It's time for a new edition of my thoughts on the business of fitness. Before I get to it, just a friendly reminder that we're hosting our second-ever Cressey Sports Performance Business Building Mentorship on October 15. You can learn more HERE.
Now on to some business concepts...
1. It might take years for someone to become a customer.
Just a few weeks ago, I released my newest product, Sturdy Shoulder Solutions. One interesting thing about my newsletter/product management set-up is that I can tell how long someone has been a "prospect" before becoming a customer. Basically, I know the date they signed up for my newsletter, and then I can check that out to see what products they've purchased and when.
During this launch, I had multiple people purchase this resource as their first purchase with me after over 3,000 days on my list. Yes, that means they "window shopped" for over eight years prior to taking the plunge.
Very few people purchase on the first exposure to a marketing message. Or the second. Or the third. It actually takes load of opportunities for them to perceive your expertise, and usually over the course of an extended period of time. They need to know, like, and trust you - and some people take a long time to get to trusting you enough to initiate a transaction.
Be persistent, but patient. It's harder than ever to be seen and heard.
2. It's a very small world; watch your social media behavior.
I made this post on Twitter yesterday, and it got quite a bit of attention.
Beyond the obvious moral issues of saying cruel things to pro athletes (or celebrities - or anyone else, for that matter), you should be cognizant of the fact that it can very quickly come back to bite you in the butt. Some of the agencies who represent these players may also represent others - athletes, actors, musicians, speakers, or coaches - who could be potential future clients for you. One of your followers could be an old friend or teammate of the athlete. It's an incredibly small world, so chasing a few retweets isn't worth sacrificing a relationship or potential client down the road.
3. Investments are different from expenses.
This is one of the most misunderstood accounting/economics concepts in all industries, and certainly in the fitness business.
An investment has the potential to appreciate in value. Maybe you spend money on a continuing education event, buy a DVD for some new training strategies, put money into a retirement account, or purchase some equipment that allows you to deliver a higher-quality product to your clients. Perhaps you hire a consultant to fine-tune your business, or decide to buy your building instead of continuing to pay rent. Additionally, from an accounting standpoint, investments are usually (but not always) tax deductible.
Expenses are like setting money on fire. They're the $5 you spend at Starbucks each morning, or the Porsche you bought on credit when you were making $20,000/year (is that even possible?). They don't appreciate, and there is a huge opportunity cost to these expenditures. Some are necessary and even tax deductible (e.g., rent), but they always need to be heavily scrutinized. Can that expense be reduced or somehow shifted into an investment?
Fitness businesses are notoriously bad at understanding the difference between the two, or understanding that one's financial situation may dictate what is and isn't acceptable. If you're grossing $5,000/month, paying $1,000/month to a cleaning service probably isn't a good expense; clean the gym yourself. Do you really need to buy seven different types of leg curl machines when you're already $300,000 in debt? And, why do you have payroll expenses when you've only got three clients?
Most businesses (and individuals, in their personal finances) would be wise to go through every cash expenditure and figure out how each one can be categorized. Growing gross revenue is always a priority, but many businesses can be even more profitable if they learn to appropriately trim the fat.
If you've found value in these insights, I think you might enjoy the upcoming Business Building Mentorship Pete Dupuis and I will be hosting on Monday, October 15th. It's a tax deductible expense if you're a fitness business owner, and we'd guarantee that the lessons learned will more than pay for the cost of attendance. Plus, registration in the mentorship includes free attendance at our fall seminar on October 14.
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