Understanding The Industry

I’ve explained to many of our associates that being in the fitness business is like playing hardball, not city league softball, where everything you do counts towards your success. An old friend told me, “the fitness industry is one of the most challenging businesses to succeed

The fitness industry has continuously operated on three basic premises, Sales, Service, and Cleanliness. However, to master these three, you need first to build your facility on a solid foundation,and for many of us, that means an excellent commercial lease, a place you can call home to your business, and a place you can hang your hat long-term. 

It has always been my opinion club owners do not get what they deserve; they get what they negotiate! Many landlords across the country may welcome a discussion about lowering your rent, offering you a rent concession, or possibly renegotiating your lease. However, there are no guarantees. Remember this one important point before you visit your landlord - You wouldn’t golf for money against the clubhouse pro, why would you negotiate your lease against a seasoned realtor or landlord who negotiates leases every day for a living? Get professional help. 

Now let us move on to the three basic premises that our industry has functioned around for the last fifty years or so, Sales, Service, and Cleanliness. What are they and how do they work? 

Sales - The club industry will routinely experience cycles where members flow into the clubs as if it were high tide; and other sparse times when we’d give anything to get a prospect. Every potential member is of great value to your club. Your actions (Attitude) have a big impact on your success, so be ap-proachable (People Skills), provide excellent service (Technical Knowledge), be a team player, take pride in your work, and most of all, know your product (Selling Skills), and you will likely succeed. In addition, a well-thought-out formula for getting the guest to register, how to give a proper tour, present a non-confusing price presentation, and knowing how to overcome objections are as important. 

Service - Effective service begins immediately after the sales presentation, when you call or write to say, “thank you” or schedule their first work-out. Remember, a long-term member or customer is more important than merely closing a sale. Research shows it costs six times more to attract a new customer than it does to keep an existing one. Beyond this, there are several effective ways for you and your staff to follow up that ensure your fitness facility is always on the customer’s mind. Focus on retention, not just making sales.

Cleanliness – Your members are picky, and they should be. Coordinate general cleaning, maintenance, and repairs of your facility like clockwork. There’s no excuse to have a dirty, broken-down facility, one that your members will talk about to their family and friends.

To learn more about GFA and the valuable resources it provides for this growing and challenging industry, be sure to visit many of the other categories on this site.

Signing a Lease without Losing Sleep

13 Lease Clauses that can get you in trouble, do you know what they are?

I’ve explained to many of our association members that being in the fitness business is like playing hardball, not city league softball, where everything you do counts towards your success.

Each year across the country, over ten thousand fitness centers attempt to negotiate a new lease or exercise a renewal option – with several thousand-club owners negotiating a commercial lease for the first time.

Think about it . . . you wouldn't golf for money against the clubhouse pro, so why would you negotiate your lease against a seasoned landlord who negotiates leases every day for a living?

It has always been my opinion, club owners don’t get what they deserve; they get what they negotiate!

Think about that for a minute.

One of the most frequently recurring problems encountered by the Global Fitness Association Team is when a client calls with problems that have arisen from their lease.

There are 4 times in your business life when you may need help:

1. Signing a lease for the first time. Leases favor the landlord, and your lawyer will check only the legality of the lease, making sure that the legal terms are correct. However, you can do better, a lot better if you understand the game.

2. Lease is up for renewal. Instead of just signing and agreeing 100% to the landlord's terms as written in the original lease, why not try to save money? Once again, you can do better, a lot better if you understand the game.

3. Landlord is not performing. Has your landlord or property manager let you down? Have repairs and maintenance been neglected around the building or shopping center? i.e., roof leaks, parking lights, potholes, and other items the landlord is most likely responsible for? Once again, you can do better, a lot better if you understand the game.

4. Challenging business climate? Has the economy forced you to be late on your payments? Is your landlord growing impatient and preparing to evict you? There are many ways you can successfully negotiate with your landlord if you understand proven strategies and techniques. 

5. Contemplating closing your business and throwing in the towel! You have a huge liability and exposure on the remaining term of your lease. You’ve heard of the nightmare stories, well, don’t be fooled by your landlord and get the help you need today.

While showing you how to successfully negotiate with your landlord, Global Fitness Association can put your mind at ease with our proven track record. To receive a copy of the 13 Lease Clauses that can get you in trouble, email me at getgymresources@gmail.com and I will promptly email you a copy.

Don’t Be Clueless

It never ceases to amaze me when talking to business owners about marketing and advertising they always complain about their response rate and not the person that prepared the marketing message. Why the consistent remarks, I wondered? Was it because they didn’t understand the basics, or were they just too thickheaded to understand how branding and advertising work?

In today’s market place, businesses want instant results to their marketing campaigns, but seem to forget that branding and advertising are just like dating. Yes, dating! When you start dating you get to know the person over time, don’t you? That’s the same approach that should be taken with consumers when you are trying to introduce your products and services to them.

Businesses have to constantly and consistently put their name out there. Show their audience they’re alive. So run the flag up the pole and let them know you are there.

Why Is Branding Your Business Important? Branding will always be an integral part of a successful business plan. Branding allows your company to introduce itself and allows the consumers in your area to get to know your company and everything that comes with it. Business branding does not present just the products, services, and location of the company, but also establishes an image of the business as a whole. The positive image you create for your business will create a lasting recall for the consumers in your area.

People generally buy products and services for two reasons:

1. They need to solve problems. (Practical)

2. They want to feel good. (Emotional)

A solid branding strategy is your answer to helping your customers satisfy each of those two reasons. Give life to your business. People embrace positive thoughts, so create encouraging branding phrases. Messages similar to “You can do it,” or “You too can change”. Customer recall is one of the chief reasons your business brand is so vital. It creates customer preference for your products and services over your competition’s.

