With 2021 here, there has been great headway made towards ending the pandemic. Experts estimate that this summer could be when our first return to normalcy happens, but what does that mean for your business?
Consumers will hopefully be out in droves, spending more than ever. To capitalize on this, your gym will need to have the newest gear, technology, and other resources to get consumers to come to your gym instead of a competitor.
Investing in your business after a lengthy recession may not be the first thing you are thinking about. If you aren’t sure about how to go about Gym Funding in 2021, keep reading this guide to ensure your business is able to expand safely and efficiently.
First, Identify Why You Need Funding
Most businesses that need funding need it for one of two reasons:
New funds will help them shore up a threat.
New funds will help them capitalize on an opportunity.
Sometimes in life, things happen, and we need money to bail us out. As a business owner, this can be an extremely scary situation to navigate.
Businesses that are in need of funding to get out of a precarious situation should really be looking for low-risk financial solutions that are intended to help business owners who are struggling.
This year, the SBA rolled out new low-risk, low-interest loans for businesses that needed a lot of financial assistance, quickly. If you find that your gym is in need of cash just to remain open, it may be time to apply for an SBA-backed loan.
For businesses that are not struggling, outside funding is often the best way to capitalize on a new trend or business opportunity within an industry.
If you are a business owner that is in need of funding to expand, there are steps to take to help make certain that you apply for the right capital solution for your business.
Pinpoint Areas of Opportunity
Before you can go out and apply for a grant or loan, you will need to identify where and why you need funding.
Within the fitness industry, there are plenty of opportunities available to help propel growth. These opportunities include, but are not limited to:
Showcasing gym safety
Investing in fitness technology
Diversification of the product offering
Business Expansion (new location)
Opportunities are truly endless within the fitness industry. Consumers are always looking for new ways to exercise, and as a gym owner, it is your job to provide these opportunities.
The financial aid that your gym chooses to leverage will be entirely dependent on the route of expansion that your business decides to pursue. Some gyms may only need a small technology purchase to hit their goals, while others may need to purchase a whole new building for a second location.
Whatever it may be, identifying the opportunity will help you better plan for the type of financial assistance that your business will need.
Choose a Funding Source
Now that you know how much money you need and what it is for, it is time to choose a funding source. Again, the capital solution that you choose for your business should be dependent on how much money you need and what you need the money for.
With that said, let’s take a look at some of the pros and cons of some of the most popular gym funding sources.
Small Business Loans
Taking out a business loan from a certified financial institution is likely the first funding option that comes to mind when thinking about business expansion, and for good reason. Lending companies today offer an array of loan options that are helpful for owners in any industry.
Guaranteed Funds — Not every funding solution will guarantee you delivery of your funds. When you agree on a loan amount with a business lender, you know that you are going to receive that amount.
Clear Repayment Plans — Anytime you go through a certified business lender, they will work with you to create a transparent payment plan that fits your needs.
Flexible Loan Options — A business loan can be as small as a few thousand dollars and can go all the way up to hundreds of thousands of dollars, meaning you can use them for
almost any business opportunity.
Some drawbacks of using a business loan are:
Strict Requirements — Certified lenders will have stringent lending guidelines that you must meet to qualify for a loan. Having a good credit score, healthy cash-flow, and a sound business plan will improve your odds of approval.
Cash-Flow Issues — Anytime you take out a loan, there is more stress to be financially responsible. If you take out a loan that is too big, your cash-flow can be disrupted, and paying off the loan can feel like your main business goal.
Crowdfunding
Crowdfunding has become an increasingly popular way to raise money. When crowdfunding, business owners take to online marketplaces where they can pitch their new business initiatives directly to consumers, in an effort to receive donations.
The advantages of crowdfunding are:
Zero Financial Risk — Unlike with a loan, crowdfunded efforts will not have to be repaid. This will allow you to test a new initiative with little risk attached.
Word Of Mouth Advertising — Crowdfunding sites can serve as a form of advertising as well. If a certain project begins to gain traction, it is often promoted to the front of popular crowdfunding sites, meaning more consumers will see and hear about your business.
Common issues associated with crowdfunding are:
Non-Guaranteed Funds — Crowdfunding sounds perfect in theory, but in reality, only 1 out of every 3 crowdfunding campaigns actually receives funding.
