Strategies

I hear many gym franchisees close their doors in the first year. How can I know this won’t happen to me?

By July 23, 2018 No Comments

There’s no getting away from it; the fitness industry is competitive as hell. You have to constantly evolve, innovate and take on trends whilst sustaining the success that you already have. You need to know what to change and what to scrap and when to do it. It’s a mother-f**king minefield, and the industry is only getting bigger.

You have to be muscular. You have to be exciting. You have to be loud. You have to be bold. That’s why you’ve got us.

Success in The Fitness Industry

Success in this business is like dieting. If you diet today and you diet tomorrow, you won’t see results the day after that. There is a delay. It takes time for strategy to take effect. Give the diet 4 weeks. You’ll look in the mirror and be like “damn, how did I lose that weight so fast?” The fitness industry is the same; it’s not happening for you fast enough and before you know it you are miles ahead of where you started. Make sensible decisions early, but don’t expect a pay-off for weeks, even months. C’mon, be real about this.

Reasons Why Franchisees Fail in The First Year

So, here’s the thing straight-up: gyms and fitness facilities do fail. It’s usually down to the same old mistakes, so knowing them now is paramount.

1. Hidden Franchise Fees. Many businesses fall foul of this, because they didn’t read the small print. All the little things add up, and if you don’t project your finances properly, your budget goes right out the window. You need to start off with capital, you got to have cash in your pocket. Often franchisees just look at the upfront cost, but forget to put money aside for those first few negative months.

At S&P we charge a flat fee per month. No surprises here, you know exactly what you are paying, it’s made crystal clear. We are also here to make sure you understand the industry and the business model, and how to get to a profitable state as fast as possible. Fitness business margins are small, so it’s all about smashing through that leverage point.

The S&P franchise business model is a leveraged service model. What the hell does that mean? It means you will always have a set amount of operating expense until you can leverage; i.e. get more members and bulk out your class sizes.

2. Marketing. Success in every business is all about marketing now. There’s no excuse for bad marketing, you are just shooting yourself in the leg. But, marketing costs a wad. But marketing is an expense you have to afford, you simply NEED to get seen. End of. The average person sees 40,000 marketing messages a month. Combine that with being in a super competitive industry… it’s a hurdle, and you need all the help you can get to jump it. Our marketing strategies have failed more times than we care to share, but it’s because they failed that we worked out how to make them not fail, again and again and again…so now, well, now they’re sh*t hot. And they WORK.

3. The Fitness Industry: Competitive as Hell! Who are your competition? Well you’ve got corporate gyms, leisure facilities, sports clubs, online programs and lone wolf PT’s on the prowl. Anyone can do a 6-week course and call themselves a PT, and if they market themselves right, they might even make a decent living at it! The whole thing is a minefield. You need to be running your business at the highest level, that is the only way to guarantee success. You have to be tenacious, ballsy and hungry. We suggest the snipe approach – every output must have maximum return. Nothing is done unless it has been designed for maximum profit. And this is the mantra from which the S&P approach was born!

Leave a Reply