the business side of the personal training business by robert w. patton, facsm

The business side of the personal training business

ByBy

Robert W. Patton, FACSMRobert W. Patton, FACSM

Personal training is booming!!!

Membership growth at 10%/ yr in clubsMembership growth at 10%/ yr in clubs– Personal training is top growth programPersonal training is top growth program– There are 55,000 personal trainers in clubs There are 55,000 personal trainers in clubs

Home based fitness growth at 15%/ yrHome based fitness growth at 15%/ yr– Personal training is penetrating this marketPersonal training is penetrating this market

75% of our population is underactive; 75% of our population is underactive; 69% of them want to start exercising69% of them want to start exercising

There is a huge untapped market!! There is a huge untapped market!!

Working with students/interns preparing for personal training

careers

Consulting with a large personal training business

Owning a small personal training business

The business side of the personal training business

Gearing up for your businessGearing up for your business Planning for your businessPlanning for your business Launching your businessLaunching your business Keeping your business afloatKeeping your business afloat

Gearing up for your business

Searching your soulSearching your soul Getting the right credentialsGetting the right credentials Finding a good mentorFinding a good mentor Getting good experiencesGetting good experiences Walking the walkWalking the walk

Searching your soul

Are you cut out for this?

Good thingsGood things 1. Impact1. Impact 2. Variety 2. Variety 3. Flexible schedule3. Flexible schedule 4. Freedom4. Freedom 5. Growth 5. Growth 6. Good working 6. Good working

environment environment

Bad thingsBad things 1. Money isn’t great1. Money isn’t great 2. Work schedules 2. Work schedules 3. Travel time 3. Travel time 4. Lug equipment 4. Lug equipment 5. Wear different hats5. Wear different hats 6. Financial risk6. Financial risk

Getting the right credentials

Credentials

Formal educationFormal education– Degree or non-degree programsDegree or non-degree programs

Certification -- beware!Certification -- beware!– Generic vs specific; national vs localGeneric vs specific; national vs local

MembershipsMemberships– ACSM, ACE, AFAA, NSCA, etc.ACSM, ACE, AFAA, NSCA, etc.

Continuing educationContinuing education Work experienceWork experience

Finding a good mentor

A good mentor is critical to success

Can be a teacher, employer, colleagueCan be a teacher, employer, colleague Should develop a master-apprentice Should develop a master-apprentice

relationshiprelationship Will accelerate your learning curveWill accelerate your learning curve Will shepherd you through your career Will shepherd you through your career

developmentdevelopment

Getting good experiences

Good experiences are important!

Find the right setting earlyFind the right setting early Find that mentor earlyFind that mentor early Hold out for a good jobHold out for a good job

– large facilitylarge facility– small facilitysmall facility– Avoid job hoppingAvoid job hopping

Walking the walk

“Walking the walk”

Practicing what we preachPracticing what we preach– Are you actively training for something? Are you actively training for something? – Is your body composition OK?Is your body composition OK?– Do you eat healthy meals?Do you eat healthy meals?

Looking the partLooking the part– Do you dress professionally?Do you dress professionally?– Is your grooming up to par?Is your grooming up to par?– Is your posture acceptable?Is your posture acceptable?

Planning for your business

Doing your homeworkDoing your homework Figuring out who’s going to be the bossFiguring out who’s going to be the boss Finding the best locationFinding the best location Figuring out how much it will costFiguring out how much it will cost Hoping for the best; planning for the Hoping for the best; planning for the

worstworst

Doing your homework

Market Analysis

Industry analysis Industry analysis – Trends, issues, technology, political and Trends, issues, technology, political and

economic forces impacting the industryeconomic forces impacting the industry Local market analysisLocal market analysis

– Demographics and psychographicsDemographics and psychographics Competitor analysis = niche analysisCompetitor analysis = niche analysis

– Clientele, equipment, facilities, fees, Clientele, equipment, facilities, fees, programs, services, personnel, etc.programs, services, personnel, etc.

