5 Signs You're Ready to Open a New Studio Location
No matter how long you’ve owned your studio, if you’ve ever thought of expanding then you’ve probably asked yourself “When is it time to grow?”
Navigating the expansion waters can be equal parts thrilling and daunting, as finding the opportune moment requires a keen understanding of your current market, a vision for the future and a robust operational backbone.
Expansion isn't a cookie-cutter experience but a tailored progression specific to your fitness studio's ethos, customer base and the dynamics of your local community. By examining these five pivotal signs, you'll position your studio for a seamless transition.
Sign 1: You’ve been experiencing consistent growth
A successful expansion begins with a robust foundation, and your current location serves as the bedrock for future growth. Before setting sights on new horizons, it's essential to ensure that your flagship studio is not only thriving but also demonstrating consistent patterns of growth over an extended period.
Ask yourself: Are my profit margins on a steady incline? Has my client base expanded annually? Tracking the number of new memberships versus cancellations offers a good snapshot of your trajectory.
A few healthy indicators that you’re on the right track could be: a steady pipeline of new clients and increased class attendance.
A solid class utilization/occupancy rate should fall somewhere between 70–90% for a popular class that’s been a staple on your schedule for a longtime. Newer classes tend to have lower utilization rates, but your popular classes at peak times should be close to full occupancy.
Sign 2: You feel financially secure
You need a stable income at your current studio before you open yourself up to expansion. While growth naturally comes with a degree of financial risk, you should feel confident and secure taking this next exciting step!
Covering base expenses with a healthy profit margin that is allowing for you to save for a potential down-payment/lease and/or buildout.
Sign 3: You have a strong and reliable team
Your studio is as resilient as the sum of its parts, and your team forms the core of your studio's growth. A reliable group of instructors, aligned with your mission, can translate into successful expansion.
Assess the qualifications and dedication of your team. Do they exemplify your studio’s mission? Have they supported you with your admin? Are they adaptable?
If you can’t answer yes to all of those questions, foster a learning environment that equips your team with the tools they need, and approach teachers who may want to step into more responsibility and take them under your wing.
Having people you can rely on and delegate to is essential because you will need to hire more people to expand, and you’ll need to pass off training and other high-level responsibilities to your trusted team members so you don’t spread yourself too thin—especially during a time of expansion.
If training new instructors is important to you, you’ll need to trust other staffers with more administrative tasks, and visa versa. Plus, you want your team to feel valued and trusted, so giving them more responsibility is a way to show them they’re an essential part of the studio.
Sign 4: You’ve noticed a demand in a new location
Jumpstarting a new fitness studio entails assessing and confirming that there’s a demand for it.
To do this, create and send out surveys, ask your loyal clients and take a look at competitors in the prospective location. Observe the fitness culture – is there a gap you could fill, or would you be competing in an oversaturated market?
If you’re on the fence, compile feedback through digital and in-person surveys to gauge interest. You could even implement short-term fitness programs or pop-up events to assess enrollment potential.
Sign 5: Your day-to-day feels efficient and smooth
To find out if your studio is fit for multiple locations, look at where you are now: evaluate your daily operations and procedures. Are they suitable for an expansion that could multiply their burden?
If the thought of all your management tasks doubling feels too overwhelming, Instead, let’s cover the need for having SOPs in place. What should be included, etc.
It’s also a good exercise to perform detailed assessments on how additional workload (class management, client interactions, etc.) will be handled across locations, ensuring seamless integration.
Being ready to expand can sometimes be a feeling more than anything else, but by understanding the five signs, you're better equipped to make informed decisions and carve a path to successful growth.
Remember, expansion is a journey of strategizing and flexibility. Be ready to adapt, learn and innovate as you usher in a new chapter for your fitness studio!
Telomere Consulting provides business consulting and marketing services to studio owners in the boutique fitness and yoga space. The Telomere team helps you navigate business strategy from conception to implementation. We provide end-to-end marketing support and would love to hear from you. Click here to book your free intro call. We want you to treat your business the way you treat your body – making the right choices now to optimize its potential for a long and healthy life. Visit us here to learn more.
