do you think that maybe, is it wise to look at other studios in the area and then maybe try and create a point of difference, as opposed to, just copying what everybody else is doing.

Cheryl Burgess  
I think that's exactly where the industry is going at the moment. I think that people are looking at different ways. You know, people want to exercise in Pilates because they understand the benefits of it. The question is, how through that model, do you make your business profitable for you?

Kirsten Burgess  
That brings us to the next point, the decision of whether or not you're going to buy into a franchise, or if you're going to set up your own studio and run it your own way. Talk us through the franchise first DIY dilemma that people often go through when they decide they want to start their own studio.

Cheryl Burgess  
Look, when they're going to choose a franchise. Obviously there are the franchisee expenses that you're going to have to pay as a yearly fee. The bonus about having a franchise is that they give you pretty much everything up front. So you've got the support, you've got the marketing, all of those things come together. Some of them also provide you with the equipment that your franchise is going to have.

The downside to having a franchise is that you don't actually get the freedom to make any changes to the model. You're pretty much restricted in what you're going to buy, how you're going to, you know, fit it out. Some of them [franchises] are like you're only going to fit out in this [equipment], you know, the ability to be an individual or to put your own spin on things is sometimes very limited in a franchise opportunity.

The DIY model, obviously, you've got free reign to do whatever you like. This would probably appeal to those people that like to, you know, think outside the box. You know, they're courageous. They want to be in control. You know, you have that personality where, you know, you're driven. That usually works well in a DIY model for somebody. 

Adrian Burgess  
Look, I think, yeah, if you've got no idea about anything in regards to running your own business, then maybe, you know a franchise is is the way to go. But I think you know, in general, running a Pilates studio is tough, very hard work.

You want to think carefully whether you want to be scraping off your profit and giving it back to the franchise to some degree, and maybe talk to friends and family, or talk to equipment suppliers like Pilates Reformers Australia to get advice and see whether you can do it without going to a franchise and wasting that money.

Kirsten Burgess  
Yeah, definitely. Then you've got to consider the legalities of starting a business and all of those sort of boxes you've got to tick to make sure that you're legally able to operate. 

Cheryl Burgess  
Well, definitely in Australia, the first thing you're gonna have to get is an ABN, unless you're going with the franchise, and they take care of all that sort of stuff. But I think, still think you need an ABN to trade underneath that franchise model.

Insurance is a big one, and then making sure that your instructors also have their own professional indemnity and public liability insurance, and to keep track of all of that. Your instructors also need to have first aid certificates and CPR. So as an owner, if you aren't even trained as an instructor, for example, you're just a business owner that wants to invest, making sure that you're ticking all those boxes that is required for that.

Leases, are you going to lease or are you going to buy the premises? 

Adrian Burgess  
I was going to say that's something we see a lot these days, with people wanting to open a Pilates studio, and they go for a premises, but it may not be the right premises at the end of the day. It seems to be a constant battle with people fighting with councils, you know, with council putting sort of stipulations on them for this premises that just are not achievable for them. So the premises is probably almost the first stop.

I think, for starting a studio, you've got to get that right first and be doing your homework. Be careful you don't sign a lease and then it's the wrong property. 

Cheryl Burgess  
Definitely do your homework with the council. I know that the real estate agents would want to push you into the lease, but just take your time to do your homework correctly. You want to put [your business] in the space is actually zoned correctly, one and two that you the council will actually give you approval for that because there's certain stipulations around disability access and space requirements, parking, noise, operating hours. So all of that's important that you need to take care of.

Kirsten Burgess  
I think parking is a huge one. That's something, I mean, we've encountered even running our own studio, parking has always been an issue. Yes, so make sure that there's parking and your clients can easily access your studio, because otherwise they're not going to come. If it's too hard, they're not going to come to your studio. 

Cheryl Burgess  
Definitely, like, I know, one of the premises that we had, we used to run lunchtime classes, and because there were, it was a space where there were other practitioners operating and, you know, they had all their clients coming through at lunchtime. It was terrible for people to park, and they wouldn't. They'd just try drive around the block, drive around the car pack, and then just go, I can't be bothered, and they'll go. So you're right. Parking is definitely a big issue.

