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Should You Buy Out Another Gym?

Maybe this should be titled, “Do You WANT A Second Location?” This is a common topic in the TwoBrain Family. Successful gyms are now often invited to “buy out” failing gyms in their area. As the polarization of “successful” and “unsuccessful” gyms continues, more owners are becoming either a buyer or seller. I’ve been approached to purchase gyms many times. And many MORE times, I’ve been asked to consult on a sale agreement. But I don’t start with the valuation. I start with a question: “Why do you want to own a second gym?” If I hear: “I just want to help more people. My first gym doesn’t take any of my time” — then we proceed with the purchase. But usually, I hear: “It’s a great opportunity. There are no other gyms in the area. My members could choose where to visit. It’s almost profitable. I KNOW I COULD FIX IT.” That last one is in all caps because I hear it a LOT. Here are the questions I ask next: Is there a chance you could get the gym’s members even if you didn’t buy the gym? Is there an easier way to increase your income in your current gym in less time than you’d require to fix the other gym? Are clients in the other gym accustomed to lower rates? Do they match your target demographic? Why is the other gym failing? Are you buying the problems that killed them? Does a higher membership count move you closer to your “perfect day”? What liabilities are you also buying? (For example, a lease)  After thinking it through, many owners decide NOT to buy out another owner. Here are some reasons I’ve heard recently: “It would take me months to fix that gym. If I calculate the value of my time, it would be a lot easier to just increase my sales by $2000 per month at my current location.” “I’m pretty close to my perfect day ...
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How We Teach Facebook Marketing

If you’re a frequent reader of this blog, or you receive my love letters, you might think we don’t teach social media marketing at all. That’s understandable.   We have a HUGE Facebook Marketing course in the Growth Stage of our mentoring program. It’s the most comprehensive online course in the world that’s specific to the fitness industry. But I don’t talk about it much outside our group. Below, I’ll explain WHY.   I spent the last 15 months traveling with a group of very high-level SaaS founders (if you don’t know what SaaS means, it’s “Software as a Service.”) These guys are all extremely successful. They KNOW Facebook and social media marketing.   I also enrolled in every FB marketing course I could find, and spent THOUSANDS on ads to test the systems. I went to lunch with experts; I invited some onto my podcast; and took 1:1 lessons from others.   I compiled all of these lessons into the Facebook Marketing Course. We listed the course for $599…and then, after one day of open enrollment, I decided to stop selling it.   Why? Because it’s NOT what gym owners NEED. At least, not until they can handle the growth. And I’m willing to bet $2500 on it for EVERY gym we work with.   Many gym owners (and some “consultants”) think funnel marketing and Facebook ads are the answer. And a tiny percentage of the time, they’re right. But jumping straight to social media advertising is like starting a CrossFitter on bar muscle-ups before they’ve learned the air squat: it’s frustrating, and it won’t take them from their current state to fitness in the fastest way possible. It might even break them.   Here’s one lesson from the Facebook Marketing Course we include in our Growth Stage:   There’s a lot of discussion in the module, but I’ll sum up this way: “Hot leads” are close to purchasing ...
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Should You Buy An Email List?

When you’re in the “funnel mindset”, you count leads instead of people.   A funnel mindset means blasting your message to everyone you can–even if they didn’t ask to hear it–and then filtering, filtering, filtering.   Sometimes, the odd little fish swims all the way through. In a funnel mindset, these are “qualified leads”, and it’s worth going through 300 real people to find one of them.   But what happens to the other 299?   It all depends on permission.   If 300 people sign up for your email list, they’ve given you permission to continue the conversation. They might not like–or even read–every message you send them; they might eventually even opt out of your list. But they won’t hit ‘spam’. And they won’t get angry.   If, though, you DON’T have their permission, they’ll recognize spam for what it is. They’ll opt out. And worse, the tactic will backfire. They’ll actually be LESS likely to use your service in the future. Think about that weird guy at the bar: he approaches 300 women. One of them goes home with him. The other 299 are repulsed. Did he win?   (Here’s a hint: ask him in the morning.)   Dan Pink wrote about “the backfire effect” in “To Sell is Human“, and it’s been the subject of study for years now. It’s been studied by behaviorists like Kaplan and Gimbel, and email marketers have been avoiding it since–well, since their second email backfired.   Here’s what Seth Godin wrote about it in 2008:   “Permission marketing is the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them.”   You should read the rest of his post here.   I teach permission marketing to the TwoBrain family of entrepreneurs. And if you’re reading this, it’s because you’ve given me permission to continue our conversation. Thank you.   A conversation ...
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Set Your Goals

