If you want to be successful in business, whether it’s a niche fitness business in Nashville or a Fortune 500 company in Sunnyvale, you need to test everything that you build. To do this, you need to measure everything that your business does. If you don’t you’re likely to miss some key piece of data and not be able to react to a trailing indicator or a leading indicator.
Here’s what this means for your fitness business.
You will live or die by your numbers
The first thing you need to do is list out all of your studio’s ongoing expenses. This should include everything from rent and equipment leases to marketing spend and management software. Then figure out how many clients or members you need each month to exceed it. This is the basis for your monthly sales goals. If this is something you need to do, we suggest you learn more about understanding how much it costs to run your fitness business. We even built a tool to help you figure it all out.
You must know which classes and programs to keep
Your job in the early days is to test different programs and classes to see how your clients and community responds. You want to identify programs that bring in at least 20% more than they cost to run, including their contribution to rent, insurance, your or a manager’s salary, and other overhead. Then see if there are changes that can be made that will improve its return or if it is better to drop it altogether and test something new. You can download the spreadsheet at the end of this post to see the relation between pricing, client volume, number of classes, and overhead expenses: How much does my fitness studio cost to run?
You must build a solid team
Your team is one of the most critical pieces of bringing in and retaining enough customers at the right price to grow your fitness business. For many clients, your team is your gym so hiring and training should be done right. Fortunately, we’re collecting all the best practices into a single ebook on building your all-star fitness team. Sign-up to get each chapter as it’s released: Hiring the right people for your fitness business
You should automate everything you can
There’s only so many hours in the day and you don’t want to spend them on admin tasks. This takes away from the time you could be spending with your members or building new business opportunities. That’s why we created BookMore Fitness, an all-in-one fitness management solution that helps you streamline and automate the day-to-day stuff so you can get back to work.
Opening a gym is hard work, and even harder to keep it open, but it can be very rewarding if it all works out.
Learn more about how to manage your own fitness studio. Grab your e-book now!