Fitness Marketing – Knowing when to expand Q&A Part 2

Fitness Marketing – Knowing when to expand Q&A Part 2

Posted on 30. Jun, 2012 by in Marketing Fitness



[spoiler]
Neil: All right? But what are you doing? You’re working your ass off. You’re freaking – how do I put this content together? What do I say? You’re expanding in all the wrong ways because if you’re not building on your strengths, you’re actually hurting your business because – there’s nothing wrong with learning new skills.

You want to spend your time with your family or do you really want to know [Inaudible] so just to finish it, you know that it’s right. I know that it’s right for me to expand. It’s when our [0:00:31] [Inaudible]. I can do it. As Eben Pagan would say [Inaudible] you can’t do it at all because I learned this concept to make the decision framework.

So if you can’t put it in the [Indiscernible], my business can make 10 – $100,000 and under 80 percent capacity and therefore I need to do something [Inaudible] spend more time with my family. Then you have a problem. You need to [Inaudible] and once you get the decision [0:01:03] [Indiscernible], the second thing was expansion and very important is what do I expand to.

Another location is something – you got all the methodologies in those years of training. You don’t need to learn those skills, right? You’re making money but if you’re going to expand, you’re creating an information product, holding [Inaudible] I’m not saying that it’s [Inaudible]. I mean that’s [Indiscernible] and we will even talk about that but you got to be crazy or insane because you’re not expanding anymore. You’re actually [Inaudible].

If you think about it, you [0:01:37] [Inaudible] you have to give up a whole lot of stuff to get it, right? And if you’re only building one [Indiscernible] and you’re willing to give up all your time to expand to the new business, you’ve got to know that you’re going to take a big hit in your business, right? So the question is, “Is it really worth it?” I can take your existing skills to help you expand or [Inaudible] your territory. It’s really going to kill your business and I see the best problem everyone has with my SEO clients is that they’re expanding in all the wrong things. They’re expanding in building products, building technology.

[Inaudible] drives me crazy because now they’re expanding in the sense that I’m going to get some of the traffic and take over the world. You know what it takes to go and manage five websites? That’s a stupid example but just to give you a point, I do this all the time. I take on more than I can handle and I told this to myself [0:02:35] [Inaudible]. I’m going to expand when I know this is the [Inaudible]. I have reached my limit. I’m only going to take on certain number of SEO clients [Inaudible] and then I’m expanding on business equity only on the basis that I’m going to come and do traffic and lead generation. And if I can’t do that, I don’t have to learn anything new, you know? Then I can expand profitably first and I can spend time with the family.

[Crosstalk]

Sam: Well, from the beginning of time to 2003, there was so much information. 2003 to 2008, information [Indiscernible] so there is no way your [0:03:31] [Inaudible] every single thing and if [Inaudible] things like Elance, Fiverr, things that you can go outsource and people who – that’s what they do for a living. We can’t go sit behind a computer [Inaudible].

You can’t sit behind a computer and try and learn everything out there. So you got to figure out what is your strength and I was a business owner and we believe it’s all about relational. This is something that a computer robot can’t do. They cannot connect at an emotional level. We need to meet people. We need to shake people’s hands and not hide behind the computer and outsource all that crap and go get a [Indiscernible]. I mean you sit right on there. If you look at Jeopardy, who’s like – you know, [0:04:26] [Inaudible] who’s like the best – who’s the all-time jeopardy champion?

Damien: The computer.

Sam: You saw that?

Damien: Yeah.

Sam: They build a computer and they build a [Indiscernible] champion of all time from Jeopardy and it’s a computer and the computer [Inaudible] which means that whatever information you want is out there. You can’t process it so you might as well build a team and build that kind of stuff and you focus on big strategy. As far as expansion is concerned, like I said before, I look at it as is it worthwhile first.

Now, I also look at it another different way. Expansion is different from expansion. Let me tell you what I mean by that. You can have an expansion between people [0:05:25] [Inaudible] and get a whole new facility. I got to pay $10,000 of rent, this and that or you can say [Inaudible]. You know what? You’re going to try something out and if it doesn’t work, worst case scenario, you lose 500 bucks or you lose 1000 bucks but if it works, the upside of that might be 10 grand a month.

Now what do you have – what is the gain to lose ratio on that? What do you have to gain? What do you have to lose? In Chicago, we expanded a little faster [0:05:57] [Inaudible] but we didn’t lose like $100,000. It was like we tried it out. It didn’t work. OK. Now we consolidate but if it didn’t work – we tried out six locations. Four of them [Inaudible] really, really, really good and four not so good but [Inaudible] we didn’t put our money on. At the most, 500 bucks a month.

Now the ones that did make it [Inaudible] and we’re making six figures. Do you see what I mean? So what is that ratio? What is the risk to reward ratio? If the risk to reward is a really high risk, then let’s try it.

Damien: Know your numbers [0:06:50] [Inaudible]. If you don’t know the score, you can’t tell the numbers and you lose [Inaudible]. As Sam said, [Inaudible]. So you got to have some way of keeping your relationship with those people. And to do that, is there a market there? Is it the same sort of location as where your current one is? Have you got access to your schools or [Inaudible]? Have you got access near the [0:07:37] [Inaudible]? Is that area in the same [Inaudible] territory that you have there? What’s your competition? Who’s your competition? Who’s direct? Who’s indirect competition? [Inaudible] how many minutes with that location do people have to drive to get to that? Is it far away?

So look at all those different things and I looked at three different locations in town and there was no [Inaudible]. So now I’m thinking that, OK they’ve got [0:08:14] [Inaudible] 10-minute walk [Inaudible] gyms around the area. So you’ve got [Inaudible] and here’s something there [Inaudible].

We only came to look at the location through the day but [0:08:49] [Inaudible]. So you would have to go there and look at what’s the traffic you’re [Inaudible]. Go get their locations at multiple times during the day because you don’t know when [Inaudible] in that area [Inaudible] like basically keep your [Inaudible].

[/spoiler]

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3 Comments

Kaiser

30. Jun, 2012

Neil is so sharp and on his game – love hearing this guy talk – looking forward to hanging with him in August at the next mastermind. (PS still kicking myself for missing the Vegas one)

7Figure Sam

04. Jul, 2012

@Kaiser: Next Vegas retreat/mastermind will be EPIC. don’t miss it. I talked to Mayweather’s people and they confirmed that Mayweather and Pacquia will fight next year. Thinking of having it around the same time. We must go to the fight

Odhran

06. Jul, 2012

Hey dunno if its just me but this is linked to the PA part 2 not expansion part 2 when I open it. Just thought give ya heads up in case is general error and not just on my computer.

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