Ausfit began in 1992, providing software services to the health and fitness sector including ClubWise, a fully hosted web-based product which combines state of the art club management software,…read more
Gym Hub’s Steve Grant shares six key reasons why fitness clubs fail
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.
22nd November 2016 - TECHNOLOGY TO SHAPE THE FITNESS CLUB OF 2020
12th October 2014 - 24/7 FITNESS TREND SHOWS NO SIGN OF SLOWING
9th August 2010 - 2/3 OF FITNESS CLUBS RUN AT A LOSS
4th March 2010 - COWBOYS DON’T LAST IN THE MODERN FITNESS INDUSTRY
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 www.ausleisure.com.au 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.
The Complete Guide to Leisure Industry Products & Services.
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
Perfect Gym Solutions is a software as a service (SaaS) solution purpose-built to service the fitness industry, with over 1000 clients servicing over 2 million gym members across 40 countries making…read more
Supreme Heating is a proud Australian owned company specialising in the latest energy efficient heating solutions. Since 1990, Supreme Heating has designed and installed commercial pool heating…read more
Polin was founded in Istanbul in 1976, and has since grown into a leading company in the waterparks industry. Today Polin is one of the world leaders in the design, production, and installation of…read more
Lander & Rogers' Sports Business Group is the leading sports law practice in Australia, representing over 150 national and international sporting bodies. Our clients include international…read more
At EventPro Software, we are proudly different from our industry competitors. We have a development-driven culture and 20 years’ experience in event, venue, and catering management software,…read more
At easyemployer we've come up with a software solution that manages one of your most important, and often most costly, business resources - your staff. We are helping 100s of clients to…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!