Personal Training Business

Fundamentals

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Business Fundamentals

Fundamental purpose of a business is to generate profit by delivering a product or service to customers

A successful personal-training business plan involves:Creating a budgetEstablish revenue goals and expense targetsDevelop a marketing planHaving the ability to sell training sessions (asking

people for $) A thriving business is based on delivering a product or

service with honesty and integrity

Identify what type of business that would suit your needs:

Direct employee Independent contractor

https://www.acefitness.org/prosourcearticle/3608/six-questions-to-answer-before-opening-your

Direct Employee Model

A trainer is usually paid one rate when working a scheduled shift on the fitness floor and a higher fee when working with a client as a personal trainer

Pay rate can range anywhere from 40-70% of what the client pays the club or training studio

Factors to consider for Direct employee Model:

Does the facility attract the type of clientele you are interested in

Is it conveniently located for commuting Research the reputation of the facility Determine the requirements for employment:

Require specific education for certification Do they provide education or training to be successful Would you have to follow a standardized method or

protocol for program design Will you have to meet sales quota Is there alternative ways to make more money ie: leading

group classes ACE certified need to ask if they will require its employees

to sell dietary supplements

Advantages of Direct employee model Employer pays the cost of marketing to new

facility member, pays for equipment and repair fees

Employers provide benefits Uniforms Employer is required to submit taxes, W2 Clients travel to you If you have group fitness instructor (GFI) cert

and get to lead a group class this leads to more potential clients for you

Disadvantages of Direct Employee Model:

May have to conform to their uniform, program design

Fees may be lower than independent May have a requirements for minimum

number of hours to work They may set sales goals for you that you

will have to meet

**”Under the Table”

Some fitness facilities will prosecute trainers for shoplifting or trespassing if they are caught training under the table (taking money directly from a client without properly paying the facility)

This is illegal and unethical Could lose ACE credential

The Independent-contractor Model The personal trainer contracts his or her services to

a health club or training studio A trainer will pay either a per-client or monthly fee

to a health club or training studio Trainer is responsible for paying all of their own

operational costs, fees, repairs, clothing Trainer will need make decisions about how much

money to charge for their service Start a little bit lower than the norm then you can

raise Do the research to determine if the rate can

cover all of your expenses

Factors To consider for Independent-contractor Model

What facility will you use Research the facility, make sure they follow

your moral ethical code Research the local market to see if it has the

demographic to support the fees for a private trainer

Marketing expenses

Advantages of the Independent-contractor

Establish fees for training services based on experience

Appreciate the opportunity to move around and work out different places

Develop their own financial goals

Disadvantage of the Independent-contractor

Maintain their own business records and pay quarterly taxes. Do not just take cash and

not declare any income IRS has financial penalties

and possible jail time If you are renting a space you

don’t have control over protocols, hours of operation, equipment

You will need to travel between different locations throughout the day

Business Planning Take the time to conduct an assessment to evaluate

the client’s health risk factor and have them perform standardized test to determine current level of fitness.

Then use this info to build a program Take the time to create a detailed business plan that

establishes definitive goals Executing Summary

A brief outline of the business and an overview of how the business fills a need within the marketplace

Business DescriptionIncludes the mission statement, business

model, current status of the market, how the business fills a need within the market, management team

Business Planning: con’t Marketing plan

Specifies how prospective clients become paying clientsPromoting a service by communicating the features, advantages, and

benefits to potential clientsShould tell a story about how that service can enhance a person’s lifeBenefits of working with an ACE certified personal trainer

Operational PlanDescribes the structure for how a business will operate, including

responsibilities of employees Risk analysis

Use SWOT analysis (strengths, weaknesses, opportunities and threats Decision-making criteria

Demonstrates that the expenses for operating the business are worth the financial risks involved

Bell Ringer

https://www.acefitness.org/certifiednewsarticle/2222/secrets-to-making-money-as-a-personal-trainer-and/

Creating a Brand

It will help prepare the client for what to expect during the personal training experience

Examples: New members to a health club Brides to be Over 50 adults New mothers People preparing for an adventure Competitive amateur athletes looking for sport

specific training High school athletes seeking performance

enhancement for sport Small Group

http://www.acefitness.org/certifiednewsarticle/2877/small-group-training-a-practical-guide-to/

Ask yourself:What can be done to create and

communicate a unique brand identity that will attract the target demographic

Who is the ideal target customer Where is this target customer locatedWhat time of day will this customer be

interested in working with a trainerWhat marketing efforts can be used to reach

the potential customer to convert him or her into an actual paying client

Communicating the Benefits Next step is to create a strategy to communicate the benefits of using your brand of

training Give a complimentary fitness assessment to facility members Make business cards

Name, title, contact info including #, email, website, one line describing your brand Create a testimonial book/blog (get clients permission) Work with client in a visible area of the facility so other members can see the personal

training experience Create signage for your car (independent contractor) T-shirts for clients Create a website Start writing a fitness blog Maintain a social networking account Become group instructor Adherence program: ex: if client doesn’t miss a session they can earn a free one or get

a free t-shirt… Educational seminar Create a hashtag for your brand

http://www.acefitness.org/blog/5405/the-best-social-networks-for-health-and-fitness/

https://www.acefitness.org/blog/5129/5-reasons-to-grow-your-business-with-online

Marketing for Client Retention Try to develop a long-term exercise plan for the client based on

the concept of periodization Encourages client to work with personal trainer for a long

period time Use the technique of periodization/ACE IFT

Identify when the clients wants to “peak” in terms of physical fitness

Break down program into phases of varying intensityThe client benefits because they receive a structured long

term program based on the understanding of how the body adapts to the physical stresses of exercise

The trainer benefits because it creates a scientifically based method of client retention

The workout plan should then be broken into phases of varying intensity so that the client is progressing to the next level of intensity as their existing series of training session is getting ready to expire

Marketing for Client Retention

http://www.acefitness.org/blog/4908/customer-retention-tips-for-personal-trainers-and/

Marketing Through General Communication

Most common form of communication on the gym floor occurs through visual means as they work with other clients They will base perceptions of trainer’s skills on:

What they seeNeat appearanceProfessional but fun mannerDo you use time wisely

Every interaction should leave a positive impression It will take about 3-6 months of work to develop a

full client schedule

Financial Plan Establish a budget and revenue goals for

themselves (especially if you are starting your own business)

Set a monthly revenue budget based on your minimum expenses

Earning potential is limited only by the amount of time a trainer wants to work

SMART goals

SMART acronym is helpful for working with clients to establish their fitness goal but is also useful when applied to establishing financial goals for operating your personal training business

Specific: once a trainer determines how many sessions are needed per week to make a specific income, they can determine how many prospective clients they need to successfully market the service. Ex: how many sessions are needed to meet an

annual income goal of $50,000, assuming the personal trainer earns a net of $40 per session?Yearly income goal: %50,000Weekly income: $50,000/50 weeks = $1,000Weekly training session goal: $1000/$40 net per

session = 25 sessions/week

SMART goals Measurable: keeping track of number of sessions rendered

per month, week or day or the amount of income earned per week, month or quarterly

Attainable: establish realistic goals for income and number of sessions. If you work to many days there is a high likelihood that

they will not make time for their own exercise programs or experience burnout

Relevant: are your goals relevant to the wok environment It takes time to establish business and develop a steady

client baseExample: a trainer has a pay rate of $45/session, they

would need to conduct 35 training sessions per week, 50 weeks per year to make $78, 750

Time-bound: how many sessions will you need to have per day or week