Fitness Business Alignment System™: The Proof is in the Results (Part 2)
This is a four-part blog series showing you how our Success Coaches have implemented pieces of the Fitness Business Alignment System into the businesses of some members of our Coaching Programs.
We aren’t just talking the talk!
- Part 1: Assessing Your Starting Point: How to Create Alignment in Your Business
- Part 2: [You Are Here ]Tracking Your Metrics: Key Performance Indicators for Fitness Business Success
- Part 3: Simple Priorities: Understanding What to Focus on in Your Fitness Business
- Part 4: The Power of a Process: How to Increase Client Growth by 400%
Tracking Your Metrics
In our last article, we talked a bit about what it means to create alignment in your business and the two things you need to know to get started:
- Your starting point
- Your long-term vision
Once you have those dialed in, it’s time to get to work on making sure your actions are setting you up to reach your long-term vision. But (there’s always a “but,” right?) as a business owner, you’re faced with challenges every day that can throw you off track.
When the day-to-day responsibilities are piling up, how in the world do you stay focused?
That’s where consistent tracking of the right numbers (or metrics) comes into play. It’s your measuring stick for success, and it allows you to smoke out any problems that might be arising in your business.
Steve, another member of our coaching programs, faced the same challenges when he decided to leave the gym he was working at to start his own facility.
Downtown in a metropolitan area nonetheless!
Steve moved into a good location and, with the help of our Success Coaches and Leasing Experts, was able to secure a grace period before having to pay rent. That bought Steve and the Success Coaches time to get things in place to set him up for success.
After taking the Quarterly Business Analysis™ the key areas of need were obvious: Steve needed to be able to consistently measure business performance.
So the Success Coaches went right into action getting Steve familiar with the 4 Sales and Marketing Pillars™ and 4 Key Performance Indicators used in our Fitness Business Alignment System.
If you’re not familiar with those terms, let’s go over them…
4 Sales and Marketing Pillars
- Front End Offers (FEO)
- Core Offers (CO)
- Retention Percentage
4 Key Performance Indicators (KPI)
- Operating Margin
- Autopay: Expense Ratio
- Core Offer Conversion Rate
- Core Offer Growth Rate
Steve went right to work tracking his numbers and ensuring that he was able to get the right information to use in his weekly scorecard and KPI Dashboard.
That was a critical step that needs to be highlighted.
Steve didn’t just try to track the right numbers; rather, he ensured that he was getting accurate numbers. It’s a big mistake that many business owners make when starting to prepare a scorecard or tracking system.
Inaccurate numbers can be just as dangerous as not knowing any numbers!
The good news?
Once you’ve figured out how to accurately report and track your numbers, it’s easy to keep up with the system. Make sure you put in a little extra work to get it right from the start.
Don’t think you need to have your numbers perfect before starting though.
Our motto is “progress, not perfection” when getting these new tools in place.
Once you know what numbers to track, how to get them (often it’s as simple as asking a Success Coach to help you), and where to track them, you can easily start to analyze your business, see trends as they are happening, and make better decisions for your business.
How Did Having Metrics Help?
Well, here are the numbers:
- 56% increase in gross revenue
- 63% increase in recurring revenue
- 31% increase in core clients
Now Steve has enough cushion to continue operating at a profit even after his rent goes up and expenses increase.
All because he planned ahead and tracked his numbers. Are you tracking your numbers? Are they the right ones?
Let us know in the comments below.
Want to take your fitness business to the next level?
Our Accelerator Coaching Program provides the Fitness Business Alignment System, as well as your own Success Coach to help you implement it. Apply today for free to see if Accelerator is a good fit for you.