Author: Lisé Kuecker

{Light bulb moment} Life is going to change. You are going to open a business. Or you did open a business, one, two, ten years ago. And, that light bulb moment, it’s starting to dim.

Why do we open companies to start with? Probably because we think they are going to support the lifestyle we want. This was me. I was a mom, a military wife, someone who moved {much more than I liked}, and I wanted to enjoy my life and follow my “Why”, which is without a doubt changing people’s lives.

Being an entrepreneur made sense—I could work from anywhere, travel to my studios, and build a great team. And, I was lucky to have made enough mistakes early on to learn what I had to have to create a successful business. I’ve started businesses from scratch and taking failing businesses to some of the best around. In every circumstance I apply the same systems.

In reality {or if you looked at my studio opening checklist} there are literally hundreds of pieces to the profitability puzzle that have to be fitted together just right for a studio to burst to success. *Since I’m not writing a book {yet} this means I can’t tell you everything, but I’m going to hit some biggies.

In the end there are four things that you must have to start {or re-start successfully}.

1. Pricing
2. Persuasion
3. Profit

When I started to write this and got to one page on pricing, I realized it was time to break this down just a bit. So stay tuned for Persuasion and Profits.

Pricing:
And, by pricing I mean the right pricing. If you’ve ever been on a webinar when I’ve chatted about this, you know I am the biggest nerd when it comes to pricing and the behavioral economics behind them.

Why? Well, your client is irrational when it comes to price. We’ve been told follow your market, price yourself in line with your competitors, maybe just a little less. Raise your hand if this is exactly how you set your prices {Me…seven years ago}.

Turns out that strategy doesn’t matter to your client. {Let me stress here, that pricing strategy is only as good as the sales system that can educate your client to see value}. Your clients needs comparison. They need to see value, not just in what you’ve taught them, but in what you’re asking them to buy.

First, of all your pricing needs to be based on YOUR value. If you are the best {let’s define this—best results, best customer service, best personality} you can charge far beyond what anyone around you can. You’re worth it.

Second, your individual session price should be extremely expensive. Cost prohibitive. Make your clients cringe outrageous. Why? Because, everything else looks like a value in comparison.

Third, your pricing needs to factor in your profit margins. When’s the last time you analyzed the profit margins on what you sell? I mean deep down dig in. You need to be highly profitable and if the profit margins aren’t there, either your price or your product is incorrect.

Finally, {and this is crucial} you actually have to believe that you are worth it. Have you ever had someone offer you something they clearly don’t believe in. I was in Whole Food’s recently and watched this phenomenon. A young woman handing out samples, just wasn’t too sure. The product may have been great…maybe she just didn’t like coffee, or vanilla. But, even her faint discomfort or uncertainty on the product shone through like a beacon in the night. Your customers see you. Let them believe as much as you do!

Stay tuned…persuasion coming next!

 Do you want to stop sabotaging your business and starting adding to your bottom line? Download the 4 Profit Killing Mistakes cheat sheet now!

Send My 4 Profit Killing Mistakes Cheat Sheet!

 Do you want to stop sabotaging your business and starting adding to your bottom line? Download the 4 Profit Killing Mistakes cheat sheet now!

Send My 4 Profit Killing Mistakes Cheat Sheet!

What did you feel when you started your business? An intense overwhelming, I am almost ready to burst kind of excitement?  The kind of hope that makes the grouchiest curmudgeon alive, grin? How about an overwhelming sense of self-sabotage?

If right now you’re waving your arms and yelling, “No, not me…I would never, ever, ever sabotage what I’ve worked so hard for”, think again.  Everyday I work with studios and coaches {and in all honesty, myself} to overcome habits that are sabotaging the profits and success of their businesses.

Every coach and teacher I work with is just a little bit different. Some have carried over subconscious prejudices from their prior business life {Yay, I’m free!  I never have to sell again} and some are walking into entrepreneurship with an ever present chip on their shoulder {I’m not in this for the money, I’m only here to change the world}. Even my most successful clients {and once again, me} with million dollar businesses have those little thoughts that pop up into their head that not only are false, they undermine our chance to grow {This is the most money my business can make and I shouldn’t expect to grow anymore}.

