GET MORE CASH for Your Fitness Business: The 30-Day “EMERGENCY” Plan
By Sean Greeley
Today I’ve have something very important to share with you.
I call it the “30-Day Emergency Plan” to get more cash.
If you find yourself in a cash-flow squeeze, or in a situation where your business is producing more revenue than it used to… but your NET profit just hasn’t increased to follow suit… then this is for you.
Look there are a number of ways your business can get in a tight spot like this.
And reflecting how that happened… and learning from the experience so that you never have to repeat it… is important.
But NOT as important as…
“Getting Out Of The Jam” As Fast As Possible!
To do THAT, there are a few things that can be done in every business.
And we’ve walked literally THOUSANDS of clients safely through this kinda thing over the years.
Last December, we packaged up all the best strategies and tools we’ve used for this into a program called CASH FLOW INFUSION™. The program sold out with over 58 students (which was way more than 30 we had originally agreed to allow in) and a ton of incredible success stories.
But we’ll come back to that in a moment.
First I want to dig in and talk with you about the “30-day emergency cash flow flow plan”, how and why it works, and how you can fix this serious problem (or just get even stronger!) in your business right now.
The 5 Cash Flow Boosters
There are 5 Cash Flow Boosters you can use when you find yourself in a tight spot. Now in reality, there are more cash flow boosters you could use beyond these… but the problem is a lot of things take time to implement. And that’s great when you have time.
But when you don’t… and the clock is ticking down fast… these are the steps to take pronto!
CASH FLOW BOOSTER #1 -FIX Your Packaging and Pricing AKA Your Services “Menu”
I can’t tell you how many clients we talk to that have no idea how to package their services. And a result… everything is a mess.
They only sell small blocks of sessions (or punch cards for group classes).
Their margins are terrible (they are ALWAYS paying out way to much in labor to their staff, and therefore their business is getting choked out in terms of margin).
And they usually have tried to self correct things in the past with multiple offerings that make their business really hard to market and confusing to understand (and therefore make a buying decision) for a prospect.
I’m talking about things like having private training, semi-private training, group training, boot camp and more all on the menu next to each other… so nobody understand what the heck to do or what is the real benefits and value between all of those things!
We also see typical things like all these offerings, with ridiculous frequency options… so an actual menu or conversation with a new prospective client ends up sounding something like this:
Prospect: “Hey I’d like to get more information on your programs, how can I sign up?”
Facility Owner: “Great. We’ve got a ton of choices. Would you like to sign up for Group Training for 2x week/ $100/month, 3x/week $115/month, 4x/week $125/month, 5X/week for $135 per month… or you can add X,Y,and Z to that for another $7.50. OR you can sign up for small group training/semi-private training for 2x week/ $150/month, 3x/week $165/month, 4x/week $180/month, 5X/week for $195 per month. OR you can sign up for private training for 2x week/ $300/month, 3x/week $350/month, 4x/week $400/month.”
Prospect: “Uh, I have no idea. What’s the difference?”
Facility Owner: “Well… depends on how often you want to train with us and if you want to train with 15 people, 4 people, or by yourself”
Prospect: (Speaking to themselves) I just want someone to help me with my problem. I don’t understand the difference between all this stuff! WTH?
You see, this kinda scenario has made things way more complicated then they need to be for everyone involved.
DON’T DO THIS!
Cleaning up your menu makes it easier for your prospect to understand clear benefits and distinctions between offerings. Keep it simple.
Not to mention cleaning up your menu allows you to offer bigger packages AND fix your margins so there is finally more PROFIT in everything your business sells!
CASH FLOW BOOSTER #2- Launch a RAISE THE RATES Campaign to Your Current Client Base
Ok, once you’ve got a clean menu… that has appropriate margins in your services… then it’s time to announce your raising the rates to your current client base.
Now, having been coaching for a LOT of years now… and literally worked with thousands of clients on this process, I can tell you that NOTHING FREAKS OUT A BUSINESS OWNER MORE THAN DOING THIS!
They are ALWAYS scared to raise the rates.
I’ve written VERY extensively on this subject.
But the bottom line is, it needs to be done for a business to be profitable. AND we know how to do it right having walked thousands through this before. And YOU we’ll help you get through it too!
Courage is defined as doing the thing that must be done, even when you “feel the fear”. And that’s what’s needed here.
We’ve got the letter templates to send to your clients, review and rehearse talking points leading face-to-face conversations, and aligning your staff with the plan (and how to speak about it).
We’ll work through this.
CASH FLOW BOOSTER #3- Launch a “Reactivation Campaign to Past Clients”
The next cash flow booster involves reaching out to clients whom you’ve worked with in the past, but for whatever reason are NOT working with you right now.
