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5 Myths That Keep Gym Owners Stuck Under $30K (Pt. 3) · Gym Business Coach Podcast

• 0:08
  [SPEAKER_01]: You are listening to the built-to-grow podcast delivering the knowledge in all things, fitness, business We help jimrollers win, hear your hosts, ten lions, and Randy Axton
• 0:27
  [SPEAKER_02]: uh... right welcome back to the built-grow podcast and her host him lie is joining studio by brandy angst him with a man excited for the weekend both of our circle should know i had to do it for one same thing you know it's funny is we gave those out the gross on and get one and i think that there's the double x is a way should know that they just any more double x what
• 0:49
  [SPEAKER_02]: bunch of big guys we're going to continue on with our series about the five minutes that keep Jim motor stuck below the $30,000 month mark and kind of recap on
• 1:03
  [SPEAKER_02]: why we're doing this is we've we've definitely found over the years there's a line in the sand between the gyms that are under 30,000 a month and again recurring revenue this isn't a one month you know it's 40 then it's 20 it's just like kind of like standard under 30 and those that are standard over 30.
• 1:22
  [SPEAKER_02]: And it really comes down to survival versus growth.
• 1:27
  [SPEAKER_02]: Sure.
• 1:27
  [SPEAKER_02]: Survival versus scale.
• 1:29
  [SPEAKER_02]: Survival versus, I mean, under 30, you're surviving.
• 1:32
  [SPEAKER_02]: There's just not enough cookie crumbs left once you start paying all your bills and there's just crumbs left.
• 1:40
  [SPEAKER_02]: And what we're trying to do for you Jim owners is to make sure that you have enough cookies to serve.
• 1:47
  [SPEAKER_02]: your family, your self, your lifestyle growth in retirement and stuff like that.
• 1:53
  [SPEAKER_02]: You spend 10, 15, 20, 30 years sometimes doing this.
• 1:59
  [SPEAKER_02]: And if you don't make enough money,
• 2:03
  [SPEAKER_02]: then you're just getting better.
• 2:04
  [SPEAKER_02]: I mean, just you just kind of wasted your time.
• 2:07
  [SPEAKER_02]: I don't know.
• 2:08
  [SPEAKER_02]: I mean, hey, Tim, I'm not in for the money.
• 2:10
  [SPEAKER_02]: I've heard that before.
• 2:11
  [SPEAKER_00]: Not so, yeah.
• 2:12
  [SPEAKER_02]: And that's totally fine until you have to pay your bills, until you have a family emergency.
• 2:18
  [SPEAKER_02]: Until you have a roof leak or something, you've got to repair and you don't have the money.
• 2:24
  [SPEAKER_02]: You'd need the money, money makes the world go around.
• 2:26
  [SPEAKER_02]: So money's not a bad thing.
• 2:28
  [SPEAKER_02]: You don't have to do it for the money, but you should be making money in this business.
• 2:33
  [SPEAKER_02]: So anyways, we're one at which one of, you know, kind of, I don't know, two debt horn or beat that drum or whatever you want to call it.
• 2:40
  [SPEAKER_02]: Because we need to make this a thing in this industry.
• 2:46
  [SPEAKER_02]: We need to, we need to shun the status quo, which is very, you know, this is part of our motto at Iron Circle, is that we are unsatisfied with what is the normal.
• 2:56
  [SPEAKER_02]: And then what is the normal in this fitness industry for microgms is this under 30.
• 3:02
  [SPEAKER_02]: In fact, even under 25-ish.
• 3:04
  [SPEAKER_02]: Right around there, yeah.
• 3:07
  [SPEAKER_02]: Per month in revenue, and we,
• 3:09
  [SPEAKER_02]: I'm telling you, that's not enough.
• 3:11
  [SPEAKER_00]: Well, when one stat that I had that I spoke to at the growth summit, 25,000 in recurring revenue on average leads about $48,000 a year for the owner of the salary.
• 3:21
  [SPEAKER_00]: Okay.
• 3:22
  [SPEAKER_00]: And so that, that I think is an important thing.
• 3:24
  [SPEAKER_00]: As we talk about the lifestyle and what you, you know, as an owner, want for your family and what why are you doing this, you know?
• 3:30
  [SPEAKER_00]: And if $48,000 is,
• 3:33
  [SPEAKER_00]: it for you, you know what I mean?
• 3:35
  [SPEAKER_00]: Is that enough to pay for the lifestyle to have some reserves to be able to, you know, whether they're stormed.
• 3:42
  [SPEAKER_00]: Literally sometimes.
• 3:43
  [SPEAKER_02]: I don't know.
• 3:44
  [SPEAKER_02]: I don't know where you have to live that 48,000 before taxes before taxes is going to be enough.
