Comments for Nicki Violetti

Comment on Robb talks about the book! by Ian Dirnfeld

Ian Dirnfeld — Sun, 29 Aug 2010 13:57:33 +0000

Looks awesome – cant wait to order it! And of course read it!!
Nicki I have a separate question about the business side of things. A friend and I are in advanced talks to open classes (2 per week for a total of 8 hours per month) at a local martial arts gym here in Israel. We have negotiated no rent, but a 70-30 split with the owner of the gym, who sees his initial investment (he is building and installing the pullup bar, among other things) as an opportunity cost.
My question revolves around the notion of pricing and profitability.
Obviously no one is getting rich right out of the gate, but even in best case scenario modelling, we can fit 15 participants in the box and we are pulling in 3750 Shekels month (about $1000 USD) so he gets about $300 while we split the remaining $700. At $350 each, that works out to about $80per hour.
My question to you is twofold:
1.) Is this in the ballpark of viability/feasability dollars-wise?
2.) What is our next step, since moving facilities will require new expenses not currently felt (rent, for one)

We are both hot to trot on this, but trying to remain cool and collected, and turning to this-business experts such as yourself for advice.
I look forward to hearing from you, both on this and on other subjects.
Best,
Ian

Hey Ian!
A 70-30 split is a great deal and I think you’d be hard pressed to find a better scenario. No upfront costs/recurring overhead on your part and the owner is investing in the necessary buildouts. You don’t need to secure a lease, pay for utilities, insurance, permits, etc. And ultimately you have the flexibility to move, change your mind, etc (unless of course he is having you sign some sort of agreement that you’ll be there for a specified period of time).

A couple of questions: Are you able to grow here? Is there an opportunity as you get more clients to offer more than 2 classes per week if the demand is there?

You need to ask yourselves what you are ultimately wanting? Your own facility? What would be the cost to rent a similar space of your own, and what are the other overhead costs you would be incurring? Figure out what dollar amount that is. How many clients would you need to just pay overhead? How many clients would you need to cover overhead and pay yourselves the $80/hour that you will be earning currently? What does that time frame look like?
You also might want to make sure any verbal arrangements you are making are in writing…

Comment on For the love! Please don’t bastardize the On Ramp! by James

James — Mon, 23 Aug 2010 15:57:51 +0000

Do you prefer to set up your On-Ramps as a seminar or as classes in Mindbody?

We set them up as workshops. This way you can set a particular start date, end date, assign a series to it, assign the instructor, and it prompts folks to sign up for it and buy it online. We use the class tab only for our ongoing classes with no particular start/end date.

Comment on Software with High AKP*: MindBody Online by bigtiny

bigtiny — Wed, 18 Aug 2010 05:35:33 +0000

Wellhub might be another option to look into for studio/fitness software or yoga studio software. http://getwellhub.com/

Comment on Slated 1099 changes by danny

danny — Tue, 17 Aug 2010 23:59:29 +0000

gotta love the smell of bigger government.

Comment on Employees vs. Contractors in your Microgym by Dave

Dave — Tue, 17 Aug 2010 03:14:57 +0000

Amen sister, you even got the legal stuff spot on. Great advice.

Comment on Employees vs. Contractors in your Microgym by Adam Kayce

Adam Kayce — Mon, 16 Aug 2010 16:04:59 +0000

Excellent article (and timely!). These are all thoughts running through my mind these days, as I approach opening my own place.

This blog really is an amazing resource – thanks for all you do here!

Comment on To Sublease or Not to Sublease by Angela

Angela — Sat, 14 Aug 2010 21:04:41 +0000

Thanks. Been on vacation past few weeks. Just posting a comment to say thank you.

Comment on Employees vs. Contractors in your Microgym by Edward Stedman

Edward Stedman — Fri, 13 Aug 2010 20:05:24 +0000

Nicki, really good post. Great insight for us working to build out of being a one-man/woman show. I know a lot of people are protective of their systems for how they structure the payment of their employees, but can you offer any specific guidance and systems in a future post, or can you recommend where to track down this info. I know there are many different ways to structure paying trainers that are employees, but I’d like your take and favorite methods.

Thanks,
Edward

Comment on Sales Alone Do Not a Healthy Business Make by Xi Xia

Xi Xia — Fri, 13 Aug 2010 05:15:30 +0000

Hi Nicki,

In your opinion, what is a healthy margin between monthly revenue and monthly expenses?

Hey Xi Xia!
A business should always be looking to increase revenue and minimize expenses. Obviously the larger the net margins the better position you are in. The net margin should be after operating expenses and owner salary, manager pay, etc…so it’s essentially reflective of how profitable you are (net margin = profit before tax divided by gross profit which is gross revenue minus labor or cost of goods sold) I don’t think there’s any “magic” number there…first you strive to make that number positive before any owner salary, then you strive to make it large enough to cover owner salary…then you strive to keep that number growing in a positive direction. This is a case of bigger is always better

Comment on Slated 1099 changes by alliantgroup

alliantgroup — Thu, 05 Aug 2010 17:50:30 +0000

In 2012, the health care reform law will require ALL businesses, governments and charities to issue 1099 forms to vendors they pay over $600 for goods and services. This will undoubtedly financially crush thousands of small-and-medium-sized businesses who work for these companies. Read alliantgroups’ (www.alliantgroup.com) Dean Zerbe’s take on the 1099 burden and where its repeal currently stands in Congress and the administration. http://bit.ly/cG7USr