Run a Profitable Gym – Details, episodes & analysis

Economic uncertainty is coming, but that doesn’t mean your gym has to struggle.

In fact, the best gym owners use challenging times as an opportunity to grow, refine their businesses and come out stronger on the other side.

In today’s episode, Two-Brain founder Chris Cooper lays out the exact steps gym owners can take to thrive during an economic downturn.

Slashing membership rates is the wrong move—Chris shares smarter strategies for growing top-line revenue, from prioritizing high-value services to improving retention by strengthening relationships with existing clients.

He also explains how to cut unnecessary costs before you’re forced to and optimize your sales process to convert more leads.

Tune in to learn how to build resilience, stay ahead of financial challenges and run a profitable gym—no matter what the economy brings.

Links

Gym Owners United

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01:19 - Go upmarket, not down

05:34 - Market for retention

08:44 - Improve your weakest metric

10:38 - Grow top-line revenue 20%

13:17 - Plan for the worst, hope for the best

16:26 - Cut spending & maximize ROI

19:42 - Lean on your network

Struggling to pay yourself enough as a gym owner? James Harris of Brentwood Barbell went from barely scraping by to generating $30,000 a month in revenue—and today, he’s sharing exactly how he did it.

In this episode of “Run a Profitable Gym,” host Mike Warkentin sits down with James to unpack his journey from burnout to six-figure success.

A former physical therapist turned gym owner, James reveals how Two-Brain Business helped him triple his revenue in less than three years.

He also shares how ego nearly cost him his business and explains why “going out of business isn't the worst thing—staying in business and not making money is.”

James breaks down the key tactics that transformed his business, including tracking his metrics, planning his year, raising rates and building “gap strategies” to overcome revenue shortfalls.

Tune in to hear how to systemize your gym and boost your income, just like James did. Then, shoot Chris Cooper a DM to get free copies of his sample profit-and-loss statement (P&L) and annual plan.

You can find Chris—and thousands more supportive gym owners—in Gym Owners United, linked below.

Links

Gym Owners United

Book a Call  

02:17 - Journey with Two-Brain

05:26 - Overview of James’ gym

09:37 - Low points to $100k NOB

13:28 - Paying yourself more

21:21 - What’s next for James?

Last week, Chris Cooper published a blog titled “How to Save CrossFit,” and the response was massive—affiliate owners, coaches and industry leaders reached out with questions and concerns.

Today, in this special episode of “Run a Profitable Gym,” Chris answers their questions.

Coop addresses why he deaffiliated from CrossFit and why the method must evolve, then he digs into a question many have asked him: Would he ever buy CrossFit LLC?

Chris also defines what real change would look like in a complete overhaul, including how to rebuild CrossFit Media, redefine the purpose of the Games, and offer affiliates real education and mentorship to help them succeed.

Stay tuned for upcoming episodes in this series: Chris will explain how affiliates can be saved and lay out a plan for the evolution of the CrossFit Games.

And if you missed the first part of this special series, it's linked below.

Links

How to Save CrossFit

Gym Owners United

Book a Call  

5:33 - First 90 days of complete change

10:21 - What about Europe?

14:42 - Is CrossFit in danger?

17:34 - Affiliates’ concerns

20:35 - Could Coop buy CrossFit?

Every sale you don’t close at your gym costs you time and money.

In this episode of “Run a Profitable Gym,” host John Franklin is joined by Matt Temby, head of sales at Two-Brain Business and owner of Vault Health & Fitness. Matt’s on the mic to share proven tactics for improving your close rate.

He walks you through the sales process from start to finish: how to discover a potential client’s real problem, help them realize your solution is perfect and close the sale.

Sounds simple, right?

But before you close, you’ll inevitably hear objections such as “I need to think about it” or “I have to talk to my partner.”

Statements like this are smokescreens in front of the real objection: fear, money or logistics. Matt explains how to push through the smoke, identify the real objection and overcome it to close the sale.

Coaches can hear more from Matt at the Two-Brain Summit on June 8 and 9 in Chicago. Tickets are available via the link below.

