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Revenue
[ June 10, 2020 by Fitness Revolution 0 Comments ]

How to Recover from Revenue Losses

If you’re like most independent gyms, you’ve seen your revenue decrease during the coronavirus crisis.

That’s why we devoted our webinar last week to the topic of recovering from revenue losses. You can find all our recent webinars among the free resources we’ve gathered for you. (There’s a ton of great information, so be sure to see take a look.)

Without minimizing what’s happened, we are here to tell you that there is hope – and we can help you get started on your process of recovery. Here is an outline of the plan.

First, you need to determine your cash runway. This is a crucial metric to understand your gym’s financial health, and it will inform your plan to recover revenue.

Follow these three steps.

  1. Gather Your Financial Information: gross revenue; fixed expenses; variable expenses; operating margin; cash on hand; capacity percentage.
  2. Project Your Runway. This means how many months a business can last before burning through all its cash on hand. With current, accurate numbers, this is the easiest formula to project your runway: Cash on Hand divided by Net Monthly Loss = Cash Runway in Months. Here’s an example. Say you have $20,000 on hand; gross revenue at 60 percent capacity of $36,000; fixed expenses of $40,000; variable expenses of $6,000; operating margin of negative $10,000… You have 2 months of runway.
  3. Build Your Plan. This will depend on how many months of cash runway you have. For example, if you have a month or less of cash runway, then – among various tactics – you can reactivate campaigns to win back prior contacts, former clients, previous prospects, etc. With up to 3 months of runway, you can focus on moving customers from lower-tier programs to higher-tier programs; upsell a secondary service or product; charge more for services and bundle them together; and more. Gyms with longer cash runways have different options, as well, like selling non-recurring products and services (courses, retail items and more).

There are many tactics and approaches, all depending on your situation. We go into them in greater detail in the webinar. And we are here to talk about it anytime. Let us help you figure out where you are right now and how we can get you started on recovering from those revenue losses. Schedule a time for a free consultation with one of our Success Coaches now.

MarketingRetentionSales
[ May 27, 2020 by Fitness Revolution 0 Comments ]

Marketing Virtual and In-Person Services: What to Tweak, What to Keep

If you started offering virtual training during the coronavirus quarantine, you might be among the many gyms planning to continue offering it even after the crisis is over.

So, you might find yourself operating two marketing tracks: one for virtual and another for in-person training.

It might seem like a lot to think about, but we’re here to walk you through it. This was the subject of a recent webinar, and you can watch the video here for a longer discussion. 

Download our free list of resources to protect your business during the COVID-19 crisis.

First: Let’s Review Some Basics

  1. Keep doing what has worked in the past. The best starting place is the marketing plan you had before COVID-19. You can make changes to it, but don’t throw it out and start over.
  2. Maintain realistic expectations, track your results, and (even now) balance short-term needs with long-term goals.
  3. Messaging must be clear, concise and conclude with a Call to Action – what do you want them to do now? Click for more information, download a resource, etc.
  4. Focus on them – your clients and prospects – rather than yourself. 
  5. Pick three things to do, and get good at doing them consistently. That’s one each for these three channels: internal, offline and online. Choose activities based on your strengths, resources and their ability to generate revenue.
  6. Track and measure your marketing efforts – leads, FEOs, sales opportunities, and execution of your marketing activities. Sound familiar? It should – because we’re talking about sticking to your plan for the most part. 

Marketing Your Virtual and In-Person Offers

Good marketing is based on foundational principles that should get you 90 percent of the way there. These principles apply virtually, in person, during COVID-19… All the time.

There’s a lot more “keeps” than “tweaks.” But let’s take a look at the 10 percent difference you can make with some minor adjustments.

Marketing Messaging

Tweaks: Speak to what makes your offer virtual and not just a product they can buy and use on their own. Highlight the new value, and leverage social proof for virtual offers. You want them to understand this is working and they can get good results with it.

Keeps: Stick to the basics of marketing message. (We go over the six key components in the recorded webinar.) Health and safety should always be a priority – and should be front-facing right now.

Marketing Activity

Tweaks: Shift a higher percentage of marketing to the online choice. Introduce virtual FEOs. Evaluate how much time and money you want to invest.

Keeps: Use all three channels (internal, offline, online). Create quarterly promotions and “insurance” marketing activities.

Tracking & Measuring Your Marketing

Tweaks: Adjust testing periods since you might not have the luxury to wait several months to see how something’s performing.

Keeps: Use of minimum metrics, designated testing periods.

 

Be sure to take advantage of the free COVID-19 resources we’ve gathered for you. And schedule a time for a free one-on-one consult with a Fitness Revolution coach. We can help you with virtual and in-person marketing, plus everything it takes to make your gym successful.

