Yoga Studio Partner Conflict of Interest

Yoga Discussion General Yoga
#1

I’m about to open a yoga studio in 5 days with a new partner. She’s the yoga expert (past studio teacher/owner, lets call her Kim) and I’m a devotee, student, her mentor and entrepreneur who placed 75% of front money (we are 50/50 in the business). We have been aligned in all decisions except this one:

She has a student/teacher (lets call her Jane) who she wants as a teacher at our new studio. This is the one teacher we disagree to hire out of 8. Jane had been waiting for months for Kim to open our studio, we got a few months delayed and in the meantime Jane started giving private classes in her area. Then, a couple of months ago she started a small retail space and has a few students but its growing little by little. She’s a very good teacher, they’re friends, they speak all the time and Jane proactively sent Kim her available schedule to teach at our studio a few weeks ago. She want to support Kim in anyway she can. When Kim sold her shares of her previous studio, Jane stop teaching there.

Kim assume (without consulting me first) I wouldn’t have any problem hiring Jane and that her having her own studio was OK. When Jane was just a teacher I did not had any issues with this. But, now Jane as a studio owner I believe she has a conflict of interest, she is young, smart, good looking and well educated. I express my concerns to Kim and told her that Jane should be the one making her decision, (1) either keep her private classes business and close her studio in order to hire her at our studio, or (2) keep her studio, not teach at ours and hope we can work something out as we grow our business in her area.

Kim got very emotional, she cried a little and left. Wrote me a long email today arguing that this was a harsh decision, that she would take the risk of loosing a few customers in case Jane eventually “took some on them”, that I’m right but ONLY from the business perspective, that this is very personal to her, that it should be an honor for her to have Jane as a teacher not a fear, that why have such strong limit on her, that if we work with faith this type of things shouldn’t be obstacles in our path… etc.

I always think things thoroughly before expressing myself, consulted a few men, women, business owners and single professionals to have an overall view, they all agreed this posted a threat on the new business, independently of Jane’s impecable code of ethics she may had, all business (yoga included) are exposed to employees going out with their built clientele and establishing their own business. But this happens in order, not with the employee having the business already running.

What would be the most proper way to handle this and most importantly, what position makes more sense? Kim is the best teacher/owner in my area and our studio promises to be by far the best, with the best facilities, teachers and vibe. I’m always open to adapt but I need some strong arguments of why agreeing to hire Jane would be the best decision for the new business.

#2

Fantastic question. And it brings to light the difficulty in distilling a spiritual practice with a business model. The short answer is to refer to the articles of partnership the two of you carefully mapped out as you thoughtfully came together in business. Partnerships are difficult enough as it is but problematic when there are no such agreements before establishing the entity. However the two of you agreed human resource/staffing issues would be handled that is how they are handled, period. Otherwise your document is worth only the few cents it costs for the paper to print it.

In the grander scheme, no ethical teacher would take students from another business in which they are working. That means Jane does not say “I teach nearby, come see me” or “I do privates at home” or I’m leaving but you can still study with me down the street". These things are not ethical and therefore do not befit a person on the path of yoga. HOWEVER, should students feel they want to follow Jane of their own volition, that is completely up to them and a cost of doing business. Don’t like it? Teach all the classes yourself or try to set up a non-compete which is basically unenforceable anyway.

To me it makes no difference whether Jane has a business now or later. It also makes no difference wheather it is or is not an “honor” to have her teaching there. There are only two things that matter; is Jane a helpful asset to serve your prospective students and ultimately your business entity and does Jane possess the ethics required of a teacher of yoga.

#3

Thanks so much Gordon.

I like your answer, direct and to the point.

I understand and agree with your feedback. With your input, I’ll not only making a decision I feel comfortable with, but taking the proper steps on our business relationship and how to go about making these type of decisions in the future.

Thank you again, I truly appreciate it.

#4

The more popular Jane becomes at your studio, the larger the potential loss is if she ever gets disgruntled or just decides she only wants to teach at her studio. Her dedicated students will follow her from you studio unless they have a multitude of other teachers they like or the convenience is a huge factor.

You need to spend time and money developing and popularizing teachers. So effectively, you are spending your time and your money developing somebody else who already has an existing business…

The only caveat I would make in this type of situation is if the teachers studio was so far across town that the realistic attrition if she left would be minimal.

Yoga is yoga but business is business.

Maybe see if there is opportunity for some sort of Joint Venture but if she is within 10 miles of you, I’d say it’s bad business.

#5

[QUOTE=vipassana;86156]Thanks so much Gordon.
I like your answer, direct and to the point.
[/QUOTE]
That’s how I roll.

#6

[I]no ethical teacher would take students from another business in which they are working. That means Jane does not say “I teach nearby, come see me” or “I do privates at home” or I’m leaving but you can still study with me down the street". These things are not ethical and therefore do not befit a person on the path of yoga. [/I]

Please take ownership of broad brush statements like that. [I]I think [/I]it is not ethical.

Sounds like more of a moral issue up and until you and the teacher have accepted this in a contractual arrangement.

These contracts are common in the Yogic teaching field, and the ones I’ve seen have a time limit. There is not time limit on ethics. Morals however can be made to fit.

I am asked by new students every day: Do you teach anywhere else?
How does one answer? Not at liberty to say?
I don’t do privates but what if I did?
How would I develop them?

Interesting but the ethics are debatable. That [B]is[/B] what contracts are for.

#7

I’ve already taken ownership, Mark. The post is logged under my name.

As for responding to questions by students, one answers them directly … Yes I teach at Venue A and Venue B.

With regard to building a business of private sessions … when I am at the studio which is furnished, lit and heated by the pocket of the owners then I am there working the business I hold in that venue. When I am at Wholefoods or in the park I am working my own business at whatever venue I please - including but not limited to the aforementioned studio.

If the studio doesn’t offer Privates then of course you’d take such business elsewhere.