Embed Size (px)
DESCRIPTION
Learn about this life transcending opportunity to own a business that can make an amazing impact on your community while giving you something to do that you'll be passionate about.
Citation preview
YOUR Business Solution For The Modern Economy I’ve been exactly where you are today, searching for the right business model to pair with today’s roller coaster economy. As we all know, this can be extremely difficult due to the natural reservations of an untested model and of course, our uncertain future of economic circumstances. I’ve seen countless “industry experts” lead folks down a path of failure with strategies that have yet to be proven, let alone tracked for that matter. They consult business owners to take a specific direction without ever testing that direction’s result for themself. It’s astonishing, really, that people will take these “industry experts” serious enough to pay them outlandish amounts of money for unproven advice. I’ve raised capital and started several innovative businesses, only to learn many of my most valuable entrepreneurial lessons the hard [and sometimes very expensive] way. For me, though, it all came together when I became partners with an actual “industry expert” who had created a series of personal business habits for testing new strategies, proving them through his diligent tracking routines, and then creating a repeatable system for other people to execute each successfully tested strategy. Finally, a guy who was advising people to go to a place that he had already been! His name is Forrest Walden, and he’s the Founder of Iron Tribe Fitness. It’s an incredible story that has the “American Dream” written all over it. Much like some of our nation’s most prosperous business tales, Walden essentially started the concept in his home garage – the site of his initial trial and error testing grounds.
Walden and his friends, at the site of his testing grounds – his home garage.
From The Garage To The Marketplace Some of America’s biggest impacts started in the good ole’ garage!
Eventually, the buzz he had created in his garage, compelled him enough to sell his current business, which was a prosperous territory of personal training franchises, to jump in head first to open up what would become the first-‐ever Iron Tribe Fitness. It’s important to take note of the fact that I am NOT talking about a guy that most people would expect to take such life-‐altering risk, especially not in the middle of one of the worst recessions in our economic history. Forrest is a family man who makes all of his decisions in the best interest of his wife, Mendy, and their four children. But during the recession in 2008 and 2009, he was so moved by what he was watching each day in their home garage, that he was indeed willing to risk everything to start over fresh. And that’s just what he did in February 2010, when the first ever Iron Tribe Fitness gym opened its orange doors in a free standing building located at the center of our Homewood community in metro Birmingham, Alabama. Please note that Forrest didn’t just start establishing those personal business habits I mentioned earlier, when he founded this first Iron Tribe Fitness gym back in January 2010. He had already mastered them well before this. These habits were initially honed during his early 20’s, when he garnered experience in franchising on both sides of the proverbial “franchising fence.” First as a franchisee, owning six 1-‐on-‐1 personal training gyms in Birmingham, and then as a master franchisee working hand-‐in-‐hand with their franchisor support team to develop and oversee 55 franchisees in three different states. This is why I consider him an “industry expert”, and why you should too. He’s gathered valuable experience on both sides of the franchising table for almost an entire decade, before Iron Tribe Fitness was ever even conceived. Oh yeah, and the fact that he grew up as the step-‐son of a guy who has now been the CEO for a franchisor with 200+ units, for more than two decades now – that doesn’t hurt either! So when I walked in as one of the initial clients of that first Iron Tribe Fitness gym back in 2010, I immediately noticed all of the subtle details of initial systemization in this early startup. Then, as I got to know Forrest, those personal business habits that I keep addressing, they just oozed out of his pores. It’s who he is. Period. For me at that time, an entrepreneur who had already established a business built on market innovation, I completely identified with Forrest’s objective to do the same thing. Market innovators are strapped with the difficult objective of either reinventing something that is already out there OR creating a whole new idea out of thin air. Either one of these scenarios makes for the difficult task of selling this new concept to the marketplace, which is always tough, let alone in a recessive economy!
