What If Fitness Clubs Competed Less and Grew the Market More?"

 

What If Fitness Clubs Competed Less and Grew the Market More?"

I am an advocate for capitalism. It is far from a perfect system, but modern capitalism has created extraordinary opportunities for people from almost every section of society to build businesses, create wealth, employ others and forge their own path.

I enjoy owning my own business alongside my business partner, Russell Valler, and through Black Raccoon Consulting we work with entrepreneurs every day who have similar ambitions. We understand what it means to invest your money, time and reputation into something you believe in, and we understand the natural desire to compete and succeed.

Competition itself is not a bad thing. In fact, it is one of the mechanisms that makes capitalism work. Competition encourages innovation, challenges complacency, improves standards and, when it works properly, creates better products and services for consumers.

There is, however, something that has always puzzled me about the way we compete in the fitness industry.

What happens when our determination to beat each other actually prevents the industry itself from growing?

We are competing for the same minority

According to the 2025 State of the UK Fitness Industry Report, the UK fitness industry now has approximately 11.3 million members, generates around £6.5 billion in revenue and has reached a penetration rate of 16.6%. Those are impressive numbers and demonstrate how far the sector has come.

But there is another way of looking at that statistic.

If approximately 17% of the population belongs to a gym, then more than 80% does not. There is an enormous population of people who either have little interest in what we currently offer, do not believe conventional fitness facilities are relevant to them, have tried them previously and left, or simply haven't yet been persuaded that joining one would improve their lives.

Despite that, an enormous amount of our industry's marketing energy is directed towards competing for people who are already engaged with fitness.

We open a gym and immediately look at the membership of the gym down the road. We target people following competitors on Facebook and Instagram. We advertise directly outside other fitness facilities. We discount memberships to encourage people to switch, and occasionally I've even seen operators publicly criticise or name their competition.

I have seen budget clubs park advertising vans outside independent gyms. I have seen businesses deliberately target the followers of specific competitors and campaigns that amount to little more than, "Leave them and join us."

From the perspective of an individual business, I understand the logic. If somebody already spends £40 a month on fitness, convincing them to spend that £40 with you is considerably easier than persuading someone who has never considered joining a gym.

But collectively, surely we have to question where that strategy eventually takes us.

We are fighting over slices of the same relatively small pie instead of asking how we make the pie significantly bigger.

Competition and collaboration are not opposites

I am not suggesting gyms should stop competing. That would be unrealistic and, in my view, undesirable. If another club provides a better service, creates a stronger member experience or develops a more compelling proposition, that should challenge everyone around them to improve.

The mistake is assuming that competition and collaboration are mutually exclusive.

There is an established business concept called coopetition, where organisations compete in some areas while deliberately collaborating in others because doing so creates greater value for everyone involved. Researchers have studied the concept for decades, particularly in industries where businesses can benefit from sharing knowledge, resources or infrastructure while continuing to compete commercially.

There are numerous examples outside fitness. Sony and Samsung collaborated on LCD technology despite competing aggressively in consumer electronics, while major automotive manufacturers have historically collaborated on technology development while continuing to fight for the same customers in showrooms.

They did not collaborate because they suddenly stopped caring about market share. They collaborated because they recognised that certain challenges were better solved collectively.

There is an important distinction there for our industry.

Collaborating to grow a market does not mean you stop competing for your share of it.

Farmers understood this generations ago

Perhaps an even more interesting comparison can be found in agriculture.

Farmers are competitors. They produce similar products and ultimately need somebody to buy what they produce, yet agricultural cooperatives have existed in Britain for generations because farmers recognised that there were areas where acting collectively created advantages that none of them could achieve independently.

They pooled purchasing power, marketed produce collectively, shared services and infrastructure and created organisations capable of negotiating from a much stronger position.

Fram Farmers is one modern example. Its origins date back to 1960, when a small group of farmers recognised the benefits of pooling their purchasing requirements. Today the organisation supports more than 1,400 farming businesses with purchasing, crop marketing and administrative services.

What makes the comparison particularly interesting is that agriculture genuinely involves finite resources. There is only so much land, only so much produce and only so much of each year's harvest available to sell.

Fitness does not have that problem.

