Alright – so today we’ve got the honor of introducing you to Caitlyn Sheff. We think you’ll enjoy our conversation, we’ve shared it below.

Caitlyn, thanks for joining us, excited to have you contributing your stories and insights. Let’s jump right into the heart of things. Outsiders often think businesses or industries have much larger profit margins than they actually do – the reason is that outsiders are often unaware of the biggest challenges to profitability in various industries – what’s the biggest challenge to profitability in your industry?

I can’t quite say that it’s hard to be profitable for everyone in this industry, but I think it’s challenging if you’re going about your business in a way that provides fair compensation and low financial barriers of participation. Yoga studios as a whole don’t have a lot of overhead. There’s a lot of capital expenses involved, like getting your blocks, straps, bolsters or even heating panels. Those are a one-time purchase though. So monthly, it’s utilities, it’s rent (which is a HUGE expense comparatively speaking), loan payments and payroll. On the flip side of it, studios typically charge anywhere from $25-30 per drop-in class and upwards of $175 per monthly membership. This should work, right? Eh, sometimes.

Being profitable and fair unfortunately haven’t been easily connected in this industry. Typically, the average yoga teacher is paid $30 per class. Each class is about a 2-hour commitment including the drive time, greeting your students and cleaning up your room afterwards. That’s $15 per hour. Target pays more than that during the holidays. Does it keep payroll lower and make you more profitable? Yes, of course. Low expenses typically mean higher profit opportunities. But is it fair? Personally, I don’t think so. I’m unfortunately not able to pay much more than that at the moment, but the goal is to find a way to pay a more equitable rate to people who truly deserve it. They prepare for hours to hold physical, emotional and energetic space for a room full of people and provide them with the best part of their day. Why shouldn’t they be paid more than the average retail associate rate?
So, in order to be able to pay teachers what I deem to be fair, I have to bring in enough money to support that cause. A couple challenges are posed here. Our studio’s mission is to make yoga accessible, especially financially. We have a sliding scale, asking students to pay what they can, not what we ask. This places immense pressure on the amount of people we have to have coming to classes, whereas, if I were to charge more, I wouldn’t have this much pressure on quantity. Drop-in class income is also unpredictable. So many macro and micro factors affect whether or not people come to a yoga class. So, the goal is to get unlimited members. It’s great predictable monthly income. Unfortunately, it’s not that easy.

When someone purchases an unlimited membership to a studio, it’s because it serves all of their needs. Yoga serves all needs for a specific group of people, but not everyone. We offer a yoga and weights fusion class to combat this thought process, but truthfully, it still won’t work for everyone. Some people need heavier weights or cardiovascular workouts. That’s simply not anything we’ll ever be able to offer, creating a gap in their wellness needs. Typically, this leads them to continue buying one-off classes or class packages, both of which are unpredictable and more scarce.

I’m not saying all of this to say that our industry can never be profitable, because I believe that it can be. One day, I believe that I can pay our teachers at least $60 per class and charge students a lower rate and still be profitable. It requires a buy in of the whole process from everyone involved, but I truly believe it can happen. And I’ll keep working until it does.

Awesome – so before we get into the rest of our questions, can you briefly introduce yourself to our readers.

My name is Caitlyn Sheff, and I’m the owner of The Coterie Wellness Studio in Charlotte, NC. I began teaching yoga in 2018 and very quickly realized that it was going to be my entire career, not a side hustle. Fast forward to October of 2021 when the studio I was working for closed permanently – I knew it was my turn to open something. I couldn’t fathom trying to fit into another community that was already existing, and I decided I would try to build my own. The Coterie opened in January of 2023, and we have been learning and growing so much over the last 10 months. I am so proud of this space because it was built with community at the center of it all. The staff is essentially all of my closest friends, so going to work is definitely not work. People can tell that we are all friends when they walk through the front door. It’s such a warm and genuine welcome each time, and we’re truly bringing you into our inner circle.
Our financial foundation is based on a sliding scale approach, which I really think sets us apart from everyone else. Our studio is situated in a quickly gentrifying neighborhood, so in respect for the socioeconomic diversity, students pay what they can rather than one set price. Our drop-in classes and our memberships are based on the sliding scale, allowing everyone to access the practice no matter what their income is. We’re so honored and humbled to be able to offer this to the neighborhood. It takes commitment, transparency and full buy-in, but we’re making it work one month at a time.

Can you open up about how you funded your business?

To fund my business, I had to access a small business loan. I didn’t have the capital I needed on my own, and I don’t have a business partner or an angel investor, so this was the way I had to go. A small business loan is the only way I was able to start something brand new. Banks require 2 years of financial history, so the SBA was where I had to go. After getting a few no’s, I finally got one yes, which was all I needed. Rigorous amounts of business planning and financial forecasting went in to actually finalizing the loan and receiving the funds. I had to plan everything out by month for the first 2 years of business to even begin the conversation. The loan finalized in August of 2022, and we broke ground on the space in October. It was a very quick turnaround, which caused a little more anxiety than anticipated!

Any advice for managing a team?

I currently manage a team of 32 people, which is A LOT for a yoga studio. We have 17 teachers, 13 front desk associates and 1 social media manager. It takes a lot to reign everyone in, and everyone has their own unique personality. I have had to learn very quickly to set real and hard boundaries on certain things and stick to facts when having tough conversations. I am a true empath, so it’s very challenging for me not to be sucked into other’s emotions. I want everyone to feel good and content and happy, and unfortunately, that’s not always the case. Sticking to facts and having process and procedures has been the best way to help me stay at a distance while managing people who are my friends. Understand that you can disclaim a conversation by stating, “I’m going to take my friend hat off for a moment and solely wear my owner hat, so let’s keep this conversation work focused please.” Offering that disclaimer helps level set the dialogue even before it starts. It’s very hard balancing work and friendship, but it can be done!

Contact Info:

• Website: https://www.thecoterie.studio/
• Instagram: https://www.instagram.com/thecoterie.studio/

Image Credits
photos by Will Jenkins photo company called SimplisticPhobia Instagram @sirwilltheartist