{Silver lining}. There are five shifts you can do today that can erase the sabotage and put you on the road to success.

1. Comparison is the thief of joy {and profits}

As soon as we open our business we’re on the lookout for the next, bigger, better business that’s going to steal our competitors.  This causes us to change our prices, alter our packages, and change how we sell, all while forgetting the most important thing…our Core Client. Your business and the value it brings to your customers stands apart from your competition.  It is up to you to educate your client during your sales and intake systems so they can see the value you provide.  And, a business centered on serving its Core Client always wins.

2. Put on your CEO mindset and get to work.

You are the CEO, the boss, the head honcho.  You may have forgotten this around the time you got overwhelmed with the not so fun side of this job {hello taxes and bills}.  And once we forget and fall off course, it’s easy to change our decision making from rational to emotional.  A CEO mindset forces you to make the best decisions in light of your business as an investment that must produce a profit.  An emotional mindset views your business as a hobby that can change at a whim based on your feelings {and never thinking of your profits}.  If you want to change your profits fast, become the CEO you were meant to be.

3. Use Contracts.

Handshakes simply don’t hold up when it comes to business {even though I hate this, it’s true}.  Contracts are there to make everyone’s expectations and responsibilities clear.  Just because you switch to contracts with clients {for anyone who is on a recurring billing package this is a must} and staff does not mean you suddenly are going to be a lawsuit wielding maniac.  It just means you can rest easy that you’re protected if you client turns out to be a lawsuit wielding maniac.  Put everything into writing and be sure to have clear files {both physical and in your email} that save your documentation.  This is a better safe than sorry lesson.

4. You are in sales and you must have a killer system that brings home the profits.

If you’re not operating a tried and proven sales system, you are sabotaging not just your profits, but the results of your clients.  Sales doesn’t have to be sleazy or aggressive…it should be a graceful education that teaches your client how they can utilize your products to achieve their greatest goals.  If you’re walking into each session uncomfortable and unaware how to walk your client into the sale without actually selling, you don’t have a well-rounded sales system.  Sales systems begin with a polished and concise Intake that walks your client question by question into an educated sale.  This process also let’s you guide your client into their perfect package…and the most likely chance for results!  If you’re missing that I guarantee you’re missing profits.

5. You set a goal without understanding why this matters to your clients.

How often do you really ask your client what they want to do?  Not what you see in their body, their Intake, their diet or their medical history, but what they want to do?  Or you stop at I want to lose 10 pounds and fail to find out why this matters so much to them.  The triggers that set your client’s goals are the foundation of your sales. Understand the pain that’s behind the goal and you will have completed 50% of your sales process without asking for a dime.

 Do you want to stop sabotaging your business and starting adding to your bottom line? Download the 4 Profit Killing Mistakes cheat sheet now!

Send My 4 Profit Killing Mistakes Cheat Sheet!

This morning a remarkable woman emailed me. She was passionate…yoga had changed her life and she had given her life back to yoga. She started as a student, but that wasn’t enough. First it was a certification, then a passion that pushed her to leave a plush corporate job. But, her hard work wasn’t bringing in an income that she could live on. What was she doing wrong?

 

The truth was this amazing, educated woman was on the right path. She had checked every block towards success. Her body and practice was beautiful. But, her mindset hadn’t transitioned to that of a business owner, which she now was.

 

I see these emails almost every day. The men and women who reach out for help are some of the most talented people I’ve met. They’re driven to be better for their students, for their family and for themselves.   They’re such amazing teachers that they haven’t been able to step out of their practitioner mindset in order to lead their business.

 

And, as a small business owner, you have to fluidly step between a CEO mindset and teacher mindset.    This transition takes time, but there are five key shifts that must be a part of it.