We have tens of millions of potential customers who are not currently members of our facilities, yet sometimes we behave as though the only available growth opportunity is taking a member from the club three miles down the road.

What if we changed the message?

Imagine five gyms operating in the same town. One is an independent strength facility, another is a budget gym, another is a full-service health club, another specialises in functional fitness and the fifth is a boutique studio.

Today, each might spend thousands of pounds communicating slightly different versions of the same messages: no joining fee, first month free, six weeks for £49, free trial, better equipment, cheaper membership or more classes.

Now imagine those same five businesses agreeing that, for one month each year, they would put their individual propositions to one side and collectively promote one message:

Let's Get Our Town Moving.

They could organise a community fitness weekend during which every participating facility opens its doors. The strength gym could introduce beginners to resistance training, the boutique studio could offer Pilates, the leisure centre could promote swimming, the functional facility could run beginner sessions and the health club could offer health assessments and education.

Nobody has to pretend their businesses are identical. In fact, the differences between them become an advantage because someone who hates the idea of a traditional gym might discover Pilates, swimming, small-group training or another activity they genuinely enjoy.

The message reaching the community would no longer be, "Our gym is better than theirs." It would be, "Being more active could improve your life, and somewhere in this community there is probably an option that works for you."

That is a very different conversation, and crucially it is aimed at people outside our existing market rather than simply those already inside it.

The commercial opportunity is enormous

There is an important commercial argument behind this as well as a social one.

The 2025 industry figures use a UK population of approximately 67.9 million when calculating market penetration. If the sector could collectively increase penetration by just five percentage points, moving from roughly 17% to 22%, that would represent approximately 3.4 million additional members.

At an average membership price of only £25 per month, those additional members would generate around £85 million of additional membership revenue every month, or more than £1 billion every year.

That is before personal training, small-group training, specialist programmes, food and drink, retail and every other form of secondary spend.

The point is not that every gym should suddenly abandon acquisition campaigns and launch a community initiative. The point is that the potential market available to us is vastly greater than the one we spend so much time fighting over.

There is an enormous harvest available. Perhaps we could spend slightly less time trying to take crops from the farm next door and a little more time cultivating land nobody is currently using.

What could collaboration actually look like?

It does not need to involve complicated agreements, national governing bodies or competitors sharing commercially sensitive information. There are relatively simple ways local operators could work together while remaining fiercely competitive businesses.

1. Joint community activity campaigns. Local clubs could collectively promote physical activity rather than individual memberships through initiatives such as a "Get Our Town Moving" month. Each operator could contribute activities suited to its own expertise while sharing the cost and reach of the wider campaign.

2. Coordinated open weekends. Imagine an annual fitness weekend where gyms, studios, leisure centres and other activity providers simultaneously open their doors. Residents could experience several different forms of exercise and find an environment that genuinely suits them rather than being sold whichever option happened to advertise to them first.

3. Inter-club events and competitions. Healthy rivalry can actually strengthen collaboration. Local fitness leagues, charity challenges, team competitions and community events allow members to represent their own clubs while collectively creating excitement and visibility around exercise.

4. Collaborative corporate wellbeing programmes. Rather than five facilities separately approaching the same employers, local operators could create a broader wellbeing proposition. Employees might gain access to different participating facilities, allowing them to choose between swimming, strength training, classes, Pilates, functional training or other activities.

5. Shared education, resources and initiatives. Independent clubs could collaborate on staff development, specialist speakers, recruitment initiatives, community education and even selected purchasing opportunities. None of those things prevents them competing aggressively when it comes to delivering the best member experience.

The principle is relatively straightforward: collaborate where collaboration grows the market, then compete on who delivers the best experience once people enter it.

Perhaps we are targeting the wrong competition

Some people will undoubtedly read this and think I am being naive or idealistic. Perhaps human nature simply makes this difficult. We are naturally protective of resources and suspicious of those competing for the same things we want.

That instinct made considerable sense when survival depended on access to limited food, shelter and territory. But we are not cavemen fighting over the last available watering hole, and the fitness industry is certainly not short of potential customers.

Perhaps the gym down the road isn't actually our biggest competitor.

Our competitors are inactivity, lack of confidence, poor understanding of exercise, previous negative experiences and the perception that gyms are places for people who are already fit.

