Do you want to take your gym business from “barely surviving to thriving fully?”
Renowned entrepreneur, author, and CEO of Acquisition.com, Alex Hormozi, can help you grow a profitable and sustainable business in the fitness industry with his proven formula and tips.
I’ve got you covered if you want to know what he is doing differently to increase sales and income from existing customers and keep clients longer.
Alex Hormozi: The Fitness Guru
If you missed it, former gym owner Alex Hormozi faced a significant difficulty as he needed to be more knowledgeable about acquiring, serving, and retaining customers profitably.
Eventually, he set out to learn from several gym owners by having in-depth conversations with them. Alex methodically experimented and eliminated all the issues that plagued his fitness centers.
He believes that businesses in the fitness industry must invest in learning more about their ideal customers, ride the virtuous cycle of high pricing and grateful customers, implement a simple method of billing to double their revenue, and more!
Even if your gym or fitness center is at capacity but still losing money, you can increase your profits by implementing some of these strategies. Less time and effort will be spent experimenting and making mistakes if you stick to an approach that has already been proven effective.
With that, here are some lessons from Alex Hormozi to scale your gym business to the next level.
1. Supplements are the Missing Piece to your Gym’s Success
In a recent talk, Alex Hormozi focused on how selling supplements is the key to future-proofing your gym. Without it, most gym businesses will perish as the lead cost will only increase.
He has encountered a lot of business owners who are adamant about adapting to sell supplements– but he specifies that this cannot future-proof the business. Competitors will only beat you into it at some point.
So, how does a gym owner turn supplements into a money faucet?
Hormozi believes that people will pay you twice as much money for supplements as they do for fitness. Why? Simply because they value them more. Supplements are easier to sell because your customers pay more for them than fitness, and they stack on top of what you’re already selling. Give the people what they need!
2. Do a Competitor Analysis
Hormozi also suggests looking at the market leaders in the fitness industry to learn how they engage their customer base. What specific language, branding, or target audience are they utilizing to attract customers and drive revenue?
There’s no use in starting from scratch. He stresses the importance of fine-tuning a product or service to a specific market.
Consider how your business operates and ask:How can I streamline this?What would be the simplest way for me to accomplish this?How can I achieve this with the fewest resources expended?
Although it may seem intuitive, Hormozi has found that efficiency is frequently disregarded. If you can locate your target market and perfect the fundamentals, generating revenue from your gym business will be easy.
3. Satisfy and Monetize your Customer Needs to Dominate the Marketplace
The more money you make from each consumer, the more you have to put toward advertising and attracting new ones, according to Hormozi. The more money you make from your consumers, the more you can invest in providing excellent service to them; as a result, you’ll be able to help more people!
A successful entrepreneur knows how to outperform the competition by attracting customers more interested in his company than his rivals.
4. Change Your Mindset
You must realize that you need to alter your perspective on managing a fitness business. The shift in focus now needs to be from providing online group fitness classes to providing individual training services.
In short, you need to be flexible in catering to the demands of your customers.
What you’re selling is now worth the same as one-on-one instruction for a small group at a fitness boutique or significantly less than what you could earn as a personal trainer.
5. Accountability makes the Difference
Holding members accountable is the key to setting your company apart from the competition. It’s crucial to update your group members at this time constantly. You are responsible for ensuring they stay on track to achieve their health and fitness objectives. This sets you apart from hundreds of competitors who also provide fitness programs online.
6. Each Member of Staff needs to Generate Revenue
Everyone on your team should be responsible for something that directly contributes to generating money for your company. Some roles to consider are planning and leading online classes and making marketing content around this.
Any extra workers, however, should spend at least half their working hours on the phone, either making final follow-up calls on old leads, making new ones, or setting up appointments with new ones.
7. Offer Flexible Programs
Even after gyms reopen due to the eased restrictions, more people will choose to spend their time online due to its convenience. A larger audience will be interested in visiting a studio, though. It’s going to be like this for a while, so get used to it. Only hold off once things improve or return to normal; you’ll still need an online offering.
8. Perfect your Pricing Power
To build a sustainable company, you need your customers to place the same value on your product and services.
Hormozi warned that you might never make a sale even if you believe your product is worth $500 if the customer only sees it as worth $100.
A product’s perceived value to a customer may be more important than the actual value it provides. Without altering the core offering, the corporation can attract new customers by providing new perspectives on the product.
Reaching the optimal balance between charging a fair price, adding a profit margin, and satisfying customers by going above and above is the key to successful pricing. You should run tests with multiple price points, gather consumer feedback, and examine what works for others in your niche.
9. Choosing the Right Name
Hormozi believes picking the proper name is the most undervalued component of running a business and scaling it to be as profitable as possible. Consumers’ impressions of your brand will be largely formed by the names you use for your promotions, products, and brand.
