The summer months can be very slow for fitness business owners, and this summer is going to be presenting even more challenges due to our current circumstances. However, this is the perfect time to spend that extra time and energy you have and focus on what you love to do, which is work with your members and create amazing things for them!
Have you been brainstorming any ideas yet for this summer season? If you haven’t, I would love it if you would at least consider the options we have come up with to help you get those creative juices flowing.
One of the first things you should remember to do is keep communicating with your members! This has been true forever, and you should be doing this all the time, but it is extremely important during these summer months.
Do you remember when your clients were first becoming members? We suggested you had seven touches with them because that’s normally what it takes to convert a cold lead into a member. Some of those seven touches included sending those extra emails after class, sending text messages, saying thank you, and remembering their name when they walked in the doors.
The summer season is the perfect time to get back to those seven touches, so all your members come back to you. This is especially important this year, and you should be doing this right now, so when you have your reopen date, you already have people ready to commit once again.
Planning events this summer might be trickier than in years past, since everyone is in different re-opening scenarios where they live. However, you should be thinking of what types of events you can do now and throughout the summer. If you can’t do in-person events yet, you can plan online events that will still foster that sense of community.
This is the perfect time to encourage people to get outside where they can and get a workout in. That workout can be included in the event you are having at the time, whether it is a mile run, 5K, or a series of workouts that should be completed over a course of a few days.
People are looking to get outside during the summer months, and you may want to take advantage of that as much as you can with partnerships. Since many people are planning on camping and visiting parks, you can see if you can partner with those destinations. You can offer a yoga class or another type of class to those that are there. This is the perfect time and place to share your busines, who you are, and what you do.
It is best to focus on the parks that are close to where your business is located, because no one is going to want to travel too far for your services. You can even be creative if you have a state park nearby and invite your members to take a class with you there.
For years, we have been telling our clients that having an online presence is a really good idea. Well, this is the perfect time to increase that online presence with online classes and trainings. While this can be an additional revenue source right now, it will also be helpful in the future for those members who have moved away and still want to take your classes or those who don’t want to lose their motivation when they are on vacation. They can simply log on and take the class from wherever they are.
This is the time to really start to learn what it takes to be a good online trainer and promote that. Since we are unsure if we are going to be facing additional restrictions in the future, having this online presence in place can be helpful no matter what happens long after the summer ends.
You will want to promote this online presence to everyone in your community too, because there are always going to be people who can’t go to you. You may be surprised at how many new members you gain just from these online classes and trainings!
I hope this has been helpful and it has generated some ideas for you. I would love to know what you’ve tried already this summer and which one of these ideas you are excited to try! Do you have any other ideas that you would love to try and share? I can’t wait to hear about everything you are doing for your business this summer!
What are your company's sales goals?
You have one, right? Ok, I am going to go out on a limb here and say you do have a sales goal for your business. If you don't, no problem. I am going to explain to you the best way to set it.
For those of you who do have a sales goal, how did you arrive at that number? Was it based on past or current performance? What you have seen others achieve? What you thought sounded good? Something else?
I'll be totally honest. When I set the revenue goals for our gym, it was driven by nothing more than ego. In fact, in the beginning, it wasn't a revenue goal at all, it was the total number of clients. I figured when I hit 100 clients I'd be golden, never even taking the time to think what that actually meant revenue wise for the business. Or even more importantly, for me. (Yeah, I like to eat too).
It wasn't until I actually got to the "cord-cutting" stage until I considered it. In other words, I had been working another job that I relied on to pay the bills. I knew my take home and what I was making from that job. But how does that translate to the business? After all, $10,000/mo in revenue didn't mean I was going to be shoving $10k into my pocket. But what did it mean?
And that's where Lifestyle Congruence comes in. Fancy term, simple concept.
All it means is "How much does the business need to be generating for me to take home what I need to?"
In reality it's probably the simplest of all the Fix This Next questions to figure out. But that doesn't mean it's going to be easy.
First you need to figure out the personal income you need to support your personal level of comfort. This is a need based number, not necessarily wants - not yet. For instance, when I calculated this number, I found I actually needed less than what the old job was paying me which meant my goal could be lower.
After you have calculated your personal income number, you need to know how much business sales income you need to be able to do that. Here's an example:
You find that your personal comfort number is $5,000/mo - a nice round number.
Then you calculate how much you are paying yourself as a percentage of your business sales income.
Let's say your current revenues are $10,000/mo and you are paying yourself $2,000/mo.
That means your Owner's Pay% is 20%. (($2,000 / $10000) x 100%)
So to pay yourself $5,000/mo at that percentage you would have to generate $25,000/mo in sales revenue ($5000/20%)
$25,000/mo = $300,000/yr. You now have a sales number that is congruent with what your personal lifestyle number is. It is a realistic calculation of what your sales goal needs to be. Not a guess, or a hope or a dream. Real Life.