All businesses are, or should be, marketing organizations. The problem is most businesses put the proverbial cart before the horse. The cart is advertising; the horse is the branding. When consumers realize a need, the horse has already told them who you are, what products and services you have for them, and where your business is located.

So there you have it, a quick snapshot on branding and marketing. 

Is It Time for a Change?

After spending many hours and years in this challenging industry, it might be time to sell. Only you know the answer to this question. 

Jim Rohn, a motivational speaker, once said, “You cannot change your destination overnight, but you can change your direction overnight.” 

If your fitness center has been a success, you've probably had to pour most of your time, energy, and money into it. You may see your company as an extension of yourself, and it may be hard to even imagine life without it. On the other hand, your fitness center may have been only marginally successful, and something you can't wait to get rid of. Or, perhaps you entered into the fitness industry with the idea that it would be a short-term opportunity and that you'd sell out whenever you got a decent offer.

Whatever your situation, selling your fitness center will be one of the most important things you'll ever do, because unlike virtually every other business decision you've made over the years, you'll only do this once. You get a single chance to put a price tag on possibly years and years of effort — and once you sign the sales documents, it's over. 

You'll come out way ahead, both financially and personally, if you make an effort to understand the steps in selling, formulate your plan carefully, and when the time comes, take the opportunity to negotiate a price and terms that satisfy your reasons for getting out of the fitness industry.

The information below will guide you through the steps, which will make selling your fitness facility painless, less stressful and at the same time receive top dollar:

#1 - Most Important - Maintain confidentiality - Confidentiality is essential when trying to sell your business. If employees know that you are selling and changes are coming, they may seek other opportunities. Competitors may use this information against you, and members may seek cancellation and stop bringing guests. 
#2 - Placing an appropriate value on your business - Your fitness facility has value to a buyer based on several measurable calculations. Thus it is crucial to evaluate your business properly in order to increase your selling opportunities.
#3 - Presenting your business to potential buyers - Finding a qualified buyer is the first step. Qualified buyers will want information about your membership base, competition, financial history and lease. This information must be provided in a professional and organized manner to ensure your credibility. Your financials may also need to be reconstructed to show your business in the proper light.
#4 - Structuring a deal - From financing terms, personal guarantees, tax implications, leases, royalties, non-compete agreements, and more. All of these areas are very important, and are part of the sales process.
#5 - Progressing and closing the deal - From the Letter to Intent, to the Purchase Offer, these are some of the typical, but time consuming, steps that will lead you to a successful closing date.

Global Fitness Association, created by fitness professionals with over 40 years in the fitness industry, has emerged as the number one resource in the industry. Can you really learn something from a bunch of fitness industry veterans? We think so. Give us a call today at 925-672-4800.

Gearing Back Up – Making It Happen! a fresh start, a reset, a relaunch

Let’s face it; we’re all in this together. Most business owners and entrepreneurs are finding themselves without the proper resources and planning as we move through this unprecedented time. So what should businesses be doing as they move forward?   

I’ve always been told there are three types of people in this world:  people who make it happen, people who watch it happen, and people who don't know what's happening at all.

What should you do to make it happen? Here is the answer. Be the best you can, open to new ideas, and ready to communicate, communicate, and communicate. 

Ask yourself a few questions while reading this article and decide if you’ve been letting the negative information hitting the airways and print media influence your decisions as you gear back up. If you’re overreacting to the information you read in the press or on the six o’clock news, you’re possibly watching too much television or on the Internet more than you need to be. There’s plenty of help out there. Contact your local bank or the Small Business Administration as soon as possible. 

What I can tell you is that history indicates that the fitness industry has remained stable during prior economic downturns. In the past sixty years or so, the fitness industry has weathered several recessions and difficult times. Some say the fitness industry is a recession-proof business, and they might be right. Only time will tell with regard to this unprecedented event.

  

As you move forward, your communication skills have never been more important. If you’re not a good communicator, you’d better learn soon. It’s our recommendation that the following items be addressed so you’ll have the best possible chance to get back to some type of normalcy. Whatever you do, don’t make promises you can’t keep.

Employees – Communicate with your employees regularly and in various ways. Email may be the best source. Let you workers know you are doing everything you can to protect both them and visitors and to minimize the risk of disruption. Reassure your workforce that your organization is mindful of the situation. Explain current precautions and plans being made. Point staff toward clear and unbiased official guidance, for example, the Centers for Disease Control & Prevention, and the State Labor Board, for answers to their questions.

Members – Communicate with your members in various ways. Our experience with emailing members has led to unwanted cancellations. The more emails you send, the more cancellations you receive. If you communicate with your members via email, do it sparingly. Try using other types of social media, and have a link on your webpage that provides your members with answers to their questions and other types of information. Posting signage on the front door “Yes, We’re Open, Welcome Back!” along with other notices around the facility work well. Remember, your members and customers will want to know what you are doing to keep the facility safe and clean, so tell them what measures you have implemented. Don’t make promises you can’t keep, and keep members and customers updated on a regular basis.

Landlords – Many landlords across the country are also feeling the pinch and may be open to a discussion about lowering your rent, offering you a rent concession, or possibly renegotiating your lease. All communications with your landlord should be in writing. Many landlords are offering deferred rent up to ninety days and are open to adding the balance to the end of the lease. The old adage applies: If you don’t ask, you’ll never know. There are many payment deferral programs available. Check with your state and local officials for more information. 

Creditors – Communicate with all creditors as soon as possible. Any agreements should be put in writing to avoid future misunderstandings. I would suggest reaching out to your creditors and vendors rather than waiting for them to reach out to you.