Our competitor is the person sitting at home thinking, "A gym isn't for someone like me."

Those are problems that affect every operator, regardless of whether their membership costs £20 or £120 per month.

There are already businesses demonstrating what can happen when the industry looks beyond the traditional gym customer. Studio35, for example, has deliberately developed a proposition aimed at people who often do not identify with conventional gyms. Rather than simply building another facility aimed at people already engaged with fitness, its model seeks to make structured exercise accessible to a different demographic.

That is interesting because it represents genuine category growth. It creates another customer rather than simply moving an existing one from one provider to another.

We need to grow the category

Most successful industries understand that there are two battles taking place simultaneously. Individual businesses compete for market share, but the industry as a whole also needs consumers to want the category in the first place.

Fitness has an extraordinary proposition.

We can help people become stronger, healthier and more confident. We can reduce isolation, create communities and help people remain independent for longer as they age. We can improve physical and mental wellbeing and, at our very best, genuinely change people's lives.

Yet collectively we sometimes manage to reduce that proposition to "No joining fee this weekend."

Perhaps that is where the mindset needs to change.

I am not advocating the end of competition. I want ambitious operators to compete, innovate, raise standards and build brilliant businesses. Black Raccoon exists because we believe businesses should grow, become more profitable and perform better.

But I also believe there is a bigger opportunity sitting in front of us.

If 83% of the population is outside our current market, our industry's greatest opportunity cannot simply be persuading somebody to cancel their membership at Gym A and move to Gym B.

We need to understand why millions of people haven't joined either of them.

And perhaps some of those barriers are simply too large for individual operators to tackle alone.

Compete for market share, absolutely. But collaborate to grow the market itself.

Because sometimes the smartest way to get a bigger piece of the pie isn't to steal somebody else's slice.

It's to work together to bake a much bigger pie.

Are Freelance Personal Trainers Limiting Your Gym's Potential?

 

Are Freelance Personal Trainers Limiting Your Gym's Potential?

Or have we unintentionally given away one of our biggest commercial opportunities?

Over the past decade, one of the biggest shifts within the fitness industry hasn't been technology, AI, budget gyms or even changes in consumer behaviour. It's been the move away from employed personal trainers towards freelance models. Walk into most commercial gyms today and you'll find trainers running their own businesses, paying rent to the club and operating independently rather than being employed members of the team.

It's easy to understand why this happened. From an operator's perspective, the freelance model removes a significant amount of financial risk. Payroll costs reduce, rental income becomes predictable and management responsibilities become much simpler because trainers are effectively responsible for building their own client base. Particularly following COVID, many operators understandably looked for ways to reduce fixed costs and create more certainty within their businesses.

On the surface, it seems like a sensible commercial decision. However, the more I look at the numbers and the more clubs I work with, the more I wonder whether we've unintentionally given away one of the biggest revenue opportunities available to us.

Let's take a fairly typical example. Imagine you have six freelance personal trainers, each paying £400 per month in rent. That's £2,400 of guaranteed monthly income for the club. Now imagine those same trainers each average around £3,500 per month in personal training revenue, which I'd suggest is a realistic figure for an established trainer. Collectively they're generating around £21,000 every month, yet the club still receives just £2,400.

Now before anyone thinks I'm suggesting trainers shouldn't earn good money, let me be clear. Great coaches absolutely deserve to be rewarded. Personal training is a profession that changes lives, and successful trainers should enjoy the financial rewards that come with delivering excellent results. However, it's worth asking one important question. Who created the opportunity in the first place?

The club invested in the building, the equipment, the marketing, the membership base, the reception team, the utilities, the cleaning, the maintenance and everything else required to attract members through the door. Without that investment there wouldn't be a platform for the trainer to build their business. Yet once the monthly rent has been paid, the overwhelming majority of the commercial upside belongs to somebody else.

This is where I believe many operators unknowingly cap their own earning potential. Once every available PT space has been rented out, income effectively stops growing. If one of your trainers doubles their client base, builds a waiting list or becomes one of the best coaches in the area, that's fantastic for them, but it doesn't materially change the club's income. Imagine applying that same logic to memberships. Imagine telling your sales team that once they've sold a certain number of memberships, every additional sale belongs entirely to them. It sounds absurd, yet that's effectively the commercial model many gyms have accepted for personal training.