• 3:53
  [SPEAKER_02]: let's just say 48,000 before taxes after taxes, let's just do some math, let's take off, you know, 15 grand, whatever, do the math, 15 grand, so 33,000, you have 33,000.
• 4:09
  [SPEAKER_02]: rent a rent at $3,000 you're already at $36 like how do you eat how do you you're forced to a two-in-commossal or you're working a full-time job outside of your story or you ever roommate or whatever in your single guy and you're just you know eating ramen and stuff like that I mean it's it's all good when you're when you're young and you're growing and you're putting the time in but what I'm saying is that 10 30 40 you know 10 20 30 years down the road you're going to
• 4:37
  [SPEAKER_02]: hoping that these myths don't derail that journey.
• 4:40
  [SPEAKER_02]: So let's get into myth number three, which says, you know, hey, I'm the owner.
• 4:45
  [SPEAKER_02]: I've got to do everything myself or I do it the best, um, you know, so I have to do it.
• 4:53
  [SPEAKER_00]: And what my clients are here to see me.
• 4:57
  [SPEAKER_02]: That's another one.
• 4:57
  [SPEAKER_02]: That's put it.
• 4:58
  [SPEAKER_02]: Yeah, that's just as big.
• 5:00
  [SPEAKER_02]: That's a that's actually probably the biggest one.
• 5:02
  [SPEAKER_02]: Um,
• 5:03
  [SPEAKER_02]: Let's first, for example, in a gym, the work, so many needs to do it.
• 5:08
  [SPEAKER_02]: Okay, so we have to realize that this isn't something that you can automate without a human being, right?
• 5:15
  [SPEAKER_02]: So I'm going to train the clients.
• 5:17
  [SPEAKER_02]: So I'm just going to mop the floors.
• 5:19
  [SPEAKER_02]: Somebody got to take the trash out.
• 5:21
  [SPEAKER_02]: Somebody's got to make the sales calls and all the things.
• 5:24
  [SPEAKER_02]: There's human beings that, well, I guess you could automate the back of the last one.
• 5:27
  [SPEAKER_02]: But like, there's a human being there, especially when it comes to the, if you're running a training gym, you have to have a coach on the training floor.
• 5:35
  [SPEAKER_02]: And that's the delivery of your service.
• 5:38
  [SPEAKER_02]: And let's just say, the Jim owners, the one training the clients all day.
• 5:44
  [SPEAKER_02]: Well, who's going to work on the business if you're servicing all of the clients?
• 5:51
  [SPEAKER_02]: You got in this business most likely because you enjoy training.
• 5:54
  [SPEAKER_02]: Most likely, right?
• 5:55
  [SPEAKER_02]: Hey, I enjoy training.
• 5:56
  [SPEAKER_02]: I'm great at it.
• 5:57
  [SPEAKER_02]: I need to go train clients and you were good at that.
• 6:00
  [SPEAKER_02]: And somewhere along the way, you thought maybe the next step was opening a gym.
• 6:05
  [SPEAKER_02]: So your habits are all based around the training floor.
• 6:09
  [SPEAKER_02]: But unfortunately, all of the other things are what draft the business for.
• 6:14
  [SPEAKER_02]: I mean, you have to, like that's the foundation.
• 6:16
  [SPEAKER_02]: That's your hotel that has beds.
• 6:18
  [SPEAKER_02]: You have to have training, right?
• 6:21
  [SPEAKER_02]: And it should be the best experience, but the owners, owners, owners, owners, you shouldn't or shouldn't have to be the one training clients all day.
• 6:29
  [SPEAKER_00]: You know that it shouldn't have to be.
• 6:32
  [SPEAKER_00]: When we worked with Mike McCallow, it's he led one of our experiences.
• 6:36
  [SPEAKER_00]: The first thing that he said was, as a business owner, your job is job creation, not fulfillment.
• 6:43
  [SPEAKER_00]: and that to me that resonated ever since i mean because at the end of the day you know i i'm i talk to jim owners every single day that are five ten fifteen twenty thirty years in the business that are still on the training floor
• 6:57
  [SPEAKER_00]: because not only, I mean, it's one thing if you enjoy it, but they haven't created a way out of having to do it.
• 7:03
  [SPEAKER_00]: And that's the thing, right?
• 7:05
  [SPEAKER_00]: Like you said, the choice should be there.
• 7:08
  [SPEAKER_00]: If you decide to work with a few clients or you have a couple hours a week or something, by all means.
• 7:13
  [SPEAKER_00]: I mean, nobody's here to tell you, you shouldn't be doing what you enjoy.
• 7:17
  [SPEAKER_00]: But if you build a business that's,
• 7:19
  [SPEAKER_00]: centric, the hub of, and you can't delegate that to a coach or somebody else to do those different tasks in the business, you're always going to be the one in fulfillment, working in the business into your point, nobody's driving the shit.
