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PROTECT YOUR BUSINESS

(EVEN GROW IT)

IN A RECESSIONARY ECONOMY

BY MICHAEL SCOTT SCUDDER

emerge when a market shifts: those who fearfully predict the worst and are unneces- sarily pessimistic; those who hopefully wish for the best, believe they can’t fail, and are unrealistically positive; and those who re- spect the fact that they might fail, actively prepare for the worst and strive for the best. Growth comes from clarity, priorities and focused-action.” What follows are some strategies to help your club suc- cessfully shift with the current market:

I

n the book Shift, the author Gary Keller says: “When a market shifts, there is only one thing to do – shift with it. There are three types of people who

your doors (which means you’ve got to track all marketing from here on).

Training

12. Cross-train employees (including gen-

eral managers and active club owners) in as many club jobs as possible. 13. Cross-train fi tness fl oor staff to

Michael Scott Scudder

become group fi tness instructors and vice- versa. (Some of the best personal trainers worldwide are coming from the group exer- cise instructor corps.)

14. Make employees responsible for profi t centres,

Management

1. Clearly defi ne the focus of your business. 2. Determine what can you control and what you cannot

control. 3. Determine your targeted member markets. 4. Manage the atmosphere in your club – every aspect of it. 5. Build consistency of member experience, from the

front door in.

Expenses

6. Trim your building expenses by installing auto-ther-

mostats, low-fl ush toilets and low-water-use showerheads; lower your hot water heater by 10 degrees; lower your heat by four degrees in colder months and raise your air condi- tioning four degrees in warmer months. 7. Reduce your operating hours by 10 hours per week.

Look at your attendance reports to see where to do it. 8. Bid out and negotiate all insurances, contracts, service

agreements and utilities wherever possible. 9. Renegotiate your building lease. 10. Eliminate fl uff and non-productive employee posi-

tions. Hold managers-on-duty responsible for fi lling in at the reception desk during sporadic busy times which occur a few times a day. Cancel single-digit-attendance group fi t- ness classes. Terminate sales employees who produce fewer than 25 membership sales units per month. 11. Eliminate some of the newsprint and other media advertising that is not consistently pulling people through

18 Fitness Business Canada May/June 2009

attendance areas and/or cost control areas. For example, pay group exercise instructors by attendance fi gures; use incentives to challenge front-desk staff to increase mem- ber attendance; and pay general managers in part on business net income. 15. Drive new members to group exercise classes as part of their member integration program.

Income

16. Your best source of income is retention. Think reten-

tion every hour of every day! 17. Sell programs, not just contracted or open-end mem-

berships. Sell short-term trial-use opportunities. People don’t want to commit to long-term in a recession – capital- ize on this. 18. Can you create a club within a club? For example, a

“buyer’s club” where, for a few dollars a month, the member gets discounts on all goods and services purchased within the club. Several U.S. clubs have enrolled as many as 35% of their members in this program. It accomplishes a higher dues-per-member base and higher retail sales. 19. Implement a buy-down for present members to

establish a lower temporary dues rate. Or how about a higher-up-front-fee which scales monthly dues down based on consistency of member use?

Michael Scott Scudder operates Club Management Education & Training Online, a leading Internet-based consulting and training service special- izing in delivery of educational webinars, management training and club consulting. Contact him at 505-514-0294, on Skype at michael.scott. scudder or at michaelscottscudder@yahoo.com. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56