In the same scenario when the product hasn’t changed, increasing conversion by merely giving the promotion a catchier name can triple or quadruple the sales. The strength of a brand can be shown in its name!
Gym Launch, Alpha Pak Stack, and Done For You Meals are just a few of the product names that Hormozi has used in the past (DFYM). He stressed the need for a catchy and easy-to-remember name, noting that this can be achieved in several ways (including through rhyme and alliteration).
10. Enhance Your Offer
So, how do you make your product/services more appealing to your target customers? Start by incorporating bonuses, limited availability, and a sense of urgency.
Hormozi advises:”You want the customer to believe they are missing out if they don’t buy your goods right away, no matter what.”
If you include bonuses and guarantees in your offer, customers will feel more secure in their purchases. They will be assured that their money is in good hands.
So, if you’re looking to increase your sales and scale your business, start looking into instilling a sense of urgency in your customers. Stress the need to sign up for gym memberships prior to summer break.
11. Focus on Customer Service
One of the first steps toward expanding your business is prioritizing customer satisfaction. When clients have a negative interaction with your staff, they won’t return. It takes multiple happy customers to make up for one unhappy one.
Putting the customer first and providing excellent service is a way to increase repeat business and build brand credibility. Alex prioritizes satisfying his clients and keeping them as customers through effective marketing and follow-up. He has expanded his businesses to great heights by keeping his existing clientele happy.
As a result, you should evaluate your current approach to customer care and make any required adjustments so your company can provide the highest quality services possible.
12. Build Your Online Presence
In today’s world, your online presence can either make or break the success of your gym business. Most of your customers conduct their research before committing to a purchase.
As such, it would be best to set up your website with enough information about your company and offer. Remember to include contact details, reviews, and a statement of purpose.
Establishing your online reputation allows you to advertise your brand and reach out to more people in your target audience. Maintaining an active presence on the internet can build trust and loyalty among your client base.
13. Enhance Your Marketing Efforts
It’s no secret that marketing is crucial to your business’s success. The right marketing strategy helps you increase your sales and build good customer relationships. You can also develop the reputation of your brand further.
Additionally, marketing allows you to communicate the products and services you offer better. As a result, you can scale your business further.
If you’re looking for good marketing strategies, consider the preferences of your customers and monitor which content gets the most traction. Doing so will guide you in the right direction.
14. Creativity and Passion
If you’re a creative person – then you’re in luck. You can leverage your creativity to build your scaling roadmap. As a creative person, you can view things in a different light while solving various problems in your life and business efficiently.
Alex Hormozi found his passion for fitness at an early age, having been into bodybuilding during his teenage years. This passion paved the way for Gym Launch, which serviced over 3,200 gyms and helped 43 gym owners become millionaires in under three years.
15. See Mistakes as Paths to Success
If you’re an avid Alex Hormozi fan, you’ll know that he shares painful lessons with other entrepreneurs, so they avoid making the same mistakes.
One thing I adore about him is that he encourages other people to see failure as a learning curve. Making mistakes is natural. If anything, it’s a key component to achieving success. If you stumble, do your best not to let this setback bring you down. Even the most successful entrepreneurs have their fair share of pitfalls.
To scale your business successfully, you will need to take risks that may result in loss. Given that you learn from your mistakes, this will guide you toward growth and development.
16. Perseverance and Goal Setting
As an avid Alex Hormozi follower, perseverance and goal setting are two of the main pillars of his successful gym business. He believes in the value of long-term goals, which he cites as the reason for his fast growth and success. Below is a simple formula to follow for goal setting.
Before:What problem are we solving?What’s the hypothesis? If I do X, I think Y will improve.How do I measure X (activity)How do I measure Y (output)
After:Did I do X?If so, did Y happen?
17. Give Back to the Community
Alex and his wife are associated with various charitable institutions all over the country– given the couple believes in the value of giving back. As they scale their businesses to the next level, they also motivate other people with their real-life journey to success.
Take Your Gym Business from “Barely Surviving to Thriving”
Building a successful gym business takes a lot of work. If you want to achieve success, you will need to have patience and hard work in your endeavor.
Fortunately, you don’t need to start from scratch. Successful giants in the fitness industry, such as Alex Hormozi, share their golden nuggets to help you scale your gym to the next level.
Proven tips and tricks, such as improving your marketing strategies, providing more value to your customers, and choosing the right business name for your offering, will go a long way.
Remember to apply the tips I’ve compiled above, as these will help you build a sustainable gym business empire and scale it to its full potential.
Best of luck!
(Related article: 6 Expert Level Demand Generation Best Practices)