Two weeks ago, I flew to Boston to meet gym owners. I shared a meal with a few of them, and sat at a boardroom table with others. My role was volunteer “broker”–an unbiased intermediary to help one gym purchase another in good faith. I wasn’t paid a dime; I just wanted to make sure everyone got the best possible outcome. A few good opportunities were presented: some gym owners could keep a share of their gym, remain on as a paid coach; and receive an upfront payment for the value of their gym. The offer was a real gift for many of them. They won, in the end. Many aren’t so lucky. Every day, I take at least one phone call–again, unpaid–from a gym owner who needs help. In almost every case, the owner is a coach. Usually they’re a great coach. It’s not just the bad coaches whose businesses are failing.Here are a few things the “triage” callers have in common: They have members, but not income. Strong gyms break even at 30-50 members. Weak gyms require more members to break even. Some of these poor folks are serving over 70 people and still not taking a paycheck. Their coaches don’t earn more than they’re paid. Either the gym has a smattering of volunteers trading for membership, or one salaried “main guy” earning more than the owner. But the coaches don’t generate revenue; they simply fulfill service obligations. They’re scared of losing members to a cheaper gym nearby. In many cases, this has already happened. They have good ideas, but no time to execute, and… They think 10 more clients will buy them that time. This is the crux: 10 more clients won’t buy you anything.Sitting on a park bench in 2009, I asked myself, “If I don’t change, will things get better on their own?” It didn’t seem likely. The next question that occurred to me was, ...
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