Growing Your Fitness Business. A Post By Pat Rigsby
If you want to really explode your fitness business you need to understand the Exponential Growth Formula. The formula, although really known and understood by very few fitness pros, has been used to turn around failing business, and create quantum leap growth in businesses along with enormous increases in income.
This formula is the quickest way to boost profits 100% to 500% or more, especially if you have an existing client base.
If you pay attention to just a few of the blogs, emails and products that I and others offer, it’s easy to get confused by all the complicated ideas and theories. But when you boil all those fancy ideas down, there are really only three ways to build your business.
The Exponential Growth Formula
- Get More Clients
- Get More Purchases From Each Client (Increase your retention rate or increase your clients’ buying frequency)
- Get Bigger Purchases From Each Client (Increase your clients’ average purchase)
You’re probably thinking “That’s pretty simple, Captain Obvious.”
It is simple, but just take a look at how it can impact your business.
Most fitness professionals spend most of their time, money, and energy on the first step: Get More Clients.
What would happen if you spent equal amounts of time, money, and energy on not only getting more new clients, but also on increasing retention, and increasing the amount each client spends with you each month?
You’d more than likely see your income increase by 50-100%.
For example, let’s say that you currently have 20 clients who stay with your business for 12 months and spend $300 per month with you.
Using the Exponential Growth Formula, we can calculate how much money you made. Your total revenues would be $72,000. Here’s the formula:
Get More Clients +
Get More Purchases Per Client +
Get Bigger Purchases Per Client =
Greater Total Revenues
20 Clients +
12 Months +
$300 Per Month =
$72,000
Not bad… but not extraordinary.
Now let’s say that after reading this post you start to apply this Formula and some of the other things we teach to increase your client base, increase your client retention, and you are also able to increase your monthly revenues per client by adding more value to your business or more offerings.
Let’s be really conservative and say that you only see a 25% increase in the number of new clients you bring in over the next year.
So now instead of 20 clients, you now have 25. That’s an easy goal – it’s less than 1 new client every 2 months.
Now, for the sake of our example, let’s again be conservative and say we only increase our retention (Get More Purchases) percentage by 25%. In other words, we get your clients to stay with your business for 15 months instead of 12 months.
Finally, let’s assume that you increase your monthly revenues per client only 25% so instead of $300 per month, your clients now spend $375 per month.
So you’ve only made 25% improvements in each of the three categories of the Exponential Growth Formula. How much has your business grown? Has is grown by 25%?
No! Your revenues went from $ 72,000 to $140,625!
You’ve almost doubled your revenues! And you haven’t done anything that difficult. You just used the power of multiplication in the Exponential Growth Formula.
Let’s take a look:
Get More Clients – 5 Additional Clients
Get More Purchases – Avg. Retention Increase of 3 Months Get Bigger Purchases – $75 Increase Per Month Per Client
Total Revenue Increase – $68,625
Let’s take this one step further. Let’s say you really dial in on everything and double each of these components.
You double your client base, double your retention rate, and double your monthly revenues per client.
In that scenario, your income would increase to $576,000… an increase of $504,000!
Now is that probable. Not probable, possible for sure.
But what if you did just half that well.
That’s $268,000.
Pretty good if you ask me.
And all it takes is focusing on all 3 of those components instead of just one.
Think you can do that in your fitness business? I do. Let me know your thoughts below.
Dedicated to your success,
Pat
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Great tips and awesome idea. thank you for being so thougtful
Pat,
I enjoyed today’s post and wanted to give an example of the importance of # 1 (“Get More Clients”) on your list.
In the corporate setting a trainer can literally double their camp numbers with one client…talk about being efficient.
Lol. Captain Obvious to the rescue! Nice post.
Nice info !! Thanks..
Pat, this article was great. It was awesome to see those kind of numbers with do-able increases in numbers, etc. Thanks!
Those figures only work if you are only talking total revenue, not revenue per year. If taken on a yearly basis, 12 months, you can’t count the extra three months. Those months get counted the next year. Renue then is about $92,000 vs. $72,ooo, or approximately an increase of 25%. Your numbers only work if you currently lose all your clients at the end of 12 months and subsequently lose all of them at the end of 15 months. Still, $20,000 is nothing about which to turn your nose up.