Certificate IV in Fitness - Module 5 Certificate IV in Fitness - Module 5
© Australian College of Sport & Fitness Page 1 of 48 Certificate IV ‐Module 5 ‐ Course Notes ‐ 1308A.docx
CONTENTS
CONTENTS..............................................................................................................................................1
ADDITIONAL RESOURCES.......................................................................................................................1
OVERVIEW OF THIS MODULE ................................................................................................................3
PART A ‐ UNDERTAKE SMALL BUSINESS PLANNING GYM INSTRUCTOR ...............................................3
CERTIFICATE IV MODULE 5 ASSIGNMENT ..........................................................................................43
CERTIFICATE IV IN FITNESS...................................................................................................................44
MODULE 5 – FITNESS BUSINESS ..........................................................................................................44
ASSIGNMENT TASK ..............................................................................................................................44
ADDITIONAL READING ARTICLES .........................................................................................................48
ADDITIONAL RESOURCES
ADDITIONAL READING
Textbook Chapter 11
Articles
How to set out tax invoice
ACCC Advertising & selling guidelines
Personal_trainers_how_to_choose_one
Technology and Personal Training
What are CEC Points
Promote a 1 year PT agreement
29 marketing strategies for PTs
SAMPLE health‐club‐business‐plan
WEBSITES
Australian Business Registration (get your ABN online) abr.gov.au
Tax Office ATO.gov.au
Business Australia Business.gov.au
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Kinect Australia Kinect Australia.org.au
Fitness Australia Fitness.org.au
WEB PAGES & WEB SEARCHES
Web search ‘Sample business plans’
Web search ‘promotional ideas for small business’
Web search ‘ free promotional ideas for small business’
Web search ‘Starting a personal training business’
Web search ‘ sample client agreement for fitness business’
Web search ‘starting a small business in Australia’
PLEASE NOTE: Handouts can be found at the back of the module following page 48.
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OVERVIEW OF THIS MODULE
Personal training in Australia is one of the fastest growing occupations that is known to be
rewarding and dynamic, as well as a great lifestyle.
As a personal trainer you can have your own business or work as an employee for another gym. If
you decide to work your own business you can potentially have a higher income, but to do this
successfully you need a strong set of business skills to succeed. On the other hand, if you work as an
employee for another company your focal point is the client aspect of personal training.
Within this module, we are giving you tools to run you own personal training business.
PART A ‐ UNDERTAKE SMALL BUSINESS PLANNING
GYM INSTRUCTOR
Working in a gym facility is a great first step before thinking about self‐employment as a PT.
Consider it an apprenticeship to being a personal trainer. You will be working in a fitness centre
environment and working with other qualified fitness professionals which is the perfect way to
consolidate and enhance the skills you gain from your studies.
PERSONAL TRAINER
The majority of personal trainers decide to run their own business due to the substantial financial
rewards. Personal training sessions can cost anywhere from fifty to one hundred dollars, which you
would be able to pocket for yourself.
Another great benefit is the flexibility. You can choose how and when you want to work. You also
get to decide the type of clients you want to work with.
Some personal trainers establish their own home based businesses. The advantages are no rental
fees, working at different locations and convenience. The downside can include travel time to
clients, paying for equipment and maintaining a car.
Working as a personal trainer in a gym can be motivating and appealing to some trainers. Typically
this involves being part of a roster of other trainers. The gym essentially provides a client base and
you in return pay a rental fee or percentage to the gym for your sessions.
WORKING PART‐TIME
If you are just looking for more casual work or a small part‐time income then the fitness industry
offers lots of great opportunities. Gyms and fitness centres are often looking for staff for casual
shifts.
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Similarly, if you want to work for yourself, it is very simple to establish a mobile training business
from home to suit your available times and other commitments.
WHERE CAN YOU WORK?
o Gymnasiums
o fitness centres
o self‐defence centres
o health studios
o your own business
o rehabilitation clinics
o sports clubs
o corporate gyms
o community
organisations
o swimming complexes
o outdoor trainin
TYPES OF PAYMENT MODELS
There are many different payment and salary models in personal training. These can range from a
normal career or job where a company pays you a full time salary, right through to being your own
boss and earning the money directly paid to you by the client.
The table below covers some of the different remuneration options:
Type of PT Career Path Description
Full time job – salary based Where a fitness centre or gym hires you on regular full
time salary.
Centre based – contract per hour Where a fitness centre hires you on hourly contract basis.
Centre based – floor fee Where you work within the fitness centre but pay a
weekly “fee” to be there and have access to their centre
members to sell PT services.
Centre based ‐ percentage Where you work within the fitness centre but pay a
percentage of your training session fee to the fitness
centre.
Own business – own premises Where you are responsible for all costs of a business and
your income is your direct sales of your business.
MARKET RESEARCH
Market research consists of collecting and analysing information about personal training services
and demand for these services in the location you are planning a business.
It can help in the following ways:
Identifies potential clients
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Identifies business opportunities
Enables you to understand existing clients and their needs better
Enables you to set realistic targets
Helps you to analyse and solve business problems
Assists in the creation of effective strategies
Market research provides useful information so that better business decisions can be made.
On the other hand, poor market research resulting in inaccurate information can lead to poor (and
costly) business decisions.
MARKET RESEARCH AND BUSINESS PLANNING
When beginning a business, market research plays an important role in deciding on such factors as
location, demand for the service or product, identifying the types of people who want your
services, identifying market niches or analysing competition.
Some of the questions that need to be answered in the early stages of business planning include
the following:
o Do people want your product or service?
o Who is most likely to purchase it?
o What are they willing to pay for it?
o What characteristics or features are they looking for?
o Where are the people who want your services mostly located?
o Is the demand sufficient to sustain the business?
o What are the best promotional methods to reach them?
o What competition is there?
GATHERING INFORMATION ABOUT THE MARKET PLACE
It is a simple matter to ask a series of questions about your potential market, but how do you go
about answering them?
It is necessary before beginning market research to have a reasonably clear idea of your potential
client base, and what kind of service is planned.
Market research can be divided into two main parts:
o Defining the market or target area
o Demographic analysis
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DEFINING THE MARKET AREA
The market area or target area is the geographic area that will be used for marketing activities.
Most businesses are limited by how far people are prepared to come in order to buy.
The total market available for a product or service is all the possible potential buyers within the
target area.
It can be helpful to break up the total market into segments, where each segment represents a
different set of clients. For example, a market segment might consist of a certain age group,
income group, or group that has a special interest.
Useful characteristics that help to define market segments can be easily measured and include the
following:
Age
Gender
Marital status
Family size
Income
Occupation
Education
Ethnic identity
Lifestyle
Leisure activities
Geographical
location
DEMOGRAPHIC ANALYSIS
Demography looks at the various characteristics of a community. A demographic analysis relating
to marketing gives information about the target market and greater understanding of the clientele.
It can answer the following questions:
o Who is most likely to use your services?
o Who is most likely to benefit from them?
o What can you offer that the target market can use?
o How can you advise the community that you have what they need or want?
The answers can then be used to design a marketing plan specifically for your practice.
Apart from the client characteristics that can be identified from census information, deeper issues
relating to the specific field of health need to be examined.
For example, it would be useful to access the following information:
o The target group’s attitude towards general health
o The target group’s attitude to your specific discipline
o The health requirements of the target area – you will need to have the knowledge and skills
to meet these needs
o What the major health concerns and fears are within the community
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o What health problems are actually present in the community
o What factors affect the decision to use the services you offer – is it cost; concern about the
quality of their lives or fear of illness; or is it because their friends use them?
o How they will learn about you – do they listen to the radio, read newspapers or magazines?
o What other places they go to with regard to health – the local recreation centre, gyms,
health food stores, pharmacies, and organic food shops? This information targets places
that may be happy to refer clients to your practice.
o How important is their health to them? How much would they be willing to spend on a
weekly, monthly or annual basis to maintain or improve their health?
One of the ways in which this type of information can be gathered is through community surveying.
A survey of random people in the community together with surveys of local health food stores,
pharmacies, and health professionals can yield a wide range of information.
Surveys can be conducted by telephone, face‐to‐face or on paper. The questions need to be
carefully designed to gain the maximum amount of information from a minimum number of
questions. While most people might be happy to answer a few questions, interest wanes quickly
after a few minutes so keep the survey short.
COMPETITION
It is helpful to have an understanding of the number and type of competitors in your local area, and
how much they charge for similar services.
This information can be gained from the yellow pages directory, local papers, website searches,
observation, the local town council or networking.
Prices can be obtained via the telephone or your competitor websites. You may even try out your
competitor's service as a client.
PERSONAL TRAINING BUSINESS PLAN
In a general sense, planning your practice or your career in health and fitness is all about taking
your dream and turning it into reality.
In some cases, especially when excitement in the early stages is high, this planning step is too often
missed and you just jump into work.
In other cases, you may have been managing your practice for several years, but you have never
revisited your initial business plan. Your environment is constantly changing so reviewing your
original plan from time to time is essential to stay relevant and competitive.
When planning your business, it is not only business issues that you need to consider, but it is also
important to consider personal issues that accompany a decision.
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WHY WRITE A BUSINESS PLAN?
Many people feel that they can keep track of everything without the need to write it down.
However, the structure and discipline of writing down your plans makes it more likely that you will
consider all relevant factors and ensure nothing important slips through the cracks.
It also means you are more likely to consider things from different angles, giving new approaches or
opportunities you may have otherwise overlooked.
Here are a few key benefits of practice planning to think about:
Planning makes you consider all your options
It can be a reality check when you first examine all relevant factors
You identify tasks you need to complete
You identify new opportunities to follow
It gives you a ‘written’ list that you will not forget about
It can be a ‘timetable’ to follow
Business planning will take you through key questions and issues for establishing a successful
practice or career.
Writing a business plan is a comprehensive exercise for planning your business and recording your
goals and objectives. It also typically involves forecasting financial information such as revenue and
costs in detail.
After you have written your plan you may find it useful to ask a friend already in practice if there
are other important considerations they advise you to consider.
ELEMENTS OF A BUSINESS PLAN
START WITH YOUR VISION
In the earlier stages of your course you would begin to think about what type of trainer you want to
become, the career you wish to have, or what type of business you want to run.
This ‘vision’ you have in your mind is the starting point for writing your business plan.
Keep a journal of ideas and thoughts about your fitness business and what it may look like. This will
constantly be changing and growing as you are just starting out. It will continue to change even
after you are in business.
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ELEMENTS OF THE BUSINESS PLAN
There is no standard format you need to follow when writing a business plan. Your business plan is
simply a logical flow of ideas and forecasts on how you see your business running.
When writing a business plan here are some key areas you should cover and write notes on:
Define a clear set of business goals
Having a clear idea of your business and business goals will help you focus your business efforts. It
will also provide a benchmark to review in the future. Don’t forget goals should be specific as
possible, for example, “I will have a consistent group of 20 clients per month in 6 months' time”.
This is a real goal. Now you can plan real tasks to make this happen, that is you can do enough
marketing to get a new client each week for the next 6 months.
Define your client
Having a vision of who your client is will allow you to focus your marketing efforts. You will be able
to tailor‐make your marketing efforts and place advertising in specific places for your target clients
rather than undertake a general blanket approach to marketing. Also note that you may identify
several different client types and have different marketing plans, pricing plans and session ideas for
each.
Marketing plan
The marketing plan should cover what your service is, what the price of your service will be and
how you will tell potential clients about the service. Your marketing plan should cover both
promotional strategies like giveaways or discounts, and paid advertising such as local paper
advertisements. In addition to paid advertising options, don’t forget to also think about ‘free’
promotional activities that you can do to get your name and skills out there!
Competitor analysis
Analysing your competitors is a crucial step in your business planning. If you do find that you have
direct competitors, it doesn’t mean not to go ahead and open a business. Instead, competitor
analysis will help you compete better. It will help you identify things you can do differently so
clients choose to come to you.
Plan your set up resources and costs
Set up costs are all the expenditures you make before you are even open for business and meet
your first client. Set up costs are different from your running costs which are regular expenditures
that you incur once you are up and running. Set up resources may include:
Physical location
Practice/medical equipment
Staff
Administrative equipment and
materials
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Communications equipment Marketing materials
Financial forecasting
Financial forecasting helps you to predict both your income and expenses. It also identifies your
‘break‐even’ point. A break‐even point is the amount of income you need to meet your expenses,
meaning you are not making a profit but you are not losing money either.
In addition to these elements your business plan may also include information on:
Business goals and objectives
Specialist services to be provided or recruited
Legal structure
Statutory and regulatory compliance
Budget forecasts
Marketing strategies
Staffing requirements
Required resources
Management strategies
Strategies to make the organisation child‐safe and child‐friendly
HOW DETAILED SHOULD YOUR BUSINESS PLAN BE?
Many people will ask how big or detailed their business plan needs to be. The comprehensiveness
and extent of detailed documentation required in the business plan will depend on a range of
factors which may include:
Proposed size and scale of the business
Market focus of the business
Need to raise finance and requirements of lenders
Level of risk involved including the provision of services to clients under 18 years of age on a
one to one basis
Different stages in the development of a business
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CONTINGENCY PLAN
One way to counter the negative impact of things not going according to plan is to have a
contingency plan.
Contingency plans are plans made for you to be prepared for anything that could happen to your
business. They might be made to eliminate or reduce the impact of what you will do if a particular
problem occurs.
You may need a contingency plan when:
o You identify a risk that you think has a high chance of happening and will have a high
impact
o You try to find ways of reducing the likelihood of the event, but you cannot reduce the
risk to an acceptable level
o The residual risk is still so large that you need to take a structured approach to reduce its
likely impact
The main considerations that you should address in a contingency plan are:
o Scope ‐ what particular risk the contingency plan is designed for
o Initiation ‐ how you will know when to put the plan into action
o Actions ‐ what sequence of actions you will take in order to control the problem and
minimise its impact
o Roles and responsibilities ‐ who will do what and when
Here are a few examples you may create a contingency plan for:
o You are a sole operator and you get sick for 1 or 2 days and cannot train clients
o You are a sole operator and you get sick for a longer period and cannot train clients
o You run an outdoor boot camp and the weather is forecast to be raining for the next
month
o Staff do not turn up to scheduled training sessions
o Two new competitors start next to your business
As an example, your contingency plan for long term sickness may be to take out income protection
insurance to cover your salary in the event you are unable to train clients.
If you are new to the fitness industry it may be difficult for you to guess what things might go
wrong. So at this point it might be a good idea to get a mentor and run through possible issues that
can impact your business.
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FINANCIAL MANAGEMENT
When planning your business you will have to consider financial issues relating to your business.
Financial forecasting is attempting to calculate what sort of income and profit you will be making
from your business.
REVENUE FORECASTING
The revenue forecast gives an estimate of income from sales.
For example, the first thing most people consider is the price of their product. Using this price per
session you can start to forecast how much income you expect each week, that is:
Price session x number of sessions = total revenue for the business
If you plan to sell other products (gift vouchers, equipment etc.) then you will add these predicted
sales to your revenue forecasts, too.
EXPENSE FORECASTING
The expense forecast gives an estimate of expenses that you will incur. This will then give you an
idea of income needed to meet these expenses.
It is a good idea to perform an expense forecast for the period of one week at a time, what are your
weekly costs.
Weekly costs will include items such as rent, equipment lease costs, phone fees and regular
advertising.
PROFIT AND LOSS STATEMENT
After you have done your revenue and expense forecasting you can now forecast your weekly profit.
This is a simple matter of subtracting all the weekly costs you outlined against the revenue you
predict.
A Profit and Loss Statement, also called an Income Statement, is a detailed way of forecasting profit
in your business and recording the actual profit at the end of the week, month, and/or year.
The Profit and Loss statement is divided into:
o TOTAL REVENUE ‐ total income/sales
o TOTAL EXPENDITURE ‐ total of all expenses (costs)
o NET PROFIT ‐ the profit left after subtracting the total expenses from the total receipts
(this is equivalent to your taxable income)
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An example of an annual profit and loss statement follows:
‐ PROFIT & LOSS STATEMENT –
For the year ended JUNE 31 2011
Revenue from all training activity 496,397
Expenses:
Advertising/Promotion 6,300
Insurance 750
GST 2500
Legal & Accounting Services 1,575
Rent 13,000
Utilities 491
Repairs/Maintenance 1200
Printing, postage & stationery 320
Licences 632
Bank & credit card fees 144
Bookkeeping 3,350
Wages/salaries of contract trainers 88,000
Travel Expenses 4400
Car lease 2,000
Association Fee 350
Total Expenses (125,012)
Net income 371,385
BREAKING EVEN
It is extremely useful to calculate expenses on a weekly basis.
The amount calculated must be covered before any profit can be made and is known as the break‐
even point. Once the break‐even point is known, the number of clients required to meet this can be
calculated.
This then becomes the minimum number of clients you need to train. Any more than this number
of clients creates profit.
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PROFITABILITY
Profitability is the ability to make a profit or exceed the projected income required to break even.
If profitability falls there are usually two causes:
1. Expenses have increased. Expenses that are increasing due to an increase in income will not
affect the profitability of a business. It is the expenses that are not tied to an increase in income
that will have an impact on profitability.
2. Income has fallen.
In either case, the reasons need to be examined and steps taken to improve the profitability or the
business may fail.
Example 1 – if the cost of your studio rent keeps increasing, this will impact your profit. To take
action you may choose to either change venues OR increase prices to offset this increase in rent
costs.