In 2008, I was on a mission to raise capital in Silicon Valley, to achieve my objective of building a to provide a new solution to the marketplace in the form of online technology geared toward high school student-‐athletes. By assisting these young athletes in promoting themselves to college coaches, scholarship revenue is generated and college graduations are funded; it’s a beautiful thing for all parties involved. Especially when you consider the fact that college athletic department recruiting budgets are saving cash by tapping into our database of these high school athletes. Going “door-‐to-‐door,” visiting with high school administrators throughout the state of Alabama and my home state of New York, I grew our user base enough to not only generate a solid first year of revenue in 2008, but also transitioned my technology provision from a BETA testing phase to an upgraded version that is currently provided by several states including Alabama and Louisiana, as a free service for thousands of their student-‐athletes. This is why I had such great respect for what I was watching in that first part of 2010, when I was walking into the doors at that first ever Iron Tribe Fitness gym in Homewood; I could feel the market innovation. It drew me in more and more, each and every time I showed up. I’m a self-‐admitted connector, who is always thinking big, and looking for solutions to bring everything and everyone together in a manner that can make a positive impact on our world. In 2010, I knew that there was a tremendous opportunity for me to personally help Iron Tribe Fitness grow fast, if I applied myself to this fascinating startup. Because of our immediate synergy, Forrest and I would end up connecting to a point where we would become business partners and compliment one another in working toward our objective to solve that issue I mentioned earlier – you know, the one about how hard it is to search and find the right business model to pair with this roller coaster economy – we actually worked together to create the precise business model that folks in this roller coaster economy are truly longing for! My first contribution toward this objective was to open up the second-‐ever Iron Tribe Fitness gym in East Birmingham on U.S. Highway 280 in January 2011, just one year after Forrest had opened the first. It was here, that I would mesh my unique ability for market innovation and other skills that I had harvested in past ventures, with Forrest’s personal business habits that had made him a successful entrepreneur. It was here that we would begin formulating what we feel is the solution. From day one, this gym was a pure test that would eventually become what we refer to as our “franchise prototype.”
The test was a success and by April 2012, we had announced that our objective to provide the American people with the right business model for today’s roller coaster economy, was now available!
Introducing THE Iron Tribe Fitness Franchise From our ongoing experiments at each of the first two gyms, we began building a strong core of operations for the Iron Tribe Fitness Franchise – something I like to call The Perfect Athlete Life Cycle (PAL). It includes every one of the online and offline systems that are needed to execute the model for successful results in this roller coaster economy and more importantly, delivering life transformations for our clients (a.k.a athletes).
The only reason we even found this solution is because of our commitment to test the model with a “rinse and repeat” formulaic approach, over two years and in four of our own gyms, before we’d ever ask anyone to operate their own Iron Tribe Fitness Franchise. There are several common denominators that continue to live at the source of each and every piece of innovation to this always-‐evolving puzzle. The CORE reason a person should get into business, along with the THREE key drivers that can make that business more valuable than you could ever imagine! Whether you are buying a tested franchise model like Iron Tribe Fitness or starting an untested business model from scratch, the initial reasoning should be centered around the objective of creating value via equity NOT episodic “big hit” income. When doing so, you can actually build a sellable business.
Ongoing experiments for systems in The Perfect Athlete Life Cycle, were built at our original 400 sq. ft. “corporate office” [left] where Forrest and I worked ON the business, so that we could test new systems through our management team, who work IN the business.
I want to be clear, however, by stating that this initial reasoning must include core values and a mission that are specific to who you are and why you decided to be in business in the first place. But to sustain your core values and mission, you must have a vision for profitability that will ultimately create this value via equity. Also, know that if you are going to start a business to generate a series of unpredictable “big hits” or as our mentor Dan Kennedy likes to call it – “episodic income,” instead of building equity in the form of continuity income, it is not likely that you’ll ever be able to create enough value via equity to sell your business. That’s why we’ve built the Iron Tribe Fitness Franchise around three key drivers that Mr. Kennedy has continuously knocked into our heads as the essentials for our franchisee partners, to help them build more equity than they could ever hope.
