2. Introduction
Whether working with clients in their homes or for a
major health club, a personal trainer needs to know how
to properly manage and operate their business.
The fundamental purpose of a business is to generate
profit by delivering a product or service to customers.
Operating a successful personal-training business
involves:
– Budget Planning
– Developing a marketing plan
– Having the ability to sell training sessions
– Delivering a quality service/product that meets client
expectations and drives retention and referrals.
3. Personal Training Is A Service Business
Service businesses offer knowledge, skill, and expertise.
Service companies build their businesses through
interpersonal relationships.
A personal trainer needs to match
the desire for helping clients with
the ability to quickly establish
rapport with them.
– This combination will provide a
strong foundation for a
personal-training business.
4. Employment Modals:
The Direct-Employee Model
In the direct-employee model, a trainer is usually paid:
– A lower rate when working a scheduled shift on the fitness floor, receptions etc.
– A higher fee when working with a client as a personal trainer. This can be a set
flat rate increase or a percentage of what the client was charged by the gym.
Many companies reward trainers with bonuses if they meet certain
performance objectives.
There are many different types of gym facilities that operate, and
each have their pros and cons.
– Large health-club chain
– Non-profit community center
– University sports center
– Corporate fitness facility
– Independent health club
– Personal-training studio
5. Advantages of the Direct-employee Model
The employer pays the cost of marketing to new facility members.
The employer pays for equipment and all expenses related to the maintenance of the
facility.
Some employers may provide benefits.
Some employers offer continuing education opportunities.
The employer is required to submit taxes on behalf of the trainer .
Employers may offer opportunities for promotion.
Staying at the same location throughout the day eliminates the cost of travel
additional commuting time.
Many health clubs provide opportunities for trainers to deliver small-group training
sessions which can greatly improve income per session.
6. Disadvantages of the Direct-Employee Model
A trainer must conform to the uniform and professional
grooming standards of the employer.
Per-session training fees are often lower than what the
trainer could make working independently.
Employers set working times & days(Rosters).
Many employers establish sales goals for their personal
trainers, which can create a high-pressure sales
environment.
7. The Independent-contractor Model
(Working for yourself!)
In the independent-contractor model, the personal trainer works out of
a health club or training studio or their own premises.
– A trainer will pay either a per-client or monthly fee in return for being able to
use that location with clients.
– The trainer is responsible for paying all of his or her own operational costs.
– Requires the trainer to decide about how much money to charge for services
When starting out, personal trainers might want to price themselves slightly
lower than some of the competition.
When setting their fees, trainers must remember that taxes are paid on
any earned income.
– A personal trainer should not simply set a rate that sounds inexpensive.
– A trainer must do the research to determine if the rate can cover all the required
expenses of being in business for one’s self.
8. Considerations for Working as an
Independent Contractor
What facility will be used and what
arrangements will be made to use the
facility?
If the plan is to work in clients’ homes, the
trainer should research on the local market
to see if it has the demographic to support
the fees for a private trainer.
What type of marketing expenses will be
required to advertise for new clients?
What health-screening forms and liability
waivers will be used to protect against
litigation?
What assistance will the trainer need from
an accountant or solicitor if any?
9. Advantages of the Independent
Personal Trainer
The personal trainer can
establish the fees based on
experience and what the
market will pay.
Many personal trainers
appreciate the opportunity
to move around and work
out of different facilities.
The personal trainer is able
to develop his or her own
financial goals.
10. Disadvantages of the Independent
Personal Trainer Model
The personal trainer must
maintain business records and
pay personal taxes.
The trainer is responsible for all
his or her own marketing costs.
If renting space, the trainer does
not have control over the
operations of the facility. i.e
opening times etc
If training clients in their homes,
the personal trainer will have to
travel between different locations
throughout the day.
The trainer must have their own
liability insurance.
11. Starting a Career
The best way to get started as a
personal trainer without taking any
financial risks is to work for an
employer.
Facilities provide:
– A steady stream of potential clients
– Some of the experience needed to
operate a fitness business without
investing the time and money to
start one
A good employer will train its personal
trainers to market their skills and
make sales.
Beginning as a personal trainer working
in the direct-employee model can
establish the foundation for a long and
rewarding career in the fitness industry.
12. Business Planning
To have a successful career, a personal trainer should develop a
business plan.
No one starting a business plans to fail.
– They simply fail to develop a systematic plan for running a business.
A personal trainer should create a business plan that establishes
definitive goals and a structure for achieving them.
Standard components of a business plan include
– Executive summary
– Business description
– Marketing plan
– Operational plan
– Risk analysis
– Financial Plan
13. Executive Summary
The executive summary is a brief outline of the
business and an overview of how the business fills a
need within the marketplace.
