Operations: With Goal Setting, Start Small
As a health club operator, it’s likely that you have huge goals for your business. Maybe you’re striving to make 1 million in revenue by the end of 2016, or you wish to add a second location to your portfolio.
No matter what the specific goal is, it can be daunting to think about how you will achieve this goal. After all, it’s a goal for a reason. The possibility that the goal may not be realized is very real.
In his book “Smarter Faster Better: The Secrets of Being Productive in Life and Business,” author Charles Duhigg discusses the art of goal setting. And that art includes taking big goals, and breaking them down into smaller, manageable ones.
Take the “1 million in revenue by end of Q4” goal as an example. Taking Duhigg’s approach, that goal would be broken down by quarters —if not more — and key questions would be answered. How many new members need to be sold to achieve this goal? How many members need to be retained? What new revenue streams must be added? What initiatives must be launched?
Here are some examples of how this could play out, (dependant on your membership pricing):
Q1: 4,000 members (total) + $30,000 in training revenue + $20,000 ancillary revenue
Q2: 3,000 members (total) + $20,000 in training revenue + $10,000 ancillary revenue
Q3: 3,000 members (total) + $20,000 in training revenue + $10,000 ancillary revenue
Q4: 4,000 members (total) + $30,000 in training revenue + $20,000 ancillary revenue
= 1 million in revenue
Looking at things this way, the goal doesn’t seem as impossible to achieve. In fact, you now have specific areas you can focus on (memberships, training and ancillary revenue) to help the goal become attainable.
In fact, your personal trainers use this goal-setting strategy with their clients all the time. If a member wants to lose 30 pounds in 6 months, the trainer doesn’t just say, “OK, that’s the goal!” No, they sit down, and make a plan for how the member can lose 5 pounds every month, up until the 6-month mark.
So, the next time you’re faced with a major goal, don’t despair. Break the goal down into smaller, attainable goals, and get to work.