How to Choose Fitness Business Models

Share on Facebook
Tweet on Twitter
Play Video


Most fitness professionals get it wrong when they’re choosing the best business model. They run around trying “bits and pieces” of everything.

They try some group classes, a few semi-private, and a couple of private training clients … and even start thinking about launching an online training program–all with the hope that something will eventually ‘kick-in’ and will lead to more stability and success.

But it doesn’t work that way.

And whether you’re just starting out, or you’ve got dozens of locations… the more efficient your model is in terms of value creation and operations to run… the easier it will be to sustain (achieve consistent cash profitability) and grow (with a bigger team, more locations–company owned stores or franchises, etc.).

In this video, we’ll show you:

  • The 3 primary fitness business models you can choose from (and why NOT to choose any other)
  • How to choose the one that best serves your strengths and differentiates you from the competition
  • The keys for success with EVERY fitness business model (and the growth questions you need to answer)
  • And much, much more.  

Here’s what we cover:

  1. The 3 primary fitness business models (proven over decades of success in the market)
  2. Discover which business model best fits your strengths and allows you to differentiate from the competition
  3. Methods vs. revenue and cost structures that ensure sustainability (i.e., cash profitability month-over-month)
  4. Model #1: Group Training–Price Point, Pros and Cons
  5. Model #1: Calculating how many classes/clients you need for $10k/month
  6. Model #2: Semi-Private Training–Price Point, Pros and Cons
  7. Model #2: The ratio you need to be successful, depending on your experience and ability to manage client experiences at scale
  8. Model #3: Private Training–Price Point, Pros and Cons
  9. How to determine which model is the best starting point for you
  10. Four keys to success with every fitness business model


Resource mentioned in this video:

Share on Facebook
Tweet on Twitter

Sean Greeley
All right. Hey guys, Sean Greeley, here, I’m excited to get into this lesson with you on fitness business models, you know, over the last 13 plus years and working with 10s of thousands of businesses around the world, I can tell you that the number one root cause of the biggest problems in growing a fitness business and scaling a fitness business, and evolving in competitive markets, really gets down to this issue with lack of clarity of your business model, and lack of evolution of your fitness business model to adjust to new environments, competitive environments, you know, if the the market changes, the conditions in the market change with competitors, with resource availability and staff, we’ve had people and you know, that have new laws that have come out in the government with ways you can pay and have to compensate contractors versus employees, there’s lots of conditions that can force an evolution of your model. And really paying attention to that and refining it, continue to visit it and improve your model is so important for continued growth and success. You know, I like to say, the metaphor, if you’ve got four hours to chop down a tree, you spend the first three hours, sharpening the axe will really when it gets to success of your business, and IE success being cash profitability sustained over time model is first and foremost, the fundamental piece that the more efficient your model is, the more simpler it is, the easier everything’s going to be. A lot of people try to solve problems in lack of cash profitability, with sales and marketing. And if the model isn’t refined and efficient, then we just make the problem bigger, we make it more difficult, and we’re trying to you know, we’re trying to chop down a tree with a dull axe, right? If I can go outside and try to chop down a tree with a fork, I’m never going to get there and I’m going to be exhausted. versus if I have finally sharpened axe and I start whacking at that thing. It’s going to come down, no question, it’s going to come down fast, right. So spending the time revisiting your model, the things that make up your model, and ensure its continued success are critical. For continued growth, so exciting in this lesson and break it down with you. So we’re going to cover here are the three primary fitness business models, there’s really only three and a lot of people try to overcomplicate it. And even with the evolution of online training and delivery of services. Again, people try to really confuse get confused, make it over complicated, and it doesn’t need to be it’s really simple, we’ll talk about that, we’re going to talk about how to choose the model that best fits your strengths. And essentially allows you to further differentiate you from the competition, and it makes it easier for business to scale and grow. So depending on your goals of where you want to take your business from just yourself with a full time schedule to be on yourself and having a team or even into multi location or franchise, the simpler and easier it is to ensure success and success meaning cash profit, go to the model these years to grow, wherever it is your vision to scale your business. And lastly, what are some of the nuances, the benefits and functions of each, you know, there’s certain models that are better suited for certain modalities and for certain target markets, and others that are you know, better and in different areas. So we’re going to break that down. Obviously, if I’m in a very wealthy competitive environment, like Los Angeles, or Sydney or London, there’s demand for extreme high end premium priced services. versus if I’m in you know, a country town, there’s probably not going to be as much of a market for that. So we want to understand these nuances and really align the model to the market the market is is what drives all this you know, you can have what you would like to do, and what is best suited for you know, your desires. But I also other metaphor I like to use is kind of like surfing, you know, I can want to go surfing and I can want to ride my longboard and I can go down to the beach and hold my board and there’s no waves, well, you know, I can, regardless of what I want to do, the waves have to be, you know, crankin at the spot a mat for me to go surfing. And even if they are, I don’t just paddle out in the middle and just say okay, waves, I’m ready to come to me.