The bigger issue, though, isn't actually revenue. For me, the real opportunity lies in retention.

Too many clubs still view personal training as a secondary income stream when, in reality, it should be viewed as one of the most powerful retention tools available. Members who engage with coaching attend more frequently, achieve better results, build stronger relationships with staff and become significantly more invested in their fitness journey. As a result, they're less likely to cancel their membership and far more likely to recommend the club to others. Personal training doesn't simply generate coaching income. It protects recurring membership revenue as well.

There's another consideration that often gets overlooked, and that's ownership of the customer relationship. When a member achieves an incredible transformation, they rarely tell their friends how fantastic the gym is. They tell them how amazing their personal trainer is. Their loyalty sits with the individual rather than the business. If that trainer leaves, there's a very good chance the client leaves with them. From the club's perspective, you've lost both the trainer and the member in one go.

An employed coaching model changes that dynamic. The trainer still deserves recognition, but their success becomes the club's success too. Every transformation reinforces the reputation of the business rather than strengthening an independent brand operating within it.

Consistency is another area where employed teams often have a significant advantage. Every operator knows that not all freelance trainers are the same. Some are exceptional ambassadors who fully embrace the club culture and contribute far beyond their paying clients. Others simply arrive, train their sessions and leave. Standards vary, consultation processes differ, communication styles are inconsistent and member experiences can become fragmented. When coaching sits within the business, the club owns the systems, the standards and the customer journey, making it far easier to deliver a consistent experience regardless of which coach a member works with.

Marketing also becomes much more straightforward. Clubs rarely invest heavily in promoting freelance personal trainers because, ultimately, every additional client benefits somebody else's business. When coaching belongs to the club, however, transformation stories, specialist programmes, weight-loss packages, strength coaching and Small Group Personal Training suddenly become products worth promoting because every sale contributes directly to the profitability of the business.

Small Group Personal Training is perhaps the biggest opportunity of all. Rather than selling one hour to one person, you're selling one hour to four, six or even eight members. Clients still receive expert coaching, trainers earn excellent money and the club significantly improves its margins. Introducing these types of products is often much easier when coaching is controlled by the business rather than several independent operators with different commercial priorities.

Of course, the obvious counterargument is risk. Employing personal trainers carries payroll costs and there are no guarantees they'll build successful client bases. That's a perfectly reasonable concern, but I don't believe the choice has to be so black and white. Many clubs successfully recruit fitness instructors with the ambition of developing them into full-time coaches. While they're growing their PT business they can teach classes, deliver inductions, support gym-floor coaching, carry out programme reviews, make retention calls, assist the sales team and contribute to the wider operation. In other words, you're not simply employing a personal trainer. You're employing somebody whose role is to improve every stage of the member journey while building a profitable coaching business over time.

I've seen just how powerful this can be. During my time at Holmes Place we regularly generated around £50,000 per month in personal training revenue. Yes, it was a large 8,000-member club, but it demonstrated what was possible when coaching formed part of the club's overall business strategy. Later, at Fitness Space, around 40% of total club revenue came from a combination of one-to-one and Small Group Personal Training. Almost half of the business wasn't being driven by memberships. It was being driven by coaching.

I'm certainly not suggesting the freelance model is wrong. There are outstanding freelance personal trainers who build incredible businesses, deliver life-changing results and become fantastic ambassadors for the clubs they operate within. For some operators, it remains the right commercial decision. However, I do think we've reached a point where it's worth asking ourselves whether we've accepted the model simply because it reduced short-term financial risk, without fully considering the long-term opportunity cost.

Perhaps the question isn't whether freelance personal training works. Perhaps the real question is whether it's helping your business reach its full potential. Because if coaching can become one of your largest revenue streams, one of your strongest retention tools, one of your most effective marketing assets and one of the biggest drivers of member success, then maybe it's time to ask whether it should remain somebody else's business, or become one of your own greatest strengths

How Do You Tackle a New Budget Gym Opening in Your Area?

 

How Do You Tackle a New Budget Gym Opening in Your Area?

It's no secret that I'm not a fan of the large budget gym chains.

Now, before anyone jumps on me, let me explain why.