 

1. You are now the CEO.   And, CEO’s have to see the big picture and be able to make rational {read non-emotional, a hard one for me} decisions. The boundaries, decisions and leadership that you set in this position will determine your success.   But you’ll have to embrace this side of your work and accept that this comes first, because…

 

2. It’s not just about teaching yoga anymore. It’s about creating a sustainable business that will support your family and lifestyle. When it’s just you it can be okay to forgo little luxuries. But when you can’t pay your bills, arrange for medical care for your children or just plain old survive, things change. The passion you feel for your practice can fuel amazing things that can change your entire community…if you allow you’re clear on what your real needs as a human being are. S…

 

3. Before you do anything, be clear on what your baseline required income is. This is the income your family cannot just survive on, but can begin to thrive on. The key is to be realistic. And, when you start with the big goal of what you need, it allows you to break down your business goals very differently. You won’t just set a price at random. You’ll set your prices because they fit within a carefully thought out framework.

 

4. Preparation reaps great blessings. Once you have your framework of what you need to live on, it’s time to turn to setting up your business in the best possible way. And, there is nothing better to start with than your Base Operating Expenses. These expenses will be with you for the long haul, so setting them up right the first time, will save you enormous time and money. Go through each expense with a fine-tooth comb. What do you truly need when you’re starting out and what can you survive with? Start lean and gradually add as your business grows and your revenue increases. But all of these mindsets are so much easier if you…

 

5. Live within your zone of genius. As you finish setting up your base operating expenses understand that your best role is within your zone of genius. What’s a zone of genius? It’s the zone where you produce income and change in the most effortless way. Is it a place where everything goes perfect? No, that’s fantasy. Consider this the place where you need to put most of your energy to allow your business to succeed. A perfect example is that as much of neat freak as you may be, your zone of genius can’t primarily be in cleaning your studio. Let that zone fall to someone who is dedicated to it, while you focus on brining in revenue that grows your studio.

You got certified…cue champagne bursts, cheering crowds and confetti everywhere. And, you were sure this certification was going to lead to big things. And, it has—lots of big classes in lots of studios with lots of travel time. The only thing that hasn’t come in “lots” is money, and you’re scared this investment isn’t going to ever be able to support you full-time.

 

A brick and mortar studio just doesn’t appeal to you. It’s too much right now in your life, but there has to be an alternative out there. Besides, you’re ready to make yoga or Pilates your full time job .

 

Then it occurs to you. Oh yes, the non-traditional studio. This is where I began my business with a “floating studio” within a multi-billion dollar technology company. My studio and its employees arrived, set up our studio and left all within a few hours each day. My brick and mortar was a large empty room and the occasional conference room for larger classes. My props were limited and creativity was key.

 

Our footprint was transient, only there when we had classes and students scheduled, but our business model was brilliant once I found systems that I could build this on. {On a side note…the first year without systems was not brilliant and it’s proof that these models requires the most structure}.

 

There are three non-traditional studios that are fabulous business models within our current industries.

 

1. Private Yoga Instruction: I’ve called this the personal training model, but in reality this is yoga at it’s most traditional. Think of a student hundreds of years ago who sat before his teacher and intimately learned the art of yoga. It wasn’t until recently that group classes began to dominate the market.  Private yoga instruction can be done in-house, in-studio, at a client’s workplace or home. This will appeal to certain client types, often busy people with expendable income, who are willing to pay a premium to have all your attention. The instructors who love this often thrive on having their attention focused on one client at a time…it can be an energy relief after group classes.   Many Pilates instructors already follow this model, but for those who don’t consider it today!
2. Floating Corporate Model: This is where my story begins. This studio is often a combination of private classes with limited props and group classes. Your studio space if non-traditional and often squeezed into empty rooms within large companies. Before work, lunchtime and after work are primary times, but the larger the corporation, the more likely you are to book clients though-out the workday. The instructors who love this often need a more traditional workday and will relish having limited overhead and higher profits from day one.
3. In Home Studio: If we were to rewind time fifty years, nearly all studio settings took place in the home of the practitioner. For modern in-home studios this can be anything from an open loft in NYC to an above garage studio in the suburbs. The key is that your overhead is greatly reduced as is your commute. As appealing a 10 yard commute is this can often lead to a blurring of boundaries, the willingness to set appointments all over your calendar since it’s just next door and an inability to turn off work mode. The key to making an In Home Studio work, is to set your boundaries firmly today and stick with them. It’s easy to sacrifice your personal life based on convenience and just one more client, so be sure to stand firm. Instructors who love this will be highly motivated and lucky enough to have a bit of room to spare!