Other things, I think, legalities wise, is making sure that you have strong employment contracts in place. Knowing the HR and industrial relations laws around your employees, and making sure that you check that with you know a HR person definitely is important. I know when we were in our studio, we had a HR person as a consultant, which I would always make sure that we had the right contracts for our staff when we were running the studio. 

Kirsten Burgess  
Be fair, but firm, I think, when it comes to employee contracts and things like that. You know, don't let them walk all over you or anything. It's your business, and you make sure that you protect yourself as well as look after your employees, but definitely protect yourself as well.

Adrian Burgess  
I feel that from what I've seen, having the right staff is kind of imperative to the success of the studio. I wonder what you think about this Cheryl, would it be better to try and keep your staff numbers smaller and give them more work, as opposed to having a bigger staff where they each get less work? Because then it's harder to keep them. They start working at competing studios because, you know, they've got to work, and you don't have the time for them. I just wonder whether putting them on a proper sort of full time wages, and then you can share it around like that. Would that be a wise decision, or would I be completely wrong?

Cheryl Burgess  
When you first start out, you have that luxury to be able to give instructors more shifts, but the only downside to that is you have to make sure that they're the right fit for your studio, and you can't really tell that just from having an interview with them.

You won't be able to tell that until a month down the track, once they've been teaching classes and whether they're actually giving the quality that you have in mind. So hiring someone as a full time employee, or even a part permanent part time can be tricky, because you want to make sure that they're doing the right job for your studio and promoting it correctly.

The bonus of having a contractor is you can just say 'it's not working out, you can go' and there's no legalities around that. You know, obviously you follow the right channels to let them go. But you know, if they're not working out, that's an easier out, basically. But when you do find one that is good, then yes, trying to make them an employee, to keep them happy and to keep them working in your studio is important because that helps to generate your income and the success of your studio.

If that's possible, then, yes, definitely go down that track. And the difficulty is, is that when they are contractors, the nature of the business is that they do have to go to different studios to be able to generate enough income so that they can live their lives and do what it is that they want to do. So it's a real difficult gel that you as an owner have to be able to manage. 

Kirsten Burgess  
I would say probably, I mean, I haven't run a studio, but I've watched other studios, and I think having more [instructors] is probably the better way to go, especially because if somebody's sick and you need somebody to cover the class, it's good to have a bigger selection of people that can possibly step in and cover that session for you. If you've got a smaller number of instructors on your list, and somebody's sick and they're all out, or busy, or with kids, or whatever it is that they're doing that day, then, I mean, you're the one covering  the class, because it's your business, or you've got to cancel it and give everybody their money back.

Adrian Burgess  
Yeah, there's a fine balance there. Because I know, people will go to your studio because they like your instructor. But then when they hear that your instructor is working at a studio closer to their home, they will go to that studio so they're back with that instructor. You know what I mean? So that was this fine balance there.

Cheryl Burgess  
No different hairdresser. You like your hairdresser, the hairdresser moves to a different salon, and you go to that salon because you like the hairdresser. So I don't think you can fool-proof it. Basically, you can try as best as you can to treat your employees as well as you possibly can and make them happy. But at the end of the day, if they leave, they go somewhere else, and the clients go with them. There's not much you can really do about that, which is the sad part about it.

Kirsten Burgess  
So the next point, I guess, is marketing. You got to be able to market your studio. What can we say about that? 

Cheryl Burgess  
Look, I think you need to think about four things when you're marketing your studio. I think you need to think about 1. who is your ideal client, like, who are the type of people, what's the age bracket, demographic that you want to come to your studio?

Kirsten Burgess
Conduct a client avatar.

Cheryl Burgess
Exactly. I think you need to figure out, when you're doing that avatar, where are they and what do they frequent, which cafes did they go to? Where are their kids going to school? All those sort of things. And then target your marketing to that location.