Mission Statement

Denton Country Club Fitness Connectionis committed to providing outstanding adult fitness and nutrition services in a safe and effective environment while empowering clients to enjoy high level health, wellness, and improved quality of life.

Figuring out who’s going to be the boss

Business structures

Sole proprietorship -- you are the boss. Sole proprietorship -- you are the boss. You also have all the exposure.You also have all the exposure.

Partnership -- you share the leadership. Partnership -- you share the leadership. You also share the exposure.You also share the exposure.

Corporation -- you are probably not the Corporation -- you are probably not the boss. You are protected from much of boss. You are protected from much of the exposure to problems. the exposure to problems.

Note: Get help with business planning.Note: Get help with business planning.

Finding the best location

Large Commercial Facilities

Advantages:Advantages:– Good equipment, available client pool, Good equipment, available client pool,

possibly reduced liability insurancepossibly reduced liability insurance– Learn business systems (accounting, etc.)Learn business systems (accounting, etc.)

Disadvantages:Disadvantages:– shared revenue with clubshared revenue with club– reliance on member referralsreliance on member referrals– restricted growthrestricted growth

Residential facilities

Includes homes, condos/developmentsIncludes homes, condos/developments Advantages:Advantages:

– low or no overhead, nearby referrals, higher low or no overhead, nearby referrals, higher percentage of fees retained percentage of fees retained

Disadvantages: Disadvantages: – frequently inadequate equipment, travel time, frequently inadequate equipment, travel time,

program enrichment challengesprogram enrichment challenges– Limited market penetration (10%), fewer Limited market penetration (10%), fewer

training hours per weektraining hours per week

Small private facility

Advantages:Advantages:– Freedom of schedule, little travel time, Freedom of schedule, little travel time,

nearby referrals, increased percentage of nearby referrals, increased percentage of fees retained, more training time availablefees retained, more training time available

Disadvantages:Disadvantages:– Increased overhead, increased liability, Increased overhead, increased liability,

more management and operational more management and operational responsibilities responsibilities

Finding out how much it will cost

Capital needs for personal training

Start up Start up OperatingOperating ReserveReserve

Note: Break even analysis is important!Note: Break even analysis is important!

Break-even analysis

$

TIME

INCOME

EXPENSES

BREAK-EVEN POINTLOSS

PROFIT

Personal training business expenses

EXPENSE SMALL MEDIUM LARGEOffice exp. + ++ +++Insurance + ++ +++Marketing + ++ +++Payroll ++ +++Debt service ++ +++Maint. & Op. ++ +++

Hope for the best;plan for the worst

Launching your business

Marketing ideas for startupMarketing ideas for startup Insuring against disasterInsuring against disaster Keeping good recordsKeeping good records Working with good peopleWorking with good people Getting good equipmentGetting good equipment Setting and collecting feesSetting and collecting fees

Marketing ideas for startup

Start up Marketing Ideas

Position your business -- namePosition your business -- name Business cardsBusiness cards Capability brochuresCapability brochures Offer targeted services Offer targeted services Offer enrichments to core servicesOffer enrichments to core services Promote your businessPromote your business

– Speaking, writing, sellingSpeaking, writing, selling

Insuring against disaster

TYPES OF INSURANCEProperty and Casualty Insurance:

BuildingContentsLiability (Independent Contractor, Event)Business InterruptionCrimeAutoUmbrella Liability

Employee InsuranceWorkers’ CompensationGroup Health (Health, Cobra)Life

Keeping good records

Essential Records

Member recordsMember records– Medical history, waiver, testing, contracts, Medical history, waiver, testing, contracts,

goals, workout data cardsgoals, workout data cards Financial recordsFinancial records

– Billing agreement, receipts, statements, tax Billing agreement, receipts, statements, tax recordsrecords

