Some refer to him as the \u201cgodfather of small group personal training.\u201d<\/p>\n\n\n\n
Since 1992 he\u2019s run Alloy Personal Training<\/a>, and through trial and error, he\u2019s developed a simple model that he now is franchising.<\/p>\n\n\n\n And it\u2019s taking off. In fact, Gym World\u2019s very own Mark Fisher<\/a> loves it so much that he bought a franchise.<\/p>\n\n\n\n Here\u2019s the model that Rick is using to scale to 200 locations in five years:<\/p>\n\n\n\n Ask a gym owner: \u201cwhat is your target customer?\u201d Most will say, \u201cAnyone who is looking to lose weight.\u201d<\/p>\n\n\n\n On Gym World, we\u2019ve seen time<\/a> &<\/a> time<\/a> again<\/a> that the most successful fitness entrepreneurs are incredibly specific about who they serve.<\/p>\n\n\n\n Rick started with his dream customer and dream pricepoint, and then worked backwards to build a concept they\u2019d love.<\/p>\n\n\n\n Rick targets people between 40- to 60-years old who<\/strong><\/p>\n\n\n\n There are plenty of concepts that are fighting over this customer, so here\u2019s what he does to stand out:<\/p>\n\n\n\n Alloys are located in shopping centers where his dream clients shop. This makes it easier for franchisees to \u201cpound the pavement\u201d and develop relationships. Also, being around premium brands makes his brand feel more premium.<\/p>\n\n\n\n Alloy is specific about the language their franchisees use. They want to be perceived as a personal training space, and they want to be anchored to personal training prices. For example:<\/p>\n\n\n\n Alloy HQ invested heavily in architects and interior designers. They want their spaces to feel premium and timeless to their dream client.<\/strong><\/em><\/p>\n\n\n\n <\/p>\n\n\n\n Details matter here. Everything from the color choice, the front desk placement, how equipment is organized, and what light fixtures are used\u2014are chosen with their avatar in mind.<\/p>\n\n\n\n He thinks the current trend of black spaces with hexagonal lighting, which he refers to as the \u201cRussian vodka bar look,\u201d attracts the wrong type of person and will go out of style.<\/p>\n\n\n\n <\/p>\n\n\n\n A franchise with a broken model will never scale. Rick says only 2% of franchises ever make it past 100 locations.<\/p>\n\n\n\n To be a good franchisor, you need to build a good business that\u2019s replicable<\/strong>.<\/p>\n\n\n\n To me, a good business that\u2019s worth replicating is simple and profitable. Alloy is both.<\/p>\n\n\n\n Alloy offers one kind of training, and at capacity, it only requires 2.5 staff members.<\/p>\n\n\n\n Each location caps at \u2248<\/strong>150 members and costs \u2248<\/strong>$350\/mo.<\/p>\n\n\n\n If we do the math, that\u2019s $52,500 in monthly revenue or \u2248<\/strong>$600k annually.<\/p>\n\n\n\n If I had to guesstimate the expenses for an average location, it\u2019d look something like this:<\/p>\n\n\n\n This leaves the owner with \u2248<\/strong>$250k in profit. Not bad for a 1,500-2,000 sq ft gym.<\/p>\n\n\n\n In the words of Steve Jobs,<\/p>\n\n\n\n Simplicity scales, complexity fails.<\/p>\n<\/blockquote>\n\n\n\n Rick has been refining his model over the past 30 years. He said over time, he\u2019s made things as simple as possible, which has probably made him way more money than if he tried to overcomplicate his business.<\/p>\n\n\n\n Most gym owners love tinkering and \u201coptimizing\u201d their gyms. They experiment with new systems, new programs, and different packages and prices. It usually does more harm than good.<\/p>\n\n\n\n Most of us are better served getting out of our own way.<\/p>\n\n\n\n So the question is: how can you make your business simpler and easier to run?<\/p>\n\n\n\n To get the answer, watch<\/a> or listen<\/a> to Rick\u2019s interview on Gym World.<\/p>\n\n\n\n1. Start with your dream customer in mind<\/h2>\n\n\n\n
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Location<\/h2>\n\n\n\n
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Most first-time gym owners cheap out on investing in brand and aesthetics. This is a mistake.
Small investments in the look and feel of your space can lead to large increases in the value of a gym.
Here\u2019s what I mean:
A profitable gym will sell at 2-4x earnings. Let\u2019s say that spending an extra $100k making your space nice allows you to charge $50\/mo more per member.
If you have 150 members, that\u2019s an extra $7,500\/mo or $90,000\/yr more in revenue.
If that all makes its way to your bottom line, your gym is worth $180,000 to $360,000 more, plus you get to pocket an additional $90,000 every year you\u2019re in business.
Sounds like a better return than the S&P 500 to me.<\/pre>\n\n\n\n2. Build a good business model<\/h2>\n\n\n\n
Simplicity<\/h3>\n\n\n\n
To run multi-location well, you need good operators<\/a>, yet most gym owners struggle with this. Alloy uses a fitness recruiter<\/a> to help fill key positions.<\/pre>\n\n\n\n
Profitable<\/h3>\n\n\n\n
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\n\n\n\nLessons for Gym Owners<\/h2>\n\n\n\n
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