263 - Navigating the Complexities of Studio Ownership w/Steph Alston & Rachel Brooks

Rachel Brooks and Steph Alston are back for another installment of our yoga studio owners roundtable. These are conversations about the real stuff involved in owning and running a studio.

Some of what we explore today:

The importance of sustainable business models, long-term planning, effective communication, and asking for help.

Steph also shares about her decision and process to take on a business partner and some of the considerations involved, while Rachel shares about her process of studio expansion and some of the ongoing adjustments required.

Connect on Instagram:
Rachel, Seeking Space Yoga, and Yin Yoga Space
Steph and Santosha Yoga Collective

Previous episodes with these guests:
Steph: episodes 236, 205, 227
Rachel: episodes 236, 188

Weekly stories by email from Bonnie HERE

Connect with Bonnie: Instagram, Email (hello@bonnieweeks.com), Website

Produced by: Grey Tanner

Transcript

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Bonnie (00:03.44)
Hello loves, welcome back to the podcast. This is another installment of a yoga studio owner conversation. And we have had several of these prior. So there's all of those. We'll link those in the show notes so you can go back to those. But I have with me two friends who are doing an amazing job running studios and the amazing and the complicated and all the jobs that are required as a studio owner.

And to bring you, like we're showing up here to bring you a conversation that is like really real, like what it's like to be a studio owner. What do you need to face? What do you like need to hold? How do you hold yourself in it? What problems are you facing? How are we solving those problems? And hopefully then feeling like you're not alone in this, especially if you are a studio owner or if you want to step into studio ownership.

My friends here, Rachel and Steph are also available for conversations, for booking an appointment with, like saying like, okay, I just want to talk to somebody else who's in the game. So I do not have a in-person studio that I own. However, the business side of things is really interesting to me. And I have my own online studio, which is a different sort of set of problems. But this is a primarily focused then on the in-person and brick and mortar experience.

Rachel Brooks (01:14.685)
And I have a...

Stephanie Alston (01:22.041)
you

Stephanie Alston (01:25.708)
Thank you. So excited to be back.

Bonnie (01:26.596)
So thank you for being here and thanks for being a part of this conversation. Rachel and Steph, welcome to the podcast.

Rachel Brooks (01:34.077)
Thank you. Yeah, excited to be here. Good to see y'all.

Bonnie (01:39.878)
Yeah. So Rachel is here in Portland. And again, like we're going to link past conversations so you can like be like, where are these people? What are they doing? Steph is Stephanie is in Sacramento, Northern California area and just outside of that area. So we're coming from kind of West Coast United States. And today, one of the things that we really like to do is kind of step into this and say, very current events.

Like what is something that's really real for you right now? And what's the problem you're solving? So we're going to step off into that and Steph, I'd love to hear from you first. Like what is something right now we're at the end of 2024 as we're recording this and we're, it's on a Wednesday, we're on hump day. like the, like what is the current event thing for you as a studio odor that you're like, what?

What are you trying to hold right now? What's a problem you're trying to solve? Like what's current event for you?

Stephanie Alston (02:36.523)
The biggest thing right now is that I decided to take on a partner. And so what I'm navigating right now is all the legal and technical parts of what that looks like. It's one of my current teachers at the studio who I love. And we can talk about the whole story, but when I started the studio, I said, no partners, I'm doing it all by myself. And I am still so glad I did.

But the studio has gotten to the point now where to be able to get into our full, I guess, expression or reach our full potential. I just know that there needs to be more than just me. And I wanted to have some commitment and buy-in long term that knew that they were going to be putting in some sweat equity, that it wasn't going to be an initial payback. You can't just clock in and out and get paid for every single hour, but I need you here to build. So it feels really good, but we're right in the middle of that.

Bonnie (03:16.163)
Mmm.

Rachel Brooks (03:33.981)
That's huge.

Bonnie (03:34.052)
That's huge.

Stephanie Alston (03:35.387)
It's very huge. Yeah, it's big on so many levels, like not only for our team, but even on the whole like I'm set up as an S Corp. So we could talk more about that. But the the legally splitting the business is really interesting. And I'm staying majority owner, but the process to sell essentially it's a stock sale. So I'm selling like shares of the studio. But that requires a lot of different iterations for the way that taxes are run, the way that we're going to be profit sharing, like

Also, we're doing a split where part is financial buy-in and part is sweat equity. Like you can work that into the sale too. So like there's literal work trade that's going into her buying in her shares. It's quite a dynamic process. So I'm learning a lot.

Bonnie (04:19.152)
This is fascinating.

Stephanie Alston (04:22.268)
I know, Bonnie, your look is just like, what?

Rachel Brooks (04:23.965)
Thank

Bonnie (04:26.394)
Well, mean, having been here for the beginning where you're like, nope, not going to do that. also having heard about, you you've tried to kind of have some managers and people who support you. But I think that there's a tricky part with studio ownership that I think as teachers, it's really hard to know about the behind the scenes and how much time is unpaid for studio owners.

And the cost of things is kind of, you're not aware of it. I think for even for me, for online business, the amount of costs that I have to run business online is rather large. Now that I'm hosting in-person trainings too. Like there's just, there's a lot of hidden fees and charges in that. And so then this idea of sweat equity on top of like the profit split and buying out, like that is, I'm so glad that you are not doing that alone.

and you're having people support you.

Stephanie Alston (05:24.371)
Yeah, thank you. and real talk, a lot of the reason for doing this was like, my parents aren't getting any younger. I know it's not an echo to when they will pass away. And Bonnie, I know that's been a really good experience for you this year. And I'm watching a lot of my peers go through this transition of like, where this next generation coming up and I want to be in a place where I can take

some time off if I need or have support that the studio will keep running if I'm not the only one available. I've had a really amazing management team so far and that's been great. My initial manager of the studio and I went through a lot of iterations of what that would look like with her involvement and then for personal reasons she ultimately left the studio last month. And at that time I was already working on this new co-owner coming in.

I am not sad about the way that things have all shaped up. I think this is what needed to happen and it was totally serendipitous timing, but it feels right now at this point like, okay, it wasn't a yes two years ago, but now it is. Like I need someone alongside me to help be the second set of eyes in a way that's a little more than just a manager.

Bonnie (06:38.958)
Yeah, yeah. Well, I think the phrase what's right right now is like so like that's like a big one. And I hear you on creating a structure so that you have the flexibility to show up when maybe life does some hard lifeing at you. So that's definitely something I think with my mom dying like what two and a half months ago. And then I was like, well, and now I need to shift this or now I'm traveling for funeral. then but I already had other some other travel plans for

teaching in-person flow school, then the time is used in different ways. And so it's something I have thought, we're not gonna jump into scaling online for this conversation, but in my own kind of thought process around business is similar where I'm like, okay, but people are gonna die that I love, and then I'm gonna need to go and show up to funerals and go do the things. And if I'm holding all the things, how do I create a business that can show up?

like continue to show up and support others if like I need to like go and do a thing for like two weeks. Like how like how am I setting up that? So I hear you on that and knowing some of your situation with your parents and your mom and whatnot like that's like that's really that is really important.

Stephanie Alston (07:53.828)
Thank you. And I think what's so unique about this conversation altogether today, like Rachel, also we're in in boutique businesses. I am not backed up by a corporate that's like running a lot of my marketing behind me. And that does not mean there's less work if you're running a corporate yoga studio. But what I'm saying is, like, it really does all fall back on me. Like I am the social media, I am the website editor, I am a lot of the jobs that

like maybe in other industries, there's like a headquarter team that you're kind of not seeing that's sending out email blasts that doing some of the planning for promotions, you know, having managed a corporate studio, like I know how much that really supported us. Like they plan a lot of things that I didn't have to think about. Anyway, so like being a boutique business owner when it's like your own one

space or maybe even two spaces, but it's like a family owned company that looks a lot different with taking time off and what other resources can be brought in.

Bonnie (08:54.798)
Mm-hmm.

Rachel Brooks (08:57.691)
Yeah, and I think too, that's something that, you know, really figuring out how to be

Bonnie (08:57.829)
Yeah.

Rachel Brooks (09:02.973)
duplicatable, that's something like I've had a bad year for health and I'm still in the process of on a journey of figuring out what might be going on with me. thinking about that too, it's not even just family members or people in our lives that are going to go through things. It's our, it's ourselves, you know, too. So how are we setting our, you know, it up to where it's not 100 % dependent on us physically being there to do the things when we can't, you know, so it is, there's been a lot of reflection definitely on processes and

and the team that I am so blessed to have an amazing team, but even just digging into that more of like, what happens if I need to be completely out for like three weeks, a month? I don't know. Like, however, what if I can only do stuff from home, from bed, or any of those things? Like, those are all things to think about. So, and honestly, if you're in the beginning stages, that's something that's not even, if you're in the first three years of business, I don't even know that that's possible. like, you're just so in it and there.

and so all-consuming. it's even almost a privilege to be able to think about this stuff at the stage of business. You have to be at a certain stage in your business to even be able to think about being duplicatable.

Bonnie (10:18.416)
Yeah, that's interesting to say like even the first three years, cause Steph, you're like at year two now. You just passed you two years.

Rachel Brooks (10:19.005)
together.

Stephanie Alston (10:24.579)
We just passed two years and it's also an interesting dynamic that the studio's been here 12 years. Like in the spring it'll be 13 years that the studio's been here physically. So for a lot of our community things that we're doing now like running a 200 hour teacher training in the spring, like so many of them have been waiting for a long time for those things. And I feel like we have a really great foundation in that way, which has also shown some staying power.