Key Equity Driver #1 – The List The first of these drivers is the list. There is not a more valuable asset to ANY business than The List, which contains contact information for prospects, current clients and former clients. Not the most valuable proprietary technology, robotic equipment, potent real estate or superstar staff member, can top The List as the chief asset that a business possesses. Think about it. What value does new tech, robotic labor, land or an all-‐star team member possess, if you don’t have anyone to serve or sell something to? If you ditch the technology, lose the robot, walk away from the land and part ways with your staff, you could still start from scratch with The List. Thus, The List is the winner when it comes to being the most valuable asset for building an equitable business. I say this from experience. Since the beginning, building a list has been the number one objective to grow our business. We became so good at it, that our Infusionsoft Customer Relationship Management (CRM) software provider, named Forrest and I their 2012 Ultimate Marketer of the Year award winners. While more than 10,000 businesses use Infusionsoft to build their list, we were the ones on stage presenting and then receiving their prestigious award. Why? Not only because of our ability to build The List, but because we scaled our list building power with Key Equity Driver #2 – Process Power.
Key Equity Driver #2 – Process Power To ensure you’re consistently working toward building equity, you must possess Process Power in the form of systems for every procedure in your business. Otherwise, you’re merely relying on the initiative and talent of each individual on your team, instead of depending on a proven set of steps to execute each milestone toward your success. Through each phase of The Perfect Athlete Life Cycle (PAL), Process Power shows its true colors on a consistent basis, through a series of Award Winning systems that leverage your list through the establishment of a proven conversion process that has converted more than 40% of our incoming prospects to become active clients with a Lifetime Client Value (LCV) exceeding $8,000! It doesn’t stop there, however, as there is Process Power in place to nurture those roughly 60% of unconverted prospects to the point where another 7% eventually decide they’re ready to sign their active client agreement. Knowing these numbers has been integral to our success, because it has allowed us to build systematized marketing campaigns in diverse forms of media, while knowing what we are willing to spend to acquire a new client! In addition to the marketing campaign aspect of our Process Power, has been our on [and off] the floor coaching systems, which have been established to set the standards for delivering the Iron Tribe client experience, which is successfully reflected in our 97% monthly active client retention metrics, with 83% of these folks referring their friends to potentially become clients as well. You can’t just have Process Power, though. It takes time. You have to establish systems through failure until success, through an obligation to testing and refinement – countless “rinse and repeat” cycles. With now six of our own gyms here in Birmingham, we have the unique opportunity to test each and every system first, before any Iron Tribe Fitness franchisee is asked to implement it at their gym! Okay, there are several moving parts when it comes to this Process Power key equity driver. But ultimately, the objective is to ensure that the business is ran with processes instead depending on a person’s talent.
The List & Process Power At Work
Forrest and I had the opportunity to win several awards because of the Iron Tribe Fitness business model’s ability to leverage The List and integrate Process Power.
Key Equity Driver #3 – Continuity Income It is in this exact spot, where everything connects together like a puzzle. I’ve explained why The List is your top asset and illustrated how you can scale growth plans through Process Power. Now let’s address the necessity of sustainability via profitability. This is where my frustrations with “episodic income” start to come about. Read carefully. No matter how passionate you are about a business and its mission, you cannot accurately plan or forecast revenue without Continuity Income. This is where those “episodic” or “big hit” income plays run into the harsh realities of having an unpredictable business plan. This is also where so many businesses go to die, and where few will prosper in ways that have the rest scratching their heads. When we made the conscious decision to limit membership to 300 people, knowing that the active client is paying between $230 and $310 per month on a 4, 8 or 12 month agreement, our planning and forecasting efforts became clear as day. Our Continuity Income is personified through a metric we call Average Client Value (ACV), which takes your gross revenue and divides by the number of paying active clients, to establish a monthly dollar amount that each client spends on their experience.
There are several other Continuity Income-‐based metrics that work together to help us make extremely profitable decisions in the realm of product innovation, staff recruiting and of course, marketing. Because let’s face it, if you know how much you are willing to invest to acquire new clients, hire the best staff and evolve your client experience, then your decisions will become much easier to make, and your opportunities for brand ubiquity will follow suit.
