Fitness Marketing – Knowing when to expand Q&A Part 1

Fitness Marketing – Knowing when to expand Q&A Part 1

Posted on 29. Jun, 2012 by in Marketing Fitness



[spoiler]
Sam: All right, Ian. You’re up.

Ian: All right. This goes back to what I was talking about before, the extension and growth. My question has to do with what we were speaking about last night, how you should almost downsize. What’s the term you kept mentioning [Inaudible]?

Damien: Shrink.

Sam: Shrink.

Ian: Yeah.

Sam: Shrink and get rich.

Damien: Speaking of that.

Ian: Shrink and get rich.

Damien: Speaking of that, there’s a book and [0:00:24] [Indiscernible] Keys to the Vault.

Male Speaker: I’m sorry. Who?

Damien: KeystotheVault.com.

Male Speaker: Keys to the Vault

Sam: Yeah [Inaudible]

Male Speaker: [Indiscernible]

Sam: You have an order [Indiscernible]?

Damien: I did.

Sam: Yeah, but wait a second.

Damien: But what I’m saying is that [Inaudible] CFO software but when you key in your numbers, you take in the rest of the account and then key in [Indiscernible] profitability per square foot, how much money do you make per square foot. Sam mentioned that [0:01:02] [Indiscernible]. That is the level of detail. You got Walmart. Look at the size of that thing. They know per square foot. So Keith Cunningham – basically just to give you an idea of the concept, he’s the original rich dad from the book Rich Dad, Poor Dad. Keith – Robert Kiyosaki learned from him and he teaches financial mastery for Tony Robbins. He’s on Tony Robbins’ board of directors.

Now with [Indiscernible] he made a fortune in media and then he got [0:03:38] [Inaudible] because you have mobility. You can change and adapt to the market. You look at how long it has taken [Indiscernible]. It doesn’t take them a year and a half meanwhile [Indiscernible]. You look at the animals that die quicker were basically the big dinosaurs.

Ian: Yeah.

Damien: They [Indiscernible] the small ones that were able to adapt. So you got to look at that but he’s talking very broadly [0:02:21] [Indiscernible] financial level of [Inaudible].

Ian: That’s perfect to my question because the question is, “When do you know when it’s a good time to expand or is …”

Damien: It’s probably 75 percent of your hours [Indiscernible]. You’re not going to fill up the minimum [Indiscernible] but then you got to be [Indiscernible] and say, “What’s your cost per square foot?” What’s your return per square foot and [Indiscernible]? That if you go to the next space, you’re a second place, you need your [Indiscernible]. I’ve seen this [0:03:03] [Indiscernible] or whatever. They’re bleeding money all the time and you try to pay for the second one and [Indiscernible] that sort of level and obviously have your systems and knowledge and everything in place …

Neil: So what’s the question again? What’s the best time …

Ian: When do you know when it’s a good time to expand your business and – shrink or expand?

Neil: My respond to that would be – coming back to [Indiscernible] we went from zero to six. Talk about aggressiveness. Virtually five or six months or something like that, right? And one thing being [0:03:52] [Indiscernible] about the boot camp thing that I learned from there is you will know when you have a good goal set and it’s kind of weird because like what does goals have to do with expansion. But I’m the first one to admit this. I really don’t know how to set goals. I think I know. Of course I know how to set goals. I want to make $1 million today, $2 million tomorrow and [Indiscernible] right? Because in Vegas I need the money. But the problem is, is that it’s kind of like if you have a goal, you have an idea, right?

Then again, it becomes all the numbers and stuff like that but for me, what I found through my financial [Indiscernible] because I used to be a CPA a long time ago.

Sam: You’re a cool CPA, man. You have a personality for a CPA.

Ian: You know, they tried to take his soul anyway then he got …

Neil: Yeah, then they put my soul back on.

Sam: Know your why.

Neil: I will tell you right now, people get stuck in the numbers and the numbers [Indiscernible] and you need to know your numbers but find out the numbers that make sense for you.

