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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 10-04-2010, 01:35 PM   #1
Brian Niven
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CrossFit Business Model

Does anyone in the community have a crossfit affiliate business model you have found to be succesful that you would be willing to share?

Personal email is brian.niven@hotmail.com

I look forward to seeing what is out there.
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Old 10-04-2010, 02:48 PM   #2
Rick Martinez
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Re: CrossFit Business Model

B,
Check us out at www.pinkdoughnut.com (w/f/s). Not a biz model but rather biz info, free, on what has worked and not worked. There are a bunch of programs and models out there but the beauty of Coach Glassmans creation is the ability to mold as we see fit.
Rick
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Old 10-04-2010, 07:34 PM   #3
Brian Niven
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Re: CrossFit Business Model

Thanks Rick!
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Old 10-05-2010, 10:44 AM   #4
Angela Childress
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Re: CrossFit Business Model

Thank you for the link! Only thing though, I'm trying to avoid sweets, and seeing the pics of the doughnuts makes me want one!
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Old 10-05-2010, 09:13 PM   #5
Damon Stewart
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Re: CrossFit Business Model

Hmm...had to think of that one. Do we have a replicable model? Here's our model

Deliver excellence in 3 areas:
1. Coaching
2. Training experience
3. Everything else (toilet paper, billing systems, foundations classes, facility, etc.)

Be inclusive
1. Make sure our culture welcomes new athletes and doesn't become a clique of cool people that puts off the neophyte.
2. Play together - do community events, Crossfit events, have parties, have fun!
3. Do business with athletes once - we want to feel like a sports team not a gym where we're constantly selling to our athletes. For us this means no supplement sales, membership promotions, upsells, contracts, etc. This philosophy underlies so many things we do.

Be Principal based:
1. Go the extra mile for our clients
2. Treat people the same way I'd want to be treated, even if it involves tough feedback or the answer "no."
3. Be Christian - for me this means do it without talking about it. This is a personal thing and not for all but has worked well for us.

Within these 3 areas are all sorts of stuff, billing, membership agreements, training practices, scheduling intros, etc. Basically I work to systemize the business one piece at a time and constantly strive for excellence.
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Old 10-05-2010, 09:34 PM   #6
Kris Murphy
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Re: CrossFit Business Model

You will tend to find that your business model will be unique in many ways. You will try things, they will fail. You will try more things, and they will work. As Damon said, deliver excellence in those 3 areas.

And be sure to document every process you create, because some day you will reach a point where you want someone else to carry on the tasks so you can go do something else (vacation, spend time with family, whatever). So if it's not well documented somewhere then you'll never reap the rewards of being a successful business owner (meaning not working open to close at your own business).
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Old 10-06-2010, 09:09 AM   #7
Angela Childress
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Re: CrossFit Business Model

Quote:
Originally Posted by Kris Murphy View Post
You will tend to find that your business model will be unique in many ways. You will try things, they will fail. You will try more things, and they will work. As Damon said, deliver excellence in those 3 areas.

And be sure to document every process you create, because some day you will reach a point where you want someone else to carry on the tasks so you can go do something else (vacation, spend time with family, whatever). So if it's not well documented somewhere then you'll never reap the rewards of being a successful business owner (meaning not working open to close at your own business).
That is a very good point. A good business model includes a plan to train up those within your box, or bring some one from outside your box, to help take on the responsibility as you delegate them.
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Old 10-06-2010, 12:03 PM   #8
Andy Petranek
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Re: CrossFit Business Model

Damon gives some great advice... any CF business that doesn't rank excellence in training/coaching and quality of the customer experience at the top is bound to fail.

There are a few things, however, that I think are a bit less vague that you should consider before going into business - regardless of the model you run with...

1. Decide what you are... a business or a club. By business, I mean that you are putting food on your family's table (or not) based on the revenue/profit that your business generates. If your'e a club, $$ doesn't really matter - do whatever you want... total freedom... have fun!

So, if you are a business:

2. Know what it costs to keep the lights on every month.
3. Know what you want/need to pay yourself
4. Add the two - this is your required monthly revenue

Once you know this number, then it's time to start fiddling with financial models.

5. How much are you going to charge for a class / time period / membership?
6. How many members at that rate do you need to give you the total of #4?

I would suggest putting these variables into a spreadsheet and "noodling" it... If you don't do this, you run the risk of creating a financial system that you're "comfortable with" (ie - charging $125/mo unlimited) that requires 200 members for you to meet your answer from #4 above. And if you only have 800 sq ft... that probably won't work.

It doesn't matter how good your coaching / training experience is if your financial model doesn't support your revenue requirement.

We teach our business system (actually Rick took our seminar 2 years ago and implemented many of our systems) in both a DVD and a seminar. Check the right column of our website at http://www.crossfitla.com/cms/index.php/The_Biz/ (rated G).

Good luck and feel free to contact me any time directly at andy@crossfitla.com.
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Old 10-07-2010, 10:27 AM   #9
Brian Niven
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Re: CrossFit Business Model

Great info guys. Thanks for your comments!

B
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