Key Business Metrics and Why Gym Owners Must Track Them

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Every day, I’m in at least 50 chat conversations that start with “how’s the gym?”

Nine times out of 10, the response I get is “it’s OK.”

But is it really?

How’s your gym really doing? And how do you know?

If you don’t know how the average gym is doing, you don’t know what “OK” means. And if you don’t know how the best gyms are doing, you have nothing for comparison.

You need a business scorecard—something more than your bank account—to tell you if you’re keeping pace with everyone else, sprinting ahead of the curve or losing ground as an entrepreneur.

Every year, we publish our “State of the Industry” guide. This is the largest set of numbers in the industry. Nothing else is even close. Our guide will tell you how gyms are doing and allow you to compare your fitness business to others so you can improve it.

To succeed in this business, you need a scoreboard so you can track your progress without guessing. (Two-Brain gyms already have this as part of our program.)

Here are the primary six metrics you need to track:

  • ARM (average revenue per member)—what the average client pays you in the average month.
  • Clients—how many people pay you every month.
  • LEG (length of engagement)—how long the average client stays in your gym.
  • EHR (effective hourly rate)—the value of your time.
  • ROI (return on investment)—the value you’re getting from the stuff you buy (equipment, space, your staff’s time).
  • NOB (net owner benefit)—what you take home from your gym business.

There are other metrics, of course—for example, marketing metrics such as set rate, show rate and close rate—but starting with the six listed above will let you see your progress. And you should see it—whether you’re improving or failing, you need to know where you’re at so you can take steps to increase speed or correct course.

Every month, we publish leaderboards for each of these six key categories (here’s one). We do this to tell you how the best gyms in the world are doing. Then we find out how the leaders posted such great numbers, and we share their secrets with you—again, for free, even though it doesn’t generate any revenue for Two-Brain and costs us hundreds of thousands every year.

We also run seminars in Gym Owners United—our free group for gym owners—to help entrepreneurs improve their businesses.

And every year we go even further to produce the most comprehensive industry report for gym owners. We tell fitness entrepreneurs:

  • How much gym owners pay themselves.
  • How much people are paying coaches.
  • How much people are spending on rent.
  • How much people are charging for group classes and PT.
  • How various revenue streams contribute to gross revenue.
  • How long gyms retain clients.
  • How much it costs to acquire a lead.
  • And more.

Want to participate and get the data so you can use it to benchmark yourself and improve your business?

It will cost you only about six minutes. You can share your data anonymously and receive an essential measuring stick for gym owners in mid-November.

All of us need this report. And none of us could produce it alone. Your entries add value for gym owners around the world. Please click the link below and be part of the greatest movement of gym owners in history:

2023 State of the Industry Survey


One more thing!

Did you know gym owners can earn $100,000 a year with no more than 150 clients? We wrote a guide showing you exactly how.