Right now the fitness industry is experiencing extreme opportunities trying to overcome challenges operating in a pandemic crisis. Even though the fitness industry has taken a big hit and many gyms have closed down this year, we still have some positives we can take away from it. Let’s look at the Stockdale Paradox to really examine what is going on now with the fitness industry during the COVID crisis. We discussed the Stockdale Paradox in Podcast Episode 41, which describes how we can be optimistic about the future and find ways to overcome the challenges of today – even though we are going through a crisis in the fitness industry. Now is the time to examine the challenges as opportunities to build a better business. In the Alloy franchise business with corporate gyms, we have taken this opportunity to trim some fat in the business model and take a more in-depth look at the systems to run a more efficient business.
For example, in the Alloy franchise business we have taken this opportunity to introduce the new low cost single pod gym model, which will help fitness professionals and trainers own their own Alloy low cost fitness business. The smaller Alloy personal training model is more COVID proof than the larger models, less expensive to get into and still very profitable.
There are always two sides to the same coin in every situation. Even if things are tough for fitness businesses right now, we have an opportunity to come out of this with a better, more efficient business.
The estimation is that 30% of gyms will close by year’s end. When COVID first started there was some government support for businesses. Now it is Q3, reality is setting in for everyone now and a lot of gyms are now just starting to feel that crunch. Every size gym, whether you’re 50,000 feet or 1,500 feet, is struggling right now with their brand, business model, systems, and client acquisition. There has been a lot of jockeying around trying to get clients back into the gym for everyone. Some clients are slowly starting to inch their way back, but it’s painfully slow, and it’s just not keeping up with churn. Now the flip side to all these business challenges forces you to be better at your business.
“In the case of the Alloy business model, we have always had a really high revenue per square foot in our gym,” Rick stated. “For the last 10 years, I’ve spent 99% of my time consulting and training people how to do Personal Training Systems, and why coaching is the answer for all their clients and revenue goals. Now, I really wasn’t running as tight of a ship and watching the business every day as it was making decent money. Don’t mess with it if it isn’t broken! Now with COVID, overcoming the challenges is important for businesses with fitness and franchise sales all slowed down. Now I’ve got time and the gyms are a little off, so I started looking at our opportunities to overcome challenges in our gym and franchise model.”
Questions to Ask To Lean Your Fitness Business
- Where are we too fat?
- Where are we inefficient?
- Where could we improve our systems?
- Where can we improve marketing?
- What are we doing, right?
- Look at your cost structure and client rates
Tune in to this episode to hear Rick and Matt discuss some examples of how you can go about overcoming challenges to make a more successful fitness business. Make your fitness business better off coming out of COVID than you were going into the business.
- Applying the Stockdale Paradox to the current pandemic crisis situation (01:51)
- How to turn the current challenges into opportunities (02:44)
- How to use this opportunity to trim some fat in your business (06:00)
- Building a better business out of the current challenges (08:18)
- Introducing a smaller single pod fitness model (09:32)
- The upside of staff turnover in your gym (12:07)
- There’s always a positive side to every situation (18:06)
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