Bigger Isn't Always Better
I get my hair cut about once every 4 weeks. I used to go to this place close to my workplace that was easy to walk to. I was working in a video shop and also had second job at a big gym as a PT while studying my Bach of Ex Science at University.
I swear the hairdressing salon was no bigger than 150 square metres and had 8 hairdressers, 2 beauticians and a receptionist
working.
With most of the clientele being women (attracting a higher service fee) and using an employee model, he was
probably generating well over $1,000 per hour in revenue.
I said, "Mate, you are literally busting at the seams, when are you guys going to move to a bigger premises?”
His response shocked me a little bit...
He said, "NEVER! I'm going to stay small and take it all!"
They owned the building. Their mortgage was maybe $1,100 a month. They were, and still do generate around
$1,000 per hour and they are open 6 days a week.
This made me really sit back and think.. why can't this be translated to the studio model I was planning on creating? I mean, it was genius right? Low overheads and maximum return.
The rest is history and here we are 12 years later and I have a perfect replica of that salon model (and it didnt take me that long to build!)
Over the years I've been encouraged to start another Studio, or franchise my model and sell it to the masses. This of course sounds great, and when you think about it, could make me a bucket load of cash. But after crunching numbers, looking at effort vs reward scenarios and simply asking myself 'WHY', I kept going back to the simple formula I have created for Fitness Revelation.. it's definitely the most profitable studio I know of (and I've seen a lot of studio's in my time!) and it gives me the lifestyle I desire. It also gave me the time to develop an even better product.. way better than a franchise, where I could reach tons more people too, - my S mart Studio Blueprint!
So, remember: Bigger isn't always better
The rest is history and here we are 12 years later and I have a perfect replica of that salon model (and it didnt take me that long to build!)
Over the years I've been encouraged to start another Studio, or franchise my model and sell it to the masses. This of course sounds great, and when you think about it, could make me a bucket load of cash. But after crunching numbers, looking at effort vs reward scenarios and simply asking myself 'WHY', I kept going back to the simple formula I have created for Fitness Revelation.. it's definitely the most profitable studio I know of (and I've seen a lot of studio's in my time!) and it gives me the lifestyle I desire. It also gave me the time to develop an even better product.. way better than a franchise, where I could reach tons more people too, - my S mart Studio Blueprint!
So, remember: Bigger isn't always better
Bigger means:
- More overheads
- More complications
- Higher utilities
- More equipment
- More furniture
- More flooring
- More paint
- More mirrors
- Charging higher prices to make ends meet
- Higher break even numbers
- Bigger loans
- More to lose
Does it look cooler?
Hell yeah!
Does it feel better?
Not if you are struggling and you are in a 3-5 year lease!
Is it really better?
Did you know that with a 20-30K loan and a 150 square metre space you can generate more than 1,000,000 per year in revenue?
You can have 10 staff all working 15-25 hours per week, and you can hit your break even numbers with just 8-10 people in your high tier programs... Trust me, I know, I've done it!
I found out later that the guy who owns this tiny salon, also has a getaway holiday house down the south coast of NSW and also many other investment properties, all paid for!!
Don't look at all the industry hype and think you gotta have a warehouse-sized facility with 80 clients in each class to be successful.
You absolutely do not!
With 150 square metres or less, 30K in start-up expenses, ($650 per month loan over 5 years) you can be in a facility that could generate multiple six-figure revenue streams.
P.S. I cover all this in my
Smart Studio Blueprint
I break down the foundation, the numbers, the groundwork, the build-out, the tweaking, the dry run, the soft launch and the grand opening of your own facility. Further to that, it supplies you with the systems, automation and software to run your own highly profitable Studio in a matter of months.
If you own a business it's worth a try to see how and where you could optimize. If you want to own one, it's the A-Z blueprint that I have developed based off the back of my hugely successful & profitable studio in Sydney, Australia.
Yours in Fitness Business Success,
Ben Dulhunty
Owner
Smart Studio Solutions
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