I've been doing some consulting with potential cycling studio start-ups and a common question has been; should I consider leasing vs. conventional financing / paying cash?
My feeling is (to use the expression) Cash Is King for any small fitness business. If you listen to any of the past interviews (you'll find them here) I've done with Indoor Cycling Studio Owners, there are two common themes that keep coming up:
Studio build out and equipment costs are always considerably more than what's initially forecast in the business plan.
The business's cash flow doesn't ramp up as quickly as forecast.
Does it make sense to lease your Indoor Cycles… and possibly some of your other upfront hard costs like the audio/AV system, computers, technology PIQ/Spivi and possibly your studio's website? Saving your available cash or line of credit to carry you through a slow start (or surprise expense) maybe a good strategy. But it's a rather complex question to just offer a simple answer.
So I've found a fitness equipment leasing expert and I have an interview scheduled with him for this Tuesday Nov 4th. I met Joe Schmitz from F.I.T. Leasing at the past IDEA fitness conference and felt very comfortable talking with him. He's been in the equipment leasing business for a long time and he's agreed to help me explore the ins and outs of leasing.
When does leasing make sense for a new studio – or an existing studio looking to upgrade to new equipment?
When doesn't it?
Should I lease my indoor cycles directly from the manufacturer?
What other costs can be included, besides new Indoor Cycles?
What is the approval process?
Is it more difficult to get approved for a lease vs. a bank or SBA loan?
What documentation will you need?
Is there anything you want to do, or prepare for, in advance of needing your lease funds?
What happens at the end of the lease?
Explain any tax benefits of leasing vs. conventional financing or paying cash
Do you have specific questions you would like me to ask Joe? Let us know by Tuesday Nov 4th 10:00 central.
This interview will be published by Friday next week.
Please use the contact form below to explain your questions with as much detail as possible. Also include additional methods of contacting you if you'd like a personal response.
I can't remember ever talking to a new studio owner, who didn't express the dream to open & own a second… and possibly a third studio once their first was established.
Which raises an interesting question…
When is the right time to open a 2nd studio? And should you?
Studio Owner Nancy Katinas owns The Revolution, a pair of Indoor Cycling studios in upstate New York. She joins me to share her thoughts and experiences about how she and her partners built their first profitable studio. And then opened a second a few years later.
What about Instructor exclusivity? Dennis Mellon share his thoughts from the Instructor's perspective last week. Be sure to catch Nancy's explanation of her studio's policy – one that I found pretty gutsy as it takes a bunch of confidence to pull off.
If you're interested in learning about franchising options for opening an indoor cycling studio – we have a podcast you should listen to here.
Great stuff here for any current (or future) studio owners!
As you hear in the interview, despite not having Indoor Cycles with power indication, Nancy is a fan of Performance IQ – she's using PIQ's heart rate display training system with great success. Here's a few of her participants sharing their thoughts.
I'm on my way to Chicago for Club Industry 2015 to show off the new Stages SC3 Indoor Cycling bike. Cameron Chinatti and I will be leading a bunch of free training session, if you're in the area please stop by and ride with us. Here are class descriptions and registration links:
Here are the descriptions and form links to register for each:
8:30-10:00 – Oh no! Not the Power Police – Led by Cameron Chinatti: It’s official: consoles and power measurement for indoor cycling are here to stay. But with every new piece of equipment comes ‘creative’ misuses and abuses. Avoid getting caught by never committing a crime in the first place! You’ll learn the most common crimes against consoles, then get ready to ride as we explore our top-ten best power practices. These Simple Setsâ„¢ will give you hours of new ride content and provide priceless aha! moments for your participants. Join Stages® Indoor Cycling to see how easy it is to use today’s data to achieve tomorrow’s goals.
Register for the 8:30am session, here: http://goo.gl/forms/FBrFLLtvkZ
11:00-12:00 -Head Up to Get Down! – Led by Cameron + Dennis Do you want to know that you’re doing exactly the right amount of effort? Join Stages® Indoor Cycling for a ride with our Special Edition version of Performance IQ Heads Up Display, better known as Stages IQ. A quick 3-minute assessment is all you need to determine your Power Rx – the most important piece of ride data you’ll ever need! For the first time ever your entire class is doing exactly what they need to get better and see the results they’ve always wanted.
Register for the 11:00am session, here: http://goo.gl/forms/9UKtDmYUTs
1:30-2:30 -Show Me – Led by Dennis Mellon
If a picture is worth a thousand words, then a video is worth a million! Since the inception of indoor cycling, instructors have been talking and talking in an attempt to set the scene for their riders' indoor journey. Let’s stop talking and start showing! What is the speed of a sprint finish or the increased pulse of an epic ski run? Let’s dance to the beat of your favorite artist and experience the POWER of your favorite band playing a live concert. Through the use of video and the new Stages SC3 Eco Screen there is no course that cannot be ridden and no metric that cannot be evaluated to take your riders on the most epic fitness journey ever!