You’re Just Like Me! Maybe not exactly like me, but enough where you are reading this report because something about what Forrest established in his garage and what we have carried on with the Iron Tribe Fitness Franchise, has intrigued you enough to do some research and find out more for yourself. That same intrigue is what ultimately triggered my personal reinvention back in 2010, when I joined Forrest to open up our franchise prototype. You can now do the same and open up your very own potentially-‐equitable Iron Tribe Fitness Franchises in any of the markets that still have availability, but you’ll actually be able to benefit from something that wasn’t around back when I partnered with Forrest; SPEED. OUR COMMITMENT – “Innovate Faster Than They Can Copy.”
– Ray Kroc, McDonald’s Founder Through a dedication to testing innovation at our own gyms, we have set the foundation for you to build a valuable business faster than you could ever hope, while possessing a continuous structure of support from our corporate headquarters. We’ve made your expensive mistakes for you and plan on continuing to do so! Of course, you will make your own mistakes too. But you will also have your own breakthroughs. Your very own market innovations in places that we may have overlooked or missed out on. We are in this thing together. Not only as a franchisor supporting our franchisees, but as owners and operators, continuing to build our own equity at each of our six Birmingham gyms, while evolving the model to a point where you can do it too. The best part? We are all working together to impact the world in ways that get us chomping at the bit each morning we arise. OUR DRIVE – “The ones who are crazy enough to think they can change the world, are the ones who actually do.”
– Steve Jobs, Apple iCEO Now that you know us better, let’s take the next step and jump right into the Iron Tribe Fitness Franchise model. I am going to let you in on the secrets you need to know so that you can further understand operations, along with relating each daily management activity back to those three key equity drivers we discussed earlier.
You’re Investment Is Only As Good As Your Operations Plan – Execution Is A Must. There are three fundamentals crucial to the execution of your Iron Tribe Fitness Franchise business model, and each correlates to the key equity drivers that I addressed in part one of this report.
1. Site Selection – proper demographics where you can build The List. 2. Manager – the right person to implement the Process Power systems. 3. Coaching Staff – the team you will entrust with the Continuity Income.
Fundamental #1 – Site Selection The Site Selection process is lead by our Vice President for Franchise Development, Tom DeLosa, who has more than 15 years of experience in developing franchises. DeLosa and our development team utilize data that we have gathered from each of our gyms, to help you select the best site within your territory, based on statistics like household income, home value, age, reading material, etc. It’s an important first step that we take very seriously, to the point where Forrest recruited Tom and his family to move to Birmingham from Denver, where he had a successful career in executing the Franchise Development process for multiple franchisors based in that market. Tom not only spearheads the Site Selection efforts, but he and his team are also your resource to execute the Lease Negotiation and Construction Management portions of the Development Process, which will literally get you from the ink hitting the page on Join-‐The-‐TRIBE Day to the Certificate of Occupancy (CO) that you receive just before you open your very own orange Iron Tribe Fitness gym doors.
Fundamental #2 – Manager Who will hold the keys to your investment’s fate? That’s the question you must ask yourself when making the crucial decision on whether you will be an Owner-‐Operator or if you will choose to have a Managing Partner running your business. While you definitely want your business to thrive on the Process Power that we have created at our gyms in Birmingham, you don’t want to miss out on the opportunity to pair it with a talented Operator that can execute each system.
If you’ll be the Owner-‐Operator, get ready, because we are about to go through a day in the life of a Manager, to paint a clear picture of each daily activity and then relate it back to those three key equity drivers that will build immense amounts of value via equity into your new business. However, if you are looking for a Managing Partner, we have several resources that can assist you with this necessary acquisition. First off, you can request our one page Managing Partner Executive Summary that provides three examples of relationships that our franchisees have established. This document also includes some insightful commentary from each of these three franchisee examples. The other resource is in our good friends at The Fireseeds Group, a strategic partnership that provides due diligence in this category, at a level that is unparalleled. The Fireseeds Group has been thorough in their efforts to understand our business at a high enough level to utilize their world-‐class vetting process to qualify potential Managing Partner as well as Coaching candidates for you to choose from. Regardless of the operations route you’ve chosen, there is a plan mapped out to train as the manager for your Iron Tribe Fitness Franchise, in a simultaneous manner that correlates directly with the timeline of your Development Process.
