Why Are You in the Fitness Business?
It is time for a reality check. Why are you in the fitness business? Before you say "because I want to help people get fit", think again. After all, technically you could give away your expertise in physical fitness for free, if your motives are only to help people. The truth is you are in the fitness business to make money.
If you have trouble admitting that, you are going to have trouble operating your fitness center as a business. Worse yet, you are going to have trouble feeding your family. So, while it is great that you want to help people stay physically fit, you have to pay attention to the bottom line on your profit and loss statement at least as much as you pay attention to your members' waistlines.
That means you have to comprehend basic business principles, understand how business finance works, and get busy operating your business like a real business.
Business Principles 101: Class Is in Session
The most fundamental thing to know about running a business is that your income has to exceed your expenditures. However, one of the rookie mistakes that new gym owners make is to fail to consider all expenditures, including taxes, interest payments on equipment, depreciation, and amortization.
If your eyes glaze over at those words, do not worry. That is what accountants are for. Finding a good accountant with knowledge of the unique challenges gym owners face is a great first step to getting your business finances in order.
Choose the Right Tools to Get Financially Fit
Just as you carefully choose which equipment to use during a physical workout, you must choose the right tools for your financial fitness as well. There are a variety of software programs available to help gym owners keep a handle on everything from accounting to online scheduling of employees and payment processing for member payments. Do your homework and find the right fit for your business.
Grow Your Money Tree
For your business operations to be successful, your fitness center must offer something that members really want. According to Expansion Capital Group, 80 percent of gyms go out of business in their first five years, and 16 out of 17 go out of business within 8 years.
Don't be a statistic. Make a plan for generating revenue and stick with it as long as it works. If your plan is not working, however, be flexible and open to new ways of generating money. Here are a few things that might add that extra bulk to your bottom line:
1) Market like you mean it.
The truth is that word of mouth is not enough to continually drive growth. Just like a physical exercise plan, you have to mix things up sometimes to get your marketing mojo right. Use inbound marketing techniques like a killer website with great content, social media marketing, and traditional marketing like radio spots and direct mail to get the word out.
2) Hire great staff.
Payroll is one of the largest items on your profit and loss statement. Be sure to get a great bang for your buck by hiring well-qualified trainers and staff who understand that providing a great member experience every time is a priority.
3) Consider adding extras.
This one can be tricky, because the more extra services you add, the more expenses you will have. So, the trick is to find the sweet spot. Look for extra services that cost less for you to provide than the fee you will charge for them.
The article "5 Ways to Increase Your Gym Profitability" suggests adding a juice bar, a snack bar, and services like onsite massages to keep members coming back for more.
4) Choose the right gym equipment.
Pay attention to what members use the most when they come to your fitness center. Provide high quality gym equipment to give your members the best workout possible.
Consider a club solution like the AccuroFit system, which incorporates a mobile app to help members stay active both in and out of your gym. Systems like AccuroFit keep your gym front and center in the minds of members, which leads to better member retention and makes your bottom line bulge nicely.
Are you ready to get financially fit? Are you looking to bulk up your bank account as well as the muscles of your gym members? Then, go for it by requesting a demo of the AccuroFit system today!