Business Entrepreneur Interview

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Great Student 1 BUSE 100 Professor Fredericks 16 June 2020

Informational Interview Assignment

Interviewee: Sandy Feet Business Name: Beach Area Yoga Location: San Diego, CA Relationship: neighbor The questions are highlighted in yellow below and Sandy’s answers are underneath each question. My summary of what I learned is after the interview. What is/was your business?

 I teach yoga classes, now on Zoom. That’s my preferred way to teach. Once and a while I also teach at local gyms, community parks, and sometimes at client’s homes. When I teach off-site, I must follow their rules, but can teach whatever style of yoga and content I choose.

Follow-Up Question – Why is Zoom your preferred way to teach?

 Creative control for sure. I can teach what I want, when I want it, and do whatever I feel is best to do. If I’m teaching somewhere else, I have to follow their rules and flex around their needs. They might say, “We want you teach this style of class”or “That’s the only time we have for you. Take it or leave it.”

Follow-Up Question – What’s the hardest part about teach with Zoom?

 Keeping loyal customers coming back. Things change in their lives all the time…they are returning to work, changing jobs, have kids at home, or maybe are running out of money. To manage that, I offer Zoom Yoga packages. They pre-pay for a specific number of classes and can join anyone’s I’m holding. That provides me with income in advance, gives them complete flexibility around their schedules, and keeps people coming back.

Why did you want your own business?

 To make a living. It was easier than always working for somebody else, having more flexible hours. My business was out of my home, more chances for working. When you work for a studio, you’re at the mercy of the classes they want to give you. Being self- employed, you work as much or as little as need be. I wanted control over the schedule and the content—don’t have to be in their parameters of teaching—teach what I want, how I want.

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Please tell me the hardest part about being self-employed? Why?  There’s so much to learn and keep track of. My friend has a yoga studio. And just

realized that she’s been in the red for about $400/month for about a year. There’s a lot to deal with.

 I know—I have my spreadsheets. My husband is my admin guy. I have a monthly fee I have to pay to Zoom, and I calculate my sales and expenses every week to make sure I’m coming out ahead and getting what I’m worth, but also to be sure to keep costs down.

 I have had the same people for 4 months and they pay every time.

Explain ways you have balanced your business and personal time, what worked and what didn't.  That is a work in progress. When I had an in-home studio, I didn’t have that balance. I

was doing too much—seeing clients out of my house and having retreats. You get a text from someone and you answer right away because you want to. I burned the candle at both ends and couldn’t separate the two, so I was 90% working if not more. When I moved, I started finding the balance better. The difference was not having clients come to the house. I always felt like my house had to be perfect, the studio had to be clean. Using Zoom means I have to keep my home studio space clean. Nobody comes to my house anymore, so it’s less hassle than keeping the whole house ready for guests. When I teach off-site, I just carry my equipment with me. Now when I’m home, it’s easier to “turn-off” business in my head and just be home.

Are you growing as fast as planned, simply steady, or declining? Why is that happening? What are you doing to manage that?

 I’m growing and it was happenstance. I was already teaching on Zoom when the COVID- 19 started. It happened so fast, that I didn’t really even need to market more. People found me, plus they could be anywhere in the world. While everyone else is claiming they are suffering from the “shut down”, I’m having the best months I’ve ever had. My goal is to keep that going, even when things loosen up and people can return to the gym. Really? Who wants to drag all their stuff with them to a gym, work out with a bunch of other sweaty people breathing hard, and then drive back home? It’s so much more relaxing and time efficient to work out right at home.

 When gyms first reopened, I lost a class because someone with more seniority took it back, so my students asked me to do a Zoom class on Thursdays. I said we would do it one time, and I gave them the Zoom link and PayPal information and 14 people signed up. I was not expecting that. It was also a few who hadn’t been taking my regular classes. Most of them are my yoga people who have been with me since February and then there’s some who were on an email list. Was that unethical? I don’t really know, but I feel like I got the shaft when someone else took that class from me. One person in that gym class was also taking a Zoom class with me. She’s the one who told everyone about my online classes.

What do you know now that you wish you knew when you started?

 That an in-home studio or my own brick and mortar location is not right for me. I didn’t like it. I was good at it, but I wasn’t able to structure myself and have boundaries. I worked way too much. I am too much of a perfectionist. Success doesn’t just happen. There’s a lot of footwork and effort, and this is different. This new business model isn’t

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as intense because people aren’t physically coming to the house and I don’t have retreats. I don’t have to run the facility anymore. I’ll never have my own location again.

Was there a time when you wanted to quit, and what did you do to keep moving forward?

 Suck it up and push forward. Quit whining and doubting. Put your head down and go to work. Crunch the numbers. Charge what you need to to pay the bills and pay yourself. Keep marketing, marketing, marketing. Take classes to learn how to do all the online stuff and how to think like a business owner. Get down and do all the work you don’t want to do too...bookkeeping, returning phone calls to people who are simply searching and searching for some magic solution, do your research to keep your knowledge and skills up.

When did you know you needed to make a change?

 Probably the second year going into the third year. My clients take yoga for life balance and relaxation and I was wacked out! I didn’t have the balance my clients wanted. They wanted more so I gave more and it didn’t stop. I was giving 110% and I got burned out, big time. I was doing retreats and private clients. It became work. The enjoyment of teaching got lost. It’s hard owning your own business. I’m watching my friend right now with running her own studio, and with COVID, it’s a lot. I don’t think I would want that responsibility. Not right now.

How do you acquire new clients?

