Your gym is doing wildly successful, but should you consider a second location? Read These Tips before making the big decision.
1.) Measure the Strength & Success of Your Current Gym
Is your current gym generating positive cash flow for you? You need to look at the keys to your success and determine if this is possible in a second location. For example, is the location a reason why you generate such traffic into your gym. Could this be duplicated in another location? Would your proposed second location offer the same benefits of your current gym? These are all things to consider before adding a second gym. Is the competition in your proposed location strong, or is there any? Who would manage your new location, and who would you hire to work in your new gym?
2.) Can Your Existing Gym Be Duplicated? (And Be Run Without You)
If your presence is so important for you to run your gym, a second location might not be the best for you. For example, if your customers know who you are personally, and insist on doing business with you, then your business might not be a great candidate. However, if this isn’t the case then you could have a great chance in opening a new location. You must ensure you hire and train a good manager to keep the same order in your second location as your first.
3.) Do Your Research for New Locations
You must research your proposed location in order to know what you’re getting into. In this step, you need to identify the potential target market and the potential strength of demand for gyms. If the demand doesn’t exist, you must then evaluate how long it would take to demand an interest in your potential second location. You must also make sure that your desired advertising medium is affordable for you as well. It can often be an expensive process getting the word out to enough people to generate a significant amount of memberships. You must also research the strength and demand of your industry in the area (CrossFit, Yoga, Martial Arts, etc.). If there is any way to test proposed sales and statistics, then make sure you do that as well.
4.) Consider Any Alternatives Before Your Big Decision
Before adding a proposed second location, consider the available alternatives. Could you add more space to your existing location? Should you simply hire more staff? Add more classes? These can all be viable alternatives before making the commitment to a second location. However, every gym is different, and you could be missing out by not opening a second location! It all depends on how your gym operates and its success.
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