Accountants for the Fitness Industry

Are you in the industry that is for wellness and fitness?

We love helping small businesses that work in the wellness industry .

As Accountants, we assist businesses that support the health and wellness industry and  understand what business owners need to do that makes their business unique and succeed in this space. Alternatively, we also see those that don’t achieve any significant results

As an owner you will be aware Wellness business will evolve.  To make your business succeed you need to understand your customer needs, capacity to pay and what the customer enjoys.

It’s all about Customer focus and  here are the essential customer needs summarised as those that:

  1. Focus on the customers long-term health and willing to pay
  2. Focus on a short-term goals
  3. Focus initial but quickly lose interest

It’s a well-known fact that gyms enjoy a % of customers who pay the monthly fee but never turn up. Your wellness business needs to be vibrant and a place that encourages customers to want to return and spend more. Why does your customer keep coming back?  You need your customers to engross your business .The strength of your business can be derived from the overall customer satisfaction based on:

  • You as the owner and your approach , from beginning to end
  • The Equipment and quality of the equipment
  • The greeting from you and your staff as they walk through the door
  • The range of offers
  • The ease of how they can communicate , book PT sessions , classes and renew
  • Social atmosphere – clearly people like to go to a gym to motivate themselves in the happy, friendly environment

KPIs should be developed to monitor these trends.  Profit and growing results is what needs to be achieved. As a small business owner, it’s essential to watch the metrics of your business.  For most gyms and training studios, the customers will be local. Convenience for your average customer is a significant factor when considering a gym.

Ways to make your gym more profitable:

  • Sell merchandise , products and shakes
  • Offer PT sessions
  • Offer specialised classes and workshops, e.g. Hot Yoga
  • Run weight loss clinics
  • Fitness assessments
  • Massage sessions

As an example let’s say you have a gym with 500 members and you can add $20 to the bottom line  per customer this can add $10,000 to income per year.

The wellness business has trends.  These need to be watched. These trends can make or break a business. Most popular services for gyms according to Fitness Australia is still Bodyweight training followed up by Personal trainers. 24-hour gyms will continue but will face greater scrutiny by regulators. Things like Instagram online training while regarded as a “fad” according to the industry will eventually die off.

Finally, let’s focus on costs.

Most significant costs to a wellness studio or gym can be summarised as:

  • Rent between 12% – 16% of revenue
  • Staff wages up to 33% of income
  • Capital expenditure and repairs – approximately up to 15% ongoing
  • Insurance 5%
  • Ongoing marketing – 5%

Critically, while arbitrary equipment maintenance and marketing can make or break wellness business, customers don’t respond well to old run down facilities. The sales pipeline needs to be kept full of membership and demand for services is correlated to enjoyment, the customer’s perception of the need to $$$ and the facilities provided .

We also help our clients who use software add on’s to XERO and MYOB such as MINDBODY that not only enables the customer a better experience but the statistical reports can help you develop a better understanding of your business

 

We assist a number of clients that run businesses  in surrounding suburbs such as Bentleigh, Moorabbin and Brighton

At Gartly we offer an ongoing wellness monitoring service to help small business keep their wellness business growing. Contact us if we can help you further by contacting us at info@ggassociates.com.au