THE BUSINESS OF PERSONAL TRAINING

Starting and Running a Personal Training Business from the Ground Up

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Table of Contents
Introduction 9
Why this book? Why now? 9
History of the Fitness Industry 12
Part 1: Personal Training Overview 15
Checklist 1A: Review 16
Chapter 1: Become a Personal Trainer for Fun and Profit 17
What Personal Trainers Do 19
Trainer Schedules 19
TRAINER HOURS 20
Checklist 1B: Chapter Review 22
Chapter 2: Is this for me? 24
Abilities 24
Knowledge 25
Education 25
Credentials 26
Skills 27
Personality 27
A word about Safety 28
Would you be successful as an entrepreneur? 30
Checklist 2A: Entrepreneurship 31
Burnout 31
How this book will help you stay in the career long-term 32
Credibility for the New Personal Trainer 33
Why People Fail at Personal Training 34
Entering the Industry for the wrong reasons 34
Unrealistic Income Expectations 34
Insufficient Management Skills 34
Poor planning 34
Lack of Clear Direction 35
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 Limited Income 35
Lack of relationship to clients 36
Lack of Drive 36
Checklist 2B: DO I have what it takes? 37
Chapter 3: Choosing Your Niche 38
Why Choose a Niche 38
How to Choose a Niche 38
Personal Preferences 38
A Great Example 40
Identify Competitors 41
Analyze Your Competition 42
Determine if Feasible 42
Demographics -Identify your Target Market 45
Creating Your Client Profile 46
Creating Your Niche Statement 47
Some Niches You May Consider 47
Solo, or Club? 48
What about Forming a Partnership with the Club? 49
Part II: Getting Started 51
Chapter 4: Planning your Business 51
Analyzing your idea 51
Low-Cost Ways to Analyze Your Market 52
Conduct Personal Interviews 52
Go Online 52
Talk to the local Chamber of Commerce 53
Finding Your Potential Market 53
The Break-Even Analysis 54
Developing a mission statement 55
Creating a Successful Business Plan 56

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 Elements of a Business Plan 56
Chapter 5: Names, Location, and Forming a Business 62
Pick a great name 62
Location (location, location) 63
Working from Home 64
Working in a Gym 65
Working from a Mobile Studio 65
Renting a Facility 66
Understanding Business Structure 68
Incorporation – The Pros and Cons 69
License and Permit Requirements 70
Chapter 6: Estimating Start-Up Costs 70
Calculate One-Time Costs 71
Uncovering Ongoing Costs 71
Working from Home 71
Working in a Gym 72
A Mobile Studio 72
Renting a Studio 73
Client Loyalty and Your Finances 76
Where to Find Funding Sources 77
Part III Open for Business! 80
Chapter 7: Managing Your Business 80
Setting Goals 81
Using Testimonials 83
Programs ~ Your own or Someone Else’s? 84
Systematize everything 84
A system for getting clients in Your Niche 84
Tracking 84
Know Your Numbers 85

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 Increase value at the point of sale 86
Eliminate Risk 86
Working in Versus Working on Your Business 87
Policies and Procedures 88
Chapter 8 From Prospect to profit 89
Internal Marketing 90
Developing an effective sales process 91
Free Sessions 91
Utilize the Physical Activity Readiness Questionnaire 91
Questioning and Listening 92
The Six-step sales System 92
Programs / packages 92
Semi-private (Group) Training 93
Offering BootCamps 94
Steps to creating a successful boot camp 95
Nutritional Coaching 95
Supplements 96
Integrating supplements into your current program. 97
Auto Shipping Supplements 97
Referral systems that work 97
Chapter 9: Image and Marketing 99
Client Lifetime Value 99
Developing Your Unique Selling Proposition 100
Building Your Image 101
Marketing Methods 102
Newsletters 102
Sales that get you noticed 102
Direct Mail 103
Other Ways to Bring in Business 104

