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Scaling with Purpose: Fitness Franchising with Scott Capelin · The Heart-Led Business Show

• 0:01
  Speaker: Welcome to The Heart-Led Business Show, where compassion meets commerce and leaders lead with love.
• 0:09
  Speaker: Join your host, Tom Jackobs, as he delves into the insightful conversations with visionary business leaders who defy the status quo, putting humanity first and profit second.
• 0:20
  Speaker: From heartfelt strategies to inspiring stories, this podcast is your compass in the world of conscious capitalism.
• 0:29
  Speaker: So buckle up and let your heart guide your business journey.
• 0:36
  Tom Jackobs: Well, welcome back to the Heart-Led Business Show, where we put the heart into hard work.
• 0:41
  Tom Jackobs: Today, we're soaring down under and zipping across the globe to meet the remarkable Scott Capelin, the visionary founder and CEO of inLIFE Wellness.
• 0:51
  Tom Jackobs: With over 27 years in the wellness whirlwind, Scott's journey of entrepreneurship is as inspiring as a sunrise over Byron Bay.
• 0:59
  Tom Jackobs: So join us as we dive deep into the heart-led approach to business, building community, and showing how success can truly lift us all.
• 1:07
  Tom Jackobs: So let's get ready to ignite some insights.
• 1:08
  Tom Jackobs: And Scott, welcome to the show.
• 1:10
  Scott Capelin: Thanks very much, Tom.
• 1:11
  Scott Capelin: It's great to be here.
• 1:12
  Scott Capelin: Thank you for having me
• 1:12
  Tom Jackobs: Yeah, absolutely, Scott.
• 1:14
  Tom Jackobs: And I'm really excited for today's conversation because I always like to talk to other bald men, of course, but also to other fitness enthusiasts that have been in the game as, as long as I have.
• 1:26
  Tom Jackobs: Although I you beat mine.
• 1:29
  Tom Jackobs: I, I think mine was only 17...
• 1:31
  Tom Jackobs: 18 years, 20 years in health and fitness.
• 1:34
  Tom Jackobs: So you're 27 years, so that's pretty amazing.
• 1:37
  Tom Jackobs: So you started when you were a baby.
• 1:39
  Scott Capelin: Yeah, pretty much.
• 1:39
  Scott Capelin: I mean, that's an interesting story behind that.
• 1:41
  Scott Capelin: I started the fitness career at the age of 23, but prior to that I'd completed high school and finished a business degree at university and worked in the corporate world for three years.
• 1:50
  Scott Capelin: Then I decided to follow something I'm a little more passionate about.
• 1:53
  Scott Capelin: Well, a lot more really.
• 1:54
  Tom Jackobs: That's that's very similar to my story, except I was a glutton for punishment and stayed 12 years in corporate hell.
• 2:01
  Tom Jackobs: So congrats
• 2:02
  Scott Capelin: Yes, yes.
• 2:03
  Tom Jackobs: On getting out early.
• 2:04
  Tom Jackobs: But of course, I always like to start the show off with the first question, which is always, what's your definition of a heart-led business?
• 2:12
  Scott Capelin: Yep.
• 2:12
  Scott Capelin: And I think it's a really great question.
• 2:14
  Scott Capelin: I guess, you know, the way I would define it is a business that puts people before transactions.
• 2:20
  Scott Capelin: A business where culture and values and, and purpose really really guide decisions.
• 2:24
  Scott Capelin: It's not just a, a corporate mission statement that somebody makes up and nobody remembers.
• 2:29
  Scott Capelin: Like a heart-led business to me is about creating an environment where both the customers and the team members really feel like they belong.
• 2:37
  Scott Capelin: And, you know, we could dive into each of these points, but I really really believe profit matters, but it should be the result of doing something meaningful very well.
• 2:45
  Scott Capelin: And to me, success is about creating healthier people and helping people create a small business.
• 2:51
  Scott Capelin: And during the process, you know, creating strong communities and fulfilling careers simultaneously.
• 2:56
  Scott Capelin: And by the way, like I'm in the fitness industry, I operate a franchise, so we have 80 franchise locations in three countries.
• 3:03
  Scott Capelin: I get the privilege of helping people become business owners often for the first time.
• 3:07
  Tom Jackobs: That's, that's amazing too.
• 3:08
  Tom Jackobs: So it's like, not only are you fulfilling a passion in fitness, but also helping people get fit, and then, like exponentially increasing that reach by helping others create a business for that.
• 3:22
  Tom Jackobs: And that, that's just a beautiful thing.
• 3:23
  Tom Jackobs: I love that
• 3:24
  Scott Capelin: Yep.
• 3:25
  Scott Capelin: Now I, I often feel like your, not just your income, but your level of happiness and fulfillment and satisfaction is proportionate to the amount of people that you're helping.
• 3:34
  Scott Capelin: So if I can help people on various layers during this, you know, on this pathway hopefully, you know, there's some value in that and the rewards follow.