From a business perspective, many of them are incredibly successful. They've built scalable models that generate huge membership numbers and, from an investor's point of view, they can be very attractive businesses. I completely understand why they exist and why investors continue to back them.

What I don't believe is that they're particularly good for the fitness industry as a whole.

Their objective isn't simply to open another gym. Their objective is to dominate a market by offering a price that many competitors simply cannot match. The hope is that enough members move across, weaker competitors disappear and, over time, they become the obvious choice in that area.

Over the years I've seen some questionable tactics. Advertising vans parked directly outside independent gyms, promotional material finding its way into competitors' clubs and introductory pricing that's so heavily discounted it almost certainly isn't profitable. They can afford to do that because they're backed by significant investment and have the financial strength to absorb losses while they build market share.

Take PureGym as an example. The business reportedly carries around £850 million of debt, yet very few people talk about that. Instead, they're regularly held up as the benchmark for success. It demonstrates the scale these operators are working at and why trying to beat them at their own game is almost impossible for an independent operator.

Personally, I also believe they contribute less to the local economy than many independent clubs. Independent gym owners employ local people, work with local suppliers, sponsor local sports teams and keep much of the money circulating within their own communities. Large national chains inevitably operate very differently.

That said, this article isn't about criticising budget gyms.

They're here, they're expanding and they're not going away.

The question every independent owner, franchise operator and hotel leisure club should be asking is this:

What do you do when one opens on your doorstep?

The first thing I'd say is that if a budget gym opening nearby suddenly forces you to rethink your entire business model, you've probably got bigger issues than the new competitor.

A well-run gym shouldn't panic because another operator arrives. If you're already delivering an outstanding member experience, creating genuine value, helping people achieve results and building a community that members genuinely enjoy being part of, you've already created something that a budget operator will struggle to replicate.

One thing owners often forget is that many of their existing members could already have joined a cheaper gym before they joined yours.

They didn't.

They chose you.

The obvious question is why.

It probably wasn't because your treadmills were newer or because your membership was cheaper. More often than not it's because they felt welcomed, supported and part of something bigger than simply somewhere to exercise.

That's why I believe community has become one of the most valuable assets any gym can build.

The clubs that tend to suffer most when a budget operator arrives are often those that already behave like one. Members come in, train and leave without speaking to anyone. Staff stay behind reception. Very little coaching takes place. Communication is poor, onboarding is inconsistent and nobody really knows why members joined in the first place.

When members don't feel connected to your business, leaving doesn't feel emotional.

It's simply a financial decision.

Human nature actually works in your favour more than many owners realise. Most people don't enjoy change. They like familiarity. They know where everything is, they know the staff, they know other members and they've built routines around your business. People generally don't wake up wanting to move gyms.

The problem comes when they're no longer excited about where they are.

It's a bit like a relationship. Most people don't actively look for someone else when they're happy. They start looking when something is missing and someone new comes along offering something different.

That's why defending your business against a budget gym doesn't start six weeks before they open.

It starts years beforehand.

If your members genuinely enjoy being part of your club, they'll think long and hard before leaving over £20 or £30 a month.

So what should owners be focusing on?

Firstly, train your team to serve, not simply supervise. It still amazes me how many gyms fail to acknowledge members properly or have staff who spend more time talking to each other than engaging with clients. Every interaction either strengthens or weakens your relationship with a member, and over time those small moments become incredibly important.

Secondly, fix your systems. Most gyms don't lose members because their equipment is poor. They lose them because the member experience is inconsistent. Too many clubs still have little or no structured onboarding process, poor follow-up after someone joins, limited communication and almost no understanding of what success actually looks like for individual members. We're in the results business. If we don't know what success means to the client, how can we possibly help them achieve it?

Community should also become a priority. Encourage members to try classes they wouldn't normally attend. Organise social events, charity challenges or club competitions. Find ways for members to meet each other because friendships are one of the strongest retention tools available. People who have relationships within a gym are significantly less likely to leave because they're no longer just paying for access to equipment. They're paying to spend time with people they enjoy being around.

It's equally important to reward loyalty. Celebrate attendance milestones, recognise long-standing members and make people feel appreciated. Whether it's a T-shirt after 100 visits, a branded water bottle after 250 sessions or simply acknowledging anniversaries, small gestures reinforce that members matter.

