Alloy Personal Training Business The Two Types of Fitness Business Owners
Before getting into the fitness business, you need to decide which type of owner you want to be. Either the owner-operator or an investor, also known as an absentee owner. Neither of these two ownership structures is wrong or right. We talk about the pros and cons of each and also the type of person who fits into each of them.
An owner-operator is somebody who is deep in the operations of the business. They work in the business. An owner-operator can have higher profit margins because they can tightly control the operations besides occupying the Director of Training position. They are usually a technician who decides to own a business. The cons of an owner-operator are that they are getting into a job. They might find trouble getting out of this job.
An investor is normally someone who has a higher business acumen who wants to scale up to multiple locations by executing the systems of the franchise they have partnered with. They initially invest more capital because they need more people but their return on investment is much higher in the long run. This type of owner will need entrepreneurial and leadership skills to build a team to manage the business.
Key Takeaways
- Deciding the type of fitness business owner, you want to be (02:20)
- Who is an owner-operator and what do they do (04:13)
- An owner-operator can make more profits by tightly controlling the operations (06:14)
- Why it makes sense for owner-operators to work with a franchise (08:49)
- The cons of an owner-operator fitness business model (11:51)
- Why an investor has a higher return on investment in the long run (17:49)
- The cons of an absentee owner fitness business model (22:49)
- Why the Alloy Franchise appeals to both type of owners (27:46)
Additional Resources:
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