How to Build a Profitable Fitness Business?
Fitness business seems like the right choice when it comes to owning a business. It might seem easy but it definitely requires more than just funds. Fitness, in today’s time, has become a need. People don’t only look at fitness as a medium to acquire a slim and well formed figure anymore. Many have turned towards it in order to acquire a healthy body and lifestyle. Fitness enthusiasts have a whole lot of choices to choose from. Establishing a name in the fitness market takes all the efforts as there are many businesses that are doing a good job. For a newcomer to form a strong base, there are some points they need to tick mark in order to ensure establishing a profitable fitness business.
Selecting a Location
Choosing a location is a crucial step. A lot of thinking goes on in selecting a location as it decides a lot of things that contribute in the success of a business. An entrepreneur must make sure that the location that he has selected for his fitness business has the right demographic makeup in order to support a full-time business. The area should be able to establish a good reflection on the business. A location plays a vital role in creating an image of the business and if one ends up with a wrong one, it can do a lot of damage to the brand.
Marketing- A Business’s Best Friend
Marketing is like a business’s best friend. If done right, it can bring success to a business. A fitness business which is still developing shouldn’t wait for it completely settles down to go forward with marketing. The rule here is to start marketing starting from the initial stages to connect with the prospective customers. It is beneficial for the brand to start marketing as soon as possible. Social media is the best option as a brand can do self-promotion without any hassles. One can also invest in paid promotions if they want to reach out at an advanced pace.
A fitness business needs to be systematic in order to build a reliable model. One cannot ensure profits just by buying out a place and putting in some professionals and machinery. Brands need to work on building their fitness business on systems and structures in order to establish a model that yields profits. Introducing new technologies and techniques to make running the business a smooth process will help it grow much faster than holding on to old ways.
Networking- An Important Element
If a brand or entrepreneur in the fitness industry wants to grow and expand in a less span of time, they should really network. Networking not only lets other people know that your brand exists but also help open more opportunities for your brand. The fitness industry is a fast-growing market and if a brand has something interesting to offer, investors do put in their money to take it further. At that point, connecting with the important people associated with the fitness industry plays a big role.
Establishing a Specialisation
Opening a gym is not a big deal but bringing in specialisation and uniqueness into it is something not all can match to. It is recommended for new businesses in the fitness industry to choose on to an area they want to specialise into as plain gyms are so old time now. This will not only make the brand stand out but will also attract good business.
Client Retention is Vital
Every business aims to bring in as many clients as possible as that is what impacts the success of a business. While every brand wants to have a huge client base, it is not possible to bring in new clients and lose out on the others. A brand should give a lot of preference to what their clients like and expect from them in order to establish client retention. Developing a good connection by remembering their names and choices can take a brand a long way.
“The fitness industry has come a long way and is growing at a healthy 16-18% rate. This can be attributed to a number of factors such as societal influences, globalization, and a growing rise of consciousness amongst the youth of India to live a healthier lifestyle. Being fit and healthy is a trend nowadays which has sky-rocketed the potential of the industry tremendously. Also, the well-toned and muscular figure of prominent celebrities displayed in the media has created a significant impact on consumers embracing a fitter lifestyle. Entrepreneurs have now realised the untapped potential of the industry. They have started to capitalise on this opportunity by developing successful fitness related products be it the form of protein supplements, diet whole foods, apparels, gadgets catering primarily to this niche segment. This can be gauged by the rampant fitness related, products, advertisements and publicity prevalent today. The future of the Indian industry is bright as fitness is now regarded as a way of life and not a luxury,” says Sanjay Tiwari, Founder and CEO of Brio Capputeino ( a unit of Wellness QED.)
"The Fitness Industry has evolved over the years and today there are multiple ways to grow your fitness businesses. Profit or Revenue, Income or Expenditures, Per Hour or Per Day, that’s the important thought personal trainers keep asking themselves. Some personal trainers charge around Rs. 16,000 per month while some charge around Rs.10,000 per month. (I just see it surprising how people don’t mind paying Rs 5,000/- on a meal but will cringe to pay the professional Rs 16,000, who is guiding them towards their health and fitness) A personal trainer needs to factor in, travelling long distances which might cost them additional time, fuel and risk of injury along the travels. So how does a personal trainer make a good profit? What is good profit and is profit the only criteria for successful personal training business? Or is revenue an essential part of it too?
Let's look at the profit and revenue model:
1.Income Rs 1,00,000
Expense Rs 40,000/-
Profit Rs 60,000/- that's a 60% Profit.
2.Revenue Rs 3,00,000
Expense Rs 2,50,000
Profit Rs 50,000
Though model 2 has more revenue, model 1 has more profit. So the question is - PROFIT or REVENUE? Ideally, I would suggest the following formula.
1. How much money do you want to :
Spend ? e.g.: Rs 1,00,000 ( not incl travel)
Save ? e.g. Rs 20,000
Profit ? e.g.. Rs 20,000
So in effect, you would require making a revenue of 1,40,000/-. Now divide 1,40,000 by 20 days = Rs 7,000/day
Now divide Rs 7,000/ by 8 hrs/day = Rs 875/- hr ( 8 hr day)
2.How many hours would you need to work a day? - 8 hrs
3.How much would you need to charge an hour?- Rs. 875 + Rs. 218/hr to cater for travel = Rs 1093.75/hr
Based on the above formula, one has to be working 8 hrs a day @ Rs 1093/-hr + (2 hours for travel) to make a total revenue Rs 1,74,880/- less Rs 34,880 for travel = Rs 1,40,000 with a profit of Rs 20,000 and savings of Rs 20,0000.
Spend e.g.: Rs 1,00,000 ( not incl travel) + Rs 34,880 travel
Save e.g. Rs 20,000
Profit e.g.. Rs 20,000
While using this model one can adjust their per hour rates or daily rates to suit their respective lifestyles. You could also use the referral model where you either refer a client to another trainer and take the commission or get the trainer to train your client and take a monthly commission.This is residual income and works great in allowing you to add extra profit margins to your bottom line," says Prameet Kotak, Holistic Wellness Expert.
A fitness business does not get started within a day. It takes its own time and efforts to become something that can yield success and profits. There goes a lot from the entrepreneur’s side in making a brand name known in the fitness industry. Following some tips and steps can definitely help the brand in clearing out their long-term plan and will establish their name in the market.