Latest News

Back to Latest News back


Gym Hub’s Steve Grant shares six key reasons why fitness clubs fail

Gym Hub’s Steve Grant shares six key reasons why fitness clubs fail
February 2, 2017

Fitness business coach Steve Grant, the Director of Gym Hub, has explained the six key reasons about why fitness clubs fail.

In a Blog on the Gym Hub website, Grant shares his experience that 80% of Australian gyms will close in their first five years of business and, of those who survive a further 80% will, unfortunately, fail during the five years that follow.

Gym owners need to juggle a number of important factors to succeed in the early days, such as keeping expenses low while gaining maximum exposure to new members – just to ensure they can pay their bills. Then, later in the business lifecycle, gym owners look to leverage away from the 80-hour work weeks, using strong systems and staff development to ensure the momentum continues, and for survival in the long term.

1: No skills, experience or passion
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 one. Profit, leverage and satisfaction in the fitness industry are the rewards for taking market share, setting up good systems and developing great people.

2: No business plan
Creating a 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 three to six 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 12 months, so you can find your feet and focus on service quality. Look for software and leverage off the many choices in great CRMs (customer relationship management) systems so you can be super organised tracking leads and nurturing relationships from day one.

6: No additional revenue streams 
In the increasingly competitive fitness market, membership sales alone are no longer enough to make good money as a gym owner.

In 2017, the most profitable fitness entrepreneurs are those who have adapted to market changes, finding as much as significant 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.

Steve Grant, Director, Gym Hub

Steve Grant is a passionate entrepreneur with 18 years fitness industry experience including four years as a Health and Wellness Lecturer at the Australian College of Physical Education and eight years as the owner of one of Sydney’s most profitable Fitness studios.

Grant is an expert in building ‘High Performance Teams’ and creating ‘Winning Cultures’ with innovative techniques to increase revenue without adding members.

Grant’s systems and unique recruitment and staff development technique shows gym owners how to get their life back.

Click here to contact Steve Grant and Gym Hub via their entry in the Australasian Leisure Management Supplier Directory.



9th August 2010 - 2/3 OF FITNESS CLUBS RUN AT A LOSS


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.


supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all


Track. Engage. Retain GreeneDesk is a suite of cloud based software solutions helping health clubs, leisure centres and swim schools to effectively track progression, improve customer engagement and…

read more

Aquatics / Billing / Education / Fitness / Technology


HYPOXI Australia Pty Ltd

HYPOXI®  is one of Europe’s most successful health and weight loss studio concepts.  It’s the first weight loss technology to incorporate exercise with advanced vacuum and…

read more

Fitness / Technology / Wellness


The Jump Pad

The Jump Pad is a safe, flat inflatable made in a variety of sizes which can be used indoor or outdoor. From 3mx3m up to a whopping 9mx21m. Markets include Indoor and outdoor playgrounds, schools,…

read more

Attractions / Entertainment / Play



iEDM integrate Design, Engineering and Delivery Management services to convert existing spaces into exciting new entertainment venues. Our team consists of highly qualified professionals with diverse…

read more

Consultants / Design


Fun Wheels Pty Ltd

Fun Wheels Pty Ltd are the premium dealer in Australasia for the Dutch company BERG’s commercial and domestic products. Our flagship product is their revolutionary pedal go-kart – the…

read more

Attractions / Tourism / Venues



A leading designer and manufacturer of innovative waterslides and attractions, Australian Waterslides and Leisure (AWL) is also able to advise clients in the areas of concept and design, feasibility…

read more

Aquatics / Attractions / Play / Waterparks


HTS Group Ltd

HTS Group Ltd provides a complete design, system integration, installation and maintenance package to the transportation, traffic engineering, parking and sports timing industries in New Zealand,…

read more

Aquatics / Events / Sport / Technology


Worldwide Sports Management

Principal Consultant Simon Weatherill has spent the last 20 years developing the world renowned Melbourne Sports Hub, as former Chief Executive Officer of the State Sports Centres Trust…

read more

Aquatics / Consultants / Recreation / Sport / Venues


get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business