Warum dein Fitness-Business nicht skaliert

0:00by so, health and wellness, so basically physical therapy, personal training, 35 to 45-year-old athletes >> Okay. are is the avatar. Um we do about a little over 3 million. The biggest thing that's stopping me have a huge shortage in practitioners. Um to give context, there's about 16,000 open positions for

0:20>> constrained. Yes. Mhm. So, um I need more producers to produce. Mhm. Um so, I decided to kind of pivot and say, well, if I can't find the people, I'm going to increase price. Well, I'm glad you did that as as as the thing you decided to do. So, that's fine. >> [laughter] >> Like, I started another business on e-commerce. Yeah. Yeah, so to start teaching people to uh yeah, yeah.

0:44Uh so, that went well to the tune of we didn't lose revenue. Okay. Um but I'm at that point where now do I go all in on continuing to increase price and move more into almost like a concierge membership model, or do I go all in and just try to crush and find the people and do what nobody else is possibly doing? Do you have any issues on getting customers? No, we have More demand than

1:11>> sold out. We could book people. >> So, um Have you heard my story about uh buddy mine who's in the cleaning business? I know. >> I'll tell I'll tell you. So, um former gym owner uh crushed it with Jim Launch and then decided he started making enough money that he started investing in real estate as all entrepreneurs do. And then after he was you know, crushing in real estate, he was like, you know, I should probably start a cleaning company cuz he started doing Airbnbs out of his real estate. He's like, this is costing me a ton of money. I should vertically integrate. And so, he started the cleaning company uh to clean, you know, his Airbnbs. He's like, well, now that I have the cleaning company, I might as well start selling other customers. I don't want to leave money on the table, right? Uh And so, you can see how this spindels, right? The moral of the story though is that I call I called him up um and he was telling me he's like, dude, it's crazy. He's like, selling cleaning customers is like CACs like 25 bucks.

1:58It's insane. Every like it's so easy to get customers. And I was like, oh, you should scale this to the moon. He's like, yeah, you know, it's kind of hard to get English-speaking maids who don't take stuff from people and do a good job and show up on time and are willing to work for $15 an hour. And I was like, okay. So, the nice thing that you have is you have a supply constrained business. So, he was used to fitness, which is typically demand constrained. So, it's just it's it's hard to get people to want to show up to the gym, right? Uh not hard to get people to say they want somebody else to clean their house.

2:29Um and so, basically the reframe that I gave him is what I'll give you, which is you're not actually in the physical therapy business. You're in the recruiting physical therapists business. The whole paradigm that I would have around this is what is the career path look like for the physical therapist so that I can make this really enticing. On top of that, I have to still think through the same You still have the same core four, right? You've got You've got warm outreach, you've got cold outreach, you've got paid ads, and then you've got um I should know these. I wrote the book.

3:00Okay, organic content, right? So, these are the these are the four things that you can do, right? And then you've got headhunters, right? Which is basically recruiters. Um and you have uh word of mouth from your existing Oops. Word of mouth from your existing staff. And so, these are the ways that you can get um physical therapists. And so, we have to approach this the same way we approach getting customers. They are just now the customer. And so, um maybe running Indeed ads is probably not the way that's that you're going to get them. But I'll bet you that outreach will work exceptionally well um to get therapists. And I would probably bet that if you had a really good referral incentive, um over time that would compound. Now, small, not as much.

3:41You'll probably need to do this to start. As you get bigger though, there's going to be enough of a base where a few percentage every month of referrals is material. And so, let me just put this in math for you so that you can so this will motivate you to do it. How much do you make in gross profit off of a physical therapist per year on average? About 350. Okay. So, if I told you that I could add $350,000 in gross profit per year to your business, how much would you be willing to pay for that in the first year?

4:12Quite a lot. Right. And so, giving someone $500 for a referral, not that motivating. If you said I'll give you 20 grand for a referral, I'll bet you'll get them to move. Most businesses are either supply constrained or demand constrained. Now, if you have a business that's both, then it's like you don't have customers, you don't have employees. Like that's a tough place to be. Most of the time, it's one or the other. And what's interesting is that entrepreneurs will often try and solve basically like not solve the real problem. And this was kind of exactly what she was presenting with. She was like, should I do this other thing, or should I like uh should I should I change my model altogether? But the crazy thing is just like her model was doing great. She was making good margins. She had She's doing good revenue out of two locations. It's like, why are we going to break the model?

4:56Like the constraint of the business is that you just don't know how to recruit. So, let's just solve that problem. Because her other path of like just raising prices, which to be fair, I'm all in favor of. At some point, it's like you can't raise the prices anymore. Like you're becoming like a luxury business, and it's just like you're changing all the dynamics of the business. But her business worked already. And so, for me, the lowest risk thing to do is not change the business model, but just figure out the problem of the business and solve it. And for her, biggest problem was, I can't get people. But I don't think she had quantified how much she should be willing to invest in getting more talent. And I think this is wildly underrated. It's like, think about it from a return on on profit. I don't only did it on gross profit, right? It's $350,000 per employee. So, I'm like, why would you not pay I mean like just being real, why would you not pay $50,000 or $100,000? Right? If you know that if I People are happy to put, you know, $100,000 in the stock market and get 10% back and make 10,000. But in their businesses, they're hesitant to give a commission of of $10,000 for a $300,000 thing, right? And so, if you're like, well, what if it doesn't work out?

5:57Then push it out where there's a contingency that you're happy to do it. And if you want, keep raising the price until you get people to refer. Like with enough incentive, you can move the world. So, if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. It's uh my team spends two days with you to identify the thing that's holding your business back. And so, if that sounds interesting, click, book a call, and if you're a fit, we'd love to potentially see you out here in Vegas.