Time Commitment — Anytime you are asking people to give you money, there has to be some sort of presentation or call to action that explains why they should. Producing a crowdfunding campaign that sticks out amongst the crowd can be time-consuming and costly.
Grants
Grants are non-repayable funds that support specific industries and initiatives, that often come from the Government or another legitimate organization. Grants typically will be used for a specific purpose or effort.
The benefits of applying for grants are:
Zero Financial Risk — Grants will not need to be repaid.
impossible. This makes it difficult to rely on grants for guaranteed funds, especially in a time of need.
Time-Consuming Process — Like any other initiative the government leads, applying for a grant can be very time-consuming. The time taken from the application to grant funding may be longer than you can wait.
Competitive — Chances are that you are not the only business applying for a specific grant. Others will be vying for the same limited amount of funding.
The funding avenue you go down will be extremely important in determining the success of your gym’s new efforts this year. Make sure that you do your research into each and every financial solution that is available to you.
No matter what camp you find yourself in, growing or surviving, I want to make sure that you have the financial knowledge to be able to be successful. If you have any other questions about managing your gym or fitness brand, I am here to help — give me a call anytime.
AnOutsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.
Serving the United States, South Africa, Eqypt, Canada, Australia, Puerto Rico, Turkey. India, Asia, Serbia, Ukraine, Mexico, England, Norway, United Kingdom, Nigeria, Spain, United Arab Emirates, Quatar and Saudia Arabia.
Here are some of the most common problems I see club owners facing:
They don’t have enough time to scale and manage because they are putting out fires 🔥
They are barely breaking even or worse…..losing money 📉
They are experienced with fitness but not with running a business
They don’t know if they should sell their club or try to bring it alive 🏥
Because of this, they are impeding the growth of their club
If one or more of these sounds like a problem you have had recently, then it’s time to make a change.
I’m Jim Thomas and I’ve been specialize in helping club owners make the right decisions to take their clubs to the next level. If you would like me to personally audit your club, and provide you with a strategy session to see how we can improve your current situation, simply click the link below, fill out your name and number, and I will be in touch with you shortly! (Offer limited)
Because…..When the going gets TOUGH, the SMART get HELP.™
AnOutsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.
Many people dream of owning their own gym, being the boss, setting the rules, controlling their lives, and earning for themselves. Starting a gym can be difficult. You have to spend a lot of time and money coming up with an idea or service; testing it; developing its production or operation, marketing and selling it; hiring people; finding a location; sourcing equipment and vendors, and attracting new members. Many of these start-up frustrations are bypassed when you buy an existing gym. There is no better time than today to pursue your dream of owning your own gym.
Why should you buy a gym?
1. The gym has immediate cash flow from day one.
You start earning as soon as you sign the purchase contract.
2. Existing membership base is already in place.
Start-up ventures sometimes fail because new members do not come for some time despite the initial investment and the work you put in. Contrast this with an established gym that has a loyal member base. You should keep your members by maintaining the status quo for some time before introducing any changes.
3. The risk of the gym failing is lower.
Buying an established gym with ongoing cash flow, proven systems, a known brand, existing members, and a good reputation is less risky than starting a new gym.
4. People know the gym brand and logo.
You do not need to introduce the product or service because the public is already familiar with the brand or image of the gym. The gym name and logo are integral to the value of the gym.
5. The gym has a reputation in the market place.
A gym with a good reputation and a popular product or service is a good buy. A positive reputation in the market is a product of years of work.
6. Customers know the gym location.
It is to an advantage to buy a gym in operation for some time in the same location.
7. There is less need for training of employees.
The current employees are familiar with the internal workings and systems of the gym. Make sure that the key gym employees who are well trained and knowledgeable in the operations of the gym will remain after the sale. They will guide you through the transition.
8. Marketing, sales and operating systems are already in place and working.
It took trial and error and many months or years to fine-tune the sales and marketing, order of procedures, accounting, payroll, operations and inventory systems that are behind the success of the gym.
9. Financial assistance is available.
An established gym is usually offered better financing terms by banks and by suppliers. Even family or friends may be willing to finance part of your new venture, or the expansion of a gym that has proven itself over time. Existing gym purchases are considered safer investments whereas start-up gyms are deemed risky.