Write it as if you we’re trying to explain your
personal training business to someone who knows
nothing of the fitness business.
A well-written executive summary is one page and
includes the following information:
– Business concept
– Summary of financial information
– Current business position
– Business successes if currently
operational.
14. Business Description
This section provides the details for the business as outlined in
the executive summary.
When describing the business, the personal trainer should:
– Identify the operating model and how it is different or unique when compared to
other training studios / trainers in the area
– Describe the fitness industry specific to the local market
– Provide details such as the number and location of competitors, how many
employees they have etc
– List the member(s) of the management team, highlighting their knowledge, skills,
and experience
Potential lenders or investors need to see this information
before deciding about providing capital (Money!).
15. Marketing Plan
This section of the business plan specifies how prospective
clients become paying clients.
Marketing is the process of promoting a service by
communicating the features, advantages, and benefits to
potential clients.
Marketing tools should tell a story about how the service can
enhance a person’s life.
– All marketing pieces should communicate the benefits of working with a
Personal Trainer.
The Marketing Plan should list the:
– Details on the demographics for the area around the training business
– Demand for personal-training services
– Specific type or brand of training services being offered
– Plan for communicating the benefits of personal training to potential
customers
16. Marketing Plan
Ways to market your Personal Training Business can include:
Social media
Websites
Flyers
Posters/Banners
Business cards
Newspapers
Car signage
Sponsorships
Word of mouth
17. Creating a Brand
A brand represents what a service or product stands
for.
– An easy way to communicate its value to potential customers
and clients
– An important step in establishing an almost immediate emotional
connection with a client
– Helps prepare the client for what to expect during the personal-
training experience
A brand establishes an instantly recognizable value
for the product or service being sold.
The benefit of developing a distinct brand of
personal-training services is the establishment of a
unique identity.
18. Images may give prospective clients
a correct / incorrect impression of what
your business represents!
20. Perspective Groups A Trainer Can
Target
Goal Orientated Groups
Weigh loss
Muscle Gain
Sports Performance
Improvement
Event Preparation
Demographic Based Groups
Male / Female
Youth
Elderly
Neo / Post Natal
21. Communicating the Benefits
Personal trainers should use the time working on the fitness floor to build as
many relationships as possible.
Trainers can have testimonials or have testimonials videos from current and
former clients on their web page and/or social media.
Trainers should try to work with clients in a visible area of the facility so that
other members can see the personal-training experience.
Independent contractors can create signage for their cars and make T-shirts for
clients with the trainer’s name and logo.
Trainers can use the Internet as a powerful and efficient tool for promoting
personal-training services via social media etc.
Trainers can create adherence, orientation, and/or education programs to
attract new clients.
22. Selling Training Programs
Training programs clearly communicate a defined outcome so
that the client knows what he or she is investing in.
A series of training sessions marketed as a program should
begin and end with the same specific assessments to show
the results gained.
The types of programs to offer might include:
– Performance enhancement
– Weight loss
– Event preparation
– Post-rehabilitation
23. Small-group Training
Small-group training involves a trainer servicing two or more clients
during the same session.
From the trainer’s perspective, semiprivate training provides advantages in
the areas of:
– Finance
– Time management
– Referrals
For the client, benefits include:
– A lower cost per session
– Enhanced camaraderie among
workout partners
24. Operational Plan
This portion describes the structure for how a business will
operate.
– Includes an organizational chart that identifies key decision makers and
the people responsible for executing those decisions
A trainer needs to decide which operational model to use.
– Sole trader
– Partnership
– Ltd company
– Franchisee
25. Risk Analysis Of Your Business Idea
There are several risks involved in owning and operating a business.
Risks can be categorized into the following general areas:
– Financial
– Competitive
– Staffing
Independent personal trainers will need to conduct an analysis to:
– Identify competitors
– Categorize the risks of competing in a specific marketplace
26. SWOT Analysis
A simple tool for conducting a risk assessment is the SWOT analysis,
Strengths, Weaknesses, Opportunities, and Threats
27. Financial Plan
To be successful, trainers should establish budget and
revenue goals for themselves.
1. The first step when establishing a personal budget is to list
monthly expenses.
2. The next step is to determine the number of training sessions
required to achieve the revenue to cover expenses (Break even).
3. Next, a trainer can determine how many prospective clients he or
she needs to communicate with to successfully market the
services.
A personal trainer must establish realistic goals for
income and the number of sessions required to achieve
that income.
The financial plan provides the specific details for how a
business will generate cash flow and produce a profit.
28. Creating a Realistic Schedule
The schedule for a personal trainer should include
time for all the following activities:
– Working with clients
– Client management
– Prospecting for new clients
– Developing marketing or
advertising materials
– Other job duties
– Exercise
– Personal time/home life