Fundamental #3 – Coaching Staff What are we selling..? Commodity Good Service Experience Transformation Coffee Bean Folgers Waffle House Starbucks Iron Tribe Fitness 4¢/cup 15¢/cup $1.20/cup $4/cup Pricele$$ How can you scale such a progression? First-‐Class, World-‐Class Coaching. Coaching that starts and ends with priceless relationships that produce life-‐changing results on a consistent basis. These relationships are initiated with the Iron Tribe 101 classes that make up a clients’ first four weeks, setting the foundation for the transformation that they signed up to experience.
At the core of this Iron Tribe experience, is an over-‐delivery of happiness that results with a client that is willing to pay even two or three times as much, to make sure they continue experiencing their personal transformation at your Iron Tribe Fitness franchise gym! Who can ensure the over-‐deliverance of such a transformational experience -‐ one that will ensure a low Attrition Rate [less than 3% monthly] and Continuity Income [$250+ Average Client Value monthly] that you can build upon each month? Your Coaches! Much like the resources we’ve prepared for you to find the right person to manage your new business, we have also arranged several tools that can help you recruit, interview and hire the right Coaching Staff; a true group of “A Players” that you can grow from an entry level co-‐coach position to a head coach and eventually place into a management role. We’ve even created a Coaches’ Certification program, where you can send your Coaching Staff to our Birmingham Headquarters for a two day training event with our Director of Training, Luan Nguyen. Not to mention the fact that you can request The Fireseeds Group’s services to help you in finding the right people to achieve this absolutely invaluable accomplishment.
Are YOU Holding The Keys To The Fastest Growing Iron Tribe Fitness Franchise To Date? I have absolutely NO DOUBT that you could definitely be opening what could be our most successful franchise(s) yet! It’s in the following progressions where your operations foundation is built. This is truly where your projected run rate and overall ramp up will be produced.
1. ITFU Online Learning 2. ITF Birmingham Management Practicum Program 3. TRIBE Academy 4. Pre-‐Opening Assignments
MY RULE: “He who takes what I am about to share, the most seriously, will be the most successful.” This is ONLY for the above average initiative-‐taker. For the self-‐starter, the world-‐changer, and ultimately the guy or gal who has truly set out to be a die hard gym operator ready to make a BIG impact.
Is that you? We’ve prepared for you road map that we like to call the Daily Growth Checklist (DGC), complete with every piece of Process Power that you’ll need to execute effectively enough to efficiently grow your Iron Tribe Fitness gym faster than you ever thought possible! Will you set the records? Will you exceed each goal for each of our set Key Performance Indicator (KPI) metrics? Will you grow your Iron Tribe Fitness gym faster than anyone else has ever seen or at least than your pro forma forecasts? I’ve compiled this information based on my personal experiences, running our 2nd-‐ever location in 2011 and then overseeing as many as four of our own locations in 2012, before transitioning to drive our entire brand as Chief Operating Officer (COO) When I ran my gym, I would organize my daily tasks into three categories; Acquisition, Retention and Administration. When I stepped out of gym management, I built a one-‐page document that could guide our managers in their daily workflow, to help them exceed the monthly goal for each of the KPI metrics that I would discuss with them in our weekly meetings – The Daily Growth Checklist (DGC). What I am about to share with you is the daily gym operations guidance that has produced individual staff growth, member athlete transformations, and ultimately, true equity value at our Iron Tribe Fitness gyms.