10. Interest rates are low.
Most financial institutions offer low interest rates now that the dollar is weak. Established gyms with good credit are getting good terms.
Achieving financial independence and pursuing your passion are two more reasons why you decide to start a gym. However, buying a gym requires capital, time, hard work and handling some risk. Are you ready to own a gym?
An Outsourced CEO, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.
Owners of Health Clubs and Gyms all reach a point in the history of their enterprise when it is time to “hang it up.” Many factors will tell you when it is time:
♦ Gym Owner’s “burn out” Owner’s or key employee’s health problems ♦ Business relocation or rerouting of expressways ♦ Lease expires and you do not want to renew for another term ♦ Changing technology Get estate in order ♦ Not interested in investing long-term capital ♦ Children do not want to enter family gym business ♦ Under-capitalized ♦ Largest accounts in financial difficulty ♦ Bank unwilling to renew credit lines for gym financing ♦ Supplier and gym vendor problems ♦ Staff problems ♦ Gym member’s habits changing ♦ Seeks retirement ♦ Wants to cash out and go fishing
Whatever the reason, you will need to plan an orderly transition to new ownership with less involvement on your part. For a confidential conversation, contact me now at fmconsulting.net/contact or call/text 214–629–7223 and I will get right back with you.
Now, we have three different ways we can potentially help you.
1. For gyms that are profitable (usually 20% margins) and with clean books, we can have one of our brokers contact you for a potential marketing and listing of your business.
2. If your gym is not profitable at this time and you want to maximize your opportunity, many clubs will employee our consulting services to help build their club back up before trying to sell and to ensure a maximum return on investment.
3. Regardless of the circumstances of your gym, you may choose to list it yourself and do a “for sale by owner.” You can register at fmconsulting.net/gymsforsale and fee is $149.00 for 3 months.
Please let me know where you see yourself and I will get you with the right person. Call/text 214–629–7223 or fmconsulting.net/contact
Thank you.
Jim
An Outsourced CEO, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.
Health Club and Fitness industry revenue is expected to reach $32.9 billion by 2020. Although the industry is trending towards growth, many health club owners still struggle to make a profit. Payment issues, member and employee churn, and reliance on inadequate health club management technology are just a few challenges gym owners typically face. Less than 50% of new fitness clubs expect to survive beyond the first five years in business. With that in mind, it is important for modern health clubs to understand the industry and how to operate efficiently to reduce costs and monitor sales and profitability. This Guide covers ways to improve efficiency and profitability in your health club.
Companies in the health club industry operate fitness and recreational sports facilities that offer exercise equipment and recreational sport activities for consumers. The industry can include health clubs, fitness centers, gyms, studios, wellness centers, athletic centers. Some health clubs cater to consumers on the basis of convenience by offering low-cost memberships with full operational hours. Comparatively, niche studios have appealed to consumers by offering classes with specific workouts or environments .
According to IHRSA (International Health, Racquet & Sportsclub Association) the global number of health club members increased 33.60% from 2008–2017, with the health club industry, in general, comprising $87.2 Billion in revenue in 2017. You can learn more details by purchasing the IHRSA 2018 Global Report: The State of the Health Club Industry.
While the health club business is booming there is also a lot of competition and many variables that impact clubs financial success. Having a health club does not mean you will instantly be able to make it profitable. That takes a lot of hard work and knowledge. Operating a profitable health club is about balancing what generates revenue while controlling what costs money. Check out the blog post 7 Keys to a Profitable Health Club Operations blog post for more detailed information on these key points for success.
Keys to Profitable Health Club Operations
Member Experience — Give members what they really want and they will become an important part of your sales and retention strategy. If your members have a great member experience and delight them, they will remain loyal members and tell many many others about how great you are. Read more about why Member Experience Is Key to Health Club Success
Attitude — Having the right mindset to succeed in the health club industry is key to winning in the health club industry. Check out these two in-depth articles for keys to being a successful health club operator:
Impact of the Health Care Crises and Consumers Taking Charge of Own Health
Health Club Industry Disruption — In addition, disruption in the Health Club Industry is causing new realities for health club operators that they need to address. Learn what the Health Club Operators should focus on to be successful in this article 5 Strategies to Guide Health Club Operators in Health Club Industry Disruption:
Clear Business and Competitive Strategy
New Business Model Innovation & Services
Strategic Partner Selection
“Frictionless” Member Experience
Digital Technology Transformation
Health Club Technology — Health club, fitness, and wellness businesses and entrepreneurs are rushing in to take advantage of growth opportunities while juggling a lot of uncertainty in an evolving and hyper-competitive marketplace being impacted by increasing technological change. The implications of technology on the health club, fitness and wellness industries cannot be understated. Evaluating technologies for your fitness business is important as an owner or operator. Check out this guide 5 Criteria to Evaluate New Health Club Technology for more information.