• 3:43
  Tom Jackobs: Yeah.
• 3:43
  Scott Capelin: I think a lot of people do think it, it is about transactions, but there's many currencies, I think, in life and business.
• 3:48
  Scott Capelin: You know, money is a currency, but look at these other important currencies: freedom, health is a currency, of course.
• 3:54
  Scott Capelin: You know, what's that worth.
• 3:56
  Scott Capelin: I guess
• 3:56
  Tom Jackobs: Yeah.
• 3:56
  Scott Capelin: you could argue it's priceless.
• 3:57
  Tom Jackobs: Priceless.
• 3:58
  Tom Jackobs: Yeah.
• 3:59
  Scott Capelin: But you know, personal interaction, you know, I, I just had a recent situation, you know, where-- Well, two recent situations.
• 4:05
  Scott Capelin: One was about, to be, I guess, transparent, there was a$7,000 sort of a discussion.
• 4:10
  Scott Capelin: Another one was$80.
• 4:12
  Scott Capelin: And it's not even about the money, it's about, you know, how we deal with the situation, how we're left feeling about each other.
• 4:18
  Scott Capelin: It's about integrity and leaving something on the table for other people.
• 4:22
  Scott Capelin: It's not just always about those dollars, you know.
• 4:24
  Scott Capelin: I believe harmony is a currency, and without harmony, we're really not gonna go very far.
• 4:30
  Scott Capelin: So, you know, let's get along, have mutually beneficial goals and vision, and hopefully we can all prosper from there.
• 4:36
  Tom Jackobs: Yeah.
• 4:36
  Tom Jackobs: And well, you know, the word compromise comes to mind too, which it seems like that has gone out the window recently for
• 4:45
  Scott Capelin: Yeah,
• 4:45
  Tom Jackobs: some.
• 4:46
  Tom Jackobs: But yeah, that, no, that's it's a really interesting take in terms of, you know, the, the, the currency and the discussion, whether it's a$7,000 discussion or a$80 discussion, the feeling is gonna be the same on either side of those in terms of, you know...
• 5:03
  Scott Capelin: Yes.
• 5:04
  Scott Capelin: No, exactly.
• 5:05
  Tom Jackobs: Who was more upset, the$7,000 discussion or the$80 discussion?
• 5:09
  Scott Capelin: Yeah, it's a really funny question.
• 5:11
  Scott Capelin: I, I was more sort of bothered by the$80 thing because you, you sort of walk away thinking it, it was$80, so, you know, this guy wouldn't pay it.
• 5:20
  Scott Capelin: I said,"You know what?
• 5:20
  Scott Capelin: I'll pay it." It wasn't my responsibility, but you gotta think about the person that was waiting to get paid.
• 5:25
  Scott Capelin: They're part of our, our chain as well.
• 5:27
  Scott Capelin: And you've just gotta, you know, keep-- not just keep people happy, like you, you've gotta do the right thing, I think.
• 5:33
  Scott Capelin: And sometimes ja the right thing is a temporarily...
• 5:36
  Tom Jackobs: it hurts?
• 5:37
  Tom Jackobs: But yeah.
• 5:38
  Scott Capelin: It hurts.
• 5:38
  Scott Capelin: Yeah.
• 5:38
  Tom Jackobs: It hurts.
• 5:40
  Tom Jackobs: Yeah, no, no doubt.
• 5:42
  Tom Jackobs: Well, first of all, is that 80 US dollars or 80 Australian dollars?
• 5:45
  Tom Jackobs: 'Cause that makes a big difference.
• 5:47
  Scott Capelin: Yeah.
• 5:47
  Scott Capelin: Yes, it does make a better, yeah, 30% difference, but it was-- this particular one was US dollars.
• 5:53
  Tom Jackobs: Oh, that hurts.
• 5:54
  Scott Capelin: Yeah.
• 5:55
  Scott Capelin: Ouch.
• 5:55
  Scott Capelin: Yeah.
• 5:56
  Tom Jackobs: Not really, but yeah, that, that's interesting because a lot of times that lower dollar amount will, you know, the kind of human nature is that we will do more to get out of pain than we will to get to pleasure.
• 6:09
  Tom Jackobs: Which also, like if somebody steals$100 from you, you'll do whatever to go get that 100 bucks.
• 6:15
  Tom Jackobs: But if somebody like offers you, you know, to take a survey for$100 and it might take you 10, 15 minutes to do the survey, most people are like,"Nah, I don't wanna do that." Right?
• 6:26
  Tom Jackobs: Like it's the same amount, but, and probably less, less time to do the survey
• 6:33
  Scott Capelin: Human motivators are very interesting.
• 6:35
  Tom Jackobs: Yeah.
• 6:35
  Tom Jackobs: Yeah.
• 6:35
  Tom Jackobs: So, so tell us how did you transition into fitness out of corporate, and what was that, that...
• 6:42
  Tom Jackobs: I know it was a long time ago, but what, what was that transition like in setting up your business?