Now I have to look at where the waves are, I have to paddle over there, I have to catch the wave at the right spot and then I get the chance to ride the wave right. So business is the same we have to be able to read the market just like reading the ocean. We have to go where the waves are. And the more we do that and do that successfully then we get a chance to ride the wave which is really growing a business successfully and and expanding and scaling the business the extent we want to and there’s opportunity to do so so you’ve got understand the forces at play here, and take all these considerations into account to set your business up for success. And, you know, make it easy and make it more fun. So, let’s get into this. And where most people get it wrong, and I say most professionals, but most business owners get it wrong. And this is something that, you know, that happens at every level, I talked to businesses, startups that are just kind of just got certified and want to get started, and I talked to businesses, they’ve been around for decades, and have, you know, hundreds of locations. So this is an issue that has to be visited all the time. But most people try to do a little bit of everything. And so, you know, I hear things like, I’m going to do private training and semi private training, and I’m also doing this boot camp and classes, and I’m starting some nutrition coaching, and I want to launch an online program. And that’s what I hear from a lot of professionals, a lot of bigger businesses, you know, again, try to be the Home Depot of like, you know, stop in and get everything, or, you know, any major, they try to be like the Amazon of fitness and be the one stop shop. And and really that’s that’s hard and harder to do, especially where we’re at in this day and age in the market, there’s so many specialty solutions out there that you want to focus is going to be a whole lot easier to grow than trying to be a one stop shop. So trying to go through different models for different types of clients all at the same time, again, very challenging. There’s, you know, different solutions for different people at different price points in different areas. So we got to simplify to grow. And a lot of people fall in love what they think is cool, because they love studying a certain subject or a certain method of training. You know, that might be what you want to do. But it doesn’t mean the market has interest in that, you know, again, I can go down the beach and want to ride a short board. But if you know, the waves aren’t right, then I’m not going anywhere. So you got to really focus on the market, the market is the force that drives everything in business. It’s not about you, it’s about the market, and about aligning yourself to the market with your business and your business structure to be successful. So it really important point because people focus on their idea and their passion. And while that’s important, it’s it comes, you know, second, third, fourth, fifth down the list compared to what’s in front of you, and what is the what is the demand, what is the opportunity, so you’ve got to stay focused on that and setting up for success. A lot of people also think that, you know, their business is different. And regardless of the way you want to serve clients, if you’re doing yoga or peloton, or CrossFit, or functional fitness, or personal training, or Bootcamp, whatever it may be, the structure of the business still has to follow some basic rules and math to be successful, right, we have to have a cost structure for the business and a revenue streams that when you do the math of revenue minus expenses equals net profit, there has to be profit for a business to sustain itself over time. So you can’t ignore the laws of mathematics. And the laws of math don’t change for you, it’s like gravity, gravity doesn’t change for you, whether you’re a car or when you’re driving a car or flying a plane. So gravity force, you know, in the universe, and we’ve got to align to it, given the different machines we’re using to, you know, to move through time and space. So it also takes a lot of focus energy to get a business off the ground, and highly recommend that you choose one model, we’re gonna break down those miles in a second, but choose one, put all your energy behind it and get a client base built up. And I’ll say again, that

most people fail because they’re trying to do too many more than one thing. They’re trying to do three, four or five things and they’re doing them all halfway, and they’re unsuccessful, especially in the competitive markets we’re in, you know, businesses hard enough to get going in any environment, but especially in competitive environments, you know, the more you niche and specialized, specialize what you do and focus on one primary model revenue stream and get that cranking. You know, that’s that’s going to be a much better return on your investment of time, energy and resources. And then once you’ve got a good place, you can do more but or you can reevaluate if it makes sense, the more but you can’t do three, four things at once. It’s just very, I’ve never seen that work. And lastly, a lot of people think that because if they’re want to serve clients in a remote coaching environment, that everything changes, right. So I’m used to training clients face to face let’s say, and I understand people, you know, pay me and they come to a session and I do whatever we’re going to do in the session together. And I get how that works, but they think that Oh, if I’m working with someone virtually in a call or In a video conference, or whatever it may be the environment changes in which we work together, that, that changes all the rules and dynamics of your business model structure, and it doesn’t. So, you know, really, especially for fitness professionals, when you’re selling, let’s say, private training services, people don’t pay us for our time people pay us for the outcome we produce. And frankly, the less time they have to talk to you, or spend with you to get the outcome, you know, they’re going to be, in most cases, happier, right? No one wants to train, they want to get the outcome and the benefits of training, you know, and so the more you can deliver that outcome to them more efficiently, the happier they are, but the value of your time doesn’t change what um, you know, when you’ve got, let’s say, in a private training environment, you have maybe 30 hours a week of training it kind of max capacity, and then your most people are pretty, pretty toasted, giving more training hours beyond 30 hours actually working with clients, there might be other hours with administrative functions and that kind of stuff. But if you’re a full time coach training 30 hours a week, actually, in front of clients, that’s a pretty busy schedule. And so some kind of rules of math, we’d like to share this, we’d like to see, you know, generating as a solo practitioner 70 to $80 per hour, for your time, whether that be in in semi private, private work, or group, you know, you want your business generate about that. So about 30, you know, hours of time at 70 bucks, a session generally takes around, you know, 1512 to 18 clients chaining training two to three times a week in private training to get to about 10 k a month of revenue, which is kind of phase one we like to talk about, and whether that hours spent training client face to face, or training them working with them remotely on a call or video conference, whatever it may be, the value of your time, your time still has produced x per hour to achieve some decent goals. And again, the value of your time is related to the value of the outcome you’re producing. So don’t think that because you’re working with someone in a different environment, you need to charge less, you know, so just think about, if you’re charging, if you’re charging, I just had we had a call with someone today charging 85 a session, you know, then, you know, the major nuances, maybe you’re you’re meeting with them weekly for a call, as opposed to three times a week for a workout. But you still want to charge the same amount for your time. So very important to think about that. Just because you’re training people in different online environment doesn’t change the laws of what you generate in revenue for your time as a solo practitioner. And really to get the right buy in from your clients to be committed to the journey of what’s gonna take to be successful. We want people with skin in the game, want people committed. And those are my important recommendations where people get off track in this. So let’s first define some important terms, modality versus models. So modality, reverse the tools and methods used to get results with clients, right. So modality can be yoga, polities, CrossFit, Personal Training, nutrition, coaching, wellness or holistic coaching. So whatever is the method you use, you know, work with check practitioners, you name it, Whatever method

