This month we sat down with Frank Ancharski, M.S., the Founder and Chief Coaching Officer for Club Coach Services, to discuss financial planning strategies.
How can clubs grow "post-shutdown" ancillary revenues?
First and foremost, we cannot give up on those members whose fear factor outweighs the preventative and now increasingly important socializing/mental health benefits provided by clubs because of our COVID-19 isolation. Secondly, offer friendly and innovative billing options. A digital exercise solution is crucial for survivability and finding a way to monetize it while working out more friendly and flexible billing options for frozen, existing, and the new "digital-only" membership.
What have you learned regarding financial management during this period?
Be more marketing/revenue driven than operationally fearful. What I have learned is we are not reaching enough people, we make it too hard to join, and we are not forgiving enough in relation to fees, policies, and membership restrictions. There must be a reason we have only 16 to 20% penetration for club membership in the U.S.
One piece of advice for financial planning?
Save for a rainy day. Whether it be a result of improved occupancy costs from landlords and banks, improved efficiencies in labor distribution, or removal of unprofitable programs, the coronavirus pandemic has forced us to tighten our belts to survive. By my calculation, saving 20 nickels still makes up a dollar.
Three reasons clubs should be optimistic about the financial future:
- The industry's collective resilience and determination. I have seen and participated firsthand in our industry's inherent ability and thirst to connect with each other.
- People. The Successful Strategies for Shaping your Future webinar series hosted by Club Solutions Magazine, IHRSA, and REX Roundtables, among so many other colleagues, were beacons of light during these unprecedented times.
- Virtual connections. Zoom has become a verb and it will be a new tool in the toolbox to remain engaged with our teams more effectively and efficiently.