gym growth

Gym Growth Blueprint Series, Part 8: How to Run a Business, Not a Hobby

Gym growth comes from operating as a legitimate business, not just a hobby. Here are the differences, and ten steps to get started in your gym!

Emily Beers
October 10, 2024
Gym Growth Blueprint Series, Part 8: How to Run a Business, Not a Hobby
TL;DR
Gym growth comes from operating as a legitimate business, not just a hobby. Here are the differences, and ten steps to get started in your gym!

It’s not unusual for gym owners to start their business out of a passion for fitness, versus entrepreneurship. So when it comes to proper operations and gym growth, many put their focus on the wrong areas.

For instance, a gym owner might have envisioned opening a gym to help people improve their health and fitness. And while the goal is noble, they could unintentionally fall short of their gym’s potential. This can happen if they’re spending too much time on things like coaching or programming, or running the business as a hobby.

Welcome to the Gym Growth Blueprint Series! We asked gym owners, “What’s the one piece of advice you’d give a new gym owner?” As gym owners ourselves, the PushPress team is passionate about helping others succeed.

Today’s suggestion comes from Anna Elisabeth Ngo, owner of Bold City CrossFit in Orange Park, FL.

Bold City CrossFit gym community
Members of the Bold City CrossFit gym community after a workout. (Photo credit: Bold City CrossFit)

“Run it like a business, not like a hobby,” she said. “And respectfully, don’t let members run all over you. We can make gyms run professionally and orderly without chaos, drama, crappy coaching and dirt-cheap memberships, just to be nice.”

If you’re looking for improved operations and gym growth, let’s dive in!

Ten Tips for Improved Gym Growth and Operations.

1. Define Your Niche.

Start by identifying what sets your gym apart from the competition, and who your target market is. Especially when your gym is more of a hobby, it can be tempting to be all things to all people. But it’s impossible for any business to be a perfect fit for everyone.

One you determine what your gym is - and what it isn’t - you can build brand loyalty with your ideal audience. Are you a competitive gym or aiming to attract the everyday adult that’s looking to be healthier? What’s your ideal age range? Do you solely offer group classes? Or do you provide high-ticket gym services like personal training or nutrition coaching?

Not only will prospective members understand if they’re in your niche, it can also help with the gym growth you want too.

2. Create a Business Plan.

A solid business plan is the foundation of any successful enterprise, including your gym. And no stone is left unturned when it comes to putting yours together.

Start by researching your market, including local regulations. Dig into demographics and income level in your area. Identify competitors, along with their services and prices. After that, outline your own services and pricing, then create a thorough branding and marketing plan.

Finally, remember that a business plan is a living document. Regularly review and revise it throughout gym growth and an evolving market. Adapting your plan will help you stay relevant and responsive to your members’ needs.

3. Implement Effective Pricing Strategies.

One of the most common mistakes gym owners make is undervaluing their services. Yes, competitive pricing is important. But it’s essential to strike a balance between affordability and sustainability when setting gym membership pricing.

Here are three tips to help with long-term gym growth:

  1. Find the balance between catering to different budgets while not offering so many options that prospects can’t easily make a decision.
  2. Consider offering hybrid memberships as a way to increase your ACV (average client value).
  3. Avoid grandfathering rates, as often happens in hobby gyms, and is likely to be detrimental for your business in the future.

Ultimately, your goal should be to create transparent pricing structures and clearly defined membership terms. In the long run, this will help you manage expectations and reduce potential conflicts with members.

4. Create Systems, Policies and Procedures.

One of the biggest differentiators between a hobby gym and a legit business is the existence of clear, written systems, policies and procedures. This is your overall strategy for your general operations, and what happens day-to-day in your gym.

From a code of conduct policy to safety procedures, the more detailed the better. After all, this is a document you’ll hopefully be able to refer to in unexpected situations. And it’s much better to outline your plan ahead of time, versus in the middle of a chaotic incident.

5. Hire the Right Team for Gym Growth.

It’s not that your gym won’t succeed without the right team. But it sure will be easier to grow if you surround yourself with rock stars.

Hiring the right team for gym growth
Coaching team at 2020FIT in Prairie Village, KS. (Photo credit: 2020FIT)

In the fitness world, solid qualifications can range from the right technical skills to interpersonal ability (being able to engage and communicate with members). And the best candidates will have both.