Example 2 – you note the overall income has fallen. You investigate that the number of weekly
sessions has fallen on average compared to the same time last year. To take action you can
undertake a marketing drive.
MANAGING CASH FLOW
Business owners do not have salaries where tax is withheld at each payment.
Money must be put aside regularly to pay the tax commitments. For example, monthly transfers
can be automatically debited to a savings account to cover tax and other commitments such as
professional registration fees.
Ways you can better manage your cash flow include:
working out a cash flow budget
maintaining good control of debtors
having adequate working capital
using a good bookkeeping system
A budget estimates the amount of money to be received and to be spent for various purposes
during a given time. An annual personal drawings budget is therefore an estimate of how much
money you will need to draw out of the business to meet your personal needs over one year.
Budgets help avoid over‐spending and are crucial during your first year of running a business in
order to be successful.
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BANK RECONCILIATION
Bank reconciliation is done to ensure that your bank statements, cheque book, and records all
agree. This is something you would usually perform at the end of each month.
Performing regular bank reconciliations will allow you to take into account any extra transactions
your bank puts through your account check and record any errors or omissions.
ESTABLISHING WORKPLACE SYSTEMS
Workplace systems are systems which a business puts in place to run a business smoothly. When
writing these systems, you must be sure that they are efficient and comply with any relevant laws.
Often, these systems are written in the form of policies and procedures.
Workplace systems can help the fitness organisation comply with laws and minimise legal liability.
Workplace systems may include:
Policies and Procedures
Staff Induction and Training
Having Insurance Cover ‐ explained in the previous section of these notes
Risk Minimisation Strategies ‐ this will be covered in later lessons
OVERVIEW OF POLICIES AND PROCEDURES
A policy is a fixed plan of action that has been devised to respond to any questions.
A procedure is a method or way of doing things ‐ a way of carrying out a policy.
A Policies and Procedures Manual contains the details of how activities are correctly carried out in
your business i.e. the right way to do things. This is a must for all businesses particularly if you want
to successfully manage the distressing possibility of legal action.
Some examples of policies and procedures are:
o Booking appointments
o Cleaning the premises
o Handling money
o Using the computer
o Closing the premises
o Emergency procedures
o Dealing with complaints
o Documentation
POLICIES
Where a policy is required, it must be written prior to the procedure. Policies generally require
some thought, for they reflect the ethos and goals of the business.
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The steps required in writing a policy are as follows:
o Ask all possible questions, taking into account all possible implications for the situation.
o Use the answers to these questions to clarify your ideal response to a situation.
o Write
o Refine
o Rewrite
PROCEDURES
A policy may not always be necessary, such as how to open the business in the morning.
The next part of your manual should contain the procedures required to implement the plan of
action which you have decided upon.
Writing procedures requires you to look at the whole scenario. Run through the procedure yourself
and take notes as you are doing it. When writing procedures a step‐by‐ step approach is needed as
this will be much easier for staff to follow.
As a fitness professional in your own business, you will be actively involved in creating your policies
and procedures manual. The manual must be easy to read and follow, and be kept up‐to‐date.
Changes to the manual must be made whenever anything varies within your business, or if the law
changes. In order to keep an up‐to‐date record of the changes, you must clearly name each version
to reflect on its currency, for example, Policies and Procedures Manual Version 1 2009.
Staff must be made aware of all changes. This can be done during your regular staff meetings, or via
a memo which is handed to staff, emailed to staff, or placed on your staff notice board.
You may need to take into consideration legal requirements when writing policies and procedures,
for example dealing with emergency procedures. There will be a variety of steps you must take to
make sure this procedure is being carried out as per your legal OH&S requirements.
It is essential that during the period of induction, staff are informed of, and provided with, training
covering these policies and procedures. You must also ensure that the manual is easily accessible to
all staff at any time for reference.
MANAGING STAFF
If your PT business grows then you are likely to hire staff to assist you.
When deciding whether to take on an extra member of staff, there are some useful considerations
that must be examined:
How do you know that you are selecting the right person for your business?
What legal requirements need to be met?
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How will the employment of this extra person impact on the business?
Finding the right person, paying them appropriately, training and motivating them, and monitoring
their performance requires a great deal of time, skill, energy and patience.
WHY EMPLOY SOMEONE?
Employing an extra person is about growing your business, giving you the ability to service more
clients and hopefully creating more profit and enjoyment in the long run.
A good employee can also input and help with business decisions, and responsibilities. The
workload can be shared; relieving a great deal of stress for a sole business operator (this may also
apply in a practice where there are several practitioners).
The major issue when hiring an employee is cost:
o Can you afford to hire someone and should you hire on a full or part‐time basis?
o Will the extra income from servicing more clients cover, or better still, be greater than, the
cost of employing someone?
Time is also an issue. There is a great deal of administration involved in employing staff, including
the following:
o Payroll records
o Legal requirements
o Income tax requirements
o Superannuation
o Occupational health and safety provisions
Finally, do you really want to employ someone? You may need to consider the following:
o Delegating to others means that work will no longer be done in the way that you do it. Can
you handle this – can you let go?
o Do you want your business to expand or would you rather keep it simple and in your
control?
o Are you capable of managing people?
o How will the way you currently operate be affected if you employ another person?
EVALUATING THE COSTS OF NEW STAFF
Once you feel the need to hire a new staff member you need to evaluate if your business can afford
this new person, or consider what level your business need to reach to maintain profitability.
Some expenses associated with employing staff include the following:
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o Annual wages
o Holiday leave loading
o Replacement for staff on holidays
o Superannuation payments
o Workers Compensation premiums
o Training costs
o Costs associated with setting up facilities and equipment
Building these costs into a cash flow forecast for the next two years will give an indication of
whether there will be adequate finances available.
Once the business has decided that an extra staff member is an affordable proposition and the
physical resources are available, the next step is to define the job as clearly as possible, and
produce a job description.
DEFINING THE JOB
Job descriptions are necessary for the following reasons:
o They define what and who it is that you require for the position.
o They provide clarity for the person applying for the position. The applicant has a clear
outline of all the important functions of the job and the skills and experience required by
the employer. This saves a great deal of time as it narrows down the field of applicants for
interviewing.
o They give a measure against which the applicant’s skills and attributes can be assessed.
o They reassure the applicant as to the professionalism of the practice.
There are a number of aspects that need to be considered. The following considerations relate to
hiring an assistant:
o Skills – what duties and functions will the employee perform?
o Are some skills immediately necessary?
o Education – what level of education is required?
o Experience – how much experience do you require the assistant to have? Would you prefer
to train someone in some techniques yourself?
o Personality and attitude ‐ you will want your new staff member to reflect your mission
statement and work ethos.
o Hours – what hours will the employee work? Will they be full‐time or part‐time? What are
the start time and finish time of the working day?
From the finalised list of requirements a job description can be compiled.
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LEGAL REQUIREMENTS RELATING TO YOUR STAFF
Both an employer and employee have rights and obligations towards each other.
An employer has the right to operate a business efficiently, while being obliged to pay wages,
provide work and make sure that working conditions are safe.
The employee is obliged to obey lawful and reasonable orders, to do their work with care and
competence and to make sure that they do not harm their employer’s business in any way.
There are acts of parliament that cover legal obligations regarding termination of employment and
worker’s compensation, anti‐discrimination and equal opportunities. Information on wage rates
and employment conditions can be obtained from State government departments such as the
Industrial Relations Commission NSW.
Once you become an employer a number of rules and regulations must be met:
a) Anti‐Discrimination Act.
To discriminate means to include or exclude a person based upon their perceived difference. No
employee can be discriminated against on grounds of sex, race, religion, colour, age, disability
or political association.
b) Equal Employment Opportunities Act
All staff should have the same opportunities for advancement, training and types of work
without bias towards or against any employee.
c) Registration with the Australian Tax Office (ATO)
Registration with the ATO is compulsory, as employers are required to withhold tax from their
employees’ wages and pay it to the ATO at regular intervals. This is known as pay as you go
(PAYG) tax. An employer is also required to supply each employee by August 14 each year with a
group certificate stating how much tax has been paid for the previous financial year.
d) Superannuation contributions
By law, all employers must make superannuation payments for each employee. Payments are
calculated as a percentage of the gross salary, additional to the salary paid, and are usually paid
monthly into an approved superannuation fund. Records must be kept for 5 years.
e) Payroll records
It is a legal requirement to establish detailed payroll records including:
o employee's birth date
o calculate nominal daily hours for each employee
o record all variations to nominal hours
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o calculate hourly rates of pay for workers on annualised salaries
o keep accrual dates for all forms of leave
o nominate pay dates in the pay records
o provide a pay slip within one day of payment
o keep all records about payments made while on all forms of leave
o show the basis of calculation for pay rates
o retain these records for seven years
f) Worker’s compensation insurance
Registration with the Work Cover Authority must take place within 14 days of employing staff.
A payment calculated on a percentage of the gross salary plus superannuation payments is used
to insure the worker against injuries suffered during the course of their work.
g) Occupational health and safety
Employers are required to provide a safe working environment for all staff. This means that the
workplace must comply with standards set down in the Occupational Health, Safety and
Welfare Act, as well as provide training in any area of possible hazard, adequate supervision,
information, and systems to ensure the safety of workers.
Records of any injuries must be kept. A policy and procedures manual should be developed to
make sure that safety problems are avoided. Employees should be actively involved in
developing and reviewing the manual. The manual can also provide the basis of OHS training.
This is covered in detail in the school’s Safe Practices course.
h) Insurance
Professional indemnity insurance policies need to be amended to include any new employee.
i) Payment
Most wages and salaries are covered by awards, which cover the pay and conditions of different
jobs. For example, assistants are covered by clerical awards, which have five different grades.
The basic award is the minimum payment that can be paid to a person in that position.
Payments can be made by cash, cheque or direct debited into the employee’s bank account
(bank charges apply).
j) Employment records
You must ensure that the following records are kept in relation to staff:
o records of remuneration paid and hours worked by the employees
o any other prescribed records relating to conditions of employment set by the industrial
relations legislation
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o the records are to be kept in the manner and form prescribed by the regulations
o the employer must ensure that the records are kept for a period of at least 6 years
k) Workplace Diversity
Workplace diversity means creating an inclusive environment that embraces people's individual
differences and provides opportunities for all staff to achieve their full potential. When staff
members are encouraged to work in their areas of strength and capability they are happier,
more productive and more likely to stay with the agency (EEO Website). Further information is
available at the EEO website – see resources page at the end of these course notes.
EVALUATION OR MONITORING OF PERFORMANCE
As you can see, there is a great deal of organisation and ongoing paperwork connected with
employing staff.
It may be helpful to set up a system that ensures that you, as the employer, are getting your needs
met. That is, that the employee’s work is productive and to the expected standard. Evaluation
gives feedback on how well goals are being achieved.
Evaluation is useful for both staff and employer. It provides feedback for employees to check on
their workplace performance, and an opportunity for the employer to manage minor problems
before they become major. It also enables you to assess current business practices and goals.
If evaluation is conducted with the prime objective of improved performance and teamwork, it can
be a very powerful tool. Regular periodic evaluation can motivate staff and generate a feeling of
being noticed and appreciated.
Generally, people are happier when they feel they are part of a team rather than in an
employer/employee situation. One of the responsibilities of management, particularly in small
business, is to help all staff members to work together in a supportive and productive way. How
evaluation is handled is crucial to this process. It helps if criticism is discussed in a non‐
confrontational way and the worker is given a supportive environment in which to comment.
Performance evaluations can cover a wide range of activities.
Some of the areas that you may decide to monitor might include:
o Performance standards
o Work rate and accuracy
o Knowledge
o Skills
o Level of client satisfaction
o Goal setting
o Progress towards education
o Health
o Personal motivation and enthusiasm
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The main purpose of an evaluation is:
o Help the employee improve performance and productivity
o Set and review performance goals
o Identify training needs
o Improve job satisfaction
o Maintain channels of communication between employer and employee
o Improve understanding of the employee’s role and value in the overall progress of the
practice towards its aims and objectives.
o Build team spirit
PART B – MARKET YOUR BUSINESS
WHAT IS MARKETING?
For most personal trainers the idea of doing their own marketing can be concerning. Often it is
because they feel they lack the professional business skills – especially when it comes to marketing
and promotions.
The best person to promote and sell any small business is the owner. All it takes is a small amount
of knowledge on how to structure and plan your marketing approach.
WHAT IS MARKETING?
The definition that many marketers learn as they start out in the industry is:
Putting the right product in the right place, at the right price, at the right time
You need to start with the client – not what you want to sell.
Create a product that a particular group of people want, put it on sale some place that those same
people visit regularly, and price it at a level which matches the value they feel they get out of it; and
do all that at a time they want to buy.
YOUR MARKETING PLAN
Any small business should have a marketing plan. Having a plan will ensure you thought of all the
important elements of starting your PT business.
A very simple way to organise your marketing plan is via the “4 Ps of marketing”.
The 4Ps of marketing is a general phrase used to describe the different kinds of choices you have to
make of bringing a product or service to market.
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The 4Ps are:
Product Place Promotion Price
Any decisions you make with one of these will have an impact on your practice.
Take the product you intend to offer your client for example. Will it simply be a 1 hour fitness
session or will it be a “45 minute intensity blaster”? As you can see even the ‘name’ of your
product is important.
The 4Ps are a perfect way to think about and organise your marketing ideas.
It is also important to realise the 4Ps interrelate with each other. For example, let’s say the ‘place’
you decide to operate in is an exclusive area with no competition, how will this affect your ‘price’
decision?
PRODUCT
To understand your products, consider the following questions:
o What does the client want from the product or service you offer?
o What needs does it satisfy?
o What features does it have to meet these needs?
o Are there any features you've missed out?
o Are you including costly features that the client won't actually use?
o How and where will the client use it?
o What does it look like? How will clients experience it?
o What size(s), colour(s), and so on, should it be?
o What is it to be called?
o How is it branded?
o How is it differentiated versus your competitors?
o What is the most it can cost to provide, and still be sold sufficiently profitably?
PLACE
The place is where your client gets your product from. Is it a studio, a gym, outdoor boot camp or
do you go to the client's venue? To understand your place; consider these questions:
Where do buyers look for your product or service?
If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or
online? Or direct, via a catalogue?
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How can you access the right distribution channels?
Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or
send samples to catalogue companies?
What do your competitors do, and how can you learn from that and/or differentiate?
PRICE
Many personal trainers find it difficult to set the right price for their service. Often they base it on
what everyone else does.
To help consider the pricing for your service consider these questions:
□ What is the value of the product or service to the buyer?
□ Are there established price points for products or services in this area?
□ Is the client price sensitive? Will a small decrease in price gain you extra market share or be
unnoticeable?
□ What discounts should be offered to trade clients, or to other specific segments of your
market?
□ How will your price compare with your competitors?
PROMOTION
Promotion is how you tell your clients about you. There is a range of suitable ways a personal
trainer could promote their business, this could include:
o advertising in local newspapers
o development of networks and
strategic partnerships
o display posters
o involvement in community projects
o mail drops
o website
o word of mouth
o referrals from allied health
professionals
In evaluation the type of promotion activities you can use consider these questions:
o Where and when can you get across your marketing messages to your target market?
o Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards?
By using direct marketing mailshot? Through PR? On the Internet?
o When is the best time to promote? Is there seasonality in the market? Are there any wider
environmental issues that suggest or dictate the timing of your market launch, or the timing
of subsequent promotions?
o How do your competitors do their promotions? And how does that influence your choice of
promotional activity?
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MARKETING WITHOUT MONEY
WHAT DOES MARKETING COST?
Here are some typical costs of various marketing strategies….
o 30 second advert during the American Super Bowl 2005 = $4 million!!
o Small colour advert in local paper = $350 (negotiate free design/artwork)
o Classified advert in local paper = $30‐60
o Poster campaign in neighbourhood = $1 per poster and your shoe leather
o Door drop campaign = 15 cents for a flyer + 10 cents delivery
o Flyer in ‘friendly’ venues = 15 cents for a flyer + $0 for display
o ‘Where have you been’ old client promotion = $1 letter + $20 voucher
o Magazine insert ‐ 15 cents for a flyer + 6 cents media cost (5‐10k min)
o Email campaign – free to send + email address capture costs
GET IT FREE
Think creatively and you will soon discover lots of different ways to get free marketing and
promotion opportunities.
These opportunities generally take a bit more personal time and effort, but typically they also stand
out more from all other advertising.
Publicity and Editorial (think beyond magazines/newspapers i.e. newsletters)
Giveaways or samplers sometimes called ‘try‐vertising’
Word‐of‐Mouth
Contra and swaps
Example #1: Place an advert in your local paper, but at the same time ask if you can offer a free
giveaway to their readers as a special promotion. You’ll get better leverage for your advertising
dollar.
Example #2: There are many non‐profit clubs and memberships. Often they have newsletters going
out to their members. Is there an angle for you? For example, provide a fitness session to the
president of your local cycling club; in return ask to place an article about the benefits of personal
training for cyclists in their newsletter.
DON’T FORGET YOUR EXISTING CLIENTS
Never stop marketing to your existing clients – it's generally free to do anyway.
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Also existing clients are a good source of knowledge to understand your target client better.
Some examples of marketing techniques for existing clients include:
o Trial additional products or services
o “Up‐sell” good clients to more of the same product e.g. provide incentives to have a longer
or more regular session with you
o Provide gift vouchers they can buy for others
o Provide incentives for telling their friends about you
MEASURE AS YOU GO
Don’t just hope your marketing plans will work. Always test and measure to be sure.