Forget about OK, I’ve got a 10 percent ROI. Now I could increase this like 25 percent and then my return on equity with my business is going to be 45 percent and now I’m getting [0:05:23] [Indiscernible]. That’s bullshit. OK? What we’re all missing is an emotional attachment to the message. The person is [Indiscernible].

So for example, one of my clients [0:05:36] [Indiscernible] we just ended up having this great conversation. They figured out that the expansion strategy is [Indiscernible] and they put a number on that facility. They’re going to make $100,000 [Indiscernible]. So what they did was they said, OK, here’s everything I can do and I can’t do and if I’m going to hit $80,000, it’s going to trigger my expansion part of my brain because I’m close to that goal because I have a goal to find, right?

And I know whatever I’m going to do more than that, I’m not going to make more than $100,000 in that facility because I have excellent [0:06:13] [Indiscernible]. It’s not hard. You take the number of clients you have, how much revenue you had. Take all the programs you had. You put it on a piece of paper and you can say, “I can make potentially $100,000 at this location.”

Then once they hit $80,000, they said, “You know that? I cannot see the point. I’m doing everything I can. I have time freed up and therefore now I [Indiscernible].” Obviously you need to have exactly what Damien said, the quality of service, all [0:06:45] [Indiscernible]. Just from a broad perspective on – you talk about [Indiscernible].

What is the decision framework I go through to take the right action to get the result I’m looking for? And making sure the quality is important. And it’s a decision framework and I’m sure if you type it up on Google, you can find different ways of decision framework [Indiscernible] and have a decision framework in their mind and again, just [0:07:14] [Indiscernible] to get profitable results and you’re crazy. You’re never going to get that. If you don’t have a decision framework, no matter what you do, you’re going to be shooting [Indiscernible]. Twenty percent of the time you’re going to be right. Eighty percent of the time, you’re going to be wrong [Indiscernible]. I was wrong. We made the wrong mistake, right?

Sam: No, no, no.

Neil: It wasn’t – I’m saying that because I’m trying to make a point in [Indiscernible]. I learned after the fact we should have had some framework. We were [0:07:46] [Indiscernible]. Sam, me, Craig, Dustin. I need not say anymore, right? [Indiscernible].

[Indiscernible] around four guys. Boom, we went into it, controlled it. Now we want to expand but we didn’t have a decision framework. I’m not saying write the freaking thing down on a piece of paper from A to Z and you put in the blanks. Decision framework is simple. It’s how much revenue I’m going to make. If I’m not making it, I got to get my ass in gear and figure out ways to make that revenue. These are all the possibilities and if I hit certain trigger points, I know this time. That’s a different question whether you want to open up another gym or you want to call someone or you want to buy an equity stake in something, if you want to trade an information product because those require a different level of marketing skill set.

You see, the other problem is that I’m finding in my business sometimes I’m a total idiot. When I spend, I’m doing things that I have to restart with a new process all over again [0:08:55] [Indiscernible]. OK?

Because if I want to go and get an equity stake in the business, it’s easy for me to do [Indiscernible]. No, no, no. That’s not me. What I do is oh, I will help you with strategy. If you have a question, call me 24/7 and I will do that.

If you want to look at finances, I hate finances. I used to be a CPA, right? Weird. I don’t even want to look at it anymore. They don’t go and look at the numbers. I look at the numbers for my staff which I do very well and I know how to analyze them. Then I go look at the numbers that someone did. What am I doing? I need more skill sets to freaking expand and I’m creating problems. Trainers see this all the time.

OK. What do you want to expand on? You know what today? I think I’m [Indiscernible]. All right? And don’t get me wrong. Do you know what it takes to do that? I’m not saying don’t do it. Outsource the thing and pay for it and get it done or I’m going to create an information product. So now you don’t go shake the client’s hands, right? But what are you doing? You’re working your ass off. You’re freaking – how do I …
[/spoiler]

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One Comment

Armando

29. Jun, 2012

What a great video!
Great question @Ian!
@Damien loved the wisdom shared. I find that knowing those numbers are crucial. Loved how you broke that down.

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