How to Choose the Best Gym Business Model for You

One mistake many fitness professionals make when they are just starting is spreading themselves thin and trying to do a bit of everything in hopes of success and profits. They establish class schedules, membership fees, and other strategies to get their businesses up and running while overlooking the fact that without a solid business model, they're going to face an uphill battle in terms of member retention and longevity. Whether you are new to the industry or not, one of the first steps you'll need to take to choose the right business model is to develop a good understanding of what it is.

What Is a Business Model?

In layman's terms, a business model is the plan or blueprint you'll use to make your business viable and make a profit. Don't confuse it with a business plan, that's something entirely different. It should include a detailed breakdown of the methods you'll use to market and provide your products or services to customers and members.

The great thing about business models is you can use trial and error to tweak things as needed for improvement and scalability. The easiest way to establish a business model is to research the fitness industry to discover the products and services potential members are interested in and willing to pay for.

Some popular fitness industry business model types are:

• Membership

• Pay-as-you-go

• Virtual

• Tiered

• Hybrid

Keep in mind that as your business grows, you may feel the need to change or adapt a new business model or combine different ones to keep up with the competition and demands of your members.

Flexibility

A primary factor in business longevity and success is adaptability. A good business model is one that's not set in stone. In order to incorporate flexibility into your business model, you'll need to stay aware of member interests and the dynamic trends in the industry. You'll also need to be ready to leverage the information you glean quickly to keep the competition from getting and keeping the advantage.

Scalability

Nothing feels better than knowing your business is booming. After all, the right business model may make it seem as if there's nothing left for you to do except reap the rewards, but stagnation is an all too present and real danger for any professional, especially in the fitness industry. Ideally, a good business model enables you to meet the target audience's current fitness needs while having the flexibility and scalability to accommodate their expectations.

Failure to account for emerging trends and demands limits your gym's growth. The fitness industry is where competition reigns supreme, and your company needs to be able to evolve with the quickness to overcome plateaus and reach higher levels of success.

Competition

Now is the time to determine how you want your gym to stand out from all others. Don't fool yourself into thinking that you can get lazy on brand recognition or marketability. There's so much competition out there, that one of the biggest challenges fitness professionals face is making a name for themselves that sets them apart from all others. It's not enough to niche down in the fitness and gym industry, you'll need to put in some work to establish your venture and promote it in a manner that clearly gives it a competitive edge.

Goals

Think about what you hope to achieve in terms of success for the immediate and long term. Your blueprint should include a breakdown of each milestone and the measures used to meet them. They should also include a breakdown analysis of all KPIs and stats to help you determine what's effective and what's not. A few questions that can help get you on the right track include:

• What price points do you want to charge customers for using your gym's equipment and services?

• What are your financial expenditures?

• Do you plan to offer freebies or promotions to boost engagement and revenue?

• How effective are your current measures and is there room for tweaking and improvement?

• What products and services should you offer to turn a profit?

• What products, services, price points are most effective, and which ones aren't?

• How do you plan to maximize your gym's scalability and longevity?

• What are your competitors doing and how can your business capitalize from it?

Talk to members and customers to learn directly what they want. Do your products and services solve a problem for them or meet specific needs? Getting your members involved or their feedback is very beneficial because it helps to keep you in tune with them and the trends in your specific niche. You can incorporate their feedback into multiple aspects of your business model to improve your company's marketability, profitability, and adaptability for success.

Member Relationships

In addition to getting member feedback, you should focus on strengthening your relationship with members. You need them more than they need you and they know this. Make your customers feel welcome by creating the perfect space for them to achieve their fitness goals. Don't assume you know what it is they want or need and or wait for them to ask or inquire if possible.

Be present and pay attention to what they do when they're in your facility. Coach your staff to help them identify opportunities where consultative interactions are more suitable to determine areas for improvement. Identify potential issues or concerns that can tarnish their experience and take proactive measures against them.

NEXO Fit Can Help

NEXO Fit offers affordable and comprehensive insurance solutions for all types of fitness gyms and facilities. For more information on coverage options for your business, contact us at