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What does your audience really want? In “Help First,” I walk through the process of building a business around its benefit to a client. Large corporations survey clients to find “pain points,” then develop products to solve those problems. But we KNOW a lot of the problems clients face: they need to lose weight, or resolve back pain, or play better sports. My mentoring clients are taught to break down their demographics by need, not irrelevant data like age or sex. What needs can your business serve? What groups need help? And how can you best match that need? General fitness solves a lot of problems. But very few people will come looking for you; you’ll have to tell them how you’ll solve their problem first. In the top row, break down your potential markets. In the left column, list the services you can provide (hint: if it’s “included with membership,” it’s not a separate service.) Prioritize by potential benefit and ease of rollout. Mentoring clients use this chart to identify largest opportunities, and then work backward to put them in place. Sometimes, asking clients the right questions at intake can literally add $10,000 per month in a new revenue stream. But if you don’t know your audience, you can’t serve them best. TwoBrain Opportunities
It’s hard to get excited about math. It’s much easier to coach the third pull of the clean, right? But if you don’t know your numbers, you won’t be coaching for long. Gyms fail most often due to business ignorance, not bad coaching. But even the fear of closure won’t make you WANT to know your business metrics, so I’m giving you a new way to look at them. This is The Two-Brain Business BIG SHEET: a simpler way to track the metrics that really matter. You can download it free. RampUp and Mentoring clients are taught to use the tool optimally, and their results are tracked monthly for accountability. The metrics I track: 1. Gross Revenue: of course. But this is just necessary to calculate NET revenue. If a business owner is bragging only about their gross revenue, they’re hiding something (maybe ignorance.) 2. Total Members: Like gross revenue, only used to calculate ARM (below.) A gym with one member that profits $10 per month is better than a gym with 100 members and no profit. 3. ARM: Average Revenue per Member (per month.) This is a key metric that usually highlights an affiliate’s weakness right away. If you catch yourself saying, “I just need 10 more members!” you should stop and calculate your ARM. 4. LEG: Length of Engagement. I want to keep clients for at least 10 years, because I’d rather be a coach than a marketer. If your clients stick around for an average of 9 months, you’ll always be scrambling to replace them instead of coaching them better. 5. Net Gain this month: Your operating profit. If you’re “not in this for profit,” save yourself a lot of stress and get a job coaching. You’ll be happier. 6. Net Gain since First Month: Because I want you to see how quickly the mentoring program pays for itself. 7. Profit Ratio: Mentoring clients are trained to produce a 33% profit …
Consistency is more important than almost anything else.You should assume that every client will know what every other client is paying. You should assume that every staff member will know what another staff member is earning. You shouldn’t assume that staff will automatically “just know” what to do in every circumstance. You shouldn’t assume “common sense” exists—because it doesn’t. Contracts save relationships. Evaluations improve relationships. Use this contract as a starting point to solidify your relationships with your staff and help them understand their roles! Note: This contract is a sample/starting point only. Consult an attorney to ensure the contracts you use are tailored to your business and the jurisdiction in which you operate. Here’s the sample contract in PDF format:BlankTrainingContract Here’s the sample contract in DOC format:BlankTrainingContract
Business is tough on relationships. Some new business owners are shy about documenting their partnership. They fear the formality will put a strain on their marriage, their bro-dom or their friendship. But when they’re done well, written contracts SAVE relationships. I’ve used this agreement for six different companies. I sold my share in two of them, and I’m still close friends with both former partners. I’m a fan of the “Shotgun Exit” in particular. It’s fair to everyone, and provides a quick way to “rip the bandage off.” When a business buyout occurs, emotions can spiral out of control. I believe it’s better to get it done quickly and stay friends. This is a sample, of course. Take it to a lawyer. In the sample, the two business parties are named “X” and “Y.” Sub your name in for X, their name for “Y,” and add a Z if necessary. Questions? If you’re starting a new box and want some help, you can book a free call here. Here’s the PDF version:Sample Shareholders’ Agreement Here’s the editable DOC version:Sample Shareholders’ Doc Further Reading: The Best-Laid Plans, CrossFit Journal
Friends, I want you to take this weekend off. No gym, no homework. You only have to answer one question by Monday: where are you worst? Of all the hours you’re putting in every week, I guarantee there’s ONE that could be done better by someone else. If, on Friday, you struggle to respond politely to “Will lifting weights make me bulky?”–take that hour off. Fire yourself from that spot. Find someone else to be in the gym at that time. If you’re cutting corners at cleaning, fire yourself. Fire yourself from one hour–your worst hour–next week. This weekend, choose that hour. I’m attaching “The Ten-Hour CEO” from Two-Brain Business 2.0. By June, I’d like each of you to be spending 10 hours per week in a CEO role, or doing what gets you closer to “Perfect Day.” You’re going to start next week by dedicating ONE hour to that role. Block it off in your calendar. Book a call with your mentor. Do the next module in your program(they’re in a particular order for a reason.) Next week, you’re going to commit to TWO hours in the CEO chair. Here’s the template I use with many mentoring clients: 10-Hour CEO
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