6 Common Pitfalls Owners Face When Managing a New Gym
Starting a gym, like any business, comes with unique challenges. Many new owners often encounter a learning curve as they adapt to the standard business operations of how to manage a gym in real-time.
The speed at which gym owners are expected to learn how to scale a business is daunting. From managing finances to ensuring member retention, it's easy for new owners to fall into common operational traps simply because they’re moving so fast.
Understanding and avoiding these operational and gym management pitfalls is vital for the long-term success of managing a gym (and your mental health).
So, keep reading this article to learn about the six most common pitfalls of new gym owners and how you can avoid them.
Pitfall #1: Poor Financial Planning
It’s easy for new gym owners to underestimate startup costs, overlook monthly expenses, or fail to plan for the inevitable slow periods. Without proper financial planning for your gym, even the most promising gym vision can quickly run into the practical troubles of cash flow.
Common Financial Mistakes
Underestimating Startup Costs: Carefully consider essential expenses like gym equipment, marketing, and staff salaries.
Not Having a Rainy Day Fund: You’ll inevitably be faced with unexpected expenses, such as equipment repairs or facility upgrades. Without a break-glass in case emergency fund, you may find yourself scrambling to cover immediate expenses.
Incorrect Pricing: Setting your prices too low or too high can make it difficult to cover expenses or attract members to your gym. You have to find the right balance, and you have to find it quickly.
You can proactively avoid these issues by creating a detailed budget that outlines initial and long-term costs. Regularly monitoring revenue and expenses will help you stay on track and help with gym management financials. Setting aside a rainy-day fund for unexpected costs is also important. Finally, price your services strategically to cover your expenses and generate profit.
Do you need some help with this? Snap Fitness offers budgeting tools and financial consultation services to help new gym owners avoid this pitfall. It’s one of the reasons new fitness entrepreneurs choose Snap Fitness as their partner.
Pitfall #2: Ineffective Member Retention Strategies
Many new gym owners adopt a growth mindset that focuses heavily on acquiring new members. However, don’t forget to prioritize current member retention, as well. As the saying goes, your best new business is your existing business, meaning retaining existing members is often more cost-effective than constantly seeking new ones. Your gym may struggle to maintain a steady revenue stream without effective retention strategies.
To improve retention, focus on building solid relationships with the gym members that are already attending. Try to get on a first-name basis with as many of them as possible, offer personalized fitness programs, regularly check in on their progress, and create an inclusive gym atmosphere that makes them feel like this gym was built for them. Using tools like Snap Fitness’s member engagement platform can help keep members engaged and returning for more.
Pitfall #3: Lack of Gym Staff Training and Management
Your staff is one of your gym’s most valuable assets. They’re tone setters and culture curators, and they represent your gym's vision to your members.
However, poorly trained or mismanaged staff can lead to inefficiency, low morale, and a negative experience for members. Your staff’s ability to deliver high-quality service is a significant metric of your gym’s success in the fitness industry.
Common Staffing Mistakes
Insufficient Training: Staff members may not be equipped to handle member needs or maintain the gym’s equipment without proper training. It also helps if they understand fitness best practices, injury prevention, and equipment utility.
Poor Management: Like with any other business, staff must have proper managerial oversight. Implement policies like periodic reviews or create an incentive structure. These can also be effective in retaining employees, as it's often more expensive to train a new staff member than to invest additional time and resources into honing your current staff.
So, take the time to invest in staff training. Ask them what they would like to see as employees of your company, implement that feedback, and watch as their positive experiences translate into high-quality experiences for your members.
Pitfall #4: Neglecting Gym Facility Maintenance
A tidy, clean, and well-maintained facility is crucial for member satisfaction. Remember, we’re talking about showers, bathrooms, recovery zones, and common areas that generate a lot of activity and sweat.
Many new gym owners overlook the importance of regular facility maintenance. Neglecting this aspect of your business can result in broken equipment, cleanliness issues, and a poor member experience—leading to high member turnover and a bad reputation online.
Have a regular maintenance schedule that ensures your equipment is always in top shape and your facility remains clean and welcoming. Investing in high-quality equipment from the start can reduce the frequency of repairs and improve the overall member experience. Snap Fitness has a proven track record of demanding clean, well-equipped gyms that keep members returning.
Pitfall #5: Failing to Track Key Performance Metrics
Like any business, you must track key performance metrics like member churn rate, average revenue per member, and profit margins to have a successful gym. The benchmarks for these successes should be a part of your business plan, but following through on the reporting and tracking of these is required in your day-to-day.
Without this data, it is difficult to make informed decisions about improving your gym’s operations and financial health.
Set clear key performance indicators (KPIs) for your gym and monitor them regularly to keep a pulse on performance. Snap Fitness supports clubs by tracking member feedback through Net Promoter Scores (NPS), offering valuable insights into member satisfaction. It's also important to stay on top of your club's online reputation by regularly checking Google and Yelp reviews, social media engagement, and other member feedback channels.
Pitfall #6: Inconsistent Gym Marketing Efforts
We touched on marketing in the section before, but it deserves its own category, too.
Marketing is necessary for attracting new members and building brand awareness. However, inconsistent marketing efforts or poorly targeted campaigns can lead to missed opportunities and low revenue.
A consistent marketing calendar with digital and local marketing strategies can attract new members and give you and your staff a creative outlet in your business. Marketing verticals like social media to engage with your community, promote special events, and highlight member success stories are low-cost and easy ways to advertise your gym from your phone! Additionally, focus on local SEO to ensure that potential members in your area can easily find your gym online. Encourage happy members to leave a review on Google My Business, and ensure your company’s digital presences are optimized, accurate, and on-brand.
Avoid New Owner Pitfalls While Managing a Gym with Snap Fitness
Let’s do a quick recap. As a new gym owner, try to avoid the pitfalls of:
Poor financial planning
Neglecting member retention strategies
Mismanaging or undertraining your staff
Skipping regular facility maintenance
Deemphasizing data tracking,
Being inconsistent with your marketing.
Snap Fitness is the ideal partner for dodging these pitfalls because we provide the tools, resources, expertise, and support new gym owners need to thrive. From budgeting and staff management to marketing and member engagement, Snap Fitness offers a comprehensive solution that helps gym owners navigate the complexities of running a successful fitness business and knowing what to look for when starting and managing a gym.
Want to Learn More About Our Gym Management Support and Solutions for franchisees? Give us a shout, and let’s talk.