Health Club Financial Management
Create a Health Club Business Plan
As a health club operator, it is important to take the time create and continually update your health club business plan to guide your operation and to communicate value to your members and staff. Defining processes to support the successful implementation of the plan is also important. Review this information to guide you in your planning process 5 Tips for a Successful Business Plan
How to Measure Health Club Success
Owning a successful health club gym requires a certain level of focus and dedication to the underlying statistics which drive revenue-focused business decisions. These metrics provide owners valuable insights to understand and identify trends, gauge satisfaction rates, and highlight problems as they emerge in order to enact swift resolution. Below are the crucial metrics and every club owner must understand:
1. Health Club Membership Retention
It costs on average 10 times more to gain a new member than to retain an existing one; this makes your current group of members the most important audience to please. You can track overall retention by measuring.
Churn rate — the percentage of members who cancel their membership
Average tenure of members — how long members stay members of your gym
Estimated lifetime value of a member — how long that tenure is worth in dollar value
It can also be helpful for owners to track metrics which can help forecast retention, like a member satisfaction score. The most common way to measure member satisfaction is the “Net Promoter Score,” a metric which scores how likely your members are to refer friends to the facility. Tracking this metric over time can help you identify member churn events before they occur. For example, let’s say your facility had multiple equipment malfunctions and significant delays in getting repairs. You would likely see a significant drop in your Net Promoter Score which can indicate that members are at risk of cancelling. View more tips and strategies to increase health club member retention: Member Retention Strategies for Health Clubs
2. Health Club Sales, Prospects & Pipeline
Prospects are the people who have called, emailed, filled out a form on your website, or entered into your gym to gather more information regarding membership. In order to forecast revenue correctly, it’s critical to have a keen eye focused on how many prospects make up your gym’s sales pipeline month-over-month, the dollar value of said pipeline, and what your average close rate is. Be sure to also track Prospect Status. This metric will tell you the results of your sales efforts by tracking the conversions of those who showed interest in your facility. Are they still a prospect? Have they converted to a Member? Or, did you mark them “Dead?”
Tracking revenue per member, membership usage, member churn, and average membership length will also provide you with valuable data. If you cannot measure If you are using gym management software, it, you cannot improve it. Setting realistic financial goals you can use this tool to manage your and tracking them monthly, weekly, and even daily will pipeline and set up automated email help you achieve a level of granularity that will expose outreach to increase membership sales. leaks in your revenue generation efforts.
Personal Training — Personal training is often the second largest source of revenue for many health clubs and, in the case of many of today’s fitness concepts, it’s their primary source of revenue. Many club owners find it difficult to make personal training a priority or just don’t know exactly how to increase personal training revenue by getting more people to pay for one on one personal training services. Review 5 Strategies of How To Increase Personal Training Revenue In Health Clubs for guidance.
Health Club Employee Management
Every two interactions a member has with fitness staff in a given month results in one extra visit from that member the following month. It is essential to understand the correlation between employee turnover and member retention. Members value engagement from staff, and the staff values happy members.
Retaining and engaging employees is as important as retaining members. Many costs are associated with hiring and training new employees, so keeping the high performers in order to minimize hiring and onboarding costs can save your facility serious money and a lot of headaches. Here are some tips to keep employees engaged while boosting your facility’s efficiency:
1. Create a thorough onboarding process.
Supply employees with all information needed to prepare for the job: introduce them to the tools and team they will work with, and orient them to the facility. This process should be standardized, making it repeatable and reliable. When new employees are trained at the discretion of whoever is working that day, significant details could be left out. Helping everyone stay on the same page builds trust among your employees while relieving you of actually training new people yourself.
