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Friday, July 20, 2012

Characteristics of gyms that succeed

About Jim Thomas’ Fitness Management & Consulting

 Jim Thomas is the well-known founder and president of Fitness Management USA, Inc., a management consulting and turnaround firm specializing in the fitness and health club industry. 

With over 25 years of experience owning, operating and managing clubs of all sizes, Mr. Thomas lectures and delivers seminars and workshops across the country on the practical skills required to successfully build teamwork and market fitness programs and products. 

Since forming Fitness Management, Mr. Thomas has been turning health clubs around at an amazing rate and garnering a reputation as a producer of change…a sharp-eyed troubleshooter, a brilliant sales trainer, and a motivator.  Fitness Management provides programs that show measurable results and Jim’s team is proud of their ability to glean profit from every square foot of a client’s investment. 

A dynamic, articulate motivator, Mr. Thomas exudes confidence without artifice and accomplishes wonders without the bruised feelings that can so often accompany change.  “We pride ourselves in reaching people and motivating change in a way that encourages self-esteem on the part of the players.” 

Whether you operate a health club, fitness center, gym or other type club, Jim Thomas and Fitness Management have a program to fit your need, expand your market base, and keep your members and staff productive and enthusiastic. 

Jim can be reached at jthomas@fmconsulting.net, 800-929-2898 or by fax at 214-292-9553 

Characteristics of gyms that succeed 

  • The club conducted a third party feasibility study and projected sales growth conservatively
  • Management brought proven sales, service and management skills to the project
  • The club has sufficient operating capital to cover inevitable cash shortfalls in its first 6 – 18 month period.
  • The owners regularly reinvest in the facility.
  • The club operates within normal industry expense range.
  • The club enjoys a reputation for cleanliness, friendliness, hospitality, efficiency and integrity.
  • The club is involved in community activities and enjoys proactive relationships with community leaders and community institutions.
  • The size and scale of the club is consistent with the potential of the market.
  • The club negotiated lease agreements that keep lease payments, once the club reached maturity, in the 15% to 18% range.
  • The club exceeded its revenue projections in the first 12 months of operation.  The measure of a club’s long-term success can almost always be accurately projected from how it performed in its first 12 months.  A fast start is a sure sign of a successful club.  Conversely, a slow start is almost always a sign of future trouble. 

Characteristics of gyms that fail 

  • Developers never conducted third party feasibility study.
  • Owners/managers had no previous club sales, service or management experience.
  • Club owners consistently chose not to reinvest in club while continually extracting cash from club.
  • Club had marginal location and/or poor visibility and accessibility.
  • Club facilities were inferior in size, quality, and cleanliness to those of close competitors.
  • Club never has sufficient operating capital.
  • Club’s routine response to competition was discounting.
  • Club was unable to operate within standard industry expense ratios.
  • Club acquired negative image because of sales tactics, service quality or unkempt facilities.
  • Developers built “too much club,” I.e., the scale (size and cost) of the project exceeded by far the ability of the market to support it. 

Thought for the Day

A man fell into a deep hole and couldn’t find a way to get out.  Several people walked by and the man pleaded for help.  Each person stopped and tried to help him, but none of them could see how to get him out of the hole. 

Then, a friend was walking by, heard him crying out, and stopped.  When the friend saw the situation, he jumped into the hole. 

The man cried, “Why did you jump into this hole?  Now, we’re both in here!” 

And the friend replied, “Yes, but I’ve been here before and I know the way out.” 

Moral:  You don’t need to know how to do everything yourself.  You need to find enough friends who can help you when you don’t know. 

When The Going Gets TOUGH The Smart Get Help

www.fmconsulting.net

800-929-2898 | jthomas@fmconsulting.net | Skype: jtmanagement 

New Gym Start ups * Gym Sales Training * Operational Analysis/Troubleshooting and Turnarounds * Real Estate Site Selection/Lease Negotiation/Broker * Webinars/Tele-Consulting * Gym Equipment and Accessories * Direct Mail * Leasing & Finance *

 Corporate Fitness Management * Health Club Promotions

 

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