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theaccountsonpoint-blog · 6 years ago

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7 Common Mistakes Made by Fitness Businesses

Once people decide they want professional fitness help, they’re spoiled for choice. Take my local shops for example - there are four gyms/fitness studios within 100m of each other! The flipside of this is that people also tend to lose motivation or forget about their fitness goals quite quickly.

What does this mean for you? Well, unless you’re one of the mega fitness brands, you’ve got to work your butt off to attract and convert new clients. Then you’ve got to pay close attention to other aspects of your business or you may not be able to retain those clients, or profit.

I’m not a personal trainer and have never run a gym, I just want to share the results of surveys/interviews I’ve done with close to 100 fitness professionals (both clients and non-clients).

Here’s the shortlist.

Things to avoid when you’re running a gym or personal training studio

These common mistakes are here to help you. As you read, just remember:

- Everyone makes some or all of these mistakes at some point.

- It’s valuable to pinpoint problems so you can set a path for continuous improvement.

- These mistakes are VERY inter-related. If you fix one thing it will improve other areas too.

1. Working too hard/long hours

Many of us start a business for a better lifestyle but, sadly, it is much more common for business owners to be working an unhealthy number of hours each week.

If you’ve started a fitness business and you’re feeling overworked and underpaid you need to know that you’re not alone - you’re in the majority. This ultra-competitive industry requires that you put yourself out there on social media and everywhere else possible so that you have a good shot at success. This means failure is very public. Maybe that’s a good thing? Some of us work better under pressure.

If you don’t have anyone helping you with your clients, your day is probably something like this….

- Get up at 4:20am for the early sessions

- Work your butt off during the day to get things done

- Take breaks whenever you have a few moments

- Try to look energetic for the evening sessions

- Get home late

- Post and comment on social media

- Then, just when you try to sit down and relax you get client messages or new enquiries via Messenger. You can’t ignore those!

Sound familiar? This ‘mistake’ is actually a symptom of other root causes mentioned below. I think everyone starts out working like this out of necessity. It’s manageable in the beginning due to the excitement of it all - but it’s not sustainable.

2. Not having a well defined target market

How do you compete with 24-hour gyms or massive franchises that have a seemingly endless marketing budget? The answer may be to narrow your focus on a target market, or to specialise/niche.

If you haven’t yet niched it might be because you’re worried that specialising in something may deter other 'would be’ clients. Well it might deter a few. On the other hand, if someone is looking for a new fitness solution, what is it that would currently attract them to your business rather than a super well known and trusted brand?

Being unique and promoting your point of difference has three advantages:

1) It tends to attract the sort of people you want

2) You’re more likely to provide an amazing service that will keep them with you

3) They’re more likely to spread the word

Is there something about your business that people would actively search for and when they find you they would think: This is it!

3. Poor financial management

Fitness businesses aren’t alone on this one. Poor financial management is the leading cause of small business failure.

The thing about the fitness industry, is that most trainers or instructors are working to build up their client base and can’t really spare time or money to manage the finances properly. A lot of people spend more time and money on marketing to increase revenue - but don’t stick your head in the sand. It’s important to know your numbers even if they’re pretty small at the moment. Knowing your numbers may provide extra motivation for improvement.

If you already have the finances sorted when big changes happen, such as registering for GST or suddenly making a bigger profit, then you won’t be caught off guard. The tax office doesn’t accept ignorance as an excuse and having a tax debt makes running a business much harder.

4. Not creating systems

"Let systems run the business…“ Michael Gerber

But who has time to develop systems when they’re starting a business? Well, when you consider that 94% of problems with a business are systems driven and only 6% due to people (Deming), it makes sense to work on the 94%.

Here’s the good news: you already have systems for your business, even if you haven’t documented them. You just need to get them out of your head.

Years ago, I used to type up static manuals for business processes but that’s all changed. Now we create an online directory of every process and fill each module with video and screenshots or easy-to-update text.