• 6:47
  Scott Capelin: Yeah.
• 6:47
  Scott Capelin: Well, the sort of story goes that I'd been in the corporate world for three years and then my brother, who had, a little younger than me, he completed high school and he studied to enter the fitness industry, became a personal trainer.
• 6:58
  Scott Capelin: And I thought,"Oh, that looks pretty cool.
• 7:00
  Scott Capelin: I could give that a try." You know, knowing that if it didn't work out, I could always go back to this office job environment.
• 7:06
  Scott Capelin: But I never looked back.
• 7:07
  Scott Capelin: So yeah, I recall after, you know, after four years of university and three years in the corporate world change careers or change industries, you know, is that a waste of seven years?
• 7:17
  Scott Capelin: And I, I remember asking my father, or at least telling him I was thinking about a change, and I remember he just went quiet for 10 seconds and it was at, in the backyard of our home.
• 7:27
  Scott Capelin: He looked up at the sky and said,"Just do what makes you happy." And I'm yeah, really grateful for
• 7:30
  Tom Jackobs: Wow.
• 7:31
  Scott Capelin: that advice.
• 7:32
  Tom Jackobs: Yeah.
• 7:33
  Scott Capelin: And you know, like, like I touched on earlier, just understanding your own personal core values and living in alignment with those values.
• 7:40
  Scott Capelin: And you know, I, I got out of the suit, I got into shorts and a T-shirt.
• 7:43
  Scott Capelin: I started doing work that was really making an impact on people.
• 7:46
  Scott Capelin: My corporate world job, you know, I think the day after I left, nobody remembered me.
• 7:51
  Scott Capelin: But but you know, and, and by the way when I'm in the
• 7:53
  Tom Jackobs: Same.
• 7:54
  Scott Capelin: the fitness industry, I worked like extremely hard.
• 7:56
  Scott Capelin: Like it was the first time I'd ever have to get up at 4:00, 4:40 a.m.
• 7:59
  Scott Capelin: each day and work till, you know, 8:00 p.m.
• 8:02
  Scott Capelin: when the gym closed.
• 8:03
  Scott Capelin: I had really amazing mentors, which is something I'm really grateful for and I feel quite lucky.
• 8:09
  Scott Capelin: The funny thing about the fitness industry, there's not really a career path if you're a personal trainer at a big gym or if you're a yoga teacher down the road, like where do you go from there?
• 8:18
  Tom Jackobs: Right
• 8:18
  Scott Capelin: So a small business has been pretty great to me.
• 8:20
  Scott Capelin: I've certainly had my ups and downs, but you know, if I can share that with other people, you know, so many success stories of people becoming a franchise owner and also maybe leaving corporate or doing it as an investment or something they're passionate about.
• 8:33
  Scott Capelin: You know, a guy said to me the other day,"Oh, you know, if I could make$150,000 profit from a Pilates studio," he said, Well, I make$150,000 from my corporate job." And I said,"That's great.
• 8:44
  Scott Capelin: Let's break that down.
• 8:45
  Scott Capelin: How many hours a week do you work?" And he said,"About 55." a franchise, you're probably working five or six hours a week." I said,"Can you sell your job?" He said,"No." I said,"Well, you know, you can sell a business for two or three times annual profit." You know, and, you know, the big flex these days is not just money, it's being able to drop the kids off from, to school and pick them up and, not have anybody tell you what to do and take time off whenever you feel like it.
• 9:08
  Scott Capelin: And I don't mean to make it sound all that easy because the work still has to be done.
• 9:12
  Tom Jackobs: Right.
• 9:14
  Scott Capelin: But you know, one of the reasons I changed is because, you know, when you wake up at 2:00 a.m.
• 9:17
  Scott Capelin: and start thinking there must be a better way to this life and, you know, a career you know, that's what gets the brain ticking.
• 9:24
  Tom Jackobs: Yeah.
• 9:25
  Tom Jackobs: No, that's amazing.
• 9:26
  Tom Jackobs: So take me back to, like the transition from being a personal trainer into being a business owner, and how long did that take for you?
• 9:36
  Scott Capelin: So yeah, I mentioned I had really good mentors and I started with a small company and they were in the early stages of preparing to franchise.
• 9:46
  Scott Capelin: It actually took them five and a half years to get the business model right to franchise, and I was there through that whole process.
• 9:53
  Scott Capelin: So
• 9:54
  Tom Jackobs: Oh.
• 9:55
  Scott Capelin: If you can imagine, you know,
• 9:56
  Tom Jackobs: Good learning.
• 9:57
  Scott Capelin: Then I'm here getting ready to open my own franchise, and by that point I was a pretty, good personal trainer.
• 10:03
  Scott Capelin: And people would say to me,"Oh, why are you going with a franchise?
• 10:06
  Scott Capelin: Why don't you open your own business?"
• 10:08
  Tom Jackobs: Hmm.
• 10:08
  Scott Capelin: I didn't see a franchise as a sort of an
• 10:09
  Tom Jackobs: Good question.
