Despite the shockingly low failure rate for CrossFit affiliates, owning a box gym is not as easy as it seems. As a CrossFit enthusiast, you’re no stranger to hard work. But unlike training and working out, the price of being a successful business owner can be steep. The risks may initially outpace the rewards, especially in the face of mistakes. They can either create issues that lead to insurmountable challenges and business failure or become valuable learning opportunities. Despite the challenges, many successful business owners and CrossFit affiliates agree that the most efficient way to achieve success is to avoid as many foreseeable mistakes as possible. Check out this list of five mistakes CrossFit gym owners tend to make and strategies to overcome them.
Mistakes CrossFit Gym Owners Make
1. Ignoring the Numbers
It’s crunch time. Businesses need financial resources to support overhead costs, equipment, operational expenses, CrossFit insurance, payroll, etc. It may seem like a good idea to borrow more than necessary in anticipation of current and future expenses. But taking on too much debt or leveraging too many resources upfront can lead to short- and long-term collateral damage. Not managing resources efficiently can add financial and legal liabilities that overburden your CrossFit business and cut into its current and future profits.
Examine your current resources and those that you may secure from other parties. Establish a budget and keep realistic expectations about those resources. Start off small. You can always scale your budget as your business grows. Don’t ignore the numbers. Tally them up and make adjustments to avoid overextending yourself personally or taking on additional resources in anticipation of future business needs too soon.
When business owners cannot fulfill their financial obligations to lenders, the ripple effects of delinquency can eventually lead to financial insolvency and business failure. Err on the side of caution and only secure enough capital during the startup stages to keep the business afloat as you become more familiar and adept at being a successful CrossFit affiliate.
2. Overlooking Networking Opportunities
The CrossFit community is huge. Do not become so caught up in generating profits or making assumptions that you wind up missing out on hidden opportunities. Network with other affiliates in the community to learn common challenges and tactics they used to overcome them. Use the community to learn what potential and current members want and how to transform your box gym to better serve their needs. Don’t just talk about the business within th1e group. Expand your wings and meet new people.
You never know who’s a potential CrossFit member or affiliate. Collaborate with others who are interested in and passionate about CrossFit. Networking is a valuable tool that many unsuccessful CrossFit affiliates frequently overlook. It’s one of the most practical and cost-effective ways to generate interest, boost membership, make valuable partnerships, discover personal and business opportunities, and make lifelong friends.
3. Undervaluing the Importance of Patience
Making decision-after-decision without taking time to pause and think things through can mean the difference between development opportunities and problems. There is nothing wrong with wanting your CrossFit business to become profitable right away. But reckless business decisions made in haste can impede your ability to spot potential and existing problems and develop effective solutions and milestones that support your business goals. Set boundaries and don’t rush! A key consideration to keep in mind about CrossFit businesses is they all grow in time. Just remain patient and use the time you have wisely.
4. Not Earning CrossFit Trainer and Employee Development Loyalty
In the CrossFit industry, qualifications are crucial. Don’t hire friends and relatives. It’s never a good idea to mix personal relationships with business. It doesn’t matter how much well that strategy might have worked for you in the past, it’s one of the biggest mistakes any successful business owner can make. Be selective about employees. Hire trainers and employees who have traits, skills, and credentials that not only mitigate the risks of having unqualified talent but increase your CrossFit gym’s capacity to attract and inspire members and staff loyalty.
Invest in your workers. Make sure they secure the proper CrossFit credentials and provide opportunities for growth and development. Provide benefits to show you’re vested in their careers and lives, such as affordable, CrossFit memberships, gear, comprehensive health care, flexible PTO, and workers’ compensation. The right mix of employee incentives can instill employee loyalty that also inspires customer comfort and loyalty.
5. Planning for Today Instead of the Future
Not thinking ahead, anticipating potential challenges, or having a narrow-sighted vision of your CrossFit affiliate future limits your overall capacity for success. There are so many aspects of managing a gym you must keep sight of. It’s not possible to predict the future or every obstacle or opportunity that may come your way. But the right plans can prepare you to better meet the daily and long-term demands of owning and operating a successful CrossFit gym. Don’t just focus on that three to five-year plan. Think further into the future. If your business plans and goals don’t include a solid succession or exit plan, you’re leaving your legacy more vulnerable than it needs to be.
Successful business owners understand the value of doing everything possible to mitigate risks and protect their assets. That includes taking the time to learn from their mistakes, network more efficiently, and attract qualified CrossFit trainers, loyalists, and staff to build their gyms’ immediate, short- and long-term value.
Selecting the right insurance coverage is easy with CrossFit RRG. Contact us for a quote on custom coverage options and rates. We’ll work with you to build a custom insurance policy that meets the unique needs of your CrossFit gym.