Working Smart In Challenging Times For Gyms

Working smart in challenging times seems to be the secret sauce of the REX Roundtable Members in over the past 2 years and their number 1 2023 resolution.

When we collected data, as of the end of 2021, the recovery rate of North American REX Members was 81.93%. Before doing this, had you asked me anecdotally , I would have said 60 to 80% was the range, not the average.

Because of the culture of continuous learning and challenging each other to get better, many of the REX Members have followed several of Ram Charan’s “rules”. (Ram Charan is the most influential consultant alive, and counsel to the top companies, CEOs, and boards of our time.) Here are just a few for you to think about and see how quickly you can implement these:

  • Keep Investing in new products, service development and renovation. Most importantly, continue to invest in your brand! The more disciplined leader, who invests in the future now has a chance to really make huge gains on competitors.
  • Invest in your people. Reward them, not just with money but with recognition, as they face new challenges. Most of your team are now doing three the work they did just 2 years ago.
  • Communicate frequently, intensively and honestly. They will appreciate your candor as you seek their input to address difficult times.
  • In good times, you manage P&L and in tough times you manage cash and receivables, so focus on these!
  • Seriously consider how you can take the pain of your members if they are experiencing financial distress and may choose to reduce their involvement with your club. What kind of recession programs can you offer them that will help reduce financial pressure on their budgets?  Even if this does not make a huge difference, the intention to help and the care that is expressed in such intentions can have a beneficial impact on customer loyalty when they are choosing what they may have to cut out of their budget.
  • Cut back and prune selectively. Do not use across the board budget cuts to balance your budget.  Look at those things that your business is doing that have low benefits and high costs to you.  Which products or programs or services are more expensive than others?  Cut them back and take the saved money and time to invest in those parts of the organization that seem a bit stronger at this point.

Bring your key thinkers together.

The research shows over and over again when a strong group of people think through their reactions to a high-stressed situation, they are much more likely to survive it successfully.

This is a huge advantage for every REX Member.