Register for the 1:30pm session, here: http://goo.gl/forms/ggYUrTXEor
3:30-5:00 – Oh No! Not the Power Police + SIQ – Led By Cameron Chinatti
It’s official: consoles and power measurement for indoor cycling are here to stay. But with every new piece of equipment comes ‘creative’ misuses and abuses. Avoid getting caught by never committing a crime in the first place! You’ll learn the most common crimes against consoles, then get ready to ride as we explore our top-ten best power practices. These Simple Setsâ„¢ will give you hours of new ride content and provide priceless aha! moments for your participants. Join Stages® Indoor Cycling to see how easy it is to use today’s data to achieve tomorrow’s goals.
Register for the 3:30pm session, here: http://goo.gl/forms/4Mwxd6UTXB
I'm most excited for my “Show Me” class where I'll take riders through a power based class where the focus will be on the metrics available on the SC3's console as well as the various videos on the screen. It will be a multi-media power party!
Below you will find the videos I'll be using for this class. If our stereo has a “Record Out” output I'll record the class and share it in a future post.
[wlm_private ‘PRO-Platinum|PRO-Monthly|PRO-Gratis|PRO-Seasonal|Platinum-trial|Monthly-trial|PRO-Military|30-Days-of-PRO|90 Day PRO|Stages-Instructor|Schwinn-Instructor|Instructor-Bonus|28 Day Challenge']
The USA Women won the World Cup finals in soccer yesterday!
The US team coaches are using heart rate training, aka Heart Zones Training, extensively in their preparation for what lead to this victory.
I wanted to share with you an article released yesterday about how that training is accomplished using training load points and player position specificity – and comments that I made in that regard in the article. You can read it here.
While members of the U.S. team will no doubt play their hearts out during the Women's World Cup final against Japan, a coach on the sideline will be receiving real-time data about their actual hearts.
Credit forward-thinking coaches who embraced sport science to improve performance: Each U.S. player wears a heart rate monitor — not unlike one you'd find at your local sporting goods store — when she trains and plays games.
But what makes these special is where the information goes and how it's used. Whereas a commercial monitor (or “wearable”) is designed for information to go to a wrist unit, an iPhone or iPad, and be used by the individual, for the U.S. women, there is a receiver that simultaneously collects the heart rates of 28 athletes to be analyzed by a coach.
[That “receiver” is the same as what's used to connect participants to the Display Training systems in cycling studios – John]
“What evolved [with the technology] was the ability for coaches to not only record the data, but be able to see it live,” says Josh Simonsen, a training specialist for Polar, the company that supplies the U.S. team with its heart rate system.
The data shows how hard a player is working, and can help a fitness coach determine everything from individualized training programs to deciding how much rest a player needs after a tough game. “If you take the women's national team, they're all fit. But it comes down to what type of fitness each player has,” Simonsen says.
What type of position an athlete plays also makes a difference, explains Sally Edwards, a heart rate expert and founder and CEO of Heart Zones, a fitness technology company. “In team sports, each player's position has unique physiological requirements, so the forward on a soccer team has to have different training than a defender,” says Edwards. “Some positions might need quick acceleration. Others might need endurance late in the game.”
With the use of sensor technology, a training program can be tailored to each player to make the fit even fitter.
If you'd like to learn more about this technology and how it could improve your team's performance, Use this contact form to request more information.
Sally
Sally Edwards, Founder and Head Heart
Heart Zones, Inc.
John, I feel we need an official organization of Cycling Studio Owners + an annual conference where we can all meet and learn from each other.
I've heard this dozens of times from Studio Owners, including this past IHRSA and last month at our Full Psycle/PRO PIQ training in Chicago.
That's a great idea, I would say repeatedly, followed by; So who's going to organize it?
Well… you are John – always said with a big smile 🙂
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There's a simple sales technique that's called; If I could… would you? The purpose of this exchange is to confirm if a person's question (do you have this in blue?) is conveying actual interest. Your open ended response is designed to understand more, keep the conversation going and possibly gain an early commitment (if I could get you one in blue, would you purchase one today?).
An example of using this at your studio:
Customer question; do you offer a “beginners” class for new riders?
Your response; If we could offer a “beginners” class… would you come?
Notice how responding directly; yes, we have a beginners class, doesn't have the same effect? That response ends the conversation and now you're left waiting for your customer to offer more.
An alternate response to this (if you have an existing beginners class) might be; yes we do – Wednesdays at 9:00. If we have an open bike, can I count on you being here to ride it?
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So back to the original question:
If we organized a meeting for Cycling Studio Owners…
…would you join us?
Now I understand that isn't nearly enough information to say Yes, or No. You'd need more detail. This would be open to Owners, Managers and prospective fitness entrepreneurs. We have some early interest from a number of potential sponsors and have scouted a possible location. Here's what we've found:
At an upscale hotel in Stamford, Connecticut > very close to NYC and LaGuardia airport – the east coast has the highest concentration of boutique studios.
Rooms are only ~$110.00 a night.
We're thinking about meeting over two days, during the third week in August > that dead time, after youth sports and long before Labor Day.
Having hosted two ICI/PRO conferences, I know that events like this are a huge undertaking and will be very, very expensive. Beyond your tentative Yes/No, I probably will/won't participate, I have a bunch of additional questions for you:
What are the best days of the week for this?
What should the format be?
What would you like to learn, see, experience?
Does it make sense to establish a formal Studio Owners organization?
I've created this survey to collect your responses.
If, or how, we proceed will depend on what you tell us!
