The business side of the personal
training business
By
Robert W. Patton, FACSM
Personal training is booming!!!

Membership growth at 10%/ yr in clubs
– Personal training is top growth program
– There are 55,000 personal trainers in clubs

Home based fitness growth at 15%/ yr
– Personal training is penetrating this market
75% of our population is underactive;
69% of them want to start exercising
 There is a huge untapped market!!

Working with students/interns
preparing for personal training
careers
Consulting with a large
personal training business
Owning a small personal
training business
The business side of the personal
training business
Gearing up for your business
 Planning for your business
 Launching your business
 Keeping your business afloat

Gearing up for your business
Searching your soul
 Getting the right credentials
 Finding a good mentor
 Getting good experiences
 Walking the walk

Searching your soul
Are you cut out for this?
Good things
Bad things
 1. Impact
 1. Money isn’t great
 2. Variety
 2. Work schedules
 3. Flexible schedule  3. Travel time
 4. Freedom
 4. Lug equipment
 5. Growth
 5. Wear different hats
 6. Good working
 6. Financial risk
environment
Getting the right credentials
Credentials

Formal education
– Degree or non-degree programs

Certification -- beware!
– Generic vs specific; national vs local

Memberships
– ACSM, ACE, AFAA, NSCA, etc.
Continuing education
 Work experience

Finding a good mentor
A good mentor is critical to
success
Can be a teacher, employer, colleague
 Should develop a master-apprentice
relationship
 Will accelerate your learning curve
 Will shepherd you through your career
development

Getting good experiences
Good experiences are important!
Find the right setting early
 Find that mentor early
 Hold out for a good job

– large facility
– small facility
– Avoid job hopping
Walking the walk
“Walking the walk”

Practicing what we preach
– Are you actively training for something?
– Is your body composition OK?
– Do you eat healthy meals?

Looking the part
– Do you dress professionally?
– Is your grooming up to par?
– Is your posture acceptable?
Planning for your business
Doing your homework
 Figuring out who’s going to be the boss
 Finding the best location
 Figuring out how much it will cost
 Hoping for the best; planning for the
worst

Doing your homework
Market Analysis

Industry analysis
– Trends, issues, technology, political and
economic forces impacting the industry

Local market analysis
– Demographics and psychographics

Competitor analysis = niche analysis
– Clientele, equipment, facilities, fees,
programs, services, personnel, etc.
Mission Statement
Denton Country Club Fitness Connection
is committed to providing outstanding adult
fitness and nutrition services in a safe and
effective environment while empowering
clients to enjoy high level health, wellness,
and improved quality of life.
Figuring out who’s going to be
the boss
Business structures
Sole proprietorship -- you are the boss.
You also have all the exposure.
 Partnership -- you share the leadership.
You also share the exposure.
 Corporation -- you are probably not the
boss. You are protected from much of
the exposure to problems.
 Note: Get help with business planning.

Finding the best location
Large Commercial Facilities

Advantages:
– Good equipment, available client pool,
possibly reduced liability insurance
– Learn business systems (accounting, etc.)

Disadvantages:
– shared revenue with club
– reliance on member referrals
– restricted growth
Residential facilities
Includes homes, condos/developments
 Advantages:

– low or no overhead, nearby referrals,
higher percentage of fees retained

Disadvantages:
– frequently inadequate equipment, travel
time, program enrichment challenges
– Limited market penetration (10%), fewer
training hours per week
Small private facility

Advantages:
– Freedom of schedule, little travel time,
nearby referrals, increased percentage of
fees retained, more training time available

Disadvantages:
– Increased overhead, increased liability,
more management and operational
responsibilities
Finding out how much it will
cost
Capital needs for personal
training
Start up
 Operating
 Reserve


Note: Break even analysis is important!
Break-even analysis
INCOME
PROFIT
EXPENSES
$
LOSS
BREAK-EVEN POINT
TIME
Personal training business
expenses
EXPENSE
Office exp.
Insurance
Marketing
Payroll
Debt service
Maint. & Op.
SMALL
+
+
+
MEDIUM
++
++
++
++
++
++
LARGE
+++
+++
+++
+++
+++
+++
Hope for the best;
plan for the worst
Launching your business
Marketing ideas for startup
 Insuring against disaster
 Keeping good records
 Working with good people
 Getting good equipment
 Setting and collecting fees

Marketing ideas for startup
Start up Marketing Ideas
Position your business -- name
 Business cards
 Capability brochures
 Offer targeted services
 Offer enrichments to core services
 Promote your business

– Speaking, writing, selling
Insuring against disaster
TYPES OF INSURANCE
Property and Casualty Insurance:
Building
Contents
Liability (Independent Contractor, Event)
Business Interruption
Crime
Auto
Umbrella Liability
Employee Insurance
Workers’ Compensation
Group Health (Health, Cobra)
Life
Keeping good records
Essential Records

Member records
– Medical history, waiver, testing, contracts,
goals, workout data cards

Financial records
– Billing agreement, receipts, statements, tax
records

Miscellaneous records
– Payroll, equipment, legal, insurance,
marketing, safety, maintenance
Working with good people
Working with good people makes
life and business easier

Clients
– Qualified by income, commitment
– Convenient to your business facility

Partners and employees
– Credentials and experience
– Integrity and dependability
– Work ethic and follow through
– Service mentality and people skills
Getting good equipment
Equipment considerations

State of the art equipment is critical
– A “hook” is essential

Working with good vendors
– Good equipment selection
– Good maintenance and service
– Additional revenue on client referrals

Maintaining equipment
– Warranties, servicing, and maintaining
Setting and collecting fees
Fee considerations

Pricing policy
– Single rate vs package rate
– Late arrival charge, cancellation and makeup policy
– Avoid differential pricing

Payment Policy
– Prepayment vs billing
– Reconciling bills ---- workout cards
Keeping your business afloat
Dancing with them what brung you
 Motivating clients
 Programming ideas
 Safety tips
 Financial considerations

Dancing with them what
brung you
Showing loyalty and appreciation

Clients
– Birthday Recognition
– Spa or Training Treats

Vendors
– Exclusivity
– Cross-referrals

Employees
– Incentives, Continuing Education
Motivating clients
Motivational ideas

Managing clients
– Customizing programs, new fitness and
nutrition information, new equipment
available, and meeting special client needs
for travel, home, and work

Keeping clients
– Professionalism, evaluation, cross
referrals, personal involvement
Programming ideas
Programming ideas

Testing
– Determining fitness and health status

Evaluation
– Self renewing programs

Enrichment
– SPA days, bike trips, boot camps

Themes
– New year’s resolutions, sports training
Safety tips
Safety considerations

Be prepared
– Education, certifications, training

Anticipate problems
– Waivers, consent, emergency plans

Take special care
– Good policies, inspections, maintenance

Be a trainer and don’t practice medicine
– demonstration, technique, spotting
Financial considerations
Financial tips

Don’t overextend yourself
– Do a break-even analysis
– Keep 3-6 months expenses in reserve
– Save enough for taxes and insurance

Don’t give away the farm
– Be consistent and persistent in pricing

Plan ahead
Summary and Conclusions
Staying on the grow
 Enriching the services
 Having Fun!!!

Staying on the grow!
Enriching the services!
Have Fun!!!