Running a gym is hard work, and it’s easy to get caught up in daily dramas, conflicting interests, and simple missteps that you can forget to focus on how to make a gym profitable.
Think back: Why did you get into the fitness business?
Maybe you love helping people live better lives. Maybe you have a passion for fitness and hope to spread positive energy. Or perhaps you thrive on being in a gym environment and want to set your own course in life.
Those are all great reasons.
But what about, you know – making money? Running a gym is a money-making effort, a business, and you need to keep that as your baseline.
The two viewpoints are not incompatible. Helping others is important, for instance. But you don’t have to sacrifice any other motivations, not even one little bit, to focus on how to make a gym profitable.
In fact, just the opposite is true. If you don’t concentrate on how to make a gym profitable, then you won’t be able to stay in business to keep helping others, spreading positive energy, and all the rest.
So, here are five key categories to consider. These are helpful whether you’re a seasoned businessman or a trainer who’s trying to dip your toes in the business-owner pond.
1.
Master the Art of Client Retention
Notice we put this one first, ahead of even “Attract the Right New Clients.” It’s that important.
Remember this: Getting a new client is so much more expensive, in time and in money, than keeping one. Yet, too many gym owners are crazy about chasing new leads and closing sales – and then ignore those leads once they become paying customers.
How many send newsletters to prospects but not to clients?
How many pour on the charm during the sales process but forget newcomers’ names and look right through them on the floor?
If this is you, then stop everything right now and pay attention: You must treat your clients like gold – because they are. This is a key component of how to make a gym profitable.
· Know their names. Use those names. Make sure your staff welcomes everyone by name every time. “Hey” is not good enough.
· Communicate. Send them emails. Call or text when you don’t see them for a while (this means tracking attendance). Know their fitness goals and potential barriers to reaching them.
· Ask for feedback when you’re considering changes to the class schedule or bringing in new equipment.
· Promote their achievements in your gym, social media, and newsletters. Celebrate personal milestones like birthdays. Notice and “shout out” small things systematically.
· Put them on automatic renewals. But don’t take them for granted. Earn their trust and reward loyalty.
Remember that current, happy clients become invaluable brand ambassadors in your community. And former, unhappy clients? Yep – same thing in reverse.
2.
Attract the Right New Clients
Who are you trying to serve?
Who’s your ideal customer? And your second-favorite ideal customer?
If you want to know how to make a gym profitable, then you must first identify the people you want, and then build your business and marketing to attract them.
This will inform everything about how to make a gym profitable:
· Programming, equipment and services
· Hours, pricing
· Advertising and marketing
· Hires
· The look, feel and sound of your gym
If you’re not sure, or you think you want to serve “everybody,” then consider this:
Once you know who you want, then create the user experience they want – equipment, design, music, etc. Market your gym to them WHERE THEY ARE. If they’re on TikTok, be there. If they’re at the golf course, go there. Don’t expect them to magically know you’re in business and want to help them.
· Share testimonials. Make success stories easy to share.
· Develop about three main marketing messages. Choose about three main channels of delivering them (say, Facebook, email newsletters, and radio ads), be consistent, and focus on the client.
· They want to know one thing first: How you can help them. Everything else follows that, including your pricing and credentials, when planning how to make a gym profitable.
· Use lead magnets – free items of value you give in exchange for email addresses. Regularly send engaging, non-salesy emails as part of your conversion process.
· Create an irresistible free or “low barrier” offer to get folks into your orbit – like three complementary visits.
· Develop a sales process that serves them more than it sells to them. Learn their pain points. Anticipate their needs. Ask why … and really listen. An authentic connection is more effective than slick sales moves in how to make a gym profitable.
· Be sincerely you at all times. Train employees to authentically represent your business in the same way. This will attract the “right people” with clear, steady messaging and relatability.
· Participate “in real life” in your community. Sponsor fun-run teams. Show up at neighborhood festivals. Attend luncheons at the chamber of commerce, etc.
- Use targeted marketing to highlight your unique selling points, such as specialized equipment or niche classes.
3.
Hire the Right People
Beginner entrepreneurs often fall victim to the common desire to do everything themselves. Part of it is ego: They were good trainers or had some other success, so they know what they’re doing about everything.