• 7:35
  [SPEAKER_00]: What if you leave the opportunity for growth and you leave the opportunity for working on the business to whatever is left, it's going to be the lowest thing on the total.
• 7:43
  [SPEAKER_00]: It's the lowest priority and your growth is going to be probably
• 7:47
  [SPEAKER_00]: You know, completely dependent on the time and energy that you have left, and right should be the inverse of that in my opinion.
• 7:55
  [SPEAKER_02]: Here.
• 7:55
  [SPEAKER_02]: So a lot of times the trainer, the gym owner does the training because there's no money left to pay a coach.
• 8:01
  [SPEAKER_02]: I would argue that in order for you to make this work, you have to pay yourself as a trainer when you're training and as an owner all the other times.
• 8:13
  [SPEAKER_02]: So in order for you to be able to replace yourself, you have to have page yourself to begin with.
• 8:19
  [SPEAKER_00]: Correct.
• 8:20
  [SPEAKER_02]: So that when you pull yourself out, their money's still there to pay the next guy or girl, right?
• 8:24
  [SPEAKER_02]: So if you're not paying yourself and you're training all day, you're really like you.
• 8:30
  [SPEAKER_02]: I double-way me because now you'll never get out.
• 8:32
  [SPEAKER_02]: Your path will never be there.
• 8:33
  [SPEAKER_02]: So you have to...
• 8:35
  [SPEAKER_02]: even if it's half of what you would normally pay regular coach got to start somewhere.
• 8:40
  [SPEAKER_02]: You got to start paying yourself for those training hours so that eventually you start paying yourself what you could equalize a coach for and then swap it out.
• 8:50
  [SPEAKER_02]: So that's really the key to this whole thing because you got to pay yourself for those training hours so that when the time comes and you do find a coach you can swap out of that.
• 9:00
  [SPEAKER_00]: Yeah, and I think the myth or, you know, speaking to this as a myth, the biggest thing is
• 9:06
  [SPEAKER_00]: Money is a tool.
• 9:07
  [SPEAKER_00]: It's a, it's, it does allow you the opportunity to pay somebody else to do that work, right?
• 9:12
  [SPEAKER_00]: It's leverage in a business for business owner to then be able to work on the business.
• 9:16
  [SPEAKER_00]: And that to me is, it happens because, you know, when you buy that time back and you put a coach in that role, it's not like you're now sitting in the couch, collecting paychecks or you kick your feet up and you just hit coast.
• 9:28
  [SPEAKER_00]: You know what I mean?
• 9:28
  [SPEAKER_00]: Like the goal is to then take that time that you've bought back.
• 9:33
  [SPEAKER_00]: and apply it to other income-producing activities.
• 9:35
  [SPEAKER_00]: Other areas that you can be spending your time or that's gonna accelerate the growth of that business.
• 9:41
  [SPEAKER_00]: And then that's really where like the tipping point comes into play, right?
• 9:44
  [SPEAKER_00]: Now you have that time dedicated to the growth and the scalability of the business.
• 9:50
  [SPEAKER_00]: And if you fill that time with the things that create growth, your business will continue to grow.
• 9:55
  [SPEAKER_02]: So let's prioritize it.
• 9:57
  [SPEAKER_02]: Yes, exactly.
• 9:58
  [SPEAKER_02]: So if,
• 10:01
  [SPEAKER_02]: Both jobs have to be done.
• 10:02
  [SPEAKER_02]: The growth job in the delivery job, right?
• 10:04
  [SPEAKER_02]: If we're saying that is true.
• 10:07
  [SPEAKER_02]: If you're going to grow your business, you need to have somebody focus 100% or at least 80% of the time on growth, growth activities, marketing, channels, outreach, closing deals,
• 10:17
  [SPEAKER_02]: up, up selling referral, it's all the things guys.
• 10:20
  [SPEAKER_02]: I mean, we can go all down.
• 10:22
  [SPEAKER_02]: But if you don't have anybody there, and you're training all day over here, if you're going to not leave the training floor, you need to find somebody that's going to be over here in that role.
• 10:31
  [SPEAKER_02]: The roles have to be filled.
• 10:32
  [SPEAKER_02]: The jobs have to be done.
• 10:34
  [SPEAKER_02]: And again, you tear very, very first point was if you only allow what's left of that your time to go towards the growth, you're going to stay stuck forever.
• 10:43
  [SPEAKER_02]: It's just we defined both roles need to be filled, or both roles need to be done.
• 10:49
  [SPEAKER_02]: Can it be the same person?
• 10:51
  [SPEAKER_02]: Yeah, 50% each, right?