Maintenance and Repair – Now’s your time to make a splash. How about some fresh paint in the locker rooms or lobby? Or completing a few projects you’ve put off for a rainy day? Now’s the time to get a list together and start working on those projects. The little things you do will make a big difference to your members and customers in the days to come.

Marketing and Advertising – You should continue to spend a percentage of your gross income to further grow your business, and the monies should be spent equally internally and externally. What do I mean by internally and externally? Internally means that you promote from within, you do things for your members. Promoting externally would be radio, television, newspapers, flyers, social media, etc. With both internal and external programs, you should be measuring the results and the return on investment. However, with both programs, some of the benefits can’t be immediately measured because the exposure alone will brand and further promote your business. Whatever you do, get your business name out there and let the world know you’re open for business.

 

Brighter days are sure to return, but until then, be proactive and keep your communication going.

Rent Relief Requests and Other Tenant/Landlord Issues

The following information provides a general summary and is for informational purposes only. It is not intended to be comprehensive, nor does it constitute legal advice. Specific legal advice should always be sought before taking or refraining from taking any action.

As the COVID-19 pandemic continues to disrupt the fitness industry across the globe, relationships between tenants and landlords will be tested. Now that Federal, State, and County mandates are expiring, many businesses are faced with the reality that past due rents must be paid up. It's only a matter of time before you'll be contacted by your landlord. It's our recommendation you make first contact and have open communication about negotiating rents. There are no winners in this situation, so be creative and be ready to negotiate.

Here are some viable alternatives to mitigate the past due rent:
Rent Reduction - You could request the landlord reduce your rent for a portion or all of the term left on the lease. The usual forms of rent reduction are to reduce the base rent, operating expenses, or both.
Rent Deferral - In this case, you would request the landlord defer a portion of your rent, but you would need to make arrangements to repay the rent deferred at a later time, either in a lump sum or by increasing subsequent payments.
Rent Abatement - If you are significantly past due on rent payments, your landlord may agree to forgive a certain amount of the past due rent if you remain current thereafter. Remaining current might mean requesting a lower base rent until you get back up to speed.
Loan Conversion - Rather than abating past due rent, your landlord may agree to convert the past due rent into a loan payable over time. The tenant would, however, continue to pay the current rent. The loan is then evidenced by a promissory note that is cross-defaulted with the lease. If possible, avoid giving any personal guarantees.
Rent Deposit - If the landlord holds a deposit, you could request this amount be credited against your current obligations. However, expect your landlord to request that you fully replenish your deposit at a later date.

For more information about the above topic, contact Gary Hood at 925-672-4800 or email getgymresources@gmail.com.

Three Types of People in the Fitness Industry

As we head into 2021 you’ve got to be asking yourself, “Is there a better way to run my operation?” After being in the fitness industry for over 45 years, I’ve seen a lot of things; but nothing like the storm we’re going through now.

Over the past year, there has been much talk about the state of our industry, and as you head into 2021 it is more important than ever to analyze where you have been and where you are heading. Ask yourself a few questions while reading this article and decide if you’ve been letting the negative information hitting the airways and print media influence your decisions as a business owner. In business, even in the fitness industry, there are always ups and downs, and, no matter what people say, you’re on your own to make things happen.

There are no crystal balls. I wish there were. But during these uncertain economic times you can choose to do nothing or you can choose to become a stronger business. The choice is yours.

There are three types of people in the fitness industry:

1. People who make it happen.

2. People who watch it happen.

3. And people who don't know what's happening at all.

Unfortunately, this unprecedented downturn may last for several more months or even several years. But as a business owner or manager, you've got to take advantage of this time period and become better than your competitors.

However negative the predictions may sound, the truth is that people will still be shopping for a fitness facility or a fitness related service. To ensure that you have the best possible chance for success, it’s imperative you explore and make changes along the way.

So, what does a fitness facility or business do to ensure they have the very best possible chance for success? Here is the answer. Be better than the others. Jim Rohn once said, “You cannot change your destination overnight, but you can change your direction overnight.”

So if I‘ve got your attention, and you’re open to new ideas and suggestions, checkout the following information and change your direction:

Marketing - Traditionally speaking, you should be spending 7-10 % of your gross income to further the branding and growth of your business and the monies should be spent equally internally and externally. You’re probably asking yourself what I mean by internally and externally. Well, internally meaning that you promote from within, you do things for your members or customers and in return ask them to do something for you. Promoting externally would be radio, television, newspaper, and flyers, etc. As with both types of programs, you should be measuring the results, and the return on investment. However, with both types of programs (internal and external) some of the benefits can’t be measured because the exposure alone will continue to brand and further promote your business. My recommendation to you would be to put both internal and external into play as soon as possible and let your members and potential new members know what you’re doing to keep your facility safe and available to them during these unprecedented times.

Landlords - The basis and foundation for a successful business is in the lease. It has always been my opinion that tenants don’t get what they deserve, they get what they negotiate. When it comes to your facility rent, landlords always seem to have the upper hand and that’s generally due to the tenant creating a poor foundation when going into business. If you’re looking for a new location, ready to sign a renewal option, or having problems with the space you lease, now is the perfect time to pay your landlord a visit. Many landlords across the country are also feeling the pinch and may welcome a discussion about lowering your rent, offering you a rent abatement, or possibly renegotiating your lease. Though there are no guarantees, you won’t know unless you ask.

If the economy has forced you to be late on your payments, and your landlord is growing impatient and preparing to evict you, or you’re thinking about throwing in the towel, give us a call. Don’t be pressured or fooled by your landlord; let us put our 45 years of experience to work for you. Give us a call today.

Are You Playing Hard to Get?

With over 40 years in the fitness industry, we are confident that we can provide you with the resources and tools you need to be successful in this challenging industry.

