Managing a Successful Fitness & Personal Training Business Presented at #Filex2014
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Managing A Successful Fitness Business “If you can’t afford the people to run the business for you, then all you have is a job, not a business.” Doug Harrison, CEO The Scooter Store
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14-Sep-2014 -
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Business
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In this interactive session, ideal for both new and experienced managers, Justin reveals critical KPIs, industry benchmarks against which to compare results, and the single most important factor to improve every number in your business. Learn the formula for designing a marketing piece, an interview schedule to find the best staff, and how to truly improve retention. Take away a marketing plan template covering internal, external, off-line and online marketing, and take the opportunity to question Justin on any aspect of fitness management
Transcript of Managing a Successful Fitness & Personal Training Business Presented at #Filex2014
FITNESS BUSINESS COURSE WORKBOOK
Managing A Successful Fitness Business
If you cant afford the people to run the business for you,
then all you have is a job, not a business.
Doug Harrison, CEO The Scooter Store
2014 is my 25th year in the fitness industry. Which makes me one of the longest serving business coaches and consultants in the industry in the Asia-Pacific region.
This proves:
I am really good at what I do; or
No-one will offer me a full time job, so I have to keep working for myself.
Prior to my role as a thought leader, I started as a gym instructor, then a personal trainer, sales person, sales manager, club manager, club owner of 1 club, club owner of 2 clubs and back to a single club owner. So the full gambit of roles in in our industry.
I have helped 356 individual health clubs, 824 personal training businesses and presented to over 10,000 people across 13 countries with their human resources, retention strategies, social media in more recent times, marketing and differentiation of their business. And every time I work with an individual or present to a group I learn. So I am expecting to learn from you today as well.
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My role as a business coach is to challenge the status quo.
I believe deep down that if you are playing it safe it is dangerous in business. Break throughs in life and business occur when we stretch our comfort zones. So be prepared today to be challenged around social media.
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What is this #enhance thing?
Last week we announced our theme for 2014.
My Big Hairy Audacious Goal is reduce the health care costs across the globe by increasing the number of people exercising so that my daughter can grow up in a world that is not using resources keeping an aging fattening population alive.
This year our focus is to #enhance peoples lives by creating better balance, allowing them time to exercise. It is also to #enhance your businesses so that you can help me achieve my goal. And that is why I am here today.
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Rules for the day . . .
Be mentally present
Turn off phones & emails
Tweet if you want to: #Filex2014 & @JTActiveMgmt
After every break sit in a different seat & next to someone different
Ask questions any time!
Go to the toilet when you need to
Eat and drink if/when you need to
Get back on time from the breaks
Implement
Connect with us
Take advantage of any offers I make!
Two Feet Rule
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7 Strategies:
Understand your why is beyond a vision
A business plan
Know the difference between buying & selling
The top 3 & 1 of 3
Action do stuff!
Join a Round Table
Get a hobby!
If you want to teach people a new way of thinking, dont bother trying to teach them. Instead, give them a tool, the use of which will lead you to new ways of thinking.
Buckminster Fuller
Strategy #1
Strategy #2
Numbers for the business:
Smart numbers long term numbers that will show growth
Critical numbers short term numbers that show growth
Strategy #3
Know the difference between buying & selling
Strategy #4
Top 3 and 1 of 3
Ask yourself: What do I need to be doing TODAY to keep this business moving forward in my plans and at the speed the market demands.
Stratgey #5
Strategy #6
Strategy #7
Three bonus strategies:
Bonus Strategy #1
Creating rhythm in your business:
Daily Where we are today?
Weekly Improving what I do
MonthlyLearning and reviewing
Quarterly Determining any new direction
Annually Determining the focus for the business
Bonus Strategy #2
Bonus Strategy #3
Club Numbers
Mature Club Numbers
KPIAverageHighLowSuggested TargetProfit8%20%+0.0001%15-20%Membership as a % of total revenue90%100%76%70-80%Dues as a % of membership income95%100%48%90%Cost of sale$120$275$65$80Members/sqm2.253.5+12.25Net Growth25250060 (5/mth)Start tracking the cost and therefore the profit you make per member.
Breakdown of Expenses
KPIAverageHighLowRent17%28%0%Wage42%57%34%Marketing11%16%4%Utilities3%Increase by 15%Increased by 3%Cleaning2%3%1%Reduce expenses by 10% on annual basis by asking: Is that the best you can do?
Allocate time every month to go through your line items.
Incentivise your team.
Marketing Info
Increasing SourcesMaintaining SourcesWaning SourcesGoogle ad wordsSignageOutreachFacebook adsWord of mouthNewspaper adsBuddy visitsDirect referralsYellow pagesSplash pagesFlyersWebsiteGenerally, cash at point of sale is NOT covering customer acquisition costs.
You still need multiple lead generating channels ideally 15 to 21!
Sales Numbers
KPIAverageHighLowClosing ratio75%95%45%Incoming call to appointment ratio84%95%70%Average referrals at point of sale240Sales are critical and numbers will tell you strengths & weaknesses but dont weigh their time down in collating the numbers.
Retention Numbers
KPIAverageHighLowAnnual Retention52%76%48%Active members in the last 30 days58%78%47%BFIA Study 4 visits in the first month effect retention by up to 60% in 12 months.
If you are calling member when they are not using the club . . . It is too late!
Formula: number of members at the end of the period, who were members when the period started. We do not include new sales.
Personal Training Numbers
KPIAverageHighLowPenetration17%28%0%Session numbers6001000+