you use, that is the modality. The model is really the business revenue streams, and cost structure that ensures the business is sustainable, you make a profit in the business structure to be self sustaining over time. So very important terms, we’re going to further define here and need to understand the nuances of what they mean. So again, breaking this down some common modalities. We work with all of these personal training, functional fitness, slash CrossFit, polities yoga, martial arts, wellness, coaching, trician coaching are the major ones. Other ones would be, you know, athletic training, for use or for teams, again, different types of modalities. And really, whatever is your method of how you like to serve people to tools and methods to get the outcomes that you’re, they’re investing and work with you to achieve. It’s separate from the model, the model again, everything has to boil down to a model that again, answers the fundamental question how business structure to deliver value in the market in a sustainable way, which means you’re able to continue to earn a profit. So the model is is really critical, the more efficient your model, it’s like the sharper your axe, the easier it is to to ensure value creation and sustainability for the business. So there’s really just three primary models and there’s some nuances within this. That will break down but it boils down to group trends. one to many semi private training one to a few. And private training one to one. And whether that’s online or in person, these are the primary models. And I suggest, you know, you really focus on just grabbing a proven model, as opposed to try and reinvent the wheel, especially when you’re starting out. Or when you’re trying to scale you want to keep it simple innovation can happen a lot in the, in the, the methodology and the outcomes, the way we deliver the outcomes, but the model, you don’t need to reinvent the wheel. So these are the primary models. We’ll talk about how this aligns. So for group models, this is generally where we see functional fitness, CrossFit polities yoga, martial arts, regardless of how we’re working with people, they’re all kind of boiled down to a group model. Semi private is generally where we see Personal Training, and polities, some functional fitness in here as well, in semi private environment, and then private training, we generally see this in a personal training pelonis wellness coaching, nutrition coaching environment, modalities or environments is where typically the private model shows up again.

And this can be online or offline is where we see that the private work well and continue to be there’s more demand in the market for for that and private today, and we have a lot of people introducing remote coaching offerings in that private environment to serve people today. So let’s kind of break these down and talk a little about the nuances. So group training services have been around a long time, started with martial arts, you know, gymnastics, aerobics, really in the beginning of time with with fitness and the roots of fitness, move to outdoor boot camps become very popular in the last, you know, 20 years or so a lot of yoga, kettlebell classes, CrossFit, and many more generally, is a structure where clients are paying a monthly subscription fee to have access to classes, they can book in at different times to attend different classes. And there’s some freedom flexibility with that, given the way the pricing and packaging is structured. It’s generally a highly leverageable model, depending on the coach to client ratio, and the monthly price point, which can vary anywhere from, you know, eight to 15 to 2530 plus clients per instructor depending on where you’re serving people indoors or outdoors, your space capacity requirements, the way you’re structured in terms of the the coaching that you’re delivering, and what’s the right quote, coach to client ratio, this can vary. But generally they’re they’re most classes are always delivered in our block of time, it’s a pretty standard for for group training environments. The price point can be anywhere from 100 to 250 plus per month subscription fees, generally billed weekly, or fortnightly, if they’re not, which is a very common billing cycle overseas. Meaning in Australia or the UK or Europe, the US and Canada, it’s a lot of monthly billing, for subscriptions, this can vary 100 hundred is pretty low price. 200. Plus is it around 200 is is a good run rate we like to see for for a lot of groups. And we’ll go into more of this in our patching pricing lesson, which is another module coming up here shortly. But the in general, that’s the kind of range you’re going to see given the capacity requirements of the model and how you’re structuring delivery of service. The pros of group training is there’s great leverage with one to many delivery of services. Many of these models have very low startup costs, like yoga, what do you need? A floor, right? And a room outdoor boot camp? What do you need grass or the beach. So very low startup costs. There’s a great social component of community that supports client retention. Those are all great positives of the model. And the cons are because there’s low startup costs, there could be a lot of competition, right? We’ve seen a lot of growth in the fitness industry the last or the last several years around the group training market, because people can just kind of rock up and get started without spending a lot of money. And there’s because there’s such a low barrier. You get a lot of operators in here who don’t really understand what they’re doing don’t know how to structure the business for success. There’s been a lot of race to the bottom with discounting services and market saturation, which is really unsustainable. So, you know, we saw this a lot in the last several years and the growth of rapid growth of CrossFit to where, you know, CrossFit was new to them. There’s across from every corner. And it went from reasonably priced down to like, so low price that nobody can make a profit or sustain their business with the economics and unit economics of the model, and it’s why led to a lot of and continues to lead to a lot of those businesses going out of business because they’re just not structured to be sustainable. And a lot of people that don’t know what they’re doing, just think I’m gonna lower my costs. And that’s gonna be the way to, you know, I’m cheaper and the other guy. And, you know, in, in business,