2. Invest in employee education and training.
Similarly to the onboarding process, weekly staff meetings — as well as training sessions on gym equipment, software, and POS systems — keep everyone aligned in terms of club goals and how to use technology. Employees should also be familiar with new workout routines and techniques so they can help any member that might need assistance. The ability to recommend specific classes or trainers based on desired goals gives employees a greater sense of knowledge and credibility to members. This education creates more inherent value in whatever role that employee has and also instills a greater sense of trust between the member and employee. Members should feel confident that most questions they have can be answered by the staff at hand.
3. Offer employee incentives.
Reward employees when they do a great job. This incentivizes them to continue striving above and beyond and demonstrates that you recognize this behavior. How you measure the benchmarks for rewards is up to you. Consider things like the number of new members signed up or positive reviews left online or in a suggestion box. If this is clearly spelled out to employees, you offer them a clear line to rewards. These prizes should not be given out randomly, but rather enshrined in a well-defined and circulated document. You’ll be able to tell if this works by analyzing the metrics that the awards are based off. If your employees truly feel incentivized, you’ll achieve those goals much faster. Also, if this ends up costing your gym more than it produces, consider revisiting how you reward employees. Cash is always nice, but free membership packages or gift cards to local restaurants might prove more sustainable.
4. Test employees’ knowledge.
Quiz employees regularly to ensure they understand all processes and procedures thoroughly. This can be done through multiple choice quizzes or in-person roundtable discussions. Give them the opportunity to ask questions in weekly meetings and provide their feedback for overall facility improvement. Sometimes a shy employee might not bring up what he does not know for fear of losing his job or your trust. Encouraging a welcoming environment of learning without stigma will eventually create an educated workforce unafraid to ask a question or speak up when something is not clearly explained. You can also reward employees for their knowledge of your gym, as mentioned before. Be sure to keep tabs on the people trying to learn the most. The more your staff knows, the more helpful they can be to members.
5. Adopt a Member Focus Approach
Adopting a member focused approach, offering different experiences, products, and services to different customers based on their individual needs, is a key ingredient and philosophy for success in the health club industry today. This approach puts customers at the center of business strategy, places an emphasis on customer service training, and aims to maximize the lifetime value of health club members. The lifetime value of members being one of THE most important key performance indicators in the health club industry today. Do you want to get your staff to adopt a more member-centric approach in your health club business? Learn how to implement a member focus approach in this article 6 Member Focus Strategies For Health Club Staff.
6. Create a Personalized Member Experience
Consumers in general along with gym and health club members expect personalized communications and services tailored to their individual preferences. Personalization in the health club, gym and fitness industry c needs to go beyond basic tactics like addressing customers by their first name in emails or providing one size fits all workout or exercise programming. Creating new fitness solutions and messaging using technology helps to Hyper-Personalize Health Club marketing and services. Explore some of the factors and technology influencing health club personalization and how it improves sales and retention with great member experiences in Why Member Experience and Health Club Personalization Matter.
Genomics to Personalize
3D Body Scanning
Artificial Intelligence and Predictive Analytics
Health Club Sales and Marketing
Health club management software allows you to create effective sales and marketing strategies with the data provided through detailed reports. Surveying members and guests is a great way to collect useful data to use in your sales and marketing plan. Use data from these surveys for advertising, branding and giveaways. Email marketing is another great tool to use to keep your members engaged, as higher member engagement can lead to extra up-selling opportunities.
Increased revenue is the ultimate goal for any owner, and using management software as a sales and marketing tool will lead to this. As members have the ability to sign up for automated payments, you’ll see a more consistent revenue flow while creating a more enjoyable user experience. Positive member experiences keep them coming back, giving your gym the powerful marketing tool of word-of-mouth. Encouraging your current members to share their great experiences via social media is a great way to increase member growth. Health club management software allows you to send marketing emails to your current members encouraging them to share these positive experiences.
Increasing Membership Sales
Every health club club manager knows the dilemma: gym membership sales surge in January with the ambitious New Year’s Resolution, but most of these new gym members fail to remain dedicated throughout the year and many will even cancel their memberships. For many health clubs and fitness centers, increasing sales consistently throughout the year can be a challenge, but with some strategic planning, the right tools, and ongoing member engagement, this revenue inconsistency can be mitigated. Review these articles for guidance on increasing sales:
Today the most competitive health club business models and brands understand that they are operating in a digitally driven world made up of consumers who now have more choices and options regarding how they achieve their fitness, health, and well-being. They also know those customers are spending more and more time on digital channels making it more important to use the right data to help you market your health club effectively. Learn more about how to use health club data in this in-depth review: 5 Ways to Use Data For More Effective Health Club Marketing.
