My yoga studio was a FAILURE.
I am QUITTING teaching yoga.
It is time to GIVE UP the dream of being an entrepreneur.
As I have spoken--and even thought--these words over the last few weeks, they haven't been accompanied by self-loathing or doubt. Actually, I have felt relieved. I can stop beating my head against the brick wall, stop trying to make a way out of no way, stop hoping and praying for a better future. I can accept and embrace what is.
The yoga studio I started in my neighborhood attracted a fraction of the people and revenue it needed to be financially viable. Therefore, I had to invest several thousand dollars of my own money over the 15 months of its operation to keep it going. I have been fortunate that was even a possibility. It surely wouldn't have been the case even a year ago. But this fall, when I forecast the amount I would need to invest in 2016 if sales did not increase (and I had every reason to believe they would remain about the same), I was looking at shortfall of $48,000 for the year!
I could buy a luxury sports car for $48,000.
I could pay off my final student loan, and still have $20,000 left over.
I could put that $48,000 away for retirement or pay down my mortgage faster.
There were a lot of economically advantageous ways to spend almost $50,000. Keeping a yoga studio open just isn't one of them.
How did I manage to get myself into a situation where my studio was operating at a $4,000-a-month deficit? Well, there is this concept I learned about in my entrepreneurship class--the balance sheet. You list all your expenses and all your revenue sources, and hopefully each month there is surplus of revenue over expenses. That never happened with Serenity Place DC.
From the beginning, I spent more than the studio brought in. Why? It is a very bad habit that I developed in my personal finances. Now it is time to break it, and that means shutting down the studio and taking away a great community resource. But the alternative is $50,000 in cash to pay rent and the teachers and staff who help me keep the place going. I can think of much better ways to spend that kind of money.
Crystal Moore began her wellness quest in 2003 after being diagnosed with lupus. Her quest has led her to embrace yoga, faith, exercise, healthy eating, and relationships. Share her journey.