#1 – No skills or experience
Please DO NOT buy a fitness business if you have no passion for fitness and no experience in the industry. The days of buying a fitness business, putting a low paid manager in it, and sitting back as an investor are long gone. Instead get your hands dirty, spend time in your business getting to know your members and invest time into creating rock-star staff. No business has great leverage from day 1. More PROFIT, more LEVERAGE and more FUN in the fitness industry is the reward for taking market share, setting up good systems and developing great people.
#2 – No business plan
Creating your gyms unique name, logo and business cards are NOT enough to run a successful fitness business. The Gym industry is more competitive and tougher than ever, so it’s crucial to have a well thought-out business plan that identifies your strengths, weaknesses, opportunities and threats. I recommend creating a killer 12-month marketing plan that differentiates you in the market place and brings you in a steady flow of qualified staff and new members.
#3 –Cash flow shortage
Cash flow is the life-blood of every business. If you open your gym without adequate cash flow to get an effective website, lots of exposure through marketing, staff uniforms, quality equipment or without enough money to employ staff for 3-6 months before you actually start making money, you are going to sink like a lead balloon.
#4 – Poor pre-sales
Creating a buzz in your community and selling hundreds of memberships before doors officially open, will go a long way to helping you be successful overall. Many gyms under estimate the importance of starting strong and paying bills. Be aggressive with sales and marketing before you open and throw everything you have at.
#5 – Too scared to ask for help
Spend money on a business mentor, a franchise, a marketing agency or anyone else who can save you time and heart ache behind the scenes in the first 12months, so you can find your feet and focus on service quality. Look for software and leverage off the many choices in great CRM’s (client relationship management) systems so you can be super organised tracking leads and nurturing relationships from day one.
#6 – No additional revenue streams
Membership sales alone are no longer enough to make good money as a Gym Owner because we now have 5 times the number of new gyms to compete against. The most profitable fitness entrepreneurs in 2016 are those who have adapted to market changes, finding as much as $100k extra profit each year by creating additional revenue streams. Consider ways you could create additional revenue for example by adding a premium product or service, offer a weekend health retreat, set up small group Personal training and sell supplement’s and clothing online.