Fit for Business

ABC Fitness generated $70,000 during its inaugural year at its physical location and $140,000 in revenues in 2010. It closed out 2011 with a 14% increase, bringing in $160,000. The Wrights project the business will reach $210,000 in revenues this year as they aim to expand their membership base from 125 to 200.

To grow the business, the Wrights will continue with their aggressive marketing efforts, hire two 100% commission sales reps, and form strategic partnerships by contracting services to government agencies, churches, and local businesses. They also intend to focus more on providing organization-wide discounts on annual memberships and/or fitness boot camps. Their target “organizational” audience is police departments, fire departments, and local businesses.

Tammy, who holds a Master of Science degree in information resource management from the University of Maryland, is responsible for the overall strategic planning and direction of the business.  Her husband, who became a certified personal trainer through the American Sports and Fitness Association in 2009, is responsible for the day-to-day operations. He also manages recruitment; the company currently works with four independent contractors due to the costs associated with hiring full-time employees.

The Wrights have three major competitors in the surrounding area who offer fitness equipment, personal training, nutrition, and one of them also has on-site child care. David Washington, Ph.D., owner of Washington & Co., a business consultancy, says the couple needs to boost their brand in order to continue to grow the business. One way to do this, he says, is to white label products (offering other manufacturers’ goods affixed with your company’s private label or logo) to generate additional revenue.

The Wrights currently private label sports water bottles, key chains, and other items but Washington recommends that the couple expand to include nutrition bars and nutrition plans, which other manufacturers have already developed. He also advises the couple to incentivize customers to boost word of mouth. For example, Washington says, customers can receive a small discount for bringing a friend or telling a friend, who would also receive a small discount for actually showing up at the gym.

The Wrights are clear that when it comes to marketing and promoting ABC Fitness, people and community involvement will be key to their long-term success.

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