In order to promote yourself from coach to CEO, investing in a quality staff - and their development - is crucial. This could be anything from better coaching to sales training. Whatever your priorities are, your coaches are the face of your gym and play a significant role in shaping the member experience.

6. Invest in Continued Education.

In regard to your team of coaches, continued education is another option that can elevate your business from “hobby status.” Whether it’s weightlifting, nutrition or sales training, the benefits of continued education will trickle down from your coaches to your members. Further, it can pave the way to adding new revenue streams for the business and the coach.

For example, a coach who is passionate about Olympic weightlifing could launch a specialty course for an additional cost. Or, a staff member who is interested in nutrition could run a challenge and subsequent nutrition coaching program.

7. Create a Professional Atmosphere.

If you picture what a hobby gym might look like in your mind, versus a professional business, what do you see? Chances are you, you can visualize the difference. A professional environment reflects the pride you have in your gym. And the correlation will show in gym growth numbers. This includes organizing and maintaining clean facilities and equipment, plus ensuring that your gym operates smoothly without unnecessary disruptions.

Appropriate lighting, music and decor also contribute to a positive and professional environment. Ensuring staff members are all on board with communications and experience expectations is also crucial.

At the end of the day, your staff will do the things they want to unless you’ve clearly outlined how they should be doing them. Have a coach that loves country music? Or another that rarely wears a shirt? Unless you’re defining music and apparel policies, you might have hobby-gym vibes.

8. Develop an Effective Marketing Strategy.

Effective marketing is integral for attracting and retaining members. The good news is that marketing isn’t rocket science, and you don’t need a master’s degree to develop an effective strategy. However, in the highly-saturated fitness marketing, you do need to be marketing.

When it comes to paid ads versus an organic approach, gym owners are often split as to the ideal strategy. Paid advertising is exchanging dollars for awareness. Paid ads refer to how your content is distributed to your target audience. Organic gym marketing is mainly comprised of two media options: Owned and earned. Owned media is content that you own, maintain and distribute yourself. The most obvious example is your gym website. Other examples include blogs, email marketing, newsletters and social media.

The truth is, a combination of both paid and organic is an incredibly effective route to increase revenue and encourage gym growth. Develop a strong, organic marketing campaign and layer on paid ads to create the one-two punch to grow your gym.

Pro Tip: Want to find out why PushPress Grow is the tool successful gym owners can’t live without? Book a demo with our team today!

9. Focus on Member Retention for Gym Growth.

Experienced gym owners will confirm that retaining members is as important as attracting new ones. Plus, gym member retention generally requires less time and money than marketing for gym growth.

Creating the ultimate member experience
Member retention is a crucial part of gym growth. (Photo credit: CrossFit 845 in Wappingers Falls, NY)

From helping members achieve results to celebrating milestones like birthdays and PRs, retention comes from creating the ultimate member experience. Members who are consistently improving are unlikely to churn. And tight-knit gym communities tend to stick together. So, get creative with challenges, member check-in goals and even your gym management software tools to level it up!

10. Prioritize Financial Management.

Sound financial management is crucial for sustainability and gym growth. Therefore, it’s important to review your financial snapshot and important gym metrics regularly.

If you’re like a lot of gym owners, you got into this business because you wanted to help make people’s lives better. But even if coaching is your jam and math is not, it’s still imperative that you know your numbers. Consider hiring a mentor if you need some guidance in this area, but neglecting the financial picture could be a quick route to hobby-gym status.

In Summary: For Gym Growth, Remember that You’re Running a Legit Business.

Running your gym as a legitimate business requires a shift in mindset from treating it as a hobby to operating it with professionalism and strategic foresight.

Start by defining your niche and creating an effective business plan with proper pricing strategies. Implement systems, policies and procedures that will help your gym to operate efficiently. Next, hire the right team and invest in their continued education to create a professional atmosphere. Develop an effective marketing strategy that focuses on both acquiring new members and retaining loyal ones. And finally, prioritize financial management to always keep a handle on important metrics.

Remember, success in the gym business comes from balancing exceptional service with sound business practices. Treat your gym like the valuable asset it is, and it will reward you with growth, satisfaction, and long-term success.

Emily Beers

Emily Beers is a health, fitness and nutrition writer. She has also been coaching fitness at MadLab School of Fitness in Vancouver, B.C. since 2009.

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