But yeah, so taking on a partner is interesting because we're also still in this really startup-y growth swing. Yeah, there's been a lot of conversations about, what does that look like now? What's the business valued at right now considering what's growing and what it could look like in four years from now could be totally different. So if we have you buy in at this stage, what are you investing in?

Also, what are you getting locked into knowing that four years from now it could look entirely different?

Bonnie (11:23.864)
Yeah. Are you setting up a, like a timeframe of like, you're buying it for this amount of time or like a commitment? Is there a commitment in this?

Stephanie Alston (11:32.127)
Yeah, so the way it's structured right now is a 60-40 split. So I will be 60 % owner, they will be 40 % owner, and they are buying in over a four-year period. So essentially, they are buying 40 % of the shares immediately. They'll be 40 % owner immediately, but I carry this loan for them to buy me back over four years. So it's like four years of contributing money, four years of sweat equity, and at the end of four years, that loan is paid off.

It's a really interesting way that it's set up legally, but that was the most advantageous and simple for all of us to do it that way. But yeah, the business is valued just right now what it is. So the 40 % is based on what it is right now. So we don't have to revalue it every year for four years. Yeah.

Bonnie (12:21.028)
Yeah. Okay. So just so I can wrap my brain around this. the loan, that portion of her loan then is paid off in four years to you, but she is still making money in this time, but then she also has a piece of like sweat equity. meaning like, that an agreement for amount of work hours that are not for pay? That's part of the agreement.

Stephanie Alston (12:42.361)
Essentially, yes. And you can really work it out creatively in a lot of different ways. I have learned a lot about kind of whatever agreement you want to make. The lawyers can help you figure out how to do that. But what we agreed on was that a portion of that 40 % buyout is cash and then a portion of the 40 % buyout is work. So we figured out this many whatever amounts of dollars is going to be

how much time you'll put in that's not paid to you. It's just paid right back to your loan. So this person is still like an employee teaching classes. They'll get paid for those. They'll get admin hours. They'll get distributions. Like we're still doing those normal payout ways. But then like essentially 30 hours a month, I think is like contributed without them seeing the money. It'll go right back to the loan.

Bonnie (13:32.59)
Yeah, fascinating. Knowing how, this is maybe more personal, but knowing how you are so good at organizing and how you know how to hold all the things and run all the things, how is it feeling to give up some of that to somebody else?

Stephanie Alston (13:54.765)
I'll let you know when I there.

Bonnie (13:56.518)
Or the idea of it.

Stephanie Alston (14:00.943)
The idea of it is exciting because I fully trust this person. I think that's been part of it too is like learning what I really needed in a partner. I think when I started the business, I really didn't know what I needed. I thought I did, but it's kind of like getting married, right? You think you are gonna know what you need and then you're in the relationship and then you're like, they actually need these things. And so like learning over the past couple of years, would have like, what kind of personality do I need to work with?

And part of what made this doable is they're not just a stranger coming in. It's like someone that's actually worked for the studio for a while. We've done big events before. And by the time their name finally came to me, it was like this light bulb moment of, my gosh, they've been in front of me this whole time. But I just, couldn't see it and they couldn't either. And now both of us feel like this was the best timing. So, you know, in that sense, now I feel like I've kind of forgot your original question, but like,

Bonnie (14:52.279)
Mmm.

Stephanie Alston (14:58.809)
That's kind of what I'm approaching this with is that energy of, know what I need to delegate now. I know that I can trust this person with the things I will delegate. The things that they're strong at are exactly what I needed them to be strong at. So I'm not feeling trepidation of like, I'm going to be handing off my baby. I told them like, I'm still going to do the social media. And they're like, great, because I don't do that. I'm like, wonderful. So they have strengths that are going to make up for the areas that I don't love doing.

Yeah, so that's really been a big part of it. So far, it's just been training, getting them up to speed. They were also teaching at a few other studios and needed to give notice. So that was a big part of waiting for like that to close up it. This is a months long process. That's the other thing. Nothing in business is fast. And even the studio ownership thing, like we've been working on it months to know that this was going to be finally in January to the public. yeah, it's, it's all

little bits at a time.

Bonnie (15:58.872)
Yeah, That's very exciting. And okay, so just for logistics, so let's say somebody is in a situation like you where you're like, my gosh, I need to make a change. I want to bring in a partner. What is that first step? What are the people, who are you contacting? Three things. Three things that you would tell people step into for that.

Stephanie Alston (16:28.491)
The first thing is look at who's already around you. I have learned a lot as I go, so I don't know if this is like the professional expert recommendation on how to look for a partner, but I started off just talking to the teachers I was closest with, the other business owners that I was closest with that I thought, I could work with them or, I love what they're doing. We could do this together. And I just started putting feelers out, like literally telling them like, hey, I'm...

thinking of taking on a partner, is that something you would consider and feeling out first where the yeses were energetically? And I probably had like four different specific conversations with people over the past year of like, hey, would you consider partnering with me? Would you consider this? And all of them thought about it, like went off, did their own calculations, came back and ultimately gave me a no. But every no got me closer to the yes. Like it got me clearer on

They knew so much more what they wanted. I knew so much more what I wanted. So that was the first thing. Just have the conversation, start putting it out there and get a feel for like who your energizers are. The second thing was getting legal support. I feel like I said that at the very beginning with buying a studio in the first place, but I cannot stress enough how amazing our business lawyer has been to like help me understand the ins and outs of what I'm even asking for, what's realistic, even all the things about like,

Like this sell out of part of my shares, like I'm the 100 % business owner, so they're not buying the studio from the studio, they're buying it from me. So I am carrying the loan, like Steph, personally, I'm like becoming a bank essentially to carry this loan for someone. And understanding what that's also gonna look like on taxes, like just having legal advice is so huge. And then the third thing is the time.

the time element, like give yourself time, do not rush the process. And also like we thought a lot about what's the timing with how we tell the staff, what's the timing with how we bring in the current manager, what's the timing with, like we gave ourselves so much space, had multiple meetings before it was even signed with like, you start with a letter of intent saying, hey, I intend to sell you this, do you intend to buy? And they say yes, before anything becomes like legally the wheels are turning. So getting the letter of intent signed,

Bonnie (18:48.431)
Hmm.

Stephanie Alston (18:51.922)
that figured out. Like this has been a few months of like now I'm starting to tell people more on a public scale because notice has been given. Like they are all now like fully employed just by this studio and our staff by Friday. That's been a part of the conversation is what's the timing so that we can announce it publicly by this date. So I think knowing what your end goal is by when does this need to happen and then chunking it down and working backwards. But like giving yourself

Bonnie (19:11.11)
Yeah.

Stephanie Alston (19:20.723)
plenty of time to make the changes without expecting an overnight miracle.

Bonnie (19:25.766)
Yeah, yeah. Well, and I like your acknowledgement of time, even in finding the person too and in discovering, like, I need this. I don't need that. And I mean, Rachel, you started with a partner. So it's like a totally different thing. We've talked about this in the past. But I think of that even for anything that I've done.

and had support in different people and being like, okay, I think I need somebody to do this. I need somebody to do that. And recently, even for myself, I'm like, you know what? I think I don't even know what's possible for people to help me with because I only have like, all of us only have what we understand where somebody else has a completely different brain and, and skillset and perspective and craft that they could be like, they could totally do something totally different that you're like, I don't even know that that's even possible.

Rachel Brooks (20:03.613)
Thank you.

Bonnie (20:21.126)
But kind of opening the space for that is pretty fascinating and it does require some time and patience.

Stephanie Alston (20:26.846)
Yeah, one of the big things I've learned like over the past two years. So Rachel, I would love to know your experience because you started with a partner and are now solo. And I went the other way. I started solo and now I'm bringing on a partner. But what I learned was like, I needed someone who's already been a business owner, who understands entrepreneurship, someone that I have seen work under pressure and specifically in this industry, like how are they teaching? How do we run retreats together? How are we doing big events?

And it was only after I was able to see all those things over the past year and a half that I was like, that's the person I work with. And then when I invited them in, they were like, totally, I got this. I know what it takes to run a business. They've had successful businesses before, bought and sold businesses before. So like they came in so seamlessly to me talking about this legal jargon, even the buyout process. They were like, yep, okay. And they just have hit the ground going to, you know, town events already and feel totally good in front of

Bonnie (21:12.219)
Hmm.

Stephanie Alston (21:22.628)
the public and I'm like, this is the dream partnership, at least right now. Ask me in two years, maybe when the honeymoon period is over. I'm learning, it's one thing to have your bestie and say, let's start a business together. This will be so fun. And it's another thing to be like, I need someone who's gonna work their ass off and not be offended when I say, we need numbers for X, Y, I I so appreciate that we've been work first.

And like friendly, yes, like relationship, but that second, and we know that like when it comes down to it, the business is our baby and we're going to co-parent the hell out of this thing.

Bonnie (22:01.446)
Mmm, I like that.

Rachel Brooks (22:02.609)
Yeah, that sounds like like that's I've you know, when I thought about it before and actually when I was going, you know, have been going through, you know, different challenges this last year, just thinking about like, I've considered also like, you know, I if I want to be able to expand, if I want to be able to sustain and I do need to, you know, potentially take time off or things change in my life, you know, what does that look like? And so I think the way that you're doing it stuff where it's like you're already

in the business, you've already learned how things need to go in the way that you want them to go. And bringing a partner in after that is much better than starting off like both first time business owners, friends, you know, don't start a business with your best friend. Don't do that. Don't do that. That's completely honest. Don't do that. That's not a really good idea. But yeah, having you know, so you've already been in business, you know how you know, you know what's needed and

going at it from that direction sets you up for way more success guaranteed than how I started out. So I'm excited for you for that. And yes, I will ask you in two years how you're feeling about that. Yeah, so. Yeah, that's something I have thought about in the last year of like, is that something I would want to do? But right now I'm just kind of still working with the team that I have and just.