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 Networking 105
Advertising 105
Newspapers 105
Other Local Papers 106
Television 106
Yellow Pages 106
Direct Mail 107
Easy Upselling 107
Developing a Marketing Calendar 108
Sample Marketing Calendar 109
Keeping Several Poles in the Water 109
Creating a Successful Direct Response Ad 110
Chapter 10: The Legal Side 110
Offset Liability with Specialized Training 110
How to find a good attorney 111
Taxes made easy 112
Federal Taxes 113
State Taxes 114
Regional Taxes 114
Income Taxes 115
Depreciation 117
Employer Taxes 117
Insurance 117
Chapter 11: Financial Principles 120
Pricing your Services 120
Payment Methods 121
Accounting Principles 122
Recording Transactions 123
Closing your books 123

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 Accounting Documents 127
Income Statement 127
Balance Sheet 128
Improving Cash Flow 131
Calculating your own income 131
Employee Compensation 132
Trainers 132
Non-trainer compensation 134
Profit-sharing 135
Benefits 135
Chapter 12: Establishing Relationships with Clients 148
What Clients Want 149
Initial Consultation 155
Assessment 156
Getting Hired by Clients 158
Keeping Your Clients Going 158
Secrets to Facilitating Client Progress 160
Providing the Right Kind of Client Service 161
Telephone and E-mail Policies 165
Additional Legal Concerns 166
Client Retention 168
Chapter 13: The Mentality of Personal Training 170
Goal setting 171
Motivating the Client 172
The basics of changing habits 173
Accountability 174
Client Personalities 174
Chapter 14: Hiring and Staffing 176
Should you employ trainers? 176

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 Creating the Job Description 177
Job application 183
Company Name 183
Employment Application 184
Applicant Information 184
Education 185
Previous Employment 185
References 186
References 187
Military Service 188
Disclaimer and Signature 188
Interviewing prospects 193
Independent Contractors versus Employees 199
Trainer Policies 202
The Professional Image 206
Pay and benefits 207
Creating the Employee Handbook 209
Chapter 15: Designing and Implementing Effective Programs 210
Guidelines for Effective Program Design 212
The 5 Most Common Errors in Program Design 213
The Principles of Program Design 217
The Variables of Program Design 220
Chapter 16: Corporate and Group Fitness 227
Appendix A: Useful Forms and Contracts 231
Sample Initial Consultation Outline 231
SAMPLE HEALTH HISTORY QUESTIONNAIRE 231
Sample Medical Clearance Form 235
Sample confidentiality agreement 237
Sample independent contractor agreement 248

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 SAMPLE PAR-Q FORM 254
Sample Goal-setting Worksheet 258
Appendix B Resources 261

Introduction

WHY THIS BOOK? WHY NOW?

Open any newspaper or browse any website and I can almost guarantee you that there will be a
feature article on diet, obesity, fitness, or health. Two-thirds of the nation is overweight or
obese, and the rest of the nation has poor nutrition and exercise habits. That’s why the diet and
fitness industries are both booming.

Health clubs in particular are experiencing a rise in attendance—in 2004, the number of health
club attendees was up by more than 228% compared to the previous six years. By 2006, there
were 42.7 million Americans boasting a health club clientship. In turn, the number of clubs
continues its steady climb, and those clubs have a more diverse offering of programs than ever.

Clearly people are seeking out healthy ways of combating obesity. They are making attempts to
overcome sedentary life habits in order to improve their lifestyle. Their choices may be
assigned by doctors, encouraged by employers, or simply commitments they make to
themselves.

As Americans spend more money on diet and exercise programs, they are also turning to
customized, more personalized solutions. They realize that weight loss and fitness are not
necessarily one-size-fits-all. They enjoy the convenience of personal training, and they take
pleasure in the singular attention—in fact, they demand it. The growth in corporate wellness
programs is helping to further the personal training field, too. As employers encourage
employees to participate, those employees are seeking out customized (and often more
private) solutions.

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The good news for the personal training industry is that this trend toward health and fitness
makes ours one of the better fields for employment. In 2005, 6.1 million Americans paid for the
services of a personal trainer. This is a 53% increase over the previous six years. According to
Money Magazine, a career in personal training is one of the top 15 careers for 2010. The
National Federation for Professional Trainers estimates that the industry will grow more than
40 percent over the next five to ten years. A skilled personal trainer is in demand, and can earn
upwards of $100,000 per year.