Marketing can be an exact science if you want it to be. You should be able to measure the results of
most marketing campaigns you implement.
The benefits of measuring means you will get to spend your marketing money wisely and get better
results for your marketing resources.
Some measurement techniques you can use to track the success of your marketing campaign
include:
o “How did you hear about us?” – simple effective monitor of your advertising
o Codes on your coupons
o Special ‘unique’ offers for different channels e.g. “15% off for Herald readers”
o Different phone numbers on advertising
o Online adverts – clicks and page visits
Example #1 – let's say you decide to have a booth at a local market. The idea is to give free
nutritional advice and demonstrations of your services. How do you know if the person who rings
next Monday saw your paper advertisement or saw your booth at the market? Run a special
“Market Special Offer” for a limited time – this will reveal effectiveness of being at your market.
Example #2 – will a red flyer work better than a yellow flyer? Test it. Print 200 copies of each and
door drop them in your local area. Have a special offer on the flyer and state the flyer must be
presented to claim. Easy way to work out best colour paper to use.
EVALUATING A MARKETING OPPORTUNITY
As a business owner you are bound to be approached by advertising sales people.
They will ask you to spend money with them and advertise. So how will you know if it is a good idea
to advertise with them or not?
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The concept of ‘Break‐Even’ analysis is good to use to make a quick analysis of a marketing
opportunity.
As a fitness professional, your “break‐even” would relate to how many clients you need to book to
earn your marketing spend back.
Let’s say you do door‐drop to 1,000 houses in your area. This would cost $200 or $300 dollars. If
you get 20 clients at say $15 per session then you have made your money back. It is important that
you have NOT made a profit though, just broken even.
Therefore, 20 clients is your break‐even. So to evaluate this as a marketing opportunity, ask
yourself the question “Would you expect 20 bookings from 1,000 leaflets?”
But also don’t forget 20 new client bookings may turn into many more repeat sessions.
Generally, break‐even calculations like this can help you evaluate a marketing opportunity before
you commit your money.
TEST THE MARKET
Once you have made the decision to advertise, before any large or long‐term commitment is made,
it is a good idea to try out the market with your advertisements first.
After one or two weeks of advertising and recording the results, it is possible to gain some idea of
whether that form of advertisement in that news medium is going to work for you.
At this point it may be necessary to make some changes. Perhaps some more feedback from clients,
friends and family on your advertising might be helpful.
If, in two weeks of advertising, there have been several inquiries and one or two clients, you may
feel encouraged to continue.
Testing the market, if properly done, can save a great deal of time, energy and money.
SECURING NEW CLIENTS
When you complete all your marketing and this results in a client contacting you, the next step will
be to answer common client questions.
Your prospective client will get on the phone or email and ask you questions before they ultimately
book a session with you.
Below is a list of common questions you can expect to hear from a client.
Before you launch your business you should consider these questions and, as a personal trainer,
have strong answers ready for your clients.
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Do you have insurance?
What do you think about ________ (insert latest fad)?
Why should I work out with a personal trainer?
Won't I get the same results working out on my own or taking an exercise class?
I downloaded some training programs on my iPod. How is working with you different?
Do you have references from previous clients?
What is your refund policy?
How much does it cost?
Why did you decide to become a personal trainer?
PART C ‐ LEGAL AND RISK MANAGEMENT OF YOUR BUSINESS
This section of the course aims to ensure that you have knowledge and skills when it comes to
understanding the legal and risk management requirements of your business. You need to know:
1. What laws apply to the fitness industry and your business and services?
2. How to comply with these laws.
3. How you can source information on these laws.
4. What contracts a business needs.
5. How to seek legal advice.
6. How to evaluate the effectiveness of workplace systems.
STARTING A SMALL BUSINESS
As a small business owner you can take advantage of a broad range of free advice and support
offered by the Australian Government and Local Government.
These services include information and advice on starting and growing a business, obtaining
funding and training for yourself and your staff.
Here are just a few sources of advice and support:
Receive free tax support and advice from the Tax Office business support service.
Contact your local council for information on whether there are local government grants
available in your area.
Contact your nearest Business Enterprise Centre for free advice and support.
Contact the ACCC Small Business Helpline for assistance with understanding your
responsibilities under the TRADE PRACTICES ACT.
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Consult an experienced business adviser, accountant or solicitor.
Find out about support available for young Australians in business through Enterprise
Network for Young Australians.
STEP 1 ‐ REGISTER YOUR BUSINESS
To have a business in Australia you need to register it and acquire an Australian Business Number
(ABN).
First you need to decide on the business structure that best suits your business needs. This decision
will determine what type of registration procedures you need to take.
Obtaining legal or other professional advice can help you understand your own particular
circumstances.
The three main types of business structures commonly used by small businesses are:
1 2 3
Sole Trader or Partnership or Company
Proprietary Limited
Sole Trader
A sole trader is the most simple business structure consisting of an individual trading on their own
and operating under their own name or with a registered business name, and can have an ABN.
This is the more common type of structure for small businesses, such as PT, as it is quick and
inexpensive to start and maintain.
The sole trader controls and manages the business and is responsible for all debts and liabilities.
They are subjected to the same tax rates as individuals.
However, you should be aware that, as a sole trader, your assets are potentially more exposed to
the risk of litigation.
A Partnership
A partnership is an association of people or entities carrying on a business together, but not as a
company.
A partnership is formed when two or more people (up to 20) go into business together with a view
to making a profit.
They may operate under their own names or with a registered business name. Limited partnerships
involve passive investors who are not involved in managing the business.
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A partnership is not a separate legal entity and doesn't pay income tax on the income earned by the
partnership. Instead, each partner pays tax on their share of net partnership income.
IMPORTANT: In a partnership, liability is also unlimited (unless you are in a Limited Partnership) and
extends to debts incurred by a partner without the knowledge or consent of the other partner. This
means you are liable for any debts your partners accrue.
A Company
A Proprietary Limited (Pty. Ltd.) company is an independent legal entity able to do business in its
own right. The shareholders own the company and directors run the company.
The directors of a company, as well as company employees, can be shareholders.
A company's operations are subject to the Corporations Act 2001, overseen by the Australian
Securities and Investment Commission (ASIC). This Act simplified regulations to allow a company to
have only one director and only one member.
There are costs associated with registering a company and the company tax rate is 30% on all
profits. However, a company often offers a greater level of asset protection as opposed to some of
the other business structures, as your personal assets are separate from the business. With this in
mind, major creditors will often require directors to personally guarantee the company's liabilities.
Additionally, personal liability of directors and employees can also arise if they commit an offence
under the Corporation Act 2001 or are found to have negligently performed their duties.
The downside to a company is the cost involved is setting one up and maintaining it.
The Registration Process
Businesses that are not companies, like sole traders and partnerships are required to register their
business name with the appropriate State/Territory authority.
For information on registering a business name as a sole trader in NSW, for example, contact NSW
Fair Trading.
If you choose to register as a business then when your company is registered under the
Corporations Act 2001 ('Act') it is automatically registered as an Australian company. This means
that it can conduct business throughout Australia without needing to register in individual State
and Territory jurisdictions. The Australian Securities and Investment Commission (ASIC) deal with
company registrations.
STEP 2 ‐ REGISTER YOUR BUSINESS NAME
DID YOU KNOW? Registration or use of a business name does not create a legal entity (only
registering a company creates a legal entity) i.e. a business name has no legal status.
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A business name is simply a name or title under which a person, or other legal entity, trades.
If the business structure you have chosen is as a sole trader, a partnership or a trust, and not as a
company, then you are required to register your business name in the state or territory in which
you will operate. But you don’t need to register a business name if you plan to conduct your
business under your first name and surname.
If you are planning to set up your business in more than one state, you need to register your
business name separately in each state.
Registering a business name is done at a State Level so you need to find out who the authority is in
your State. For example, in NSW it is with the Department of Fair Trading.
You can also expect to renew your business name every 3 years.
A company must display its name prominently at every place in which the company carries on
business that is open to the public. A public company must also display its name and the words
"registered office" prominently at its registered office.
What’s a winning business name?
Creating a winning business name takes some thought but is one of the most important things
you’ll do during the process of starting a business.
So how do you create a winning business name? When brainstorming consider these five rules for
choosing a business name:
1) A winning business name has to be memorable – but easy to spell.
Obviously, your potential clients need to be able to remember your business name. But they also
need to be able to find it easily if they’re looking for it in a phone book, directory or online.
2) A winning business name needs a visual element.
People remember ‘images’ more than words and incorporating a visual element into your business
name can be a powerful aid to clients’ memory (and a powerful advertising tool).
3) A winning business name has to have positive connotation.
Many words have both denotation (literal meaning) and connotation (emotional meaning). A
word’s connotation can be positive, neutral, or negative depending on the emotional associations
that people generally make. So choose words that have the positive connotations that you want
people to associate with your business.
4) A winning business name needs to include information about what your business does.
Chances are good that your new business is not going to become an international brand. It certainly
isn’t instantly going to become as well‐known as Nike. So you need to be sure that your new
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business name at least gives your potential clients some clues about what you actually do. That’s
why you see so many landscaping businesses that have the word “landscaping” in their name, and
hair styling businesses that include words such as “salon” or even “hair designs” in their names.
5) A winning business name has to be fairly short.
Once again this is vital because you want clients to be able to remember your business’s name. Also
it is important for promotional purposes.
After you have chosen the name, check at the State Registration Office to see if it is available to
register.
STEP 3 ‐ GETTING YOUR WEB ADDRESS
Your web address or domain name is your address on the internet and gives you an online identity
or brand. It's a valuable part of your business identity and an important marketing tool.
Potential clients will probably expect a website with an Australian domain name ending such as the
.com.au ending e.g. FitnessGuru.com.au
If you wish to buy a .com.au or .net.au domain name, you must be a commercial entity and possess
either an ACN or ABN.
For more information go to the .au Domain Administration Ltd (.auDA) website.
STEP 4 ‐ TRADEMARKS
Got a product or service you want to ensure no one copies? Then you need a trademark.
A registered trademark gives you the exclusive right in Australia to use it as a brand and to legally
stop imitators. Unlike a business name, a registered trademark can provide legal protection for your
brand and enable you to stop others from trading with it.
Once registered, the trademark is protected in all Australian states and territories for an initial
period of ten years. If international registration is required, the trademark must be registered in
each country in which you want protection.
Be aware that registration of a business name, company name or domain name does not in itself
give you any proprietary rights ‐ only a trade mark can give you that kind of protection. Ensure you
have exclusive use of your name now and in the future throughout Australia by registering your
business name as a trade mark.
For more information see IP Australia. IP Australia administers Australia's IP rights system,
specifically patents, trademarks, and designs.
If you are unsure of what or how to register and trademark, seek the advice of your accountant,
lawyer or trademark attorney.
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STEP 5 ‐ REGISTER FOR AN AUSTRALIAN BUSINESS NUMBER
You can apply for your ABN online at abr.gov.au
The Australian Business Number or ABN is a unique 11 digit identifying number that businesses use
when dealing with other businesses.
For example, you generally need to put your ABN on your invoices, or other documents relating to
sales that you make. If you don’t, other businesses may withhold 46.5% from any payment to you.
You also need an ABN in certain dealings with the Tax Office and other areas of government.
Registering for an ABN is not compulsory, but you will need one to register for the GST. Your ABN
allows you to:
o facilitate a single Business Activity Statement
o confirm your business identity to others when ordering and invoicing
o avoid PAYG tax on payments you receive
o claim GST credits
o claim energy grants credits
o obtain an Australian domain name
STEP 6 ‐ REGISTER FOR GST
The Goods and Services Tax (GST) is a broad‐based tax of 10 per cent on the sale of most goods and
services and other things in Australia.
By registering for GST, you will be entitled to claim input tax credits for the GST included in the
price paid for things that you acquire for use in your business. If you are not registered, you will not
be able to claim input tax credits.
You must register for GST if your business has a GST turnover of $75,000 or more ($150,000 or
more for non‐profit organisations)
To register for GST you will need to complete an application form. If you wish to apply for an ABN at
the same time, then use the same form.
Be aware that you need an Australian Business Number (ABN) to register for GST, as the ABN is part
of the GST system. Your ABN will also be your GST registration number.
Source more information on GST at the Tax Office website ‐ www.ato.gov.au
To register, you must complete an application to register for GST. You use the same application to
register for an Australian business number (ABN) if you do not already have one.
You need an ABN to be part of the GST system. Your ABN will also be your GST registration number.
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You can register by visiting www.business.gov.au or asking your tax agent.
STEP 7 ‐ REGISTER FOR A TAX FILE NUMBER
A TFN is a unique number issued by the Tax Office to individuals and organisations.
Partnerships, companies and trusts need their own TFN. A TFN can be obtained at the same time as
an ABN, using the same application form.
Sole traders use their individual TFN in dealings with the Tax Office.
Some of the main reasons for having a TFN are:
o to quote to employers (this applies to individuals only)
o to quote to investment bodies responsible for paying interest, dividends and unit trust
distributions
o to quote to government bodies, for example the Tax Office, when applying for an Australian
Business Number (ABN) or lodging income tax returns.
Source more information at the Tax Office website ‐ www.ato.gov.au
STEP 8 ‐ CHANGING BUSINESS AND WHO TO ADVISE
Your business will inevitably change and grow ‐ changes in your business circumstances may result
in a need to change your business structure, your legal or trading name, your address and contact
details.
These changes may affect your tax and other regulatory obligations.
Change of business structure
Changed business circumstances may require you to change your business structure. For example,
you might start off as a sole trader, then take on one or more partners and form a partnership, and
then later still register as a proprietary limited company. When you change your business structure
you are required to apply for a new ABN.
Change of personal details
Depending on the circumstances, you may need to advise the Australian Taxation Office (ATO), the
Australian Securities and Investments Commission and your state or territory government. Such
changes could be to your postal, email or business address, main business activity, financial
institution account information, or authorised contact person details.
Change your ABN details
You can change your ABN details with the ATO through:
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Online transaction, if you have an ATO digital certificate
1. Phone the ATO Business Info line on 13 28 66
2. Mail ‐ Obtain a copy of the change of registration details form.
3. Through your tax agent.
STEP 9 ‐ LICENCE AND PERMITS
It's important for you to find out the licensing requirements that apply to your new business. The
federal, state and territory and local governments are all responsible for the different licences,
permits, registrations and certificates that apply to businesses.
At this stage there is no official federal, state and territory licence needed for a fitness professional.
For example a builder must have a licence under State legislation. Instead, the fitness profession is
largely ‘self‐regulated’ by industry associations.
Source more information at the Fair Trading website ‐ fairtrading.nsw.gov.au.
STEP 10 ‐ YOUR LOCATION
The location of your business can be an important factor in its success. So you should carefully
assess what's the right environment for your business.
Gather information about the demographic and economic characteristics of the areas you're
interested in. Contact local councils for detailed information about business activity in their regions.
Once you have chosen your location, you need to decide whether to buy the premises or enter into
a commercial lease. At this stage it is advisable to seek professional business advice. Accountants,
solicitors and other business advisers can advise whether it's in your best interests to purchase or
lease your business premises and equipment.
State and territory governments are responsible for commercial and retail tenancies, each having
its own retail tenancy regulations.
Even if you decide to be a mobile trainer you will need to consider any laws or permits you need to
train in local parks.
Often the local council who controls the parks will charge a PT a small fee to train in a park area.
STEP 11 ‐ JOINING AN ASSOCIATION
Joining a fitness industry association is not mandatory but it does offer advantages. For example, it:
1. Shows a level of professionalism and can enhance your employability, connection and
professionalism within the Australian fitness industry.
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2. Provides you further support and advice if you operate or manage a small or medium sized
business in the fitness industry.
3. Provides assurance and confidence to consumers, employers and health professionals of
your professionalism as a fitness trainer.
Source more information at the FitnessAustralia.org.au or www.kinectaustralia.org.au/
STEP 12 ‐ GETTING INSURANCE
It’s essential to arrange insurance when you’re starting out in business ‐ you should insure your
company, your income and your commercial risk.
Taking out the right insurance will help protect your business and minimise its exposure to risk.
Your insurance requirements will vary according to the type of business you are operating, but you
should be aware that some forms of insurance are compulsory, such as worker's compensation and
third party car insurance.
Before choosing an insurance policy you will need to evaluate your business’s insurance needs.
Your insurance requirements may vary considerably depending on the type of business you
operate.
Some insurers offer insurance package policies specially tailored to cover your business needs.
There are also individual products that may be relevant to the particular nature of your business.
Your industry association may also provide important insurance advice. Some associations also
organise insurance packages for their members.
There are three broad types of business insurance:
Assets & revenue insurance
The main asset insurance is protection for building and contents and cars.
This covers the building, contents and stock of your business against fire and other perils such as
earthquake, lightning, storms, floods, impact, and malicious damage.
You do not want to set up a new studio with great equipment, only for it to burn down overnight
with no insurance cover!
People insurance
Worker's Compensation
If you employ staff, you must provide accident and sickness insurance for your employees ‐
worker's compensation ‐ through an approved insurer. Worker's compensation is covered by
separate state and territory legislation.
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Personal accident and illness
If you are self‐employed you won’t be covered by worker's compensation, so you need to cover
yourself for accident and sickness insurance through a private insurer.
There are several types of life insurance. Some are investment‐type funds where you contribute
over a certain time and get back your investment plus interest earnings at the maturity date. Others
are designed to cover accidents that could happen to you.
Income protection or disability insurance ‐ covers part of your normal income if you are prevented
from working through sickness or accident.