Stephanie Alston (23:11.223)
Ew.

Bonnie (23:12.166)
you

Bonnie (23:16.294)
Mmm.

Rachel Brooks (23:25.541)
Delegating more and kind of and evolving positions to be more supportive But in the in the future if that's something that if there's an opportunity for more expansion Then I'll definitely need to have more help for sure. So

Stephanie Alston (23:38.542)
Yeah, well, and being real about that too, it actually has worked into our purchase agreement as well that there's a six month buyback period. So for this first six months, I mean, like it's official, but it's also kind of not. If at any point month, month five, day 30, if either of us are like, this is not working, then the agreement is canceled with no like detriment to either side. So like we're gonna have a six months like working together full on as co-owners.

before this is like legally checked off. And there's also worked into the whole agreement long-term. Like I'm still majority owner and there's this thing called drag along rights, which I had not even known about and Rachel, you might, but like, let's say at some point I want to share my 60%, I want to sell my 60%. She has first rate of refusal. I can go to her first and say, Hey, you're 40 % owner. Do you want to buy me out and be 100 % owner? But if she says no, and I don't want you to sell other.

Bonnie (24:08.998)
Mmm.

Stephanie Alston (24:34.58)
either, can say, too bad, I'm going to sell my 60 % and as minority owner, you have to go along with it. So it's interesting to look at those kinds of things that get worked in that you're kind of like, you do have to have those conversations and sort of be protected as you go that like, what if something happens? What if she dies on year three of our partnership and we haven't even finished the whole payback of the loan? Like we've been looking at those things. So there's a lot to consider if you're going to go into partnership with someone like

almost like having a prenup, like write it all up ahead of time for every possible case scenario so you know what's going to happen to the other part of the business if either of you, if it goes.

Bonnie (25:14.768)
This is wild. I mean, this makes me think of like signing divorce papers. cause we, I had like, we had one lawyer who like works with couples and so it's not all, not all couples want to work with one lawyer, sit in the room together and do the things that like that worked well for my ex and I. but going through the amount of paperwork, there was like so many things to like check mark and different like, you know, she broadcasted up on this slide show on the wall and like we had to go through all of it and numbers and.

and just like, okay, what do you want to agree on for this or that? And in the moment of that timeframe, so this is, you know, five years ago, well, more like four years ago, I guess, since it's been legal, like legally ended, but we, I remember like there's different conversations that we were like, well, if we don't even need to figure this out right now, like this is like a non-issue, like this doesn't even matter. And she'd be like, no, like do this, you know, and she would bring up stories of situations that were,

we're less ideal and we're like, but that's not who we are. And now four years later, what I could say is like those conversations were felt annoying at the time, but I'm really glad that they happened and not that like things with my ex are like terrible or like there's absolutely not like he's a fantastic co-parent and whatever, but like, like things shift and things shift from like the very current moment that you're in and you cannot prepare for things. And it is

Rachel Brooks (26:18.493)
you

Bonnie (26:43.098)
really helpful to have those things in writing and to have the support of people who have had some experience and some in observing other situations so they can help you protect yourself and like set yourself up for success.

So, feel similar. Okay, this is exciting. We are getting in it. Okay, Rachel, what do you have? What's the thing that's new, that's current, that's a problem you're solving? What's right now?

Rachel Brooks (27:13.117)
I feel like that's a hard act to follow. Like that's a big new step. Now mine's like, you know, well, have a little expansion, you know. Yeah. Yeah. The thing. Yeah. That's my, the expansion or recent expansion at Seeking Space. So Seeking Space is the, you know, the studio that I've, that has been established longest since 2017. And

Stephanie Alston (27:21.959)
No, you can't run second of your studio

Bonnie (27:22.982)
That is

Rachel Brooks (27:42.909)
Since 2017, I've thought about that upstairs space being available, but just it was always, you know, we've always had a really good relationship with the Venice of Lawn upstairs. And we've always had a really good relationship. The original owner was Jerry. Her name was Jerry, and she's the one who we went and talked to when we wanted to open up Seeking Space. And it was just such a, she's just like this most casual, super free spirit lady was just like, yeah, that sounds good. Let's, you know, it was like so casual and just like, okay, cool. We're doing this now, you know.

And then she one of the stylists that was working for her named Lindsay I think it was right before 2020 or maybe right in the pandemic like right after the pandemic started wouldn't Lindsay took over as owner and So they're just the best people super super sweet always great. It's like really easy to work with Close with the whole staff and everything

Stephanie Alston (28:14.987)
.

Rachel Brooks (28:35.797)
And so I really didn't think that I just, it just never, I, you know, I stopped thinking about it from, you know, the very beginning when I had ever even thought about that being cool. And, and then it just kind of, you know, and then Lindsay came to me and said that they were planning on moving and just downsizing a little bit for a space that accommodates them better. And so it was cool. It was just like almost, you know, kind of one of the universal laws where you kind of just like surrender a little bit more or just, know, and let it, and actually just kind of let it happen for you.

So wasn't this, you know, forced thing. so, yeah. And then, so she, they moved out in September. And so we started the expansion in September and then we opened up. I feel like it was like, I can't even, October or something. I can't even remember the date that we started our first class in there. So yeah, but like maybe like a month and a half or two months that we had like started from the time we started demoing walls up there and everything. So.

Stephanie Alston (29:23.573)
.

Rachel Brooks (29:34.661)
It's been consuming. That's what it is when you expand the cool, you know, it's, the second time I've expanded. So, you know, there's I, I've same contractors that I've worked with over the years, which is cool. and you know, there's some, you know, some things that you can plan for. I've, I've mentioned this before. I was just, were talking about this a little bit ago before we started, but, you know, there's just certain things that you don't know about a space until you actually get into the space and start using them. And so.

Stephanie Alston (29:54.236)
.

Rachel Brooks (30:03.143)
when these types of situations, just move forward and you do everything that you know to do. And then you observe and you, and you then continue to tweak. there's never, if there's some major advice that I have for anybody who might be looking to get into studio ownership or, you know, opening and not even the studio, any kind of space that you're opening business that you're starting in a space, it's like, it is never going to be exactly how you want it to be. Ever.

Stephanie Alston (30:32.336)
Yeah

Rachel Brooks (30:32.861)
It's never going to be like there's it's just always something to do with it There's always something to improve always something to upgrade update But especially in the beginning like it's just never going to be exactly how you want it to be You just have to open the shit You just have to open it just start it and then you work on it and you improve it and you're in there and you're you know, So that's what we do We just start things and we we just move forward and we tweak them and so I'm in the I'm in tweaking mode now. So I've been

I feel like I've been joking with everyone that I have a loft apartment upstairs at the studio, the upstairs studio is now my apartment that I live in and sleep in. I've taken naps up there. And so I've just been there a lot and I'm taking classes. have, you know, we have new teachers to have taken on like eight new teachers recently as well because of expanding the schedule and also, you know, we just needed to as well as this time. so I've just been there a lot.

taking classes and feeling the space out. So there's, you know, a little soundproofing things and, and it's just spatial things that I'm, that I'm in the process of evaluating and seeing what we can do to make it even cozier and make traffic, the flow of traffic. It's just like these little like, for example, we have the shoe rack. It's this cubby shoe rack that's right inside the door. And the upstairs space is different than the downstairs space because you're

Stephanie Alston (31:41.558)
.

Rachel Brooks (31:57.277)
walking into the studio room, whereas downstairs you're walking into a lobby and then there's a hallway and you know, whatever, and then you go into the studio. So the upstairs, you're just walking into the studio. So, you you need to take your shoes off immediately. And so there's like this little kind of cubby shoe rack thing that I put together and it's inside the door. And then there's like a little thin kind of jute rug that's right in front of it. And so there's space for you to walk in.

kind of wipe your shoes off at the doormat and then take your shoes over to the cubby place. But what happens is, you know, people will set their shoes on the rug instead of in the cubbies. And so, you know, which is fine. I totally understand. But we need room in like we need room for people to be able to walk by and there's not enough room on the floor for all the shoes. So they need to go in the cubbies. So just like little things like that. We're just like working on communicating the flow of traffic of things. Or maybe I need to get a new shoe rack. I don't know.

It's just the things that you don't, that you just have no idea how they're gonna go until you're in there doing them and you're like, well that doesn't work. So yeah, we're just in observation mode and figuring out the flow of how everything's gonna work in there most efficiently. Yeah.

Stephanie Alston (33:09.227)
Yeah, I feel like real because when we opened our second side we have a hallway that connects them Bonnie's been here in our studio But like so many people now like will set their shoes in the hallway Which is down to the bathrooms or even things like you were talking about last time Rachel I think like parking like now we have two rooms going at one time.

you going to park or what's the sound like from side to side? So I'm wondering like what's been the most surprising or unexpected thing to you since moving in this second space?

