1. EachPod

124: How We Made The Decision To Change The Model - With Zach Columbia

Author
Tim Lyons and Randy Angsten
Published
Tue 02 Jun 2020
Episode Link
https://built-to-grow.simplecast.com/episodes/124-how-we-made-the-decision-to-change-the-model-with-zach-columbia-zitaa8Ph

We recently made some big changes to our business model. We made the decision to slowly phase out team training and move to semi-private training. We talk about these changes and how gym owners who want to transition in their business model can go about it. We go through how we analyzed our business model and all the data we used to make the decision that led to the changes.

For gym owners, your model should be helping you provide maximum value to your clients while increasing your net profit. It’s not about high gross revenues which helps your ego but about the net profit. It’s all about looking at where your income is coming from and where the expenses are. 

For gyms owners that are still closed, it’s a good opportunity to dive deep into the numbers. Where does your revenue come from? What’s the attendance per class? What’s the revenue per client? These are some of the numbers you should be looking at during this time to help you make changes. Your clients are expecting changes once they come back. Now is the time to implement those changes you’ve always wanted.

Key Takeaways

  • Changing our business model from team training to semi-private training (02:05)
  • The data that we looked at before changing our model (03:11)
  • Providing better value to our clients and getting better results from our new model (05:27)
  • Why it is better to run leaner and increase net profits than have big gross revenue numbers and little profit (12:40)
  • Zack’s upcoming book about being a fitness director that gym owners will love (13:36)
  • For gym owners that haven’t reopened yet, this is the best time to make changes (21:41)
  • Getting somebody with a fresh perspective to help you crunch the numbers (32:01)

Additional Resources:

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If you are interested in a free audit for your gym, visit http://bit.ly/free_gym_audit

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You can find out more about Tim and the strategies covered in this episode by checking out our website.

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Would you rather watch the video version instead?

Head over to our YouTube channel to watch this episode by going here

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If you don’t already have my book, get your copy FREE here.

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Connect with Tim:

Connect with Randy:

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