Learn how to use data to differentiate from competitors in How To Create Health Club Differentiation Strategies With Data. Many health club operators in the fitness industry are drowning in data and unsure about how to use it. This is understandable since much of that data is unstructured; it takes many forms from documents, content, check-ins, payment methods, workouts, member demographics, along with a lot of other information that usually doesn’t reside in conventional databases and can’t be parsed by algorithms or machine analysis. The intelligent use of data is going to significantly impact every business and industry in the years ahead. Learning how to use data to differentiate from competitors will provide an advantage.
Regional Marketing
Developing a marketing strategy for your health club is a daunting task, but it is necessary for acquiring new customers. However, this challenge can be significantly reduced by utilizing a regional marketing strategy and leveraging the capabilities of your gym software to attract new customers. Regional marketing is targeting your marketing efforts towards a specific geographic region that makes sense for your business, which can save you time and money. These gains in efficiency are amplified when regional marketing is combined with the power of health club management software and data. Check out the 5 Regional Marketing Methods Leveraging Health Club Software.
Marketing and Sales Technology: Marketing Automation, CRM, and AI
How can automation and artificial intelligence (AI) help businesses in the health club and fitness industry? The integration of CRM software, automation, and AI with human interaction creates better member experiences.
“Now we’re in a place where just getting [information] into a database really is not a big deal anymore. Now, it’s what are you going to do with that information.” — Adam Stokar
Learn more about how Health clubs and fitness businesses can better leverage technology in these resources:
If there were a proven way to increase online membership sign-ups for your health club, wouldn’t you incorporate that into your recruitment campaigns? A social media strategy is a tool providing valuable results. Take advantage of these new social media trends:
Instagram and Instagram Video Marketing Strategy- Half of over 1 billion Instagram users are scrolling through their feeds every day. 80% of those users follow businesses. Here are some even more interesting stats which should help you strongly consider sharing content and advertising on the Instagram platform. The latest updates and what to expect in the near future from Instagram are outlined here as well. One of the biggest shifts for Instagram last year was IGTV (Instagram TV) which really changed the Instagram platform. This addition to the Instagram app transformed Instagram from just sharing photos to a more advanced video platform. For an in depth guide on how to use IGTV read Create A Health Club Instagram Video Marketing (IGTV) Strategy.
Marketing Website1. Create a Member Friendly Website
A gym’s website is a virtual front door. Just as a potential member would walk in to observe a clean facility and be greeted with friendly smiles, you want to ensure your website has the same ambiance. In today’s market, a well-designed website attracts new members and increases your profit margins. When someone considers joining a gym, they research it beforehand and make their own assumptions, regardless of what your gym actually is like. Therefore, every website must include the Who, What, Where, When, and — most importantly — the WHY of your business. The website should clearly explain the following in detail:
Who you are: This includes background information on the gym and how it all began. The amount you decide to divulge varies based on the organization, but putting a story behind your gym and creating a communal environment will draw people in — we are social beings after all. It’s also important to provide photos and descriptions of employees so prospects can put a name to a face if they search your website for information.
What you offer: Are you a pilates studio, or a crossfit gym? Guests need to know what types of fitness you cater to before they even consider signing up for a membership. Clearly articulate in what area of focus your gym specializes and you’ll attract the right type of clientele. Photos or videos of equipment, member testimonials, and online class schedules can help present this information clearly to web visitors.
Health Club Facility Location: Google Maps is an easy tool to add to your website with your address and directions to your facility. That, as well as Yelp, are two absolute necessities in today’s smartphone era. Long gone are the days of the yellow pages.
Google Maps Many prospective members may search, “gyms near me.” To accommodate for these searchers, Google Maps offers new features to help them make informed purchasing decisions and, if completed correctly, can make your gym stand out. Make sure your Google results showcase:
Positive ratings
Positive testimonials
Contact information (including site link)
Hours of operation
Photos The more you can use Google as a sales and marketing tool, the less work you will have to do to attract new members. People out there want to find your gym. Google just needs to know where to point them.
