How Gym Owners Can Reject the Recession and Build a Thriving Business
In a time when many gyms are struggling or even closing, everything on the internet and television focuses on downsizing, rising costs and economic turmoil, it is hard to avoid that sinking feeling. But as gym owners we really have two choices: We can let the negative media send us into full panic mode or we can view the economic downturn as an opportunity to increase our market share.
This is a time in the economy when fortunes can be made. While some gym owners are giving up and closing their doors, their competitors are seizing opportunities in the market place. Here are some thoughts on how to thrive in the gym business during tough times:
1. Keep marketing your gym…and keep marketing.
Even though your first instinct may be to cut back on marketing, promotion and advertising, this is the worst time to cut back. Gyms that continue marketing through a slow economy are the ones that come out ahead when everything begins to turn. Make sure you have a marketing plan of action in pace and stick to it. If your current marketing and promotional efforts aren’t producing results, try new strategies until it does. When done correctly, marketing is an expense that should pay for itself. Find proven strategies and then keep doing them.
2. Don’t be afraid to discount membership fees
The harsh reality is that your members and guests are holding on to their money more tightly. The key to unlock their wallets is in discounts. Reevaluate your membership pricing strategy and offer membership discounts off your most popular memberships and gym services. This may also be a good time to lower your memberships across the board and then advertise your new lower prices.
3. Leverage the Internet for marketing and exposure
Are you selling memberships, supplements, gift certificates and other gym services from your website? Can you expand your sales channels by selling on other sites? Are you reaching your members and club guests with e-mail marketing? Is your website optimized for the search engines? Have you tried Google Ad Words? It doesn’t have to cost a fortune to implement an online marketing and sales strategy for your gym. Even if you simply add gift certificate purchases to your website, you could uncover a whole new revenue stream. Seek out an online marketing expert and evaluate the opportunities.
4. Form a gym group for some possibility thinking
Get together with your key gym staff or assemble a small group of people who understand your business and brainstorm some potential opportunities. When several people get together with a blank slate and some good energy, good things can often happen. Ask for ideas — you might be surprised by the results.
5. Tap into a new niche for your club
Is there a niche in your gym that you have been meaning to focus on? Can you uncover a new market that makes sense for your gym? Pick a new market and then develop a plan of attack.
6. Reach out to your member base
One of the most overlooked gym opportunities comes from your existing and past gym members. The fact that they have already done business with you makes it far more likely that they will do business with you in the future. Make sure you are marketing to them, reaching out and reminding them that you are there. Ask them for referrals and offer a powerful incentive such as a cash reward or gift card for referrals when they refer guests or new members.
7. Make improvements in your gym operation
This is an ideal time to evaluate all of your gym policies and procedures. Do they make sense in this economy? Is your customer service team delivering up to your standards? Could your membership sales team benefit from some additional training? How can you help your gym perform even better? What are steps you can take to improve member loyalty? Look at your gym through a magnifying class and seize the opportunity to improve it across the board.
8. Survey your members
A lot can be uncovered by reaching out to your members and asking them for feedback. Develop a short list of questions that include ratings on your gym, services and staff. Ask specific questions such as, “How can we improve your experience with us?” Once you receive the survey results, evaluate them and take action to make improvements. Let your members know that you heard them and share what improvements you are making in your gym as a result of their survey responses.
9. Keep an eye on capital
What goes down must come up and the economy will rebound, though it may be awhile. If sales are slower than usual, formulate a plan for getting through this period. You might need to open a line of credit, visit your bank and apply for a loan, seek private funding or even bring in a partner. Running out of capital can quickly kill a gym. Make sure you assess how much you may need before you need it and have a plan for forging ahead. Investigate bartering.
10. Get some help and keep your eye on the ultimate goal
Now is a great time to sharpen your own skills. Take some classes, read some books and network with others in the gym industry so you can learn from them. Get involved with IHRSA and other groups and make sure you are on top of your game. Look for joint venture opportunities. Make yourself more efficient by outsourcing services that consume your valuable time. Also, determine your priorities. Where should you be spending your time? What can you do to make your health club bigger, better and stronger? Leave the worrying to your competitors and instead seek out opportunities with your health club and stay positive. When you put the right energy and focus into your health club — despite the economy — the results can be extraordinary.