Rachel Brooks (33:42.365)
There's nothing has been really like crazy surprising. mean, we so I've been I've been observing like the parking thing is a huge part of it. That's been giving me anxiety since we found out we were going take it over. was like, my God, what are going to do? But

it seems to be going like there I haven't really had like been observing and I haven't really noticed anything crazy. I still need to like make a like kind of visual for people of some you know areas that they might not be thinking of our parking you know, because it's just kind of you know, being resourceful but I think the most we've had going on at the time so like we've got 25 capacity downstairs 23 upstairs

So I've been watching to see when we hit that full like capacity in both spaces. We haven't quite made that yet. So I think the most we've had is like 42 or 43 people all parked at the same time. And it like, I haven't gotten any notices yet from the neighbors. I think we're doing okay. I'm waiting for that, know, who knows? So, mean, yeah, there hasn't been anything to, I mean, maybe that's what the biggest surprising thing is, is that the parking isn't as big of a deal as I've been thinking for the last four months. I'm like, what are we gonna do?

Stephanie Alston (34:43.037)
you

Rachel Brooks (34:53.638)
so

other than that, nothing too crazy. There's just, you know, just this little sound things that you don't, know, like we've just never had two things going on in the building at the same time, or just thinking about like, I've been really big on, you know, we sound like broken records because we're just kind of like getting everyone in the, in the flow of like the process and there's new people in class every day. And so it's like, you know, mentioning because we have mat storage downstairs, for example. And so there are people who are long time members there that I've

their mat store downstairs. But if you have a class upstairs, you need to come in through the upstairs and then you go downstairs to go get your mat. But then you need to come back up and put your mat down. And then when you're ready to go put your mat away back downstairs, you still need to come back upstairs to go out the upstairs entrance because the downstairs is now locked and there's no one down there. So if you go out downstairs, you're going to leave the door unlocked and you know, just like stuff like that that you wouldn't. It's

such a pain in the ass, but it's like, it's real. It's like, yeah, there's like these little things that you had to think of or when people stack classes, for example. So they're taking a class downstairs and then they're waiting for the upstairs to be open to put their mat up there and they're just hanging out. You know, it's like just little things that you just have to figure out as they're happening. And honestly, like you can try to control the flow of traffic as much as possible.

but it's like, really is kind of like, you kind of have to like also mold to the way people move and the way people do things. So it's like that balance of here's what I would like to happen and here's what's actually going to happen.

Bonnie (36:21.926)
Mm.

Stephanie Alston (36:22.267)
I think studio ownership in so many ways is that ultimate practice of like letting go control and just surrendering to the process of like to a certain extent there's a way I want things to happen and then it's like you know people are gonna come in and do what they're gonna do and I need to navigate around that.

Rachel Brooks (36:48.123)
Yeah, yeah, and it's not anything that's I mean you have to obviously Safety of the building those things have to be hard, you know, like those are hard boundaries, but everything else it's like, okay cool You know, you have to like just this is how it's gonna go. This is what this is what people do This is how people are

This is how I know that's it's made me observe to like, when I think about, you know, say I make a sign or something and maybe it gets noticed or maybe it doesn't. But like, I'm like, I don't read science either. Like, I go out to public and I'm not paying attention to the signs that are right there. You know, until I've seen it like four times or someone points it out to me. So it's also made me very aware of just like, and I think we're just as we're just inundated with information in every

Bonnie (37:17.094)
you

Rachel Brooks (37:31.053)
in every way all the time and so it can be really hard to like get communication through to myself included you know so yeah it's just interesting.

Bonnie (37:43.01)
Yeah, I'm just thinking about your shoes and the cubbies and I'm just like, how would I solve this problem?

Rachel Brooks (37:48.509)
I

Stephanie Alston (37:51.609)
And it's one of those things that's like so real. At storage and I'm like, yeah, we have mat storage in the prop room of the main studio. So now that people are using the second studio, they have to walk through the first studio to get their mat to bring over for the class here and then go put it back. And if there's a class going on, it work with the timing. It is such a thing. And with the shoes, these little things, they build up to the whole experience though, like of the student.

Rachel Brooks (38:08.636)
Yeah.

Bonnie (38:19.588)
Yeah.

Stephanie Alston (38:20.441)
and also just I think that like the you mentioned flow of traffic but I'm just thinking we have new people every day at the studio and how am I getting them on board with like this is the way we do things here and if we don't really have a system yet I'm like people will be like well do I put my shoes in this cubby or that cubby I'm like whatever you want

Rachel Brooks (38:43.005)
It's a wild wild west It really is like there is that is that is the that's the problem to solve is like how do you communicate? All these little things about your space To somebody who's never been there before, you know, we have a good marketing sequence that's like that gives like as soon as anybody buys the intro Offer that you are to week intro. They are getting immediate emails. Are they reading them?

You know, they're getting text messages too. Are they reading them? Probably more so than the email, but like you can only put so much before you lose somebody. You know, you're not gonna put this giant novel of like, here's all the things that you need to do to prepare, you know, like it's, it is interesting. I've been, that's a, that's a thing that I've been trying to figure out for the entire time I've been in business is like.

How do we get most effectively communicate the ways of doing things and also not seem like so, you know, so rigid to like, I don't want to put it somebody to come in here and feel like they can't just be comfortable, you know, too. But it's also like, this is a public space that you really do have to direct traffic. It really has to like, or it's just mayhem, you know?

Bonnie (39:42.662)
Mmm.

Bonnie (39:55.076)
Yeah. Well, this just makes me think of like the customer journey, right? Customer journey, customer experience. that really the word hospitality isn't spoken of, think, so like super directly or like, what's the hospitality like? Or that word is not always used within, I think, yoga land and within teams of, you know, that's like for hotels and for, you know, other places where you're like, what's the hospitality like? But it very much

is that of like how do people show up and feel taken care of and feel like we've thought through the problems that might come up with the flow of traffic with like the order of operations and to have thought through that so that it's an easy answer to give them. It might require a couple of steps but that it's even been thought through and then tried to simplify and that there is so much behind the scenes of that kind of consideration that goes into business owning.

that's regardless of online or in person, just in business only in general.

Stephanie Alston (40:57.484)
Yeah, we have at the studio with our management team, we say, think kindergarten, but literally like everything we're gonna do, present, change, it doesn't matter. We say, could a kindergartner understand this? Is it engaging enough that someone like simplest level is gonna wanna read our email, is gonna look at the sign, whatever it is, think kindergarten. And that's always been like our motto, is it playful, colorful, fun?

Are they gonna get it?

Rachel Brooks (41:25.669)
Yeah. Yeah, that really is. think too, like that's one thing I do like in the service industry, you know, as a bartender for 18 years and that is like the flow of traffic, like even when we would have to set up our bar, we're always thinking about the most efficient way of doing things. And so I do credit some of the service industry experience to,

the planning that I'm that I, you know, have in place now. I'm not saying it doesn't not doing a great job of it. I wouldn't say it's like, I figured it all out. But I think that the service industry about that part of it, you know, did set me up a little bit better than maybe the average person. I don't know. But it is all just it's got so many things to think about so many layers of things. So yeah, but it's cool. It's rewarding. It's fun. It's fun once you get it.

Stephanie Alston (42:12.581)
Okay.

Rachel Brooks (42:15.503)
Once you kind of get the swing of it and you see that it's working and that people are understanding or, you know, whatever, then it's cool. It's like, yeah, this is great. It works.

Stephanie Alston (42:23.047)
Yeah. Well, this might be like a pivot to Rachel, but I had a question about like how you're navigating memberships and what that's looked like with hiring eight new teachers and like waiting for the revenue to catch up when you're launching a new space. And it's like, you're not fully at capacity with a full schedule and a second level of the building day one. So with like taking on new expenses and even like, it sounds like you renovated a little bit, like had contractors in there getting the space ready.

What has that looked like with, is everybody still just on the regular membership they were on before? Or have you seen an increase in members? Does that make sense what I'm asking? The difference between what you're bringing in versus what you're having to spend to make this happen.

Rachel Brooks (43:04.059)
Right? Yeah. I mean, there's I mean, it's just going to be a deficit for a while. That's just kind of what it is. But we're I think the timing of it was huge. Like, would I have done this in the summertime? Absolutely not. We would not have opened up the second level of I would have negotiated, you know, something different, I would have had to because summertime is not the time to do that. But we're going into the busiest time of year, which is helpful. you know, we're

about to have the, you know, God willing, the influx of people in January and new memberships is this is when it all starts to ramp up. So the timing is lucky and also intentional too with like when we were planning on doing this. I'm not starting off with a double schedule right away. There's no way that's impossible. That's crazy. I've added how many classes I've added like three or four new classes. I've done a shift. like the shift, it started with just the shift of

You know, okay, the downstairs studio is now the heated one. The upstairs is the non-heated one. So what classes am I taking from downstairs that were non-heated and bringing them upstairs? And what classes am I switching to heated, keeping them downstairs? So it started off with a shift of like, now these, this handful of classes is heated staying downstairs and there is no replacement for them non-heated right now.

And it's also helpful too that this timing is in the coldest part of the year. So not many people are that I'm trying to upset the least amount of people as possible for like, okay, it's cold outside. So you might be okay with being heated, even though you're not a heated yoga person, you know, while I slowly build out the non-heated offerings upstairs. And so not every new teacher that we've brought on has a class right away. They're subbing right away. They're in there, which is actually a really good, that's a good way of like kind of integrating into the community.

subbing the different classes that are within your scope and taking classes too. like, you know, within the next three months or so, all the new teachers will have a class, but this has been a very slow gradual rollout. There's no other way to have done it really.

Bonnie (45:11.366)
Mm.

Bonnie (45:15.91)
Okay, I love this. I love both of these. Both of these examples as like the growing pains and joys, both.