Trauma insurance ‐ provides a lump sum when you are diagnosed with one of several specified life
threatening illnesses.
Term life insurance or whole of life cover ‐ provides your dependants with a lump sum if you die.
Total and permanent disability insurance ‐ provides a lump sum only if you are totally and
permanently disabled before retirement.
Please note these insurances are not mandatory, but they are worth thinking about especially if you
have a family.
Superannuation
If you are running a business or employing people, you are likely to have superannuation
obligations to your employees. If you are self‐employed you also need to provide for your
retirement ‐ superannuation is generally used to provide for a retirement plan.
You need to speak to your accountant or payroll manager about superannuation.
Liability insurance
Public Liability
Public liability insurance protects you and your business against the financial risk of being found
liable to a third party for death or injury, loss or damage of property or ‘pure economic’ loss
resulting from your negligence.
Professional Indemnity
Professional indemnity insurance protects you from legal action taken for losses incurred as a result
of your professional advice. It provides indemnity cover if your client suffers a loss ‐ material,
financial or physical ‐ directly attributed to negligent acts.
Product Liability
If you sell, supply or deliver goods, even in the form of repair or service, you may need cover
against claims of goods causing injury, death or damage. Product liability insurance covers you if
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any of these events happen to another business or person by the failure of your product or the
product you are selling.
STEP 13 ‐ SET UP RECORD SYSTEMS AND ACCOUNTING SYSTEMS
Did you know? It is a legal requirement for you to keep records of your business transactions for a
minimum of five years?
In order to protect all parties, these transactions are supported by documents recording their
details.
There are different types of transaction documents, including tax invoices, wages records, cheque
butts and credit card statements.
They contain information you need to record, such as the:
o date of the transaction
o total payment or amount received
o amount of goods and services tax (GST)
It is important that you have good record keeping practices in place. The records you must keep
include all documents relating to your income and expenditure.
Under tax law, you must keep records that:
o Specify and explain all transactions, including any documents that are relevant for the
purpose of working out your tax liabilities. You should make records of transactions as soon
as they occur or as soon as possible afterwards
o Relate to all taxes for which you are liable. This may include income tax, goods and services
tax, pay as you go taxes, capital gains tax, and fringe benefits tax
What are the penalties for not keeping proper records?
The tax law imposes a penalty if you do not keep proper records. The penalty amount is currently
$2,200. We may remit the penalty (partially or fully) if you are trying to do the right thing. However,
if you make no attempt to keep records or deliberately destroy them, you will be unlikely to receive
any remission of the penalty.
Keeping good records makes paying your taxation and other business transactions much easier and
helps you to monitor how your business is going.
You also need to keep other important papers, legal documents and contracts in a safe place, so
make sure to set up a filing system for easy retrieval.
The Tax Office is an extensive information source on record keeping essentials.
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STEP 14 ‐ HIRING STAFF
Good employees can be your greatest asset, so recruiting and retaining the right person is
important.
Once you’ve hired new staff you need to make sure you understand your legal obligations to your
staff:
o find out what wages and employment conditions apply to your staff
o register with the Tax Office to deduct tax from their wages
o set up employment records
o pay superannuation
o comply with occupational health and safety laws
If you need to employ someone, consider what you want the employee to do and what skills you
require. Also consider the employment conditions, level of pay and other costs of employment,
which may include training needs, new equipment and facilities, and temporary accommodation for
the worker if they are required to relocate for the job.
Prepare a job description that defines the responsibilities and functions of the job. This will help
you identify the knowledge, experience and skills required for the job.
When you advertise a job remember that, by law, you must not use discriminatory language that
may exclude potential employees on the basis of race, age, sex, marital status, family status or
responsibility, pregnancy, religious and political beliefs, disability, gender history or sexual
orientation.
Your recruitment process will run more smoothly if you know how to:
o advertise
o interview
o select the right applicant
o draw up and document a formal offer of employment.
Legal obligations being an employer
Your obligations to employees and other workers come from a variety of sources ‐ federal, state
and territory laws, industrial awards and agreements, tribunal decisions and contracts of
employment (whether they are written or verbal).
Some of your obligations as an employer include:
o paying correct wages
o reimbursing your employees for work‐related expenses
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o ensuring a safe working environment
o not acting in a way that may seriously damage an employee's reputation or cause mental
distress or humiliation
o not acting in a way that damages the trust and confidence necessary for an employment
relationship
o not providing a false or misleading reference
o forwarding PAYE tax instalments to the Tax Office
o making appropriate payment under the Superannuation Guarantee legislation
What to do…
Find out about your employer responsibilities on the Fair Work Online website.
Go to the Centrelink website for employer information and employers' FAQ.
Seek independent advice from a qualified accountant, tax planner or lawyer.
Check your legal obligations in your state or territory.
Equal employment opportunity & anti‐discrimination
In Australia, national and state laws cover equal employment opportunity and anti‐discrimination in
the workplace. All employers are required by these laws to create a workplace free from
discrimination and harassment. It’s important that you, as an employer, understand your rights and
responsibilities under human rights and anti‐discrimination law in Australia.
By putting effective anti‐discrimination and anti‐harassment procedures in place in your business
you can improve productivity and increase efficiency. The Australian Human Rights Commission has
a range of fact sheets and brochures to help you develop effective policies and best practice
guidelines.
To source information source:
o Check the Australian Human Rights Commission publication list for useful information.
o Find out about equal opportunity and anti‐discrimination in your state or territory.
STEP 15 ‐ PROMOTING YOUR BUSINESS
You can promote your business in various ways, including advertising on radio, television or print
media, signage, business cards, and direct mail.
In terms of legal responsibilities you need to ensure your advertising gives clients accurate and
truthful information about your business.
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For further details you can check the ACCC's advertising and selling page for information on
advertising under the Trade Practices Act.
STEP 16 ‐ CONTRACTS IN YOUR BUSINESS
A contract is an agreement with your business and another person or business.
Note there are many types and not just contracts with your clients.
The following table outlines examples of contracts/agreements your business could have.
To supply your business To supply others That regulate business
relationships
Leasing premises Franchising Strategic alliances
Receiving and quoting Renting equipment Joint ventures
Borrowing money Tendering and quoting Partnerships
Credit agreements Franchise agreements
Agency agreements
Dealership/distributor
agreements
In the small business environment, discussions, negotiations and deal‐making are an everyday
occurrence. Typically they involve: providing quotes, discussions with suppliers, sales
representatives, agents and clients, making offers and submitting tenders.
Out of these deals, agreements are made, where someone has agreed to do something for
payment. Some of these agreements will be more important than others, but they are still
agreements.
Contracts are ‘legally binding’ agreements, that is, agreements which in the eyes of the law are
valid and which, with certain exceptions, must be fulfilled.
The question is, when does all the discussion and negotiation become an agreement, and then,
when does an agreement become, in the eyes of the law, legally binding?
For an agreement to be regarded as a contract it must contain four essential ingredients. If anyone
of them is absent the agreement will not be legally binding.
The four essential ingredients are:
Offer ‐ There must be an offer to do something.
Acceptance – The offer must be accepted.
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Intention of legal consequences ‐ The parties to the agreement must understand that the
agreement can be enforced by law.
Consideration ‐ Being a business arrangement, the promise must involve giving something in
exchange for something of value.
Verbal agreements rely on the good faith of all the parties and can be difficult to prove.
If the contract has been formally written and signed by the parties, there is an assumption that all
the terms of the agreement are contained in the written document regardless of what may have
been verbally agreed.
STEP 17 – BEWARE OF SCAMS
Scams targeting small businesses come in various forms—from invoices for advertising or directory
listings that were never requested to dubious office supplies that were never ordered.
Small business scams are becoming increasingly sophisticated and scammers will go to great
lengths to convince you that the documents they send you or the offers they make are legitimate
and genuine.
The ACCC is the regulatory body that deals with such practices and who you should approach if you
feel you may be a target of a business scam.
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CERTIFICATE IV MODULE 5
ASSIGNMENT Please note assignments are subject to change. The most up‐to‐date version will be
downloadable from the Student Online Learning Centre (www.acsf.com.au/fitnesscourse)
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CERTIFICATE IV IN FITNESS
MODULE 5 – FITNESS BUSINESS
ASSIGNMENT TASK
GENERAL INSTRUCTIONS
The assignment is in 4 parts. Please ensure that you submit complete all parts within this
assignment.
You may use your Cert IV Module 5 course notes and any other resources available to you to
answer assignment. We advise you to use as many research strategies as possible to acquire a good
understanding of the subject matter. Although you may use various sources, you must always
ensure that your work is in your own words, plagiarism is strictly not allowed. You may use
references, as long as you identify the source.
Please submit your assignment based on the submission instructions in the course overview
information.
If you have any questions how to complete assignment question please email or contact your tutor.
COMPETENCIES BEING ASSESSED
Within this assessment task you will be assessed on your ability to demonstrate competency in the
following section:
Section 1 ‐ Small business planning including marketing and legal
Part A: Identify business plan Identify purpose of business plan
Identify essential components
Part B: Develop a business plan Identify and documents business goals and objectives
Research and documents legal and compliance requirements
Research the market
Identify costs and sources of finance available
Identify marketing strategies
Identify staffing requirements
Identify specialist services and cost implications
Part C: Market the business Develop marketing strategies
Identify services
Develop pricing
Gauge client reaction
Develop risk management strategies Part D: Develop risk minimisation strategies
Develop contingency plans
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SECTION 1 – SMALL BUISNESS PLANNING INCLUDING MARKETING AND LEGAL
Part A – Identify Business Plan
In order to effectively run your own PT business, you will need to develop a business plan. This plan
will help to focus your business goals and objectives.
1. What is the purpose of a business plan?
2. What components make a business plan?
Part B – Develop A Business Plan
There are many components that you will need to research in order to create a good business plan.
This section requires you to imagine that you are creating your own PT business. You will need to
research the following areas and create a business plan for your own business.
1. In 400‐500 words, outline the goals and objectives for your PT business? In your response
you may need to consider the following:
Client needs
Marketing projections
Financial goals
Community benefits
Goals, objectives, plans, systems and processes
Lifestyle issues
Market focus
Proposed size
Short, medium, long term goals
Social responsibility
2. Research and document your legal and compliance requirements when working in the PT
industry. In your response, ensure that you address the following points (maximum 500
words):
Legal structure you have chosen to use
OHS obligations you have as owner (even self‐employed)
Taxation requirements
Legal documents you would need
Contracts you may need e.g. lease, disclaimer, memberships
Insurance requirements for yourself and your business
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Premises/use of public land usage approvals
3. Consider the clients that you intend to market to. (E.g. you might specialise in bootcamp,
older adults, child training, general PT training.) In no more than 150 words, identify who
you will provide services to. What are their needs and preferences?
4. Identify a minimum of 10 costs involved in starting your PT business. Research and estimate
the cost of each. How do you plan to pay for these items?
5. Do you intend to have any staff to support you? If so, who?
6. Below are a list of specialist services that you may need to use. Choose 3 and explain what
services they would provide an estimate the cost of these.
Accountant
Lawyers
Business coach
Insurance broker
Bank manager/financial
advisor
Trade association
Mentor
Business broker
Web developer
Part C – Marketing Your Pt Business
Consider how you will market your business to ensure that you reach the clients you intend to.
1. Describe in detail 3 promotional strategies you could use to promote your business. Include
what they are, how you go about launching them, how much they may cost and how you
will know if that promotional strategy worked.
2. Describe the range of PT services you will offer and the target client these will appeal too.
3. What prices will you charge for your services? Will you have a fixed rate or different rates
per hour? Explain why.
4. Client reaction – ask a family or friend to discuss or view your proposed marketing
strategies. What is their reaction? Are there any modifications you have made as a result of
consulting with these people as if they were potential clients?
PART D – DEVELOP RISK MINIMISATION STRATEGIES
In any business, it is important to develop risk management strategies.
The following is a list of risks that could present themselves in your PT business.
For each one, outline a strategy to minimise the risk (this could be a specific type of insurance or
contingency plan).
1. Theft of equipment
2. Client injury during training
3. Personal sickness or injury which prevents you operating your business
© Australian College of Sport & Fitness Certificate IV -Module 5 - Course Notes - 1308A.docx
© Australian College of Sport & Fitness Certificate IV -Module 5 - Course Notes - 1308A.docx
ADDITIONAL READING
ARTICLES The following articles and additional reading will support your learning for this module.
What are CONtINUING eDUCatION CreDItS aND Where CaN I Get them?
The purpose of Continuing Education Credits (CECs) is to
improve the skill and knowledge base of Fitness Professionals
in order for them to go about performing specific tasks within
the fitness industry. New knowledge and enhanced skills is
understood to improve specific competencies and general
learning of Fitness Professionals.
Fitness Professionals registered with Fitness Australia are
required to undergo Continuing Education during the period of
registration. Registration renewal is dependent on the Fitness
Professional submitting a minimum of 18 CECs gained over the
preceding 2 years.
The following guidelines indicate how CECs may be obtained
and the conditions under which CECs are awarded
General InformatIon
• A minimum 18 CECs are required for registration
renewal purposes
• Fitness Professionals registered in Instructor categories
are required to submit a minimum 3 CECs from accredited
programs relevant to their areas of registration
• Fitness Professionals registered in Trainer or Specialist
categories are required to submit a minimum 9 CECs from
accredited programs relevant to their areas of registration
approved CeC proGrams
• Available programs that have been approved for
CECs are listed on the Fitness Australia website under
Continuing Education. The value of the CECs depends
on the course content but may range from 1 CEC to
a maximum 15 CECs. CEC programs are listed under
Accredited or Recognised programs
employment
• CECs may be gained from employment in the Fitness
industry. CECs for employment are awarded at the rate
of 1 CEC for 50 hours work experience to a maximum
of 6 CECs in a 2 year period
• Self employed Fitness Professionals must complete a Statutory
Declaration and have it signed by an appropriate person as
defined on the Statutory Declaration form. A Statutory Declaration
form may be downloaded from the Fitness Australia website
• Fitness Professionals who are employees of a fitness centre
or gym must obtain a letter from their employer(s). Guidelines
and an example letter may be downloaded from the Fitness
Australia website
formal eduCatIon
• Fitness Professionals who continue their formal education will
be able to claim CECs
• The completion of a single unit of competency from the Fitness
Stream or Specialty options in Certificate III and/or Certificate
IV will gain 5 CECs. A maximum of 15 CECs will be awarded
for three or more single competencies. List of Competencies
Achieved must be submitted to claim these CECs
• The completion of a Specialty option from Certificate III or IV
resulting in an upgrade to an additional registration category
will be awarded 7 CECs
• The completion of a single unit of competency from the
Fitness Stream of the Diploma in Fitness will be awarded
5 CECs to a maximum of 15 CECs for three units of
competency or more. A List of Competencies Achieved
completed must be submitted
• The completion of a full Certificate III, Certificate IV or
Diploma whether through study, Recognition of Prior
Learning or Skills Recognition, will be awarded 18 CECs.
The List of Competencies Achieved for the full certification
must be submitted
• The completion of a relevant degree will be awarded 15 CECs
Fitness Australia: By the industry for the industry
other –
maGazInes and membershIps
• Subscriptions to magazines may be awarded 1 CEC per
annual subscription to a maximum of 2 CECs in a two year
period. Note: Subscription to multiple magazines does not
attract multiple CECs. The maximum 2 CECs in a two year
period remains regardless of the actual number of magazine
subscriptions held
• Subscription to a Fitness Professional membership
organisation will be awarded a maximum 2 CECs in a two year
period. Note: The maximum 2 CECs applies no matter how
many membership organisations are subscribed to
• 1 CEC will be awarded for the completion of a magazine test/
quiz to a maximum of 8 CECs in a 2 year period
peer observatIon
• The completion of one observation of one session will be
awarded 1 CEC to a maximum of 3 CECs in the single
registration category Group Exercise Instructor – Freestyle or
Aqua Instructor/Trainer. A maximum 6 CECs may be gained
through Peer Observation provided the Fitness Professional
is registered in both categories to which Peer Observation
applies. Conditions apply. Guidelines for Peer Observations
may be downloaded from the Fitness Australia website
In-house traInInG
• A maximum 4 CECs may be gained for a minimum 12 hours
In-House Training over the 2 year registration period. This
may be pro-rata at 2 CECs for a minimum 6 hours In-House
Training over the 2 year registration period. Completion of
In-House Training must be substantiated by a letter from the
employer. Guidelines for employers may be downloaded from
the Fitness Australia website
CeC proGram presenters
• Presenters of approved CEC programs will be awarded
the same number of CECs a program participant would
receive. Evidence of having presented the program must
be submitted and may be claimed only once in a two year
period regardless of the actual number of times the CEC
program has been presented
CertIfICate III, Iv and dIploma leCturers
• Lecturers at Registered Training Organisations who deliver
units of competency to students on the Certificate III in
Fitness, Certificate IV in Fitness or the Diploma of Fitness
may be awarded 9 CECs regardless of the actual number of
competencies taught. This may be claimed only once in a two
year period regardless of the actual number of times the units
have been taught. A letter from the employer detailing the
competencies taught must be submitted to substantiate the
request for CECs
Fitness Australia: By the industry for the industry
What are CONtINUING eDUCatION CreDItS aND Where CaN I Get them?
Contact Fitness Australia
Ph: 1300 211 311 Fax: 1300 734 613
Website: www.fitness.org.au
Valid to December 2008.