• 10:10
  Scott Capelin: Option.
• 10:10
  Scott Capelin: I saw it as a smart option'cause I saw what went into it, and having a proven business model and ongoing support really was the best way for me to start my business ownership career.
• 10:20
  Scott Capelin: Like I said, there was a career path.
• 10:21
  Scott Capelin: I went from being a personal trainer to a personal training studio manager, to a personal training studio owner, and then I ended up owning five of those franchises, so I was a multi-unit franchisee.
• 10:33
  Scott Capelin: I guess that's
• 10:33
  Tom Jackobs: Yeah.
• 10:33
  Scott Capelin: They would call it.
• 10:34
  Scott Capelin: You know, one of my big needs in life is personal and professional growth, so after 12 years with that company, I sold my five franchises and went on a different direction.
• 10:44
  Tom Jackobs: Hmm.
• 10:44
  Tom Jackobs: Nice.
• 10:45
  Tom Jackobs: So the, so tell us a little bit about the franchise now.
• 10:48
  Tom Jackobs: So what, what's the name of it and kind of where are you located?
• 10:51
  Scott Capelin: the the brand is inLIFE Wellness Pilates.
• 10:54
  Scott Capelin: So Reformer
• 10:55
  Tom Jackobs: Okay.
• 10:55
  Scott Capelin: Pilates is a really great place to be right now in the fitness industry.
• 10:58
  Tom Jackobs: Yeah.
• 10:59
  Tom Jackobs: Oh, huge.
• 11:00
  Scott Capelin: Funnily enough, it's been around for over 100 years, but it's really boomed over this last five or 10 years.
• 11:06
  Scott Capelin: It's a nice way to train the customers that we sort of target at studio level are...
• 11:10
  Scott Capelin: They're mostly women from their mid-30s to their late 60s, so maybe a slightly more mature target market.
• 11:16
  Scott Capelin: Really lovely clientele, though.
• 11:18
  Scott Capelin: A lot of people who have never been to a gym or studio before.
• 11:20
  Scott Capelin: A lot of people who have never done Reformer Pilates before.
• 11:23
  Scott Capelin: You know, a lot of people are gonna walk into a large gym, like a Planet Fitness or a Lifetime, and I think they're amazing, by the way, but a lot of people walk into those places and say,"Oh my gosh, where would I, where do I even start?"
• 11:33
  Tom Jackobs: Yeah, they run out.
• 11:35
  Scott Capelin: My mother for a moment or thinking about my sister, like...
• 11:37
  Scott Capelin: But there's something for everybody, of course.
• 11:39
  Scott Capelin: But, you know, we just try and create communities because this line of work is not about sales, it's just about retention of members.
• 11:47
  Scott Capelin: And, you know, how do you
• 11:48
  Tom Jackobs: Yeah.
• 11:48
  Scott Capelin: do that, if we know everybody's name and create a warm, welcoming environment, it goes a long way.
• 11:53
  Scott Capelin: Sounds a little cheesy, and it also sounds easy, but, you know, the things that are easy to do are also very easy to not do.
• 12:00
  Tom Jackobs: That, that's right.
• 12:01
  Tom Jackobs: I read a story that about Chick-fil-A and, you know, they, the, like everybody at Chick-fil-A says,"It's my pleasure," no matter what you say to them.
• 12:09
  Tom Jackobs: "My pleasure, my pleasure." It took them two years to roll those two words out.
• 12:16
  Tom Jackobs: Two years across the entire franchise,
• 12:18
  Scott Capelin: Yeah, yeah.
• 12:18
  Tom Jackobs: Which I thought was interesting that, you know, just something so simple as that would, would take so long to implement.
• 12:25
  Scott Capelin: Yeah, to implement or to, yeah, I was-- I thought you were saying it took them that long to discover that.
• 12:30
  Tom Jackobs: Oh, no, to implement.
• 12:31
  Tom Jackobs: Yeah.
• 12:31
  Scott Capelin: Implementation, especially at scale, you know, is a, it can it can be a challenge.
• 12:36
  Scott Capelin: You know, having one small business, it's easy to maintain the culture and after the team and the members, but, you know, m-multiply that by 100, it starts to
• 12:46
  Tom Jackobs: Yeah.
• 12:46
  Scott Capelin: get interesting.
• 12:47
  Tom Jackobs: Yeah.
• 12:48
  Tom Jackobs: And, and how many franchises or franchisees do you have?
• 12:51
  Scott Capelin: There's 80 franchises, but there's 47 franchisees because you know, you
• 12:57
  Tom Jackobs: Yeah.
• 12:57
  Scott Capelin: Around half of the franchisees own more than one.
• 13:00
  Tom Jackobs: Okay.
• 13:00
  Tom Jackobs: Nice.
• 13:01
  Tom Jackobs: That, that's great.
• 13:02
  Tom Jackobs: And what's the biggest joy that you get from, you know, selling a franchise to somebody?
