If you’ve ever seen a wildflower growing in the cracks of a sidewalk and wondered how and why it got started there, it’s a pretty simple answer: there wasn’t another option.
It made do with what minimal resources were available. It’s a great lesson for studios as well. Yes, times are tough, but there are resources that can help you prepare for the better times ahead or even grow now.
The following are four keys to consider now and get ready for growth.
1 – Is your monthly draft back and trending in a positive direction?
This is the big one. Obviously, if your draft isn’t going up, growth and expansion are non-starters. You need to put in more effort to understand why and validate your business model. Check your reports and account for any seasonality. Do you know enough to spot seasonal and annual trends? What events could have impacted your draft?
2 – Are in-studio and virtual classes filling up?
One thing the pandemic has done is open up many schedules. That means primetime could be anytime for many members, and it could enable you to better utilize your space and time engaging with members. Maximize what you have before taking that next step for a couple of key reasons. If you’re not using the space you have, adding more overhead and cost isn’t the path to success right now. Secondly, even in a smaller reconfigured capacity, full classes have a positive great energy that keeps members coming back. Use member engagement tools and referral programs to build up all of your classes. A free virtual trial could be a great offer, but make sure you double-down on the personalize follow-up to make sure they feel included and welcome.
3 – Do you have a tight grip on your business model and processes, so much so that they can be replicated?
In other words, do you have a unique business model or are you and your current super-star staff just killing it on a personal level? It’s a personal business, but being able to communicate and recreate an experience from one studio to the next is the key to successful expansion. From recruitment to scheduling to check-in and retention do you have proven processes that can be replicated anywhere? This becomes even more critical if your vision is to scale past a handful of studios. Remember, your time doesn’t scale beyond 24 hours a day. You’ll need processes and technology designed to fill in those gaps.
4 – Are you positive this model is at break-even and trending toward profitability?
Heavily influenced by your draft, this is another critical point. Helping more people reach their fitness goals is great. Doing that while keeping a roof over your own head is even better. Getting accurate reports and information is of the utmost importance to make this determination and can be one of the most challenging aspects for studio owners and managers. Any number of things can siphon off revenue and prevent an otherwise successful operation from becoming profitable. Make sure that you have accurate records and look closely at the details to understand your actual costs, revenue, and profit potential.
If all four are the case, then it might be time to think about expansion. We've created a product suite we call the ClubReady CORE that is designed specifically to enable a great member experience at the studio or virtually. If that is your situation, or you want a second opinion on your situation, get a personal consultation with a ClubReady Expert.
Building New Growth
The pandemic has changed a lot of things. But as the saying goes, when one door closes, another opens. See how some fitness studios are running against the trends, with data you can use to help build fitness business strength. Get the ebook now.