Failed Gym

Has anyone here ever opened a JJ gym and it didn't succeed? What were the reasons and what would you do differently looking back? Phone Post 3.0

Not yet, but I am working on it.

I found that raping students hurt business but didn't cause me to shut down Phone Post 3.0

shen -


Not yet, but I am working on it.

Literal lol Phone Post 3.0

shen -


Not yet, but I am working on it.

Lol Phone Post 3.0

Jiujiteiro702 - Has anyone here ever opened a JJ gym and it didn't succeed? What were the reasons and what would you do differently looking back? Phone Post 3.0

I'm pretty sure this guy had one or two gyms that didn't work out.

http://www.mixedmartialarts.com/thread/1744492/Possible-fake-Black-Belt/?pc=10780

http://naplesnoteworthy.com/gene-simco-from-martial-arts-to-ministry-jiu-jitsu-to-jesus/ Phone Post 3.0

Brian McLaughlin - http://naplesnoteworthy.com/gene-simco-from-martial-arts-to-ministry-jiu-jitsu-to-jesus/ Phone Post 3.0


Cool...



Nice to see an OG fake black belt branching out to other ways of manipulating people with bullsh!t.



 

I've had my academy for about 3 years. If it wasn't for my regular full time job, I would not be able to support myself and my 3 kids with my bjj income.

However, if I really wanted to increase my student enrollment (and not run my academy like a hobby), I would do the following (I have implemented some of these already):

1) Create more efficient systems- Answering calls, returning emails, etc

2) Offer more Classes- Morning, Noon, and Evening Classes- as well as kids classes

3) Implement 6 and/or 12 month contracts

4) Have everyone on Auto-Debit immediately upon enrollment

5) Beginner's classes 3 times a week (limited full on rolling- but includes positional training)

5b) Rotating 2-3 month curriculum for beginners program

6) Showers (personal preference- not sure if this would add any students to my school)

7) Better location - my present location has zero foot traffic

8) Dedicate a couple of hours a day strictly on marketing- including passing out fliers, demos at various schools and organizations, etc

Although my gym broke even or even made a profit sometimes, I consider it a failure. I ran it 2.5 years, and closed it 2 months ago.

My overhead was low, but I had trouble breaking 30 members. My attrition wasn't bad, and I did OK signing people up, but just didn't get enough people coming through the door.

The location was fairly bad in terms of curb appeal and lower-income neighborhoods, but other gyms had succeeded in the same location. So I can't point the finger exclusively at location.

I know all about SEO, but the old tricks don't work anymore and can even backfire thanks to Panda and Penguin. I spent way too much time trying to fix up my gym and make it nice, and probably should have focused a lot more on web marketing.

My customer base seemed to be broke teenagers with car problems and ADD kids with super ADD parents. I certainly had some awesome students, but even the best were living paycheck to paycheck (or so they told me...).

I went almost exclusively with auto-draft 6 or 12 month contracts (12 month students tended to stick it out better than 6 month, who would often bail out before the 6 month arrived). I used a billing company, Affiliated.org, big props to them and their excellent customer service, well worth it. Best phone customer service I've encountered in my life.

I found running a gym incredibly stressful, even more than my real job that most people would consider high-pressure.

I could never clear my head of thoughts like "This student hasn't been to class in over a week, he's probably discouraged and about to quit", "This guy said he'd pay me this Wednesday, but seems now it's Friday and he's pretending to forget", "That kid seemed bored all class, and his parents are looking upset", etc. I was texting students every day, trying to keep them engaged and the whole thing was exhausting.

I also made it very hard on myself, because I had (free) belt tests that required a fair bit of review to prepare for. As they got higher, I'd have to meet with them for a (free) review, which took up even more time.

I had a few guys that helped me teach here and there, but often found myself teaching up to 10 classes per week, which could be pretty exhausting. Plus, I was obsessed with having a clean gym, but when classes ended as late as 10pm, didn't feel like staying to clean the mats so would have to go in the next day to clean them before the next classes (leaving time for them to dry). Sheesh.

I love teaching and training, but absolutely hated the business side. One of the happiest days of my life was closing the gym, and I haven't regretted it for one second.

yeah, i know a few.

great guys, shitty business people. they also never listened to criticism and never wanted to spend the money.

much like any other business venture, if you don't treat it like a business, then it will never reward you as a business.

in the end, you need to pay bills and feed yourself and your family

I've been in the industry a long time.  Overall themes that I've notice for failed gyms
 
1.     Owner of gym is not an athlete.  This guy comes from the business world and is convinced MMA/BJJ is the next big thing so he jumps in.  Staff is full of competitive athletes who have a background in the sport.  Ultimately, the owner believes the staff is expendable, and they can be fired rehired like a cashier.  The staff doesn't respect the owner because he has no background in the sport.  Both parties will sabotage each other in a twisted manner to try and gain the other party's respect.  Gym will ultimately fold because of these tactics.
 
2.     Star practitioner who is convinced that he will be financially successful because he was successful on the tournament scene.  He can create monsters but has little ability to deal with non-athletes who aren't driven to succeed in tournaments.  Ultimately, only 5% of a gym's student base will compete.  Trying to market to this 5%, and setup training sessions to this group is stupid.  The majority of people will drop out because the practices are too difficult and simply not valuable for the normal person trying to get in shape, or feel confident about themselves.
 
3.     Dumb business guy.  This guy has no business sense.  He has around $15K of capital to start up a gym and he signs a lease for a 4,000 sqft property that costs nearly $5K per month in rent.  He thinks he should "break even" by month three.  He hasn't budgeted any expenses because he has no idea how to do projections.  After 2-3 months, he's behind on rent and by the 6th month the landlord is trying to evict him.
 
Sadly, number 3 is the most common occurrence.  Most guys getting involved in the fitness industry are athletes that have little to no background in business.  They have no idea that teaching an armbar isn't going to make you rich.  You should have at least $100K cash in your bank account to start your gym.  You need to be able to run 1 year minimum (lease, payroll, marketing, insurance, etc) and assume you will not make a penny of revenues with your capital.  If you can't do it, save more money or pool together a group of investors.  
 

Interesting thread with great suggestions and advice!

Thanks everybody for the great replys Phone Post 3.0