PERSPECTIVE : REFLECTIONS OF INDUSTRY LEADERS
PEOPLE AND PRUDENCE KEYS
TO WEATHERING STORM
The ups and ( lock ) downs of the past 18 months have taught us three very important lessons , writes fitness business coach Justin Tamsett .
I f you ’ re anything like me then you must be hoping we ’ re dreaming and that someone ’ s going to pinch us awake from this nightmare . Alas , we do get a daily reality check on the world we are living in , and it ’ s really pinching hard our businesses , our teams and our members .
In 2020 , it was all about adjusting to the ‘ New Normal ’. This year , we are in New Normal Version 2.0 , with a high probability that before the end of 2021 we will be up to Version 3.0 , with vaccine passports and the like .
The past 18 months have taught fitness businesses three very important lessons .
1 . Rainy day funds are vital
Cash businesses have been bitten on the bum ! Any PT , studio or gym that has been doing cash deals has been unable to prove a reduction in income and to therefore receive government assistance . They may have benefited for years , but this poor business decision has led to no cash in the business now , and thus closures and leaving the industry .
Whether you are an employee or run a business , you should tuck away a percentage of your income in a ‘ rainy day fund ’ for when you most need it . I suggest at least 10 % of turnover ( not profit ). For clubs this is imperative , in case competition comes along , you need big repairs or there is a pandemic ! For individuals , a tax bill , holiday or large expense is easier to handle knowing you have money tucked away . Without a rainy day fund you quickly become cash poor and highly stressed .
2 . Community transcends crisis
Many fitness businesses that are highly community-focused have managed to maintain loyal membership bases that have continued paying when locked down and transitioned into virtual products . Clubs where members had no sense of community or link beyond the use of equipment , however , have struggled to achieve this .
For club operators , the main retention strategy into 2022 must be to develop a community in which people know each other , support each other and appreciate the role your facility plays in holding the community together . Building a real community takes effort , but it will keep your members loyal and engaged .
3 . People need people
This brings me to the third main lesson : people will always need a gym or studio . I ’ m not denying there is a role for virtual in our industry , but for some demographics , like my 82-year-old dad who cannot wait for his gym to reopen , digital is not the solution . The solution for every business is person-toperson relationships - which is why I believe there will always be a place for clubs .
Whether that is the community , as previously discussed , or simply the recognition of members by our team , we all need that human connection . A number of my REX Roundtable members that operate clubs have personally called members to invite them back into their clubs . This human touch put concerned members at ease and helped them feel confident about returning .
The past 18 months have shown us just how quickly the playing field can change due to factors beyond our control . Vaccine passports will be another such change , with the decision being made by governments . This could create stress , but if you have learnt the lessons above , your community of engaged members will understand , and your mutually respectful relationship will lead to an ongoing healthy business .
In this state of uncertainty , our team , members and clients look for leadership . Your leadership must focus on what you can control , such as the factors above , not on fretting about the ‘ uncontrollables ’. Leadership means consistently focusing on what you can do rather than what you cannot . With this mindset , you will continually take small steps forward - and further away from your competition .
I ’ ve just pinched you . You are not dreaming . Don ' t pull the doona over your head . Now is the time to be the leader your team and clients need . Do so , and 2022 could be your best year yet .
Justin Tamsett
The Managing Director and business coach at Active Management , JT ’ s three decades in the fitness industry have encompassed roles from personal trainer and salesperson , to facility manager and multi-club owner .