SAMPLE BUSINESS PLAN
FITNESS PLUS, INC
Disclaimer:
This is a sample business plan, so the company and business information are fictitious. This plan reflects our standard business plan model, and changes in outline and structure can be made as per client specifications.
ContentsEXECUTIVE SUMMARY ....................................................................................................................... 4
GENERAL COMPANY DESCRIPTION .................................................................................................... 6
1.1 COMPANY OVERVIEW: ...................................................................................................................... 6 1.2 MISSION AND VISION: ..................................................................................................................... 6 1.3 STRENGTHS AND CORE COMPETENCIES: .................................................................................................. 6 1.4 CHALLENGES: .............................................................................................................................. 6
INDUSTRY ANALYSIS ......................................................................................................................... 7
SERVICES OVERVIEW ......................................................................................................................... 9
3.1 SERVICES: .................................................................................................................................. 9 3.2 BENEFITS AND FEATURES: ................................................................................................................ 9 3.3 WHY PEOPLE NEED THIS SERVICE? ........................................................................................................ 9
MARKETING PLAN ............................................................................................................................ 10
MARKET ANALYSIS: ............................................................................................................................ 10 4.1 Market Description .................................................................................................................... 10 4.2 Market Facts: ........................................................................................................................... 13 4.3 Market Size: ............................................................................................................................. 14 4.4 Market Growth: ......................................................................................................................... 15 4.5 Market Demand: ....................................................................................................................... 17 4.6 Market Trends: ......................................................................................................................... 18 4.7 Market Growth Potential: ........................................................................................................... 19 4.8 Market Opportunities: ................................................................................................................ 21 4.9 Barriers to Entry: ...................................................................................................................... 21 4.10 Regulations: ........................................................................................................................... 21 4.11 Service Potential: .................................................................................................................... 21 4.12 Targeted Audience: ................................................................................................................. 22 4.13 Competition: ........................................................................................................................... 26 4.14 Market Niche: ......................................................................................................................... 27
MARKETING STRATEGY ......................................................................................................................... 27 5.1 Value Proposition: ..................................................................................................................... 27 5.2 Branding: ................................................................................................................................. 28 5.3 Marketing Objectives: ................................................................................................................ 28 5.4 Strategy: .................................................................................................................................. 28 5.5 Marketing Budget: ..................................................................................................................... 28
SWOT ANALYSIS ............................................................................................................................. 29 MARKETING MIX ............................................................................................................................... 31
OPERATIONAL PLAN ........................................................................................................................ 33
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8.1 Service Execution Timeline: ....................................................................................................... 33 8.2 Location: .................................................................................................................................. 33 8.3 Legal Environment: ................................................................................................................... 33 8.4 Personnel: ................................................................................................................................ 33
MANAGEMENT AND ORGANIZATION ............................................................................................................ 33 9.1 Management Strength: .............................................................................................................. 34 9.2 Bankers: .................................................................................................................................. 35 9.5 Advisor: ................................................................................................................................... 35
FINANCIAL PLAN .............................................................................................................................. 36
10.1 Start-up expenses ................................................................................................................... 36 10.2 Revenue Forecast (3 - Year): ................................................................................................... 37 10.3 Profit and Loss Projection (3-Year) ............................................................................................ 38 10.4 Pro forma Cash Flows (3-Year) ................................................................................................. 40 10.5 Projected Balance Sheet: ......................................................................................................... 41 10.6 Breakeven Analysis ................................................................................................................. 42
APPENDIX ........................................................................................................................................ 43
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Executive Summary
1. Fitness Plus will provide health care and body workout services.
2. Fitness Plus will offer low cost services to all segments of customer.
3. Owners are experienced and dedicated towards health care services.
4. Health care market is on the boom in USA.
5. Market volume is expected to reach $69.8 billion by the year 2012.
6. A large segment of market is still untapped.
7. Heart disease and obesity are on record high causing increase in health club demand.
8. Low income market segment is ignored by key competitors.
9. Health club market is competitive in Miami but provides equal growth opportunities.
10. Increasing awareness, obesity and heart disease are the driving forces for market growth.
11.Fitness Plus will have their own training facility with state of the art health care equipment from quality manufacturers.
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Highlights
Startup Expenses:
Expected Revenue Growth
Expected Profit Growth:
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General Company Description
1.1 Company overview:Fitness Plus health club is situated in Coral Gables, Miami-Dade County, Florida. It was formed by David Foster and Steve Homes in December 2008. Fitness Plus will provide health and fitness services that are good in quality and low in cost.
1.2 Mission and Vision:Vision: To create awareness about healthy lifestyle and its benefits
Mission: To provide strategies and training programs related to health care
1.3 Strengths and Core Competencies: Lowest cost of services in comparison to competitors
Certified trainers from top ranked health care institutions
Owner’s commitment and dedication towards health care services
1.4 Challenges:Fitness Plus will face a challenging situation in creating its brand image and attracting customers towards their services due to presence of already established players in the local market such as:
Gold's Gym
Coral Gables Adventure Bootcamp
30 In A Hurry Fitness Coral Gables Personal Training
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Industry Analysis
A health club can be descried as a service facility that is intended to provide physical health care exercises with the help of specialized equipment. It normally serves both male and female customers but in some cases females are provided special attention by providing them female only health clubs in which all staff including trainers are also females. Normally, the environment is made casual to provide customers comfortable experience that helps them performing bodybuilding and other exercises with ease.
According to a survey conducted in 20061, total number of health clubs in USA was 29,069 with over 41.3 million members. Almost 49.5%2 of those health clubs were in California, New York, Texas, Florida, Pennsylvania, Ohio, Illinois, Massachusetts, Michigan and Alabama. See the chart below to understand market share of top 10 states.
1 http://activemarketinggroup.com/AssetFactory.aspx?did=32 (accessed March 7, 2009) 2 Calculation from active marketing website, check appendix a
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Services Overview
3.1 Services:Fitness Plus will provide following health related services:
Aerobics
Cycling
Boxing
Yoga
Pilates
Muscle Training
Diabetes & Obesity Control
3.2 Benefits and Features: State of the art facility with latest equipment from quality manufacturers
Low cost with monthly, quarterly and annual subscription plans.
Personal qualified trainers to help our members achieving results without wasting much time
3.3 Why people need this service?Health care and fitness club market in Florida has been serving to a high income segment of late. Average income of health club member is $76,000 as of 2006 survey. This leaves a large segment of low-income customers with unmet needs. Fitness Plus will primarily exist to provide health care facility to the lower income class without compromising on quality of service.
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Marketing Plan
Market Analysis:
4.1 Market DescriptionAccording to a survey by The International Health Racquet & Sports Club Association in year 2007, it was mentioned that there are 29,636 health clubs in United States that house a total of 41.5 million3 members. Health clubs that are involved in commercial business have a total membership of almost 20.4 million and 17.2 million4 members belonging to not for profit health clubs.
Commercial20.449%Not for
Profit17.242%
Others3.99%
Total Members Distribution in Millions
Commercial
Not for Profit
Others
3 http://cms.ihrsa.org/index.cfm?fuseaction=page.viewPage.cfm&pageId=19547 (accessed March 9, 2009)4 http://www.goldsgym.com/golds/franchising/facts.php (accessed March 9, 2009)
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Health Clubs in Florida:
State of Florida houses 1,691 health clubs out of total 29,069 in the USA, which makes almost 5.81%5. There were only 863 clubs in 1995 that grew at almost 9.59%6 in 2007.
5 Calculation from active marketing website, check appendix b6 Calculation from active marketing website, check appendix c
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Growth of Health Clubs in Florida:
4.1.1 Industry Life Cycle:
Health care and fitness industry in USA is still in the growing stage, although it has been more than two decades of active operations. Currently, total membership has reached 41.3 million with an average household income of $76,000. Market coverage is only 14%7 of total population throughout USA, which is huge potential for growth in years to come.
7 Calculation of population from website http://www.census.gov/ (accessed March 9, 2009)
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4.1.2 Cyclical trends in Industry:
Health club business is not affected by different seasons and keeps running smoothly throughout the year.
4.2 Market Facts:Health club market in USA has grown rapidly in the last 10 years, following are the key points related to health club members in USA.
Out of the total 41.3 million members in USA, 48% are male and 52% female.
Average annual income of health club member is $76,000.
On average health club member attends 92 days per year in their club.
Most widely used health club program is personal training.
Top area of development in U.S. health clubs is cardiovascular equipment.
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USA health Club industry
Although medical research has pointed out several benefits of body fitness and workout, still almost 90% population in America is yet to attend health clubs.
4.3 Market Size:Total market size in Miami, Florida is almost 1.28 million8 members. Total population in Miami including Miami-Dade County is 2.82 million9. That’s makes almost 45.3%10
attendance of members in health clubs. See the chart below to understand percentage of estimated members.
8 Calculation from active marketing website, check appendix d9 http://www.miamigov.com/economicdevelopment/pages/Research/Miami%20Market%20Analysis_112707.pdf (accessed March 9, 2009), check appendix e10 Calculation from active marketing website, check appendix f
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4.4 Market Growth:Health care market in US has grown at a very healthy rate in the last decade. As of 2007, health club market reached $17.6 billion. It has doubled in size at almost 12.56%11 that was $7.8 billion in year 1995. It was a 24.1 million12 members market in the year 1995 which has grown at almost 7.13% to reach 41.3 million in 2005. See the chart below to understand market growth of health clubs in USA.
11 Calculation from website seekingalpha.com, check appendix g12 http://seekingalpha.com/article/7954-life-time-fitness-a-stock-on-steroids-ltm (accessed March 9, 2009)
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Factors Causing Market Growth:
Health Care Expenditure: Health care expenditure is increasing in USA, it was 1.1 trillion in year 1997, which grown at almost 9.92%13 to reach 2.24 trillion in 2007. See the chart below to understand health care expenditure growth. Almost 10% of that expenditure is on the account of obesity disease.
13 http://www.cms.hhs.gov/NationalHealthExpendData/downloads/nhe2007.zip (accessed March 7, 2009)
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4.5 Market Demand:Health care club market in USA is getting more and more demanding with the passage of time. Following are the common demands that have arise in recent past.
1. Customization: People who already have membership or those who are willing to have one, are interested in subscribing to a customized health care plan according to their requirements or as per the recommendation of medical expert.
2. Ease of Service: People are looking for exercises that are easy to adopt and are performed by expert trainers.
3. Effectiveness of Exercise: Members are very demanding over results of the exercises which they are performing. An expert trainer can be helpful in setting a proper exercise plan for the members so they can work out accordingly.
Factor Causing Market Demand
Per Capita Income Increase: Continuously increasing per capita income in the last decade has enable people of USA to focus more on their health related issues such as spending time in health care clubs and gyms. Health care
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expenditures are directly fueled by this increment in per capita income; see the chart below for details of growth rate in per capita income which is almost 5.4%14
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
$28K $30K $31K$33K
$35K $35K$36K $37K
$39K $41K$44K
Growth in Per Capita Income
4.6 Market Trends:Health care club industry has been changing its trends very quickly of late. Last five years have seen major changes in trends such as following:
1. Individual usage of fitness and health care training equipment has increased.
2. Body work out and exercise has become a daily life routine of many Americans in the last decade.
3. Fitness memberships are increasingly getting popular in office environment of USA. Companies are including health memberships as part of employee remuneration package.
14 http://www.who.int/whosis/data/Search.jsp?indicators=[Indicator].[SDEC].Members (accessed March 7, 2009), check appendix h
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4.7 Market Growth Potential:Health care club industry has a lot of potential in the future for both existing and new investors. Market is expected to reach 60 million15 members by the year 2010. Market volume which is $17.6 billion as of 2005 is expected to reach $31.8 billion16 by the year 2010. See the chart below for expected growth of members and market volume by the year 2012.
15 Calculation from website seekingalpha.com, check appendix i16 Calculation from website seekingalpha.com, check appendix j
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0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
2005 2006 2007 2008 2009 2010 2011 2012
$17.60 $19.81 $22.30$25.10
$28.25$31.80
$35.79$40.29
Estimated Market Growth in Billions
2005
2006
2007
2008
2009
2010
2011
2012
Factor Causing Market Growth Potential:
Health Care Expenditure: USA health care expenditure has been continuously growing in the past and it is expected to reach $2.93 trillion by the year 201217. See the chart below to understand potential growth of health care expenditures:
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2007 2008 2009 2010 2011 2012
$2.24 $2.38 $2.51 $2.62 $2.77 $2.93
Health Care Expenditure Growth in Trillions
2007
2008
2009
2010
2011
2012
17 http://www.cms.hhs.gov/NationalHealthExpendData/downloads/nhe65-18.zip (accessed March 7, 2009)
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4.8 Market Opportunities:Health care club industry offers a huge lot of opportunities for existing and potential investors. Marketing is growing for many reasons, some of them are following:
1. Almost 300 million people are affected worldwide with obesity.
2. Almost 130 million Americans are overweight that includes more than 61 million who obese.
3. 15% children’s in United States are overweight.
4. 18 million Americans with diabetes are suffering from high blood pressure and heart disease.
5. Treatment cost of obese patients is almost $100 billion, which is 9% of total health care expenditure in USA.
4.9 Barriers to Entry:No such barriers in the entry of health care clubs in USA.
4.10 Regulations: U.S. Food and Drug Administration
Centers for Disease Control and Prevention
United States Department of Health and Human Services
4.11 Service Potential:Currently Fitness plus are only focusing on developing a fitness and health care facility, but n the future they are planning to extend its operations for creating public awareness about different disease and heath care issues on no profit basis.
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4.12 Targeted Audience:
Fitness Plus will be starting its operations in Miami, Florida. This market houses almost 21.7% of total Florida State market of 1,691 health care clubs. Following are the demographics of Miami.
a. Total Population:
According to 2007 report of Miami government, total population is 2,828,649. It was 2,295,937 in the census of 1990. Growth rate is almost 1.36%18 from 1990 to 2007. See the chart below.
0
0.5
1
1.5
2
2.5
3
1990 2000 2007
2.292.61
2.82Miami Population Growth in Millions
Millions
b. Estimated Population Growth:
As per the growth rate of Miami population in 2007 that is 1.36%, population in Miami is estimated to reach 3 million19 by the year 2012. See the chart below to understand population growth in Miami.
18 Calculation from website seekingalpha.com, check appendix k19 Calculation from website seekingalpha.com, check appendix l
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2.70
2.75
2.80
2.85
2.90
2.95
3.00
3.05
2007 2008 2009 2010 2011 2012
2.822.86
2.902.94
2.983.02
Miami - Estimated Population Growth in Millions
2007
2008
2009
2010
2011
2012
c. Population Household Income:
According to 2007 report of Miami government, average household income of Miami residents is $53,408. See the chart below to understand different levels of household income.
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020,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000
199,886
128,333118,046
146,752157,908
86,92279,543
35,84213,243
7,919
Income Distribution in Miami
Dollars
21%
13%
12%15%
16%
9%
8%
4% 1% 1%
Percentage of Income Distribution in Miami
Less than $15,000
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $249,999
$250,000 to $499,999
$500,000 or more
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Coral Gables Market:
Fitness Plus is targeting Coral Gables market which has a population of 42,79420. Their targeted segment is 2,63621 potential customers who are earning below $25,000. It is almost 15.51%22 of total households of Coral Gables city which is 16,994.This segment is unrivaled by the top health clubs of city. See the chart below to understand different income segments in Coral Gables.
Household Income of Coral Gables
2,636
1,102
1,989
2,535
1,326
2,227
1,487
3,692
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Less than$25,000
$25,000to
$34,999
$35,000to
$49,999
$50,000to
$74,999
$75,000to
$99,999
$100,000to
$149,999
$150,000to
$199,999
$200,000or more
Income
Target Segment
20 http://quickfacts.census.gov/qfd/states/12/1214250.html (accessed March 9, 2009)21 http://factfinder.census.gov/servlet/ADPTable?_bm=y&-geo_id=16000US1214250&-qr_name=ACS_2007_3YR_G00_DP3YR3&-ds_name=ACS_2007_3YR_G00_&-_lang=en&-_sse=on (accessed March 9, 2009)22 Calculation from website census.gov, check appendix m
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4.13 Competition:
Fitness Plus will enter in a highly competitive market of Miami, but following three will be direct competitors of them due to their presence in Coral Gables.
1. 30 In A Hurry Fitness Coral Gables Personal Training:
112 Valencia Ave.
Coral Gables, FL 33134
Website: www.30inahurryfitness.com
Services offered: Fitness Consultation, Personal Training, 30 Day Makeover, Intense 30 Minutes, Adventure BootCamp, Home Workouts and Fitness Equipment.
2. Coral Gables Adventure Bootcamp:
2810 Ponce de Leon Blvd.
Coral Gables, FL 33134
Website: www.gablesbootcamp.com
Services offered: Core conditioning, short distance running (less than one mile), muscular strength, jumping rope, circuit training, hiking, sport yoga, fitness kick boxing, Pilates, sport drills and obstacle courses.
3. Gold's Gym:
3737 S.W. 8th Street
Coral Gables, FL 33134
Website: www.goldsgym.com
Service offered: Strength training/cardio, diet and nutrition, group exercise of spin, yoga, Pilates and many others, fitness related medical information, sports training, senior fitness, youth fitness, pre and post natal.
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4.14 Market Niche:Fitness Plus will enter in the market to serve low income segment of customer that forms 6.1% of total population in Coral Gables who are earning less than $25,000. Fitness Plus will provide low price services in the start to attract masses, and eventually set it to competitive rate.