We need to hear from you as soon as possible so that we can better understand your views, goals, hopes, fears, and challenges. Having too much pride to ask for help is not the answer. Hoping things will get better tomorrow is not the answer. Hope is not a strategy. Remember, if you don’t ask, you’ll never know.

For all of us — and especially for the many readers we’ve heard from lately — the fitness industry suddenly feels like a very changing industry, one that just doesn’t seem the same as years gone by.

For ourselves, our families, and our financial success, we have to be able to meet the fitness industry’s new and constant challenges. And that’s why you have to stop avoiding your individual business challenges and seek assistance from seasoned professionals. Don’t play hard to get. Reach out and ask questions, ask for assistance, and always be moving forward and learning. I had a college professor once tell me, “If you’re not always learning, you’re probably falling behind.”

Everywhere we look, we see rising tensions between large chains, franchises, and individual locations. New competition ... new price wars ... and now, even the threat of government intervention in the form of taxes and regulations.

The investment picture is no less unsettling. We're seeing more mergers and acquisitions than ever before. And now, more and more owners are throwing in the towel than at any other time in our industry’s history. Why is this you ask — it’s because many owners have no other choice but to surrender to the competition because they were playing hard to get by not seeking help.

It’s an awful feeling knowing that your business is out of control and the other shoe may be about to drop, but not knowing when it will happen and who to turn to is the hardest part.

To give you an idea of what your competition has brought to our attention over the past couple of years, the following list outlines their top concerns:

#1. Challenging business environment. Not surprisingly, owners are primarily focused on the challenge of growing their businesses, including finding new customers, hiring and retaining the right staff, and dealing with the competition. Many were seeking help on ways to attract and retain customers because they generally didn’t have large enough marketing budgets to compete with the advertising dollars that larger companies had at their disposal.

#2. Landlord issues. This was more common than not, many owners were unaware of their rights based on the lease they signed. Many of their problems stemmed from paying too high of rent, not understanding the triple net costs, personally guaranteeing the lease, and how to deal with problems.

#3. Understanding Financials. Again surprisingly, owners didn’t know their numbers, and didn’t understand what their percentages should be. Many didn’t understand the correlation between guests, telephone information calls, tours, and sales.

In conclusion, many of the owners spent most of their time working in their business and not on their business. Although it’s important to ensure their customers are happy, it’s equally important for them to develop a business plan, which includes guidelines, systems, and strategies.

My question for you is simply this: How can we best help you?

I've made it easy for you — just select the contact method you feel most comfortable with and let’s talk.

Send me an email: Send an email to my personal inbox at gary@globalfitnessassociation.com.

Contact me directly: Simply pick up the phone and dial 925-672-4800 to reach me personally.

Motivation - What Stage Are You In?

If you Google the word “motivation,” don’t be surprised if you find two definitions:

1. As a noun, “The reason or reasons one has for acting or behaving in a certain way.”

2. The general desire or willingness of someone to do something.

As a club owner or manager, can you motivate your staff and employees? The answer is NO. 

There are many things you can do to create an atmosphere for self-motivation. Can you see yourself approaching one of your employees on Monday morning and saying, “Hi Robert, I’m here to motivate you. What do you think his response would be? As a club owner or manager it is your job to create the tone and atmosphere for self-motivation. 

Let’s examine the four (4) stages of any career or job.

Stage 1 - Excitement: Wow, I finally got my dream job, nice people work here, great company to work for, the best job I ever had, this is easy, I like it here, I can see this being my career, my manager is very understanding and supportive, this is fun, and I am learning new skills every day. This Excitement Stage may last from 2 weeks to 10+ years, depending on the work environment.

Stage 2 - Questioning: After the Excitement Stage is over the Questions Stage begins: Do I need to be on time every day? Do I need to work with members that I do not like? Why do I need to give tours? Why is Tracy getting paid more than me? Why do I get stuck working Saturdays and nights? While your employees go through this stage they are less productive and performance suffers. 

Stage 3 - Blaming: In this stage employees make statements such as: “My manager does not motivate me, I could have closed this sale if Dave didn’t interrupt me. I can’t sell the club because the janitors do not clean. I could sell more if visitors did not have any objections. I can’t sell because I’ve had no training. People drop out because of bad classes. If I got paid more, I would work harder. If I was the owner I would make so many changes here. While your employees go through this stage they are dragging other employees down with them.

Stage 4 - Looking: After an employee goes through the first three stages, they start looking for another job. While they are looking they are not productive. And if they do find something better, rest assured they will share it with the rest of the staff.   

What should a club owner or manager do? The first step is to spend time with your employees and do an assessment to determine their stage. If only 10% of your employees are in Stage 1, there is room for improvement. 

Here are some ideas: 

Stage 1 - Keep encouraging and supporting your employees, listen to them, continue to provide training sessions, have them be the mentor to new employees, and do not get in their way of success.

Stage 2 - Get to know them, ask them about their job, and explain the policies and what is expected of them. Spend time in answering their questions and concerns. Do everything possible to get them back to Stage 1. 

Stage 3 - If 50% of your staff is in this stage you have a problem. It is just like disease, it will spread throughout your company and destroy morale and productivity. You will need to spend time and effort here to determine how many employees can be moved to Stage 1 with proper training and coaching. At the same time, determine which employees will need to be put on a Performance Improvement Plan and which ones will need to be let go. This is critical step for any club owner or manager that will test your management and leadership skills.

Stage 4 - If you find out they’ve been looking for something better, determine which ones are worth keeping and which ones will help your company when they exit. If you are experiencing a high turnover rate amongst your best employees, something is wrong and it will need your immediate attention. It is expensive to lose great employees, especially after spending your time training, coaching and have them earn the respect of your club members. 

A simple question for club owners and managers. . . What stage are you in?

