What I love about a gym business model is that opportunities are abundant.
Whether you are just starting out or you've been in business for years, there are always opportunities for gyms to discover hidden profits that can be found.
One of my business mentors, Jay Abraham, talks about the concept of Geometric business growth.
This concept is a powerful concept, and it highlights just how many opportunities there are to improve the profitability of a gym quickly.
A gym has so many little leverage points that make it easy to unlock hidden profits in your gym quickly.
Let me explain the concept of Geometric business growth.
If you improve multiple areas of your overall business system, then it has a geometric or exponential effect on your profitability.
For example, if you increase the number of leads, you generate each month by 15%, then increase the conversion rate of those leads to sales. Then if you increase the average revenue per month of those members, you will have a compounding effect.
This thinking can be applied to so many areas within your overall business system.
Here are just a few
- Increasing the number of people that see your Facebook ads
- Increasing the number of people that click on your Facebook ads (conversion rate)
- Increasing the number of members that refer to friends and family members
- Increasing the number of members that purchase a higher-level membership
- I call these leverage points as little improvements to these areas can add up to massive geometric improvements in your bottom line.
You need to know where to find these leverage points (or be shown) to exploit them.
If you start to brainstorm about all the possible leverage points in your gym, you will soon start to see an abundance of opportunities for improvement.
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