RetentionSales
[ May 20, 2020 by Fitness Revolution 0 Comments ]

Overcoming Obstacles and Seizing Opportunities

Some people see an obstacle and focus on how it’s blocking them.

But successful entrepreneurs see challenges as opportunities.

In these days of the pandemic, we all face plenty of these situations. Your success depends largely on overcoming obstacles and seizing opportunities inherent in today’s world.

Here’s a look at three common situations and how some of our top-performing gyms are spinning them to gold.

 

Download our free list of resources to protect your business during the COVID-19 crisis.

 

Topic No. 1: Safety. This is the primary concern for everyone – your employees, clients, prospects and community. You want to build trust by providing a clean and safe facility; present positive optics about what you’re doing; and protect the culture you’ve created.

What Top Performers Are Doing: They’re communicating with all their stakeholders so much they might feel like they’re over-communicating. (Impossible.) They’re looking ahead, regardless of whether they’re allowed to reopen yet, with contingency plans and ordering cleaning supplies in advance.

Topic No. 2: Losing Revenue. Most independent gyms have suffered some level of revenue drop. Most businesses of any kind probably have. It’s part of the current state of the world, but you can take steps to improve.

What Top Performers Are Doing: They’re expanding their short-term and long-term offerings to create new revenue streams with virtual training and nutrition coaching. They’re reducing costs wherever it makes sense. And they’re watching for opportunities to take clients to the next level of service – from, say, group training to individual training. 

Topic No. 3: Retaining Clients. Keep delivering your best service and experience. People want more community and engagement now. You can cultivate client connections and peer relationships to increase that sense of belonging that clients crave. And you can get to know them better, which will inform every aspect of your business.

What Top Performers Are Doing: They’re increasing their touchpoints with clients by making personal phone calls, sending texts, and even writing notes by hand. They’re providing opportunities for clients to interact, like virtual happy hours and game nights. And they’re asking clients about their needs to find new ways to meet them.

 

If much of this sounds familiar, that’s good! It means you are relying on the strong foundation you’ve developed – and you’re making adjustments as needed rather than ditching your whole business model and starting from scratch. Have confidence in what you’ve done, and show it by keeping a steady hand while remaining open to adjustments.

We’ve been updating the free resources to help you through the COVID-19 crisis. It’s such a fluid situation, and different from state to state, so stay aware of what’s happening in your area. And schedule a time for a free one-on-one consult with a Fitness Revolution coach. We can help you ensure you’re a top performer now and when all this is over.

RetentionSales
[ May 13, 2020 by Fitness Revolution 0 Comments ]

8 Tips to Maximize Revenue In Your Virtual Gym

Our weekly webinars have produced great conversations about how to solve problems for gym owners. One recently addressed how to maximize revenue in your business, including virtual training in the era of the coronavirus.

You and all business owners already know the importance of what we call The Big 3: marketing, sales, and retention. Keep up the focus on those three basics, always. 

But here, we want to share eight additional tactics that we shared during our webinar – action items you can put into effect right now to improve your revenue.

Download our free list of resources to protect your business during the COVID-19 crisis.

  1. Price Increases: Where should you raise rates, and for whom? Can you increase rates across the board, or just for new clients or programs? Yes, you might lose a few people who were looking for a reason to bail anyway. But you can minimize losses with proper communications.
  2. Up-Selling: After a customer buys your main offer, what service or product can you sell to increase the purchase amount? For semi-private training, for instance, sell them a MyZone belt or similar item. For virtual one-on-one clients, show them the value of buying resistance bands from you.
  3. Cross-Selling: You know how your TV, phone, and Internet services might be bundled together by one provider? You can do the same by offering similar packages to sell things like nutrition coaching and supplements.
  4. Ascension: Move clients up from your low-tier program to a higher level of service that costs more. Transition them from once-a-week virtual training to three-times-a-week personal training.
  5. Frequency: Increase the frequency of purchases, and reduce the time between purchases.
  6. Reactivation: Win back prior contacts, including: cancelled or frozen clients; prospects that never sold; people who took your FEOs (front-end offers) but didn’t convert to COs (core offers).
  7. Expansion: Introducing (and selling) new programs, like virtual nutrition coaching, stress management, or life coaching.
  8. One-Time Sales: These are products  and services that you might sell only once to each client, like meal-prep or cooking courses; yoga mats and water bottles; and video libraries.

Be sure to check out the free resources we’ve gathered to help you during this time, and schedule a time for a free one-on-one conversation with a Fitness Revolution coach. We’re here to shorten the learning curve and drive you to the next stage of your success journey.

COVID-19Reopening
[ May 6, 2020 by Fitness Revolution 0 Comments ]

Use This Time to Review and Adjust

This time of year brings annual rituals like spring cleaning, pruning limbs and pulling out weeds. They’re necessary chores to get ready for a new season of growth. And this year, we can apply the same idea to our gyms amid the coronavirus crisis.