Pre-‐Requisite: SET YOUR 1st YEAR KPI GOALS Before we address any daily management activities, it’s important to know exactly where we want that strategy to take us. Where exactly do you want to be as a franchise owner, after your first twelve months of operations? A wise man once told me that “setting goals is the first step in turning the invisible into the visible.” This is so true! Personal Development and goal setting has been at the forefront for both Forrest and I, since the very beginning of our relationship. In fact, it’s really what triggered my interest in pursuing him about Iron Tribe Fitness – Forrest saw me at a coffee shop and gave me a Harvard Business Review article about purpose, vision, values and goals, that really got me thinking about those topics in my own life! In Darren Hardy’s book The Compound Effect, he emphasizes the significance of both goal setting AND the power implementing a series of daily habits to produce growth toward your goals and in turn, massive success.
Darren defines the Compound Effect this way:
It’s the principle of reaping huge rewards from a series of small, smart choices. Success is earned in the moment-‐to-‐moment decisions that in themselves make no visible difference whatsoever, but the accumulated compounding effect is profound.”
For example, if you want to save money so you can enjoy your retirement, consider the compounding effect of spending $4 a day on coffee. If you choose to invest $4 a day at 8% interest rather than spending it on a cup of coffee it would result in $51,833.79 in 20 years. The same result could also be reached by making your own lunches rather than eating out. Do both and you will have saved an extra $100,000.
Some of our best intentions fail because we don’t have a system of execution. When it comes down to it, your new attitudes and behaviors must be incorporated into your monthly, weekly, and daily routines to affect any real, positive change. A routine is something you do every day without fail, so that eventually, like brushing your teeth or putting on your seatbelt, you do it without conscious thought. Success is NOT doing 5,000 things really well! Success is doing a half dozen things really well, more than 5,000 times!
Before I establish what is basically your daily “half dozen,” I need you to put something important IN PRINT – your 1st Year KPI goals! How can we support you from our corporate offices without having a road map to hold you accountable to? In the KPI Template that I have provided for you, you’ll notice that I have suggested monthly and annual goals for each KPI metric. These are real examples from the first year at our slowest growing gym, which still had great first year of success before becoming an even more profitable location for us in year number two. Utilize these examples to guide you in establishing your own monthly and annual goals for each of the following metrics, so that we can take the next step and begin working through how you will get there!
Gross Revenue Gross Expenses* Net Profit* Net Profit %* Payroll* Payroll % Food Revenue Product Revenue Avg. Client Value (ACV) Total Active Clients
Leads Consults Lead/Consult % New Clients Close Rate % New Client Rev. Avg. New Ticket Marketing Budget Marketing ROI %
Renewals Non-‐Renewals Monthly Attrition % On Hold/Injured % Renewal Upgrade % Avg. Renewal Ticket Total Renewal Rev Class Capacity %
Acquisition Retention
KPI Metric Pathways
DRIVERS
Administration
To assist you in creating your first year monthly goals for each of the KPI metrics, I have provided an explanation for each metric, along with a suggested goal from our experience at first year gyms that we own here in Birmingham.
Driver KPI Metrics Gross Revenue is the total top line revenue that you generate on a monthly basis.
Goal Suggestion: >$29,000 per month and >$350,000 in year #1
Payroll % of Revenue is the total percentage of payroll versus your gross revenue. Goal Suggestion: <50% per month in year #1 and then 25% each year after Food Revenue is the itemized revenue that is a result of active clients who have subscribed to the weekly food program that your gym should be offering.
Goal Suggestion: >$4,500 monthly average Product Revenue is the itemized revenue that is a result of active clients who have purchased supplements, snacks, merchandise and/or any other APPROVED product offerings at your gym.
Goal Suggestion: >$1,500 monthly average (Food & Product = 20% of Gross) Active Client Value (ACV) is the average spend per month from each active member, based on their monthly membership dues and point-‐of-‐sale food and product purchases.
Goal Suggestion: >$250 monthly and annual average Total Active Clients is the number of people who are actively paying a monthly membership fee within their 4, 8 or 12 month agreement.
