Setting up a studio from scratch

With a combined two decades in the Pilates industry, Ash and Rob believed they understood what it took to run a successful studio. With Rob’s experience managing busy reformer studios in London and Melbourne and Ash’s decade in dance, they seized the opportunity in 2017 to transform the iconic Balance & Control studio in Richmond, Melbourne, Australia into their own venture, Movementality. Their journey was filled with excitement and hard lessons, ultimately leading to a strong brand and a close-knit community.

After seven successful years, they decided to relocate to Perth for better work-life balance and family support. Starting anew in a city with no clients or established network presented fresh challenges that required a new mindset. Through their experiences, Ash and Rob learned valuable lessons about launching and sustaining a Pilates studio. Here, they share those insights to help others, whether you’re starting from scratch or stepping into an existing space.

Lesson One - Know how you want to leave before you start:

It might sound odd, but thinking about your exit from the start is crucial. When we opened Movementality in Melbourne, we didn’t have an exit plan, which made closing down much harder than it needed to be. When choosing a space, we learned that it’s not just about the initial setup but also the cost and hassle of leaving it when the time comes. For example, make-good clauses in leases can be tricky, and without clear terms, landlords may make unreasonable demands – a lesson we learned the hard way. This time around, we factored that in and chose a space that required minimal fit-out, knowing that it would make leaving easier later. It’s vital to get solid legal advice upfront, so you’re prepared for both starting and exiting smoothly.

Another thing to note is that selling owner-operated businesses like ours that focus on small group sessions can be challenging. We learned important lessons when considering closure versus selling. First, it’s crucial to establish a recognisable brand separate from the owner’s identity. Additionally, the business should be easily replicable, have strong membership potential, and offer unique services that aren't easily copied. These factors can significantly influence a potential buyer’s interest. While remaining actively involved allows us to control our schedules and content quality, it also limits the business's continuity unless we bring someone in with the explicit goal of taking over in the future.

Lesson Two - Understand your lease:
Commercial leases can make or break your studio. Before signing, it’s important to understand key elements like rent-free periods, options to extend, and the terms for breaking the lease. For instance, a common expectation is that for each year of the lease, you should negotiate a month of rent-free time, which helps during the early setup phase. Another point is bank guarantees, where landlords require a large sum of money to be held through a bank as security, often for months after the lease ends. We experienced this in Melbourne, where they required an indefinite end date, meaning they could hold on to it as long as they see fit. The second time around, we made sure our lease specified a shorter period of 6 months after the lease ends. Always remember that you can negotiate these terms; landlords want good tenants who are happy, so don’t be afraid to push for things that will benefit your business. And again, ensure you seek legal advise before signing anything.

Lesson Three - Know your numbers:
Financial planning is the backbone of any business. You need two main budgets—one for the setup phase and one for daily operations. The setup phase includes fit-out costs, equipment, marketing, and lease establishment. This is where many businesses overspend, so knowing how much capital you need is essential. Once your doors are open, you must also account for ongoing costs like accounting fees, insurance, and staff wages. We recommend having enough funds to cover at least three months of expenses with zero clients to ensure stability during the startup phase. If you don’t need it, then hold that same 3 months income as a ‘Rainy Day’ fund rather than spending it on other things. As you grow, you’ll need to understand how many weekly visits make the business financially viable and plan your personal and business expenses accordingly. This financial clarity keeps you on track, even when business fluctuates. 

Lesson Four - The fit-out process:
Designing your studio space is exciting, but it’s important not to overextend yourself financially. It’s tempting to go all out on a fit-out, especially with the rise of beautifully designed Pilates studios on social media, but starting small and expanding as you grow is often wiser. In our Melbourne studio, we invested heavily in equipment upfront, which took a long time to pay off. This time, we’ve taken a more cautious approach, starting with just one of each key piece of equipment and opting for Australian-made options. We’re focusing on building the studio’s financial health before expanding. Remember, a simple, well-designed space can still create a welcoming atmosphere for clients, without breaking the bank.

Lesson Five - Marketing something new:

Effective marketing starts with knowing your audience. Your ‘avatar’—the type of client you want to attract—should shape your entire strategy. For example, our core clients are semi-retired, 50-60-year-olds looking to maintain their movement as they age. We know they’re more likely to use Facebook, read newspapers, and listen to certain radio stations, so we focus our marketing efforts there. We’ve also found that business-to-business networking (B2B) is invaluable. Partnering with local businesses to host workshops or share referrals can boost your visibility. Marketing is a long game—building a loyal community through consistent messaging and targeted strategies is more effective than flashy campaigns that don’t speak to your audience.

Lesson Six - Have clear goals, but be patient:
Starting a business from scratch is a slow process, so it’s important to set realistic goals and timelines. Unlike our first studio, where we took over an existing client base, starting fresh in Perth meant building a community from the ground up. We set weekly visit goals and tracked which marketing strategies worked, adjusting as needed. It’s essential to understand that success isn’t immediate—many businesses take 1-3 years to become consistently profitable (depending on debt levels). The upside is that when you’re building something from scratch, you have full control over your business. You can shape it to fit your lifestyle and vision, but it takes time and patience to see the results.

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At the time of writing, Ash and Rob are currently in the 8th week of their new Pilates studio being opened in Perth. They arrived in June and it took them 3 months to find a suitable tenancy as well as several near misses where both luck and intuition played a role in landing them in the buzzing location of Beaufort Street, Mount Lawley. Ash is now 39 weeks pregnant with baby #2 and is not currently teaching, leaving Rob to run this one-man show. They are both excited about this re-iteration of Movementality in Perth.