Marketing Strategy
5.1 Value Proposition:• State of the art facility with latest equipment from quality manufacturers
• Low cost with monthly, quarterly and annual subscription plans. Starting from as
low as $100 for basic body workout exercises.
• Personal qualified trainers to help our members achieving results without wasting
much time
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Value
State of the Art Health care
facility
Low cost of Subscription
Personal Trainers
5.2 Branding:Fitness Plus will create their official website for creating a brand and company image in the market, as well as providing subscription online.
5.3 Marketing Objectives:Fitness Plus will focus on creating a brand image in the Coral Gables vicinity. They will participate in the major events of health care awareness and education programs.
5.4 Strategy:Fitness Plus will start by targeting low income segment of market downtown Coral Gable area. They will convince people about the benefits and needs of wellness programs. This will be accomplished by aggressively pursuing interaction and relationships with peoples in public health awareness programs and by sending newsletters and emails through website.
5.5 Marketing Budget:Fitness Plus has allocated $5,000 for marketing in the year 2009. This budget will be used for advertising on newspaper, television, radio and printing brochures.
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SWOT Analysis
Strengths:
Management committed towards to a result orientated approach to attract and maintain customers in a highly competitive market.
Health care program is well-thought according to the need of layman.
Lowest cost of service in the entire market of Coral Gables.
Company will hire qualified and trained staff.
Weaknesses:
Personal training services can be high in costs.
Fitness Plus is low in staff that can be problem in providing service to a large pool of members.
Club is short of marketing budget to attract large business client.
Opportunities:
Health care club market is rapidly growing.
Increasing heart and obesity disease are causing people to pay importance to exercise and health care activities.
People are getting use to have gym and health clubs in their daily routine of life.
A large segment of market is still untapped, low income area will be of special focus for Fitness Plus which is totally ignored by the rivals.
Threats:
Recession and economic downturn can slow down the growth of health clubs.
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Strength• Lowest price
• Management of health care experts
• Qualified and trained staff
Low cost offer from well established competitors. Although it’s a small level threat due to a fact that market is rapidly growing.
Low cost health care equipments availability for home exercise.
Graphical Presentation of SWOT
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Weakness• High cost of personal
training service
• Low in marketing budget and staff
Threats
• A possible low cost of service from competitors
• Availability of low cost health care equipment
Opportunities
• Rapidly growing market
• Obesity disease is on the record high
• No competition in the low cost segment
Internal
External
HarmfulFor achieving the objectives
HelpfulFor achieving the objectives
Marketing Mix
Fitness Plus health club’s marketing mix is based on the following factors of product, cost, distribution, advertising and publicity.
Product:
• Health Care Services:
Aerobics
Cycling
Boxing
Yoga
Pilates
Muscle Training
Diabetes & Obesity Control
Price:
• Penetration Pricing:
Fitness Plus will face a challenging situation in highly competitive market of Coral Gables, Florida. Therefore health club will offer quality exercise and body work out services at cost less than existing market standard which is maintained by players such as Gold's Gym. They will offer basic body workout and exercise service for only $100, in addition they will offer other services low in cost to compete with the market.
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Place:
• Direct Supply / Direct Sale :
Fitness Plus will have their health club facility near the main street of Coral Gable city. They will not involve in any kind of franchise or branch network other than Coral Gable vicinity.
Promotion:
• Media Advertising:
Fitness Plus will use internet, newspapers, magazines, television and radio as the medium of advertisement. In addition they will print 5,000 brochures for creating awareness in the market about their health care services; they will be distributed in major health care seminars and events where officials from Fitness Plus will participate.
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Operational Plan
8.1 Service Execution Timeline:Fitness Plus will follow this service execution model to enter in the health club market.
TaskExecution PeriodJanuary
February March April May June July
Choosing location Website Development Hiring training and admin staff
Advertising Opening of Health Club
8.2 Location:Fitness Plus will start its business in main street area of Coral Gables; there is presence of already established health clubs such as Gold's Gym and Coral Gables Adventure Bootcamp.
8.3 Legal Environment:There are no current legal obligations for Fitness Plus health club.
8.4 Personnel:Fitness Plus will start with a total of 10 initial staff members that includes owners as well.
Management and Organization
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9.1 Management Strength:
Steve Homes:
Steve is the owner and manager of overall operations of Fitness Plus. He is MBA from the University of California with major in health care management. He is a great enthusiast of health care activities and is involved in them since his academic age.
Exposure to Management:
Steve served as GM at CBC Heart Disease Hospital from year 2000 to 2004. He was initially appointed for 2 years but later his contract was extended in reward to his excellent performance.
Experience as Financial Analyst:
Steve worked as financial analyst for more than 5 years, he took more than 5 financial management projects of multinational health care companies, which includes following companies:
• Covidien
• DentiMax
• Healthcare IT Transition
• LifePoint Healthcare Services
• Cypress Pharmaceutical Company
Warren Glitz:
Glitz is the co-owner and manager sales of Fitness Plus. He is MBA from university of Texas with major in sales and marketing. Glitz has more than 10 years of experience of sales and marketing at managerial position in top ranked pharmaceutical companies, which includes following:
• Caritas Christi
• Lincare Holdings Inc
• Jefferson Health System
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• Memorial Health Ventures
• Apria Healthcare Group Inc
• Gentiva Health Services, Inc
9.2 Bankers:That will be decided based on the requirement of feasibility of business.
9.5 Advisor:Miami Athletic Club & Wellness Center is the advisor of Fitness Plus.
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Financial Plan
10.1 Start-up expenses
The start-up expenditures for Fitness Plus, Inc are summarized below:
Startup ExpensesFitness Plus, Inc
Sources of Capital
Investment requirement $1,000,000
-
Total Investment $1,000,000
Startup Expenses
Health club development $346,000
Personnel $290,000
Capital Expenditures $150,000
Consulting Services $90,000
Promotion $5,000
Total Start-up Expenses $881,000
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10.2 Revenue Forecast (3 - Year):
Sales Forecast (3 Years)
Fitness Plus, Inc
Year 1 Year 2 Year 3
Health Club memberships
Year 1: 25000 members $1,225,000
Year 2: 100,000 members $4,900,000
Year 3: 300,000 members $14,700,000
Others:
Sales of training equipment (20% growth each year) - $35,000 $42,000
Total Revenue $1,225,000 $4,935,000 $14,742,000
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10.3 Profit and Loss Projection (3-Year)
Year 1 Year 2 Year 3
Revenue (Sales)
Health club memberships $1,225,000 $4,900,000 $14,700,000
Sales of sports training equipment - $35,000 $42,000
Total Revenue (Sales) $1,230,000 $4,940,000 $14,751,000
Operating Expenses
Health club development $346,000 - -
Personnel $290,000 $840,000 $940,000
Capital Expenditures $150,000 $148,200 $150,000
Consulting Services $90,000 $480,000 $480,000
Promotion $5,000 $6,000 $6,000
Total Operating Expenses $881,000 $1,474,200 $1,576,000
Profit Before Taxes $322,900 $3,385,800 $13,025,000
Taxes (10%) $32,290 $338,580 $1,302,500
Net Profit $290,610 $3,047,220 $11,722,500
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10.4 Pro forma Cash Flows (3-Year)
Pro forma Cash FlowsFitness Plus
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $1,230,000 $4,940,000 $14,751,000
Cash from Receivables $0 $0 $0
Subtotal Cash from Operations $1,230,000 $4,940,000 $14,751,000
Additional Cash Received
New Borrowing $1,000,000 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $2,230,000 $4,940,000 $14,751,000
Expenditures
Expenditures from Operations
Personnel $290,000 $840,000 $940,000
Consulting Services $90,000 $480,000 $480,000
Promotion $5,000 $6,000 $6,000
Subtotal Spent on Operations $385,000 $1,326,000 $1,426,000
Additional Cash Spent
Taxes $32,290 $338,580 $1,302,500
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $810,000 $810,000 $1,345,000
Dividends $0 $0 $0
Subtotal Cash Spent $1,227,290 $2,474,580 $4,073,500
Net Cash Flow $1,002,710 $2,465,420 $10,677,500
Cash Balance $1,012,710 $3,478,130 $14,155,630
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10.5 Projected Balance Sheet:
Balance Sheet (Projected)
Fitness Plus, Inc
Beginning Projected
Year 1Assets Current Assets Cash in bank $10,000 $1,012,710
Accounts receivable
- 14,040
Prepaid expenses 1,500 1,500
Total Current Assets $11,500 $1,028,250 Fixed Assets Training Machines $346,000 $660,000
Furniture $150,000 $150,000
Total Fixed Assets $496,000 $810,000
TOTAL Assets $507,500 $1,838,250
Liabilities and Equity Current Liabilities Accounts Payable $0 $40,140 Long-term Debt Bank loans payable $0 $1,000,000
Total Liabilities $0 $1,040,140 Owners' Equity Retained earnings - beginning $507,500 $507,500
Retained earnings - current - $290,610
Total Owners' Equity $798,110
Total Liabilities & Equity $507,500 $1,838,250
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10.6 Breakeven Analysis
Breakeven Analysis
Fitness Plus, Inc
Cost Description Fixed Costs ($)Variable Costs (%)
Variable Costs
Personnel 10.00%
Consulting services 3.00%
Fixed Costs
Health club development $346,000
Personnel $290,000
Capital Expenditures $150,000
Consulting Services $90,000
Promotion $5,000
Taxes $32,290
Total Fixed Costs $913,290
Total Variable Costs 13%
Breakeven Sales level = 1049759
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Appendix
a. 49.5% market share of top ten states out of total 29,069 health clubs in USA.
Website: http://activemarketinggroup.com/AssetFactory.aspx?did=32
• California 3,281
• New York 1,842
• Texas 1,860
• Florida 1,691
• Pennsylvania 1,393
• Ohio 993
• Illinois 1,183
• Massachusetts 874
• Michigan 909
• Alabama 366
b. Florida market share in health clubs is 5.81%.
Website: http://activemarketinggroup.com/AssetFactory.aspx?did=32
• Total 29,069 in USA
• Total 1,691 health clubs in State of Florida
c. Florida health club growth rate is 9.59%.
Website: http://activemarketinggroup.com/AssetFactory.aspx?did=32
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• 863 clubs in 1995
• 1,691 clubs in 2005
d. Total market size of Miami, Florida is 1.28 million.
Website: http://activemarketinggroup.com/AssetFactory.aspx?did=32
• Florida has 14.5% of total 41.3 million (5.9 million)
• Miami 21.7% of total Florida market (1.28 million)
e. Total population in Miami is 2.82 million as of 2007 report.
Website: http://www.miamigov.com
• Population in Miami 2,430,421
• Population in Miami-Dade County 398,228
f. Total members in Miami almost 45.3%.
Website: http://activemarketinggroup.com/AssetFactory.aspx?did=32
• Total population 2.82 million
• Estimated members 1.28 million
g. Health club market growth in volume is 12.56% and member growth 7.13%.
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Website: http://seekingalpha.com/article/7954-life-time-fitness-a-stock-on-steroids-ltm
o Market Volume:
2005 market size is $17.6 billion
1995 market size was $7.8 billion
o Members Growth:
1995 total members were 24.1 million
2005 total members are 41.3 million
h. Growth rate in per capita income from 1996 to 2006 is 5.4%.
Website: http://www.who.int/
• Per capita income in 1996 was $28,600
• Per capita income in 2006 $44,070
i. Market will touch 60 million members by the year 2010.
Website: http://seekingalpha.com/
• Growth rate of 7.13% from 1995 to 2005
• Market in 2005 was 43.10 million
• Market in 2006 will be 46.17 million
• Market in 2007 will be 49.47 million
• Market in 2008 will be 52.99 million
• Market in 2009 will be 56.77 million
• Market in 2010 will be 60.82 million
• Market in 2011 will be 65.15 million
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• Market in 2012 will be 69.80 million
j. Health care club market will reach $31.8 billion by the year 2010.
Website: http://seekingalpha.com/
• Growth rate of 12.56% from 1995 to 2005
• Market volume in 2005 was $17.60
• Market volume in 2006 will be $19.81
• Market volume in 2007 will be $22.30
• Market volume in 2008 will be $25.10
• Market volume in 2009 will be $28.25
• Market volume in 2010 will be $31.80
• Market volume in 2011 will be $35.79
• Market volume in 2012 will be $40.29
k. Total population growth rate in Miami is 1.36%.
Website: http://www.miamigov.com
• Population in 1990 was 2.29 million
• Population in 2000 was 2.61 million
• Population in 2007 was 2.82 million
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l. Total population of Miami will reach 3 million by the year 2012.
Website: http://www.miamigov.com
• Growth rate from 1990 to 2007 is 1.36%
• Population in 2007 was 2.82 million
• Population in 2008 will be 2.86 million
• Population in 2009 will be 2.90 million
• Population in 2010 will be 2.94 million
• Population in 2011 will be 2.98 million
• Population in 2012 will be 3.02 million
m. Target population of Fitness Plus is 15.51%.
Website: www.census.gov
• Below $25,000 household income is 2,636
• Total household in Coral Gables is 16,994
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How to set out tax invoices and invoicesVoluntary standards to help you set out tax invoicesas well as invoices the do not include GST.
NAT 11675-08.2010
Fact sheet for businesses that issue invoices Business
WHY STANDARDISE THE WAY TAX INVOICES AND INVOICES ARE SET OUT?These voluntary standards have been developed in consultation with small business, in response to feedback about their frustration with inconsistent tax invoice and invoice formats.
The standards will help achieve greater consistency in the set out of tax invoices and invoices, making it easier for recipients to locate the necessary information for tax purposes.
For more information about the specific requirements of a tax invoice refer to: ■ Valid tax invoices and GST credits (NAT 12358)■ ‘Section 03 – Issuing and obtaining tax invoices’ in GST
for small business (NAT 3014).
WHAT DO I NEED TO DO TO STANDARDISE MY TAX INVOICES OR INVOICES?Consider the following examples when you next design or select a format for your tax invoices or invoices. Features such as business logos, paper colour, font style, advertising and other additional content that your tax invoices or invoices may have are not affected by these voluntary standards.
For more information, refer to:■ Goods and Services Tax Ruling GSTR 2000/17 – Goods
and services tax: tax invoices■ GST for small business (NAT 3014)■ Record keeping for small business (NAT 3029).
If you don’t use a cash register, consider thefollowing tips:■ avoid printing your invoices on thermal paper wherever
possible as the print can fade■ avoid small font sizes as they can be difficult to read, and■ avoid issuing tax invoices on paper which is smaller than
A5 or larger than A4 as this can create storage difficulties.
HOW TO SET OUT TAX INVOICES AND INVOICES
2
EXAMPLES OF WHAT THEY LOOK LIKE USING THE VOLUNTARY STANDARDSThe following examples show how these voluntary standards look.
EXAMPLE 1: Tax invoice for goods or services that all include GST (taxable supplies only)
These tax invoices should include sufficient information to ascertain:1 the identity of the supplier, such as the
business name at the top 2 the ABN of the supplier at the top, near
the supplier’s identity3 the date of issue of the tax invoice at the
top, on the right hand side4 that the document is intended as a tax
invoice, such as including the words ‘tax invoice’ at the top
5 an invoice number shown prominently alongside the words ‘tax invoice’
6 the purchaser’s identity, such as name,or ABN, for goods or services costing $1,000 or more
7 a unit description of each good or service supplied, including quantities – it is optional to include item numbers, and
8 the GST exclusive price, the GST amount and the GST inclusive price for each item, together with the totals for these, vertically in the bottom right hand corner.
HOW TO SET OUT TAX INVOICES AND INVOICES
3
EXAMPLE 2: Tax invoice for goods or services that don’t all include GST (mixed supplies)
These tax invoices should include sufficient information to ascertain:1 the identity of the supplier, such as the
business name at the top 2 the ABN of the supplier at the top, near
the supplier’s identity3 the date of issue of the tax invoice at the
top, on the right hand side4 that the document is intended as a tax
invoice, such as including the words ‘tax invoice’ at the top
5 an invoice number shown prominently alongside the words ‘tax invoice’
6 the purchaser’s identity, such as name,or ABN, for goods or services costing $1,000 or more
7 a unit description of each good or service supplied, including quantities – it is optional to include item numbers
8 an indication of which goods or services don’t include GST by showing a ‘zero’ in the GST amount column
9 an indication of which goods or services include GST by showing the GST amount in the GST payable column, and
10 the GST exclusive price, the GST amount and the GST inclusive price for each item, together with the totals for these, vertically in the bottom right hand corner.
HOW TO SET OUT TAX INVOICES AND INVOICES
4
These tax invoices should include sufficient information to ascertain:1 the identity of the supplier, such as the
business name at the top 2 the ABN of the supplier at the top, near
the supplier’s identity3 the date of issue of the tax invoice at the
top, on the right hand side4 that the document is intended as a tax
invoice, such as including the words ‘tax invoice’ at the top
5 an indication of which goods or services are taxable by showing an asterisk ‘*’ alongside the supplies, with a note at the bottom advising what the * indicates
6 the final amount payable, which is GST inclusive, shown at the bottom, and
7 the amount of GST which is payable should be clearly stated as follows at the bottom: ‘Total includes GST of $.....’
If the tax invoice is for goods or services costing $1,000 or more, the tax invoice should also contain sufficient information to ascertain the identity of the purchaser, or ABN.
