STATE OF THE UNION [ALEX HORMOZI]

Summary

• The gym industry is facing significant challenges, with 25 to 30 percent of independent gyms closing permanently, and this number might rise to 40 or 50 percent.
• Gym owners are struggling due to uncontrollable market forces, such as constraints imposed by the political environment and the shift of consumers to different fitness options.
• In finance, there's a saying that the market strength often trumps the operator's capabilities. A strong market can make a weak operator succeed, whereas even the best operator can fail in a weak market.
• Many consumers have adapted to different fitness solutions due to the pandemic, which means the market for traditional gyms is shrinking.
• Gym Launch is committed to gym owners, not gyms. The goal is to help gym owners use their skills to provide for their families and serve their communities effectively.
• I believe the best opportunity for gym owners right now is to pivot to online coaching, as it offers unlimited lead generation, better margins, lifestyle freedom, and potentially superior client results.
• Online coaching is less constrained by location, time, and lower ongoing operational costs compared to traditional gyms.
• The three primary existing online models before Gym Launch's new model involved outbound messaging, webinars, and online challenges – all of which have limitations and scalability issues.
• The new model Gym Launch supports allows for quick startup, scalable lead acquisition, and includes three roles – sales, coaching, and ownership.
• Sales for the new model are simpler, focusing on selling free trials, supplements, and nutrition coaching, which can be done on a larger scale.
• The online model supports higher client volumes at lower acquisition costs, with greater profit margins and doesn't require physical presence or infrastructure.
• For gym owners with existing in-person facilities, it's crucial to avoid the sunk cost fallacy when deciding how to proceed in the current market environment.
• The current market provides a unique opportunity for online fitness services due to high demand and low supply.
• I encourage gym owners to consider shifting to online services if they want security, consistent client acquisition, and freedom from the constraints of physical locations.
• While Gym Launch will continue to support in-person gyms, the focus is shifting to online models as I believe this offers gym owners the best chance for profitable growth.

Video

How To Take Action

I would suggest pivoting to online coaching as it offers unlimited leads, better margins, and lifestyle freedom. Start by offering free trials to attract clients. You can use the Trainerize app, which simplifies workout and meal plan delivery, and focus on selling supplements and nutrition coaching for additional revenue.

Here's a quick plan:

1. Shift the mindset from gym-centric to serving customers with your skills online.
2. Start offering online coaching services if you haven't already. It can be more profitable than a physical gym. Use social media and online marketing to reach potential clients beyond your local area.
3. Think about your existing skills and how you can package them for an online audience. Adapt your programs for the online platform.
4. Experiment with free or discounted initial offerings to draw in clients. You don't need a big budget; use your current network and social media to get started.
5. Focus on the core services you'll offer – personal coaching, nutrition planning, and accountability – and leverage tools like Trainerize to streamline your process.
6. Remember, it's not about the physical space anymore. Think about how you can provide value remotely. Keep the costs low by not requiring a physical location.
7. Don't let past investments in your physical location influence your decisions now. Consider the online market's potential and how it could benefit you in the long term.
8. Concentrate on building scalable systems, like automating parts of your online coaching with apps and software. This will allow you to handle more clients efficiently.
9. As the market for online coaching is currently in high demand with low supply, take action quickly to capitalize on this opportunity.

By moving your services online, you can avoid many of the hassles and constraints of running a physical gym and open up a new avenue for growth.

Quotes

"In a weak market, a strong operator will fail"

– Alex Hormozi

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"Gym Launch is loyal to gym owners, we are not loyal to gyms"

– Alex Hormozi

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"Lead generation in a remote environment offers virtually unlimited possibilities"

– Alex Hormozi

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"The online setting enables business owners to have freedom with their family and live wherever they want"

– Alex Hormozi

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"You will never fatigue the United States's need for weight loss"

– Alex Hormozi