My name's Joshua Fleming andwelcome to this presentation that I'm calling The Top 10 Pitfallsof Converting Your Gym to 24/7.
I hope you enjoy it.
[0:11] [music] [0:38] OK.
Are you ready to discover whatthe top 10 pitfalls of converting your gym to 24/7 are? OK.
I'm happyto share it, so make sure you take good notes with us.
If you haveany comments or questions, you can just leave them down belowthis video.
Numbers that benefit you.
[0:56] Since I'm presenting this, you shouldknow that I know what I'm talking about.
I've converted over 100gyms successfully to the 24 hour model.
I don't know how many gymshave converted to the 24 hour model because of my efforts over thepast five years.
[1:11] I'm sure it's well much bigger thanthat number.
These numbers benefit you becauseif you convert to 24 hour gym, your members on average are goingto get about 3,000 extra hours each year to use your facilityand it's not going to increase your overhead.
It actually reducesyour overhead.
You're going to be able to save ten thousand plusdollars each year.
[1:43] The reason I say save, instead of profitis a lot of business owners just don't understand profit.
They're not paying themselves a paycheck, officially.
They don'thave systems to put in place.
If they are paying themselves apaycheck, it may be too much or too little.
I want you to just thinkabout what an extra $10,000 in your bank account would mean.
Wouldthat get you excited? [2:09] If you had $10,000 more in your savingsaccount or in your kid's college fund, would that make a difference?If it does, then you should really pay attention to this presentationbecause I'm going to show you how you can save much morethan $10,000.
Actually, by the end of this presentation,if you really take to heart all the lessons I will teach you here,you'll going to be able to save hundreds of thousands of dollarsover the span of your business.
[2:36] We're going to do even more than that.
If you're always in your business working, instead of enjoyingthe fruits of owning a business.
Then, what's the point? You're goingto be able to cut the time down in your gym by 50 to 75 percentby becoming a 24 hour club, which will allow you both to have themoney and time to enjoy your life.
[3:01] If you stay until the end of this conversation,I'm going to give you a concept that I call the 24 HourPremium Security Concept.
This concept will save you on average50 to $100 a month and over the span of you business, you'retalking about tens of thousands of dollars.
It's a very importantconcept and I'm going to give that to you for free at the end ofthis presentation.
[3:26] If you are already a 24 hour gym, thisis still going to benefit you.
There's going to be stuff inhere that you're going to immediately be able to leverage.
If you aren'tyet a 24 hour club and you're thinking about converting, thenthis information is crucial to both success and failure of yourbusiness.
Pitfall number one to consider is not consideringall the benefits.
Not understanding all the benefits, so there'sthree main benefits that you get.
[3:58] There's probably close to a dozen benefitswe could work out, but three main benefits.
The first benefitis for your customers and your clients.
They get extratime to use your facility, which this positions you differentlyin the marketplace, if you are not a 24 hour club right now.
Thenext is it allows you to cut overhead.
When you have a 24 hour gym,you literally could run a manless operation.
A shadow crew, ifyou wanted to.
[4:25] Not suggested for most business models,but you could do that.
Cutting that overhead allows you toput that income into your pocket or into your business.
If you don'thave money to market your business right now, imagine if you couldstart cutting overhead in half.
You could use those extrafunds on your business.
The next thing is your autonomy.
As a businessowner owning a company, the idea here is that if you wantto own a job that's one thing.
[4:54] I'm not talking to people that wantto own a job.
I want to get my message to those that want to own acompany and company is a group of people with a shared vision thatare working to facilitate an end goal.
They all benefit from this corporatepartnership.
If you want to jump from owning a job to owninga company, where you have people supporting you and backing you,then in this day and age you really need autonomy.
[5:33] You need be able to stretch your wings,and be able to really run your business from anywhere quitefrankly.
You can almost run any business from anywhere.
Theowner of the business, the company, can almost run it from anywhere.
That's not all businesses, but most businesses nowadays.
[5:53] You get autonomy.
You can unplug, andyou don't have to be in your business all the time.
You are ableto cut expenses, and you are able to give your customers and prospectsmore value for the same price if you chose to do that.
[6:12] Pitfall Number Nine is "Worrying aboutall the wrong things.
" How do you avoid this pitfall? Whatyou simply need to do is get a piece of paper out, and draw a lineright down the middle of it.
One side of that line write "Pro,"and the other side of the line write "Con.
" [6:32] Next you need to go to our websitefitness360online.
Com, and setup a strategy meeting.
We'll walk throughthe pros and cons.
The most cons I've ever helped a client developin this process is around six cons.
