The business side of the personal training business By Robert W. Patton, FACSM
Personal training is booming!!! • Membership growth at 10%/ yr in clubs • Personal training is top growth program • There are 55,000 personal trainers in clubs • Home based fitness growth at 15%/ yr • Personal training is penetrating this market • 75% of our population is underactive; 69% of them want to start exercising • There is a huge untapped market!!
Working with students/interns preparing for personal training careers
The business side of the personal training business • Gearing up for your business • Planning for your business • Launching your business • Keeping your business afloat
Gearing up for your business • Searching your soul • Getting the right credentials • Finding a good mentor • Getting good experiences • Walking the walk
Good things 1. Impact 2. Variety 3. Flexible schedule 4. Freedom 5. Growth 6. Good working environment Bad things 1. Money isn’t great 2. Work schedules 3. Travel time 4. Lug equipment 5. Wear different hats 6. Financial risk Are you cut out for this?
Credentials • Formal education • Degree or non-degree programs • Certification -- beware! • Generic vs specific; national vs local • Memberships • ACSM, ACE, AFAA, NSCA, etc. • Continuing education • Work experience
A good mentor is critical to success • Can be a teacher, employer, colleague • Should develop a master-apprentice relationship • Will accelerate your learning curve • Will shepherd you through your career development
Good experiences are important! • Find the right setting early • Find that mentor early • Hold out for a good job • large facility • small facility • Avoid job hopping
“Walking the walk” • Practicing what we preach • Are you actively training for something? • Is your body composition OK? • Do you eat healthy meals? • Looking the part • Do you dress professionally? • Is your grooming up to par? • Is your posture acceptable?
Planning for your business • Doing your homework • Figuring out who’s going to be the boss • Finding the best location • Figuring out how much it will cost • Hoping for the best; planning for the worst
Market Analysis • Industry analysis • Trends, issues, technology, political and economic forces impacting the industry • Local market analysis • Demographics and psychographics • Competitor analysis = niche analysis • Clientele, equipment, facilities, fees, programs, services, personnel, etc.
Mission Statement Denton Country Club Fitness Connection is committed to providing outstanding adult fitness and nutrition services in a safe and effective environment while empowering clients to enjoy high level health, wellness, and improved quality of life.
Business structures • Sole proprietorship -- you are the boss. You also have all the exposure. • Partnership -- you share the leadership. You also share the exposure. • Corporation -- you are probably not the boss. You are protected from much of the exposure to problems. • Note: Get help with business planning.
Large Commercial Facilities • Advantages: • Good equipment, available client pool, possibly reduced liability insurance • Learn business systems (accounting, etc.) • Disadvantages: • shared revenue with club • reliance on member referrals • restricted growth
Residential facilities • Includes homes, condos/developments • Advantages: • low or no overhead, nearby referrals, higher percentage of fees retained • Disadvantages: • frequently inadequate equipment, travel time, program enrichment challenges • Limited market penetration (10%), fewer training hours per week
Small private facility • Advantages: • Freedom of schedule, little travel time, nearby referrals, increased percentage of fees retained, more training time available • Disadvantages: • Increased overhead, increased liability, more management and operational responsibilities
Capital needs for personal training • Start up • Operating • Reserve • Note: Break even analysis is important!
Break-even analysis INCOME PROFIT EXPENSES $ LOSS BREAK-EVEN POINT TIME
Launching your business • Marketing ideas for startup • Insuring against disaster • Keeping good records • Working with good people • Getting good equipment • Setting and collecting fees
Start up Marketing Ideas • Position your business -- name • Business cards • Capability brochures • Offer targeted services • Offer enrichments to core services • Promote your business • Speaking, writing, selling
TYPES OF INSURANCE Property and Casualty Insurance: Building Contents Liability (Independent Contractor, Event) Business Interruption Crime Auto Umbrella Liability Employee Insurance Workers’ Compensation Group Health (Health, Cobra) Life
Essential Records • Member records • Medical history, waiver, testing, contracts, goals, workout data cards • Financial records • Billing agreement, receipts, statements, tax records • Miscellaneous records • Payroll, equipment, legal, insurance, marketing, safety, maintenance
Working with good people makes life and business easier • Clients • Qualified by income, commitment • Convenient to your business facility • Partners and employees • Credentials and experience • Integrity and dependability • Work ethic and follow through • Service mentality and people skills