you’re really, especially in fitness services, you read the best or the cheapest, and no one wants anything in between. and you definitely don’t want to play the game of being the cheapest because especially in the boutique studio space, and small to mid size studio space environments, you know, the bigger big box gyms can always they have more money to spend, and they can afford to, to undercut you significantly. So you’ve got to be structured properly to be competitive in the market, be sustainable with your business. So, again, more to cover, but those are some pieces need to understand the nuances of of group training model. Some examples in group training, and I’d say this is for like a 15 to one ratio, or even above this, this can scale to 2530 Plus, we’ve seen for, you know, outdoor boot camps, on the beach, or in a park, and even even bigger numbers. But essentially, in a typical rate of let’s say, 1314 $15 per class, if you were going to model out per class. This is typically used for CrossFit yoga, martial arts boot camps and youth team training is is a generally falls in line with this type of structure. You can see what this works out to be in the columns have the number of clients, you need, the number of sessions, those clients are coming in the clients per session capacity. So this is you can see this a 15 to one capacity, the hours of training required, the number of classes recommended, and then what would be the weekly gross and the monthly gross off of that for the business, and then what would be the weekly or monthly investment on the client side, right? So anywhere from, you know, if they’re just coming to two sessions a week, you know, hundred 29 a month to 30 a week up to, you know, 52 or 224. So you can see what that does when you start playing with the unit economics here. And I’m going to give you access to this business model tool in a second where you can play around with the rates and some of the equations and see how that affects the modeling. And this is kind of what we’re doing. We’re looking at your model we’re playing with the economics of if we tweak the rate, and if we tweak some other components here, what is what do we need, what a success look like to get to the revenue numbers we need to produce in the business and our goals, our revenue targets, and how many clients is going to take to get there, right. So in this example, you’re talking about 45 to 90 clients in, you know, essentially 12 hours of training time, you know, to to get there. So that’s how that one plays out. On the grip training eight to one side, this is typically for polities, where it’s a little more higher touch in polities, and there’s more equipment involved, we generally don’t have as much capacity, you can see how this looks in terms of

the client numbers, and and the rates because we’re able to charge a little bit more per session, if you will, it takes less clients to achieve similar revenue numbers for the business. And again, a little bit higher cost structure, you know, anywhere from 172 to $310 a month, or 40 to 72 Weekly, again, can play with a rates here, but those are the kind of ranges you’re talking about. With this type of model structure. And what it looks like for group training, then we get into semi private training. So semi private training is kind of a hybrid model of group training and private training been around for a while it’s I’d say one of the most efficient models there is in terms of how the the rates that you can charge, the capacity for the business and kind of the return on investment of time in versus revenue out for the business semi private is very efficient model. Generally clancer support on a three to four clients per instructor ratio. And that kind of areas in like a lot of people start with three and once the instructor gets very skilled, you’ve got very efficient up operations and you can manage great coaching then you can you can push the boundary on that to about four. But harder going higher than that you start to really limit in most cases, the ability to to really Focus on clients and serve them well. So in most cases in semi private training, clients all receive injury assessment, they all get program, individual program design, but they’re supporting the training through a small group format. So there might be, you know, again, three or four clients going through their workouts being coached simultaneously. So there’s a bit of a social stick component to the service delivery, but also great coaching to support their movement and their execution. While they’re getting that that, you know, the primary benefit being good assessment, good programs that are optimized for that individual’s needs. So session lengths can change can range anywhere from 3045 60 minutes, we’ve seen different formats work well here. This is a pretty general demographic, middle aged men and women can be used with athletes as well, in this model, and is is very sustainable. In most cases, the investment can range anywhere from 30, sorry, from 300 to 500 per month, and you can break that down in the appropriate weekly or fortnightly billing rates. The pros of this model, it’s a very highly profitable model when session times are maximized. So when you really maxing out sessions are packed three to four clients per session, it’s highly profitable. In generally, there’s good retention, because it’s a bit of a sweet spot from you’ve got the best of all worlds, so you got a mid price point, you have individualized prescription and great results in a social stick. So it kind of pulls the best value creation elements together from the different models. And is good the the cons are that the responsibility lies on the business owner or operator to maximize number of clients needs training time slot. So if you’ve got semi private rates, and your business model around three or four clients per session, and you only have one client in that session, the gentleman you’re giving a discounted private training session is someone as opposed to really getting the benefit. So you’ve got to kind of control that supply and demand capacity and sales and marketing you do to influence to be efficient. But in most cases, this comes after someone is got some experience in private training, and is good at delivering good outcomes for clients and really understands their people are paying for outcomes not time, then semi private can be kind of the next iteration. It’s kind of like version two, I see a lot of people start with private training, get good at delivering results to clients and refining the programming and delivering services and then kind of increase the ability to continue growing with semi private and a lot of cases so