And of course that number can be adjusted and modified. Think of what can happen if you run your business leaner, and now can pay yourself 25%, or 30% or more? That is where the magic happens.
But you gotta know your numbers first. We have the tools and coaching to help you make that happen. Let's talk about it.
How are you currently dealing with your small business finances? Do you simply let all of the paperwork pile up until you have no choice but to deal with it? Or are you the type of person who tackles bill paying each and every day before shoving the paperwork into a box until the end of the year?
Would you even believe me if I told you there was a better way to handle your small business finances?
I am a firm believer that taking the time now to organize your small business finances will save you tons of time later. Plus, once you have a system in place, it is easy to keep everything organized, so you never need to deal with massive piles ever again!
No Lost or Misplaced Paperwork
Have you ever spent hours trying to locate a bill, contract, or another piece of paper? This is not the best way to spend your time when running a business and that makes it one of the best reasons why you should start to organize all of your paperwork now. Once you have accomplished this, you can spend all of those hours you had used for frantic searches to create new programs and items for your small business.
No Overdue Bills
The fees that you pay on overdue bills can add up rather quickly. All of those fees can cut into your profits too, so you will receive a smaller bonus every quarter. If you never want to pay a late fee again, you should spend a little time creating a plan to pay your bills on time.
Always Know How Your Business is Doing Financially
I am always shocked when I talk to some business owners and they have no idea how much money they have in the bank or how much money their business makes each year. When you have your finances organized, you can easily find these numbers whenever you want to see them.
Be Prepared for Tax Season
Tax season comes more than once a year for small businesses, since you must pay quarterly taxes. If you don’t want to be the business owner that takes a huge file box into the accountant’s office every time you have a meeting, you must get organized. I guarantee that your tax meetings will go much more smoothly when you know where every piece of paper you need is located!
Ability to Create Better Financial Goals
Once your finances are organized, you will find it is much easier to create better financial goals for your business. There are many reasons for this, but the main one is that you will see where your money is going and can make changes so the money is being spent on things that matter the most.
Have you taken the time to organize your small business finances yet? If not, what’s stopping you?
I know it can be an overwhelming task in the beginning, but before you know it, those papers will be safely filed where you can find them. I would love to take a few minutes to chat and see how I can help you organize the finances for your small business.
At the foundational level of the Business Hierarchy of Needs (BHN) is the creation of cash, otherwise known as Sales.
Does that word bug you? If so, as a business owner, you have got to get over it. You can have the best product or service in the world, but until there is an exchange of value - your customers money for your products and/or services, you don't even have a business.
And there is a lot more to sales than just getting the credit card number. In fact I would consider that somewhere in the middle of the whole process, especially for a service based business. My observation and experience has shown me that most sales and marketing strategies focus on two primary things; attracting prospect and converting them to clients. Makes sense, I mean that is what sales and marketing does, right? Yes, but on the other side of that are two very important "commitments" that must be kept.
1) Your Commitment To Your Client
The Fix This Next assessment asks this critical question: Do you fully deliver on your commitments to your clients?
In other words, do you consistently deliver your brand promise, and is the client getting what they paid for? In a gym setting, your retention % and churn rate are good indicators on how you are doing.
2) Your Clients Commitment To You
Do your clients pay on time, every time? Do you have to chase people for money? Do you have systems in place for getting paid and follow up processes for overdue clients? This is all part of the sales process. A sale is not complete unless and until both parties "keep their end of the bargain".
Remember I said "the sale" is the middle of the process? The back end of the process is the two commitments, so now let's talk about the starting point of the sales process.
The very first question on the Sales level of the BHN is also the one I see answered "no" to most often. Here it is:
"Do you know what the company's sales performance must be to support your (the business owners) personal comfort?"
This is what Fix This Next calls "Lifestyle Congruence", and it's the number you want to know first.
I'm not pointing fingers here. If you had asked me that question when I started my business I would have had no idea, or how to figure it out.
But without that number, your sales goals (and mine) are arbitrary at best. Heck when I started my gym I thought if I could just get reach $10,000 in sales a month I would be living large, without even thinking about how much that put in my pocket. Reality caught up with me pretty fast. Bills are real.
So here's how the Fix This Next sales "funnel" flows...
Delivering on Commitments
Collecting on Commitments
Having these 5 core sales needs satisfied is absolutely necessary to create the cash flow every business needs to establish a solid foundation. In fact this blog post is part of that whole flow. We are looking to attract business owners who are ready to take the next step and looking for guidance to solve their biggest business challenge.
If that's you, and you aren't absolutely sure what your biggest challenge is, take the free Fix This Next evaluation here, and I'll follow up so we have an opportunity talk about how to solve it. Let's get fixing!