Live Your Dream: 7 Lessons to 7 Figure Studios with Lise Kueker and Maura Vella

Struggling to live your dream and take your studio to the next level? Then this article is for you! With these seven lessons from experts Lise Kueker and Maura Vella, you can make your business a seven-figure one!

Just who are these remarkable women? Lise Kueker and Maura Vella have been part of WellnessLiving’s extended family for quite some time now. Because we value their expertise so much, they were our inaugural guests on our exclusive, Live Your Dream webinar back on June 11th, 2019! This series is dedicated to giving you the chance to learn from professionals in the industry, as they are interviewed by our very own founders, Len Fridman and Sasha Davids.

Lise’s specialty is taking businesses to the next level! As the founder of Studio Grow, she has helped over 42,000 studios in the health and wellness industry scale their business over the last fourteen years. With parents as entrepreneurs, molding successful companies is in Lise’s blood. One of the establishments she helped grow, is none other than Maura Vella’s hot yoga studio, 105F!

Maura, is the co-owner of three studios in Chicago, and with Lise’s help, her business has blossomed. Maura enjoyed working with Lise and her team so much that she decided to join them and is now a business coach herself! She has also built a game-changing teacher training program for hot yogis in the industry.

There’s nothing these amazing women can’t do! Ready to learn the secrets behind their success? Read on to find out how to catapult your business!

7 Game Changing Techniques to Grow Your Studio

The first episode of WellnessLiving’s Live Your Dream series focused on the seven lessons to seven figure studios! With these seven lessons, you’ll see your studio grow and thrive! Let’s get started!

1. Find the right business model

Having the right business model is pivotal if you want to run a flourishing studio. Lise Kueker gives us the details about the different types of business models and how to find the right one for you.

The first is the Traditional Model which is selling one key service for a fee (e.g. a yoga studio with only class offerings). The second is the Wellness Center Model, where a range of services are added onto what you already do. “Here, you can get everything, all at one place,” says Lise. For example, if you own a Pilates studio in the Wellness Center model, you may choose to incorporate other options such as chiropractic sessions, naturopathic treatments, or holistic wellness options. The third is the Medical Model, which is reserved for niche markets. “This will help you grow at an intense pace, because you’re the only place in town that does this,” says Lise. The final model is the In-Home Model, where entrepreneurs have given up the conventional brick and mortar business type to offer services in home, direct to their customers.

Lise advises entrepreneurs to ask themselves how much they want to work and how much they want to earn to find the business model that suits them best. “What is your end goal?” says Lise. The answers to these questions will help you choose the model that is perfect for you!

2. Think about your profit margins

Your profit margins are truly one of the most pivotal elements to help you achieve seven figure status.

According to Lise, you must follow a standard service model: 30% of your business income goes to your employees and 30% is for what is known as “overhead”, which includes rent, marketing, utilities, etc. Another 30% is reserved for your profit. Finally, the remaining 10% is what Lise affectionally calls “the gravy on top”. This is what is left over, which you can use in whatever area of your business you may need.

Using this model, Lise was able to take one of her first clients in Southern Florida from a 6% to 47% profit margin in three years!

But how do you set your profit margins? “Setting your ideal profit margins depends on two major things, said Lise. “The first is how much you’re willing to pay your employees and the second is how much you need to pay on fixed expenses like rent.” The important thing here is to be transparent about your costs, whether it’s to your landlord or clients. With your targets set, Maura advises business owners to be honest with clients and have a heartfelt conversation with them about changing prices or memberships and even talk to your landlord about negotiating costs. With such transparency, you are now building a stronger relationship with these individuals who are now partners on your entrepreneurial journey.

3. Calculate your average client monthly value

“The most important number in your business is your average client monthly value,” says Lise Kueker. This is essentially what a client is worth overall to your business per month, whether they are a new client or life-long members.

Lise explains the way to calculate this figure is to divide your total revenue per month by the total number of people who walked into your studio at least one time. Remember that studio in Florida that we mentioned earlier? Lise helped them raise their average client monthly value using her expert strategies, and the results were astonishing! They decided to change prices for their private one-on-one sessions and changed their policy where clients pay for all sessions whether or not they attend them. With this simple shift, clients cancelled less and made up the sessions they lost.

Not only does this help your average client monthly value, but it boosts your clients’ results as well! Now they are on the road to accomplishing the goals they have set for themselves because they are going regularly to their classes. Maura Vella also states that this creates a deeper connection with your clients, because they are seeing the physical results they came to you for. “Now you have more than just a transactional relationship. Now you guys trust and count on each other,” says Maura.