Then figure out, you know, what makes you unique, like, why is your studio different to the one that's 100 meters down the road? And really sell that point to the people, because, you know, I'm a big believer in those people that need you will be attracted to you and what you're providing. And so if you just stick to your guns and provide what you're providing that will appeal to the people that are your ideal clients, and then they will come. 

Kirsten Burgess  
I think one thing I've noticed about studios, you know, working in the industry and also as a customer that's gone to many different studios, you've got to have a good website, and I've you've got to have I need to be able to book online. For me as a young person, I don't want to ring you. I don't want to have to DM you to book my session. I just want to go online, book it, pay for it if I can, and know that I'm going to turn up at nine o'clock and do my Pilates session. Personally, if I can't book online and it's not simple and easy, then I'll find a studio that it is. Especially now when consumers have so much choice with the studios that they can pick from, it's got to be easy. It's got to be accessible, affordable. Those are all things that you've got to consider.

But I definitely think having a good website and a good online booking system or an app. Even better, if you've got an app, they're really good things to have to keep it easy for your customer base. 

Cheryl Burgess  
I think also, the other thing with your marketing is when you choose your booking system, because one of the things with the booking systems these days is that they actually have integrated marketing platform. Within the booking system. So you know your newsletters and your emails to your clients and all those sort of things are integrated into your booking system. So things become automated for you as the owner.

So you know, when they're coming to the end of their package, they're going to automatically get an email to say, 'Hey, you're coming to the end of the package, rebook again'. You know the SMSs are getting sent out to remind them that they've got their class, which helps to reduce the people that are not going to show for their sessions, and all of those things which reduce the operating costs for you as the business owner, will help to increase your success.

Another thing that you need to think about is your branding. That's the fun stuff, you know, your logo and your colours and all that sort of stuff. Make sure that you've got your branding on point.

Really try to build out your mailing list. When you're working with your marketing, try to build your mailing list out, because people go for whatever reasons. It may be money, it may be health, it may be family situations. You don't really know why someone will leave your studio, but if you keep in contact with them, by regularly emailing them, then you're still on their minds. And so when something happens and they realise they've got to come back to Pilates, you're going to be their first choice.

So making sure that you have a good way to get a good mailing list together is good.

Kirsten Burgess  
Social media. Make sure you've got a good profile. Be on Instagram, Facebook, Tiktok, LinkedIn, wherever you can be. Be there. 

It is hard to manage, social media is honestly a full time job within itself. If you're going to do it right, if you can afford a content creator or a social media manager, I would say it's definitely an investment just having someone, even if they just do it part time, to schedule a couple posts for you and do a little bit of engagement for your studio page. It's really important, because people look at that. If I'm looking at a studio, I will look at your social media, especially today when it's all about the aesthetics, like, 'Oh, that looks like a nice studio. Yeah, I'll definitely go there.'  But, yeah, definitely social media is a good one. 

Adrian Burgess  
That's a good young person's perspective. But for me personally, I would go straight to Google 'Pilates reformer studio near me,' you know Bondi or Camden or wherever I live. So would you invest in someone to host your AdWords campaign?

Cheryl Burgess  

Yes, SEO, Google AdWords is definitely a must as part of your marketing strategy. Especially when you can localise your Google AdWords and your SEO to target the areas and that that you're living in, to target the demographics, to target your ideal client avatar. Definitely that is something when that comes back to your website. So once you've got that website up and running, that's another extension of that. 

Kirsten Burgess  
And do a photo shoot. Get good photos of your studio. You've only got to do one, but it really makes a difference. It helps with your branding, in your aesthetic, and it just makes you look professional. 

Cheryl Burgess  
And I think you have to look professional, not just even if you are a home studio and you're running it from home in your purpose built garage, spend the time to make it look good and spend the time to take a good photo shoot, because it does bring back the investment, definitely.

The other thing I think you need to also think about with marketing is promotions. Like, having an intro offer is also a good thing for a studio to have, and then what is your next step after you have that intro offer, so it's not good just to have come and do five sessions for $50 like, what is the next step in your process that you're going to have once that promotion finishes to keep that client coming back. So then we come back to our mailing list and our booking system and our marketing strategies and we've got in place to make that successful. So they're all good marketing strategies that I think you need to take into consideration.

