By John Heringer, SUCCEED! Speaker
For many fitness professionals and studio owners, hitting the seven-figure mark is a big goal. It was for me too. However, there are some misconceptions about what it means to be a seven-figure studio owner.
Growing and scaling your fitness business to seven figures is exciting. But growth brings new business challenges, forcing you to grow both personally and professionally, as well. To better prepare you for the journey, here are insights into what it really means to earn seven figures in the fitness industry.
It’s Not All Rainbows and Unicorns
When other fitness pros find out my studio, Method3, is a seven-figure business, they automatically think I must not work anymore. Perhaps they think I spend my time sipping Mai Tai cocktails on a beach or that I’m on vacation nine months out of every year. That’s not the case!
My workload is definitely less than when I started and was wearing all the hats. And my schedule is much more flexible, thanks to the great team I’ve built. But I still work a lot because it fuels me and helps me continue to fulfill my purpose.
The difference is that I’m not working in the business as much as I once was. Now I work on the business with responsibilities that include reviewing and updating marketing, business vision and strategy, reviewing financials and budgets, performance evaluations and leadership training. I still lead my team, but I also train new leaders within my business.
Review Your Business Model
If your business model is broken, you’ll have trouble reaching the goal of seven figures in your fitness business. As author and businessman Stephen Covey would say, you must “begin with the end in mind.” Work backwards to see if your current model will help you achieve seven figures.
For example, review your model to determine how many clients—and at what monthly price—it will take to achieve seven figures. Are the numbers feasible and realistic? Do you even have enough square footage to make it happen? If not, re-think the model, considering what will truly help you build and scale your business.
If your business model is broken, you’ll have trouble reaching the goal of seven figures in your fitness business. As author and businessman Stephen Covey would say, you must “begin with the end in mind.”
Revenue Versus Net Profit
People like to assume that the (hopefully big) revenue number they see at the end of every year reflects the fruit of their labor. There is only one problem: revenue doesn’t matter.
What matters is your net profit. What did you keep at the end of the year? Net profit is the cash flow that:
- Pays you as the owner
- Allows you to pay off debt if you have any
- Allows you to save money in emergency reserves
- Allows you to reinvest in your company, clients and team.
Sure, it might mean you owe a bit more in taxes, but learn to live with that. A healthy net profit equals a healthy business, whether you’ve finally reached the seven-figure mark or you're still moving toward that goal!
Discover more about how to create your own seven-figure fitness business in John Heringer’s SUCCEED! session: How I Fought Burnout & Built a 7-Figure Fitness Business. Join us at SUCCEED! AFS' Business Convention & Expo, April 12-14, in Irvine, California.
John Heringer is the Chief Motivator of Method3 Fitness, a thriving fitness studio in San Jose, CA, and the founder of StriveApp.io, an online results tracking software for fit pros to help their clients achieve their goals and create social proof on autopilot. John has been in the fitness industry for over fourteen years and loves sharing insights into leadership, marketing and what it takes to build and sustain a purpose-driven business. Since early 2010 John has built Method3 Fitness into a seven-figure business with over 375+ clients and an amazing team dedicated to changing lives, one person at a time.