So, take the time now to review your systems, procedures, programming and personnel. What can you do to make subtle improvements or to try freshening up here and there?

We’re not suggesting a deep overhaul of your business strategy. Stick with your core offering and pricing structure.

Download our free list of resources to protect your business during the COVID-19 crisis.

But, with your staff members’ help, you can probably find plenty of smaller but helpful improvements to make. Here are a few thoughts to get you going.

  • We know some gym owners who were able to renegotiate their leases – and even get some more space that they’re now turning into a useful addition.
  • Others are applying fresh paint, replacing worn-out carpets and banged-up lockers, and shining glass and fixtures. That all adds up to a spiffy-looking gym, which is important in looking clean and safe, as well.
  • Review your team. Who might be able to take on new responsibility? Is there someone you’ve been meaning to release? Now is a good opportunity to make these kinds of changes.
  • Class size and offerings: Do you want to focus on training in small groups only? You might not have a lot of choice, depending on reopening guidelines in each state. But coordinate with your online and hybrid offerings, and consider what will be easiest to manage should you have to temporarily close again due to COVID-19.
  • Can you find better deals on supplies or services? You might want to stay with your current providers but still be able to renegotiate better terms for yourself.
  • Review your programming and equipment. Will each component still be relevant after reopening? Sometimes a good idea from a few years ago no longer holds up, even without a global pandemic. 

Remember we’re talking about nuance here. No major overhauls. Remember why you made the smart decisions you did, and be sure any revisions are important. You have enough on your plate without creating unnecessary work.

Also, download our free resources to provide information and context, and let us know how we can help. We’re always happy to talk.

COVID-19EmployeesReopening
[ April 29, 2020 by Jay Croft 0 Comments ]

Talk About Reopening With This Group First

With states starting to loosen Covid-19 restrictions on businesses, how developed is your plan to reopen your gym?

A major component of that plan must be communications – and as you’re developing the rollout, remember who you need to speak with before going public:

Your team.

Download our free list of resources to protect your business during the COVID-19 crisis.

That’s right. Before you announce your plans to your members or community, you need to meet with your employees first. 

Don’t assume they’ll do what they’re told, or that they’re as thrilled as you might be to reopen. They might have fears or other issues you need to address before going public.

You should also talk to your business coach or mentor. If you don’t have one, click on our resources document here to talk with one of ours. A Fitness Revolution coach can help you prepare for these conversations – why they’re important, and how to keep them productive. 

Why You Need Their Input

Savvy business leaders already know to communicate clearly and regularly with their employees, pandemic or not. You see it from the well-managed Fortune 500 companies as well as the best-run small businesses. 

Your employees have valuable insights and thoughts to share. Granted, they might also have thoughts that aren’t so valuable or insightful – just like everyone else. And that’s OK.

  • You can’t manage a smooth reopening without their buy-in and support.
  • You’ll learn valuable insight about your staff, business and customers.
  • You’ll build rapport and respect by showing that you listen as well as dictate.
  • Your team will appear united with clients, prospects and the community, which will increase your success with clients and prospects.

Two Main Reasons They Might Balk

If some team members say have misgivings about coming back, ask them why and listen.

First, is it possible some of them just don’t want to work? Maybe they’re enjoying the “time off,” happily drawing unemployment, and don’t have their head in the business. You might have some individual personnel issues. And this is the best way to spot them, rather than having to react later.

Second, others truly might be uncomfortable about coming back, mingling with other people, touching items that others have touched, etc. Address their concerns if possible. It could make your gym a better environment for clients, as well. 

Tell your team what you’re doing to protect their health and safety. Develop consistent messaging and deliver it in all channels. Remember it’s on to communicate with each of them, and to be sure they understand what you’re doing and what steps you will take in the future.

You Might Have to Let Go of Some

If unemployment benefits are part of the conversation, remind everyone that you offer more than a paycheck, maybe even healthcare benefits at some gyms. 

You might have to make decisions about individuals. Can someone manage administrative work or virtual workouts from home? Can you divvy up in-house time so no one feels singled out?

You might need to let some people go. Again, better to know now so you can be proactive about it.

For those who have received PPP or have applied, remember that you need to maintain the number of your full-time equivalent positions – not the same people in them.

This is a difficult time for everyone. Ultimately, you’re the one to decide what’s right for your business. We’re here to help, with free resources to provide information and context – along with the invaluable relationships gym owners develop with our coaches. We’re always happy to talk.

ArticlesCOVID-19MarketingReopeningSelling
[ April 23, 2020 by Jay Croft 0 Comments ]

Your Guide to Reopening After COVID-19

Everyone’s wondering when they can reopen their gyms. While we can’t give a certain date, we can tell you that right now is the time to plan for it.