 Marketing and word of mouth. Marketing via email—get email addresses from people. If I’m in a public event and around other students or teachers, I ask if they want to be on my email lists—gym friends, southern CA, mainly take yoga, and I market to those email addresses. I have a website. I use Facebook, but I don’t get a lot from it. This is really relationship marketing. People sign-up with me because someone they trust tells them about me. I market myself without being pushy, over the top, icky.

Follow-Up Question - How do you use your website?

 I have people sign in on my website and I blog once a month. They make payments, sign up for a series of classes, videos, it has my class schedule, photos, Zoom live icon which shows past videos they can buy, what’s coming up, recipes, music playlists. I keep them engaged and make them feel important, that each person is important to me-I try to make everybody feel that way.

Follow-Up Question – Wait! Did you say you sell past videos?

 Sure. That’s more revenue for me. People want to review yoga moves and practice at home. Since they pay for them, I don’t really care if they share them with others too. That’s just another way for me to reach more people. They’ve been asking for music playlists too. I haven’t done that yet, because there are some royalty and copyright issues with selling someone else’s music. I’m researching that now online and it’s not looking like a smart thing to do.

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Have you ever thought about expanding? If so, how would you do that?  Fleeting thoughts. My industry is very difficult, very hard to stay above water. I’ve

walked by shops and sometimes I’ve thought about renting a space, but then I always go back to the math and what I would have to charge. Watching the industry, it’s not easy to make it. If you break even as a yoga studio, you’re doing pretty good. One way I could expand is to sell more stuff…clothes, candles, maybe make my own books with moves, recipes and more. I’ve thought about a booklet that’s progressive…week 1 do these moves, eat this, listen to this….something like that.

Have you made any business blunders? If so, what were they and how will you prevent those in the future?

 There’s still an ongoing blunder—I still don’t charge enough. Another one was letting the client control me—that I’ve learned. I had a former client who took me for granted. Sometimes I forget that I’m in charge. I still don’t hold the concept that I’m in charge. I can change how much I work. I don’t have to necessarily cater to the client. You have to balance being nurturing without giving up your own values, integrity, and time—that’s not factored into what I charge the client.

How long did it take you before you saw a steady income?

 That was almost immediate. I started right into private clients and yoga retreats and it took off. But, I didn’t have any rent and used equipment that I acquired over the years

o It was about $5K to redesign the studio space. That went against what I was earning, but that probably took several months to pay off—at least 6 months

o I didn’t redesign the studio until several months in  I made a lot more than I was working at other people’s locations—about 5x more  When I rent out space to teach a class or have a private lesson at a gym or elsewhere,

about 40% of what I earn goes for the rent. It doesn’t make sense.

Follow-Up Question - Do you raise prices then?  No—I just try to avoid doing that. The only time it financially works for me is if I have a

small private group. Sometimes friends will have a “girl’s night out” or something like that. I only have one club that charges me 20%. They’re doing that because they know I’m bringing clients into their place that they wouldn’t capture. They’re thinking I start having repeat sessions at their location. I might work on that relationships a bit once the pandemic subsides. I need to negotiate with them, to pay them after a session there and not before. Plus, right now, they want me and my clients to sign a COVID waiver to operate during the pandemic. Frankly, people do yoga to relax. Signing a COVID waiver on the way in-the-door is not relaxing.

We’re running out of time. Is there anything else you’d like to add?

 Know when to shut it off if you want to be a businessperson. Otherwise it’s 24/7.  For the pandemic—it’s been difficult to teach people how to use the technology, Internet,

Zoom. After people got on board and it’s been easier. People that I didn’t expect are now able to log-in to Zoom and join me.

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Do you have any pearls of wisdom for a new business owner?  Business plans are very important and understanding how to much to charge to pay

yourself. Really having that financial stuff organized and not just flying by the seat of the pants because you think you’re having fun and doing a great job. You’re fooling yourself.

 You need to be consistent. Your clients should be able to rely on you to be there. I’m held accountable. They’re held accountable. It’s a mutual relationship. They need to feel like you’re there for them for whatever service you’re providing, and on the same token, making sure you set the boundaries for yourself.

 People like routine. These classes will be there at the same time every week. Once that yoga trainer starts getting subbed out all the time, clients don’t want to go back to that class.

 Make them feel important, their time is valuable. Yes, they are paying me, but their time is valuable and they are important, too.

 Tell them how much you appreciate them.  I hate how the gym specials are always for the new members. I like to give price breaks

to people who are consistent members, but in my industry that’s not the motto. It’s always the new person, not the long-term clients. What are you being rewarded for showing up? I always try to incorporate something like that. Or I’ll give them the music or video link for the class for free.

 Flat out tell them “Thank you for showing up.” Summary of what I learned: In our book we learned about many traits that entrepreneurs typically have. Sandy had some of those, but not all. The main thing I learned in this interview is that a small business owner has to figure out if that life is really for them. Sure, owning your own business gives the freedom, to take control of your finances, and to follow your own set of rules; however, there are lots of downsides to owning a business. You are completely on your own and responsible for everything. There’s no time-off. If you don’t work, you don’t make money. You have to be self-reliant and be able to problem solve when your business has ups and downs and unforeseen problems arise. I think most people go into business for themselves with high hopes and dreams of becoming rich, but I’m betting most people are just creating jobs for themselves. Those people you read about who “start a business in their garage and make millions” are one-of stories. Starting and owning a small business is risky. It requires someone with not only confidence, but also resources, and a back-up system like family members with jobs, or a job that is open for them if they need it. This interview was eye opening. When I think how it took Sandy almost 3 years to learn that she needed to make serious change and close her studio…then she made the changes, then COVID happened which was actually great for her. It’s mind boggling.