Why are some gyms more successful than others? What separates a top performing studio from one that struggles to make ends meet each month?
We compiled the Boutique Fitness Benchmark Report to find the answers. Owning a gym is more than just balancing your relationships and day-to-day operations. To be successful, you need to master the backbone of your business – your finances.
We created the Benchmark Report and filled it with data and recommendations to help you run a more financially fit business. In the report, we feature Thrivers, or top performing gyms making over $7,000 per month in net income. Stragglers are on the other end of the spectrum, either breaking even or sometimes losing money each month.
When comparing all of the Thrivers, one of their top commonalities is their strong grasp on their finances. Here are three ways the top performing gyms are building a strong financial foundation.
Thrivers Master Their Expenses
We have a hunch that you opened your fitness business to pursue your passion for wellness, not because you’re passionate about finances. However, owning a gym requires more than just passion. If you want to run a successful business that lets you pursue your passion and serve your members, you need to start with a budget.
Managing your expenses and maintaining an average monthly profit will keep your business thriving. On average, Thrivers generate $35,545 a month in profit.
The main driver behind this number is that Thrivers pay more attention to managing their facility costs and payroll. These are two of the biggest costs when owning a gym, and Thrivers pay $5,438 for rent and $7,069 for payroll.
By managing your expenses and streamlining your check-in system, you can optimize your facility space and operations.
Thrivers Have Additional Sources of Revenue
The main revenue driver at a fitness business will almost always be memberships. Thrivers generate 55% of their monthly revenue directly through memberships.
In addition to their focus on selling more memberships, Thrivers do a great job generating revenue from additional sources. By leveraging retail sales, events, and personal training, Thrivers are able to supplement the remaining 45% of their revenue.
Thrivers Charge More
Thrivers provide high-quality training and have created strong communities that warrant their decision to charge more for their services. The median price of an unlimited membership for Thrivers is $179. Thrivers create a pricing plan that reflects the quality of their service, and as they attract new members that revenue adds up.
Remember, you started this business because you wanted to make a difference in people’s lives. Big box gyms can’t provide the level of service and training you can. Be confident in your services and let your pricing reflect that.
Thrivers master every aspect of their business, not just their financials. Looking for other ways to take your business to the next level? Zen Planner is here to help.
We pride ourselves on catering our proven gym management and billing solutions to the particular needs of your gym. Reach out today and book a live demo to see everything Zen Planner has to offer.
Article orginally published June 2018 and updated June 2022.