Build A Better Business Model

Build A Better Business Model

Posted on 26. Sep, 2012 by in Marketing Fitness

Hey Super Trainers,

Yesterday when I touched down at the Austin bergstrom airport I suddenly had to make a quick decision.

Should I take a cab to the hotel or should I be a little more thrifty and take the shuttle?

Decisions, decisions.

Back in the day when I was single and didn’t have a care in the world, It would have been an easy choice. The cab, who has time for a shuttle?

But life has changed.

These days I have a beautiful family and they are the driving force behind every decision that I make.

Let’s look at the facts

Shuttle cost $25 round trip

Cab cost $40 one way

Shoot I rather put the extra $55 towards my little princess’s future.

Shuttle pros: It costs 80% less

Shuttle cons: Have to sit with 6-8 other people

(it’s not like I got here on my private jet ;)

Then I got to thinking

Shuttle = group training in our industry

While the cab is taking a single person to a single destination and making $40 for that trip

The Shuttle is taking 6-8 people to a similar destination and making $150-$200 for the same trip

And check this out, the shuttle runs non stop

The beauty here is that the shuttle’s fixed cost is the same as the cab’s.

More money same overhead = a better business model

Here are some reasons why you must offer group training in your business

Lower “barrier” of entry for the value conscious consumer like myself

It significantly increases the “dollar per hour” earning potential

It helps “control” you overhead

Perfect upsell for “boot camp only” fitness businesses

Perfect downsell for “one on one only” fitness businesses

Your boy Sam,

PS – Austin is now my 3rd favorite city in the US behind LA and Miami

PSS – Seriously you’re leaving a lot of money on the table if you’re not doing group training. Watch THIS video to learn more about the proper group training business model.

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One Comment


28. Sep, 2012

Hey, Sam.

I would love your help please.
Any words of hope or guidance or anything would be appreciated.

I have just posted this into a group on facebook and I’d love your thoughts.

I have an opportunity to own my very own brand new studio.
850sq foot (with a lot of room to grow).
It will be £1000 per month for rent, which is inclusive of business rates, water, electricity, heating, maintenance of the building etc, all those bills are included.
All I’d have to pay for is insurance and marketing (which I need to look into further), but I estimate it would cost around £1200-£1500 a month to run.

I have literally (and I aint exaggerating) zero pounds to my name.
I can however, get my hands on £6000-£7000 (maybe £10000), all of which would be borrowed via loans and credit cards. So I’d be putting everything on the table and risking everything. But this is quite literally my dream and it’s a chance of a lifetime.

There is car parking space for 100’s, room to train at least 10-12 people (at the very least) at a time. It’s pretty much perfect.

I would have to equip it though and I estimate for the basics, DBs, KBs, mats etc it is going to cost me £2500-£3000 and then £2000 upfront for the rent… all of this is before I open the doors obviously.

I would bring clients with me which would equate to around £800 per month, immediately. So I’d only need a few more clients to break even from the get go.
And then it’s me, my own studio (which has been my life long dream) and being my own boss all whilst I can help who I want, when I want and how many I want, however I want to do it!

What do you guys think? I’d love to hear your thoughts on this.
It is my dream and it’s a chance of a lifetime. I would be risking everything, but only a few more clients would equal me breaking even and then everything on top would equal profit.

Go for it – chase my dream and attack it with everything I have and make it work?
Or is it too much of a financial risk?

Huge, huge thanks in advance!


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