• 13:09
  Scott Capelin: Yeah.
• 13:10
  Scott Capelin: Well, that's a good question too, because it's, it's a quite a specific question.
• 13:13
  Scott Capelin: Like it, it's at the point you're suggesting of somebody basically coming on board.
• 13:19
  Scott Capelin: you know, and for a lot of people, you know, it can be an emotional decision but it's gotta be up logically, that desicion.
• 13:25
  Tom Jackobs: Yeah.
• 13:26
  Scott Capelin: So, you know, I might wanna follow my heart, but hold on a moment show me the financials.
• 13:30
  Tom Jackobs: Right.
• 13:32
  Scott Capelin: But yeah, I suppose, and I meet a lot of people who can be excited and, and nervous which is natural.
• 13:37
  Scott Capelin: So yeah, the-- I guess the most fulfilling part or exciting part is for them it's being able to support them through this journey'cause I've got a lot of confidence in the path even if they don't at the beginning.
• 13:48
  Scott Capelin: I guess the fulfilling part for me is that somebody has had belief in what we do and they're willing to come on board, invest their time money, effort, and energy.
• 13:58
  Tom Jackobs: And so, you know what I've, I've noticed a lot with franchises and franch- franchisors and franchisees, and the really successful ones keep everything super simple.
• 14:10
  Tom Jackobs: So it's a very simple standard operating procedure, and it's just like two or three things.
• 14:15
  Tom Jackobs: The sales process is just super simple.
• 14:19
  Tom Jackobs: Is that similar to what you've done, and can you take me through that whole process?
• 14:23
  Scott Capelin: Yep.
• 14:24
  Scott Capelin: It's a really, really good point.
• 14:26
  Scott Capelin: You know, you think about those first businesses that I owned, personal training studios, they're very sort of labor-intensive and kind of home maintenance.
• 14:33
  Scott Capelin: They're hard to scale.
• 14:34
  Scott Capelin: It's a little bit like owning a hair salon and imagine that you had a hair salon and those 14 hairdressers, and each hairdresser had 60 clients.
• 14:41
  Scott Capelin: And the problem with that can be the clients end up having a close relationship with the, you know, the trainer or the hairdresser.
• 14:49
  Scott Capelin: And we probably, you know, feel a bit weird talking about hair with you and I on this call, but, you know
• 14:54
  Tom Jackobs: Right exactly.
• 14:54
  Scott Capelin: I know women and my wife, for example, where their hairdresser left the salon, moved to another salon one hour away, and they-- the customer goes with them.
• 15:01
  Tom Jackobs: Oh yeah.
• 15:02
  Scott Capelin: But yeah, so, just get, keep me back on track before I digress too much, Tom.
• 15:07
  Tom Jackobs: Yeah, just the simplicity of the business.
• 15:11
  Scott Capelin: And after that, those businesses, I went on to own a large gym with my brother.
• 15:15
  Scott Capelin: We went,
• 15:15
  Tom Jackobs: Oh wow.
• 15:16
  Scott Capelin: Went into partnership.
• 15:17
  Scott Capelin: And that was also, I mean, gosh, it was a revenue monster.
• 15:20
  Scott Capelin: It was an expense monster.
• 15:22
  Scott Capelin: A lot moving
• 15:22
  Tom Jackobs: Yeah.
• 15:23
  Scott Capelin: Parts, the front desk, all the different group exercise rooms, couple of thousand members, you know, 20 personal trainers.
• 15:29
  Scott Capelin: Like, it was a lot.
• 15:30
  Scott Capelin: yeah, back to your point about simplicity, then we go into these smaller environments where we need a footprint of about 1,800 square feet that the instructors are contractors so they can have their own flexibility, and we get a lot of flexibility as well.
• 15:43
  Scott Capelin: And despite being contractors, we do have a close sense of team.
• 15:46
  Scott Capelin: It's really difficult to duplicate, replicate scale if it's not simple.
• 15:51
  Scott Capelin: I mean, we're so simple that we don't have front desk.
• 15:53
  Scott Capelin: It's called a budget boutique.
• 15:56
  Scott Capelin: We don't sell merchandise or nutritional supplements.
• 15:58
  Scott Capelin: We deliver a service.
• 16:00
  Scott Capelin: The business is a very low cost to set up, and on an ongoing basis, they're low cost to operate.
• 16:05
  Tom Jackobs: Good.
• 16:06
  Scott Capelin: That's probably a big thing.
• 16:07
  Scott Capelin: You know, we proudly say that we're Toyota, not Porsche, or the other day lady said that we're a, like, Target, not Walmart.
• 16:14
  Scott Capelin: So, you know, we're the Target of Pilates, if that makes sense.
• 16:17
  Tom Jackobs: It's like, what's the difference?
• 16:18
  Scott Capelin: Yeah.
• 16:19
  Scott Capelin: Well, she did describe the difference, but I don't think I should say that because it doesn't make Walmart
• 16:23
  Tom Jackobs: Yeah, probably not.
