
How healthy are your finances?
That’s right, we are talking about MONEY today. Regardless of whether you do or do not like to discuss financial questions, we all have a relationship with money.
If you are a Pilates teacher or educator, you need to be paid for the knowledge and experience that you share.
If you are a Pilates or wellness business owner, you need to keep your business financially fit if you want it to survive and especially if you want it to thrive.
In the life of a Pilates professional, where our passion for movement and teaching takes precedence, the financial aspect of running a successful studio often becomes a secondary concern. During my years of working with Pilates studio owners as their website developer, I have unfortunately seen a fair share of studios that had to close their doors because of financial difficulties… It breaks my heart.
If you are a studio owner or are planning to open a studio, I want you to be successful. I want you to make enough money to support yourself and your family. I want you to operate with confidence in your finances so that you can continue changing the lives of your clients for the better. This is precisely why our conversation with Nina Israel of Taryn Financial is invaluable.
Nina is a financial educator, business strategist, and money mentor. She specializes in helping Pilates and Fitness business owners maintain their financial wellness. In the interview, we’ll be exploring the foundational elements of financial management for Pilates studios, covering everything from budgeting and cash flow to the vital steps for financial stability and growth.
Links and Resources Mentioned in the Interview:
- Taryn Financial – Visit Nina’s website and download 20 revenue-boosting ideas for your studio
- Follow @nina_moneygal on Instagram
- Connect with Nina Israel on LinkedIn
- Profit First by Mike Michalowicz
Meet Our Expert

Nina Israel
Nina Israel is an advocate for financial wellness. She is a financial educator, business strategist, and money mentor. She is also a 25-year veteran of making your books make sense to you. She believes that finance should be easy and, more importantly, fun.
Fueled by a passion for wellness, a love of numbers, and an intense desire to help those around her succeed, Nina’s strength throughout her career has been empowering business owners to manage their cash flow better, improve efficiency, grow sales, and reduce costs.
As the founder of Taryn Financial, Nina is deeply dedicated to financial education and uses a holistic approach to help small business owners gain financial clarity, increase their financial knowledge, and develop new confidence in their numbers. Based on her accounting and bookkeeping work with hundreds of business owners, Nina created her innovative program, Strength in Numbers, to help her clients reduce anxiety, achieve financial wellness, and make sense of their money through laughter, learning, and a proven financial system.
Interview Transcript
Table of Contents
There are many expenses involved in opening a Pilates studio. What are the most important financial planning steps to make this new business profitable?
First thing, I want to start with why businesses fail. The fundamental reason businesses fail is a lack of cash flow. It’s essential to recognize that running out of cash is often a symptom of underlying problems, not the core issue itself. Maintaining a vigilant eye on finances is crucial. Here are some small business survival statistics to keep in mind:
- Businesses examining their finances only annually have a 75% failure rate within five years.
- In contrast, those reviewing their finances monthly have a 75% survival rate.
- However, the most successful approach involves weekly financial reviews, which can skyrocket a business’s survival rate to 95% over five years.
When launching a business, creating a detailed budget is imperative. This includes meticulously calculating startup costs, such as equipment expenses, rental fees, service and certification costs, and comprehensive marketing and insurance expenses.
Next, it’s crucial to project potential revenue. This involves analyzing various aspects like the number of classes, one-on-one sessions, merchandise sales, and diverse offerings like corporate wellness programs or workshops.
Once you have this information, focus on optimizing your costs without compromising quality or client service. Skills like negotiation are invaluable here and can be learned if you’re not already adept.
An essential aspect to consider is your break-even point – the stage where your revenue equals your operating expenses. Understanding your break-even point is critical, as it dictates the minimum financial performance required to sustain your business. Finally, securing your initial funding, whether through loans, personal savings, or investors, is a crucial step in this process.
To recap, start with a detailed budget, plan your revenue, control your costs effectively, know your break-even point, and secure your initial funding.
How should you set prices for your services, especially as a new business?
Pricing is not just a financial consideration; it’s a strategic element that intertwines with marketing. It’s imperative to set prices that ensure profitability and business sustainability. However, strategic pricing goes beyond just making ends meet.
The first step is conducting thorough market research. Understand what your competitors are doing, but it’s crucial not to imitate them blindly. You don’t have full insight into their business model, financial state, or strategies. They might be facing challenges unknown to you.
