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Fitness as a Business Thinking of becoming a trainer or opening a gym? In this subforum we will discuss all areas of the fitness biz.

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Old 06-25-2007, 01:08 PM   #1 (permalink)
gtanak
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Default Going independent?

I have been a trainer for 3 years in a commercial gym, and am thinking of going independent. I have a solid client base that will follow me, however, I guess the main thing is getting out of my comfort zone and taking a risk. Just wanted to know if any other trainers have done this and some mistakes I need to be careful of when starting out training clients on my own. I've already looked into liability insurance, printing up professional forms, and getting info on website design. Any other ideas/tips would be greatly appreciated! Thanks for your time!

Gary
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Old 06-25-2007, 01:20 PM   #2 (permalink)
John Izzo
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First, did you sign a non-compete/non disclose agreement with the club? Managers and owners hate when a trainer decides to leave and "take" their clients with them.

Let me forewarn you...your success in a club-setting is not measure of how you will be out on your own. Those clients belong to the club and if you signed a non-compete agreement that states you may "not work competively within a certain amount of distance from the club" (varies by state). The managment has a right (if they choose to exercise it) to go after your future earnings.
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Old 06-25-2007, 02:40 PM   #3 (permalink)
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John took the words right out of my mouth.

Also, it could wind up being six or one-half dozen of another. Having your own place is good for the ego, but may not be so for the bottom line. Unless the owners are just jerks or are hard to work with due to conflicting philosophies, which can make the work environment completely suck.

But by the time you pay commercial rent, liability insurance, advertising (always need to keep the next round coming in or your current success could dry up on you in a hurry), phone, etc., you will quickly realize that you will make less than 50% by the time you pay all your expenses.

It is a bit of a rabbit hole, and once you enter, it's hard to stop trying to figuring out how deep it goes. Once you have your own place, you suddenly need more trainers if you want to make a decent living. Suddenly you're managing other people. Next you are constantly fixing breaking down equipment. Next thing you know, one slow month will take you 3 months to dig yourself out, or you may not be able to get out, and wind up borrowing more money, forcing you to continue down this path where you may not have intended to go.

I can tell you as a gym owner I have never gone after future earnings from trainers who took my clients with them although I was legally able to since they all sign non-competes to work for me. I rarely have to. Once the trainers were not being managed by me, any gaps in their credibility or reliability suddenly showed up, and most often the client came back within the month. Don't let your ego make this important decision... Don't even take the plunge unless you have the discipline to create a full business plan with pro-formas, a clear break-even point that is achievable in the first few months, and contingincy plans. Plan for the worst case scenario, income-wise, so you don't get in over your head with overhead expenses. It will help you maximize your income anyway, and it is a good way to run a business.
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Old 06-25-2007, 03:51 PM   #4 (permalink)
gtanak
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John and JP,

Thank you for the heads up, didn't even think of that, although I work for a huge commercial chain (I'll let you guys guess which one) they probably won't miss me or my clients once I decide to leave. Also, I'm probably not going to open up a facility since most of my client base are in my immediate vicinity, meaning I can train them at their home (I have invested in some equipment), at parks, tracks, etc. to keep costs down for now. I have consulted with a few small business owners in my area and, yes, I will draw up a business plan as well. Just trying to get as much info as possible on this as I do not want this to be a blind leap of faith. Thank you again for your input!

Gary
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Old 06-30-2007, 05:04 PM   #5 (permalink)
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As someone who had the same mentality and made the same jump a year ago I would definitely caution you to put as much thought and effort into your independent venture before completely leaving your current job. On the surface it doesn't seem like there would be much difference. Great you can go into your clients homes to train them. But what happens when they move on. There are so many facets to running a successful business that get overlooked.

Before leaving the gym I would recommend reading a few different books to get you in the mindset of a business owner. Michael Gerber has a series of books called the E-Myth. I would recommend reading "The E-Myth Revisited" and "The E-Myth Mastery" before even thinking about starting your own company. They both go into the difficulties people have starting there own small business. Studies show that only 5% of businesses survive the first five years with only 5% of that group surviving the next five years. The odds are definitely against the small business owner so be as prepared as possible before making the big jump.

I could go on and on about what to do and what not to do. But instead of taking up lots of space on the forum feel free to email me with further questions. I hope this helps.
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Old 07-25-2007, 02:53 PM   #6 (permalink)
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@Gary:

I think to have a successful fitness business one has to have 1) complete control over the operational basics, which as Jean-Paul says are:

Quote:
Don't even take the plunge unless you have the discipline to create a full business plan with pro-formas, a clear break-even point that is achievable in the first few months, and contingincy plans. Plan for the worst case scenario, income-wise, so you don't get in over your head with overhead expenses.
As well as 2) some way(s) to set your place apart, such as outdoor classes, focus on some age or sex group of the population, some unique training programs, events, or a combination of that.

I think when people choose a place to exercise they ultimately choose a place to develop - also personally. Getting in better physical shape has some very deep mental, psychological and even spiritual side effects / consequences. If your gym can provide an atmosphere that is supportive of this then I think you'll have a higher chance of success.

If this all sounds a bit platonic, here's a good resource for fitness entrepreneurs.

There are many ways you can get knowledge about doing your fitness business better - if you know where to look.


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Old 07-30-2007, 01:40 PM   #7 (permalink)
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Related to this topic I'm looking at bringing some current clients to a local independent gym as an outside trainer.

The work environment at my current workplace is terrible, with 1/4 of the training staff leaving in the past two weeks, broken equipment not being replaced etc... which has caused some discontent among members.

Regarding insurance is the NSCA program the way to go?

Perspectives from those that have done this would be helpful.
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Old 08-09-2007, 01:25 AM   #8 (permalink)
gtanak
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I don't know info on the NSCA insurance program, but I go through trainerinsurance.com
$175 a year and covers basically everything.
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Old 08-09-2007, 08:44 AM   #9 (permalink)
Jean-Paul
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Association Insurance Group also offers extremely affordable trainer insurance.
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Old 08-15-2007, 09:48 AM   #10 (permalink)
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Thanks for the assistance guys - those are cheaper than the NSCA so I'll have to compare the details.
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Old 08-19-2007, 06:00 PM   #11 (permalink)
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I have to STRONGLY back up what Higher Endeavors suggested with the reading of the E-myth books. I am actually pissed at myself that I struggled through 15 painful years before reading it myself.

Then again, I don't know that it would have made as strong an impact on me if I didn't relate to every single scenario he discussed in his books. Gerber has really been in the trenches. It makes me realize just how miraculous it is that I haven't gone out of business on several occasions. I guess I'm either lucky to too stupid to know when to throw in the towel.
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