Everyone should have an idea about where they want to be in 1 year, 5 years, 10 years, etc. Whether it is a passion project, an invention, or something you really think would make life easier, these ideas can change your life. But what holds us back from the pursuit? The most common answer I hear is the fear of failure. What if I cant make it? What if no one buys my products? What if I run out of money? These are all valid questions and objections, but to think on the other side- what if you see success? How would your life look?
I pose this anecdote because this is the conversation I have with many individuals who approach me about running their own personal training business. When the pandemic of 2020 hit, all gyms in Iowa were shut down for nearly 12 weeks. Once they were re-opened, there were still many protocols in place that hindered access to health and fitness equipment. For the betterment of my clients, I made the tough decision to start my own business, Nick Fey Fitness, LLC. I started with two kettlebells, a set of #15 dumbbells, an ab mat, and a dream of spreading health and fitness all around the United States in a safe and easy-to-access way.
To be frank, business took off pretty well. By the end of 2021 I had over 100 clients in 10 states. I utilized online methods for remote personal training sessions and exercise programs while also traveling upwards of 80 miles for clients all around Iowa. Every day I was learning something new about what clients liked and how to optimize my business model. Additionally, I become very proficient with media, marketing, small business tax requirements, insurances, and more! Owning Nick Fey Fitness, LLC was one of the scariest yet exciting times of my life. Ultimately in May of 2022 I made the difficult decision to cease operations and return to training at a large gym- with no regrets in my mind. I love my current job and my employer, Life Time, while I also value the experiences I gained through small business ownership that I think provides me a unique perspective of the business. My business didn’t fail, but rather I weighed the pros and cons of where I wanted my career to take me- all which has made me a better fitness professional in the end. So, the question is: which option is best for you?
Pros:
1.) It’s All on You. I loved running my business because I could make all the decisions. There was no corporate ladder or red tape to get something done. If I wanted a new treadmill, I would just consult with my accountant and purchase it. If I wanted to add a new product, I could test-run it right away. You are in charge of your own destiny, and I think that is the wonderful part of entrepreneurship that can open up many doors.
2.) Time, Schedule, Freedom. You’re the boss! You can work when you want to, adjust your schedule to how you please, and if you want to get off early on Fridays to golf you can! The freedom of choice with how you spend your time was very liberating because you are not bogged down with a specific set time schedule.
3.) Growth. In the grand scheme of things, a business model needs continuous adaptation which typically involves growth. You can move into a larger space, add more employees, or partner up with other individuals to provide more services. Personally, I enjoyed the challenge of knowing that if I am successful, I could take my business from just a few dumbbells in a garage to something much larger and nationwide.
Cons:
1.) It’s All on You. Funny how this can be a pro and a con, right? Unless you have a business partner, all decisions, actions, and incentives are your responsibility. You have to create an ever-adapting business plan to meet the needs of potential customers and existing clients. This includes services, pricing, revenue collection, and all undulations that can occur through the year. Additionally, for personal training, all revenue is based on the amount of service you facilitate. Generally speaking, if you aren’t working, you are not making money. There is a certain “ceiling” that can occur since there are only one of you and finite hours in the day.
2.) Lead Generation. Compared to a gym where you have existing members to provide services to, when you are on your own you must gather your own business. This included the use of Google Business, getting a website, social media, referrals, and more. For trainers who already have a reputation, this may not be as large of an obstacle, however, it is important to understand before going on your own. I teach all trainers that they must never stop lead generating, even if their business is full because you never know when things may drop off. When you are running your own business, if things slow down for multiple months, this could make-or-break your company.
3.) Tax, Insurance, Risk, Benefits. This category is the most important, in my opinion, because the implications could affect your personal life as well. To start, I advise everyone to seek the help of a CPA, Lawyer, and Insurance agent to help handle these areas based on your business model. You will need to form a legal business entity (typically an LLC), start a business bank account, and prepare your tax plan for the year so you don’t get hit with a high tax bill in Q4. Additionally, you will need to have liability and risk measurements in place since there are dangers to fitness instruction. Depending on your location, equipment involved, and services provided, you will need an insurance plan to cover your bases. Utilize a lawyer for your waivers and business transaction contracts so you are legally covered for any liability that may occur and payment processing. Lastly, you need to think about personal benefits needed such as medical insurance and retirement funds. Generally speaking, these can be more expensive plans to hold individually rather than if you would for a larger company.
The Fine Print
If you are someone thinking of going on your own, my first step when advising others is to write up your full business plan. This includes locations, target clients, service descriptions, pricing, expenses, and revenue needs. Business plans should be meticulous and detailed for your first 5 years of operation, so you ensure you have KPI’s to track success and feasibility.
If you are interested in working for a gym, I highly suggest looking into Life Time. With over 150 locations, Life Time provides a premier personal training experience that also includes many other high-quality amenities such as racket sports, Pilates, pool, pickleball, spa, cafe, and more. Life Time covers all bases from workout, nutrition, and recovery. I have worked for them for over 4 years in total, and I do not regret a second of it!
Everyone is different. Some like the trade-off of higher risk to be rewarded with more freedom in small business ownership whereas others prefer working for large gym chains that provide benefits and protections. In a large gym there is opportunity for promotion and higher education whereas on your own, you may not have those options. It is all based on what YOU value at the end of the day. Take some time and weight the pro’s and con’s of where you are in your career and where you want to see yourself in 5-10 years.
If you have questions, feel free to personal message me and I would be happy to assist! If you have ideas for topics that you would like to hear more about, comment below. Thank you for your time! -Nick Fey
Nick Fey Fit 