With grave concern in his voice, a gym owner asked me the other day why there are so many fitness franchises popping up.
In his voice was clear frustration and anxiety.
The answer(s) can be uncomfortable.
The fitness market has been growing steadily for the last few years and the opportunities are more numerous than ever before.
As we outline in detail in our Executive Report, 5 Common Reasons Fitness Business Fail, & 3 Ways To Be The Most Successful In Your Area, the industry has been growing at a rate of 7% for the last few years. Most small gyms are not growing at this rate.
People’s needs and interest in fitness have changed dramatically. Most notably the explosion caused by CrossFit and similar types of fitness programs is driven by the participants enthusiasm, interest and the real measurable results they are getting.
Enthusiastic participants created a buzz. A huge buzz, a grassroots demand for more and more programming of this type.
Big box gyms responded and have added sections of their business which are attempts to meet the changing market needs for the small group experience – inside the big box gym. Some programs are successful, but most only meet a small percentage of the growing opportunity.
The small gym micro gym, boutique gym, whatever you want to call it, in most neighborhoods, has not grown fast enough to keep up with market interest and demands.
Entered the franchise. They see an opportunity and provide a proven business plan. A quick look at the Entrepreneur’s Franchise 500 reveals many fitness franchises in the list.
The franchise owner comes at the opportunity very differently. They have a huge investment of money, time and research in their purchase of the franchise. They approach the fitness business as a business first and foremost.
My friend has a right to be concerned.
The franchises opening in his area are there to win, to make money and take as much market share as possible.
So, what should he do? It comes down to re-framing how he looks at his business. The first step is to get an objective perspective, usually from an experienced outsider.
Then taking massive deliberate and specific action. It’s not necessarily easy, but it’s not that hard either. The small gym owner’s big advantage is that you are already established, and you have customers. Build from there.
We know you can compete with the franchise, but the key will be making the necessary changes in your organization. Smart business owners, those that succeed, do it all the time.
Failure to adapt and change is the kiss of an eventual death.
It all starts with education. To put it bluntly, there is no better education and starting point out there right now then our executive report.