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

It’s Pretty Embarrassing Out There

How many businesses are you aware of that do not depend on sales to produce income? As you consider this question, remember that marketing and sales take on many different forms, therefore your employees need to be trained and coached. You’d be surprised on how many clubs we’ve called on this past year, and found many front desk staff are clueless about what you are trying to promote or what their job responsibilities really are.

It especially hurts when considering what it costs simply to get each prospect through the front door. It’s high time that all key people in your club have the sales skills necessary to convert an inquiring prospect into an active member, dues-paying member. Start this process by having sales training sessions for your staff. Let them know what their job is and how to do it effectively. Equip them with the proper back-up materials, forms, flyers, brochures, rate sheets, membership applications and so forth. But most of all, make sure they’re equipped with the proper selling skills and are well informed.

The fitness industry will routinely experience cycles where members literally flow into the clubs as if it were high tide; and other sparse times when we’d give anything to get a prospect. Every potential member is of great value to your club. When the prospect becomes a member, he or she will spend money in your club. They’ll bring in other members. They’ll bring in guests that pay guest fees. They’ll pay for their dues and many other ancillary items as well.

Fact: Sales is the highest paying hard working job, or sales is the lowest paying easy working job. As an owner and manager, remember . . . you get what you pay for . . . so hire the right people.

There exists no question that each and every guest and member is singularly important to the overall picture of your operation, so stop watching this happen and give your staff the proper training, tools and resources so they can make it happen.

If you look around your club, you’ll probably find that the best salesperson on your staff is also the most knowledgeable. Take note when these people sell memberships or other programs. Watch some of the things that happen because of their intimate knowledge of the club:

1. Enthusiasm is generated. 2. Confidence is developed. 3. Fear and uncertainty is pushed aside. 4. Both buyer and seller are developing personal satisfaction, because both know what’s going on. 5. Objections are properly handled and controlled with questions.

Your staff should know their club backwards and forwards. Your staff should know the benefits a prospect will reap as member. In short, your staff should know everything about the product they’re selling.

Here’s Eight Top Reasons Why Your Salespeople Fail

1. Not Making Enough Calls – You can’t close people you don’t call on. Remember, your competition is happy to make the extra effort.

2. Not Listening – Your understanding of your guest’s unique needs will not increase by you talking. Sound interested in them, not interesting.

3. Not Starting Every Day with a Plan – Set goals for each day and each week. If you fail to plan, you plan to fail.

4. Not Asking Them to Join Often Enough – Failing to ask for them to join is the same as asking for failure. Few guests buy on the first closing attempt. Ask for the sale several times on each presentation.

5. Negatively Prejudging the Guest’s Ability to Buy – If you imagine that your guest won’t buy, you’re developing a self-fulfilling prophecy. Ask questions and check the facts but never discount the sale!

6. Not Dealing with the Guest’s Objections Head On – When a guest has an objection, welcome it as a question that you are happy to answer. Objections are often buying signals in disguise!

7. Lack of Focus on Priorities – Staff with a clear focus on the most important and most urgent tasks will always get better results than staff who allow themselves to get side-tracked.

8. Not Asking Questions Knowing the Answer Will Be “YES” – More yes’s mean more sales. Knowing how to ask the right questions in the right way to make customers want to buy is a key step!

9. Failure to Work Harder and Smarter – Staff who are willing to work harder and smarter will always win. Staff who quit early should be asked to leave your employment.

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

References . . . You Bet!

Requesting references from job applicants should be a standard hiring practice in the health and fitness industry, particularly in large organizations with dedicated HR departments. But is it worthwhile for a smaller operation? You better believe it! Checking professional references for your potential employees can mean the difference between a bad hire and a perfect fit for your company.

Most hiring managers request at least one reference from job candidates, though getting a reference from a current employer or supervisor can be a sensitive request to make of job applicants.

Should you decide to check references, you should develop a standard list of questions to ask. That ensures that you gather similar information from each candidate—and that you avoid sensitive subjects that could lead to a discrimination claim. Reference checks should focus strictly on an applicant’s qualifications for your open position. Do not ask a reference to answer background questions regarding:

• Race or national origin
• Sex or physical characteristics
• Medical conditions or disability
• Marital status, pregnancies or family size

Please visit our Documents and Forms for some of the most comprehensive, creative, and affordable tools that deal with the fitness industry and the hiring process.

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Thinking of Selling Your Business?

Fun, short story. . . A man wakes up in the morning after sleeping on an advertised bed, in advertised pajamas. He will bathe in an advertised tub, wash with advertised soap, shave with an advertised shaver and have advertised juice, cereal and toasted bagel (toasted in an advertised toaster) for breakfast. He'll then put on advertised clothing and glance at his advertised watch.

He will ride to work in advertised car, call in to let his gym know he's running late from his advertised cell phone, and sit down in an advertised desk chair when he gets to the office. He'll work at his advertised computer, and write with an advertised pen.

Yet this man hesitates to advertise (or market his business), saying that marketing and advertising don't work and are too expensive. Finally, when his unadvertised gym isn’t doing well, he will advertise it for sale.

Hmmmm

After spending many hours and years in this challenging industry, it might be time to sell. Only you know the answer to this question. 

Jim Rohn, a motivational speaker, once said, “You cannot change your destination overnight, but you can change your direction overnight.”

If your fitness center has been a success, you've probably had to pour most of your time, energy, and money into it. You may see your company as an extension of yourself, and it may be hard to even imagine life without it. 

On the other hand, your fitness center may have been only marginally successful, and something you can't wait to get rid of. Or, perhaps you entered into the fitness industry with the idea that it would be a short-term opportunity and that you'd sell out whenever you got a decent offer.