Another area that many clubs overlook is understanding their own demographic. If you know exactly who your members are, why they joined and what motivates them, you can build a business that appeals even more strongly to similar people. The more closely aligned your community becomes, the stronger it naturally grows.

Marketing should never stop either. One of the biggest mistakes I see is clubs cutting marketing until a budget operator announces they're opening. By then it's too late. These businesses have marketing budgets that most independents simply cannot compete with. You won't outspend them, but you can out-connect them. Keep telling your story, keep showcasing your members and keep reminding your local community why you're different.

Finally, if a budget gym does arrive, be realistic.

Even well-run clubs often lose members initially. It can be 10%, 15% or even 25% depending on the market. That's difficult to hear, but it's far better to prepare for it than pretend it won't happen. The good news is that many of those members return once the novelty wears off and they realise that cheaper doesn't always mean better. However, you'll almost certainly need to increase your marketing activity and spend more time out in the community. Visit local businesses, attend networking events, support charities and build partnerships because visibility matters more than ever during that period.

Ultimately, you have to remember one thing.

You are never going to beat a budget operator on price, and you shouldn't waste your energy trying.

Instead, beat them where they can't compete.

Know your members by name. Celebrate their successes. Build friendships. Deliver outstanding service. Create a genuine sense of belonging and make your club somewhere people look forward to visiting.

Equipment can be copied.

Prices can be lowered.

Buildings can be replicated.

A great community can't.

And in my experience, that's exactly why the best independent gyms continue to thrive, even when a budget chain opens just down the road.

 

What Would Happen If You Paid Your Staff More?

Here's a question that I suspect will divide opinion amongst business owners.

What do you think would happen if you increased your team's pay by 10% tomorrow?

For many, the response will be immediate.

"We can't afford it."

"We already pay the minimum wage because that's all the business can sustain."

"Paying people more doesn't mean they'll suddenly work harder."

They're all perfectly reasonable arguments. Wages are one of the biggest costs in almost every fitness business, and increasing them without a guaranteed return feels like a huge risk. However, I wonder if we're asking ourselves the wrong question.

Rather than asking whether we can afford to pay people more, perhaps we should be asking whether we can afford not to.

One of the most famous examples of challenging conventional thinking came from Dan Price, CEO of Gravity Payments in the United States. Back in 2015, he announced that the minimum salary within his company would increase to $70,000 a year.

The reaction was exactly what you'd expect. Critics said it would destroy the business, profits would disappear and employees would inevitably take advantage of the situation.

Instead, the opposite appeared to happen.

Over the following few years, Gravity Payments reported that revenue tripled, its customer base doubled, profits increased significantly and staff retention improved dramatically. Employees were also buying homes at far higher rates than before, something many attributed to the improved financial security they now enjoyed.

Now, before anyone points it out, I'm not suggesting every gym owner should suddenly start paying everyone £70,000 a year.

What I am suggesting is that perhaps we underestimate the commercial value of making people feel genuinely valued.

Let's be honest. People go to work for many reasons. They want to enjoy what they do, work with good people and feel proud of the company they represent. However, the primary reason most people go to work is to earn money. It's what allows them to pay the mortgage, support their family and enjoy life outside of work.

So why are we surprised when a good employee leaves for another employer offering an extra pound an hour?

Perhaps we need to think differently.

Instead of promising future rewards if targets are achieved, what if we invested in our team first? What if we demonstrated trust by saying, "We believe in you enough to increase your earnings, and in return we'd like you to help us grow the business."

I'm not necessarily talking about a permanent pay rise. Personally, I quite like the idea of introducing a structured six-month performance bonus linked to clearly defined business objectives.

The important difference is that the investment comes first.

Psychologically, that's incredibly powerful. Instead of asking staff to prove themselves before they're rewarded, you're demonstrating that you value them from day one. In return, you're asking them to help build something bigger.

Let's look at some simple maths.

For a full-time employee on minimum wage, a 10% increase would cost approximately £260 per month once National Insurance and pension contributions are included. Obviously, every business is different, and if your total wage bill is £10,000 a month then you're looking at around a £1,000 monthly increase.

That sounds expensive until you compare it with the cost of replacing good people.