but you’ve got to, you’ve got to make it work you got to make, you know, you got to fill up your slots in sales and marketing to get the best return on this. Without that you start to really reduce the leverage and the profitability for that block of time. So here’s how that looks in a three to one environment for semi private, you’ve got 30 clients, you know, twice a week 2015 to 20 clients three to four times a week, generally speaking, planetarium, returning three to four times a week. So this kind of middle rows here that you can see three clients per session. So for about 20 to 21 hours of training time, about $45 per session, you can produce around 11 to 12 k of revenue a month for the business and you can see the breakdown that weekly, that’s a pretty good clip of return on investment of your time. As a as a business operator, working with clients and the monthly investment for clients. You can see the ranges here weekly or monthly investment, it’s pretty reasonable, pretty sustainable. For for most markets.

This this price one works pretty well. So again, with semi private, this is where a lot of people begin serving clients, when they’re going in a semi private model, it’s a great place to begin, it’s more efficient and private, meaning you’re kind of less training time. You know, you might be training 30 hours a week to get this kind of output in revenue for the business where you’re training, you know, 20, so two thirds of the time, you’re getting the same output. But you’ve got to be confident in your ability to deliver great results and great experience in serving clients because you got to be on the game, you know, three four clients per session. You have less time to dilly dally and chitchat and get it wrong, you got to be you got to be honest, so very important. And again, most people start with 321 and then kind of progressed into 41. This is kind of the tuned up version, in most cases. So if you’ve got tight coaching, operations, and you’re able to manage that clients experience in a great way at scale, and that’s sort of the key is that people are paying for the outcome and the experience and if you can manage both of those well, which generally takes just a little bit more seasoned coaches and model to deliver If you can, when you can do that this is a very efficient ROI and time invested for the return in the business. So that’s semi private four to one. Private training, which is really the third primary model. It’s been around since the 80s, if you will, it’s grown tremendously. There’s hundreds of organizations that certify personal trainers to deliver private training services today, sessions are delivered on one to one basis can last anywhere from 30 to 60 minutes, or, in some cases even longer, depending on the goals of the clientele. And generally speaking, your protocol is you’re going to set goals, you’re going to assess a client, you’re going to run a program, you’re going to support them with executing the program, and coach them through good movement and motivation to get the most out of their training sessions. And then you’re reassessing client on regular basis and adjusting the programming as needed. So pretty simple model, the demographic, you can really serve any client base with this model, it’s the most kind of versatile model there is. From newbies to professional athletes, and experienced exercisers, anything in between, you know, private training, in most cases works for, for the broadest number of markets you want to serve, the price point can be anywhere from 350 to 1000 plus per month to the end user to the client. And the great pros is there’s really always a market for private training. And you can narrow your target market to work with a client base that you love most. So whatever types of problems you love working on whatever types of outcomes you liking clients, helping clients to achieve, there’s generally a small market niche market for that, that is awesome and fun for you. And you can share the protocols that you’re most passionate about. It can really focus on serving people with individualization of your programming, and help them maximize everything you do to deliver you know, tremendous results. The session like can be chosen to best serve the client, startup costs are minimal for this, again, you can train people in their home, you can train them in their garage, and you can train people in multiple environments, you can rent space in some areas, really, depending on the price point, it doesn’t take a high volume of clients to earn a professional come in a lot of cases 1015 plus clients, you’re at a professional income when you have people training, you know, two, three times a week. So the for that reason, this is a very sustainable, robust, time tested, proven model. And a great way to get started in the fitness industry is I believe, private training for all those reasons. However, the cons are is it is more labor and test tensive without a whole lot of leverage beyond raising price point, which at some point has a limit, depending on the graphic that you’re serving. So depending on your area, where you live and the demographic you want to serve, there’s going to be some this great elasticity and the price you can charge per session. So maybe you’re starting at 6070 a session and you’re scaling that to 100 per session, but there’s going to be a limit, right at some point, maybe it’s 150 202 5300, at some point, there’s going to be a limit on what you can charge per session and have people you know, that have the money to invest in training to three times a week, sustainably over time. So there is some limit, but you know, you’re being paid very well for your time. And you can get very good at your craft. And you can just focus on serving a small number of people very well, very successfully and earn a great professional income. Though the other consideration though, is there are as you have small fluctuations, somebody goes on vacation, somebody stops training, you know, if you have 10 clients and you and to finish up their program or get sick or whatever, that’s a 20% drop in your income in one month. So there can be some volatility in your income as well. If you’re not well organized, and you don’t have, you know, a waiting list of clients, you don’t have kind of marketing rolling on a regular basis. There can be some dips in consistency. But and that can be when people are on holiday and all kinds of stuff. But it’s a great way to get out of the gate to get experience and it doesn’t take a lot of people to be successful. So you can see how that works out in unit economics here. You need 12 to 18 clients painting, you know training two to three times a week equates to 36 hours in this case of training. At 70 bucks a session gets us to those income goals of over 10,000 a month. Now obviously if we start charging more if you raise your rate, you can manipulate the example of getting here in the in the Google Sheet you can upgrade the numbers you can see how that plays with the the rate changes. The amount of clients you need to achieve your income target. So this is a very simple, easy model to run, when just getting started, and again, it has great price elasticity. Again, depending on the market segment you want to serve, you can charge you know, a lot for your time. And in most cases, for all those reasons, have three different models that are proven, we recommend this as a great one to start with, for most people get experienced to earn a freshman Come quickly, to start putting in their hours getting good at delivering services and programming and getting results and build a portfolio. And then either you can continue to raise price, you can continue to scale with more people, and coaches working with you in private shooting, or you can evolve to be the semi private model. Or if you’re going in a different direction, you have a passion around a lot of group modalities, then you just start with a group to start, but most cases people start with either group or private.