Kirsten Burgess  
So our next point, which obviously we all have quite a bit of expertise, is, is your equipment? What equipment you need to buy? How to pick the right equipment. Adrian, you can start there.

Adrian Burgess  
I'll try not to be biased. I mean, we've all got to start somewhere with the, you know, the many new equipment suppliers, which are currently in Australia. You know, we've had like, at least 20 pop up during COVID when the demand kind of exceeded the amount of supply that was available. So I think I usually say to people, maybe look at the warranty.

I don't want to get too technical on the quality of the equipment, and you know how equipment's made, and things like that, but the warranty is generally a sign of the longevity of the equipment. So, for example, Align-Pilates give 10 years warranty. We do that because we have looked at the parts which have high potential of wear. So I think warranty is a good thing to go by. And you know, potentially how long the company has been around is something to consider. You know, what sort of expertise do they actually offer? I mean, there's Pilates studios out there selling Pilates equipment, you know, and there's ex gym owners selling Pilates equipment. I mean, what do they really know? They just sourced a factory and are buying equipment. They don't really know that much about what they're doing. So

Cheryl Burgess  
Is that important? For them to know that, though?

Adrian Burgess  
From my experience, a breakdown of equipment or a breakdown of Reformer can at the end of day, if your studio is booming, you're on 10 reformers, and two of them are down. What do you do? You can't you've got two clients that now can't come and may not come back. They may go to a different studio. How quickly can they [suppliers] come to fix it? Do they have the parts in stock? You know, this is another thing, we keep parts and everything wear and tear. Parts are always available. You know, replacement springs, wheels, all that sort of stuff, which slowly does wear out. We keep all that sort of stuff. Do they keep that? Do they have that sort of knowledge base? So, yeah, warranty really important.

Have a look at that. ISO. We do ISO on our equipment, which is the international standard. So we test for longevity. You know, the equipment runs for, oh, gosh, it's like 100 how many hours is it? It's a lot of hours that they run with 150 kilos on the carriage and all this sort of stuff, which tests that. You know how much the pulleys can take and springs can take etc. you know how safe the football bar is weight testing,

Kirsten Burgess  
And I suppose the ISO is also important, because it's an extra insurance for you as an owner that, you know that your equipment's been tested to be somewhat safe, and you know, a spring isn't going to necessarily snap and smash my client in the face.

Cheryl Burgess  
Look, I also think when you're thinking about equipment for your studio, you need to think about the diversity of it, like, Can it grow with you as your studio grows and changes, so that you can continue to be competitive in the market.

Things like being able to put on a tower onto your Reformer, if that's just a Reformer studio, or have you got space, then to put in a Wunda Chair, because that's going to allow you to do circuit Pilates, for example, or those sort of things, I think also need to be considered when you are picking your equipment for your studio. 

Kirsten Burgess  
And it's true, because obviously we know Pilates equipment goes beyond just a Reformer. So if you're wanting to go and do a variety of different Pilates or run a variety of different Pilates classes in your space, then thinking about the different pieces of apparatus that are available for you to purchase when you're starting or in the future is also something to think about.

Adrian Burgess  
Yeah, so often these days we we're getting studios coming back after five years and adding the half trap piece because of the competition in the area, and other studios opening with exactly the same offerings as what they have. So they're looking at different options, including, you know, offering the trapeze sort of exercise as well, which is not that difficult to manage for them.

Cheryl Burgess  
Yep, definitely. There's also classical equipment. There's not just contemporary equipment. So, you know, that's another type of area that people can branch into, and all of the small bits and pieces that go with that. So that gives you a bit more diversity in your equipment. So yeah, there's lots to consider with equipment. Do your research. Do your research with your equipment. Definitely make sure that you've chosen base on your style and your post purchase care, your repairs, longevity, ISO, warranty, all those sort of things are important.

Adrian Burgess  
And also, are they going to provide service information like, Are you keeping proper records of your Reformers? So if someone was injured on a particular Reformer, did that happen because it actually had an issue the night before and it wasn't reported? Do you have that documentation? All that sort of stuff is really important, and that comes from equipment suppliers who have expertise in what they're doing.