Recruitment isn't cheap. Training takes time. New starters are rarely as productive in their first few months, member experience often suffers and management spends countless hours interviewing, onboarding and supporting new employees.

Retention isn't just important for members.

It's equally important for staff.

What if that additional investment resulted in a happier team? What if staff became more engaged with members, sold more memberships, retained more clients and genuinely took greater pride in the business?

Would the investment suddenly seem worthwhile?

I think it probably would.

Of course, there will always be concerns about paying more to people who don't deserve it. That's a fair point, but I'd argue that if someone still isn't performing after you've invested in them, trained them and given them every opportunity to succeed, then you simply manage their performance as you normally would.

The bigger picture is that your best employees notice these things.

Great people want to work for employers who value them. When you create a culture where success is shared, high performers tend to raise the standards of everyone around them. Those who aren't prepared to contribute either improve or naturally move on.

That's exactly the kind of culture most businesses are trying to build.

I can already imagine HR professionals reading this and shaking their heads. I'm not saying this approach is suitable for every business, and I'm certainly not suggesting owners should put themselves under financial pressure they can't sustain.

What I am saying is that there may be another way of thinking about pay.

Imagine agreeing a six-month performance bonus linked to measurable business growth. If the business grows by 5%, perhaps the bonus continues for another six months. If growth reaches 15% or 20%, perhaps the team shares even more of the success they helped create.

Instead of wages simply being another overhead, they become an investment in the people responsible for driving your business forward.

It's undoubtedly a brave approach because the employer takes the first step. You're investing before asking for results, not the other way around. However, that's exactly what leaders do. They create belief first and performance often follows.

Would it work in every business?

Probably not.

Could it transform the right business with the right team?

I genuinely think it could.

So here's my question.

If you knew that investing an extra 10% in your team today could significantly improve morale, retention, sales and business performance over the next six months, would you be brave enough to try it?

I'd love to hear your thoughts because I suspect this is one of those ideas that people will either love... or completely disagree with.

Entrepreneurship, Stress and Why Success Means Nothing Without Your Health

 

There is a romanticised view of entrepreneurship that often dominates social media, business podcasts and networking events. We see the success stories, the growth, the new offices, the client wins and the financial rewards. We hear people talk about freedom, flexibility and being their own boss. Whilst all of those things can be true, they only tell part of the story.

The reality is that entrepreneurship can be one of the most rewarding journeys a person can undertake, but it can also be one of the most stressful.

When you own a business, there is no switch that turns off at the end of the day. The responsibility follows you everywhere. It sits with you when you wake up in the morning and often remains with you long after everyone else has gone to bed. The decisions you make affect not only your own future but also your staff, your clients, your suppliers and, in many cases, your family.

Over the years I have come to realise that entrepreneurship is not really about building a business. Building the business is the easy bit. The difficult part is managing yourself whilst doing it.

This year has reinforced that lesson more than any other period of my life.

Like many entrepreneurs, I have always believed that hard work solves most problems. If sales slow down, work harder. If a client needs support, work harder. If a project starts drifting off course, work harder. Throughout my career I have never been afraid of putting the hours in. Eighteen-hour days do not scare me. Early mornings and late nights have simply been part of the journey.

That mindset has undoubtedly helped me build businesses and overcome challenges. However, this year I was reminded that there are some things that hard work alone cannot fix.

Alongside running Black Raccoon Consulting, I found myself dealing with a cancer diagnosis and an ongoing battle with chronic fatigue. Neither of those things cared about my calendar, my business plans or my client commitments. They arrived regardless and forced me to confront something that I suspect many entrepreneurs quietly ignore.

We are not indestructible.

For years I had treated my own health as something that would fit around the business. Exercise would happen when I had time. Rest would happen when the work was done. Holidays would happen once things had calmed down.

The problem is that things never calm down.

There is always another project, another client, another opportunity, another challenge and another problem to solve. If you wait for the perfect moment to prioritise yourself, that moment never arrives.

What I learned this year is that your health cannot sit behind your business in the priority list.

It has to sit above it.

That may sound selfish to some people, but it is actually the opposite. The healthier you are physically and mentally, the more capable you are of supporting everyone around you. Your family benefits. Your team benefits. Your clients benefit. Your business benefits.