Goal Suggestion: >125 monthly average and >216 by the end of year #1
Retention KPI Metrics Renewals are the active clients (athletes) that have chosen to renew their agreement [which auto-‐renews unless they proactively contact you to make a change].
Goal Suggestion: >5 renewals per month (your 1st 5 months will be 0) On Hold/Injured % is the percentage of current active clients who have provided medical documentation to put a hold on their monthly payment due to injury.
Goal Suggestion: <5% monthly and year #1 average Monthly Attrition % is percentage of those non-‐renewals versus the total active client number at your gym.
Goal Suggestion: <2% monthly and year #1 avg (your 1st 5 months will be 0)
Non-‐Renewals are the number of active clients who proactively contact you to disable their auto-‐renewal.
Goal Suggestion: <3.5 lost clients per month
Renewal Upgrade % is the conversion rate for those renewal candidates who are currently on a 4 or 8 month agreement and are eligible to upgrade to a 8 or 12 month agreement.
Goal Suggestion: >75% of renewal candidates should upgrade each month Average Renewal Ticket is the average value of each renewal in a given month.
Goal Suggestion: >$2,000 monthly average (your 1st 5 months will be 0) Total Renewal Revenue is the total amount of revenue generated by each of the renewals in a given month.
Goal Suggestion: >$15,000 monthly average (your 1st 5 months will be 0) Class Capacity % is the percentage of active clients who attend your daily class offerings for the month versus the 20 spots you have available for each class offering.
Goal Suggestion: >50% monthly and year #1 average *Gross Expenses, Net Profit, Net Profit % and Payroll are also in the Drivers category, but are based on mathematics that you, as an owner will ultimately make decisions on, as you grow your gym.
Acquisition KPI Metrics Leads are the number of people who “raised their hand” and showed interest in learning more about your gym.
Goal Suggestion: >48 new leads per month (>12 new leads per week) Consults are the leads who qualified for a personal visit to your gym, to get a free tour and sit down to see if it’s a good fit for them to become a new client.
Goal Suggestion: >20 new consults per month (>5 consults per week)
Lead/Consult % is the conversion rate for leads who sit down for a consult. Goal Suggestion: >40% lead-‐to-‐consult %
New Clients (athletes) are the consults who sign a 4, 8 or 12 month agreement to transform their life at your gym.
Goal Suggestion: >18 new clients monthly (>4.5 new clients per week) Close Rate % is the conversion rate for consults who become new clients.
Goal Suggestion: >90% close rate monthly average %
New Client Revenue is the total amount of revenue generated by each of the new active client agreements that you have signed.
Goal Suggestion: >$35,000 monthly average
Average New Ticket is the average ticket per agreement signed. This doesn’t include their initial payment for their Iron Tribe 101 class, but is essentially the total amount of continuity income generated from each month’s new active clients.
Goal Suggestion: >$1700 monthly and year #1 average
Marketing Budget is the amount of money spent in a given month, on any marketing or advertising to generate new leads.