Stephanie Alston (45:27.918)
Yeah, think about owning your own place again.

Bonnie (45:32.326)
I still stand pretty firm on maybe in 15 years. That's when I would put that timeline out there. I think because of all the work that I do online, my interest would be to, if I ever own a studio, that I would like that studio to not be my revenue.

and that I would want to design a studio that is both strength and yoga and spaces and that includes like one-on-one experiences, but that it really supports the people who are working there. So it's going to be, the staff is maybe going to be smaller too. And that the people who work there, it's like a full-time.

It's like where they really can be compensated where I'm not looking for that to be my sole income, which is different than where you guys are and what you're like, how you're running studios. So I think that's for me at this moment. I'm like, that would be an amazing, like that's my dream. If I'm going to run a studio, I want to run it that way because then I can approach it in a different creative lens as well. If I can make money and support myself through other things and that can support me in ways, but I'm not looking for it to be like the thing.

Rachel Brooks (46:48.165)
and make money and support myself.

Stephanie Alston (46:54.158)
That's it.

Bonnie (46:55.524)
which gives me a different availability to support others through it.

Rachel Brooks (47:01.149)
Yeah, I think that's smart, for sure. think with anything too, go ahead.

Stephanie Alston (47:06.785)
I was just saying that's a beautiful concept. it be like this. I picture it being smaller and intimate. Like I see like what I'm doing and I think Rachel, it sounds a lot like yours too. Like I'm a general public studio that it's like a lot of what we're offering is like very introductory continuously, like preliminary practices that people are always trying us out for the first time. But it sounds like what you're saying, Bonnie, would be so much more like not that

couldn't be introduced to it at your studio but that it's like there are some full-time people here like this is their place to grow into that full creativity of bodywork.

Bonnie (47:43.522)
Yeah, I definitely think it'll be a place for people to find yoga though. So definitely, and I mean, I would love to have like two practice rooms so that there's like space for workshops and space for different types of offerings, but that has gym space too. So it's still Boudique kind of experience, but with a range of offerings. So, and I am such a proponent of yoga as far as like the movement space, like yoga not being the only way.

and to help yoga teachers have the training to integrate more than one thing into what they're doing and so to really support teachers to do that and to understand multiple aspects and to weave that together and in their way. I think that's always my hope is like, don't do it like me, bring your flair to it, but let's meet in a vision of why we're doing it.

Rachel Brooks (48:42.811)
Yeah, sounds cool. I can't wait.

Bonnie (48:45.451)
I mean, you know, check in with me in 15 years. We'll see where we're at. Talk to Stefan too.

Rachel Brooks (48:51.421)
you

Stephanie Alston (48:53.407)
Yeah, you my dream right now and the new co-owner this too is like my current lease on the building because we rent our space that my current lease is up in four years and that's like part of why we did the timing of the co-ownership that way. If they said at the end of four years, I want to be ready to sign another 10 year lease like.

let's set ourselves up over this four years, like just build and build and build and like establish so strong that then it's like, I can look 10 years out and step away more and be like, you all are running it and this is like now a smooth, that's my dream. That's what we're gonna call in is like, this is a smooth running thing that like, I don't have to be present all the time to really make it thrive.

Bonnie (49:12.912)
Mm.

Bonnie (49:23.206)
Mmm.

Bonnie (49:37.422)
Yeah. Yeah. I think that's the part with it, with a potential studio ownership too, for me, if I'm like, if I do that, I, and I feel like Steph, when you first were opening a studio and you had a mentor who you worked with and who was like, okay, what's the blind spot that you have? Like, where is it that you want to do things and not want to do things? I'm like, I know some things that I don't want to do. So like, I want to be able to, I think hire people to do those things because also there's other things that I'm doing that I don't want to give up. And so how do I,

Rachel Brooks (49:38.705)
that for you.

Bonnie (50:06.726)
like have support in holding those spaces. And even, you know, I think kind of like what I alluded to is like the, current events is like, how do I, how do I scale and support the people that I am already working with by perhaps getting other help that supports me so that I can, you know, really ultimately create the customer experience that has the most flow.

Stephanie Alston (50:29.256)
Yeah, and I love what you said there, Bonnie, of like, there's things you don't want to give up doing. And you know, right from the beginning, you're going to hire other people to do some jobs. I think that's what I'm noticing as a theme overall is like, ask for help. Have these conversations, ask other people who are doing it, like, don't be afraid to, like, you can't wait and just think and think and think to the point of inaction. Like Rachel said, you got to build the thing and then go.

And just get started and then see what you need as you go along with it. But asking those people around you, like I did even looking for a partner. started a year ago. You know, like what would this look like? How would this work? And would you be interested in and letting yourself have the time to develop? Like who would my dream be? I have an advantage Bonnie of online studio right now and knowing what you love to do because that experience

Bonnie (51:01.862)
Mm-hmm.

Rachel Brooks (51:17.123)
Let me

Stephanie Alston (51:27.111)
will translate into, I mean it is a business, you're going to translate that into an in-person physical model in 15 years in this really beautiful way with a team ready to go. You will know the people around you that are that energetic, yes I want to work with these folks.

Bonnie (51:36.176)
Duh.

Bonnie (51:44.198)
Totally. Well, and I'm like, if I'm traveling around to places and renting space, sure, I could still do that for things that I'm doing, but what if I have like my own space that's like beautiful that I'm like, I will host the things here. We have double rooms. So like yoga can continue and strengthen like, and then we will like be able to have the things just like in-house, like that's super cool. love that idea, but I think even to a point, so something actually here, I'm going to share, I'll share something as exciting for me for business land, in the same.

Stephanie Alston (52:11.973)
Yes?

Bonnie (52:13.634)
in this same vein of asking for help and support, but also not trying to rush things. And I think that's also the theme. We're like, okay, Rachel, you weren't looking to expand and like, okay, yeah, I guess I'm doing the thing. And Steph, you're like taking a year to really hone what this, who you want to step into partnership with. I think in my experience this fall of rate in the middle of...

of Flow School, offering Flow School online. So I have a Flow School online for yoga teachers and in person, and it is my best life. But in the middle of it, at the very end of one of the calls, I got the news that my mom died and I was on the Zoom call with them. And so you can totally went back and listen to it. You can hear that my son comes into the room and tells me that my mom died. And I'm just like, wait, what?

And then I like tell everybody like on the Zoom, I'm like, I have to go. And like, it's so wild to me that that's like, that's like what, that's like in the middle of business time. And then, you know, all of the things. And then like later I was, you know, that I zoom forward even two months and it's in November, this past month that I was teaching, I was in person flow school here in Portland.

And I knew that my grandma was close to death and my dad like messages me and he's like, well, you know, grandma has passed and I'm in the middle of teaching flow school. All right, so here I am this fall where like, and she was 98 and her husband was a hundred and died earlier this year. Like it's a different situation too, but I'm like, I am teaching flow school and like,

Two people have like, I found out that they have died, right? And a year ago, flow school, found out that my lover's dog had cancer and it was like not, it was gonna be going downhill. I found out that during flow school. So I'm like, apparently I'm doing flow school with my life. You have like these big life things are happening, right? And this is online and in person. And so in my consideration of being like, how do I hold life things? And I love,

Bonnie (54:20.93)
I love this experience of showing up for teachers and the impact that Flow School is having on teachers figuring out how they want to be a teacher and how they want to own their creativity and their voice and to step into themselves as a leader and to hone their craft. And it's really a beautiful thing to support and unlike anything else out there.

for me to then be able to hold them in that, but also be able to scale that to be like, how can I, like, what are those, those sticking points within my own holding, especially in the online space where I can have more people, but like without making the price point be too high, but be able to like really deliver like where I'm giving them personalized feedback every week. And if there's 60 people, y'all like that.

That like takes me out. But it's also the part that's really transformative. And so it's a high thing that I deliver in that. And so how do I hold that and also change a little bit of the structure of FlowSchool so it can really support them. And I will be going into, in February, I will have an in-person and online starting. So in-person will be in Dallas, Texas. It'll be the 20th time of FlowSchool total.

And then online will start as the 21st time, right? So cumulative, which is wild. And I don't know, I'm like, how have I done it that many times? But it will be the online. So what I've really decided, so this is a long story for this, is I'm like, I actually just should hire some people to help me do online flow school, who I have worked with hundreds of.

teachers, like close to 500 teachers have gone through Flow School and to be like, I could hand pick anybody in the whole world because it's online. And who do I want to pick who has really understood the value of Flow School and been able to personalize it for their practice and been able to like find themselves in it where they've given themselves a lot of permission and growth space and created things and people who are really, really nerdy about it and who are really

Stephanie Alston (56:43.892)
Okay.

Bonnie (56:45.382)
like not self-sufficient, like they'll take action, like on random things that I'm like, I'm not even asking you to do that, but you're going like above and beyond in like what you're doing and how you're meeting this. And so I have, am hiring two people and that's like in process. I've talked with each of them individually and on Friday. So in two days, we're like gonna meet together and they actually crossed over. I let all alumni.

Rachel Brooks (56:56.754)
You're welcome.

Stephanie Alston (57:11.154)
.

Bonnie (57:14.662)
I run the program in a way that I don't know anybody else who does this, but anybody who's ever taken flow school can come back to flow school for free. Cause like I'm going to change and grow as a teacher. Like they can come back and you're going to integrate things through repetition in different ways. Right? So one of these people, it was their second time taking it. And even though I offer it like you can come back as many times as you want, not very many people do, or they say they might, but they may be come back like for one, one week.

