In the business world, any potential financial outlay always comes down to one question: what am I getting in return? When creating a business model for your gym or health club, it is key to focus the plan around making sure you are creating the right business plan to maximize your ROI, or return on investment.
As fitness and wellness developers, Gro With Us has worked on countless projects of all sizes and models. We know that nothing is more important than making sure you maximize your return with such a significant investment. Here are our top tips on making sure your business model is best built to maximize your ROI.
- GRO Tip 1 – Your price point has to be based upon services you’re providing!
- GRO Tip 2 – You cannot be a low-price model health club w/ classes! You would need over 3000 members! You’ll be losing money on these services.
- GRO Tip 3 – 101 Training cannot exceed more than 33% of the value of the training session.
- GRO Tip 4 – Small group training and large group training should be valued at a direct proportion to class size, ideally price-per-person based.
- GRO Tip 5 –When offering towel service, the process has to be streamlined! 3rd party towel service is NOT RECOMMENDED!
- GRO Tip 6 – What are the benefits of leasing equipment? It can be a tax write-off!
- GRO Tip 7– Should you buy equipment? Buying is accounted for as an amortized cost.
- GRO Tip 8 – Ask yourself: How cannot having enough money affect your ROI?
Like owning any other business, there are plenty of factors to consider when owning a gym or health club. Make sure from the very start your business plan is sound and is right for your location, and also make sure that you are overly prepared for any costs you will face when seeking funding. These are tasks that are fundamental for your success, and Gro With Us recommends not undertaking them alone.