But those are three models kind of pick one that works best for you, and dive into it. A lot of people ask questions about what about the other model. So there’s lots of other business models that you can run, but the majority of those work best after you’ve learned how to deliver a great client experience. And you’ve built a client base around one of the three primary models. So you know, people ask what about adding this and and you know, three different revenue streams and supplements and having a pro shop with equipment and apparel and, you know, gloves and T shirts and merchandise and all kinds of things that they want to add on into their business? And again, my answer is, that’s great. But build a primary business and client base around great client experiences and value creation, the market around one primary model. Once you get good at that you can do more. Again, this can include but not limited to workshops, camps, retreat certifications, fixed term challenges. So this can be like 12 week body transformation programs, or six week challenges or three week challenges, whatever it may be. Nutrition, supplements, information, you name it, there’s lots of different things you can do to serve people and create value in the market. But most cases do that after you build a primary business around one of the three proven models is going to be easiest to run with. So regardless of the bottle you choose, these are really the keys to success that you want to think about with every model. And everything starts with the market again, doesn’t matter what you’d like to do what you find cool. It’s what is the demand in the market? What are people struggling with for a problem? What do they have a desire to go? achieve or do? Again, market is like that force that is out there that we don’t we don’t control, we just have to read it and channel it. So it’s like going to the beach and want to go surfing, you have to look where the waves and are they How big are they and where’s the best spot to catch a wave. That is the market, you don’t control that you want to read that that is where everything begins and ends in terms of success. Once you understand the market and the opportunity in the market, you want to look at what is the right model. Think about the modalities that you like and you’re passionate serving. What modalities help people best achieve the solution of the problem or fulfillment desire that they want. And then how can you best choose one of three models and then price and package it for success. Given where you want to position in the market and set things up for success. Again, that kind of leads into a further conversation and packaging pricing, which will come later. But you can start with playing around with the model playing around with the pricing and determining how many people is going to take to reach an income goal for the business that is important to you to achieve. And then once we understand that, we got to look at differentiation, right? So I’m doing group training, I’m doing semi private training, I’m doing private training. I’m doing yoga plati sort of may be how do I differentiate my group training and my yoga parties or my personal training from other solutions in the market? Why should people choose me? What makes the way I can create value in the market, I can deliver a better experience I can deliver better results. I serve a segment differently than other businesses that are currently in the market. How do I differentiate? What’s the secret sauce? What’s the methodology to best deliver that value creation and making it a no brainer solution wherever in the market says yeah, that’s the one that’s where you go right. So you really we’ve got to differentiate models. For continued success evolution again, this is where a lot of people get stuck is they don’t differentiate enough or they they have differentiated then the market changes and they don’t evolve the model. They don’t differentiate the model. Now you’re just the same as everybody else. And so there’s no reason for anybody to come to you and you lose your positioning and you lose your your kind of lead in the market. So you got to stay very attuned to staying ahead of the forces. You know, we can be surfing in the morning, one break And the waves died down and we don’t move to a different break, well, we can hang there, but there’s no waves anymore. So there’s no surf to, to catch, right?