Why they should join your facility Include why your particular location is the best one for the potential member. If there are many competitors in your area, why should they choose you? Maybe you cater to a certain age demographic that seeks special classes, or your fitness center has a daycare. Whatever it is, your website needs to convey key differentiators to attract a devoted membership base.
2. Three Addtional Website Features to Consider
SEO A user-friendly website filled with information about the facility builds online credibility. If a prospect performs a Google search for a gym in your area, your goal should be to show up first in the search results or at least on the first page of results. Consider researching and implementing Search Engine Optimized (SEO) content and tags. This means researching and adding keywords to specific locations on your website. For example, someone looking for a yoga studio in Dallas might search “best yoga studio in Dallas.” You could then add that phrase strategically throughout your website to attract more web traffic. Be careful, however, to not “keyword stuff” your content. Search engines will pick up on content that just seeks to attract web traffic without providing valuable content.
Member Portal Additionally, your website should allow members to manage their memberships. By utilizing an online portal, you can upsell existing members by encouraging them to sign up for classes and schedule personal training sessions. The more opportunities to upsell, the better. After all, retaining a member is way easier than gaining a new one. A member portal also helps position you as a tech-savvy gym that cares about the member experience. The more up-to-date you can stay on membership technology, the more likely you are to retain and acquire members.
Website Content Pages Including a blog on your website is an ideal way to provide fitness tips page views, traffic channels, bounce rate, and time onsite can tell you a lot and tricks for your members and prospects. Educating members and about where your prospects come from sharing information about the health and fitness industry through a and what they look for on your site. Blogs keep members informed and engaged. Apply SEO practices as mentioned above to gain as much organic traffic as possible. Also, be sure to include forms with a clear call-to-action for prospects to obtain more information about certain content, like videos or workout tips. These call-to-action buttons should stand out from the rest of the website content and include decisive, actionable language to encourage some sort of interaction.
Health Club Payment Processing
When looking to keep overhead costs low and achieve profitability, automate everything. As membership numbers increase, so does the number of membership dues that need to be collected. Tracking down members for payment becomes a time consuming, difficult, and repetitious task, slowing down efficiency and hurting your profits if employees do not follow up correctly. Review more about health club payment processing and security in the Guide To Health Club Payment Processing & Security. Avoid these problems, by implementing a payment processing service to automate those monthly payments. Here are a few revenue-related benefits of implementing a payment processing solution:
Boosts revenue — Automated recurring payments have been hailed as “the holy grail of SaaS revenue” by MarketingLand.com. It helps both the gym and member by providing a predictable way to budget.
Saves time — No more manually processing payments or tracking down delinquent members to collect dues. These solutions generate reminders and automate monthly payments straight from bank accounts or debit cards.
Enhanced security — Ensure members that their account information is secure.Recently, a number of large-scale data breaches have compromised millions of Americans’ personal information, like credit card numbers, social security numbers,and medical records. To avoid breaches, fitness clubs around the world are implementing end-to-end encryption (E2EE) to ensure their data is protected. Invest in this technology to keep your members as safe as possible.
Happier members — Members no longer have to worry about making a monthly payment as the process is automatic. Reminders and receipts are available in member’s online account portal.
How Payment Processing Works
Once a member has signed up for a membership through gym management software, they have the option to connect their bank account or credit card for automatic recurring payments. The agreement they signed determines the frequency of the payment, which is typically monthly, but could be quarterly or annually.
On the days the member’s payment is due, the billing system automatically sends the payment information to processing companies. For payment made by debit cards and direct debits, the member’s bank account will be charged. For payment made with credit cards, the member’s credit card account will be will used. Money will move from the member’s debit, credit, or bank accounts and deposited to the club’s bank account, net of processing fees.
Health Club Management Software
Owning a gym can be time consuming if you don’t have automation in place to help increase the efficiency of daily administrative tasks. By implementing gym management software and payment processing services, gym owners eliminate time consuming administrative tasks like member check-in and communication, personal training scheduling, and booking group exercise classes. It also empowers members to stay on top of any account needs.
Key features of health club management software should include:
Online membership sign-up — online portal offering prospect sign-up via mobile device or app
Member check-in — Sub one-second check-in with fingerprint, key tag, key fob, pin code or name search. Stop writing names on paper or scanning every member’s card yourself.
