How to Make $1,000,000 Salary as a Gym Owner

Our hero today is Chris Cooper, a fitness business expert. Multi gym owner and author of the massively successful book and consulting company, Two Brain Business. In this episode, Chris reveals three business models that can sustain profitable gyms. If you’re a personal trainer, he also unpacks business models that help you work less while living the lifestyle you want.

With the fundamentals of business down, Chris then shows how you can go from six figures a year to building a multi million dollar business. In other words, a business that doesn’t just bring in a million dollars in gross, but makes enough to pay its owners over a million dollars a year too. You don’t want to miss this episode.

Transition from Technician to Entrepreneur

Chris’s tale is one of perseverance. He narrates how gym owners often fall prey to the ‘technician’s curse,’ obsessed with perfecting their craft, yet neglecting the business side. This all-too-common scenario results in gym owners being ensnared in day-to-day operations, curbing the scalability of their enterprises.

The Value Ladder Principle

The value ladder concept is pivotal, Chris implies. It’s about investing in roles that save time and gradually increase in cost and impact on the business. Initiating with a cleaner to reclaim an hour can lead to more strategic tasks that can propel business growth.

The Art of Semi-Private Training

In the realm of personal training and gym models, semi-private classes are rising stars. They offer the allure of individual attention with the benefit of group camaraderie.

Chris underscores the effectiveness in matching clients with similar levels, advocating that this model is a win-win for client progress and business profitability.

Prescriptive Model for Sales

When it comes to sales, simplicity reigns supreme. Offering too many choices can overwhelm potential clients. Presenting a prescriptive model with three tailored options empowers clients to make decisions without feeling burdened by possibilities.

Building Blocks for Gym Growth

Chris discusses six key business model components, including average revenue per member and member retention. These components are:

1. Average Revenue per Member (ARM): This is the average amount of money a gym earns from each member per month. It’s crucial to know how much each client is worth to the business. The goal is to increase the average revenue per member to a target, for example, $205 per month.
2. Length of Engagement (LEG): This metric measures how long members stay with the gym. It’s important to have retention strategies because even if members are valuable, frequent turnover can make a business unstable. The goal is to retain members for an extended period, such as at least two years.
3. Effective Hourly Rate (EHR): This component concerns the gym owner’s or workers’ time and what activities they are doing. It’s about maximizing the income generated from the time spent working in the gym.
4. Number of Clients: The total number of clients has a direct impact on the revenue. More clients generally mean more income, as long as the quality of service remains high.
5. Return on Investment (ROI): This is about understanding how well investments in the business, such as equipment, space, and staff, are paying off. The right investments should increase the business’s revenue and profitability over time.
6. Net Owner Benefit (NOB): This is the actual profit that the owner takes home after expenses. It reflects the financial health of the business and the owner’s personal income from the gym.

Chris Cooper emphasizes the importance of understanding and optimizing each of these components to grow the business. He suggests starting with improving client value and retention before considering additional strategies for growth.

Stepping stones include optimizing client value, boosting retention, and leveraging the ‘150 model,’ which involves having 150 clients with an average monthly revenue per member of $205.

Path to a Million Dollar Gym

The transition from a six-figure income to a millionaire requires diversification and investment. Most importantly, you must scale the profit tactics expounded upon in this article.

Connect with Chris Cooper

For fitness mavens who wish to journey further with Chris’s wisdom, his books on Amazon or his website twobrainbusiness.com serve as treasure troves of guidance, alongside his facilitation of the gym owners’ hub at gymownersunited.com.