Are All your Eggs in One Basket?

I hate to admit it but, MOM WAS RIGHT. You can never keep all your eggs in 1 basket. Don’t do it on a personal or professional basis and certainly not as a gym owner. We should be able to derive revenue from different areas or baskets and lean more on one area or the other when needed.

The way I structured my club business baskets was based on  length of time it would take to see the money.  There are always exceptions to the rule but in general things tend to cycle within similar timeframes.Below are some examples of a basketful of activities or revenue

Immedite Activities and Gym Revenue Basket:

Activity-Be Back/Walk In shows up, an expiring member checks in,  fitness consultant hangs Marquis/Banner, Member wants spouse Add On, membership Upgrades, unexpected TI 

Immediate Gym Revenue Basket- Guest Fees, Enrollments, Collections recieved, PT Cash , retail sales, profit center sales.

Hopefully, you see the problem relying on things  just happening by chance as most of thisrevenue we luck into and can’t count on being nearly enough. Next, look at club managers and staff performing short term activities that drive expected club revenue we work towards.

Short term Activity Baskets- Monthly/Weekly Refferal Contest, Follow up on trial members and miised guests, Mailers, Outside Prospecting, One off advertising, calling renewals, Buisiness of the week, Boot Camps and seminars

Short term Gym revenue- Boot Camp/Seminar registration, Sub-lease tenant Payments(hopefully) Certifications Registrations, MonthlyMembership Draft,Monthly Training Draft, , Event space Rental, Future Down Payments

Obviously, there is potential for a lot of extra revenue in the short term say within 30-90 days but, again it doesn’t happen immediately unless it’s good ole draft day. So these are things we should activelybe working on daily while allowing time to develop the return the gym will see relatively soon.

Finally, Long term activities and Sustainable Gym Profits, this is a tough one even for seasoned owners,  gym management and gym marketing folks. We tend to focus on what’s about to hit us  in the face or cash we can grab.  It takes a special kind of health club operator to have the foresight to sow the seeds of long-term sustainable gym fruit. Ironically, some of these activities are easiest to do we just avoid the them or put it off till later.

So what are they?

 The long term basket are the simple things having consistant customer service approach, follow up with existing members, reward loyalty,establish a web presence and social media strategy, build an offline social community, add new equipment regularly, evolve programing, community outreach, corporate relations, if you’re not a national franchise build a local fitness brand.

Long term Club Revenue and Growth Basket= What if you knew you could count on  Regular renewals, stable future draft, expansion to other areas, franchise opportunities, Resell older equipment, Higher dollar sublease based on high profile location, More new members based on higher referrals. Your plans may not be so grandiose and that’s fine.Regardless of goals focusing on all your different eggs that are in clearly defined baskets is a good way to ensure you can make a ton of omelette’s.

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