EXAMPLE 3: Tax invoice which has been issued from a cash register
3 Date: 05/07/2010
4 TAX INVOICE
$
Item 1 5.00* 5
Item 2 3.00
Item 3 2.00
Item 4 10.00*
Item 5 6.00
TOTAL AMOUNT PAYABLE (INC. GST)
TOTAL INCLUDES GST OF $1.36 7
* Includes GST 5
26.00 6
1Guido’s Gadgets 2 2 ABN XX XXX XXX XXX
HOW TO SET OUT TAX INVOICES AND INVOICES
5
EXAMPLE 4: Invoice for goods or services that do not include GST
These tax invoices should include sufficient information to ascertain:1 the business name of the supplier at the
top 2 the ABN of the supplier at the top, near
the supplier’s business name3 the date of issue of the invoice at the top,
on the right hand side4 the word ‘invoice’ at the top, stated
prominently5 an invoice number shown prominently
alongside the word ‘invoice’, and
6 the statement ‘No GST has been charged’ should be included at the bottom.
Technology and Personal Training Trainer: Deborah Plitt, B.S., C.C.S., Life Fitness Academy Trainer
Q: How long have you been a Personal Trainer?
A: 14 Years
Q: How has technology helped you as a personal trainer?
A: Technology has helped me as a personal trainer in that it allows me to work with multiple clients at one time. I can train in person, online, provide Podcasts and record video demonstrations for my clients. In addition, technological advancements have allowed me to communicate with my clients 24:7. For example, I’ve sent e-mail and text message workouts to clients on vacation for their exercise fix.
Q: Are there any disadvantages to technology?
A: The negative side of technological advancements for personal trainers is the lack of in-person communication. With more and more advancements in equipment, programs and web sites that provide exercise programs, the personal trainer is viewed as less important. Technology has provided a more affordable way of personal training, although it will never be the same as having a trainer right there with you making split-second decisions and providing you with years of experience.
Q: How do you utilize the internet as a Personal Trainer?
A: The internet has allowed me to more effectively research a vast array of areas that clients ask me about, such as joint pain, supplements, and any other common questions in the areas of health and fitness. My clients have also gone online to become more knowledgeable and ask more educated questions.
Q: Is there any new technology that you’re looking forward to getting your hands on?
A: Yes, the USB capabilities on the new Life Fitness Treadmills. With a USB stick and the USB port on the new 95 Series Treadmills I can provide my clients with customized cardiovascular workouts. In addition, after their workout, my client can store their results on the USB stick so that I can record and track their progress on my computer. This new technology will allow for better retention, feedback and motivation for my clients.
Image description. Better Health Channel logo End of image description.
Imagedescrip
Personal trainers - how to choose one
People use personal trainers to assist them reach their individual health and fitness goals. A goodpersonal trainer will tailor an exercise program to meet your goals and personal health needs,teach you the best way to exercise and motivate you.
Good places to start looking for a personal trainer include local gyms, health centres or fitnesscentres. When you're at the gym, watch trainers with their clients and see how they interact. Makea note of trainers who get along with their clients and seem fully involved in their workouts. Askfriends and workmates for word of mouth recommendations or look in the telephone directory forpersonal trainers in your area.
Take your time before you make your final choice. Make sure your personal trainer is properlyqualified before entering into any agreement. Also, while professional credentials and experienceare vital, it helps to rate personality and communication high on your list of priorities as well. Youmay be spending a lot of time with this person.
What is a personal trainer?A personal trainer should have relevant qualifications and be registered with a reputable fitnessorganisation (Kinect Australia or Fitness Australia). This person's job is to assess your fitness level,set up a program for you and keep you motivated.
A good personal trainer can:
• Help you make the best use of your exercise time.• Help motivate you.• Help you with technique (efficiency and safety)• Monitor your progress• Adjust your exercise program in response to your changing fitness level• Offer sound advice on good nutrition• Vary your exercise options to keep you motivated, interested and enjoying your workouts.
Qualifications and experienceMany personal trainers have completed a Certificate IV (Fitness) course or they may haveundertaken a degree in exercise science or human movement.
• Ask about their professional qualifications. They should have proof of their certification,including first aid.
• Ask about their experience. How long have they been working as a personal trainer?• Ask what sort of results they’ve helped other clients achieve. Ask the trainer for names,
phone numbers and even testimonials of other clients they have worked with and callthem.
• Ask how they keep up-to-date on health and fitness research. For example, they may takerefresher courses, attend industry seminars or subscribe to exercise science journals.
• If you have a specific medical problem, injury or condition (such as being pregnant, heartproblems, diabetes) make sure your trainer has education in these areas and will work withyour doctor.
• Ask if they (or their employer) have professional liability insurance. They should have proofof this.
What to look for in a personal trainerFactors to discuss with the personal trainer include:
• How much does it cost to hire their services and what types of payment options areavailable? Do they offer a discount for larger training packages, for example, for more thanone session a week?
Personal trainers - how to choose one Page 1 of 3
• What about other fees, such as extra services or cancellation fees?• Will they offer a free first session or a discounted trial period before you commit? It is
important you feel comfortable training with this personal trainer.• Are they available at the particular times and days when you’re free to exercise?• Do they recommend that you have a medical check-up before embarking on a new exercise
program? This is particularly important if you haven’t exercised in a long time, areoverweight, are aged over 40 years or have a chronic medical condition.
• What range of physical activity options do they offer? Would you be working out in a gym,at home or outdoors?
• Ask how they tailor exercise programs for clients. How would your preferences be takeninto account? What sort of services do they offer to support you in achieving your goals?
• What about updates to the exercise program that accommodate your improving fitnesslevels?
• Can they offer nutritional advice or refer you to appropriate sources of information onhealthy eating?
Consider some more personal aspects that relate to the relationship with your trainer. Trust yourinstincts about the impressions the trainer makes upon you.
• The personal trainer should be someone you like. Ask yourself if you think you could getalong with the trainer and whether you think the trainer is genuinely interested in helpingyou.
• A good listener – a good trainer will listen closely to what you say. Make sure theyunderstand your goals. Make sure you feel comfortable asking questions.
• Attention – a good trainer will be focused only on you during your sessions.• Tracking progress – a good trainer will regularly assess your progress and change things if
necessary.
Beware of dubious operatorsSome people who profess to be personal trainers aren’t qualified and have very little experience.Occasionally, personal trainers are unethical even though they have the correct credentials.Generally speaking, warning signs include:
• Can’t or won’t provide proof of professional credentials.• Can’t or won’t offer references.• Try to force you into a contract during the first session – before you’ve had a chance to see
if you’re compatible.• Try to sell you supplements or dieting aids, or insist that particular supplements or dieting
aids must be taken as part of the program.• Advocate useless or dangerous exercise aids or weight loss techniques such as saunas,
passive exercise machines or body wraps.• Have a ‘one size fits all’ exercise program that doesn’t take your individual health and
fitness into account.• Insist that their method of training is the only method that works.• At your first session, take little notice of your goals and personal health and fitness
requirements and instead want you to do a workout.• Don’t turn up on time (or at all) to appointments and are difficult to contact by phone or
email.• Promise immediate and spectacular results — realistically you’d expect to see some sort of
improvement in around six weeks.
Where to get help
• Your doctor• Kinect Australia• Staff at fitness centres• 'Go for your life' Infoline service Tel. 1300 73 98 99
Things to remember
• You can find personal trainers at your local gym or fitness centre, by asking friends forword-of-mouth recommendations or by looking in telephone directories – listed underhealth and fitness centres.
Personal trainers - how to choose one Page 2 of 3
• The recommended minimum qualification for a personal trainer is to be a Kinect Australiaor Fitness Victoria registered fitness leader and hold a Certificate IV in Fitness.
• Professional credentials and experience are vital, but it helps to rate personality high onyour list of priorities too, since you’ll be spending a lot of time with this person.
This page has been produced in consultation with, and approved by: Kinect Australia (inc VICFIT in Victoria)
This Better Health Channel fact sheet has passed through a rigorous approval process. Theinformation provided was accurate at the time of publication and is not intended to take the placeof medical advice. Please seek advice from a qualified health care professional.
For the latest updates and more information, visit www.betterhealth.vic.gov.au
Copyight © 1999/2010 State of Victoria. Reproduced from the Better Health Channel(www.betterhealth.vic.gov.au) at no cost with permission of the Victorian Minister for Health.Unauthorised reproduction and other uses comprised in the copyright are prohibited withoutpermission.
Personal trainers - how to choose one Page 3 of 3
Advertising, selling and the Trade Practices Act
AustralianCompetition &Consumer Commission
—a small business overview
The Trade Practices Act
Honest advertising and selling practices benefit small businesses and consumers alike.
Enterprising small businesses should prosper on the merit of their products or services without
fearing competitors will gain an unfair advantage from dishonest representations.
Consumers also have a right to accurate and truthful information from businesses about their purchases.
The Trade Practices Act 1974 sets the ground rules for ethical trading. The Australian Competition and
Consumer Commission (ACCC) and private parties can both take legal action to seek remedies when
someone breaches the Act.
Don’t mislead or deceive
Businesses, their staff and their representatives must take care not to mislead or deceive consumers. It doesn’t matter whether it is deliberate or accidental— what matters is the impression that is left in the mind of the consumer.
The Act tells business that they must not do things that mislead or deceive consumers, or are likely to mislead or deceive consumers. It also specifically outlaws particular types of false or misleading representations, such as claims about a product’s value, price, quality, place of origin or impact on the environment.
The failure to mention any matter relevant to the sale can also give rise to misleading conduct. In some circumstances silence can be conduct that misleads, or is likely to mislead.
What are misleading advertising and selling practices?
Any kind of conduct or behaviour in business that could give a consumer the wrong impression may potentially breach the Trade Practices Act. Certain kinds of misrepresentations are specifically prohibited by the Act.
See the reverse for a summary of potential pitfalls and prohibited practices.
E-commerce
The internet is a new and exciting medium by which small business and consumers can do business. Retailers must remember that the same standards apply when doing business over the internet as they do in any other transaction. It is important for consumers to ensure they have basic information about the business they are dealing with, and for small business to use best practices to give consumers the confidence to trade with them.
Potential pitfalls
Disclaimers and fine print
Businesses should focus on the overall impression given to the consumer, especially when using techniques such as asterisks and associated fine print. Disclaimers should be specific, clear and highly visible. Information in the fine print should not contradict the main message. Be especially careful when using words such as ‘free’ or ‘unlimited’.
Product safety problems
Care must be taken to ensure that items have the level of safety people would expect in the circumstances. It is the responsibility of manufacturers, importers and retailers to ensure they do not sell goods that are unsafe or defective. If they do sell unsafe or defective goods, they may be liable for any harm caused.
Comparative advertising
Advertising that directly promotes the superiority of one business’ products over another’s may result in a real and deserved commercial advantage. However, comparative advertising that misleads or might mislead could result in legal action by consumers, competitors or the ACCC. Make sure that when comparing products, you compare like with like—that is, you should only compare your product to your competitor’s most directly comparable product.
Two price advertising
Consumers are attracted to products that compare discounted prices to previous or ‘usual’ prices. However, comparisons must be realistic. The basis for calculating the discount should be clear and the prices used for comparison must be genuine and relevant. The goods must have been available at the pre-sale price for a reasonable time and in reasonable quantities before using this technique.
Country of origin Phrases such as ‘Australian Made’ and ‘Product of Australia’ appeal to consumers who wish to support the local economy. However, these terms should not be used to mislead the public. The Act contains specific requirements for the use of these phrases.
Take care when using any logos or symbols relating to the country of origin—remember that the pictures and graphics you use can also mislead consumers.
Characteristics or affiliation
Make sure that any claims about your goods are accurate; for example, claims such as ‘free of genetically modified organisms’ or ‘environmentally friendly’ should be backed up. Do not claim that your product has any special sponsorship or affiliation that it does not have.
Refunds A business’ refund policy is the most visible sign of its commitment to fair customer relations. The Trade Practices Act sets down minimum entitlements for refunds, for example when the goods do not fit the particular purpose stated to the buyer.
Businesses must take care not to mislead consumers about their rights to a refund.
Prohibited practices
Not showing the full cash price
The total cash price, including GST, must be revealed to the consumer before buying.
You must show the full price, including any commissions, charges, or postage and handling. It is not enough just to show initial deposit and instalment payment amounts, which may result in confusion.
Bait advertising Retailers should not advertise goods or services at a specified price if they are aware, or should be aware that they are unable to supply reasonable quantities at that price for a reasonable period. Special offers made to draw customers to a store should be made only if customers have a fair chance of buying the advertised goods. Retailers should not use special offers with the intention of cross-selling standard-priced goods instead of the advertised special. If questioned, retailers should be able to establish that they made the offer with reasonable means of meeting the demand they expected for the advertised goods.
No intention to supply
Businesses should not accept payment if they know, or should know, that they cannot provide the kind of goods or services promised.
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Advertising, selling and the Trade Practices Act—a small business overview
Where can I get more information?
The ACCC receives many calls each day from businesses and consumers on advertising and selling issues— this leaflet describes only a few of the issues that are commonly raised. For any business or consumer inquiry contact the ACCC Infocentre on 1300 302 502.
The ACCC also has a wide range of publications available to assist small businesses understand their rights and obligations under the Trade Practices Act, including:
Small business and the Trade Practices Act (free)
Advertising and selling ($10)
Warranties and refunds (free)
Country of origin claims and the Trade Practices Act (free)
A small business guide to unconscionable conduct (free)
Publications can be ordered through the ACCC Infocentre or you can download electronic copies for free from the ACCC website: www.accc.gov.au.
ACCC contacts
If you have any queries or concerns about your business operations and the Act contact the ACCC.
Infocentre 1300 302 502
Website www.accc.gov.au
Small business helpline 1300 302 021
For other business information go to www.business.gov.au
Visit our website where you can browse and download documents relating to the ACCC’s work.
www.ptbusinesssuccess.com
29 Proven Marketing Strategies to Grow Your Personal Training Business
By Kellie Sanders
Marketing is all about persistence! Just because you believe that one strategy may not be working, think again before stopping it.
People need to see something multiple times before they take action, someone may see your flier, then pop to the shops and see your lead box and then visit the doctor and then they take action.
You always need to be in the forefront of your potential clients mind.
Long gone are the days where conventional methods of marketing worked, today you need to look at other mediums especially digital media to capture your audience.
With the strategies I am about to share, you have to remember that marketing is a 6‐week cycle so promote today, business increases 6 weeks later.
Many businesses violate the 6‐week cycle and promote for 4 weeks and because nothing happens they stop, 2 weeks later there is a sudden increase in business.
For 4 weeks business remains strong then drops off because 6 weeks earlier they stopped promoting.
Below you will find strategies that are currently being used successfully by our personal training clients and fitness businesses to generate a consistent flow of leads each and every week.
But before you get started on marketing you must make sure you are 100% clear on your niche, that being whom you want to train.
How do you do that?
Ask yourself the following questions:
‐ What fears & hopes do they have that your service can help with? ‐ What do they want back in their life that your service can provide? ‐ What in their life do they want to stop? ‐ What do they long for that your service can provide?
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‐ What pain & disappointments do they have that your service can end? ‐ What do they hate that your service can fix? ‐ What comforts & cover‐ups do they use in place of a real solution? ‐ And how can your product be the real solution they desire?
The more clear you are with the answers to these questions the easier your marketing will be because you know exactly whom you are targeting and you can speak their language because you know what they need.
So lets get started:
1. Articles in the Newspaper
Newspapers are always looking for articles to publish and what a great way to become an expert in personal training for your area than by writing stories about health and fitness in a regular column for the local paper. Many of my personal trainers answer the weekly health and fitness questions in their community paper which has resulted in a constant flow of leads into their business. Think of the credibility and reputation of your fitness business that you will build. The readers may not call straight away however when they are ready you are going to be at the forefront of their mind having established yourself as the go to person for personal training.
Another aspect of this is media releases. Remember media like to use stories that are current news today, so if you can tie in a story or testimonial about your business that relates to a current story the better chance you have of being featured. 2 of my clients train Biggest Loser contestants and the media love it because they tell a very compelling story.
Make contacting the editors a regular part of growing your business. I incorporated this as part of the marketing strategy for my outdoor fitness program, it then got to the point when a story about fitness or
health came up they would call me and ask if I could do a story for them. This was because I was always in constant contact with them. Every time we featured it always attracted a flood of leads.
2. Strategic Alliances
Building relationships with local businesses is one of the most effective ways to grow your client base and fast.
Align with a minimum of 5 different friendly local businesses that also want to grow; they will be more actively involved. Great places to do this are with hairdressers, beauty salons, restaurants, cafes and tanning salons.
www.ptbusinesssuccess.com
Think of where your target market hangs out and go there!
Get creative with the promotions you can both run, ideas include swapping vouchers to give to clients and sending out information to each others database about the business in your newsletter and combine this with an offer.
Start with the businesses that you or your friends/family/clients know as you already have great rapport with them.
Don’t walk into the business seeming desperate and plain out ask them, they are more likely to say no, if they do say yes chances are the will not be fully committed to helping you and your business.
Like anything it is all about relationships.
Initially go with your uniform on and start to develop rapport with the staff by chatting, it may take a few visits but remember people do business with people they like and trust.
3. Social Media
Twitter and Facebook are becoming very popular strategies and when used correctly they generate a consistent flow of leads.
You can create a great following by popping up health and fitness tips, any new research and even controversial stats.
Photos are a brilliant strategy to incorporate into Facebook as you can tag your clients and then all of their friends see that photo which then results in more people checking you out.
Most of my clients generate leads every week just through Facebook alone.
Create a Facebook fan page or an actual page.
For example I have my personal page for my close friends and family plus I also have a business page called Kellie PT Success.