• 16:24
  Scott Capelin: sound too good.
• 16:25
  Tom Jackobs: Yeah, well, I mean, do you even...
• 16:27
  Tom Jackobs: It's Walmart.
• 16:28
  Tom Jackobs: Come on.
• 16:29
  Scott Capelin: But you know, somebody's gonna come on board and think about some of the most successful franchises that have been around.
• 16:34
  Scott Capelin: Like, there was one called Curves.
• 16:35
  Scott Capelin: They're still a hundred
• 16:36
  Tom Jackobs: Yeah.
• 16:37
  Scott Capelin: fit.
• 16:37
  Scott Capelin: It's very simple.
• 16:38
  Scott Capelin: It's a bunch of people working around a circuit.
• 16:41
  Scott Capelin: You know, there's a banana custard franchise called Nigel's that literally you're sticking a skewer in a banana and dipping it in chocolate.
• 16:48
  Scott Capelin: I mean, that's a...
• 16:49
  Scott Capelin: somebody has systemized that and duplicated it.
• 16:51
  Tom Jackobs: Wow.
• 16:52
  Scott Capelin: So, you know, sometimes you think to yourself,"Oh my, is it too simple?" But, know, when coming into a small business of, you know, a lot of people, well, they don't know what they don't know, and they're quite happy
• 17:02
  Tom Jackobs: Yeah.
• 17:02
  Scott Capelin: To admit that.
• 17:04
  Scott Capelin: But and that's where the I wouldn't call it a challenge, but you said, what's the most fulfilling part of the beginning?
• 17:09
  Scott Capelin: Well then, at the beginning, you know, people are happy and excited.
• 17:13
  Scott Capelin: Then as we move on, the funny thing about franchising is that, you know, they're still paying a monthly fee, but they probably require less support in year three or four because they know what they're doing.
• 17:23
  Scott Capelin: So how can I, maintain a sense of value for people.
• 17:27
  Tom Jackobs: Yeah.
• 17:28
  Tom Jackobs: Yeah, exactly.
• 17:28
  Tom Jackobs: So how do you keep that value going for them?
• 17:32
  Scott Capelin: Well, I guess you've always got to be innovating and offering different tools for support and strong performance.
• 17:38
  Scott Capelin: So, I could go into detail, but this year we've implemented an independent external business coach, and we've created a a program that pulls in data from the bookkeeping and accounting software and the studio software CRM, into a performance management tool.
• 17:53
  Scott Capelin: We've also, you know, implemented a full-time you know, Meta, Facebook and Instagram ad specialist because previously studio owners would have to engage an agency.
• 18:01
  Scott Capelin: And paid the agency
• 18:01
  Tom Jackobs: Yeah.
• 18:02
  Scott Capelin: A monthly management fee of, you know,$900.
• 18:05
  Scott Capelin: So if I can save people that$900 or in franchising, it's moved a little bit from support to performance coaching.
• 18:12
  Scott Capelin: You know, support is great.
• 18:13
  Scott Capelin: Like, yes, Tom, I can help you with your email password and you know, I can help you with a marketing strategy, but performance coaching is different.
• 18:20
  Scott Capelin: Let's, you know, really dig into the, the profit and loss statement.
• 18:23
  Scott Capelin: Where can we improve?
• 18:24
  Scott Capelin: Where do we need to improve?
• 18:26
  Scott Capelin: Just sort of so much holding people's hand, but nurturing them through that.
• 18:30
  Scott Capelin: And people are different.
• 18:31
  Scott Capelin: In franchising, it is interesting because, you know, there's a framework, there's guidelines and people are gonna wanna have their own ideas.
• 18:38
  Tom Jackobs: Yes.
• 18:39
  Scott Capelin: Perhaps somebody gonna have an idea that could benefit everybody.
• 18:42
  Scott Capelin: So I've got to come in with an open mind and listen.
• 18:44
  Scott Capelin: But you know,
• 18:45
  Tom Jackobs: Yeah.
• 18:45
  Scott Capelin: sometimes people want to open a McDonald's and make the golden arches purple.
• 18:48
  Scott Capelin: That's probably not on, you know, you can't open a Starbucks and tell Starbucks that you found a cheaper coffee machine on eBay.
• 18:55
  Scott Capelin: You've got to, you know, go with the program to an extent.
• 18:57
  Scott Capelin: Follow the playbook, we say.
• 18:59
  Tom Jackobs: Yeah.
• 18:59
  Tom Jackobs: Well, yeah, it's funny.
• 19:00
  Tom Jackobs: I don't know if you saw the, that McDonald's movie about Ray Kroc.
• 19:04
  Tom Jackobs: Yeah, and, and just like, you know, the first franchises that he had with McDonald's were just disasters because everybody was making fish sandwiches or, you know, whatever, like, and just not keeping up with the standard.
• 19:19
  Tom Jackobs: So how do you enforce a standard, you know, internationally at a you know, through a couple...