Member account management — Members can schedule payments online and book classes, freeing up your front desk staff for more important tasks, like assisting an injured patron, cleaning up a mess, or answering any facility-related questions.
Employee management — View and manage employee schedules, department responsibilities, and figure commissions by percent or flat rate with gym management software. You can even integrate a time clock, making sure everyone’s time is fairly and accurately recorded.
Point of sale — Track petty cash, ring up items, and email receipts in one sleek, digital location
Electronic agreements — Capture digital signatures and save money with a paperless process. This also decreases the likelihood that important documents relating to membership agreements go missing.
Report management — Create unlimited custom reports for multiple clubs, or schedule reports to run automatically via email in Excel, PDF or CSV formats. This is crucial in understanding metrics as described in Understanding the Numbers section.
However you decide to maintain or achieve profitability, keep in mind our five methods. The technology exists to help you understand every single aspect of how your gym creates and loses money, from employee management to automated due collections. Now it’s up to you to implement that technology and use it smartly.
How ABC Financial Can Solve Health Club Challenges
ABC Financial is the nation’s leading club management software and payment processing provider. The club management software tool, DataTrak, and payment processing services can help run an efficient and profitable fitness club by offering the following features:
Automatic payments — EFT/ACH monthly auto drafts and automatic credit card updates
Dashboard — get snapshot views at daily, weekly and monthly goals to view progress against goals
Scheduling — manage departmental calendars, track services, classes and sales opportunities and send event reminders via email or text messaging
Security — ABC is a Level 1 PCI DSS Compliant Service Provider and all software is password protected
Want to take a look at what health club management software and payment processing can help you run an efficient and profitable health club, fitness center or gym? Sign up for a demo today!
An Outsourced CEO, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.
There are many reasons why you might want to sell your gym. Maybe you’re moving across the country and it’s just not going to be feasible for you to run your gym from there. Or maybe you’ve made enough money and decided to retire. Or maybe you found that your other fitness businesses, such as yoga or dance classes, were doing better in that area. So you’ve decided to stick to those and sell off the gym. Whatever the reason, it’s necessary to present your gym in the best way possible so that potential buyers will fall in love with it. And a gym broker can help you to do this.
Equipment Maintenance
If you want your gym to fetch a fair price (or even a price that’s above market value) you’re going to have to maintain it well. If you’ve always maintained your gym in good condition, you won’t have much to do at this point. But if you haven’t, it’s a good idea to go over your gym and check out the condition of all your equipment. Is it in good shape and functioning smoothly?
Do your treadmills or elliptical trainers need to be repaired? Are your weight machines in good shape? Are your free weights gleaming in a row or are they rusted, thus posing a health hazard? You may not want to bother with all these little things, given that you are selling your gym. But taking care of all these problems now will make sure that you get a good price for your gym. When the potential gym owner walks in, they want to see a gym in good working condition, not a fixer-upper.
General Maintenance
In addition to functioning equipment, you also need to make sure that your gym looks overall presentable when a potential owner walks in. It doesn’t hurt to give it a coat of paint, get the windows cleaned and fix any leaks that might have occurred over the years.
General cleanliness is also important. It’s a good idea to get professional cleaners to come in and thoroughly clean your gym. Throw out gym mats that are ten years old and get new ones. Make sure your carpet or flooring are clean. And most importantly, make sure your gym is well-lit and has an active feel. This will help you make that sale.
Contact us for more great tips for selling your gym.
An Outsourced CEO, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.
“While we share the ‘how to’s,’ we help you effectively apply success principles yourself. Our programs are designed to give you quick measurable results.” ~ Jim Thomas
A Recommendation of Jim Thomas, President of Fitness Management and Consulting
by Norm Cates, Club Insider Publisher and Tribal Leader Since 1993
Jim Thomas is a talented, experienced, dedicated, determined, and very professional expert in the health, racquet and sportsclub industry. A club industry veteran of over 30 years, Jim has been a Club Insider Contributing Author since March of 2006, when he joined our Club Insider Contributing Author Team. During that time Jim has written and contributed 50 articles which have been published during our 284 months of Club Insider publishing. Jim Thomas is a truly great asset to our publication, and to our wonderful industry, and he can be trusted to deliver great results, over and over, no matter what the challenge.
