Reopening The Right Way | Ep 206

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 15 May 2020

⏱️ 14 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

You need to lay down all the right cards before claiming your win. Today, Alex (@AlexHormozi) talks about the different factors that should be considered when you’re reopening your business after COVID-19 and making sure that you’re reaching the right percentage points in order to become profitable again.

Welcome to The Gym Secrets Podcast where you can listen in on the Top 1% of Gym Owners to hear the secrets of what they are doing differently to get more customers, make more profit per customer, keep them longer, and do it all without sacrificing their personal lives. We've got roll up your sleeves kind of hustle with a little bit of cleverness and a lot of heart. We are 1% of gym owners and this is our podcast. Hosted by Alex Hormozi.

Timestamps:

(10:59) - The profit model is not built for large group training to not be able to do large group training and Alex explains why. Even though you get permission to open back up, it doesn't mean that you're necessarily gonna have the profit to be able to do so.

(1:57) - There are two main components of opening the right way. The 1st is you need to price your services at the price that that service would be normally offered.

(2:49) - Even if not everyone will be coming back, the good news is that there are those who want to come back desperately. The 2nd component is “how do I know when it makes monetary sense?” Alex explains this concept with some math

(4:22) - Make sure you getting an 80% gross margin minimum, which percentage points matter, and when you start your customers’ billing

(8:32) - Once you overcome the math, you’re gonna have to make harder decisions in order to be more profitable

(10:15) - You can click reset on your business. Alex shares with us 5 things you need to do right now in order to scale the business again

Follow Alex Hormozi’s Socials:

Transcript

Click on a timestamp to play from that location

0:00.0	Mozination real quick, if you are a business owner that has a big old business and wants to get to a much bigger business,
0:06.1	going to $50, $100,000 plus we would love to talk to you.
0:09.5	And if you like that, or would like to hear more about it, go to acquisition.com and you can plan anywhere on the page
0:14.3	and talk to one of our team and see if we can help you get there.
0:17.6	So even though you get permission to open back up, it doesn't mean that you're necessarily going to have the profit to be able to do so.
0:24.5	Welcome to the Jim Secrets Podcast where you talk about how to get more customers, how to make more per customer,
0:28.7	how to keep them longer, and the many failures and lessons that we have learned along the way.
0:33.1	I hope you enjoy and subscribe.
0:36.3	Good morning everyone. Welcome back.
0:38.0	So I want to make this video because I in our community was talking yesterday about the math behind how to know
0:44.3	how many sessions you should have as you're reopening to make sure that you are profitable.
0:49.6	So one of the big issues that's going to come up is a lot of different states have different recommendations.
0:54.2	Some of them are based on percentage of capacity.
0:56.7	Reopening through COVID, some of them are limited to 10 people or it's the greater of the two or the less of the two excuse me.
1:04.4	And so what that does is it creates a lot of issues for most gyms because
1:13.0	the profit model is not built for large group training to not be able to do large group training.
1:17.5	All right. And so what I mean by that is if you're charging let's say $5 a session or $10 a session for what it would work out to in terms of the attendance for your $100 a month clients,
1:28.9	if you're only able to have 10 people per session at your facility, that would include you and probably one other person.
1:35.0	So now you're down to eight. Now if you're providing one on eight service, it doesn't make monetary sense for you to be in business.
1:44.7	Right. So even though you get permission to open back up, it doesn't mean that you're necessarily going to have the profit to be able to do so.
1:50.8	So if you were to come back to your full client schedule, when you come back, you probably won't be profitable.
1:57.0	And so this is how you reopen the right way. Okay. So there's two main components of this and I'll go through each one as in depth of the second.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Alex Hormozi, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Alex Hormozi and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.