Managing a Successful Fitness & Personal Training Business Presented at #Filex2014

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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

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  • 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.
  • Managing a Successful Fitness & Personal Training Business Presented at #Filex2014

    1. 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
    2. 2. What is this #enhance thing?
    3. 3. 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
    4. 4. 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
    5. 5. Strategy #1
    6. 6. Strategy #2
    7. 7. Numbers for the business: – Smart numbers – long term numbers that will show growth – Critical numbers – short term numbers that show growth
    8. 8. Strategy #3 Know the difference between buying & selling
    9. 9. 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.”
    10. 10. Stratgey #5
    11. 11. Strategy #6
    12. 12. Strategy #7
    13. 13. Three bonus strategies:
    14. 14. 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
    15. 15. Bonus Strategy #2
    16. 16. Bonus Strategy #3
    17. 17. Club Numbers
    18. 18. 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.
    19. 19. 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.
    20. 20. 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!
    21. 21. 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.
    22. 22. 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.
    23. 23. 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.
    24. 24. 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
    25. 25. Other Numbers KPI Average High Low Net Promoter Score 72 84 65 Annual staff retention 75% 92% 65%
    26. 26. Half Time
    27. 27. Getting The Right Team
    28. 28. Mistake # 1: It is about the person fitting the job not the job fitting the person.
    29. 29. 40 Mistake # 2: We only look when we need staff.
    30. 30. 41 Mistake # 3: Hire easy.
    31. 31. 42 Mistake # 3: Hire easy.
    32. 32. Step 1
    33. 33. Step 2
    34. 34. 47 Step 3
    35. 35. Step 4
    36. 36. Marketing
    37. 37. Your Marketing Equation (regardless of the medium) Market + Needs – Fears = New Members/Clients
    38. 38. Components
    39. 39. Strategy
    40. 40. 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
    41. 41. Your Mix
    42. 42. 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
    43. 43. Check out www.ActiveMgmt.com.au to become an Active Management Member for the best management tools.

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