The Business of the Fitness Business

I founded and owned a private personal training studio in one of the toughest markets for fitness/ personal training in the country – New York City. And I did it successfully for ten years. My business model allowed the trainer/fitness professional to put themselves in a better financial position than working for a “Big Box” fitness organization. The trainer is the sole proprietor of his/her book of business. They decide how much to charge, how much they want to work, when they work, and how to train their clients. They are also responsible for running their business, attracting new business, and their overall brand experience.  Where did I come in…I provided a studio where trainers could bring their clients. But, I was more than that to many of the trainers – I was a business counselor, confidante and most importantly, a truth teller. But I’ll get back to this. 

I have observed that most trainers are capable of the “training” part of their business -- getting clients the results they came for. Where I see trainers struggle is with the “business” of fitness.  Many trainers are missing some essential elements of a successful business. For example, every fitness professional should have an accountant that really understands his/her business allowing them to intelligently advise the trainer. They also need a lawyer who can offer advice on a training waiver and help establish the proper legal entity (LLC, sole proprietorship or S-Corp). The trainer needs a separate business bank account, a business credit card and a method to track expenses in a system like Quickbooks or Fresh Books. On the website front, trainers can spend thousands of dollars on a web page when a simple landing page, which can evolve into a website as business grows, will do. In short, it doesn’t matter how small or large the business is – an advisory team who can help navigate the fitness jungle is critical. An advisor can be play the part of mentor and, more importantly, truth teller. How do you find these people…ask other fitness professionals for referrals, take the time to meet and interview these referrals. These are important relationships so don’t take them for granted and don’t settle for advisors you don’t feel comfortable with.

Years ago, when I started out on my own, I was looking at purchasing someone else’s already-established personal training studio. The purchase price was circa $1M. I took my accountant, Jack, with me on a visit to the studio. I met Jack a few years ago as a trainer. I was so sold on this place – it had the right look and feel, right size, right location, etc. When the visit was over, Jack and I went for a coffee. One look at the books, and he said “You can do it but you will regret it.” I was dejected but, somewhere in my head, I already knew what he was going to say. I pulled it together and went on to form Titan Fitness Studios. That same studio remained on the market for years and someone recently made the huge decision to purchase it.  It was someone I knew and with whom I had previous conversation regarding striking out on her own. Unfortunately, however, she didn’t come back for more discussion before making this very big decision. Even though there was an accountant involved in this particular transaction, something went wrong….either he/she didn’t have the experience,  didn’t fully understanding the personal training business, or the time to do a proper forensic review of the books.  This highlights how critical competent advisors, WHO ARE truth tellers, are to help prevent sad endings which, in this case, caused nothing but a bad taste AND a mountain of debt. I can’t thank Jack enough for steering me away from this situation. 

Today, I am consulting and truth telling to trainers and gym owners alike on the business of fitness. I don’t want anyone to else to lose their shirt in this business - - there is enough business to go around and, for all to do well, especially when we take the business of fitness seriously.