Goal Suggestion: $4,000 monthly marketing spending budget
Marketing ROI % is return on your monthly marketing budget investment. Goal Suggestion: >200% monthly and year #1 average
Transforming Into The Ultimate Operator As fun as it can be, running your Iron Tribe gym is still running a business in the new economy. The good news is the fact that we’ve prepared you with the Process Power systems to crush your first year KPI goals! My Operations Support Team takes the “Michael Jordan mindset” to heart, in all they do. It was Jordan that said it perfect when he boasted; “I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed.” Well we’ve missed most of those 9,000 shots for you, lost most of those 300 games for you, and missed most of those 26 game winning shot attempts for you – so that you would be able to come in and start stronger through our experiences with failure. That’s where these Process Power systems were born, have been developed and are continuously being refined. You’re going to have to thrive on the motivation to crush each big hairy audacious goal (a.k.a. BHAG) that you and your team have set, along with taking slight setbacks in stride knowing that you will ultimately succeed in the end, as long as you stay within the lines of the model we’ve built for you. So I ask you again – are you holding the keys to the fastest growing Iron Tribe? To get there, you’ll need to work through the Acquisition, Retention and Administration tasks and strategies that we have mapped out in your Daily Growth
Checklist (DGC). If you want to think back to Darren Hardy’s tutelage from his book The Compound Effect, this checklist is essentially your “daily half dozen” group of habits that you will master to become the top operator in the Iron Tribe Franchising system! To learn how to execute in each category, along with how these Process Power systems each connect to your KPI, I’ve created four progressions of learning, training and testing for you to follow and take massive action in preparation toward creating the most successful Iron Tribe Fitness gym ever! Each progression comes as its own section to add to this report, as a workbook to ensure you are staying on the correct path toward your success. 1. ITFU Online Learning – https://ITFU.customerhub.net
For each group of action items on your Daily Growth Checklist (DGC), there are videos with several different team members joining me for strategy sessions per topic. The ITFU Online Learning menu option allows you to interact with the DGC in a clickable format that not only contains educational videos per action item topic, but it also triggers your completion of specific preliminary actions that prepare you to open your gym at full force. You’ll also enjoy the ability for you and your team to continually utilize ITFU as an online resource reference for every operations topic within your business, for new hire training you have to do or even just a current staff refreshment program to keep everyone at the top of their game!
2. Management Practicum Program (MPP) – ITF BHM We’ve established a series of Management Practicum Program (MPP) milestones for each category of action items within the DGC, and you can actually participate in these milestones at one of our gyms in Birmingham! It is strongly preferred that you come to Birmingham to participate in our six week MPP, where you will have the opportunity to work through a detailed on site training program for each of these DGC milestones at one of our ITF corporately owned gyms. The MPP workbook will plug directly into this report as an add-‐on that allows you to continue running your own MPP at your gyms whenever you add or develop staff. 3. TRIBE Academy
In the Iron Tribe Franchising version of what most franchisor’s call “Franchise School,” each of the key players on our Operations Support Team will review the key items you have learned and put to work in both the ITFU and MPP experiences. You’ll go through a scenario-‐based testing program through our TRIBE Academy workbook, which once again is an added plug-‐in to this report. What might be the neatest part of TRIBE Academy, is the fact that it takes place approximately one month before you open up your new gym – READY TO TAKE MASSIVE ACTION AND CRUSH YOUR YEAR #1 BHAG’S!
4. Pre-‐Opening Assignments The final progression is one of the most exciting. Picture this – your construction process is coming together. You are just weeks away from your first class! There’s a lot of prep work, including a strong push toward your pre-‐opening sales. We’ve compiled a large list of initial action items in several of the areas you have been learning and practicing for months now. When you leave TRIBE Academy, you’ll receive your final Pre-‐Opening workbook to plug into this report. This is everything from your pre-‐opening marketing action items to your first 90 days of suggested marketing and event plans.
The Last Word. Granted – I’m a young businessman who is still seeing lots of things for the first time. But one consistent thing that I have picked up on throughout my first few years in business, is the fact that there is a lot of “hot air” out there. But, like everything else, actions consistently speak louder than the words of the best of the best talkers out there. With top line revenue numbers getting thrown around as if it’s the EBITDA going into reserves, and our economy flailing more each day, it is becoming rarer to see a business sustain to the point where it’s profits help it grow to more locations so that it can serve more people. But not for you. That’s your vision. It’s why you’re reading this report. Not to mention the fact that it’s even more unusual to see a business give back in both non-‐profit and profiteering agendas that touch so many lives. You get to engage your community as one that will support non-‐profit causes like Neverthirst and Team Red, White & Blue, while you simultaneously get the chance to change the lives of this same community with the Iron Tribe experience! So as you work toward your goals, note that there is something bigger going on than just achieving them. There is a purpose being worked toward. One so large that no individual can even fathom its significance. Keep this in mind. It will motivate you, as it has us, to build something bigger than yourself. Your gym(s) and its community await.