But there was a handful of people who will come back and do the full thing and like really integrate it. So both these people have done that. And one of the people, their second time was the other person's first time. So they actually have had a crossover as well, last like a year ago. And so now on Friday, we're all going to get together and I have some onboarding and some like things and some play space. So we're going to like jump into together and some restructuring of flow school in a way I've never done it before with their support. So.

Rachel Brooks (57:45.437)
But the other thing.

Stephanie Alston (58:04.798)
Gosh, yes, but like having a flow school team and congratulations on 20 sessions. That's incredible to like having watched you develop this from the beginning that the impact and the ripples that I think that's created literally worldwide is so cool to see and to

Bonnie (58:14.362)
Ask for help.

Rachel Brooks (58:15.537)
That's good.

Stephanie Alston (58:33.756)
and like see you now at this stage where, okay, I can make this a team experience. Like I have other people that I've trained that have worked with me that I can trust to build this into something that it, like, it does require so much of you. You give so much of you, your heart and your mind and you as a resource to people individually throughout Flow School is such an amazing value. But yeah, that's a lot, 60 people in Flow School. Like, I think it's incredible that you're gonna ask.

or bringing in, you already have asked, but have these people come in and like build it out?

Rachel Brooks (59:11.171)
exciting. Congratulations!

Bonnie (59:14.17)
Thank you. Thank you. So I'm like, then we can keep holding it. We can do this. And I won't be like, my gosh. Like I love it. also, my gosh, okay, here we go, six weeks. But yeah, it makes it sustainable. I think that's like the biggest thing. even for us here in this conversation is, I feel like there's pieces of this, of so many people, I think ending this year being like, like.

Rachel Brooks (59:21.681)
Thank

Rachel Brooks (59:28.829)
huge.

Bonnie (59:39.942)
This feels heavy, like things feel heavy. There's a lot of shifts coming. There's political shifts coming. There's been like, like personal life things. There's health and how do we make, how do we make this sustainable and sustainable and that like we're not taken out health wise, that our relationships don't massively suffer, that we're able to like show up for our freaking selves and like be able to actually hold our own hand to our heart and be like, what do I need? And how do I show up as an entrepreneur?

as a woman, as a leader, as a lover, as all of the things and a friend and be able to like do all those things and make it sustainable. And there's not one answer to that. I think it's a big answer. It's a lot of answers, but it's definitely something that I feel like is really important as a conversation within entrepreneurship and what we're all doing.

Stephanie Alston (01:00:28.582)
Yeah. One thing I just thought of as you were sharing your whole experience with flow school is life keeps lifeing. Like that seems very clear that like, you know, people that you're close to are going to pass. There's going to be shifts in life with even kids. Like you just had your oldest go to college. You know, like there's so many things that for longevity, not only ourselves and our personal experience navigating this earth life, but

for also the business. If we're creating something and investing a lot of time and money in building a brand and building our industry and building our community, you know, like I want our studio to have staying power and it does. Like we are established now in this region of Sacramento and like making a name for ourselves. And I don't take that lightly and of all the hours, time and resources that I'm pouring into it, like I want to see it last.

Rachel Brooks (01:01:17.991)
Thank

Stephanie Alston (01:01:23.139)
for as long as it can. And I think to have that eye on it of like, what is going to help me keep showing up for 13 years? What is gonna help me get to that end of this four year buyout phase and be ready for another 10? know, like those questions need to be considered aside from the exciting, this is shiny and new and I'm launching a new business, but I see so many people like whoop and then crash. know, like they build up fast and then they slam because you just don't realize like how much.

time and energy and other people it really requires to make it successful.

Bonnie (01:02:02.872)
It's all so much slower. Business time is different than regular time.

Stephanie Alston (01:02:10.635)
Yeah, it's a long game. Like, truly, know, and Rachel, you spoke to this too. We're looking at, and I think some people might come into listening to this conversation looking at like where we are now. And Bonnie, I think you talked to that a lot really well. It's like, don't just look at me as I've reached this part of the dream. Like this was years in the making and the thinking, planning and the manifesting. Like Rachel, you said your studio has been there since 2017 and you kept your eye on that space upstairs.

But still when it finally became available, it was like, now, okay, now we're doing this. And I felt similarly here with the studio, know, just keep in mind what you're about, I think for a long time and just keep like that vision long-term before all the opportunities come up and don't worry about them happening overnight. And even, you know, as you expand and grow, like, Bonnie, I don't know, you can speak to this, like.

Rachel Brooks (01:02:44.173)
You

Bonnie (01:02:44.71)
Mm-hmm.

Stephanie Alston (01:03:05.6)
Did you ever think about what that was gonna look like when you got to session 20 of flow school? Like when you start? No.

Bonnie (01:03:10.8)
No.

like number one, was like, Ooh, let's do flow school. And I was like, I'm going to do that again. And then I keep over there. Okay. Well, I guess I'll do it again. and yeah, I thought I was, you know, last fall I did flow school online and I thought that I wouldn't do it again until next fall. And I was going to really restructure them like, okay, maybe I'll separate this out in different modules. But ultimately what I've come back to is like, no, cause the odds of people coming back for another module that I feel like is really actually important for them to hold along with.

Rachel Brooks (01:03:18.333)
Thank

Bonnie (01:03:43.332)
like what I teach in flow school there. And if I were to separate that, like people won't come back for those separate things. And they really are so complimentary that I think they need the whole, they need the whole experience. and so I'm, you know, offering it in February and then I'll probably offer it in the fall. So I'll do it twice a year where in the past I've done it three times a year. I'll do a winter, a spring and a fall. And so there's always like a fluctuation and there's not ever been a plan. been like, okay, let's do this and let's do this again. And then.

jumping to in-person, which is like super powerful, then that has impacted and made online even better because like you have to like show up if you're gonna be in person. Like there's no hiding when everybody's looking at you and you have to like do the thing. And because in-person is so magic, I know the gifts that I show up in the room with.

Stephanie Alston (01:04:19.985)
I'm

Bonnie (01:04:39.462)
And I know how much I show up. 100 % with everybody there for like nine hours a day, basically for like five days in a row. So it's like, there's not a shortage of me in the room. and so it's, it's very much a drop in for me. So yeah, it's always just a, we're doing this next and we're doing this next. But ultimately now I'm like, okay, now I want to keep going. Like now I'm like, okay, what are we doing next year? Okay. And the next year after that. So now I have a little bit more.

Stephanie Alston (01:04:51.444)
Yeah.

Bonnie (01:05:09.414)
capacity to look forward where at the beginning it didn't, like it doesn't matter. And in some ways it doesn't now too, but I think I just fully trust. I'm like, no, I'm on the path. Like I know I'm on the path that I need to be and like, and it like, it's going to be okay.

Stephanie Alston (01:05:25.938)
Yeah, that, it's exactly that. Like it's evolving along with you, but you know you're on the path. And I think it's felt like that too. Like I've always kind of known and you've coached me through all these transitions. Like I've known what I really cared about. And so that helped me know when to say yes and no to different projects.

But ultimately, every year is something new. As this business grows too, I'm like, well now here's the thing we're going to figure out. And then next year, I don't even know, two years from now, four years from now, and I'm open to that. It's like this surrender of the process I can't control necessarily and won't know exactly what it's going to look like, but I'm going to keep evolving with it. And now I can start planning a little further and a little further because I know what feels like that full

body, mind, heart, yes, like I'm in this.

Bonnie (01:06:16.536)
Mm-hmm.

Yeah. Okay. Thank you for letting me share for like online things.

Stephanie Alston (01:06:22.194)
I really

Stephanie Alston (01:06:26.642)
Of course. I need go get my phone charger. I thought my phone was charged enough, but it's in the other room.

Bonnie (01:06:32.588)
Okay, go get your phone charger. Rachel, I have a question for you. with your, like I think with the idea of end of year and money things and taxes and what could you share, especially having owned studios for so many years now too, like what can you share about like the things to think about at the end of the year in regards to money and taxes?

Rachel Brooks (01:07:01.639)
think number one is don't think about it at the end of the year. Because that's too. I mean, even in like October is usually when I go through and start making sure that we have the proper addresses for all the contractors just because that's that's like a few months ahead.

Bonnie (01:07:06.798)
Okay, fair. Yes.

Rachel Brooks (01:07:27.581)
to ensure that I have a current address for everybody, because that's something that needs to be thought of every year. getting 1099s out on time is a huge part. because we do have such a larger staff, it always is a little bit messy. And so I've just learned over the years to really get ahead of it and start getting proper information, everybody's updated information.

Bonnie (01:07:33.542)
Mm.

Rachel Brooks (01:07:57.881)
Several months prior and then you know depending on the structure of your business You know, you're gonna owe money at the end of the year and so You need to be thinking of like in the first quarter and second quarter like Preparing and making sure that you are having reserves. So like I'm an escort

But we, so we do pay some quarterly taxes, but it's a pretty small percentage like that happens quarterly. It's an employment tax essentially, because I'm the employee. But at the end of the year, there's always, you know, there's always money that's owed.

at least in my case, so, having enough reserves and planning. like, as you go into this busy time, you know, in art, in my industry, at least in Portland within Portland, I can't speak for every yoga studio everywhere, but I feel like it's, it's pretty across the board that January is really when you get hit hard. And that's just due to the nature of like new years and people having resolutions and wanting to get, you know, take care of themselves better.

