Introduction (The Tragic Mistake)
As a consultant and operator in the boutique fitness space, I’ve witnessed a heartbreaking scenario unfold time and again. It’s the story of the idealist business owner, whether young and eager or seasoned with a corporate past, who makes a critical error: believing their business can also serve as their community. While younger operators often have the resilience to learn from this mistake and adapt, for older entrepreneurs, the consequences can be particularly devastating, leading to profound disappointment at a time when they seek meaning and success.
The Core Conflict (Business vs. Community)
The heart of the issue lies in a fundamental misunderstanding of how businesses and communities function. Businesses operate on clear, measurable metrics: client retention, lifetime value, profit and loss, and the return on investment from advertising. These are the guideposts for informed decisions that drive success.
Community, however, thrives on a different set of values: trust, loyalty, mutual benefit, safety, and comfort – all deeply rooted in emotion and connection.
The Downward Spiral (Consequences of Mixing)
When we blur these lines, convincing ourselves that clients can also be community members, especially when we are both the landlord and service provider, we set ourselves up for a tragic downfall. The moment you need to make tough business decisions – like adjusting pricing to ensure sustainability and reasonable profit (because, let’s be honest, businesses need to make money to survive!) – those clients you’ve embraced as community members will often resist. Their personal connection can make them feel entitled to influence decisions that, while necessary for your business, might negatively impact them.
A Real-World Example (The Pilates Studio)
Consider the example of our own Pilates studio. Two well-meaning, idealistic owners inherited a business they advertised as “your Pilates community.” They treated staff and clients like close friends. The result? The business consistently struggled, never turning a profit, and the owners frequently sacrificed their own paychecks to make payroll. Years passed, and the core problem persisted. Then COVID hit, and with clients and employees gone, it presented a stark opportunity for a fresh start.
The Turning Point (The Solution)
I helped them see the crucial need to separate the business from the concept of community. The clients could certainly form a community among themselves, but the owners, as business leaders, could not actively participate in that dynamic without compromising their ability to make essential decisions.
The Transformation (The Success Story)
Five years later, the transformation is remarkable. The business is thriving beyond their wildest dreams, all because of that single, pivotal decision to distinguish business from community. To put it in perspective, before this change, annual revenue never exceeded $400,000. Today, it’s closer to $900,000 and projected to hit a million next year.
Key Takeaway/Call to Action
If you aspire to both business success and a rich community life, that’s a commendable goal. But the key to achieving both is to build them separately. Your business needs clear boundaries and strategic decisions to flourish, while your community thrives on authentic, unburdened connection. Seek both, but build them separately according to the principles the govern each, and you’ll likely find success in each.