Instead, use your research to identify what sets you apart. Ask yourself: What unique aspects am I bringing to the table? This could be anything from specialized equipment, higher-level instructor certifications, or niche class offerings. These unique elements should form the basis of your pricing strategy, reflecting your unique selling proposition and adding value.
An essential component of pricing strategy is the introductory offer. This shouldn’t be a freebie but a well-thought-out opportunity for new clients to experience and fall in love with your services. The duration of this offer should be long enough to allow clients to form a connection with your studio and its offerings.
Flexibility is key in pricing strategy. Be prepared to adjust and experiment based on market response and client feedback. Adapting to what works best is part of a successful pricing strategy.
In terms of financial preparation for new studios, how long should one plan before reaching a stable financial state?
The timeline to reach financial stability varies significantly among studios. Some studios, for instance, engage in presales and open with a substantial membership base, like 100 members. In such cases, reaching the break-even point might only take a few months.
However, it’s not a one-size-fits-all scenario. The commonly cited six-month timeline is not a guarantee. A lot depends on your marketing strategies and their effectiveness, which can sometimes take around 90 days to start yielding noticeable results.
Financial preparation should, therefore, be highly individualized. It’s crucial to start with as much capital as possible. The source of this funding, whether it’s personal savings, loans, or family support, is secondary to its availability. The level of financial risk you’re comfortable with also plays a significant role. Some might be at ease with a three-month buffer, while others may require more.
Regardless of whether you’re just starting or have been in business for a while, having a financial buffer is essential, especially considering the seasonal nature of our business. There will be peak and off-peak times, and financial planning should account for these fluctuations. While guidelines like three to six months of the financial reserve are useful, the specific needs depend on individual circumstances and available funding sources. The key is to be well-prepared and adaptable.
Many boutique fitness studios experience seasonal ebbs and flows in their business. How do you prepare financially for the “low” times during vacation times or seasonal “migrations”?
Cash flow forecasting is a critical practice that I discuss with all the studios I work with. It involves mapping out your expected revenue and expenses. While this forecast isn’t about predicting the future perfectly, it gives a valuable overview of your financial inflows and outflows.
Key expenses like rent remain constant throughout the year, regardless of the season. By mapping out your financial landscape, you can identify the peaks and valleys in your cash flow. This insight is crucial for effective cash management.
For instance, the ‘Profit First’ method, as outlined in Mike Michalowicz’s book, can be a practical approach. It involves allocating specific amounts for various expenses, helping you structure your finances efficiently.
Particularly for seasonal businesses, it’s beneficial to create a financial reserve during peak periods. This reserve can support you during slower seasons. An example from my experience with studios is when they receive payments for teacher training programs. This income is typically received in installments and can be strategically used to build a reserve for future expenses.
Diversifying income streams is another vital strategy. During slower periods, consider offering unique workshops or renting out studio space. Adjusting your referral bonuses or loyalty programs can also be effective during these times.
The key is to be proactive and prepared, utilizing various strategies to manage your cash flow throughout the year.
To summarize, being prepared and having a strategic approach to your finances, especially in a seasonal business, is crucial for stability and growth.
How do you make smart financial decisions about your business expenses?
The very first thing we need to talk about is your goals. What are you aiming for? Is it to build a sustainable business, to sell it down the line, or to have something that runs itself so you can spend time with your family? Knowing your goal is crucial because it directs where your money should be going.
Take, for instance, when you’re looking at big purchases like new equipment. I was working with a studio owner who had this amazing wish list of equipment. It was a great plan; she was excited about the classes and sessions she would offer. But when we crunched the numbers, we realized it would take her 262 weeks to pay off that equipment. That’s five years! That’s when we had to step back and rethink.
You’ve got to do your homework first. If it turns out that your investment pays off in a reasonable time, like six months, that’s a different story. But what if it doesn’t? Then, you might need to adjust your plans. Like, if you’re heading into a slow season, maybe hold off on big investments and focus on generating revenue through other means.
How should studio owners approach spending in general?
Before any expenditure, ask yourself three questions:
- Will this spending free up my time?
- Will it help attract new clients?
- Will it retain existing clients?
If it doesn’t serve these purposes, reconsider the expense. I get that some expenses, like charitable donations, are exceptions. But generally, every business expense should be aligned with your goals.
Regarding education and certifications – I’m all for it, as long as it aligns with your goals. But don’t just learn for the sake of learning. It’s about taking action, not just accumulating knowledge. If you’re not implementing what you learn, you’re essentially wasting time and money.
