In our latest WiseBlog, we reveal the ‘5 Biggest Mistakes of a Beginner Gym Entrepreneur’. Discover how savvy space selection, strategic service offerings, and customer-centric policies can transform your startup into the go-to workout spot. Don’t let common errors undermine your success—learn what not to do, and why it matters more than you think!
1. Don't try to please everyone
Even if you operate in a small town and need a broad customer base, make choices. Would you rather eat in a restaurant that offers everything and it’s all mediocre, or in a restaurant that only has 5 dishes on the menu, all of them incredibly delicious? Consider conducting market research to identify what unique offerings could attract a dedicated clientele. Tailoring your business to a niche market also allows for more targeted marketing strategies, optimizing your advertising budget and efforts.
2. Don't choose an inappropriate space
You always have to make compromises with the location, but it's possible to minimize them. Choose a space that is immediately the right size for your concept. A space that is too large or too small will not work. Also evaluate how accessible the location is for your target clientele; consider factors like parking, public transport options, and overall visibility.
3. Don't sell ten-visit cards
A ten-visit card is the complete opposite of what you offer your customers. The idea of exercise is to bring energy, well-being, etc.
With a ten-visit card, people's natural mindset goes like this :
I'm having a bad day and I'm tired, so I don't want to 'waste' a visit on the ten-visit card when I won't achieve anything at the gym anyway.
In the case of a time-bound gym membership, it’s on days like this that people go to the gym - even if just to sit around and chat with workout buddies. And they get motivated to train and leave feeling good - that's exactly what you’re selling!
4. Don't create high barriers for your customers to start
Joining fee - what's that? Joining fees and start-up fees are often used to increase the lifetime value of a membership. This might be true, but at the same time, it often ends up reducing the number of new customers, i.e., volume. Lowering entry barriers can significantly boost your initial customer acquisition. For example, offering a free trial period or a complimentary first session can attract people to experience your service without a financial commitment. Make sure your CRM system tracks these free trial participants, so you can then market your full-time gym passes to them effectively.
5. Don't forcibly tie your customers - let them enjoy
Forced long-term contracts decrease the number of new customers and cause dissatisfaction when customers have to pay even though they are not using the service. Your customers don’t buy a gym membership because of the contract itself, but because of the results and consequences of moving. Ensure that your facilities and service are up to scratch and let them decide how long they want to be your customers. People who choose to be your customers of their own accord will sell your gym to their friends and will gladly return to you again and again.
Joni Meskanen
CEO of WiseNetwork
I'm dedicated to empowering SMEs in the sports and fitness industry through innovative digital solutions. With 25 years of gym industry experience, I bring a wealth of knowledge to enhance digital presence, streamline operations, and enrich customer experiences for gyms, golf clubs, climbing facilities, and more. My mission is to drive transformation and growth, helping SMEs to thrive in a competitive digital landscape.
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