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How Fitness Studios Can End 2020 Profitable
After everything that’s happened this year, is it still possible for fitness studios to end 2020 profitable?
As you enter the 4th quarter and reopen your fitness studio, it won’t be easy, but yes, it is possible.
Loud Rumor CEO, Mike Arce went on the Morning News Channel AZTV7 (full interview above). He said, “Some of the top fitness studios we work with are actually more profitable than they were pre-pandemic.” So…
At best, you have the potential to end the year ahead. At worst, you can put your fitness studio on the right track for 2021.
Here are some of the ways to end the year with your business heading in the right direction…
Focus On Moving Your Fitness Business Forward
Unfortunately, we can’t go backwards, right? This is tough to accept. We know I just want to go back to the way things were before all of this probably isn’t going to happen. And that’s OK…
The best business owners, beyond the fitness industry, remain profitable through good times and bad because they focus on moving forward.
“We’ve worked with thousands of gyms and fitness studios over the years and they’re definitely taking a hit right now.” Mike tells the morning news anchor seated about 12-feet away, “and more than 40% of all gyms have had to close permanently because of this.”
Mike is visibly bothered when he mentions this statistic. These are small business owners with employees who all lost their livelihood.
On top of that, the fitness studios that didn’t close down end up reopening with strict guidelines. “Some have had to open at 25% capacity,” Mike said, “which, it’s really hard to run a business successfully that way.”
A fitness business that was used to operating at 85% member capacity being forced down to just 25% is missing out on 60% of its business—which is astronomical. How can you be profitable after that? Fortunately…
So many of the fitness studios we work with at Loud Rumor have grit, went all-in on pivoting their business, getting creative, and coming out of this ahead!
That focus on moving forward and accepting that the past is no longer an option has helped fitness studios not only survive, but for some, discover what they’re capable of as business owners.
Some of the Most Profitable Businesses Were Built During Recessions
It’s in our nature to be survivors and risk-averse. But, as we all know, when things go south, that’s when we find out what we’re made of…
“The successful gyms are doing the right things to get through this.” Mike tells AZTV7 news anchor Brad Perry, “Recessions do one of two things, you’re either going to see elimination or innovation.”
Innovation is the action that comes after developing a focus on moving your fitness business forward. It’s creation.
“The greatest companies in the world have come out of recessions—Uber, Spotify, Air BnB, Apple, and even fitness businesses like Orangetheory Fitness, Fit Body Boot Camp, I Love Kickboxing.” Mike tells Perry, “It’s just about getting innovative and not saying how does the world bend to what I’ve been doing? and instead saying how do I run with the way the world’s running right now?”
Friend of Mike’s and 2-time GSD Show guest Bedros Keuilian talks about how he had to innovate in the franchise space for Fit Body Boot Camp to be profitable.
Our own Loud Rumor Virtual Training Performance Director Matt Kafora opened his first Orangetheory Fitness (OTF) location during the recession. At that time, no one knew what Orangetheory was. Now, he owns and operates 7 OTF locations.
There’s a third thing all of these business owners have in common…
Profitable Businesses Typically Come When Forward-Thinking and Innovation Is Combined With This…
“The challenge for independent gyms and fitness studios is that they typically have smaller spaces.” Mike says, so at 25% capacity and a small space, it could break a business, unless they get innovative…
But forward-thinking and innovation alone won’t lead to a breakthrough where your fitness studio ends the year profitable. There’s a third component:
“So…” Mike continued on AZTV7, “a lot of fitness studio owners have done a great job pivoting to virtual fitness, hosting workouts in the parking lot, and increasing retail sales. In fact, there are some studios we work with that are actually more profitable now than they were pre-pandemic. They learned how to be scrappy and lean—so there’s still a ton of opportunity.”
The fitness studios we work with that decided to forget about the past, started innovating, and chose to lead, took their businesses to the next level.
Now, when things “get good again,” they’ll dominate their market. When things get bad, they’ll know what to do.
Mike not only helps fitness studios with what to do, but also what not to do. “There’s a lot of things that people are doing that’s just a waste of time—you need to cut the fat right now and just focus on the meat. If you do that right now, you can really be successful.”
Combine theses steps with what Mike says here:
“We help fitness businesses get in the right place with sales, marketing, operations, and of course, finances to make sure everything’s heading in the right direction.”
…and 2021 could look really good for you and your fitness business.