4. Set the right price for your services

“If you get your pricing right, your business will thrive,” Lise tells us. Born into a family of entrepreneurs, pricing is in her blood as she learned everything she needed to know from her father who was in the restaurant industry.

There are four things you must consider to create prices that will fit your business. The first is decide on your anchor pricing. This includes the most expensive item or service that you offer, which is often the least requested, and the second most expensive service which is typically the most requested. “This will let people know that you are someone of value and this frames every other price as being a bargain,” says Lise. Secondly, understand how your clients are using your facility before you decide on prices. Are clients coming in once a week for a private session or five times a week for a membership? Analyze how people are using your services before making decisions such as offering private and small group training or larger membership packages. Thirdly, what downsell options will you offer? What options can you move clients onto if their current program isn’t working for them? Finally, you should know your numbers well enough to educate your clients and make them see how much they’re going to save if they use your studio the way they should, with a program that works for them.

Following these expert tips, Maura’s own studio went from 80 members to close to 1,000 members in just 15 months after changing their prices!

5. Achieve high conversion rates

Many business owners believe that the reason their clients aren’t converting is due to a marketing issue. Lise Kueker explains that this is not always the case.

The industry average in group-based studios from cycling and boxing, to yoga and Pilates for committed memberships is between 7-15% of total customers, explains Lise. For small group training and private training, averages are around 30%. The benchmarks that you should strive for, for a 12-month committed membership or recurring revenue program, are 40% for group-based training, 55% for small group training, and 66% for one on one sessions.

Many people believe that these numbers are extremely hard to reach, however Lise explains exactly how this can be done. “You have to take the time to walk clients through the membership programs you offer on a deeper level,” she says. “Learn about your clients’ needs and keep them in the door using the right membership for them. Remember, a specific membership won’t apply for all clients.”

Maura Vella’s conversion rate was only 3%, however with Lise’s help it skyrocketed!

Make sure to connect with them and ask them questions. Lise also mentions that it’s important to make sure your front desk staff has “a complete automated task list”. For instance, if someone is coming into your studio for the first time, they must be welcomed and your staff must go the extra mile. Finally, learn what your clients’ real goals are. Lise explains that it’s not always related to physical aspects like weight, but it can also be emotional elements like being more present or removing themselves more from social media. Be the business that gives your clients exactly what they need to accomplish their goals, and they’ll stick with you for life!

6. Give yourself a sense of freedom

The key to attaining a sense of freedom is found in your team. There is immense value in the people you work with, so it’s essential to hire the right people.

A mistake that many entrepreneurs make is that they hire for certification and experience, rather than attitude. Lise tells us that you need to find people who will be loyal, extremely engaged, and excited to change people’s lives. She finds these people by having a unique hiring process. After receiving a resume, she sends the potential candidate an automated questionnaire which they must complete in 48 hours. If they complete the survey in time, they are asked to complete three tasks, such as uploading a video about themselves on Youtube or completing a typing test. This will help you see if this person is willing to make the effort and go above and beyond for your business.

If they pass this initial stage, they are interviewed over the phone for 15 minutes. Candidates are then narrowed down to three and they are interviewed in person by Lise herself and members from the community that she respects.

7. Build to scale

“Your job as the CEO is to work yourself out of the job,” says Lise. Growth is essential for your studio, but how do you know when you’re ready? Lise says that if your business can continue to be profitable if you walk away for a month, then you’re ready to scale even further.

Be cautious with your profits and use them to fund your growth, Lise advises. Once you have gone as far as you can with your current business model, there are two models to consider to help you scale. The first is the Expansion Model, which is very similar to the Wellness Center Model, which we mentioned earlier. By bringing in more services, such as holistic services, chiropractic options, and more, you can be the go-to spot for people in your industry! There’s also the Extension Model where you can start to build a teacher training program or online course, which you can one day license or franchise. Take advantage of your business’s uniqueness and share it with the world!

The only way is up, with Lise Kueker and Maura Vella!

The Bottom Line Is…

Building a successful business is now not just a dream but a reality with Lise Kueker and Maura Vella’s expert tips. Live your dream and take your business to new heights!

WellnessLiving would love to be of assistance on your journey by helping your business with our dynamic business management software. Interested to learn more? Book a free, no commitment demo today and learn how we can simplify your workflow, boost your brand, increase your client retention rates, and more!