TABLE 1
Challenge yourself: Develop specifi c objectives you have for your club over the next 1-5 years, then determine what actions you want to take in order to accomplish those objectives. Once you have defi ned a path, don’t forget to measure your progress!
Perspective/Strategic Objectives
Financial Perspective
Ways to Monitor Progress
Gross Revenue Revenue Growth Operating income Operating Income %
Customer/Member Perspective 3 Member Perspective
Annual revenue per member Account Attrition Rate Total members
% Members personal training Strategic objectives in this area are
some of the most common club objec- tives. Improvements here directly impact fi nancial performance and overall perfor- mance of a club (see Table 1). But how does a club know if it is ac-
tually improving the member experi- ence? Measuring attrition can provide answers, but also look at other metrics such as “sales per member amounts” and “total members over a period of time.” When these trend upwards, your initiatives are working. Member experience is a very complex
objective to measure, although well- trained and engaged staff will often ac- complish the heavy lifting in this area. Other initiatives in this area could in- clude running contests with prizes or of- fering perks, such as a free smoothie day (that you may have arranged in a co- sponsorship with another company).
4 Financial Perspective Strategic objectives in the previous
three areas have a strong cause and ef- fect relationship with fi nancial strategic objectives. For example, increasing cost effi -
ciency is a strategic objective that can be easily measured by tracking the per- centage of revenues that are retained within the business. Initiatives in the fi nancial area can be
as simple is reviewing monthly fi nancial reports and holding monthly meetings with key staff to review the expendi- tures of the business. FBC
Billy Katelnikoff ,
B.Mgt., CA, is owner of Power Forwards Chartered Accountant Firm which pro- vides chief fi nancial offi cer services with an em- phasis on improving profi tability and making key organizational decisions for privately owned fi tness clubs in Canada. Contact him at www.
powerforwards.ca.
Internal Process Perspective
Net loss existing members Personal training slots trained Total net new members Gross new accounts
Operating costs as a % revenue EFT %
Organizational Capacity Perspective YOUR INDUSTRY, YOUR DATA, YOUR REPORT
Gross Revenue to staff costs Strategic partner/Personal Trainers
STAY INFORMED! STAY INFORMED!
YOUR INDUSTRY, YOUR DATA, YOUR REPORT
The IHRSA Canadian Health Club Report (48 pages) is available for purchase at ihrsa. org/research-reports in PDF format for IHRSA members ($69.95) and non- members ($129.95). Fitness Business Canada readers receive a 20% DISCOUNT: enter code CANADA20.
Download a FREE 8-page excerpt at
fitnessbusinesscanada.com
The IHRSA Canadian Health Club Report (48 pages) is available for purchase at ihrsa. org/research-reports in PDF format for IHRSA members ($69.95) and non- members ($129.95). Fitness Business Canada readers receive a 20% DISCOUNT: enter code CANADA20.
Download a FREE 8-page excerpt at
fitnessbusinesscanada.com May/June 2014 Fitness Business Canada 37
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