So you got to pay attention to the market attend to the changing conditions in the environment, and differentiate when appropriate. And lastly, we start to move in optimization. So how to create efficiencies in the way we serve the market and the daily operations to deliver that value creation, how to make it work better, faster, smoother, less friction, so that we can make the business as profitable and easy to run with all those other things in place. So, again, very important, you start on the left and work your way to the right, and you can use this framework to evaluate where do you Where does your business stand today? What market? Are you focused on serving? Is that clear? What’s your model? Is that very well defined? Sir, time to revisit that? And if that’s all good, are you differentiating enough? Is it clear to others looking in the market with potential solutions, why they should choose you? And how you’re different and better? And And lastly, how do we optimize the business to be as efficient as possible. So good sense check for those of you that have been around a while to go through this framework and look for opportunities to improve. And for those who are just starting out to understand where to begin, how to progress through this and thinking about the strategies to best achieve your goals and best, set up your business for success. Again, this is about sharpening the axe to make it easy to do the job of growing and serving the market delivering value in a sustainable way that achieves a cash profit every week, every month. And so the more we get to understand these frameworks and apply them, we get to set your business up for success. So some great growth questions for you to consider here is what problems do you most love solving. You know, if you really love working on fat loss, or strength and conditioning or pain management, whatever it may be? What is the problem you love working on? What types of clients do you most enjoy working with? Generally, it’s not going to be grandmas, bodybuilders, pro athletes, kids all at the same time, there’s gonna be a segment you really enjoy your passion about serving and hopefully, there’s a good opportunity to serve that segment in your area. then number three, what modalities and model are you most excited about and why so most people are more drawn to one model or another one modality, they’re they enjoy and, and what what strikes, you know, your passion to where you can really enjoy this and and make this your, you know, what you do day in day out, and you’re gonna, you’re gonna have fun with it. Everybody, it’s been around in the business for a little bit of time, where as you start to get some experience working even as a new fitness professional in the industry. I ask people, you know, think about clients you’ve loved working with, and if you just woke up every day, and all you had to do is work with those clients, this would be like a vacation, you can’t believe you get paid to do this job. And it’s awesome. And you just want to do more of it. Can you think of somebody like that? Most people say, yes, they’ve had that experience. And then I ask people, you know, think about clients who if you have to spend one more minute of your life working with this type of client, you would just, you know, go do something else, right and, and go work at McDonald’s and leave the fitness industry. And everybody can, you know, generally laughs But they can relate because they’ve all had a negative experience and work with a client. And so this is a great place to examine or re examine if it’s time to revisit this for you. further refinement of that and kind of make this as efficient and simple as possible and clarity for your business, target market. Oh, duality, model, pricing, structure, differentiation, and more. So again, great growth questions for you. And then I’d like to encourage you to do a research spike again, too many startups try to reinvent the wheel. In the beginning. You know, people get really passionate about starting a business and they have all these ideas. And they think they’ve got to reinvent, like literally the wheel or fire and you don’t and people end up wasting a lot of time and energy and often don’t get off the ground. I see this happen most often with people that want to do like some type of online training or online remote program, programming or services. And they think that all the rules change and they got to re engineer the thing and make it something that’s never existed. And that’s not the case. You want to keep it simple and you want to follow a proven model. So encourage you to look around look around the market you want to serve look around the the outcomes that you want to help people achieve the methodology you want to use. And what other businesses do you see out there? What models are they running? What do you see working well to serve the customer base you want to serve? What segments are they serving? What parts of the market are they serving everybody you know, or more the customer bases around a certain type of demographic. Most businesses aren’t there to serve everybody they are more fine tuned in every business instead of having to get more fine, more efficient about the the customers they’re building around to serve best And look at what they’re charging and how can you look at those examples to best choose the model and best align your pricing to be successful. And think about how could you follow suit but differentiate what could be different, and in a sustainable way that you could differentiate your business better than the people can copy your or repeat. And really important questions to ask yourself and look around to evaluate and identify opportunities for you to best position your business for success. So take some time, look around documents in those pieces, and give some consideration. And remember to ignore the laws of mathematics at your own peril. And again, this is where a lot of people get stuck. They have great ideas, which is awesome. I love hearing passionate people great ideas that want to open a business to start a business. But do the math, you know, you’ve got to understand and connect passion and energy and enthusiasm with mathematics. And you got to understand what you can charge and what the market segment you wish to serve as actively paying right now and what they can, what they’re comfortable paying what they can afford to pay. And making sure you are clear in lining up the value proposition. And ultimately, you know, it’s a good return on investment for the business and for the sorry for the customer that you want to serve. And for your business. And knowing how many clients that will be required to achieve your income goals. Generally, you know, all things being equal, if our margins are structured appropriately, again, we get to that later, and patching pricing. But all things being equal. You know, we want to get there with less less people required to hit our goals and the less people it takes their goals. Generally speaking, the faster we’re going to get to our goals, right. So if I can share my income goal with 12 private training clients, I can go find acquire 12 private training clients faster in most cases than I can go find 90 group training clients, right. So it’s going to take a lot more time to find them, to market to them to bring them in to sell them to sign them up to service them, it’s gonna be a lot of work with nine people than it is 12 people. So understand how those things line up, and what your goals are, and, and what time, timeline and time horizon you have on achieving your goals. When your model is simple and easy, and your price correctly, you’re going to have a very efficient path that your goals this is again, people try to go chop down a tree and they’ve got a fork, and they’re just sitting there whacking industry with a fork and it’s never gonna never gonna come down and get really tired, it’s gonna be really hard, right. So take time to refine and think about the model, refining your strategy, putting these pieces together is again, the root cause of why most most businesses don’t take the time to do this, they don’t get it right, they don’t evolve when they need to. And they really struggle and there’s a lot of pain. So get this wrong, and you may never be successful, and there will be a lot of pain. And even if you are successful, it’s going to be a lot of wasted energy and effort to get there. So take the time to step back do some critical thinking about your business about how these these you can apply these concepts and strategies to to make it simple for you to win the game. You know, you hear me talk hear me talk a lot about if you’re not winning the game. Often you’ve got to not just play the game better, we got to change the game. So the game is set up better to win. We talked about changing the game to win that first and foremost means your model is set up to win. And you’ve thought through these components you simplified you made the economics work the math work of how you’re going to get to where you want to go. So very important lessons for you to take and apply. So to summarize this module, so fitness business models are much simpler than we often make them. There’s really just three proven models, they’ve been around a long time, they’ve been very successful for decades. Now. They have a proven track record of success. You don’t have to reinvent the wheel, pick one of the three models and run with it and make it successful. And then once you’ve hit your goals, you know pause, reevaluate. You can examine what it looks like to continue to scale that in labor or locations or whatever it may be franchising licensing, or if you want to add more layers to the model and do other things. But you know, don’t sit around thinking about it, make it simple and go do it. Certain modalities are also better suited for certain models, you know, and people are used to paying certain price points for things. So high priced one on one Yoga is going to be a little bit harder to get off the ground then group lower cost yoga because people are used to paying a low cost for yoga, right? So unless you can really differentiate and serve a very special segment, that’s going to be a little bit harder to push right so but people were accustomed to paying more per hour for one to one personal training. So thinking about what modality is best aligned to the model and the market you want to serve and where you’re putting listing yourself. Again, all of this is based on the idea of clients around the market that’s in front of you. And then this option to serve, it’s like this is the waves at the beach, right? We can