• 10:54
  [SPEAKER_02]: We're 80 on the delivery and whatever's left on the growth.
• 10:58
  [SPEAKER_02]: So if you ever want to get out of this role, I think the two main things you don't have to do it all yourself is the whole key to this.
• 11:05
  [SPEAKER_02]: Move yourself into the growth role.
• 11:08
  [SPEAKER_02]: Replace what you should have been paying yourself over there with a coach.
• 11:13
  [SPEAKER_02]: Focus 100% on growth so that you can pay more for coaches and get more coaches and then even replace yourself in the growth thing and move up to the next step.
• 11:24
  [SPEAKER_02]: You do not have to do everything yourself.
• 11:26
  [SPEAKER_02]: You should it be doing everything.
• 11:27
  [SPEAKER_02]: In fact, if you do everything yourself, you're going to stay stuck.
• 11:30
  [SPEAKER_02]: That's really the thing.
• 11:31
  [SPEAKER_00]: And I think it's a limiting belief, right?
• 11:34
  [SPEAKER_00]: I think the problem most gym owners experience is when they do bring in or if they want to bring in a coach and things like that, they don't know what to do with that coach.
• 11:42
  [SPEAKER_00]: You know, let's the job, the task changes.
• 11:44
  [SPEAKER_00]: You, you as what you're delivering for the business.
• 11:46
  [SPEAKER_00]: Yes, you're working on the growth components now, but then you have to become the leader and you have to coach them up.
• 11:51
  [SPEAKER_00]: You have to make them better at their job.
• 11:54
  [SPEAKER_00]: If you're really great at training and you bring in a coach, that coach should be replicating you bring to the table.
• 12:01
  [SPEAKER_00]: Coach them up on that difference, right?
• 12:03
  [SPEAKER_00]: If you have a limiting belief that clients are only gonna work out with you, it's because you've created that.
• 12:09
  [SPEAKER_00]: It's not because that's a fact, right?
• 12:11
  [SPEAKER_00]: And we've seen it at the time of time again.
• 12:13
  [SPEAKER_00]: When a Jim owner embraces that mindset and that understanding brings in that person, it's so funny how the clients, they don't care that much, right?
• 12:24
  [SPEAKER_00]: Like as long as you do the quality of the coaches there and you're actively coaching them up to that role, it's not a matter of who's doing the work.
• 12:32
  [SPEAKER_00]: And one of our big ethos is that the brand owns the programming, the brand owns the client experience, the coaches the one fulfilling on it.
• 12:40
  [SPEAKER_02]: and if the you as the owner is dictating what that the client experience looks like it's still your responsibility you're just not the one on the floor doing the workout yeah one of the best ways to to make sure that the handoff and the transition goes well for the new coaches when you do hand that client off because you do have the relationship with the client right you've been trained them since you know for five years or whatever and it's it is it's difficult for that client to sometimes
• 13:06
  [SPEAKER_02]: except a trust or trust right so you just tell Mrs. Johnson listen Mrs. Johnson I you know it's time for little Joey to take over but I do want you to know that I'm gonna be here watching over everything you're in good hands I've trained of myself this guy you know I would I would let you know even say this I would trust little Joey to train my own mom right and if you say all those things all still be here I'm overseeing I trained him I trust him
• 13:34
  [SPEAKER_02]: then the transition is going to be.
• 13:36
  [SPEAKER_00]: Yeah, you have to edify the coach is coming in.
• 13:38
  [SPEAKER_00]: You have to kind of a point them, right?
• 13:39
  [SPEAKER_00]: Is like the next to take over.
• 13:41
  [SPEAKER_00]: That's really the key to this thing.
• 13:43
  [SPEAKER_02]: Big time.
• 13:44
  [SPEAKER_02]: So listen, Jim owners, that's definitely a myth.
• 13:46
  [SPEAKER_02]: You do not have to do everything yourself.
• 13:48
  [SPEAKER_02]: In fact, if you do do everything yourself, that is the reason you're going to be stuck under 30,000.
• 13:53
  [SPEAKER_02]: Hopefully that helps you guys go back and listen to the first two, and then we have two more coming your way.
• 13:57
  [SPEAKER_02]: That's it for this episode.
• 13:58
  [SPEAKER_02]: Until next time, keep changing lives.
• 13:59
  [SPEAKER_02]: I'll see you on the next show.
• 14:02
  [SPEAKER_02]: Alright, thanks for listening to another episode of the built-grilled podcast.
• 14:05
  [SPEAKER_02]: If you want more help growing your business, join our free Facebook group, Profit Accelerator, helping training gyms grow to $30,000 a month and beyond.
• 14:14
  [SPEAKER_02]: We'd love to see you there, go check out the show notes for the link, and keep building something great, and we'll see you in the next episode.