ATHLETES IN FRANCHISING
Annual revenue : Seven figures .
2017 goals : To open our fourth location and continue to improve the lives of our members .
Growth meter : How do you measure your growth ? I look at new members as well as retention . I look at where we are improving over this time last year . Are we in a position to open another location ? Are we simplifying things and getting better as a staff ? All these are things I look at as key areas of growth .
Vision meter : Where do you want to be in 5 years ? 10 years ? In the next 5 to 10 years , I want to open 10 locations serving 10 thriving communities . I want to see the impact of the many people we are helping .
How is the economy in your region affecting you , your employees , your customers ? We lose people from time to time . That ’ s the life of any business . Someone who has lost a job or has hit hard times may move out of our area or may decide to cancel their membership with us . We just have to continue to move forward . We continue to do our part and know that we can only control what we can control . The bright side is that we are a value-priced service for our memberships . Some people will keep their gym membership despite their circumstance . But for the most part , we have seen steady growth .
Are you experiencing economic growth in your market ? Yes , new businesses are coming into the areas we serve . We also have more people moving to our areas .
How do changes in the economy affect the way you do business ? Not much . We still market and advertise based on a percentage , so it ’ s all relative . We know we are in a people business . It ’ s all about understanding and communicating with people .
How do you forecast for your business ? In the fitness industry there are seasonal trends . We can project when sales will be higher and when they will be moderate . But we always have sales goals to continue to move us forward .
What are the best sources for capital expansion ? It depends . I like
BOTTOM LINE
SPORTS & BUSINESS
retained earnings . It ’ s just saving and putting aside money until you ’ re able to expand . There ’ s also commercial lending for things like equipment . It ’ s good if you have a lot of equipment needed . Just be careful not to bite off more than you need .
Experience with private equity , local banks , national banks , other institutions ? Why / why not ? Traditional lenders are harder since 2008 , but they are still willing to lend money . Just be prepared to have done your homework , researched your business , competitors , and have a business plan , collateral , and good credit . I believe a relationship with an institution is still good . But understand they can only do what they can do . If a business is risky , or you as a borrower are risky , then there ’ s only so much they can do . On the other hand , there are industry lenders who understand certain business models more than a traditional bank . It may be wise to research those in your given field .
What are you doing to take care of your employees ? Team members are like family . It is important to get to know them and make them feel a part of what we are building . Whether it ’ s holiday , birthdays , new babies , etc ., we celebrate that . It ’ s more than just sales goals and transactions . We are in a people business and we want to build relationships across the board .
How are you handling rising employee costs ( payroll , minimum wage , healthcare , etc .)? Employee costs are a part of business . We just focus on improving the business so these costs are covered .
How do you reward / recognize top-performing employees ? We have bonuses and incentives to recognize those who are performing well . Also , as we continue to expand we are always looking to promote .
What kind of exit strategy do you have in place ? In the next 20 years , to pass these businesses off to someone who has a passion for people and for fitness , someone who can improve the well-being of the people in the communities we serve . I ’ m not sure if that ’ s one person or a group of people . But I know we can only go so far before it ’ s time to let someone else take the reins . In the next 20 years , I hope to identify that person or group .
What skills or experience from sports have carried over to operating a business ? Being disciplined and having a relentless work ethic . As much time as we put into becoming professional athletes — the hours , the sweat , the ability to bounce back from failure — we must apply that into being the best business person we can be .
Which do you find more competitive , sports or business ? Business , by far . In sports , you know your competition . You understand the game , as you have been playing it all your life . In business , you must stay abreast of the changes in your business or you can become a dinosaur . Technology is advancing daily . Social media creates a low barrier of entry . You have competition from everywhere , because people have more access to information , both good and bad . You must stay true to your principles . You must continue to learn and get better in your field . And you must never stop helping people .
Why did you choose franchising as an investment option ? Franchising is a proven system . You just have to find the one that fits who you are , or that aligns with your interests and goals . I wanted an investment that allowed me to bring out the best in people while doing something I enjoy .
How did you transition from sports to franchising ? It was a natural progression for me . The franchises I have been affiliated with have both been in health and fitness . Being an athlete , you ’ re always expected to take care of your body and stay in shape . So I was always studying and learning new things that allowed me to become the best athlete I could become . I still take that approach into business and use what I have learned , while continuing to learn with my members , clients , and staff .
What was your greatest achievement in sports , and what has been your biggest accomplishment as a franchisee ? In sports , it has been my longevity . Although I have won team championships and many individual accolades , it was the ability to endure for almost two decades . I have already received numerous calls to play an 18th season . And although I have yet to decide whether to continue playing or not , the fact that there is still interest is validation that I am doing something right . And that ’ s what I would like to achieve in business : longevity . I believe I am on the right track in business . As a franchisee , to continue to open multiple franchises is a confirmation . However , the feedback I get from the members of the community is all I need . The fact that people thank you for coming to their area , or say they are so happy we are here , makes this business worthwhile .
40 MULTI-UNIT FRANCHISEE ISSUE I , 2017