This seemingly boring task seems way more interesting when you consider the big benefits:

- Improved quality

- Improved client satisfaction

- Improved client retention

- Increased referrals

- A more professional perception

- Increased perceived value and higher fees

- Optimised marketing

- Optimised sales

- Optimised training

- Optimised management

- Improved team satisfaction

- A higher business valuation

- The prospect of franchising

I’ll stop there but, honestly, the implementation and continuous improvement of systems is what separates the leaders from the pack.

5. Going it alone

”… and let people run the systems" Michael Gerber, again

Most fitness businesses are started by one or two people who are running all the sessions themselves and trying to balance all other business tasks in their down time. This is OK in the very beginning but then it’s common to get stuck in 'no man’s land’.

You’ll become too busy to do anything properly and your business will suffer, not to mention your mental health.

There are some tasks that could actually be done better by someone else for a cost that makes sense. Consider things like cleaning, bookkeeping, social media management…

Then, imagine finding an amazing trainer/instructor who could handle 12 sessions a week. Your time could then be spent on business improvements that are much more valuable than running sessions. If you’re worried about what your clients would think, don’t worry, you can focus on retention activities that may make them even happier than they were before.

The business is so much more valuable to a buyer once the separation of owner and operations is complete. In fact, it’s nearly impossible to sell if you haven’t done this to some extent.

And one more thing about going it alone… wouldn’t you like to have a holiday?

6. Thinking you can’t afford or not ready for the software you need

Software can seem expensive but there are so many benefits.

I have noticed how those who make the leap and fork out for good software suddenly find themselves signing up more clients. They become busier with more clients and couldn’t imagine coping without the software.

On the other hand, those who hold off seem to be constantly struggling.

Why is that? Maybe it’s because the software gives a more professional appearance, which attracts customers.

Here are a few reasons it can make life easier for you and your clients.

Good software efficiently manages payments. This gives you a consistent and predictable cash flow. The majority of fitness clients actually find this better than having to have the right cash or purchase 10 packs through a weird system. Direct debit is set and forget - for them and you.

It also efficiently manages bookings or scheduling. Clear communication around schedules is vital for your business. Why wouldn’t you optimise that?

This sort of software can help you grow. Maybe it’s the retention work you can do with the software that gives the competitive edge. Or perhaps it’s the marketing capabilities they include if you integrate them with marketing apps.

However it happens for you, after some growth (if not from the start) you’ll need good accounting software - not only to help you stay out of financial trouble but also to know your numbers, set targets and monitor your performance.

“That which is measured, improves”

Peter Drucker

7. Thinking you’re too busy to spend time on service and satisfaction

To be honest, there were tonnes of “being too busy to…” type mistakes in the survey responses, but there was a lot of overlap so I’ve narrowed it down to the three key areas.

I’ve also changed the title of the mistake from “being too busy to” to “thinking you’re too busy too”. My reason for this is that these things are so important in the fitness industry that if you don’t attend to them regularly they will come back to bite you.

They’re not just “nice to haves” - they’re critical.

If you spend hours on social media each day, that’s great, but it may be more effective to to spare a bit of time on:

Improving your services (REFERRALS, CLIENT ATTRACTION AND RETENTION) You’re probably already continuously educating yourself on health, fitness and nutrition. That learning is an amazing building block for new services and the continuous improvement of existing services. Service improvement is a leading determinant for referrals, client attraction and retention.

Checking customer satisfaction (REFERRALS, RETENTION) Trying to sense the vibe of customer satisfaction probably isn’t good enough. You’re probably too busy to have one-on-one chats with everybody, so consider using your software to periodically send out a three question survey. This could highlight problem areas fast, shows changes over time, and let you know the winning elements that shouldn’t be changed.

Checking team satisfaction (TEAM RETENTION, CLIENT SATISFACTION, REFERRALS) How’s the team doing? This should also be systematically checked. Even if you’ve got bulletproof hiring and training systems, when a team member leaves it’s a major disruption, and a black hole for money and your time.

Keeping your team highly engaged and proud of the business should reduce team turnover and mitigates the risk of them leaving on bad terms. You need to look after your crew so well that they don’t start looking for work elsewhere or, worse still, decide to build up their own client base in direct competition with you.