• 19:26
  Tom Jackobs: 'Cause you're, you're international as well with your brand
• 19:30
  Scott Capelin: Yeah.
• 19:30
  Scott Capelin: Correct.
• 19:30
  Scott Capelin: Yeah, we have studio locations in Australia, USA and New Zealand.
• 19:35
  Scott Capelin: Yeah, that's a, another really good question.
• 19:37
  Scott Capelin: You know, compliance, to be honest, is like a bit of a weakness of mine.
• 19:41
  Scott Capelin: Like, I'm not really all that, you know, comfortable saying,"Oh, no, Tom, you gotta do it this way." But the beautiful thing about our growth over the last four years is that I've done no franchise marketing.
• 19:53
  Scott Capelin: All of our locations have been opened up by either team members or studio members.
• 20:00
  Scott Capelin: So
• 20:01
  Tom Jackobs: Oh.
• 20:01
  Scott Capelin: if you think about that,
• 20:03
  Tom Jackobs: That makes sense
• 20:03
  Scott Capelin: they come on board in some capacity, and they fall in love with the culture.
• 20:08
  Scott Capelin: So then go on to open a franchise, and they've got to promote that very culture that they fell in love with, which includes the service, the offering and the systems.
• 20:17
  Scott Capelin: And you know, I always say, if somebody wants to maybe change something, let's talk about it.
• 20:23
  Scott Capelin: So listen.
• 20:25
  Scott Capelin: And I, I sometimes say,"I'm not a dictator," but if there's a way that I think something should be done, I'll explain my piece.
• 20:33
  Scott Capelin: Just thinking about that book,"The Seven Habits of Highly Effective People." One of those habits is seek to understand before being understood.
• 20:38
  Tom Jackobs: Yes.
• 20:40
  Scott Capelin: You let me know where you're coming from.
• 20:41
  Scott Capelin: And, and you know what?
• 20:42
  Scott Capelin: It's, it's always a good place.
• 20:44
  Scott Capelin: People are not trying to move outside the guidelines to be rebellious or do the wrong thing.
• 20:49
  Scott Capelin: They, they...
• 20:50
  Scott Capelin: More often than not, if somebody wants to stray from the franchise system, they don't even know that's a bad thing.
• 20:55
  Scott Capelin: They're just thinking,"This is my business.
• 20:56
  Scott Capelin: How can I grow the business and do the best thing for my customers and my team?" But usually with an open discussion, you know...
• 21:04
  Scott Capelin: And by the way, I have started, opened, and either built and sold or still own 26 fitness studios and gyms.
• 21:11
  Scott Capelin: So I'm fairly well qualified to talk about what matters, what doesn't matter, what's important, what's not important, what's gonna generate more revenue and customers and what's not.
• 21:22
  Scott Capelin: You know, I've overcapitalized before when you really don't have to.
• 21:25
  Scott Capelin: I'm very passionate about return on investment.
• 21:27
  Scott Capelin: Like you said earlier, passionate
• 21:28
  Tom Jackobs: Yeah.
• 21:28
  Scott Capelin: about simplicity.
• 21:29
  Tom Jackobs: Yeah.
• 21:30
  Tom Jackobs: Probably hard lessons that you learned early on, especially in the big box gym era that you were in.
• 21:35
  Scott Capelin: Yeah.
• 21:36
  Scott Capelin: Yeah.
• 21:36
  Scott Capelin: I think the theme of my life is learning lessons the hard way, but that certainly
• 21:39
  Tom Jackobs: Yeah.
• 21:40
  Scott Capelin: sink in so
• 21:40
  Tom Jackobs: Well, I, I really feel like that's the best, best way to learn.
• 21:44
  Tom Jackobs: So, yeah.
• 21:45
  Scott Capelin: I think, gosh, I could have read a book to learn this, but no, I to lose$300,000.
• 21:49
  Scott Capelin: But anyway, n- not to worry, moving on.
• 21:52
  Tom Jackobs: Hey, you can just go out to the back to the money tree and take a few hundreds off there and, you know, you're back.
• 21:58
  Tom Jackobs: You know, it's all right.
• 21:59
  Scott Capelin: So that's what my daughters think is in the backyard.
• 22:01
  Scott Capelin: Yeah.
• 22:01
  Tom Jackobs: Yeah.
• 22:02
  Tom Jackobs: Yeah, I think everybody should have a money tree.
• 22:04
  Tom Jackobs: Awesome.
• 22:05
  Tom Jackobs: Well, S- Scott, this has been just a fascinating conversation, you know, about, you know, your heart-led business and how you kind of operate it as a franchisor.
• 22:14
  Tom Jackobs: 'Cause I think it's a lot different than most of the guests that I've had on the show, which had, have their own business, and it's, you know, either a multi-site business or just their business.
• 22:24
  Tom Jackobs: But you're actually have a business that's helping other people with their business and being heart-led all the way through.
• 22:30
  Tom Jackobs: So I love that through line, that it just goes all the way to the end consumer.