Also because it's winter time and so indoor activities become more popular. like when you start to hit your busy season and as you see things start to peak, that's the time to really start saving away and putting money away and preparing yourself for the end of the year when you owe money, you know, and also just setting yourself up for anything that comes along the way, you know, anything that needs to be repaired, things like that. So.

Biggest advice is don't wait till the end of the year to start thinking about things. So at least like, you know, when you hit June, like you should be, you know, starting to plan if not earlier than that. So, yeah.

Bonnie (01:09:28.378)
Yeah.

Bonnie (01:09:33.99)
That's a very fair answer. You're like, actually it's money all the time. We think about it all the time.

Rachel Brooks (01:09:40.409)
Kind of, yeah.

Bonnie (01:09:48.196)
Yeah. either of you have a fund where you put away money for taxes to pay so that you're prepared for that and it's a separate account? do you just like, you're like, well, we'll just see what's in the account and we'll just pay from there. Or you like use the January money from like people to like pay. Like how do you organize that?

Stephanie Alston (01:10:11.973)
We have a savings account, so I don't know that it's necessarily just for taxes, but we kind of anticipate like, okay, what I'm going to do for these things and make sure that we have some money reserved. Similarly with payroll, like we have a separate payroll account that money goes in there so that when people's paychecks get paid, it doesn't come out of operating. So we are always kind

Rachel Brooks (01:10:12.116)
Steph?

Rachel Brooks (01:10:18.471)
What?

Stephanie Alston (01:10:34.297)
that and siphoning aside what we need.

Bonnie (01:10:38.01)
Yeah, how about you Rachel?

Rachel Brooks (01:10:40.453)
Yeah, it's the same account, same same savings, just it's in savings, just putting stuff away in savings. So that's the same, you know, so whether it's when the opportunity for an expansion comes up, there's, you know, reserves there, whether it's for taxes, it's just like, it's just whatever there might need to be. It's just being put aside. Yeah.

Bonnie (01:10:59.386)
Yeah, yeah, past time. Just cause like money parts, feel like are such an unknown piece for so many people and like the organization of money. And I use the system profit first for my money organization and have loved it and have used that as my system for gosh, since like almost the beginning. And so it's a percentage of my incoming money that divide up between like my personal expenses, my business expenses.

taxes and business profit. And so I have like the starting point that you can then wiggle from is like 100 % is going into an incoming money bank account. There's one bank account that does that. Then every week I divided out and put the starting suggestion is like 50 % into your personal expenses, 30 % into business expenses, 15 % into taxes and 5 % into like business profit.

And then of course, all those percentages could be wiggled depending on what your business is or like where the money needs to flow or not. but it has been so huge, especially as I've talked to other business owners and entrepreneurs who maybe aren't necessarily running a studio, but I'm like, I have thought I'm like, I wonder if that's how you can do it with this studio then. I mean, we, could, you can open up. So I like literally have accounts that I have named those things with the percentage as the title of the account. So I know where I'm like.

organizing my money. But just there's a lot of people who, when I talk to them are like, I don't even know how to do this. Or when I talk to people, like, my gosh, I don't even know how I'm going to pay taxes. Where for me, that's like untouched money from the very beginning. like, I put that aside and it's like, I want zero stress around that. Zero stress, if at all possible. yeah, that's just a question. was like, how does that work?

Stephanie Alston (01:12:49.28)
Yeah.

That's a cool system. Part of that. And I think especially if you are like a solopreneur, like in the way that you are that your business and personal is like really intermixed. That sounds like a great way to do it. Both when I've run my. my gosh, what is the word for it? So proprietorship. I'm like, I know people who've done LLC right now are studio set up as an S corp. You know, there's some different elements to each of those kinds of businesses, but the best thing I've done is.

creating a separate business account, like a separate business checking like right away went and got an account that like that money was totally aside from my personal money and that's worked out well with the business. Now it was also like it has its own checking account. That's like our main operating account. We have multiple savings accounts that we use for different things like payroll and like rainy day fund.

Bonnie (01:13:47.525)
Yeah.

Stephanie Alston (01:13:48.603)
also have a cash flow manager account. And like, I was not super familiar with that before running the studio on this scale, but the cash flow manager is like a line of credit. I mean, it is a line of credit, but it's not like revolving debt with a credit card. The cash flow manager works like actual money. Like I can pay payroll with it. I can pay bills with the cash flow manager. But we sometimes like will use that money for expenses before the revenue comes in to pay it back. like that's.

another really creative way to look at like, where am I getting some money from if I don't have the capital? So I think there's a lot of things to consider depending on what business you're running and what the structure is, how you want to manage all of the places that need to go.

Bonnie (01:14:35.76)
Wow, I've never even heard of this before. I love it.

Stephanie Alston (01:14:39.29)
Yeah, like we have a credit card. I have a business credit card that like my manager and I both have, and that's like pretty traditional, you know, whatever the crazy APR is, and we pay it off every month. But the cashflow manager was nice because there were some times, I know we talked about last time getting grant money, but there were some times when I thought like, shoot, I'm going to have to get a capital loan just to be able to pay payroll for a couple months while we wait for like the busy season or whatnot.

And now it's like, okay, we have this cash flow manager line that I do have to manage. Like it needs to get paid back like at an interest rate too, but it can operate like cash in the world, which is really cool. So I'm grateful to know that some of those things exist because yeah, you're not always gonna just have like the money on hand upfront. Like I maybe thought before I ran a business, I was like, I have to make all the money first before I can spend it. And it's usually the other way around. I'm spending the money, then I make it.

Bonnie (01:15:23.334)
Yeah.

Rachel Brooks (01:15:34.203)
Yeah, yeah, very dependent on the time. Like for me, for us, it's dependent on the time of the month, dependent on, you know, what events are going on. And yeah, all those things factor into when the flow is in and what time of year you're in, you know, so it's yeah.

Bonnie (01:15:34.874)
That's, yeah.

Rachel Brooks (01:15:52.709)
I think ideally, yes, like you'd be able to do the profit first kind of method and the percentage thing. think that's probably needing to be at a certain stage of establishment within like a business, a brick and mortar, but yeah.

Bonnie (01:16:08.409)
Yeah. Do you do cashflow manager as well, Rachel?

Rachel Brooks (01:16:13.379)
No. No, and just for clarity, my account, my personal is completely separate from the business as well. So it is one account and one savings for everything, but not like that's just business stuff. Yeah.

Bonnie (01:16:16.163)
Okay, this is fascinating.

Bonnie (01:16:27.248)
Yeah. Well, I mean, like in general, we're like business and separate, business and personal, different accounts, everybody. Different accounts, separate it.

Rachel Brooks (01:16:34.781)
you

Bonnie (01:16:38.788)
Like go into the bank, make the appointment, do the thing. Like it's my same bank and my accounts are connected. Like I can do it all. They're on the app together. That's great. But just like separate the money. Yeah.

Stephanie Alston (01:16:50.892)
Yeah, seeing them separate is so helpful. But I think also like what Rachel was saying with having an S-Corp, it's funny because like you are the business. Like an S-Corp is kind of this like next level of an LLC, I guess is the best way I could put it. like,

when I, well, for example, like we had some financial contributions to charities that were personal contributions and then the business had contributions to charity. But at the end of the year, when I filed my taxes, I filed business and personal together and they all look like one thing. So this year, talking to my accountant, she was like, wait, so you contributed to this charity last year? And I was like, no, I contributed to that charity, not the business. And she was like, well, at the end, it all looks the same to the IRS. And was like, this is so crazy to me. Like I do keep them separate.

But the schedule of taxes for the business then goes on your personal. I mean, maybe you don't have to do it that way, but with an S-corp, like that's the main way that it's worked. So it's so funny to me. Like I have employees and everything, but like I am the business.

Bonnie (01:17:50.694)
So interesting. I mean, this is like a case in point of like this, the amount of things there are to learn, think, stepping into business where this becomes like the daunting thing, but also like, mean, even, regardless if you're going to do something online as like a solopreneur sort of experience, like kind of what I'm doing, or if you're going to step into brick and mortar, there's some of it that it's like, it can feel daunting. It might make you like drag your feet to like step into it.

but you learn these little things along the way. And like all of us here have been doing things for a little, you for a while and we're still learning things on the daily. We're like, And so again, there's like not a voice you meet where you're like, now I'm ready. Like you just do it and you keep learning and then you do better when you know better.

Stephanie Alston (01:18:43.525)
Yes, 100 % learn as you go and I am sure there are so many things I don't know yet and in five years these conversations might look so different but one of the biggest things that I know to be true is like you have so many resources like more than you even think you do. There are people around you like when I needed a new accountant I literally put on my Facebook

hey, my business needs a new accountant and it turns out a good friend of mine from high school is a CPA and she's like, we exactly do the kind of business you run. I'm like, perfect, let's do it. And then she's helped me learn all this stuff. I just asked her questions, like how do we do XYZ? And even with having this new partner, I've literally just asked everybody like, hey, you're my lawyer, how do we do this? We also have an HR company that's like an outsourced HR.

but they keep us updated on what's changing with California employment laws. We had a webinar last week where they said, this is what you need to change in your handbook. Here are the new employment posters. With the recent election, here's what's happening. like, I would not know all that stuff, but I have other people around me that do. So just ask the questions that you don't know the answers to, and you probably have a circle of experts around you that you don't even realize are there, and that's been invaluable.

Bonnie (01:19:54.374)
Hmm.

