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.

 

Is It Really Our Responsibility to Improve the Nation's Health?

There is, and always has been, a great deal of discussion within the fitness industry about the role we should play in improving the nation's health. It's one of those debates that resurfaces every few months, often triggered by a new government initiative, an industry report, concerns about NHS pressures, or yet another statistic highlighting rising obesity levels.

Over the years, I've had countless conversations about this topic. Some have been thoughtful and constructive, others more heated, but they almost always start from the same assumption: that the fitness industry has a responsibility to improve public health.

Until recently, I largely accepted that argument without questioning it too deeply. After all, we're in the fitness industry. Helping people become healthier is what we do, isn't it?

Then something struck me the other day that made me pause and reconsider the entire premise.

Is it actually our responsibility to improve the nation's health?

Or is our responsibility simply to run successful businesses that provide products and services people want to buy?

At first glance, that might sound like a cynical question. However, the more I thought about it, the more I realised that the answer isn't nearly as straightforward as many of us would like to believe.

The story that came to mind was that of Michelin. Today, Michelin is synonymous with restaurant ratings and fine dining. A Michelin Star can transform a restaurant's fortunes overnight and has become one of the most respected accolades in the hospitality industry. What many people don't realise, however, is that Michelin never set out to improve restaurants.

Michelin wanted to sell tyres.

In the early days of motoring, there simply weren't enough people driving. The company recognised that if it could encourage people to travel further and more often, they would wear out their tyres more quickly and need replacements. The Michelin Guide was born as a way of encouraging travel, promoting destinations and helping motorists find places to eat and stay.

The outcome was extraordinary. Restaurants benefited, standards improved and an entire industry evolved around the guide. Yet none of that was the primary objective. The objective was to sell more tyres.

That got me wondering whether our industry has fallen into a similar trap.

Because if we're honest, we are businesses first and foremost. We employ people, pay rent, manage cash flow, market our services and compete for customers. Like every other commercial sector, we need revenue, profit and sustainability if we're going to survive.

The fact that the service we provide happens to improve people's health is undoubtedly a wonderful thing. In fact, it's one of the reasons I have remained passionate about this industry for almost three decades. There aren't many sectors that can genuinely claim to improve both quality of life and longevity. We can.

That is something we should be incredibly proud of.

However, I increasingly question whether we should be positioning ourselves as the primary solution to the nation's health problems.

The obesity crisis is often cited as evidence that we should be doing more. Yet when we look objectively at the factors driving obesity, inactivity is only part of the story. Modern diets, highly processed foods, sugar consumption, sedentary lifestyles, urban planning, education and social behaviours all play significant roles.

The food industry, in particular, has had an enormous influence on public health outcomes. Entire product categories are engineered to maximise taste, convenience and repeat purchases. Consumers are surrounded by highly processed options that are often cheaper, more accessible and more heavily marketed than healthier alternatives.

Yet despite this, we rarely see the same expectation placed upon food manufacturers to solve the nation's health problems.

Instead, the responsibility often seems to find its way back to fitness operators.

We're expected to reduce obesity.

We're expected to relieve pressure on the NHS.

We're expected to improve national wellbeing.

We're expected to become a key pillar of public health policy.

It's a tremendous burden to place upon an industry that still struggles to engage the majority of the population.

Perhaps that is why I've started to wonder whether we are approaching the challenge from the wrong direction.

What if our focus shouldn't be on convincing people that exercise is good for them?

After all, most people already know that.

I've never met anyone who genuinely believes that sitting on the sofa all day is healthier than exercising. Most people understand the benefits of movement. They know exercise can help them lose weight, improve fitness, reduce stress and enhance their quality of life.

Knowledge is not the problem.

Engagement is.

The real challenge facing our industry isn't educating people about exercise. It's creating experiences that make them want to participate.

When consumers join our facilities, they are rarely buying health. They're buying confidence. They're buying enjoyment. They're buying community. They're buying friendship, motivation, entertainment, achievement and belonging. they they may come in with a fat loss aim or similar, but lets be honest with ourselves, if they dont enjoy it, feel part of something or feel motivated the fat loass aim wont keep them coming, so with that in mind is it really why they attend?

They want somewhere they feel comfortable.

They want somewhere they enjoy visiting.

They want an experience that makes them feel good about themselves.

In many ways, we're closer to hospitality than healthcare.

Nobody visits a restaurant because they're excited about the nutritional composition of the menu. They go because they want an enjoyable experience. The food is important, but the experience is what drives repeat visits.

The same principle applies to fitness.

People don't return because we've reminded them about obesity statistics. They return because they enjoyed themselves. They felt welcomed. They achieved something. They connected with others. They felt part of something bigger than themselves.

This is where I believe our industry sometimes takes itself too seriously.

We spend enormous amounts of time discussing our role in public health, yet perhaps we'd achieve more by focusing on creating experiences people genuinely love.

Because if we can make exercise enjoyable, people will do more of it.

If more people do it, they'll become healthier.

If they become healthier, society benefits.

The difference is that health becomes the outcome rather than the pitch.

One of the most fascinating examples of this in recent years has been Hyrox. Whether you personally love it or hate it is irrelevant. What Hyrox has achieved is remarkable because it understood something fundamental about human behaviour.

It didn't sell exercise.

It sold challenge.

It sold achievement.

It sold identity.

It sold community.

People train for Hyrox because it gives them a purpose beyond simply being fitter. The fitness is almost a by-product of the experience.

That raises an important question for the rest of us.

How do we create similar levels of engagement for the average person?

Not the athlete.

Not the fitness enthusiast.

Not the person already obsessed with training.

The average person who simply wants to feel better, look better and enjoy life.

How do we make movement something people genuinely look forward to?

How do we create environments that are welcoming rather than intimidating?

How do we build products that feel exciting rather than obligatory?

Because if we can answer those questions, I suspect we'll do far more for the nation's health than any awareness campaign ever could.

After nearly thirty years in this industry, I remain incredibly optimistic about what fitness can achieve. I just think we've become slightly distracted by trying to position ourselves as the solution to every public health challenge.

The reality is that we won't solve obesity on our own. We won't transform the NHS. We won't single-handedly make the nation healthier.

What we can do is create businesses that people love. We can provide experiences that inspire movement. We can build communities that support positive habits. We can help people feel stronger, happier and more confident.

And perhaps, in doing so, we'll improve the nation's health anyway.

Not because we set out to save it, but because we became exceptionally good at giving people something they genuinely wanted.