Managing a fitness center isn’t for the faint-hearted. Working long hours, dealing with maintenance, member retention and payment challenges, and managing employees on a daily basis creates a tough job for a gym owner. It’s easy to get sidetracked from your goals when these kinds of issues arise, so it is critical to stay focused on making your gym profitable. These issues can be alleviated if you have a profitable gym. More profits means more money to hire employees, purchase better equipment, gym software and payment processing services. Check out our 5 tips below to learn how to become a profitable gym.
- Track your finances
The best way to track your expenditures and revenue generated is to analyze financial reporting. Detailed financial reports such as daily billing statements, amount collected on a daily basis, an invoice detail report, and projected amounts due during a set date range all provide information that you need to keep track of your finances. These reports will help you make important spending decisions. If you see that you are not generating the income you expected, then that’s a sign you shouldn’t purchase that new piece of gym equipment just yet.
- Collect member dues on time
You cannot manage a profitable fitness center without collecting member payments on time. The easiest way to ensure this is to remind your members via automated emails, phone calls, text messages, custom alerts at check-in and recurring electronic billing options. All of these are great ways to communicate with your members, which is key to long-term member retention and satisfaction.
- Invest in payment processing services
As a gym owner, investing in a payment processing service will make managing a fitness center easier. This will allow you to automate members’ payments, saving you time to focus on member engagement. These services should also give your members access to an online portal to manage their account information, track payments, as well as purchase and schedule classes. The less time you have to spend focusing on member payments, the more time you have to focus on making your fitness center more profitable.
- Empower employees to sell
Create a plan and set attainable goals to encourage your employees to sell fitness memberships. Incentives like cash, paid time off, or free personal training sessions are great ways to encourage employees to sell more. Productive and happy employees make for a pleasurable fitness experience for members. It’s important to make sure your employees have the tools they need to be happy and successful at their job. Happy employees = happy members, and in turn make your gym more profitable.
- Expand what works, scale down what doesn’t
Managing a fitness center requires making compromises to ensure profitability. Analyzing and planning are part of that process. Analyze reports to know what’s going on in your gym. If only 2-3 people are showing up for a group fitness class then you may need to cut that class out, as you’re losing money by paying an instructor. On the other hand, you could also look at this as an opportunity for growth. Begin a promotion to grow that group fitness class by offering a free smoothie or t-shirt to a member who participates in that group class for a certain length of time. Incentives like this can increase your group fitness class size. Focusing on financial reporting will give you the information you need to create and manage a profitable fitness center.
Are you ready to create a strategy to make your gym profitable? Download our free eBook to learn how to increase your member retention rates.