Some of the fitness people who helped with this article had ways of lessening the impact of these 7 mistakes through additional revenue streams like online coaching, online training courses and product sales. I’d love to hear about your fitness business if it’s immune to any of these 7 mistakes. I’d also love to know I’ve missed anything so get in touch in the comments section to add your experiences.

by:

Simon Birdsall

#fitness #health & fitness #business #accounting #bookkeeping #gym #personaltrainer #gym instructor

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theaccountsonpoint-blog · 6 years ago

Text

7 Common Mistakes Made by Fitness Businesses

What does this mean for you? Well, unless you're one of the mega fitness brands, you've got to work your butt off to attract and convert new clients. Then you've got to pay close attention to other aspects of your business or you may not be able to retain those clients, or profit.

I’m not a personal trainer and have never run a gym, I just want to share the results of surveys/interviews I’ve done with close to 100 fitness professionals (both clients and non-clients).

Here’s the shortlist.

Things to avoid when you’re running a gym or personal training studio

These common mistakes are here to help you. As you read, just remember:

- Everyone makes some or all of these mistakes at some point.

- It's valuable to pinpoint problems so you can set a path for continuous improvement.

- These mistakes are VERY inter-related. If you fix one thing it will improve other areas too.

1. Working too hard/long hours

Many of us start a business for a better lifestyle but, sadly, it is much more common for business owners to be working an unhealthy number of hours each week.

If you've started a fitness business and you're feeling overworked and underpaid you need to know that you're not alone - you're in the majority. This ultra-competitive industry requires that you put yourself out there on social media and everywhere else possible so that you have a good shot at success. This means failure is very public. Maybe that's a good thing? Some of us work better under pressure.

If you don't have anyone helping you with your clients, your day is probably something like this....

- Get up at 4:20am for the early sessions

- Work your butt off during the day to get things done

- Take breaks whenever you have a few moments

- Try to look energetic for the evening sessions

- Get home late

- Post and comment on social media

- Then, just when you try to sit down and relax you get client messages or new enquiries via Messenger. You can't ignore those!

Sound familiar? This 'mistake' is actually a symptom of other root causes mentioned below. I think everyone starts out working like this out of necessity. It's manageable in the beginning due to the excitement of it all - but it's not sustainable.

2. Not having a well defined target market

How do you compete with 24-hour gyms or massive franchises that have a seemingly endless marketing budget? The answer may be to narrow your focus on a target market, or to specialise/niche.

If you haven't yet niched it might be because you're worried that specialising in something may deter other 'would be' clients. Well it might deter a few. On the other hand, if someone is looking for a new fitness solution, what is it that would currently attract them to your business rather than a super well known and trusted brand?

Being unique and promoting your point of difference has three advantages:

1) It tends to attract the sort of people you want

2) You’re more likely to provide an amazing service that will keep them with you

3) They’re more likely to spread the word

Is there something about your business that people would actively search for and when they find you they would think: This is it!

3. Poor financial management

Fitness businesses aren't alone on this one. Poor financial management is the leading cause of small business failure.

The thing about the fitness industry, is that most trainers or instructors are working to build up their client base and can't really spare time or money to manage the finances properly. A lot of people spend more time and money on marketing to increase revenue - but don't stick your head in the sand. It's important to know your numbers even if they’re pretty small at the moment. Knowing your numbers may provide extra motivation for improvement.

If you already have the finances sorted when big changes happen, such as registering for GST or suddenly making a bigger profit, then you won’t be caught off guard. The tax office doesn't accept ignorance as an excuse and having a tax debt makes running a business much harder.

4. Not creating systems

"Let systems run the business..." Michael Gerber

But who has time to develop systems when they're starting a business? Well, when you consider that 94% of problems with a business are systems driven and only 6% due to people (Deming), it makes sense to work on the 94%.

Here’s the good news: you already have systems for your business, even if you haven't documented them. You just need to get them out of your head.

Years ago, I used to type up static manuals for business processes but that's all changed. Now we create an online directory of every process and fill each module with video and screenshots or easy-to-update text.