Bonnie (01:19:58.022)
Yeah, I think it is about asking. Because then I think we don't want to look dumb. I think of people who want to step into the gym for the first time, or people who are afraid to come to yoga. Because they're like, I don't know. I don't know if my body can do yoga. And then everybody's just going to look at me. Nobody cares. Everybody is worried about themselves mostly. And so it's a say where you're like, don't want to be the outsider. I want to belong. But it truly is just asking.

Stephanie Alston (01:20:24.347)
Yeah, so the same you think you have to know the thing before you can start, you know, like, I need to be the business expert before I can be a business owner. absolutely. And especially being in business ownership now knowing other business owners. I'm like, we're all just people figuring it out. And there, there are so many people that I love that I'm like, how, do they even stay in business? Like, you know, we're here playing like, think there's so much I learned from other people around me that have been doing it longer.

Bonnie (01:20:46.502)
Mm.

Stephanie Alston (01:20:51.857)
And then I also get to pass some wisdom down to the line to people who are starting off. like it, it's a fun club to be in. Maybe I think you just have the heart and the, know, you kind of build that resiliency and confidence over time, like to bounce back and say, I can meet a challenge and rise and keep going.

Bonnie (01:21:11.044)
Yeah, yeah, it's a gritty experience. like, we're doing this.

Yeah. Okay. I would love to end, I think, with a question of thinking of reflection from this past year. So this all of 2024, which is a lot, a lot of things here. And you can answer this question in like answer any of these questions, kind of like there's a reflection of the year if there's something that you feel like worked really well, that you're like, wow, I'm proud of that in regards to my business.

Rachel Brooks (01:21:39.613)
I'll check the audio.

Bonnie (01:21:47.622)
Or something that you would have changed. You're like, man, if I went back again, I would do this differently. You don't have to answer all of these so you can pick one, whichever one feels most exciting. Or something you felt like you are glad you learned. So something you're proud of, something you would have changed, and some these might have crossover and like something that you're like, wow, I really learned a lesson there.

Bonnie (01:22:14.126)
Rachel, you have something?

Rachel Brooks (01:22:17.245)
that I did my face look like I had something. I mean, I'm proud of the turnover for the expansion. that's, it's a huge accomplishment and it happened, it went smoother. And I think, okay, I'm not retracting, that is it. But I think I'm talk, like I'm proud of how I handled the...

Bonnie (01:22:19.898)
Hahaha

Rachel Brooks (01:22:47.005)
the, expansion, sorry, lost that word for a minute. But, I think for me in the past and, did the second studio a couple of years ago. and it isn't just specific to expansion. but just in general, when in the past, when I have done something,

that's taking something to a next level in a certain way, it's just really not kind to myself how I'm doing it. I'm not prioritizing myself. It's like, this is what it takes to get this done and I am going to die doing it kind of thing. I'm going to just get it done at the cost of not taking care of myself. And so...

I didn't have that luxury this year, so I wasn't in a place where I could even go at that level. And I was forced to go at a pace that worked for me, whether it was physically, mentally, emotionally, and it worked out better than it's worked out in any of the past situations. So I'm proud of...

Bonnie (01:23:57.424)
Hmm.

Rachel Brooks (01:24:02.213)
I mean, even if it was forced upon me, didn't, I like had to, I had to do something. I had to do this in a more mindful and kind way to myself. So I'm proud of that.

Bonnie (01:24:13.986)
Hmm. Let's celebrate that. That's like, yeah, that's big. Thank you for sharing. Fast F.

Stephanie Alston (01:24:25.022)
I'm really proud of our team and the community of teachers that's been built here, that there's some power in that. Like we don't have a lot of time over with employees and I have needed to hire on a couple new teachers and some teachers have left, but it's never been because of like massive regeneration of greenie teachers who just

you know, totally dropped off. It's like most of our teachers have been here for years and I feel like there's a total enrollment and trust now in like what we're doing as a studio where we're going together. So it really feels like that more than ever before. Like we're going together and we've got this good core group. So I'm really proud of that. And I think too on the other side of that coin, the thing I've learned the most is

Higher slow. I've always known that. was a thing people say, always be recruiting. Fire fast, but higher slow. But really learning that people need to earn that trust and rapport with the students before we start offering bigger workshops and events and things. I need teachers to put in their time and show that they're involved. And that's helped me really see the ones that are going to last longer. So yeah.

We invest in each other. Who invests in me, I'm also gonna invest in, and that's been a good lesson for this year.

Bonnie (01:25:55.398)
Yeah, and a good lesson to teachers as well. think that maybe perhaps want to be part of a community and like, like that's it's a mutual investment. So, yeah.

Thank you for this conversation.

Rachel Brooks (01:26:17.213)
What about you Bonnie? Did you have?

Bonnie (01:26:18.758)
do you me to share for my, for me? Okay. I was like, okay, we're talking, talking freaking mortars. What's something I'm proud of for this, this past year learned something I would change.

Bonnie (01:26:36.55)
You know what? I am proud of the end of last year. was like, I want to travel. I want to like take things places. I want to like do more and see how it's received. And so in 2023, had, I hosted the first two in-person flow schools. And then this year I've hosted four and next year I'm looking at perhaps hosting five and a little bit more travel, but just, think I'm proud of the

Rachel Brooks (01:26:37.373)
Elliot, are you?

Bonnie (01:27:04.806)
permission I'm giving myself to dream a little bit bigger and do a little bit bigger than like the Bonnie of like 10 years ago couldn't have even imagined. And I think I'm proud of that permission and the way that that is impacting like myself, but also the way that I'm able to show up for other people because of that, because it.

I mean, it's changing me in that permission giving. So I think that would be one piece that I am proud of, feels pretty big. And I think it's because I also have to, you get to face...

Like I get a face the question of like, well, why the hell me?

Like why me? Like anybody could go anywhere and do anything. like they're doing it with me and choosing that. And so like being able to hold that for myself and not shrink, but actually like lean into it be like, yeah, let's do actually this thing. And that my leaning into it is helping other people lean into themselves and not as like anybody better than just like all of us good together. And that feels really, like that feels really good right now.

Rachel Brooks (01:28:03.345)
that we created.

Stephanie Alston (01:28:20.434)
Yeah, thank you for sharing. almost sounds like a, because I think why me often sounds like a lamentation of like, why me? Am I having this struggle? But it's like, why not me that people would choose to work with me if we can go to Switzerland and run a bad ass flow school that like no other yoga teacher.

Bonnie (01:28:40.838)
Mm-hmm, exactly.

Stephanie Alston (01:28:47.493)
doing something like this and people are choosing to show up for these international offerings, why not me? The universe has gifts to work through me and to take on that mindset for all of us to say, why not me to run this space in this place with these people? It's very empowering.

Bonnie (01:28:54.308)
Mm-hmm. Mm-hmm.

Bonnie (01:29:07.64)
Exactly. Exactly. Well, and I think I like that phrase. I had a flow school teacher once who said she came to flow school and traveled here to Portland. And she's like, that was her. That was her mantra was like, well, why not me? And I love that for her. And I love that as well, because when I went to Ohio and taught some workshops, I was sitting with my friend who was housing me and hanging out with her and her husband. And her husband looked at me as like, there's other yoga teachers who are here and like other people who can do things. So why you?

Like, why did they bring you? And so I got to sit there and answer that question. And I work with so many people who want to build something and have a voice online, be like, well, all of us here, even on this call, we can all teach warrior two. We can all do the thing. So why is anybody else needed and not just us? And why you? And so I think it's something that we get to sit with if we want to build a creative life. I saying, well, why not me? And like,

and let people ask why you and to not shrink from it and to like try out saying why you think you are like a person that's worth like listening to, which is like a lot, it's work. And a lot of like sitting with yourself and who am I and what gifts do I have and having mentors and like being willing to make, the time to dive into yourself to say like, this is what I'm, this is some gifts that I'm showing up with. So it's a lot.

Rachel Brooks (01:30:14.493)
you

Stephanie Alston (01:30:31.855)
Absolutely. And that's the Svadhyaya, right? You're not self-aware if you only see your flaws. You also need to see your strength. Own the divine gifts you have to share. And that is powerful.

Bonnie (01:30:45.894)
Yeah, yeah. I love our conversations. Thank you.

thank you for sharing. For all who have tuned in with us, thank you for being witness to this conversation and for being a part of like this yoga space. If you're here and you've listened to all this, then you're also a yoga nerd. So thanks for keeping us company. And we hope that you're building your best and most dreamiest entrepreneurial life and know that you're not alone in figuring out all of the things.

and that there's other people to lean on and people who have more experience and less experience than you, and that we all are just doing it together. And please reach out, ask for the help. You can message Steph, Rachel, myself, reach out for any sort of appointments. You're like, man, I just need to talk to somebody for an hour. I'm allowed to pick somebody's brain about this thing. Like that's like, we're here for that. We know that we rise together. So please.

reach out, let us know, share this conversation in social media, share it with people who are also studio owners or potential studio owners. Or if you're gonna open a studio with your friend, know, like get some input, like all the things. Rachel Steph, thank you for being here. Thanks for making the space with me. It's always an honor and especially knowing your schedules as studio owners and the things, many things that you hold.

Rachel Brooks (01:31:59.517)
to see others.

Stephanie Alston (01:32:14.376)
All right.

Bonnie (01:32:20.558)
This is like touching so many other people's lives that are outside of our like brick and mortar spaces and is like really impactful time. So thank you for your time today.

Stephanie Alston (01:32:30.988)
Thank you for hosting and giving us the space to share.

Bonnie (01:32:38.138)
Yeah, okay, love, thank you and tune in for next time.