Miscellaneous recordsMiscellaneous records– Payroll, equipment, legal, insurance, marketing, Payroll, equipment, legal, insurance, marketing,

safety, maintenancesafety, maintenance

Working with good people

Working with good people makes life and business easier

ClientsClients– Qualified by income, commitment Qualified by income, commitment – Convenient to your business facilityConvenient to your business facility

Partners and employeesPartners and employees– Credentials and experience Credentials and experience – Integrity and dependabilityIntegrity and dependability– Work ethic and follow throughWork ethic and follow through– Service mentality and people skillsService mentality and people skills

Getting good equipment

Equipment considerations

State of the art equipment is criticalState of the art equipment is critical– A “hook” is essential A “hook” is essential

Working with good vendorsWorking with good vendors– Good equipment selectionGood equipment selection– Good maintenance and serviceGood maintenance and service– Additional revenue on client referralsAdditional revenue on client referrals

Maintaining equipment Maintaining equipment – Warranties, servicing, and maintainingWarranties, servicing, and maintaining

Setting and collecting fees

Fee considerations

Pricing policyPricing policy– Single rate vs package rateSingle rate vs package rate– Late arrival charge, cancellation and make-Late arrival charge, cancellation and make-

up policyup policy– Avoid differential pricing Avoid differential pricing

Payment PolicyPayment Policy– Prepayment vs billingPrepayment vs billing– Reconciling bills ---- workout cardsReconciling bills ---- workout cards

Keeping your business afloat

Dancing with them what brung youDancing with them what brung you Motivating clientsMotivating clients Programming ideasProgramming ideas Safety tipsSafety tips Financial considerationsFinancial considerations

Dancing with them what brung you

Showing loyalty and appreciation

ClientsClients– Birthday RecognitionBirthday Recognition– Spa or Training TreatsSpa or Training Treats

VendorsVendors– ExclusivityExclusivity– Cross-referralsCross-referrals

EmployeesEmployees– Incentives, Continuing EducationIncentives, Continuing Education

Motivating clients

Motivational ideas

Managing clientsManaging clients– Customizing programs, new fitness and Customizing programs, new fitness and

nutrition information, new equipment nutrition information, new equipment available, and meeting special client needs available, and meeting special client needs for travel, home, and workfor travel, home, and work

Keeping clientsKeeping clients– Professionalism, evaluation, cross Professionalism, evaluation, cross

referrals, personal involvement referrals, personal involvement

Programming ideas

Programming ideas

TestingTesting– Determining fitness and health statusDetermining fitness and health status

EvaluationEvaluation– Self renewing programsSelf renewing programs

EnrichmentEnrichment– SPA days, bike trips, boot campsSPA days, bike trips, boot camps

ThemesThemes– New year’s resolutions, sports trainingNew year’s resolutions, sports training

Safety tips

Safety considerations

Be preparedBe prepared– Education, certifications, trainingEducation, certifications, training

Anticipate problemsAnticipate problems– Waivers, consent, emergency plansWaivers, consent, emergency plans

Take special careTake special care– Good policies, inspections, maintenanceGood policies, inspections, maintenance

Be a trainer and don’t practice medicineBe a trainer and don’t practice medicine– demonstration, technique, spotting demonstration, technique, spotting

Financial considerations

Financial tips

Don’t overextend yourself Don’t overextend yourself – Do a break-even analysisDo a break-even analysis– Keep 3-6 months expenses in reserveKeep 3-6 months expenses in reserve– Save enough for taxes and insuranceSave enough for taxes and insurance

Don’t give away the farmDon’t give away the farm– Be consistent and persistent in pricingBe consistent and persistent in pricing

Plan aheadPlan ahead

Summary and Conclusions

Staying on the growStaying on the grow Enriching the servicesEnriching the services Having Fun!!!Having Fun!!!

Staying on the grow!

Enriching the services!

Have Fun!!!