I had a chat with a friend on Monday that owns a yoga studio. Her studio is at maximum capacity and she was about to spend $40 000 on doubling the size of her space. That would mean that she would also take on double the rent.
Having made this mistake before I asked her why her customers choose to go to her studio over someone else’s. She said that her customers love the energy in the studio. The energy she tells me comes from the space, the teachers and the values she’s instilled as a leader.
I then asked if expanding her studio provided more of that energy and I could tell in her face that she understood where I was going.
Growth doesn’t have to mean expansion, it can mean being better.
I suggested that she keeps the space and finds ways to add more value so that she can justify an increase in price.
Just a 5% increase creates a large increase in profit at the end of the year.
Instead of losing $40 000 on construction and another $60 000 in rent a year in hopes that more people will show up.
She’s decided to take my advice and aim for better rather than bigger and she’ll be seeing the results as quick as in the next few weeks.
So many business owners are fishing for minnows, looking to the outside for growth while all along they don’t realize they are standing on a whale.