Five of those cons were oneof those fears that you can't really stop anyways, and it's probablynever going to happen type thing.
[7:02] The best way not to worry about thewrong things is to setup a strategy call with me, so we can go throughthe pros and cons.
If you're not going to do that, then get withyour business advisers and coaches, people that understand business,and talk with them about what you're wanting to do, and createyour own list of pros and cons.
This will help you to focus on allof the benefits, which you could list out dozens and dozens of benefits.
However, the con side you're not going to have that.
[7:35] Pitfall Number Eight is "Thinking youcan't do it yourself.
" If you're thinking you have to hire a companylike ours to convert you to be a 24 hour gym, that's not quiteaccurate.
You could actually become a 24 hour gym by yourselfusing a Best Buy and Home Depot.
[7:57] The system is not going to be integrated.
It's not going to be a Smart System.
It's not going to haveall the bells and whistles that come with our system, but youcould be a 24 hour gym and begin to reap some of the benefits ofthat decision.
[8:14] You can do this yourself.
You needa very small education about wiring schematics, and things like that.
The other thing you can do is leverage relationships in your gym.
Inside your gym right now, you have master electricians.
Masterelectricians can run and wire anything, they're a master electrician.
[8:33] If you can get all of the components,you can have this master electrician do the install for you.
Give him a free membership, or something.
You can do thisyourself.
We're not trying to lose your business.
We really believethat the most sound thing you can do for your fitness businessis become a 24 hour club.
To say that we're your only solutionfor that, that wouldn't be fair to you, right? You can do this yourself.
[9:00] Next, paying too much or too littlefor a Done For You System.
If you are considering convertingyour gym to a 24 hour model, you probably are looking at gym managementsoftware, surveillance systems, security systems, allover blogs and Internet, and all of that.
You're going tohave several options.
[9:27] When we started converting gyms aboutfive years ago, we were the only company doing this.
We didn'tset out to do it.
We just had clients that asked us to help them,so we helped them.
Now we're the godfather of converting gyms tothe 24/7 model, just because we've converted so many gyms.
We havedeveloped some marketing strategies around 24 hour clubs.
[9:54] It's one of the things that we specializein now.
Our systems aren't cheap, but they are complete.
They have a good record so far.
If you're consideringconverting your gym, and you're looking at different solutions outthere, you want to look at ROI.
What we try to do is whatever oursystem costs, and on the low end, we can convert a gym as low as $1,000,$2,000, $3,000, if you had all the components, and you know we'rejust working with you, and up to as much as $15,000.
[10:31] It just really depends on your particularproject.
But, if you are looking at the number to convert yourgym to 24/7, and if you're considering the ticket price and notconsidering the ROI, then you're going to miss out, because, thoughour systems can be expensive, they come with a 90-day coachingprogram with me.
[11:03] My goal, in the first 90 days, isto help you generate enough capital from the conversion to payfor the system.
If your system cost $10,000, my goal, in the next90 days, is to help you generate an extra $10,000 profit — not justrevenue, but profit — by leveraging your 24 Hour presence and someother things that we can do for you.
That's our goal.
When youconsider a system, make sure to consider the ROI.
[11:36] Pitfall number six — not lookinginto the legal components.
If you are converting your gymto a 24 Hour model, you're going to have all sorts of legal stuffthat you need to be aware of.
Insurance is the big thing.
A lotof insurance companies that will insure a gym won't insure a 24 Hourgym.
[11:54] We have some partners that will insure24 Hour gyms, so we can help you with that solution.
But, if youare going to be a 24 Hour gym, you need to know your county andstate statutes also.
Because there are literally thousands of differentcounties, cities, and states with statutes, whatever,we don't know what all those are, so the best way to figure thatout is three-year relationship with your insurance company andjust going down to the building department to make sure that anycode issues in relation to being a 24 Hour facility are met.
[12:42] Pitfall number five — not leveragingthe marketing value.
When you become a 24 Hour gym, you have agreat opportunity.
It's a unique opportunity, because, if you are anew gym, you can launch with a massive amount of momentum and reallybecome the alpha dog in your community as far as 24 Hour gyms go.
[13:03] If you are an existing gym and you'rethinking about converting, you need new buzz going on aroundyour facility, probably, and your community.
Becoming 24Hour allows you to rebrand yourself in the marketplace, and reinventyourself.
Think about Madonna or Britney Spears: they reinventevery three to five years.
[13:29] I recommend our clients that we dothe exact same thing.
We keep things fresh, exciting, entertaining,and effective.
If you can leverage the marketing value of becominga 24 Hour gym, you can make a lot more money than just not doingthat.