It’s a confusing period, and the situation will keep changing in the weeks and months ahead. Reopening gyms is in Phase 1 of the federal reopening guidelines announced recently by President Trump. It will be up to individual governors when to allow states to reopen. And it will be up to each business owner after that.

Check out our free guide to reopening your gym after COVID-19.

This post will help you create your own reopening plan, along with an ongoing operating plan, as we keep adjusting. It’s time to ask questions, do research, make best-guess decisions – and remember that not everything will go according to plan. That’s OK — you’re creating a guide, not a pillar.

Here are questions to consider:

  • What do I need to be thinking about right now? 
  • What do I need to be doing right now?
  • How will reopening affect my service delivery, revenue and expenses?
  • Will my pre-pandemic business model be sustainable in the new market?

We recommend following these planning steps:

  • Review your current business plan/strategy
  • Determine what adjustments you need to make to operate right now
  • Talk to your Fitness Revolution Success Coach™ (if you don’t have one, talk to one of our FR Success Coaches here)
  • Firm up your plan and act swiftly and decisively (while assessing and adjusting weekly)

Here are some topics to guide your thinking.

  • Services: What adjustments should you make? Consider class size, physical space, and social distancing. Will you continue online training? Do you have outdoor options?
  • Plans: Do you have them in case someone tests positive or you’re ordered to close again?
  • Money: What’s your plan for clients coming back from freezes? Will you need separate pricing and marketing for in-person vs. virtual training? Update your budget to account for additional cleaning. Create processes for tracking PPP or other government funds.
  • Communications: Include staff, clients, prospects, vendors, neighbors, etc. Use every channel. Repeat consistent messaging. Tell them about service changes, new rules, safety procedures, and anything they’ll need to feel confident about returning.
  • Safety: How do you keep your gym clean and everyone safe? Intensify your cleaning procedures to include door handles, light switches, water fountains, etc. Update supply lists. Consider outside help. Post signs so staff and members know what you’re doing.

By planning now and continually reviewing, you’ll serve your clients better today and on the other side of this. You’ll be better prepared to bring on new clients, as well, and to keep your staff united – and everyone safe.

Check out the free guide we’ve put together to prepare your business.

ArticlesCOVID-19MarketingSelling
[ April 15, 2020 by Kelly Berry 0 Comments ]

Make Sure You’re Giving the Best Zoom Experience You Can

When the coronavirus lockdowns hit a few weeks ago, many fitness pros quickly moved online. It was impressive to see gym owners, studio owners and trainers adapt to keep their clients engaged and exercising.

But, let’s face it. We were all hoping “this thing” would be over within a few weeks and we could return to normal life.

Now that we know otherwise, it’s time to take another look at your online experience. You might need to make some adjustments to improve what you’re doing and ensure your folks are having the best possible experience.

Download our free list of resources to protect your business during the COVID-19 crisis.

Like it or not, this is your reality now, at least for the time being. And it’s your responsibility to give the best online training experience you can. It will keep your clients coming back. It will encourage them to refer their friends to you. It will position you strongly for future growth when “this thing” really is finally over.

Here are a few tips to help you level-up your online game.

  1. We recommend Zoom. We’ve been using Zoom for years at Fitness Revolution and have found it to be simple and reliable. People can easily use it right off the bat. And it has a depth of features that make it appealing. It lets you see all your clients, and it lets them see you – and each other, providing that key social component they’re craving right now. Spend a little extra on the Pro account so you have more freedom.
  2. Test, test, test. By doing a few dry runs, you and your team will be able to iron out the kinks for the smoothest experience when you do go live. If you’re already up and running – keep looking for ways to improve the “little things” as well as the bigger ones.
  3. Play three roles. You and/or your team members need to play three roles during online workouts – demonstrating movements, acting as coach/cheerleader, and offering cues via the chat function. You don’t all have to be together, of course – and you can even perform all three roles by yourself, if necessary. 
  4. Open/Close. Prepare a PowerPoint slide to start and end each session. It should have tips and reminders about upcoming events.
  5. Share the workout in advance. It builds anticipation, and it also lets your people know how much space and what equipment they might need, if any.
  6. Make sure you’re visible. Stand at least 7 feet away from the camera, and make sure your head and feet can be seen.
  7. Schedule social time. Plan for a few minutes before and after the workout to let people socialize via Zoom. This is an opportunity for them, and also and a great way for you to continue the community you built up in your brick-and-mortar space.

By providing top-level customer service now, you’re going to retain clients and attract new business. And you might even be building a permanent service option that will endure even after “this thing” really is finally over.

Be sure to check out the free resources we’ve collected here to protect your business and keep you posted.