Whatever your situation, selling your fitness center will be one of the most important things you'll ever do, because unlike virtually every other business decision you've made over the years, you'll only do this once. You get a single chance to put a price tag on possibly years and years of effort — and once you sign the sales documents, it's over.

You'll come out way ahead, both financially and personally, if you make an effort to understand the steps in selling, formulate your plan carefully, and when the time comes, take the opportunity to negotiate a price and terms that satisfy your reasons for getting out of the fitness industry.

The information below will guide you through the steps, which will make selling your fitness facility painless, less stressful and at the same time receive top dollar:

Placing an appropriate value on your business - Your fitness facility has value to a buyer based on several measurable calculations. Thus it is crucial to evaluate your business properly in order to increase your selling opportunities.

Presenting your business to potential buyers - Finding a qualified buyer is the first step. Qualified buyers will want information about your membership base, competition, financial history and lease. This information must be provided in a professional and organized manner to ensure your credibility. Your financials may also need to be reconstructed to show your business in the proper light.

Maintain confidentiality - Confidentiality is essential when trying to sell your business. If employees know that you are selling and changes are coming, they may seek other opportunities. Competitors may use this information against you, and members may seek cancellation and stop bringing guests. 

Structuring a deal - From financing terms, personal guarantees, tax implications, leases, royalties, non-compete agreements, and more. All of these areas are very important, and are part of the sales process.

Progressing and closing the deal - From the Letter to Intent, to the Purchase Offer, these are some of the typical, but time consuming, steps that will lead you to a successful closing date.

With over forty years in the fitness industry, the team at Global Fitness Association understands there are many tasks and challenges you don’t enjoy doing, and selling your fitness center might be one of them. We are available for private consultation and encourage you to give us a call today. We will be happy to discuss your situation, with no obligation on your part. If we feel that we can be of assistance to you, we will provide you with specific recommendations, including objectives, time frames, and costs.

Important note: If you are contemplating closing your business and throwing in the towel, you may have a huge liability and exposure on the remaining term of your lease. In addition, you probably have another huge liability, which is your membership base. Each of us contributes to the industry's success in our individual ways, but we also share a collective responsibility to "do the right thing" when closing a business. Let us put our years of experience to work for you, and we will show you how to negotiate full closure of your business and limit your risk and exposure.
We know of many creative ways to help you come out a winner and, yes, you’ll be left standing on your own two feet. In addition, in many situations, you’ll be able to recoup thousands of dollars from various sources by using our proven methods. Give us a call today.

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Please place your comments in the section below. Your participation is encouraged and appreciated. Thank you.

PROBLEM CUSTOMER ALERT

Okay, so I've got this consulting client. Let's call him "Jimmy." He's a really successful businessman and club operator, but DAMMIT! He's a total pain in the ass! The reason is that he'll only take my advice after arguing with me for like an hour. Hey - it's his dime and all, but still. That gets old. Whatever. Anyway, I was talking to him last week and I told him the best way to generate guest traffic and a bunch of goodwill in his marketplace is to do something REALLY COOL and DIFFERENT. And naturally, he starts arguing with me. So I decided to shut him up forever. I told him that I'd PROVE this works and that if I'm right, he's got to publicly admit defeat in this publication and buy me a case of wine. (Dummy forgot to even ask what kind of wine, ha! Naturally I'm gonna find the most expensive kind possible.) Anyway - here's how I proved him wrong . . . but before I get started, let me wish each of you a happy and prosperous 2018.

As we head into the New Year, you’ve got to be asking yourself, just like Jimmy did, “Is there a better way to run my operation? Are there better ways to get guests to walk through the door?” After being in the fitness industry for over 40 years, I’ve seen a lot of things – many that made me shake my head and wonder what the heck some of you were thinking. Yes, there is a better way to do a lot of what we do on a daily, monthly, and yearly basis.  As I’ve said before, there are no crystal balls. I wish there were. But during these very competitive times, you can choose to do nothing or you can choose to become a better business manager. The choice is yours. As you head into 2018, it is more important than ever to analyze where you have been and where you are heading. Ask yourself a few questions while reading this article and decide if you’ve been making the right choices. Do you have all the resources you need to be successful?

You’ve got to stop making excuses. We've all experienced people like Jimmy, bless his soul, but as business owners and managers, there is a better way. Most of us are great at identifying problems, but we’re terrible at coming up with real solutions.

So, what does a fitness business do to ensure it has the best possible chance for success? Here is the answer. Be the best you can, open to new ideas, make a few changes in your operation, and get involved with a company and consultant that can help you along the way. Let me tell you about my organization, Global Fitness Association. Whether you're new to the fitness industry or a seasoned veteran, you can’t go wrong with access to the following three popular resources and more.

Executive Assistant and Consultation Service - This service is available to all fitness professionals and the first hour is free. You will have complete access to seasoned fitness professionals (each with 40 years and counting) to discuss your special needs and challenges, with no obligation.

Lease Negotiations and Renewals - Believe it! The landlord always has the upper hand, and without professional help you could be asking for trouble without knowing it. There are five times in your business life when you may need us to get involved with your landlord. After working with landlords across the country for over forty years, we have developed several successful strategies and techniques that address these important issues.

Documents, Forms, and Manuals - From accident reports to employee handbooks to dealing with your landlord and much, much more. You will be amazed at all the categories Global Fitness Association has to offer specifically written for the fitness industry. All documents can be modified to suit your specific needs and can be accessed within seconds at a price that can't be beat. Learn how to expose your brand in a more economical fashion that gives you the edge, and get you more guests. Just as promised to my friend Jimmy.

“Look What Jimmy Had to Say.”

"Don't know how you did it, but you did it. I would highly recommend that individuals in the fitness industry align themselves with GFA because they really know their stuff, including their taste for wine.” - Jimmy, Atlanta, GA 

There you have it, something Really Cool and Different. The strategies you learn and practice now will serve you now and in the future.