Cheryl Burgess  
Yep, definitely. 

Kirsten Burgess  
Our last point that we invite people to consider is what are the other income streams can you add to your studio, aside from just running classes. Should you add on an in studio shop and stock socks or activewear, or  drink bottles and towels?

Adrian Burgess  
I reckon you should. I think you can, because you're basically a shop front at the end of the day, why wouldn't you try and pick up that extra income.

We have the ToeSox brand, but we always advise promoting the, 'no sock, no Pilates' policy. Because they should have anti-slip socks on for safety and hygiene, etc. It's a great opportunity to get extra income. You do want to have good quality socks, like Toesox, otherwise you're going to be handling all the returns and all that sort of stuff, which is, 'oh, my socks only lasted two sessions. They've already worn out'.

Cheryl Burgess  
My favourite is 'my foot rolls inside the sock'. Well that's because you don't have, a TAVI or a Base 33 or one of those brands.

But yes, extra generating extra income can definitely assist with the operation costs of the studio. It allows you to be a bit more diverse as well, separates you away from all of the other people, you know, water bottles, even small apparatus like balls for people, or, you know, Pilates rings, all the things that you've used in the sessions.

Adrian Burgess  
100% they could even, I'm just putting this out there, they could even sell Reformers. 

Cheryl Burgess
You just said the studios are selling reformers, and you don't like it.

Adrian Burgess  
I mean, you know they can, you know they could buy a home reformer, for example, because sometimes men, particularly, you know, they love reformer, but they can only go once a week. It wouldn't hurt them to have a Reformer at home, and that studio could, you know, potentially talk to us, and they could, on sell that Reformer and get a little bit of commission for themselves.

Cheryl Burgess  
Always selling your business. I love it. But yeah, that would probably be the six points that I would consider when thinking about starting a studio, what's going to be your business model, which way you're going to go, whether you're going to choose a franchise versus DIY, the legalities, or the legal aspects that come with starting a studio, make sure you got your marketing on point. Make sure you do your research with your equipment, and definitely consider other income streams to help boost your business. 

Adrian Burgess  
And be and be extra friendly, be a really nice person. 

Kirsten Burgess  
One thing we didn't touch on, which I'll just bring up quickly, I know that when we had the studio, we had the studio Christmas party where all the clients came together and you're building a community.  I think that's really important. I've seen other studios where whatever event they might be having on or, they invite everybody to come in the community and do an open day and things like that that really bring people together.

Cheryl Burgess  
One other thing, sorry. Because you're local to the area, sponsor local events, sporting clubs and stuff like that, because that also helps to get you out there and be a part of the community. And then they see that you are willing to interact with community, and then they will then recommend people to come to you. So that kind of word of mouth referral is priceless marketing. And you can connect with the other local businesses  that will refer their customers to your studio

Talk to the local physios, Chiro's stuff like that. Put out your flyers, yeah, be be part of the community. 

Adrian Burgess  
I saw a post recently on Facebook about someone saying, 'Oh, I hate it when my clients talk to each other during class. You know, what does everyone think about this? How can I stop it?' And a few people had come up with a few ways to try and make them work harder and all this sort of stuff. But then someone who may have been a bit older, I'm not sure, but she commented, 'you need to realise that people are making a community. They're coming to talk to other people. That's why they're coming to your class, because this is something that they do. They don't just do it for the exercise. They do it for the social side of it, especially if they're on their own.' And I know that people used to come to your [Cheryl] studio and they'd go out for morning tea after class. You know, so I think that's a good way to look at it, that is a social thing for people. Yes, sure, the younger ones are there to try and get six packs and maybe strengthen their backs. 

Kirsten Burgess  
Excuse me! And the old people are there for their rehab to hurt their knee.

Adrian Burgess  
You just got to keep that in mind. Yeah, there is a community definitely, and you should foster that for sure.

Kirsten Burgess  
All right. Well, that brings us to the end of this episode of It's a family business. Thank you very much for joining us, and we'll see you next time bye.

 

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