• 22:35
  Tom Jackobs: And I'm sure your members must be just ecstatic with the growth and the service offering that you guys have in the community.
• 22:43
  Scott Capelin: Yeah, I would hope so.
• 22:44
  Scott Capelin: But, you know, realistically, we do get it wrong sometimes and, you know, members come and go, so it's not for everybody.
• 22:51
  Scott Capelin: But I always say, you know, there's a market for everyone and everything, and you just gotta find your people.
• 22:56
  Scott Capelin: And internally, we need to have the right people on the right seat on the bus.
• 23:00
  Scott Capelin: And, you know, with studio members and gym members, if they wanna be here, that's amazing.
• 23:04
  Scott Capelin: If they don't wanna be here, that's fine.
• 23:06
  Scott Capelin: You know, you know, we don't have long-term contracts.
• 23:08
  Scott Capelin: I don't believe in, making people stay against their
• 23:10
  Tom Jackobs: Yeah.
• 23:10
  Scott Capelin: Will because I believe, again, heart-led currency.
• 23:13
  Scott Capelin: It's really easy these days for people to do a one-star review or a five-star review, so let's give them reasons to do a fi-five-star review.
• 23:20
  Scott Capelin: Most people who use any service know three other people who could use that same service.
• 23:24
  Tom Jackobs: Yeah.
• 23:25
  Scott Capelin: Cheapest marketing ever, just look after people.
• 23:27
  Tom Jackobs: Yeah.
• 23:27
  Tom Jackobs: Yeah.
• 23:27
  Tom Jackobs: No, that, that's brilliant.
• 23:28
  Tom Jackobs: Yeah.
• 23:29
  Tom Jackobs: Thanks for
• 23:30
  Scott Capelin: No, thanks for having me, Tom.
• 23:30
  Tom Jackobs: Reiterating that.
• 23:31
  Tom Jackobs: Yeah, And we all need to hear that every once in a while.
• 23:34
  Tom Jackobs: Well, Scott, this has been just a fascinating conversation, like I said, and thank you so much for coming on to the show and sharing your insights.
• 23:41
  Tom Jackobs: How can people find out more about you and the franchise opportunity that you guys have?
• 23:46
  Scott Capelin: Yeah.
• 23:46
  Scott Capelin: Well, if my name's on the screen there, I have a website.
• 23:48
  Scott Capelin: It's scottcapelin.com.
• 23:51
  Scott Capelin: You can contact me there, learn more.
• 23:53
  Scott Capelin: Franchising, it's inlifewellness.com.
• 23:57
  Scott Capelin: Check out the website.
• 23:58
  Scott Capelin: There's a franchising page.
• 24:00
  Scott Capelin: Any inquiry there is gonna come through to me.
• 24:02
  Scott Capelin: So, that's it.
• 24:03
  Scott Capelin: I'm all over LinkedIn and Instagram, but you know, I was gonna say just Google me, but there's plenty of plenty of ways to reach out.
• 24:10
  Scott Capelin: You can find somebody in 2026.
• 24:12
  Tom Jackobs: Yeah, exactly.
• 24:13
  Tom Jackobs: Just ChatGPT it now.
• 24:15
  Scott Capelin: Yeah, that's right.
• 24:16
  Scott Capelin: Yeah, yeah.
• 24:17
  Scott Capelin: Scary.
• 24:18
  Tom Jackobs: Yeah, awesome.
• 24:19
  Tom Jackobs: We'll put all that down in the show notes and let people click away and find out more about you as well.
• 24:24
  Tom Jackobs: So again, thank you so much for being on the show, and you know, best of luck with the future success of your business.
• 24:31
  Scott Capelin: Oh, I was gonna say it's my pleasure.
• 24:34
  Tom Jackobs: Good callback.
• 24:36
  Tom Jackobs: That was perfect storytelling.
• 24:37
  Scott Capelin: See what I did there?
• 24:38
  Tom Jackobs: Yeah.
• 24:39
  Scott Capelin: Thanks, Tom.
• 24:40
  Tom Jackobs: Sure.
• 24:40
  Tom Jackobs: And thank you listeners for tuning in and watching the show today.
• 24:43
  Tom Jackobs: We really do appreciate it.
• 24:45
  Tom Jackobs: So make sure you're checking out everything that Scott's doing.
• 24:47
  Tom Jackobs: We're gonna put all that down into the show notes, so make sure you go down there and check it out.
• 24:52
  Tom Jackobs: And please do what other smart and considerate listeners are doing, and that's giving the show a rating and a review.
• 24:58
  Tom Jackobs: And that just helps spread the word about The Heart-Led Business Show.
• 25:01
  Tom Jackobs: And it really helps people find a business that fills their heart with joy.
• 25:05
  Tom Jackobs: So until next time, lead with your heart.
• 25:09
  Speaker 2: You've been listening to The Heart-Led Business Show, hosted by Tom Jackobs.
• 25:14
  Speaker 2: Join us next time for another inspiring journey into the heart of business.