If you know of any ridiculously expensive wine, let me know.

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Don’t Be Fooled and Mislead

Consultants in any field are a dime a dozen. But to find help and support from seasoned professionals, people who have been in the fitness industry for over forty years, that can be hard to come by.

So, what does a fitness facility do to ensure they have the very best possible chance for success and aren’t being fooled and mislead? Here is the answer. Be better than the other fitness facilities by joining an association that will provide you with daily support and access to seasoned fitness professionals and all their resources at a cost that anyone can afford.

Whether you're new to the fitness industry or a veteran, all of us need access to experts to discuss our special needs and daily challenges.

If you are a member of a fitness trade association, ask yourself the following questions and decide if you are really benefiting.

•  When was the last time you spoke to someone about your day-to-day challenges?

•  Was the information you received prepared by a season professional or by an employee who has never owned a business or been in the fitness industry?

•  Did you get the impression that your association is more concerned about money rather than helping you?

If the answer is “yes” to any of these questions, then guess what. You’re not benefiting! So don’t be fooled and mislead any longer, and start benefiting today by contacting the right association and fitness professionals to get the help you need.

You should be looking for an association that can provide you with true benefits - benefits that you can measure and count on from seasoned professionals who have been in the trenches, negotiated with the landlords, solved maintenance issues, trained staff, handled member problems and suggestions, come up with the promotions, solved staff problems, designed the systems, forms, videos, negotiated with creditors, and more.

This experience and expertise is available; you’ve just been looking in the wrong place and spending your money to feel you’re a part of something bigger. Remember, bigger doesn’t always mean better. If you’ve been down this road, then you’ll understand what I’m trying to convey. If you’re not a member of a fitness trade association, you need to be . . . but with the right association.

This brings me to Global Fitness Association, located in Clayton, California, with Regional Offices in Lincoln, California, and Las Vegas, Nevada. Created by several fitness professionals with over 40 years in the fitness industry, our team of fitness industry veterans has been assisting small to large fitness center owners, managers, and other fitness professionals across the country.

As owners and managers that contribute to the industry's success in your own way, you also share a collective responsibility to "do the right thing" and should reach out for help when in need. We understand it’s lonely at the top, and encourage you to seek professional advice when in doubt. That’s where Global Fitness Association comes in.

For only $29.00 per month, quit anytime you like, you can receive the best resources and support to be found in the fitness industry.

Below are a few of our most popular features:

Consultation Service – Meet for up to one hour free every month with seasoned fitness professionals (40 years and counting).

Monthly Blog Postings – You'll receive our popular monthly Blog postings every month, which will keep you up-to-date with the latest in fitness center operations, staff training material, marketing ideas, promotional material, and more.

Lease Negotiations – Believe it! The landlord always has the upper hand, and without professional help you could be asking for trouble without knowing it. There are five times in your business life when you may need us to get involved with your landlord. After working with landlords across the country for over forty years, we have developed several successful strategies and techniques that can really help.

Your Internet Footprint - Improve It Today – Do you know how your business appears across the internet? Through our research, we have found 85% of the gyms in this country contain inaccurate information online. So where does your gym stand online? Find out for free with our online visibility Report Card. Give us a call today.

Online Video Training, Workbooks, and Testing – Learn the best techniques for membership sales, service, leadership, and human relations.

GFA e-Marketing – Get your branding/advertising message out to prospective members at a price that can’t be beat with access to over 250 million opt-in email addresses.

For more information on the above topics and many more, visit our website at www.globalfitnessassociation.com/info.

Global Fitness Association, created by fitness professionals with over 40 years in the fitness industry, has emerged as the number one resource in the industry. Can you really learn something from a bunch of fitness industry veterans? We think so. Give us a call today at 925-672-4800.

If you would like to ask a question, or if you have advice, an answer, or an experience to share concerning this article, please place your comments in the section below. Your participation is encouraged and appreciated. Thank you!

Don't Say These Things

Words matter. Be intentional in what you say. Whatever you say, don't say to a co-worker or customer one of the seven phrases listed below. The quickest way to be more organized and to achieve success is to eliminate the excuses and negatives. Be persistent and assertive and you will find that you will accomplish more than you ever have before.

Here are seven phrases to avoid:

1. "I didn't have time." If you find yourself saying this, you're writing your business obituary, and will be replaced shortly.

2. "We've been playing telephone tag." Be persistent. Do whatever is necessary to make contact.

3. "They didn't get back to me." Or "They are getting back to me."  Or "I left him a message." All are equally bad.  Expecting someone to get back to you stops the action. Take the initiative and call back, several times if needed. Be persistent and assertive.

4. "It's scheduled for sometime next week." Schedules should be precise, day and time, and preferably written. Verify schedules often.

5. "As I understand it . . ." You're hedging and that's trouble. Ask more questions, so you do fully understand and can explain it to anyone you need to.

6. "I just assumed . . ." A good way to become instantly obsolete.  Never assume; ask questions and follow up on a regular basis.

7. "I didn't think to ask about that." Anticipating what needs to be done is part of running an successful business.

If you would like to ask a question, or if you have advice, an answer, or an experience to share concerning this article, please place your comments in the section below. Your participation is encouraged and appreciated. Thank you!

Ten Steps To Public Relations

1. SPEAK TO PEOPLE - There is nothing so nice as a cheerful word of greeting.

2. SMILE AT PEOPLE - It takes 72 muscles to frown, only 14 to smile.

3. CALL PEOPLE BY NAME - The sweetest music to anyone's ears is the sound of his own name.

4. BE FRIENDLY AND HELPFUL - If you would have friends, be a friend.

5. BE CORDIAL - Speak and act as if everything you do is a genuine pleasure.

6. BE GENUINELY INTERESTED IN PEOPLE - You can like almost everybody if you try.

7. BE GENEROUS WITH PRAISE - Cautious with criticism.

8. BE CONSIDERATE WITH THE FEELINGS OF OTHERS - There are usually three sides to a controversy; yours, the other fellow's, and the truth.

