Friday, November 11, 2016

Step 3 Of Your Business Plan: Which Model Are You Going To Model?

This blog entry follows step two from a few days ago.

Do you build a cable company/cell phone company focused on customers, or build the chain-store model, like Walmart or McDonalds? Do you do indoor Boot Camps, outdoor Boot Camps, or both?
One big store, or many little stores?

You have a choice that you will want to start thinking about now, even if you don’t know if you truly want it yet. You have two basic ways you can go.

Think about your cable company or your cell phone bill for a second. Every month, they acquire more and more customers who continue to pay them a monthly fee. These customers like the service, but most of them probably don’t want to sell the service. This is like your clients. They like working out, but most of them probably don’t want to become trainers, right? The beauty of these types of business models is that they keep acquiring customers that pay the fees, kind of like you getting more and more clients leads to collecting more monthly fees. This model is straightforward. If the thought of ‘building your team’ or hiring employees freaks you out, then you might want to stick with this for a while (or forever).

Even with Boot Camps of 50 people, the most I needed was one assistant to help with traffic control and keep the customer experience of the workouts at a high level. You can pay an assistant just a little, especially if they are a trainer trying to break into the industry or a client from your own Boot Camp client pool (your tribe) who wants to become your apprentice (that’s what I did). It isn’t that you don’t want to pay them a lot, but it is good to make them earn it the way you did. The discussion of what to pay them is a whole different topic to be covered later.

So, basically, you just keep growing your camp more and more and you become like the super trainer of your area and you become a celebrity. The advantage of this is that you can then be ‘known’, which sometimes comes with other fringe benefits like people buying you drinks at the local brew pub, and getting invited to special dinners, etc., and perhaps someday you can brand your name and have your own fitness DVDs and the like.

The other business model is to create a chain-store system. This is where you acquire a few customers and then look to set up other people who want to do the same. Everyone has heard of Sam Walton and Walmart, but most people don’t know that he started by taking over a failing five and dime store and completely turned it around. Once he made it successful, he essentially started other stores where he taught others how to duplicate what he did. I’m sure you can figure his business model worked too.

Franchises are similar, the only difference is that they don’t maintain ‘ownership’ of the stores, so, as in the case of McDonald’s, once they build the system, they find other entrepreneurs who want to replicate their system. In our business, examples of franchise systems would be Adventure Boot Camp and Fit Body Boot Camp. There are countless others that are springing up. You might join one, or you could create your own too. After going through all the knowledge base available here, you can decide how much work you want to do!

Now imagine if you learned how to get to 31 customers of your own and were making $4,000 per month. Then you hired a trainer to cover you while you built another one just like it and got to 62 customers and $8,000 per month. What if you did it again and got to $12,000 per month? Of course, you have to pay the trainers… But I think you are starting to see the picture, aren’t you?

So here’s the question, and it really depends on how big your vision is… Do you want to do the customer acquisition, regular monthly customer model, or do you want to do the chain-store model and find other trainers to create their own Boot Camps to expand your company? Notice that the chain-store model requires you to do the cell phone/cable company customer acquisition model anyway, since you need to prove something before you can teach it. You need to show that you can get customers so that you can go to someone else and tell them, “Here’s what I did, do you want to do it too?”

And finally, if you want to have multiple locations in the chain store model, you’ll need to decide whether it will be your company exclusively, or if you want to create a brand that is sold to other entrepreneurs like McDonalds.

Now, before you get flustered and before I lose you, let me make this really simple again. If you plan on making less than six-figures, and you are OK with that, then go ahead and keep it simple and just go out and build one Boot Camp. It is simpler and less exhausting. If, however, you have a strong desire to make way more money, or if you are a very competitive and influential person by nature, you might as well plan on 2 to 3 locations so that you can stretch yourself and see what you are capable of. It really can be that simple … at least as far as your planning process goes.

Next time, I will discuss the advantages of doing your boot camps indoor vs. outdoor.

Check out a proven fitness boot camp business model for you to use right here.

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