At a recent meeting of the She Owns It business group the two newest members shared their long-term goals for their businesses, YogaFit, owned by Beth Shaw, and the Megawatt Hour, owned by Deirdre Lord.
Looking ahead, Ms. Shaw said YogaFit, which trains yoga instructors, would ideally be acquired by, or would partner with, a larger fitness or education company. “I would love that to happen within two years so that we can accelerate at a much faster pace in terms of better technology, better global channels of distribution, and more systems,†she said.
“Are there other companies that do specifically what you do?†asked Susan Parker, who owns Bari Jay, a company that makes prom and bridesmaid dresses.
“There are a lot of people nipping at our heels - in fact some are gouging at our heels,†said Ms. Shaw. But she added that YogaFit has an edge because it was the first to bring yoga to the fitness industry (the company enters into exclusive partnerships with yoga studios and health club chains, training their instructors in the YogaFit method). “We've built a huge base,†she said.
In 10 years, Ms. Shaw said she would like YogaFit to operate in every country. She envisions a studio franchise model. “All the people who go through our program would be able to open up their own businesses, as opposed to continuing to work out in the field,†she said. “A lot of people open up studios and they fail miserably.†Ms. Shaw, who teaches a seminar on the business of yoga at each of the 12 conferences that YogaFit holds annually in North America, said she would give franchise owners a model for success.
She also said she would remain involved in the business if it were acquired. Retirement doesn't appeal to her, but she said she would love to open a yoga retreat center that would bring people to her and reduce her exhausting travel schedule. “I really feel like I live at LAX,†she said.
“Why can't you do that now?†asked Alexandra Mayzler, who owns Thinking Caps Tutoring.
“I don't feel it's quite time,†Ms. Shaw replied. This month, she will travel to China, where YogaFit is providing teacher training in partnership with a Chinese fitness education company. “There's no one else from my company who can really be that lead,†she said.
Deirdre Lord asked how the partnership came about.
Ms. Shaw said a friend at Zumba Fitness connected YogaFit with Zumba's distributor, who has introduced many fitness education programs in Asia.
The conversation then turned to Ms. Lord's plans for the Megawatt Hour, an online subscription service that helps commercial and industrial clients manage, track and forecast their energy use and expenses. She said she was motivated to start the company by the huge opportunity. Across the United States, businesses that buy energy and ga s in deregulated markets constitute a $300 billion industry and spend another $500 million on brokers and consultants to help them make the right decisions, she said.
Unlike in other deregulated industries, such as telecommunications, real estate, and travel, information does not flow freely. Instead, the industry is fragmented and lacks a technology infrastructure. Given the market's inefficiency, Ms. Lord thinks the Megawatt Hour has a great opportunity to provide businesses with better information and save them money. She said many brokers believe it's just a matter of time before the energy market becomes more transparent.
Looking ahead five years, Ms. Lord said she would love for the Megawatt Hour to become the reference standard used by every business before it makes an energy decision. “We've forecast that we'll build a $30 million business in that time,†she said.
Ms. Parker pointed out that Ms. Lord is something of a serial entrepreneur who enj oys starting businesses (Ms. Lord co-founded Juice Energy, a now-defunct retail supply company that sold green power, in 2006). She wondered if Ms. Lord might be interested in getting another venture off the ground by the time five years pass.
“I'm pretty convinced, at least in the next five years, that this will keep me very busy and very motivated,†said Ms. Lord. But she added, “I'm honest with myself - I am not good at maintenance.†So if the Megawatt Hour enters maintenance mode, perhaps after an acquisition, Ms. Lord said she wouldn't be the right person to run the company. Though she would like to remain involved, for example, as a board member.
We'll check back to see how Ms. Lord, Ms. Shaw, and the other group members advance toward their big picture goals. When do you think is the right time to start planning an exit?
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