And if you’re unsure about a new program, try pre-selling it. Offer a special deal, like a founder rate, for those who sign up early. This way, you’ll see if people are really interested before you fully commit. If they’re willing to invest, great. If not, then maybe it’s time to rethink your strategy.
What is the smartest way to scale a Pilates business to increase its income?
The first thing that I want to talk about is the difference between Growth and Scale. There’s a big difference between growth and scale, and people often mix them up. When you talk about growing, it’s about more – more sales, more space, more staff. But scaling? That’s a whole different ball game. Scaling means you’re making your business more efficient and improving your bottom line.
Sometimes, businesses grow in sales but don’t actually become more efficient. I’ve seen this firsthand. For example, a business with a million dollars in sales doesn’t always end up with more in the bank than a business with $80,000 in sales. That’s because scaling is all about efficiency, not just big numbers.
If you’re looking to scale, especially when opening a new location, your first location needs to be profitable and sustainable. It’s about consistently turning a profit and seeing that reflected in your bank account. And remember, if you need to be physically present all the time for your business to succeed, scaling will be a challenge – you can’t be in two places at once.
So, think “efficiency” when you think about scaling. Ask yourself, can I bring in more revenue without significantly increasing costs? This could be through expanding services or collaborating with other professionals. It’s about smart strategies that increase your clientele without necessarily hiking up your expenses.
And a crucial point – more revenue doesn’t always solve problems. It’s about profitability. It’s better to focus on the profitability of what you’re selling than just increasing sales. That’s the essence of scaling.
And here is one more piece of advice. If your studio has every class packed and waitlisted, before you add a new class, I want you to raise your prices.
How can small business owners plan for their retirement?
Retirement planning isn’t my primary area, as I mainly work with business owners on operational efficiency and profitability. However, for teachers or individuals, you don’t necessarily need a studio to set up a retirement account; you can do it independently. It’s crucial to take control and be accountable for your future and finances.
Finding the right financial advisor is key – someone who can guide you in making smart investment choices. The most important thing? Start right now. The power of compound interest means your savings can grow exponentially over time, and with the current high-interest rates, there’s no better time to start. Whether it’s a small or a larger amount, the consistency of saving is what counts.
Diversification in your investments is also critical. Don’t put all your eggs in one basket. Spread your investments across different areas to balance risk and ensure your financial security. And remember, if you don’t feel comfortable with your financial advisor, if they aren’t approachable or make you feel undervalued, find someone else. It’s essential to work with someone who respects you and is willing to educate you about your finances.
While I can connect you with knowledgeable professionals in this area, remember that your financial planning should always include a portion for retirement savings. It’s an integral part of your overall financial strategy and cash flow forecasting. So, start planning, and make retirement savings a priority in your financial goals.
Managing finances for many wellness business owners feels very overwhelming. Can you share some practical doable steps that can make this important task less intimidating?
Let’s talk about the money mindset. It’s a deep topic, really. Everyone has their own unique relationship with money, and it often starts early, right from how we were raised. Did your family talk about money, or was it a taboo topic? These early experiences shape our attitudes towards money throughout our lives.
If you’re someone who avoids dealing with money, it might stem from the lack of open conversations about it in your upbringing. This avoidance leads to certain beliefs about money, and these beliefs can turn into stories that dictate how we interact with our finances.
Acknowledging and understanding your money mindset is crucial, especially when setting financial goals. I often find that people’s self-worth gets tangled up with their net worth, but it’s important to separate the two. Recognizing this helps in shifting to a more empowering mindset.
Being financially literate is a skill, and like any skill, it can be learned. No one is born a ‘numbers person.’ What matters is finding the right guidance – someone who can explain things clearly and answer your questions. I’ve worked with many who initially felt overwhelmed by finances but eventually gained confidence.
There are many tools out there to help, from apps to software, so it’s not just about staring blankly at numbers. Understanding your finances can be incredibly empowering.
And if you find yourself avoiding financial tasks, try setting up a regular ‘money ritual’ – be it Money Mondays or Financial Fridays. It’s about creating a habit of engaging with your finances.
Remember, you’re not alone in this. I’m here to be your financial friend, your guide through the world of money. Don’t hesitate to reach out if you need help or feel stuck. We all have our financial journeys, and it’s okay to seek support along the way.