Links

Two-Brain Summit

Gym Owners United

Book a Call 

0:25 - Matt's journey in sales

6:08 - Creating strong closers

16:41 - Making sales and maintaining your vibe

21:22 - Ending the sales pitch

31:17 - Incorporating tech

Michael Scott and Mike Collette are co-owners of CrossFit Prototype in MA. They’ve been open for three years, and now they’re expanding.

Instead of opening a second location or adding space to their original box, Michael and Mike are starting to acquire other local boxes. I’m in a privileged position of trust: box owners are more willing to talk openly when I’m in the room as a “broker”. So at the beginning of May, I flew to Boston to hang out with them for a few days, visit other boxes, eat dinner with other affiliates, and sit in on some of these negotiations.

In this short interview, Michael and Mike talk about:

• WHY they’re acquiring other gyms, instead of expanding
• WHO would make an ideal partner in an acquisition
• WHAT they look for when valuing a gym
• WHERE they’re expanding
• HOW they determine value.

You can use the Business Valuation Calculator. You can download it free here:

Rigquipment Finance DCF Worksheet for TwoBrainBusiness.com

Michael Scott also refers to EBITDA as another valuation tool.

Whether you’re thinking about selling your gym, thinking about BUYING other gyms, or just wondering about what makes your gym valuable, this is the perfect episode for you. We don’t get drug down into the math, but we do identify some key metrics to track.

Michael and Mike are completely transparent, even when I ask hard questions. But if I missed anything and you’d like to know about it, email chris@twobrainbusiness.com and I’ll pass your questions along.

In the meantime, please visit iTunes and give this podcast a 5-star review if you liked it.

In “Critical Questions”, I talk about consolidation vs. expansion, the TwoBrain Summit and the big questions I’m working on right now.  Here’s “Growing Too Fast?”

Recorded on June 17, 2016.

Vaughn Vernon is the guy behind Affiliate Guard.

Vaughn insures over 2200 affiliate gyms, and we get together whenever possible to share “War Stories.” Some of these are funny, it’s true. But the point is to identify the potential tripping stones for gyms.

This is NOT a boring episode about insurance. It’s a glimpse into the future. It’s a chance to analyze your defense. Vaughn is definitely not a boring guy, and we can leverage the hard lessons learned in the trenches to avoid gym-killing mistakes in our own businesses.

The gyms in these stories aren’t owned by dummies. Most of these coaches have the same expertise, same fantastic community and same passion YOU DO. In most cases, they’ve simply run into one tiny instance of bad luck. Sadly, some didn’t survive.

Imagine this: you spend ten years learning how to change lives. You care so greatly it keeps you up at night. You’re profitable; your coaches own houses and cars; your clients are off Lipitor. Then one day, a client collapses mid-WOD. Will you lose it all?

Some have. But others were prepared and survived. We can learn from both.

In a few cases, this is a hilarious conversation. In others, it’s as serious as a heart attack (literally.)

0:00 – Vaughn’s background and (funny) intro to CrossFit

4:30 – Running events at your gym: are you covered?

9:12 – What are the easiest mistakes to avoid in YOUR gym?

11:44 – Homemade equipment

14:00 – A recent case in CA where a client died of a heart attack, and how it affects YOU

16:58 – Blood-borne diseases – does anyone in your gym rip their hands?

19:15 – Do waivers REALLY protect you?

20:57 – How an OnRamp or Foundations program might save your gym

22:20 – Using pictures on your website

23:21 – Background checks (download the free form here.)

24:06 – Kids getting rides to and from the gym – Download a Child Pickup Authorization form here:

Child Pick Up Authorization Article

25:30 – Kids’ competitions

28:10 – Do we need a written assessment for all athletes at intake? (hint: the TwoBrain family is working on this for you.)

30:31 – The absolute basics: taking attendance

31:38 – The Big “R” (free rhabdo waiver here, along with a TON of other free stuff)

37:37 – Why Vaughn is buying into a CrossFit gym

38:48 – You’ll need an AED soon. Here’s what Vaughn is doing to help

(Do you need one ALREADY? Click here.)

41:20 – Remote programming: are you liable?

43:00 – Nutrition challenges and prescriptions: what’s legal?

