In this months edition of our tips page we would like to answer a common question that comes up when people see fitness businesses close. “Why do so many small fitness businesses fail?”
The fitness industry is a very competitive industry. There are huge numbers of people who think it would be fun and exciting to be a part of it. When health clubs post help wanted ads for any available opening in their club they typically see hundreds of applicants apply. This same type of enthusiasm is also seen in the opening of new businesses. The fitness industry is also very vast. Fitness can be thought of in a wide variety of ways: running, yoga, bodybuilding, spin classes, tai chi, boxing, and many others. A potential business owner must be an expert in their chosen area before considering making a business venture out of it. One of the biggest problems that many small fitness businesses face is the reality of doing business with landlords, insurance companies, advertising agencies, repair companies, lawyers, and many other business related contacts they will have. Many fitness enthusiasts are great at teaching a class or training a client but they have no experience negotiating a contract, or designing a plan to advertise, or building a network. These skills are critical for a business owner to get customers in the door to experience the product they need to sell. Another big problem that fitness business owners have is the failure to understand the ever changing motivations of their customers. When it comes to exercise most people can only stay motivated for a short time and then quit or lose momentum on their fitness routine. A fitness business owner must study the trends within his/her own business and all of the fitness trends in their city and part of the country. A good business owner is ready to handle the ups and downs of client motivations. Another big issue that many fitness businesses face is a failure to stay fresh in the eyes of their customers. They run their gyms into the ground with a lack of maintenance. Inattention to condition of the space they lease. Poorly maintained exercise equipment. Failure to keep the areas clean and neat. Customers eventually start to look elsewhere for something better. With new businesses opening all the time a fitness center must always remember the value of each person who buys their product. Another problem that many fitness businesses face is getting themselves too deep into a financial business plan that over extends them. People who love fitness are usually optimists but in the business world you need to be a realist. If your rent is $12,000 a month and you are selling memberships at $20 a month you’d better have some outstanding sales people selling every day of the week to cover those numbers. You’d also better have enough potential customers who need your product to sell those memberships to. Most small business owners want to believe everyone will love their product and it will easily sell. This is not the reality of the modern business world.
These are just a few reasons why fitness businesses struggle. V.I.P. Fitness is proud to have over eleven years of dedicated service to the Las Vegas market. We have seen many other fitness businesses come and go in our time here. We have the knowledge, expertise, enthusiasm, business skills, and realistic management to be here for many years to come. We’d love to meet you and show you why our customers love our service and continue to support it year after year.
If you have any questions about anything you’ve seen on our site or to schedule a consultation or tour please call: 702-405-0618