Do you have a goal? Is it for the short, medium or long term? Do you take action toward that goal every day? If not, what are you working toward? Gym owners, like any other entrepreneur, can be short sighted or long sighted. They either live minute-to-minute in chaos or year-to-year with minimal risk and slow progress. If you’re an entrepreneur running your business in either of these ways, you’re probably feeling frustrated, like you’re spinning your wheels. Here are a few ways to break out of this tough spot. 1. Set up an easy win early every week. Got a good lead? Run a No-Sweat Intro on Monday. Working on a co-branding deal? Start the week with a cool change to the facility that members will love. Accomplishing a small goal early in the week will give you momentum to keep running strong for the next seven days. 2. Set SMART goals: Specific, Measurable, Achievable, Results-focused, Time-bound At a recent mentor meet-up, we sat down for a “hot seat” podcast recording. The first question asked was, “As a gym owner, if you had to make $5,000 in 10 days, what would you do?” Naturally, all of the mentors had different, yet effective ideas. However, the lesson we took away was the power of deadlines. Think about it this way: If I say, “You need to make five grand,” you can get started whenever you feel like it. You might meet the goal in a month, six months or even never, because there was no time frame or sense of urgency established. But if I say, “You have 10 days to make five grand or your business is bankrupt,” I guarantee you will hustle until you meet that goal. It’s the same sense of efficiency you get the day before you leave for vacation. If you were to leave on a vacation for one week starting tomorrow, you would become ...
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How Improv Comedy Helps Your Business

You’ve seen Improvisational Comedy, I know it.   In Improv, a couple of comedians stand on stage and make up a funny story on the fly. One person starts with a simple sentence, like: “Oh! Look at my watch!” and then another follows with something else: “Why is there water running out of it?”   The goal is to make the story funny, and it often works. But despite what the audience thinks, Improv doesn’t start from a blank canvas. There are RULES. And we can learn from them.   Just as in business, scripts can often sound fake. If you read a phone script to a client who’s inquiring about your rates, they’ll trust you less. That’s why we don’t use call centers.   But you also don’t want to have a 90-minute conversation with every client, either. You don’t want to vomit every single detail of your philosophy, practice and science; you want them to take action, because knowledge alone doesn’t make anyone fit.   Here’s how the lessons of Improv comedy can help you:   First rule of Improv: Don’t disagree.   When two performers are building a funny story, they agree to agree. Neither will ever say, “No.” or “You’re wrong,” because that ends a conversation before it goes anywhere. Instead, performers will say “Yes, and…” because they know it’s more important to keep the conversation alive than it is to “win”.   When I started as a Personal Trainer, I’d often argue with people who wanted to pay me money. I’d say, “You don’t need to run 10 miles every day to run a marathon! You need to do HIIT. And you don’t need all those carbs either!” I won lots of conversations and lost a lot of money.   Instead, I should have approached the conversation the way a train approaches a turn: slowly and incrementally. I should have said, “Yes, you can run ...
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What Mentors Talk About

I spent the last 72 hours with most of the senior mentors at TwoBrain. It was the first time any had visited the TwoBrain Workshop. And the first time several had met in person. Despite growing from zero to 350 mentoring clients in just over 18 months, we’d never had our own private Summit. I didn’t sleep for two nights before they got there. These are some of the most successful gym owners in the world–and, far and away, the best mentors in the fitness business. They’re friends, and we often lean on each other. The struggles of our clients weigh heavily on each of us (I’ve cried with Ken many times, and celebrated with Dani almost every week) and that has forged a very strong bond. All of that brainpower in the Workshop at once, and I could have pointed the conversation in any direction. So what did we talk about? We talked about OUR process, and YOUR opportunities. First, our process: over 15 hours spent in front of a whiteboard, making sure we’re giving gym owners the best advice in the most actionable way. Now, we’re busy. We don’t have to fly all over North America to sit on my couch for a weekend. None of us is asking, “How do we get more clients?” or “how do we make more money?” because that’s not our goal. Instead, we spent thousands of dollars and time away from our families to figure out how to help gym owners MORE. These discussions will result in upgrades that are mostly invisible. They’ll be expensive. And our clients probably won’t know about them. But it will make our mentoring practice better for THEM, and that’s why we do it. Codifying my gym’s processes saved it. Not a marketing strategy; not a sales pitch; not a Facebook ad. Whenever a business wants to reach the next level–whether that level is earning the first ...
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