I do prefer using the Kellie PT Success page as opposed to the fan page as it allows me to friend other people and also tag clients.
Being active on social media allows you to develop a following and be in regular contact.
Many of my trainers have found by using this social media they have reached out to many people in their target market, hence they gain more influence and become more recognized as a trusted fitness professional.
www.ptbusinesssuccess.com
4. Blogs
One of the best ways to get lots of information out into the community is by regularly providing them with great articles and information, once again you establish yourself as the local expert.
Blogging enables your readers to get to know you better which makes it more likely to call you when they are ready to start.
The biggest challenge is getting people to visit regularly, so provide thoughtful and lively content.
Write in a casual tone that shows your personality and focus communication on different angles relevant to your target market.
If you don’t already have a website get one and make sure you have a section for your blogs and commit to writing an article every couple of days.
People trust blogs more than they trust websites, because blogging is a conversation.
When you are passionate about health and fitness and can produce content, you will build an audience that will keep people coming back and eventually you can make money from that.
Plus it is extremely good for SEO (search engine optimization) as it allows you to continually update your site, especially when you are using your key words.
5. Wearing a Uniform
At every opportunity you need to be in your uniform, think of where you buy your petrol, food and coffee?
Every time you need petrol make a conscious effort to go to that same place.
They will start to recognize your uniform and you can develop a great relationship with them.
Start by asking them simple questions like ‘How was their day?’
I have gained clients by regularly going to the same petrol station in my uniform, people get to know your face and will start asking ‘So tell me, what do you do’.
You then start the process from there. Even shopping for weekly groceries I have been stopped and asked about my business.
www.ptbusinesssuccess.com
6. Visit Businesses and Deliver Fruit
One of the toughest things to do is walk into to a business and try to start a conversation, let alone build a great relationship.
An effective way of doing this is to identify 5 businesses and purchase a small basket and some seasonal fruit.
When you walk into the business a great way to introduce yourself is to say that you are dropping this fruit off to promote health and fitness in the local community and you are conducting free health and fitness checks, who would be the best person to speak to about that?
Get their name and say great I will pop back next week and see (their name) and see how we can help you, what would be the best time to do that?
Leave a tag on the basket with your name a brief note and contact details.
For the next few days you have created a buzz in the office, as they will all want to know where the fruit has come from.
Pop back a few days later to collect the basket and catch up with the office crew.
If you don’t manage to get an appointment grab their email addresses and tell them you will send out your newsletter.
One of my clients dropped a fruit box into a local newspaper, the editor was so impressed by their unique marketing strategy that they then approved the personal training studio for a free article in the paper promoting their business.
That week they had their best week ever with 27 new clients starting.
7. Newsletters
Providing your database with a monthly newsletter is a great way to keep your crew up to date with what is happening in your fitness business.
The clients and potential clients on your database look forward to receiving them every month as they provide valuable information about health and fitness.
Great content includes stories on the latest media hype on health and fitness, exercise, business, joke, recipe, client of the month PLUS your latest offer.
An easy way to do this is to go to aweber which will personally automate any email you want to send out, all you have to do is write the content and for about $20/month aweber will track all the email marketing numbers for you.
Ensure that every person you come into contact with is then put in your database; the size of your database has a direct correlation to how successful you will be.
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8. Build Medical Profile Alliances
General Practitioners, Chiropractors, Physiotherapists, Massage Therapists, Psychologists are fantastic people to align with, think of how many people they see during a day – LOTS!
Also think how many of our clients ask us whom we would recommend.
In the case of a GP, instead of prescribing drugs discuss with them the possibility of them prescribing their clients exercise, which is then referred onto you.
Have some prescription fitness pads done up for the doctor so it’s really easy for them to refer their patients to you.
When you do receive a referral, remember to send a follow up letter to the doctor to say thank you! It’s also a great idea to send quarterly updates to the medical professional to keep them in the loop.
9. Fliers
You don’t have to spend loads of dollars to make them effective. A simple DL or postcard size flier cost about $30 to get designed professionally.
What determines whether they will be successful is what you have on it!
Remember the marketing fundamentals such as a headline to grab their attention, benefits, benefits, benefits, not features, people do not care if you have new equipment or air conditioning, what is the benefit for the client by training with you and what is your solution to help them?
And the offer, what is going to make them want to take action today and not leave the flier on the fridge to call you later, you want them to call now! Refer back to the target market questions at the start.
Test and measure the numbers.
Most fliers will generate about a 1‐5% response rate, yet when done the right way we have had results around 10‐20% which is brilliant!
10. Referrals
The most underused strategies.
If your clients love you and are achieving great results then why wouldn’t they want to refer their loved ones onto you?
Of course they would, most personal trainers just don’t ask!
Create a system for asking.
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You can ask when a client gets started, you can run competitions and give away prizes for every person that they refer and bring a friend to train for free days!
There is so much opportunity to really multiply your business by asking. This method is also the easiest to convert as the friend/family member does most of the hard work for you.
If 20 of your clients referred just 1 person then you can pretty much double your business extremely quickly.
11. Direct Outreach
This is a brilliant strategy I got off Michael Port from the best selling book, “Book Yourself Solid”. I was lucky enough to spend 2 days training with him 1 on 1!
Have a think about the kinds of people, who if you got in contact with them, are well connected enough that if they knew what you did and loved it could drastically change your business. Examples such as owners/directors of big businesses, celebrities, community leaders and sporting clubs are a great place to start.
Make a list of 20 people and systematically get their details and contact them. When you contact them you need to remember what is in it for them.
That is the only thing that this person is thinking when they read your letter.
In the letter you need to write something complimentary about them that is genuine, be brief and express interest in working with them with a genuine interest in helping out.
Notice the word genuine!
What you want to do is have that person experience what you do and love it so much that without prompting they want to tell everyone about you.
You can offer great value in training them for free or training for very little. Remember you are not doing this to make money, just to make contacts and spread the word so make sure you create massive value.
If you train a group of 20 employees for $5 each a week, there are 20 qualified people who could be personal training clients. Those 20 people know another 20 people who would enjoy what you do. That’s a lot of people and if you cant get 10 clients out of that you need to look at what you are doing.
12. Keep in Touch Cards
Very rarely do you receive anything else in the mail besides bills.
You can make yourself very memorable by consistently sending out keep in touch cards.
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What that means is you send out cards to 10 people whom for that week you have met or to someone you just want to say thank you to.
This is a great way to keep in touch with people and let them know just how special they are to you. You will be surprised at the response and the difference you make to people lives with this very simple to do strategy.
13. Speaking at Community Events
There are many groups in your area that meet on a regular basis; clubs like Rotary and Lions are always in need of a good speaker.
In these clubs there may not be many of your target market, that’s ok, they are the kind of people who have a lot of contacts and many of those will be in your target market.
Come up with a good headline and then call the place where you wish to speak at, tell them you are a speaker on healthy living and ask when is the next available time for you to come in and chat to the group.
Then you put the chat together, make it interesting and take home tips for everyone to use.
Have a lucky door prize and get everyone’s contact details when they enter the draw and let them know you will be sending out your healthy living tips.
Be prepared at the end to get bombarded with questions.
Wear your uniform, however do not try and sell them, it is all about giving great information.
14. A Frame
One of the forgotten effective forms of marketing!
Whenever you are training someone in the park or in your studio pop your A Frame out the front so that people know who you are.
Attach a plastic flier holder to the a frame so that people walking past can pick up a flier, make sure you put your website on there, remember 75% people check out your site first before making an enquiry.
A fitness centre that I work with is located on a main road, when they pop their signage out the front they nearly double their enquiries for the month.
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15. Seminars
A very effective way to reach out to lots of people at once and share some great information about health and fitness!
Promote these free events through current clients, fliers, the local businesses and your database.
Hold an event with an eye‐catching topic that would interest people and show them the emotional benefits of why they should attend.
These events (if promoted effectively) generally will attract a minimum of 10 people. This is a brilliant opportunity to establish you as the expert in the area of health and fitness. One of our clients used to conducts these on a monthly basis and after only 2 months of doing this he is now booked solid.
16. E Books
These have really taken off in the last couple of years. It is an awesome opportunity to provide information on your topic of expertise. It gives you the ability to build up your credibility and keeps the clients wanting more information from you.
They don’t have to be a long novel, to get started 5 pages will suffice. If you have answered the questions at the start of this book then determining what your topic is will make a big difference.
The success will depend upon the value you offer in the free report, do this by providing an immediate solution to one of their problems.
17. Community Strategy
Community groups are always looking for money so they can keep their doors open; this strategy also works well for sports people wanting sponsorship.
Design and print a gift voucher for the particular organisation and provide lots of benefits and value for the recipient.
The organisation then sells these gift vouchers for however much they would like, generally people sell them for $19. They then keep the money they have raised.
The organisation then passes the purchasers contact details onto you so you can follow up and book them in to use the voucher.
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18. Database Marketing
Emails are an easy way to keep in contact with the people that you already have a relationship with or who have opted in to your website.
The key to this type of marketing is consistency. You must systemize your contact so that it is regular.
Give the person a reason to read your email, remember without purpose it will be classed as spam.
Fill your email with an easy to read and follow article that will be of interest to your database.
Rotate your emails, so week one it may be a tip, week two is your newsletter, week three is a case study and week four is an offer.
Remember don’t try and sell in every email that you send, it will piss people off. It is all about giving information and when the person is ready they will contact you, especially if you have been providing a ton of value to them.
Main point to remember is consistency!
19. Lead Boxes
Lead boxes can be a very effective way to continually generate leads. You must first find a shop that your target market will be frequenting.
Places where there is some waiting involved is ideal.
Your lead box must be in a prominent position on the front counter or in the waiting area.
If it is not you will simply not get any leads.
Give incentives to the staff for promoting your lead box, otherwise it will not generate any leads or worse be thrown out.
Some examples of incentives include for every 10 leads that they provide each week you will give them free sessions in return.
For a 30min investment of your time you may have a source for new clients that will keep you booked solid.
However remember that if you are not getting any leads from the location MOVE it, as it is not doing you any good.
You may get a lead box generating 3 leads and those 3 leads convert, as opposed to one that is generating 25 leads yet none are converting – so it is very
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important that you track the numbers and know exactly how each one is performing.
Aim to have at least 5 boxes out at any one time.
20. Health Check Ups
Health Check Ups are a different way for people to get to know you. Trust is everything in sales and without it you will not succeed.
Doing a 15min health check is a brilliant way for you to spend some one on one time with your potential client and get to know them.
Find out their pains and what they want to achieve.
In the health check you can do their blood pressure and have a general chat about their daily exercise.
You can do these at chemists or any other health and fitness related business.
Again it comes back to building relationships with the local business to let you conduct these.
Give them your newsletter and remember to follow up the next day.
Even if they did not book in for a PT, always follow up to see how they found the newsletter and if they had any questions, then pop them on your database and keep in contact with them.
21. Networking Groups
There are many groups out there that have multitudes of people also looking to grow their business.
Check out the Chamber Of Commerce or even Google networking for your local area. Most groups invite you to the first one complimentary so you can see if that group is for you.
Be prepared, take your business cards however the aim of this strategy is not to see how many cards you give out but how many names and numbers you get to follow up.
If you like to stand out and be memorable, send a thank you card to each person that you spoke to saying how great it was to meet them and that you look forward to seeing them again soon.
Again keep them in your database and always maintain contact.
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22. Gift Cards
If someone gives you a $100 gift card, you think twice about throwing it away, which is why this strategy is so effective.
Gift cards have massive perceived value and are totally different to what other fitness facilities are doing.
They look exactly like the plastic gift vouchers you receive from Target or Myer except they are tailored to your fitness business and are used exactly like a store gift voucher.
You can use them in so many different situations.
For example, give them to the local businesses you align with so they can give them out to their valued clients, send them out to past and expired clients or give them to charities for donations.
23. Website
It is absolutely crucial that you have a website. 75% of people will now check your website before they make an enquiry with you.
A website does not have to cost you thousands of $$$, most of my personal trainers get their sites done for around $250.
This is just another way of you building your credibility and establishing yourself as the expert, especially if you have a blog like I mentioned before.
Ensure you have an opt in box on the top right hand side and that it is easy and clear to navigate.
Know what your key words are so you can optimise your site to get higher rankings in Google (there is another e‐book on how to make that happen). Commit to building your list and always be updating it.
24. Expo’s /Stalls
These days there are many wedding, health expo’s and fetes.
This is a great opportunity for you to promote your business at a minimal cost.
If you were to do this in a shopping centre for a day it would cost a minimum of $300.
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Contact your local schools and also Google it in your local area to see what is coming up.
Make your stand exciting so people want to come over.
Give away balloons, have a banner that says “Come and see me to get your FREE $100 gift voucher” and have a special offer jam packed full of value for the people that register with you on the day.
25. Supermarket Safari’s
People are so confused these days about nutrition, what to eat, when to eat, how much to eat, what is healthy and the list goes on!
Chat to the local supermarket before you go and establish a relationship with them, so you can promote each other.
Organise an excursion to the supermarket so you can show your clients what eating healthy means plus how to read food labels, encourage your clients to bring a friend as you are promoting a healthy lifestyle.
26. Start Conversations
I have lost count the number of clients I have picked up just by chatting to people I meet in public.
A prime example is one of my clients was at the park last week with her two children, she sat next to another mum and started a general chit chat, without intention they started talking about what she did for work, mentioned that she was a personal trainer and the lady said she had been meaning to get back into health and fitness as she wanted to lose some weight.
Exchanged phone numbers and now she is a regular paying client.
Be that person who starts conversations.
Not just to pick up clients but because you are interested in people.
Say hi and start a conversation with the lady at Woolworths, you will be remembered and more than likely make their day go a little quicker, imagine how many grumpy customers they would get.
In saying that though you just never know where that will lead.
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27. Voucher Sites
This strategy alone can generate more leads than you will know what to do with. The challenge is actually trying to get a hold of someone from the company to contact you.
However if you pop the offer in the enquiry email to them and if they like what they see they will get in contact with you that way.
Be prepared; if you do get featured make sure you create an offer that you will be able to handle.
A fitness business I came across sold 735 vouchers in 24 hours. 20‐25% of these people will not redeem, but if you were a sole trainer offering 1 on 1 personal training, trying to fit all of those people in would be impossible.
Look at incorporating group training and jam pack heaps of value into the offer.
Other companies include: Spreets, Jump On It and Living Social Deals.
28. Business Cards
One of my inspirations since I started in the fitness industry over a decade ago is Joe Girard.
For those of you that don’t know Joe, he is in the Guinness Book of Records for selling the most cars. He sold 13,001 cards in just 12 years. This number does not include fleet or wholesale cars and he was never in management.
He averaged 6 new retail cars a day
The most sales in one day was 18
Most sales in one month was 174
THIS RECORD STILL HAS NOT BEEN BROKEN.
This man is a great example of getting back to basics and how to make your business boom. He does not use any way out Internet marketing secret.
I have adapted many of his strategies to help my own studio plus all my crew around Australia.
I believe I can learn a hell of a lot from this guy and implement these things into my fitness businesses, which we have done with amazing success!
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This is a strategy that personal trainers don’t use.
For Joe he hands out a whopping 16,000 business cards a month.
Compare that to the average personal training business and I am guessing the number would be about a measly 5‐10 month?
29. Text Marketing
Text marketing is brilliant because it is cheap and has a higher open rate compared to email marketing, plus you can generate an immediate response.
When a new client starts in your fitness business it is very important to share with them that your business is based on referrals.
One of the best tools is to give your new clients tools that they can share with their friends and family.
When a new client gets started, explain to them your text campaign and immediately text them a 1 week pass to their mobile phone.
Make sure you write the message as if they are writing it to their friends and family.
When they receive the pass tell them to forward onto friends, family and co workers.
This works extremely well because it is coming from a trusted friend, so the response should be much higher.
The text should say something like: ‘I just got started at the amazing (insert your business name) and the owner is offering a 1 week pass to the first 5 of my friends to respond. Text me now!
You can even offer $50 or even $100 to your clients for each person they bring you.
The great thing about this strategy is that it doesn’t just work on new clients, you can send it out to all your current members.
To Finish: As personal trainers we are obsessed with working smarter. We are constantly bombarded with products and advice by so called gurus who tell us to work smarter. Yet what separates the winners from the losers is not always knowledge and being smart but the effort of putting that knowledge into practice.
I guarantee that if you implement at least 5 of these strategies correctly, you will have a flow of constant leads coming in weekly and increase your turnover dramatically.
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Write more blogs. Read more books. Talk to more people.
Test your ads more thoroughly.
The list is endless and there is no lack of things you can do to become more successful.
With most of these strategies it requires you to get out and chat to people and businesses, so stop hiding behind the computer and staying at home, get out there. When most personal trainers get started they believe that the clients will come to them, NO IT DOES NOT WORK LIKE THAT.
You have to get off your butt and take action for results to happen AND it doesn’t happen overnight. Estimate that you will probably not make too much money in the first 3 months, however with persistence comes rewards!
And those personal trainers that are dedicated, persistent, committed and disciplined to achieving their goals will reap the rewards many times over and live the lifestyle they have always dreamed.
Today is the day where you stop making excuses. Start spending time with successful people, not only successful personal trainers,
but successful business people.
Start taking action on what YOU WANT, and don't let anyone stop you.
Start taking responsibility for your life, and wake up to what your results have been. If you've not had the results you've wanted in your fitness business, start doing something different.
Take action and change.
Email me at [email protected] if you have any further questions and also to let me know how you go.
Cheers,
Kellie Sanders