want to do a lot of things. But if the waves aren’t cranking, there’s no surf to go ride. So we got to understand what is the opportunity to market, what’s the market demand around us who is willing to invest in solving what problems are achieving what goals or fulfilling what desires, and then building everything around that. That’s where it starts, and where you’ve got to stay focused, first and foremost. And again, I can’t say this enough focus on building one model successfully. Rather than trying to build three models on successfully This is probably the most common thing we talk about every single week with our clients and our students is most are over complicating it, they’re trying to do too many things. And they’re not doing one thing successfully. And that option costs focus, and not focusing and trying to do too many things and figure out the marketing messaging and the sales process and the Legion strategy and the operations and all the things for multiple things at once that generally never get there, when they simplify down to just one thing they’re going to focus around, whether it be group or private, in most cases, it’s one of the two as a starter, then things start moving a lot faster, with that focus of your energy and effort. So very important to remember those lessons and apply them. So action items, you want to think about the market you most want to serve. In the model, no doubt, it makes the most sense to deliver a tremendous value to the market, while allowing you the shortest path to achieve revenue goals. And that’s really the key is you want to make sure we’re looking at the market, but also lining it up with your goals, your time horizon, what you want to achieve. We want to pick a business model and commit to it one model, focus on that, and really get focused and eliminate activities that don’t align with building a successful business around your one primary model. And that really, people ask me all the time how to get focused, well, how do you get focuses start, stop doing all the stuff that isn’t aligned to that goal. When you get focused on your goal, then you you you eliminate everything else that’s not aligned with that. And really that starts in most cases, the root causes is clarity, the model. So starting with that, and getting really focused is going to set you up for success. So those the action agenda, this model, and then I’m sorry, this module, and then just to share the tool that we’ve talked about here with you, we’re giving you access to this fitness business model tool. And you’ll see the link in the resources here. This has got three primary tabs here private training, semi private group training, you can see and all you got to do is go through here, the you can adjust the cells in yellow, and you can play with us if you’re charging 85 a session, you can start to see what that does to achieve the revenue goals you’ve got for monthly gross. And you can see, well maybe only need now 14, you know, 15 clients to get to my goal. And maybe I only need 10 clients to get to my goal of around 10 k a month in most cases 10 k a month is a great goal, we look at 30 hours of training 10 k a month, you know that’s a great, a great target. For early stage fitness businesses getting off the ground 10 k usually gives you enough revenue to support yourself while reinvesting in continued growth of the business. So that’s a general target we want to aim for in most stage two and three businesses we call it and this is what the investment looks like on the client side, weekly and monthly investment. So you can play with this, if you just click to download a copy, you can just click File, copy. And then you can play with this stuff for yourself. You can see these tabs we’ve got here for semi private training. For group training, you can play around the different examples here with the rates and with the clients and see how that affects your numbers. And just you know, put your head around some different iterations of your model and how you’re going to refine your model get focused in your model and can it get you there, right want to know, if we’re focused on this model? What’s it going to take to get to our goals in the business in terms of revenue, all things being equal in our cost structure and such. So have some fun with this one and let us know how it goes for you. Again, getting this right getting this clear is going to set you up for success with everything to come. Take this into pricing, patching, sell systems, marketing, lead generation systems and more. This is where it all begins in fitness business success. So enjoy it. Have fun, we’ll talk to you soon. Take care bye bye

Related Posts

Get a free 60-min Fitness Business Game Plan Session (your questions answered)

Tell us a little more about your fitness business and then get the personalized support you need to win by scheduling a Game Planning Session now.

By signing up, you’ll get NPE’s exclusive updates with key fitness business growth strategies. Unsubscribe anytime. Contact Us. Privacy Policy.

Subscribe to NPE Fitness Profits Weekly
and Get More Business #Gainz 💰

Give us 5 min each week and we’ll increase your power to drive fitness business results!