How do I assess a training studio’s mix of group classes and one-on-one clients?
Ask for revenue and hours split between group classes and private sessions, then see which trainers carry which. Compare income per hour, how full classes are, and how many private clients follow one trainer. A balanced mix is useful only if neither side relies on a person who might leave.
Begin with a simple split. Ask for revenue and trainer hours for group classes and for private sessions, by month. Divide one by the other to get income per hour for each side. Group sessions may earn more per hour when full, while private work often earns steadier income with less staffing complexity. See which one the studio is leaning on.
Then trace the people. For private clients, ask how many are tied to each trainer and what the notice and cancellation habits are. If one trainer holds most of the private business, that is a retention question, not a numbers question. For group classes, ask about average attendance, waitlists and which classes are marginal. Ask how class sizes are capped and what that cap does to income.
Look at how the two sides feed each other. Do group members move to private sessions, or the other way? Ask how packages are priced and whether prepaid sessions create obligations a buyer would inherit. Your accountant can tell you how prepaid balances appear in the books, and your lawyer can review client agreements. Ask also about trainer pay by session type, since a trainer paid per private session may leave with their clients.
Key takeaways
- Split revenue and trainer hours between group and private work, then compare income per hour.
- Identify which private clients are tied to which trainer.
- Ask about prepaid packages, which a buyer may inherit as obligations.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is an income statement?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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