How are cycling studios doing? Spynergy Consulting has aided close to 80 cycling studio startups in the past 2 years. Recently, we conducted a survey of independent cycling (and Spin) studio owners who have actually opened their doors. 43 owners responded to a variety of questions about the startup process and their business issues.
- Half the studios are less than 2 years old, half are older than 2 years
- Most important “success factors” noted by owners: Instructors and Location
- Most effective marketing: 1) Search engine findability, 2) Social media, 3) Groupon, etc.
Question was asked: Do you have a non-spin secondary offering?
- 70% are Cycling only, 30% have a secondary offering (barre, core, yoga, etc.). Note: 5 of the top 6 studios in terms of revenue were cycling-only.
Question was asked: How’s the studio doing financially?
Highly profitable / above expectations: 9.5%
Profitable / per expectation 19%
Breaking even / optimistic 39%
Unprofitable / optimistic 25%
Unprofitable / concerned 7%
Note: This is existing studios. In a separate analysis, Spynergy Consulting discovered a 17% failure rate amongst studio startups within 2 years.
Question was asked: What have been your major challenges?
” getting the word out is harder than expected ”
” runaway startup costs ”
” finding great instructors ”
” competition from cheaper alternatives or the big guys ”
Question was asked: Are you having fun?
More information from this survey will be published in future articles. There is great information in here from actual studio operators…this is not speculation, this is real data. Studio owners face a variety of challenges and have a broad range of results. Monthly revenue for these survey recipients ranged between $2,000 and $90,000. As we have discussed in previous articles, a well-executed studio in the right location with great instructors can be a home run. Is it simple? No. Is it possible? Absolutely. Contact me if you’d like some help getting there. firstname.lastname@example.org