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Essential advice for entrepreneurs in fitness
Below is a collection of essential advice for entrepreneurs in fitness. Alex Hormozi has turned business development into an art form, and he's sharing his insights with us through the Escape Your Limits podcast.
With tips time-served by a client base of over 2000 thriving businesses, this strategy session can bring some impressive results. As CEO of GymLaunch, Alex is making gym owners evolve their business to be better for their bottom line and members.
What's the problem in fitness?
Fundamentally, I think most gyms struggle from once they don't know how to acquire customers profitably; two, if they finally do end up filling their gym, the gym isn't profitable, so the model is broken. And the three, if they do have a customer that finally does come, they don't have to keep them.
Those are the three big problems that most fitness facilities, especially independent operators, struggle from. And so it's kind of solving each of those three pieces. And once you do, then you have a way to acquire customers profitably, to put them in a model that is profitable, and then a way to extend the lifetime value with multiple services and revenue streams and whatnot, so that overall, the facility can continue to grow.
How can fitness operators get better?
Find experts. Ask them what they're doing; ask their opinions on how things should work and then you ask those experts for five people that they think are smart, and talk to those five people.
Over time, you end up getting basically the same people. And once you have that you kind of have the the mind map of all the information that exists from the people who have already sifted through the vast majority of it. So they're giving you kind of the top 1% of the information. From there, we would categorise the information into buckets, and then basically consolidate what we think the crystallized actions or strategy should be.
What makes a good gym owner?
Good interpersonal understanding and good emotional intelligence. Being able to stay organized, and run a team of a lot of people. A lot of business owners have massive emotional issues. A lot of them are not organised at all, a lot of them don't even hold weekly meetings; they don't hold one on ones with their team. They don't give them improvement plans, they have no goals set week to week; the employees have no transparency in how the business is doing.
They don't even know what key metrics they're looking for. They're really just operating blind. And so a good operator should know what the key metrics of the business are – what are the things that they're gonna drive? What are each of the roles doing on a regular basis what the utilisation levels of employees are? If they have all those things, then they can have a really good grasp on the cost of the business and a handful of key drivers for growth. But most operators don't do any of that.
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