This document provides strategies and key performance indicators for successfully managing a fitness business. It discusses the importance of having a clear vision and business plan, understanding the difference between buying and selling, focusing on the top 3 priorities and 1 of 3 tasks each day. Metrics are presented for membership numbers, sales, marketing, staff retention, personal training sessions, group fitness classes and net promoter scores. Effective marketing strategies are outlined that combine various online, print and referral tactics. The overall marketing equation and components of an effective marketing mix and strategy are also summarized.
Managing a Successful Fitness & Personal Training Business Presented at #Filex2014
1. 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
6. 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
7.
8.
9. 7 Strategies:
1. Understand your why is beyond a
vision
2. A business plan
3. Know the difference between
buying & selling
4. The top 3 & 1 of 3
5. Action – do stuff!
6. Join a Round Table
7. Get a hobby!
“If you want to teach people a
new way of thinking, don‟t
bother trying to teach them.
Instead, give them a tool, the use
of which will lead you to new
ways of thinking.”
Buckminster Fuller
16. 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.”
21. Bonus Strategy #1
Creating rhythm in your business:
– Daily Where we are today?
– Weekly Improving what I do
– Monthly Learning and reviewing
– Quarterly Determining any new direction
– Annually Determining the focus for the business
26. Mature Club Numbers
KPI Average High Low Suggested
Target
Profit 8% 20%+ 0.0001% 15-20%
Membership as a
% of total revenue
90% 100% 76% 70-80%
Dues as a % of
membership
income
95% 100% 48% 90%
Cost of sale $120 $275 $65 $80
Members/sqm 2.25 3.5+ 1 2.25
Net Growth 25 250 0 60 (5/mth)
Start tracking the cost and therefore the profit you make per member.
27. Breakdown of Expenses
KPI Average High Low
Rent 17% 28% 0%
Wage 42% 57% 34%
Marketing 11% 16% 4%
Utilities 3% Increase by 15% Increased by 3%
Cleaning 2% 3% 1%
1. Reduce expenses by 10% on annual basis by asking: “Is that the best you
can do?”
2. Allocate time every month to go through your line items.
3. Incentivise your team.
28. Marketing Info
Increasing Sources Maintaining Sources Waning Sources
Google ad words Signage Outreach
Facebook ads Word of mouth Newspaper ads
Buddy visits Direct referrals Yellow pages
Splash pages Flyers
Website
Generally, cash at point of sale is NOT covering customer acquisition costs.
You still need multiple lead generating channels – ideally 15 to 21!
29. Sales Numbers
KPI Average High Low
Closing ratio 75% 95% 45%
Incoming call to
appointment ratio
84% 95% 70%
Average referrals at
point of sale
2 4 0
Sales are critical and numbers will tell you strengths & weaknesses but don‟t
weigh their time down in collating the numbers.
30. Retention Numbers
KPI Average High Low
Annual Retention 52% 76% 48%
Active members in the
last 30 days
58% 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.
31. Personal Training Numbers
KPI Average High Low
Penetration 17% 28% 0%
Session numbers 600 1000+ <100
Profitability 11% 16% 4%
Small group training is the fastest growing trend in Australia.
If you have contractors who pay rent, you still need to get their numbers every
week, fortnight or month.
32. Group Fitness Numbers
KPI Average High Low
% of member who
participate in GX
17% 65% 0%
Visits as a % of total
visits
42% 75% 0%
Launches . . . Launches . . . Launches . . . Launches
67. 1. Flyers
2. Email direct mail piece to old
leads
3. Direct mail piece to previous
members
4. Lead Boxes
5. Using databases of partner
businesses
6. „Thank you‟ cards for partner
businesses to hand out
7. Referral campaign
8. Posters in partner businesses
9. „Welcome to the Area‟ packs
with real estate agents
10. „Welcome to the Area‟ packs
for new employees
11. Facebook ads
12. Google ad words
13. Gift vouchers for local
schools & charities
14. Seminars to local community
groups
15. Newspaper ads
16. Advertising in school and
child care newsletters.
17. Corporate promotions
18. Business card incentives for
staff
19. Allied health professionals
referrals
20. Volunteer program to study
benefits of exercise
21. You Tube videos to spread
virally
72. Justin Tamsett
B.Ed (Phys & Health Education)
Feel free to contact JT: jt@activemgmt.com.au or +612 9484 5501
Follow JT on Twitter: @JTActiveMgmt
To read JT‟s blog: www.justintamsett.com
Become an Active Management Fan on Facebook: www.facebook.com/activemanagement
And for more information on Active Management: www.activemgmt.com.au
"What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others."
Pericles
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; orNo-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.
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.
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 people’s 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.