Where the money actually goes

People starting out overestimate equipment cost and underestimate everything around it. A six-reformer room might be $25,000 of machines against $50,000 of lease deposit, build-out, flooring, mirrors, HVAC, signage and software.

The other consistently underestimated line is working capital. A studio rarely covers its costs in the first six months, and the businesses that fail usually do so because they funded the fit-out and not the runway.

Typical startup budget for a six-station studio
LineTypical rangeNotes
Lease deposit and first months$12,000–$30,000Varies most by market
Build-out and flooring$15,000–$45,000Existing fitness space is far cheaper
Reformers (6)$18,000–$30,000Before quantity discount
Other apparatus and props$4,000–$9,000Chairs, barrels, boxes, mats
Mirrors, sound, HVAC$3,000–$10,000
Software, branding, launch$3,000–$8,000
Working capital$15,000–$30,000The line most often skipped

The number that determines viability

Revenue per reformer per week is the metric that decides whether a studio works. A machine running six classes a week at 70% capacity and $25 a head generates roughly $105 a week per station.

Against that, each station carries a share of rent, staffing and overhead. Run the numbers per station before signing a lease — it exposes an unaffordable rent faster than any other calculation.

Equipment decisions that compound

Buy identical machines. A matched room means one cue teaches the whole class, clients move between stations freely, and you hold one set of spare parts. Mixed rooms accumulate when studios expand piecemeal, and every teacher pays for it daily.

Buy for the duty cycle you will actually have. Domestic machines in a studio degrade visibly within a year, and they degrade in front of paying clients.

Take the quantity pricing into account when sizing the first order. At six machines the 15% tier applies, which on a $24,000 order is $3,600 — close to the cost of the flooring.

Sequence the opening

Sign the lease only after you have teachers. Teacher availability is the binding constraint in most markets, and a studio with a lease and no instructors burns rent while it recruits.

Pre-sell memberships during build-out. A studio that opens with sixty founding members behaves completely differently from one that opens empty, and the marketing cost of those first sixty is far lower before opening than after.

The eighteen-month cash view

Most studio failures are cash-flow failures rather than demand failures. A studio can be filling classes and still run out of money if the fit-out consumed the capital that was meant to cover the first year of rent.

Build the model month by month for eighteen months, not as an annual summary. The shape almost always shows a trough somewhere between months four and ten, and knowing its depth in advance is the difference between planning for it and being surprised by it.

Illustrative first-year shape, six-station studio
MonthMembersRevenueCostsNet
1–240$4,800$12,000−$7,200/mo
3–475$9,000$12,500−$3,500/mo
5–6110$13,200$13,000+$200/mo
7–9140$16,800$13,500+$3,300/mo
10–12165$19,800$14,000+$5,800/mo

Pre-selling changes the shape of that curve

A studio that opens with sixty founding members behaves completely differently from one that opens empty. Acquisition is also cheaper before opening — a founding-member offer during build-out converts far better than the same offer in month three, because scarcity and novelty are both working for you.

Start selling as soon as the lease is signed and the opening date is credible. Six weeks of pre-selling can remove half the trough.

The order that reduces risk

Teachers before lease. Teacher availability is the binding constraint in most markets, and a studio paying rent while it recruits is burning the working capital it needs later.

Then lease, then equipment, then pre-sell during build-out. Equipment ordered before a lease is signed becomes storage you are paying for.

  • Secure at least two teachers, in writing
  • Sign the lease
  • Order equipment — six identical machines reaches the 15% tier
  • Begin pre-selling founding memberships immediately
  • Build out, install, and open with members already booked