What is a Professional Gym
We teach independent gym and boutique studio owners how to build a profitable business with the greatest long term return on investment.
Our business model is a relationship-based approach designed to retain both clients and coaches, and to provide coaches the opportunity to become career coaches, who earn a professional wage.
When clients and coaches are properly serviced with a long term mindset, independent gym owners can beat franchise gyms, and build sell able assets they can one day retire on.
Watch this video for a crash course
The 3 Key Concepts that make up the foundation of our business model
1. All business decisions must work for:
- The client
- The coach
- The business
This is our prime directive. If decisions aren’t made this way, one party will suffer, and the business will ultimately fail.
2. 6 Key Performance Indicators (KPIs) to measure success
Since 2005, we have been seeking data-driven business solutions to find observable, measurable and repeatable best practices. These years of research have helped us uncover the 6 KPIs—key performance indicators to measure client, coach and business success.
What clients need to succeed:
KPI #1: Churn: Are your clients staying at your gym for years and years?
KPI #2: Average client value (ACV): Are your clients paying for a high value service?
What coaches need to win:
KPI #3: $/ Coach hour: Can your coaches make more per hour than a journeyman electrician?
KPI #4: Total coach pay: Are they able to earn a professional wage?
What the business needs to win:
KPI #5: Business EBITA: Earnings before interest, taxes and amortization (i.e. are you making a 20% + profit?)
KPI #6: Asset value: Are you building a sell able asset, so you can retire and sell your business one day at 5 X EBITA?
3. The Future of Fitness: The Professional Gym and Preventative healthcare
Three billion people around the world are overweight or obese. $US 2.5 trillion is spent annually on diabetes treatments. Professional coaches have the opportunity—and quite frankly are needed—in order to make a real difference in that growing health crisis, now and in the future.
We have known about the importance of diet and exercise for health for more than a generation—and for their ability to put these diseases into remission—yet our healthcare system perpetuates pharmaceutical solutions to these problems. The result: People continue to become less and less healthy.
The question begs to be asked: We know the solution, so why have we been unable to do so?
Our answer is to create a class of true fitness professionals to help people regain their health and to save our healthcare system from going bankrupt.
By fitness professional, I mean someone who has been coaching for a long time, who has done a lot of training and education and is well-respected in their community. They have connections to the medical community—to doctors and physiotherapists, who consistently refer clients to them. They’re coaches who make a professional wage—$80,000-$100,000-plus year-after-year. Just like a physiotherapist or a journeyman electrician, or an engineer.
When fitness coaches become professionals, they can work with other health practitioners—doctors, physiotherapists, Registered Dietitians, osteopaths, RMTs—and together we’ll be able impact the healthcare crisis we face today to combat obesity and Type 2 diabetes.
In short, professional coaches are the answer to bridging the gap between healthcare and fitness.
After 15 years, I’m pretty proud of what we have created in Vancouver. We earn a minimum of 20 percent business profit each year, our client retention rate is between 85 and 87 percent, and our six full-time coaches, who have been with us for 7 to 14 years, earn between $60,000 and $110,000 a year. That’s what a professional coach, and a professional gym, looks like. And the world needs more of them.
Since the founding of Madlab Group we have helped hundred of gyms transform themselves and their coaches into true professionals.
Check out the 5 shifts required to turn your business into a professional gym.