9. BE ALERT TO GIVE SERVICE - What counts most in life is what we do for others.

10. ADD TO THIS a good sense of humor, a big dose of patience, and a dash of humility, and you will be rewarded many-fold.

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Please place your comments in the section below. Your participation is encouraged and appreciated. Thank you.

How to Work a Trade Show

Trade shows and exhibitions provide a tremendously valuable opportunity for any entrepreneur to learn about the competition and to sell products. Getting hands-on competitive intelligence is usually difficult, but it's easy as pie at a trade show. A walk around the exhibit hall will earn you a sackful of literature on suppliers, distributors, the trade press, new market concepts, and a two-pound synopsis of the market that you can review at your leisure when you get home. You can also have yourself put on mailing lists, participate in market surveys, and earn complimentary subscriptions to a handful of journals, not to mention be given more coffee mugs, laminated business cards, and free golf balls than you'll ever need.

It's Time to Meet the Competition. After creatively introducing yourself as "John Smith with XYZ Corp," you can get a complete review of the competition's product line. You can then ask what they think of your company's products since they don't know who you really are, and they'll tell you what they really think. It's enlightening to hear what your competition says about you to prospects. This is competitive research at its grittiest.

Exhibiting and Walking Around at a major trade show lets you accomplish several important tasks at once. You can

1. Show off your product to people who are hyper-qualified as buyers (they've gone to the trouble of showing up). 
2. Meet your current customers and get a feel for how your product's really performing. 
3. Spy on your competition and either gloat over your superiority or gnash your teeth at their achievements. Some people say that investigating the competition is what these shows are really about. 
4. Connect with distributors, wholesalers, brokers, and others in your product distribution channels. 
5. Build a mailing list for follow-up contact. This is why you're really there. 
6. Schmooze with major prospects at your company's booth or hotel hospitality suite. 
7. Make small or major presentations to attendees under the auspices of the show's organizers. This boosts your credibility and enhances the seriousness of your product. 
8. Meet with the movers and shakers in your industry's trade press. You'll never have a better opportunity to chat with the top editorial staff.
9. Sell some product!

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Please place your comments in the section below. Your participation is encouraged and appreciated. Thank you.

Avoid These Three Mistakes if you're starting a business.

According to the Small Business Administration, a third of small businesses fail within the first two years. Over half fail in the first five years. So if you’re thinking about starting a small business, it pays to take an honest look at yourself, your business plan, and the marketplace before you jump in.

You can increase the odds that your business will survive by avoiding the following three mistakes.

Mistake # 1: Not enough cash. If you’re just starting out, it’s a good idea to accumulate as mush cash as you can. Your cash reserve should be about three times your estimated need. All businesses face seasonal slow downs, when the sales aren’t what you planned and revenues are slow to trickle in. Also, unforeseen expenses such as insurance, wages, rent, advertising, taxes can stop you in your tracks before you even get traction, and in many cases will shut you down before you get started. Having extra cash on hand can make the difference between surviving and being a statistic as another failed new business. A reserve fund provides an extra bit of cushion to keep the business operating as you work toward the next sales goal.

Mistake # 2: Poor planning. Building a business is like building a house. You need a foundation, a clear set of goals, and an implementation strategy. Where do you want to be a year from now and beyond? Developing a sound business plan means doing solid research. It means understanding the marketplace, knowing what sets your product apart from the rest, and getting a handle on the costs to implement your business plan. An idea is not a business plan. You need to flesh out the idea and get to specifics before moving forward. One of our favorite acronyms - from our college days - that will help remind you of the correct process is, PPPPP. Which simply means: Proper Planning
Prevents Poor Performance.

Mistake # 3: Inflexibility. Once you’ve developed your business plan, be willing to adapt it to changing conditions. More than a few businesses have started with a great business model, but failed to modify that model when market conditions evolved. If your customers or competitors change (and they will over time), don’t be afraid to change with them. Always remember, a person or business that won't be flexible will likely snap, break, or fail. And when something snaps, breaks, or fails, one usually throws it away, tries to fix it, or closes its doors.

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Please place your comments in the section below. Your participation is encouraged and appreciated. Thank you.

Making Your Business Legal

Making Your Business Legal

Use the following checklist to ensure you have covered the bases when it comes to making your business legal and accessible.

Business name

Say the name aloud to make sure it is easily understood and pronounced. Have the name pass muster - including a spelling test - with your family and friends.

Check your local Yellow Pages and business authority to make sure the name is available.

Do a trademark search. File your DBA (doing business as). Register your trademark.

Business licensing

Obtain a city business permit.

Determine whether you need professional licensing from your state.

Inquire as to any other permits you might need, including a fire inspection or sign permit.

Determine the proper amount of sales tax you need to collect and obtain a "seller's permit."

Other legal tasks

Determine if your neighborhood is zoned for home businesses and if you need to be aware of any regulations (parking, signage, etc.).

Find an attorney who specializes in small businesses.

Decide which business structure (sole proprietorship, partnership, corporation, limited liability partnership, limited liability company) you desire for your business, and contact your attorney to get the paperwork underway.

If you plan to hire employees, obtain an employer ID from the IRS and any forms you and your employees need to fill out. (Also inquire at your local INS office for an Employment Eligibility Verification form [Form I-9], which proves your employees have the legal right to work in the United States.)

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Please place your comments in the section below. Your participation is encouraged and appreciated. Thank you.