Karley Chynces wrote in a LinkedIn article on December 21st, 2021:
This morning I was at the gym at 5:45 AM. I counted maybe 10 cars in the parking lot of a gym that has THOUSANDS of members.
All those thousands of people who have a membership, maybe a couple hundred go on a regular basis. Of those couple hundred, only about ten go at 5 AM.
IT’S HARD and that’s why most people don’t do it. It’s so easy to say no to yourself. Buy why? YOU are a priority. Being tired, or not in the mood, or having other things to do are excuses that YOU convince yourself to be more important.
It’s called the 1% club for a reason. Who’s joining?
Who is joining and Why?
Health club business model: Sell memberships, sell membership, sell memberships.
Using Karley Chynces 1% model, what are the odds that the gym will be filled to capacity at any give time?
And, if a small group of people have to wait, and they get angry and leave the gym, what impact does that have on the income of the gym?
Minimal.
That’s why this model is so lucrative, and tis the season for them to rake in the big bucks with people making unrealistic New Year resolutions to go to the gym.
No guarantees
Just because you have a great business model doesn’t mean you will succeed. You still need to sell your product or service. You need to market why your product or service is unique. In our example above, what do you think the failure rate for gyms are?
Eric Haaranen wrote in the article for the website ABC Fitness Solutions,
In the ultra-competitive world of health and fitness, where less than 50% of new gyms and fitness centers are expected to survive beyond the first 5 years in business…
So great business model, but 50% fail. Why? Wrong location, bad management, poor marketing, poor sales staff, equipment not kept up (poor maintenance), bad financial advice and stewardship.
When starting any business, you should have a CFO on board to help you be, at least in this case the 50% who stay in business.
Why not schedule a call?
