When Kelsey Schultz opened a small hot yoga studio next door to one of her and her husband’s Anytime Fitness gyms in Sartell, Minnesota, she was simply closing a gap in the area’s fitness offerings. The year was 2019, and having recently moved out of the Twin Cities, she missed the heated classes that had become standard for her and saw an opportunity in a one thousand-square-foot vacant space her landlord had offered up.
“The one thing I was very much missing was hot yoga,” Kelsey says, “so I decided to give it a go… open a studio and see what happens.”
At the time, she and her husband were operating multiple gyms, and her confidence from that experience made the leap feel manageable.
“It was kind of low risk,” Kelsey says, “The rent was pretty cheap, and we shared some of the space and amenities with the gym.”
What she hadn’t expected was just how different running a yoga studio would be from managing a fitness center.
“I thought I had the competence and confidence from running the gym, but there was a lot to learn about what this completely different demographic was looking for,” Kelsey says.
Along came Meghann Teders.
Kelsey had heard about an instructor in town with a strong fitness background and a physical yoga style. After a few determined attempts, she convinced Meghann to meet. From there, the working relationship would evolve quickly. Meghann was soon teaching classes and, over time, became the go-to for everything from programming to brand consistency, and everything in between.
“It was kind of a slow creep,” Kelsey jokes, “I just kept asking her to do more and more.”
That ‘slow creep’ eventually led to a full-on partnership. During the uncertainty of COVID, Kelsey saw not only Meghann’s value as a teacher, but her strength as a co-leader.
“I always knew Meghann’s value, but I think it was in that vulnerability during that period that I recognized I really wanted to have a partner in this… I didn’t want to go at it alone,” Kelsey says.
The two made the partnership official in 2020 and haven’t looked back since as they’ve continued to grow KPower to what it is today.
What KPower offers
KPower Yoga is a hot yoga studio – emphasis on the “hot”. Their heated rooms, powered by ceiling and wall panels, regularly reach temperatures from 85 to 103 degrees. They offer seven distinct class styles, with the majority being physically demanding styles. The classes bring in a diverse crowd, from 14-year-olds to retirees. And while the majority of students are women, Meghann and Kelsey are intentionally working to reach more men.
“We try to overcome the cultural stigma that yoga is just for women,” Meghann explains. “It’s very far from the truth.”
As they’ve grown, they’ve even expanded into retail and lifestyle offerings, selling branded apparel, yoga gear, drinks, and even laundry detergent – all to meet the needs of their customers. More recently, they’ve expanded into yoga retreats – weeklong getaways filled with movement, adventure, and reflection.
“The retreats are really physical, but also about self-care and community,” Meghann says. “It’s a pretty special experience.”
Creating a consistent, empowering experience
One of the key challenges they faced early on in their journey was developing a consistent student experience, no matter who was teaching. That led to a major investment in an internal Yoga Teacher Training program.
“That was a huge milestone,” Kelsey says. “It helped us solve that challenge of instructor consistency.”
In fact, their teacher training programs have now become one of the studio’s strongest assets.
“We’ve trained over 75% of our current staff,” Meghann says, while holding the training manual she created. “Now it’s evolved into a workbook with separate instructor and student editions – we even use our own photos.”
Meeting the moment – and building community
Kelsey and Meghann are quick to credit their community with helping the business not just survive, but thrive. COVID hit just six months after opening, forcing shutdowns and bringing about great uncertainty.
“It was very scary for me because I had just left my career that I had gone to college to do… there was a time where I really thought no one would come back,” Meghann says. “But when we re-opened gradually, our classes were consistently filling up, and there was even a wait list.”
That moment would permanently change the way she saw yoga.
“It wasn’t just a workout,” Meghann says. “People needed it for their mental health. And that’s what they kept telling us – they needed this space.”
In Rogers, site of their newest location, they’re starting to see that dynamic take hold again.
“The support has been eye-opening,” Meghann says. “We didn’t live there, and yet people still walk in and say ‘you’re here today? It’s a good day!’”
For Kelsey, it reinforces why she got into the business to begin with.
“I like being in business,” Kelsey says. “I feel like we’re doing something meaningful, that we’re improving lives.”
Role of SBA – bringing the dream to life
Getting a new studio off the ground wasn’t without financial hurdles.
“We didn’t have a ton of capital when we were ready to open studio #2,” Kelsey says, “The SBA loan was really our best option.”
That first expansion loan, secured with the help of their Minnwest Bank lender, gave them what they needed to invest in essential aspects of the studio, allowing them to launch with a level of professionalism that matched their vision.
“It let us do things the right way from the start,” Kelsey adds.
And when it came time for their expansion to a third location, Meghann was a partner and actively involved in the financing.
“Our banker, Bri Knowles, was a driving force in making sure that Meghann understood every single step of the way,” Kelsey says. “It was Meghann’s first time being directly involved in that financing stage, and Bri made it a priority to go over those things, which was really important to us.”
Their advice to others considering SBA lending? Ask every question you may have, big or small, and get creative by finding the right partner to work with.
“Think about the relationship with the lender a little bit more versus just working with the first person or bank that says yes to you,” Meghann notes.
What’s next? Depends on the day
Nearly six years after the door first opened, and with three locations, over 30 team members, a growing training schedule and retreat programs, the future of KPower Yoga is bright and open-ended.
“Some days we talk about opening ten more studios,” Kelsey jokes, “and some days, we talk about staying right where we are.”
For now, the goal is to stabilize and strengthen what they’ve built – keep their new Rogers studio growing, continue offering meaningful programs and classes, and maybe, finally, work a little less.
But no matter where they go next, the mission stays the same: build a space where people can challenge themselves, be present in their bodies, and feel like they belong.
“You don’t have to be good at yoga to come in and take a class,” Meghann says. “You don’t have to have the perfect pose – you just have to show up and be willing to try.”