[laughs] Don't miss that opportunity.
Make sure you leverage themarketing value.
[13:54] Pitfall number four is not havingan integrated system.
Right now, you see the gears and all of that.
A lot of gym owners are actually one of the gears in the system,and other fitness entrepreneurs are the little people on thatbridge that are pointing and directing.
The big differenceis that the people that are directing, they don't really have to bethere, but, if take one of those gears out, the whole system is goingto break and fall apart.
[14:32] You don't want to be a gear.
You wantto be a director and a company owner instead of a business owner.
Right now, if you're a business owner, you may be trading time fordollars, you may be working in your business instead of on yourbusiness all the time.
How you can not be a part of the gear? [14:57] The way you do that is by leveragingtechnology and systems, and, if you don't have an integratedsystem for the 24 Hour gym model, then you're not going to beleveraging all the potential.
Remember, one of the things thatbecoming a 24 Hour gym allows you to do is have autonomy, so youdon't have to be in the gym all the time.
[15:18] If you really want that, then youneed an integrated system.
The three components that you reallywant to focus on when you integrate into this type of business modelis, one, you want to make sure that you can hear and see everything,you want to make sure that you can look at your money, allyour accounts and your billing, and you want to make sure that youcan control all your marketing efforts.
[15:48] You want to be able to do all thisfrom your laptop, from a computer, or from a smartphone.
If you cando all three of those things from a computer, then you have successfullydetached yourself from your business.
After that point,you have to just get used to managing the system, and it's veryhard for entrepreneurs to go from the mentality of being a gear tobeing a director.
[16:17] It takes help and coaching.
I personallyhave had problems doing that.
I've worked with a coach now forthe past year and a half, and our primary focus is getting meto delegate things to the system and quit being a gear.
This is oneof those times [laughs] where being a gearhead is not smart, so youwant to integrate your system.
[16:46] Number three is not following 24 Hourgym best practices.
If you are going to be a 24 Hour gym, thereare best practices that you need to follow, rules and regulationsthat your members need to follow, and things that you need to do onan ongoing basis to make sure that your business is secure and profitable.
[17:08] One of the best practices is makingsure that you have a release of liability and a club bylaw forumfor your new member to assign and your existing members to assignwhen they become a member.
You can see an example of this ifyou to a Snap Fitness or Anytime Fitness and join.
[17:37] You will see that they get bylaws.
You can't bring a friend, and, if you bring a friend, then it'sX amount of dollars, dah, dah, dah, dah, dah.
You want to followthese best practices, because, if your goal is to be the 24 houralpha dog in your community then consistency is a key and yourculture is a key.
To build up your culture you need consistencyand to have consistency you need to have best practices or standardoperating procedures.
[18:11] You want to develop those.
We canhelp you develop those or if you want to go the other route, you justgo and get a membership at Anytime or Snap Fitness and go throughtheir process.
[18:27] Number two.
The number two pitfallis thinking it's out of your budget.
When you are considering theinvestment price for converting your gym to 24 hours, if you lookat a piece of equipment, like a treadmill that's going tocost three grand, you're looking at it all wrong.
[18:46] You need to look at converting yourgym to 24/7 in the terms of ROI return on investment.
If youinvest a dollar and can make two dollars, that's a win/win every day.
Your goal is to convert and get a big ROI in that decisionin your business.
[19:08] If you look at the sticker price,if you decided to get a quote from us, great, or if you got one fromsomebody else, there's really a relative.
If you look at that stickerprice to convert your club and are like, "Oh man, that's alot of money just to be a 24 hour gym," you don't get it.
You don'tget it.
Look at ROI.
[19:30] If I convert to a 24 hour gym howmany more people can I sign up in my business.
How many more policeofficers, firemen, nurses, doctors, shift workers, night owlscan I attract to my business by being a 24 hour gym? [19:52] This is kind of leading me into pitfallnumber one, but how much more money can I make by being a 24 hourgym? Let's go ahead and look at the number one pitfall of convertingyour gym to 24/7.
That's not creating a premium upsell for 24hour services.
[20:18] Because we have converted so manygyms we've experimented.
We've had a lot of patient clients being ourguinea pig on this.
If you can create a premium upsell for your 24hour service, 30 percent of your existing members and futureprospects and customers will take you up on that, if it's structuredcorrectly.
[20:38] You may be saying, "Well Anytime Fitnessand Stat Fitness, they don't have a premium upsell for 24 hourservice.
" That's exactly right.
They're leaving a lot of revenueon the table.
Day in, day out.
Month in, month out.