This is a time in the economy when fortunes can be made. While some gym owners are giving up and closing their doors, their competitors are seizing opportunities in the market place. Here are some thoughts on how to thrive in the gym business during tough times:
1. Keep marketing your gym…and keep marketing.
Even though your first instinct may be to cut back on marketing, promotion and advertising, this is the worst time to cut back. Gyms that continue marketing through a slow economy are the ones that come out ahead when everything begins to turn. Make sure you have a marketing plan of action in pace and stick to it. If your current marketing and promotional efforts aren’t producing results, try new strategies until it does. When done correctly, marketing is an expense that should pay for itself. Find proven strategies and then keep doing them.
2. Don’t be afraid to discount membership fees
The harsh reality is that your members and guests are holding on to their money more tightly. The key to unlock their wallets is in discounts. Reevaluate your membership pricing strategy and offer membership discounts off your most popular memberships and gym services. This may also be a good time to lower your memberships across the board and then advertise your new lower prices.
3. Leverage the Internet for marketing and exposure
Are you selling memberships, supplements, gift certificates and other gym services from your website? Can you expand your sales channels by selling on other sites? Are you reaching your members and club guests with e-mail marketing? Is your website optimized for the search engines? Have you tried Google Ad Words? It doesn’t have to cost a fortune to implement an online marketing and sales strategy for your gym. Even if you simply add gift certificate purchases to your website, you could uncover a whole new revenue stream. Seek out an online marketing expert and evaluate the opportunities.
4. Form a gym group for some possibility thinking
Get together with your key gym staff or assemble a small group of people who understand your business and brainstorm some potential opportunities. When several people get together with a blank slate and some good energy, good things can often happen. Ask for ideas — you might be surprised by the results.
5. Tap into a new niche for your club
Is there a niche in your gym that you have been meaning to focus on? Can you uncover a new market that makes sense for your gym? Pick a new market and then develop a plan of attack.
6. Reach out to your member base
One of the most overlooked gym opportunities comes from your existing and past gym members. The fact that they have already done business with you makes it far more likely that they will do business with you in the future. Make sure you are marketing to them, reaching out and reminding them that you are there. Ask them for referrals and offer a powerful incentive such as a cash reward or gift card for referrals when they refer guests or new members.
7. Make improvements in your gym operation
This is an ideal time to evaluate all of your gym policies and procedures. Do they make sense in this economy? Is your customer service team delivering up to your standards? Could your membership sales team benefit from some additional training? How can you help your gym perform even better? What are steps you can take to improve member loyalty? Look at your gym through a magnifying class and seize the opportunity to improve it across the board.
8. Survey your members
A lot can be uncovered by reaching out to your members and asking them for feedback. Develop a short list of questions that include ratings on your gym, services and staff. Ask specific questions such as, “How can we improve your experience with us?” Once you receive the survey results, evaluate them and take action to make improvements. Let your members know that you heard them and share what improvements you are making in your gym as a result of their survey responses.
9. Keep an eye on capital
What goes down must come up and the economy will rebound, though it may be awhile. If sales are slower than usual, formulate a plan for getting through this period. You might need to open a line of credit, visit your bank and apply for a loan, seek private funding or even bring in a partner. Running out of capital can quickly kill a gym. Make sure you assess how much you may need before you need it and have a plan for forging ahead. Investigate bartering.
10. Get some help and keep your eye on the ultimate goal
Now is a great time to sharpen your own skills. Take some classes, read some books and network with others in the gym industry so you can learn from them. Get involved with IHRSA and other groups and make sure you are on top of your game. Look for joint venture opportunities. Make yourself more efficient by outsourcing services that consume your valuable time. Also, determine your priorities. Where should you be spending your time? What can you do to make your health club bigger, better and stronger? Leave the worrying to your competitors and instead seek out opportunities with your health club and stay positive. When you put the right energy and focus into your health club — despite the economy — the results can be extraordinary.
Now, let’s go build a thriving gym
An Outsourced 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..