44:10 – Renting space to other coaches

47:00 – Why clients sue

In “Coach’s Confessional”, I talk about being proud of the wrong things instead of those that DO matter. Further reading: The Hustle Is A Lie.

Recorded on June 7, 2016.

AJ and Megan Dwyer own MAD Strength and Conditioning and CrossFit SwampFox. Since December 2015, they’ve affiliated and opened a second location. Their rapid growth is fueled by AJ’s focus on youth athletes, and sports teams. AJ brings a unique approach to intake, testing, prescription and training, and he’ll share his methods in this podcast.

00:5:00 – AJ’s story: MMA, bodybuilding, military deployment to Afghanistan and finding CrossFit

10:30 – AJ trains his first “sport-enhancement” client

12:05 – “Sport-specific” training vs “Sport-Enhancement” training

17:00 – How AJ works with local coaches

19:30 – Misconceptions athletes have when starting the program

22:20 – AJ programs for athletes all day. But he uses BoxProgramming.com for his CrossFit members. Why?

23:15 – We start walking through the client experience from the first inception point, through intake and assessment, and then programming. We start with an overview.

26:45 – We go back through his process in very small detail, from recommendations to testing to recruitment.

34:00 – AJ and I talk about his testing process. He’s currently refining his testing in preparation for rollout to other coaches, so there are some details we skim. But the original model came from mine, which you can read here. Two-Brain Coaching clients are given a copy to use verbatim, but you can replicate the idea without cutting and pasting.

You’ll also see the “report card” we give athletes at each test.

37:00 – What athletes actually need vs what they don’t

41:00 – How “sport-enhancement” programs differ from CrossFit youth programs

42:00 – Problems AJ is seeing with kids who play sports, and how he corrects them

44:30 – How AJ recommends PT, small group or large group training for different clients

46:30 – How AJ would get 50 more kids if he had to

49:00 – How AJ describes his program to coaches

51:00 – AJ offers to help other gyms assess and program for athletes to build their program

In Critical Questions, I answer, “I have lots of great ideas. How do I actually get the time to DO any of them?” I refer to the “10-Hour CEO” template tool.

Recorded on June 6, 2016.

Zach Even-Esh is the founder of UnderGround Strength.

I first encountered Even-Esh's work in T-Nation in 2005. The "Old School Training" article was less an epiphany about training methods to me than a potential business model: suddenly, I could foresee a way to own a gym without investing hundreds of thousands of dollars. This guy - Even-Esh - was doing it. He didn't have a pec dec, or treadmills; he had a corner of his dad's garage, some big tires and sandbags. And his athletes were killing it. 

In this episode, Even-Esh talks about his background, his future, and his commitment to train athletes ONLY. It's not the easy road, but he's never walked the easy road. This podcast is sponsored by Healthy Steps Nutrition and EpicRaceGear.com.

Timeline:

1:45 - Even-Esh talks about Schwarzenegger's Encyclopedia of Bodybuilding as the original source of training information.
 4:10 - "I was writing articles probably every other day."
5:00 - Zach's online certification is here.
9:00 - Zach talks about the "expensive" business course - $25/month - that spurred him to take action and become a "change maker."
11:30 - Zach goes to prison and writes about it.
14:45 - Zach finds the CrossFit message boards.
17:40 - Transitioning from training out of his house to his first location, and selling "Strength and Conditioning" to a market unfamiliar with the term.
19:00 - "Convenience and excellence are never found on the same road."
20:30 - Tough kids and soft kids.
21:00 - Tim Ferriss' "Four-Hour Body."
24:15 - How has the training of athletes changed since you started?
28:00 - How does Zach get new clients?
33:30 - Knowing what he does now, would he have taken the same path?
39:00 - How Zach coaches a broad spectrum of athletes in a group setting.
41:30 - How athletes are differentiated by physical AND emotional maturity, then separated without discouraging them.
44:00 - What advice would Zach give to someone opening a gym today?
46:00 - Zach's certification is here.
45:00 - In Coaches' Confessional, I talk about the big mistakes I've made when hiring staff and how I now answer the question, "How do I train new coaches?"

Recorded on May 25, 2016.