Now the number of people you’ve got on this “list” will certainly vary.
We’ve had some clients we’ve worked with who’ve been at this thing for 20 years and have hundreds of inactive clients they’ve NEVER contacted since they stopped working with them.
And truth be told, results will also vary here based on the quality of the relationship you had with your client.
If they hated your guts when they walked out the door, then this is less likely to be that big a winner for you.
But for most coaches, you’ve had clients come and go from your business for a variety of “life issues” that have nothing to do with you or the quality of your services.
They got sick and fell off the wagon.
Kids are out of school, they took some time off for holiday, and then just fell out of the groove of coming in.
They took a new job and all of a sudden were faced with a bunch of stress from learning their new position and got behind in their workouts.
Whatever the case may be.
Point being, life happens.
And people fall off the wagon.
But you know what?
That doesn’t mean they don’t care about their health.
And it certainly doesn’t mean they don’t WANT to look and feel better.
They just have a lot on their plates and lack the ability to consistently keep the right support system in place to stay on top of their fitness goals.
And that’s where we all really come in and make a difference as coaches, isn’t it?
Don’t we help out clients by providing that support system and accountability every human being needs to stay on track and keep ourselves “honest” with what we’ve said is important to us?
Of course we do!
So, again I’m going to challenge you here and say I believe it’s your “moral obligation” to reach out to these folks you’ve previously worked with every now and then.
Ask them how they are doing.
Let them know you care about them.
And invite them to come back and work with you anytime they are ready.
Because they are GOOD PEOPLE who would LOVE TO COME BACK and train with you.
And they’re just waiting for you to MAKE THEM AN OFFER!
We’ve got the tested and proven done-for-you campaign ready to go here. Simply open up the file, drop in your name, and it’s ready to go out the door for you here.
CASH FLOW BOOSTER #4-Tighten Up Your Sales Process
Once you’re charging more, it’s time to fix your sales process.
Because when you start asking for more money, you need to have a clear and consistent process of how you pre-qualify and then conduct a consultation with a prospective client.
Bumbling around with a brochure that has a few rates listed, or throwing people into long free trials is weak and ain’t gonna cut it anymore when you need to generate cash quickly (and frankly is shows you don’t believe much in your value, which is the fastest way to REPEL anyone from investing in working with you).
And NOTHING will have a greater immediate impact on your bottom line than fixing your sales process.
Here’s a graph to show you what I mean:
Look at how drastically the numbers change when you fix your close rate (by mastering your sales process) and increase your average ticket sale (by fixing the way you package, price, and present your services.)
Total NEW CLIENT Monthly Revenue jumps from $1,800/month to $9,000/month.
That’s a 500% increase in revenue from just NEW clients alone!
Now, if you don’t know what your close rate is right now…because you don’t track it…let me tell you that it’s 50%.
How do I know this?
Because that’s where everyone is at who doesn’t track their sales process!
And I know this because I’ve been through this over a thousand times before!
But when you get some simple systems in place…like using a “pre-qualification” phone script…and having a structured system and worksheets for performing consultations (we teach what we call our 7-step system of selling services) then you absolutely can get your close rate up to 90%.
We’ve got folks who get and stay at 100% for months…but I want to be conservative here and not just give you rosy “best case ever” metrics.
And when you combine a high close rate with raising your rates and asking prospects to make the longer “length of term” commitments they really NEED…well now you can see how easy it really becomes to arrive at a VERY solid average transaction size sale.
The good news is even when you are still learning our AUTO-CLOSER fitness sales system (which is included now with every NPE PROGRAM we offer, it will still get the job done.
Here are recent posts from our clients who just used the system for the 1st time in the last couple weeks:
CASH FLOW BOOSTER #5- Launch a Short Term Promotional Marketing Campaign to Your SOI
Finally, once you’ve got your house in order… it’s time to pump some fresh blood into the system.
And the best way to do that is to structure a short term promotional offer… then broadcast it via every media you have at your disposal to communicate with people you know. Facebook posts, email, blog, twitter, client referrals, call friends and family and ask them to share with others they may know you can help, etc. Sometimes all that’s need is 1 good FB post with a good offer to get this done.
That’s what happened to NPE client Lori Harris.
She went home, launched it, and immediately had 30 people sign up for a short term $97/program (which then allowed her to convert these trial buyers into long term clients on 3, 6, 12 month programs with the next few weeks).
BOOM! Off to the races!
Let’s get to work improving your cash flow now!
Committed to your success,
P.S. Look even when things beyond your control go terribly wrong… like a flooding tropical storm… these strategies and tools will still work for you to get it done. Head on over to read more about the hundreds of review and success stories we’ve helped people generate quick wins in cashflow while putting their business on the right track for long term success and profitability.