Operational excellence is about effectively running your business so that your athletes and staff are thriving and happy, while you maximize your income potential. This post is part four in a seven-part series. Today we talk about why you should and how you can diversify your revenue.
One facet of operational excellence is diversifying your revenue streams. Diversification will help you prepare for changes in the industry and give you greater financial security. It will also allow you to offer more products and services, which helps with retention and strengthening your community. Since it’s not unusual to bring in an additional $20 per person, per month through additional products and services, diversifying also adds generously to your bottom line.
Most box owners intuitively know it’s important to diversify, but few do it in a strategic manner. We’ll list some of the most common ways to diversify below, so you can consider which of the options will work for your box.
Personal Trainers/Private Coaching Sessions
We recommend offering private training sessions if you don’t already do so. Private training sessions are one of the easiest additional revenue streams to introduce, and they are usually purchased as a compliment to your basic monthly membership.
Specialty training programs are also easy to set up and popular with athletes. Consider adding programs like a ladies barbell class or OLY program. You can also offer training for outside groups, like sports teams or the military.
Skill Building Seminars and Workshops
Seminars and workshops are also something you may already be doing. They are great because your athletes benefit from them, so they stay healthier and committed longer. But seminars and workshops also bring in a little extra revenue each time you host one. Some ideas to get you going include workshops on any of the more challenging skills, as well as nutrition seminars and competition prep classes.
Body Comp Assessments
Everyone wants to know if they’re making progress, so why not offer body comp assessments for a small charge? Ideally, you should do an assessment when an athlete joins your box, so we recommend making them available for a small fee whenever an athlete wants to re-test.
Since the bulk of any fat loss or muscle gain progress is made through the foods we eat, athletes need to know how to eat for optimum results and performance. If you don’t have someone on staff to provide this service, you can subcontract with a nutritionist.
Fitness and Nutrition Challenges
Like several of our other suggestions, this option benefits athletes by helping them achieve great results, but it also brings in a little extra revenue. Of course, you’ll need some of the entrance fee money to buy prizes for your winners, and it takes time and effort to put a challenge on. But it’s still common to make additional income from these events.
Kid’s Classes or Camp
Kid’s programs are a popular way to include the whole family and train the athletes of tomorrow.
Much like specialty training, limited programs meet your athletes’ needs and keep things fresh and exciting. Consider offering boot camps and other programs like that throughout the year.
Sure, you probably don’t have an LMT on staff, but if you have space, you can sublease it to provide this great service.
Hopefully you already sell some retail items at your box, but even if you do, there are some other things you could stock as well. Consider selling supplements and specialty nutrition items like those sold by Progenex, Kill Cliff, SFH and FitAid. You also can’t go wrong with equipment like speed ropes, wrist wraps, RockTape and recovery gear. Or let your athletes do some marketing for you by stocking and selling logo clothing, hats and bags. Finally, look into contracting with a meal delivery company to supply healthy meals.
Without a doubt, diversifying your revenue is a smart step towards operational excellence. It strengthens your bottom line while ensuring your athletes are happy and experiencing success.
Diversifying your revenue is a smart way to keep your box financially healthy. For additional tips, get your copy of our free guide, Six Building Blocks to Financial Health for Your Affiliate Gym.