Or they fall victim to the “scarcity mindset” that says they can’t afford to hire help – even as they’re trying to convince prospects to pay for their own expertise.
The result: They learn, sometimes slowly, that no one can do it all.
So, be sure to set up your business from the start so that it can grow beyond just you. What positions are essential when you think about how to make a gym profitable… which can wait until later… which tasks require occasional, specific help?
If you want to know how to make a gym profitable, then learn the importance of hiring the right staff. Understand how your business works, and how all the tasks come together to serve that ideal client.
· Trainers. You can’t be on the floor 24/7. Choose talented people, show them how you want them to train, and set parameters about expectations, including compensation. Then, let them do their job.
· Front desk employees. Don’t undervalue this role. This person makes first and last contact with members every time they visit. Educate them about the job’s value and encourage them to participate in the business.
· Administrative assistant. Bring someone on part-time and assign specific tasks, then add or subtract. Not many gym owners can handle billing, ordering, payroll, and scheduling, and that’s OK! Start by doing what you’re truly good at, and hire out for the rest.
· Cleaning crews, marketing and communications help, lawyers and tax accountants. Don’t worry! You don’t need all these people as full-time employees. But you need them as team members in some form, depending on the details of your lease agreement and other needs.
Recruit qualified staff members who align with your gym’s values and mission. Ask people you know – members, employees, associates in the community – for referrals. Post openings on social media and on job boards.
Conduct interviews, check references, and assess candidates’ skills and experience to ensure they are the right fit.
Look closely at who a person is – values, personality traits, etc.
Once you have the right team in place, remember to train them in anything that’s a differentiator for you.
For instance, if your unique training protocol is a system you’ve developed, then make sure all your trainers know exactly what that is; don’t let them wing it.
Keep good employees by looking for growth opportunities and other rewards that are also investments in them and your business. Recognize contributions systematically, not on the fly.
Communicate with team members – not just once, but all the time. That includes listening. Remember, they’re often the ones encountering members and receiving feedback you need to hear about how to make a gym profitable.
4.
Manage Costs
So far, we’ve only discussed revenue, the money coming into your business. But learning how to make a gym profitable also means being responsible about costs like:
· Payroll
· Supplies
· Services (cleaning, equipment maintenance)
· Rent
Work with your accountant to dive deep into financial records and understand where your money’s going. Profit is what remains after expenses, so you need to know as much as possible – continually, not just once a year.
Seek ways to proactively prepare for “rainy days” or unexpected tax situations.
Consider where you might be spending too much – or not enough. Weigh the cost benefit of everything: How much am I spending? What am I getting out of it? Is there a better value?
Work with your landlord and be a good tenant. A good relationship works both ways, especially in difficult periods. When the pandemic hit, many gyms were able to negotiate better deals to help them through.
Bid or negotiate on equipment and services as much as possible. Compare prices and references. Buy in bulk.
Marketing means more than paid ads. You can get a lot from free or low-cost tactics on social media, in traditional media, and through in-person networking.
Let phrases like this become part of your mindset: “maximize operational efficiency.” Streamline workflows and processes to minimize waste and maximize productivity. Use efficient scheduling systems, make the most of your layout, and automate simple repetitive tasks.
5.
Build More Revenue Sources
There’s more to profitability than membership fees.
Today’s smart gym owners are branching out to offer services like:
· Private training
· Next-level membership (from two times a week to three, for instance)
· Nutritional coaching
· Prepared meals
· Smoothies and healthy snacks
· Supplements
· Branded T-shirts and gear
· Partnering with tenants like massage therapists and chiropractors
· Leasing out extra space for events
· Tracking results with AI or other tools at an upcharge
Offer package promotions and incentives to attract new members, reward current clients, and build community goodwill. Can you combine trial offers with other sources of income?
To wrap up about how to make a gym profitable, strategies like these can help gym owners by attracting new clients, retaining current members, hiring reliable staff, managing costs effectively, and diversifying revenue streams.
Prioritize customer satisfaction and operational excellence, and you’ll really know how to make a gym profitable – for short-term and long-term success alike.
The “Fitness Business Boost Bundle” has everything you need to build on these ideas. Get it here.