Year in,year out, their franchisees are losing money.
[20:58] The reason that is, the reason thesetwo models don't do that, is because they sell the fantasy thatyou can be extremely profitable by buying their franchise and notever going to work in the business.
That's not true.
You're goingto have to work in the business.
You're going to have to work toget the business, to do your presell.
[21:23] Who's going to do your presell ifyou don't go do it? Who's going to do your next promotion if you'rea new business? I think it's smart to consider making more money byoffering more value.
There's a strategic way of doing this.
[21:43] We have created a blueprint, whichI'm going to tell you about in a second, where we walk you througha lot of different components to becoming a 24 hour gym.
Oneof those components is helping you create an offer so that your existingmembers and your future prospects can have an option to choosefrom.
[22:06] Now out of a hundred, and this isn'texact but, out of a hundred prospects that come in your business,look at your business and decide to join, out of a hundred peoplethat join, 30 percent of them on average will take a premium upsellif you offer one.
That means that 30 people out of that hundredare going to be paying you more.
[22:32] Usually for no more out of pocketexpense, no more overhead or anything.
It's just for more options.
Wecan help coach you through that.
If you want an example of whatI'm talking about here, I just want you to consider McDonald'sfor a second.
[22:52] You go to McDonalds.
You bought acheeseburger.
They ask if you want fries with that and you get the fries.
Then they upsell you into the fries.
Then they cross sell youinto the drink.
Then they get you on their back end continuityprogram with their toys.
They're getting you from every angle.
[23:17] You're not mad at McDonalds for offeringyou fries, right? You just say, "No, thank you.
" Sometimes yousay, "Hey.
I would like fries with that hamburger.
" I don't knowwhy anyone would choose McDonald's fries over Checker's fries,but that's just personally me.
Back on track here.
[23:36] If you don't create a premium upsell,you're missing out on profit.
That's the long and the short.
We'vecreated a blueprint.
If you want to get our blueprint for converting,which basically is an inventory list of everything we would needto convert your club, and an estimated price to do that, you canalways request one of those from us.
[23:59] Since this is the end of the presentationI'm going to go ahead and give you your 24 hour premium securityconcept.
Instead of paying a security company 15 dollars to100 dollars a month to "monitor your facility," why don't you goin and attract in police officers, firemen, EMS workers, FBI agents,CIA agents, Homeland security.
[24:23] Why don't you get security enforcementinto your facility, use the facility? There's a couple of waysyou can do this.
You can give them all free memberships.
That'sa novel idea, right? You give all of them free memberships.
[24:37] "That would be hundreds of memberships,Josh.
You just gave away a hundred memberships to some ofthe best people in your community.
Do you think your business willbenefit from that long- term? Of course it will.
Right off the batyou're going to have squad cars, fire trucks and things like thatin the parking lot.
[24:55] You may not like that.
Maybe you'rein a neighborhood where having a bunch of cop cars in your parkinglot would deter all your clients.
For you this wouldn't work but ifyou want that type of security, real live people, the best thingto do is get them in there.
I suggest giving the first responderor whoever you give the membership, just give it to them for free.
[25:23] Then giving their spouse or familymembers 50 percent discount.
That's what I recommend doing.
It'san offer that's hard to turn down.
A free membership and then theirspouse gets 50 percent off.
Over time it will grow your businessin many different ways.
It's very dynamic doing this methodhere.
[25:44] That's that.
I ran over.
I'm veryall over the place.
If you want to get a customized 24 hour conversionblueprint for free all I need you to do is go to fitness360online.
That will get you to our page that tells you aboutour system.
[26:07] We'll give you an opportunity thereto fill out a form on the bottom of that page which will give usthe information to create an inventory list and that quote toconvert your gym.
You can use this inventory list and shop everythingout yourself and price it all out, this that and the other.
[26:25] If you decide to allow us to do theconversion for you we do have a 30 day money back guarantee.
We'veconverted over a hundred clubs successfully.
We have a prettygood reputation in the industry.
If you'd like more information onthat, again, you're just going to go to www.
[26:47] You'll also be able to set up a strategycall, a free strategy call, with me right there on thewebsite.
If you want to hop on the phone with me and talk about convertingyour gym or talk about lead boxes or sales funnels or yourmarketing plan for 2014, take advantage of that.
It's complementarythat we do off our website.
We've done 300 plus calls this year.
[27:16] We'd love for you to hop on the phonewith us so we can learn more about you and project.
Add somevalue to you.
If we earn your business great, if not we'll have atleast added value to your life.
With that said, thank you for watchingthis presentation and we'll be talking to you soon.