The mistake many entrepreneurs make is believing they are the business.

I know because I have done exactly the same thing.

When things become difficult, our instinct is often to take more responsibility. We work longer hours, involve ourselves in more decisions and carry more weight on our shoulders. It feels productive, but in reality it often creates a dangerous cycle where the business becomes increasingly dependent on one person.

If that person becomes ill, exhausted or overwhelmed, everything begins to suffer.

One of the reasons I decided to bring Russell into the business was not simply because I believed he could help us grow, although that is certainly true. It was also because I recognised the importance of sharing responsibility.

Entrepreneurs often talk about scaling their businesses, but very few talk about scaling the pressure.

For years, every challenge, every major decision and every responsibility sat with me. Whilst I was fortunate to have fantastic people around me, the reality was that the burden of ownership was largely mine to carry.

Bringing Russell into the business changed that.

Not because it removed challenges, but because it created somebody to share them with. Somebody who understands the industry, understands the business and understands the pressures that come with ownership. There is enormous value in having somebody who can challenge your thinking, offer perspective and, perhaps most importantly, help carry the load when things become difficult.

Entrepreneurship can be an incredibly lonely place. We often surround ourselves with people who see the successful version of us, whilst quietly dealing with concerns around cash flow, staffing, economic uncertainty and growth behind closed doors.

Having someone you trust to share that journey with is more valuable than most entrepreneurs realise.

One of the greatest sources of stress for business owners is the sheer number of things that sit outside our control. Economic downturns, interest rates, government policy, changing consumer behaviour and industry disruption all have the ability to influence our businesses. We spend countless hours worrying about these factors despite having little or no ability to change them.

As I have got older, I have become increasingly convinced that one of the keys to managing stress is learning the difference between what you can control and what you cannot.

You cannot control the economy.

You cannot control government decisions.

You cannot control what competitors do.

You cannot control whether a client decides to cancel.

What you can control is how you respond.

You can control your standards. You can control your effort. You can control the quality of your service. You can control your willingness to adapt. You can control the relationships you build and the culture you create.

When you focus your energy on those areas, stress becomes far easier to manage because your efforts are directed towards things that can actually create change.

Another lesson I have learned is that success has a habit of moving the goalposts.

Many entrepreneurs convince themselves that they will slow down once they reach a particular milestone. It might be a revenue target, a new site, a certain number of clients or a specific lifestyle goal.

The problem is that when we reach those milestones, we often replace them with new ones.

The target moves.

The pressure remains.

The hours stay long.

The balance never arrives.

That is why I no longer believe balance is something you achieve once the business becomes successful. I think it is something you deliberately create throughout the journey.

Making time for exercise is not a reward for success.

Spending time with your family is not something that should happen once the work is finished.

Taking holidays is not a luxury.

Protecting your mental health is not optional.

These things are essential parts of building a sustainable life and a sustainable business.

The irony is that many entrepreneurs work incredibly hard to create a better future for themselves and their families whilst simultaneously sacrificing the very things that future is supposed to provide.

We miss family moments.

We neglect friendships.

We ignore our health.

We delay happiness until some future date that may never arrive.

Cancer and chronic fatigue have a way of changing your perspective on that.

They force you to ask questions that perhaps you should have asked years earlier.

What is success actually for?

What are we building?

What matters most?

What would happen if everything stopped tomorrow?

For me, the answer has become increasingly clear.

Success is not simply about revenue, growth or profitability. Those things are important, but they are not the whole picture.

Success is being healthy enough to enjoy what you have built.

Success is having the energy to spend time with the people who matter most.

Success is building a business that supports your life rather than consumes it.

Success is recognising that whilst your business is important, it is not more important than you.

If there is one lesson I would share with fellow entrepreneurs, it is this.

Look after yourself first.

Not because the business does not matter, but because it does.

Your business needs you at your best.

Your team needs you at your best.

Your family needs you at your best.

And you cannot give your best to anyone if you are running on empty.

The business can survive a difficult month. It can survive a difficult year. It can survive setbacks, mistakes and challenges.

Sometimes, however, recovering yourself is much harder.

That is a lesson I wish I had understood earlier, but one I will carry with me for the rest of my entrepreneurial journey.