We combed through every boutique fitness studio listing in Southern California to find three representative benchmarks representing three realistic financial outcomes. Their financial data provides a spec for new studio operators to build out their own projections and understand the fiscal realities of different trajectories. So too, for those in the thick of running their studios, these numbers enable you to step back, take stock of your situation and compare it against some real numbers - directing sourced from owner/operators like yourself who’ve decided to part ways with their studio.

We’ll get into each of these listings and offer valuable context for your financial projections and strategic planning.

High Performer | Value $499,000

Yoga Studio in San Diego County

• Gross Revenue: $470,209

• Cash Flow: $204,917 (43.6% of gross revenue)

• Employees: 15

• Gross Revenue per Employee: $31,347

• 200 Monthly/Annual Members, 100 Package Members

• Studio Space: 2700 sq ft

Middle Ground | Value $199,000

Hot Yoga Studio in Roseville

• Gross Revenue: $276,840

• Cash Flow: $72,094 (26.0% of gross revenue)

• Employees: 12

• Gross Revenue per Employee: $23,070

• Rent: $4,836

• Studio Space: 3120 sq ft

• FF&E (equipment cost): $30,000

Small But Mighty | Value $120,000

Luxury Yoga & Fitness Center

• Gross Revenue: $214,312

• Cash Flow: $60,000 (28.0% of gross revenue)

• Employees: 6

• Gross Revenue per Employee: $35,718

• FF&E (equipment cost): $30,000

Key Observations

• Revenue per employee varies significantly, from $23,070 at the mid-size studio to $35,718 at the boutique center. This suggests staff utilization and productivity can dramatically impact a studio's top line.

• Cash flow as a percentage of gross revenue ranges from 26% to 43.6%, with the high-end studio converting over 40 cents of every dollar into profit. Margins are a critical differentiator in this industry.

• Equipment costs don't necessarily correlate with studio size or revenue, as evidenced by the $30,000 FF&E expense at both the mid-size and boutique locations. Carefully managing these investments is crucial for any studio.

• The top-performing studio generates $174 in gross revenue per square foot, demonstrating the power of maximizing revenue from each inch of real estate.

The financial data from these for-sale studios reveals that success in the boutique fitness industry can take many forms, from a small luxury center generating $214,312 in gross revenue to a high-performing yoga studio bringing in $470,209. While there are avenues to significant financial outcomes, they are not always the simplest path. Running a small studio has its merits, including a close-knit community and simpler overhead management. However, success hinges on keeping costs controlled and classes full. Critical metrics like revenue per employee, cash flow percentage, and revenue per square foot should be tracked with a watchful eye.

Whatever the size of your studio, stack the odds in your favor by leveraging data and maintaining disciplined operations. By looking at real,hard numbers and learning from peers' successes and challenges, you can make informed decisions, mitigate risks, and build a lasting, profitable business. While the choice to start or scale a studio is deeply personal, these benchmarks provide the opportunity to reflect on your operation and evaluate where to go from here.