This seemingly boring task seems way more interesting when you consider the big benefits:

- Improved quality

- Improved client satisfaction

- Improved client retention

- Increased referrals

- A more professional perception

- Increased perceived value and higher fees

- Optimised marketing

- Optimised sales

- Optimised training

- Optimised management

- Improved team satisfaction

- A higher business valuation

- The prospect of franchising

I'll stop there but, honestly, the implementation and continuous improvement of systems is what separates the leaders from the pack.

5. Going it alone

"... and let people run the systems" Michael Gerber, again

You'll become too busy to do anything properly and your business will suffer, not to mention your mental health.

There are some tasks that could actually be done better by someone else for a cost that makes sense. Consider things like cleaning, bookkeeping, social media management…

Then, imagine finding an amazing trainer/instructor who could handle 12 sessions a week. Your time could then be spent on business improvements that are much more valuable than running sessions. If you're worried about what your clients would think, don't worry, you can focus on retention activities that may make them even happier than they were before.

The business is so much more valuable to a buyer once the separation of owner and operations is complete. In fact, it's nearly impossible to sell if you haven't done this to some extent.

And one more thing about going it alone... wouldn't you like to have a holiday?

6. Thinking you can't afford or not ready for the software you need

Software can seem expensive but there are so many benefits.

I have noticed how those who make the leap and fork out for good software suddenly find themselves signing up more clients. They become busier with more clients and couldn't imagine coping without the software.

On the other hand, those who hold off seem to be constantly struggling.

Why is that? Maybe it's because the software gives a more professional appearance, which attracts customers.

Here are a few reasons it can make life easier for you and your clients.

It also efficiently manages bookings or scheduling. Clear communication around schedules is vital for your business. Why wouldn’t you optimise that?

This sort of software can help you grow. Maybe it's the retention work you can do with the software that gives the competitive edge. Or perhaps it’s the marketing capabilities they include if you integrate them with marketing apps.

However it happens for you, after some growth (if not from the start) you'll need good accounting software - not only to help you stay out of financial trouble but also to know your numbers, set targets and monitor your performance.

“That which is measured, improves”

Peter Drucker

7. Thinking you're too busy to spend time on service and satisfaction

To be honest, there were tonnes of "being too busy to..." type mistakes in the survey responses, but there was a lot of overlap so I've narrowed it down to the three key areas.

I've also changed the title of the mistake from "being too busy to" to "thinking you're too busy too". My reason for this is that these things are so important in the fitness industry that if you don't attend to them regularly they will come back to bite you.

They're not just “nice to haves” - they're critical.

If you spend hours on social media each day, that's great, but it may be more effective to to spare a bit of time on:

Improving your services (REFERRALS, CLIENT ATTRACTION AND RETENTION) You're probably already continuously educating yourself on health, fitness and nutrition. That learning is an amazing building block for new services and the continuous improvement of existing services. Service improvement is a leading determinant for referrals, client attraction and retention.

Checking customer satisfaction (REFERRALS, RETENTION) Trying to sense the vibe of customer satisfaction probably isn't good enough. You're probably too busy to have one-on-one chats with everybody, so consider using your software to periodically send out a three question survey. This could highlight problem areas fast, shows changes over time, and let you know the winning elements that shouldn't be changed.

Checking team satisfaction (TEAM RETENTION, CLIENT SATISFACTION, REFERRALS) How’s the team doing? This should also be systematically checked. Even if you've got bulletproof hiring and training systems, when a team member leaves it's a major disruption, and a black hole for money and your time.

Keeping your team highly engaged and proud of the business should reduce team turnover and mitigates the risk of them leaving on bad terms. You need to look after your crew so well that they don't start looking for work elsewhere or, worse still, decide to build up their own client base in direct competition with you.

Some of the fitness people who helped with this article had ways of lessening the impact of these 7 mistakes through additional revenue streams like online coaching, online training courses and product sales. I'd love to hear about your fitness business if it's immune to any of these 7 mistakes. I’d also love to know I've missed anything so get in touch in the comments section to add your experiences.

by:

Simon Birdsall

#fitness #health & fitness #gym #gymowner #personaltrainer #onlinetrainer #fitnessexpert #fitnesspeople #trainer #fitnessinstructor #business #fitnessbusiness

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