It’s obvious that the industry is growing by leaps and bounds; more personal training studios
opened in the last three years than in the previous twenty years combined. The prospect for
trainers is tremendous as people are becoming more and more aware of the need to take care
of themselves. After all, as people are living longer, they want to enjoy a better quality of life.
They don’t want to retire and not be able to enjoy the rewards of all the years they put in on
job. People no longer work “for retirement” but instead attempt to better themselves for the
future, which can easily be thirty years beyond retirement, or more.

As a professional in the fitness industry, I find the fact that personal training is currently one of
the fastest growing careers in the United States today both exciting and potentially
troublesome. Our society’s growing recognition of its need for coaching and assistance with
fitness and exercise programs provides virtually endless opportunities for personal trainers, and
that is exciting. It means when I find interested parties who are potentially excellent fitness
professionals, I can train them in the business in good conscience. It means those of us who are
already in the fitness industry can work together to form alliances, new methods, and new
programs that will benefit our clients. Most of all, the career is a solid income-producing
profession; it’s no longer something that must be done on the side, another twenty hours
added on to a forty-plus hour work week.

Yet for the most part, trainers themselves end up being ill-equipped to operate their business.
This is due in part to the lack of required standardization in the personal training industry as a
whole. This gap in professionalism creates a high turnover rate, and frustration for the
individual who truly wants to belong to the fitness industry in a professional capacity.

In addition, while many of the certification bodies and educational institutions offering degrees
in the related disciplines provide a satisfactory understanding of exercise science, nutrition and
the basics of providing personal training services, they fall painfully short in providing the
business information necessary. Typically these only focus on one area of the business of
personal training rather than being a comprehensive resource. The trainer is well-equipped to
work for an employer who will create the client base for him—but that is hardly ever how this
business works. Trainers who wish to create their own facilities or develop their own client base

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do not have an educational background in marketing, bookkeeping, and all the myriad duties
that an entrepreneur must cover.

As a result, personal trainers who seek to learn about the business side of the industry must
gain information from a variety of resources. Books may be purchased or classes taken—
assuming the individual can recognize the need. Unfortunately, this approach generally results
in an incomplete and somewhat random approach to understanding the business. It is also
often limited by the personal trainer’s budget, interests and access to the material. It can even
lead them to seek out information that is incorrect—a quick Internet search reveals many sites
containing pages on the operation of a fitness business that are clearly written by people who
are not industry professionals.

Thus, while a motivated personal trainer can certainly piece together a working knowledge of
the business fundamentals of personal training, it is usually costly and time consuming. As a
result, many personal trainers start off with great enthusiasm, but quickly become disillusioned.
They work hard for a small amount of income; they pour their heart and soul into a business
that cannot sustain a single person, let alone a family. Because of the isolation, frustration, and
lack of funds, workouts and routines become boring and stale. Soon, the average trainer is
looking around for another career path.

The business of personal training has not been presented in a single source in recent years.
Personal trainers who seek to obtain a greater understanding of the business side of the
industry are forced to piece together their knowledge from a variety of resources. Typically
these only focus on one area of the business of personal training rather than being a
comprehensive resource. In my own personal library of training manuals, I find:

● Resources that focus on the training aspects of the profession

● Resources that discuss making money in the fitness business, but only covers
working in clubs
● Resources that address business, but not specifically for personal trainers.

And countless others. As you can see, we are lacking a comprehensive, step-by-step guide. We
need the ultimate manual for running a fitness business. That’s what I have tried to accomplish
with this book.

So, in writing this book, I have embarked on a personal mission to assist other trainers in
learning the things that simply aren’t available. I have attempted to present the business
fundamentals of personal training in a manner that will equip the new personal trainer to start
and operate a business successfully. This text is not only written for newcomers; it will also,
and perhaps more importantly, serve as a resource for experienced personal trainers who seek
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to improve and refine their business practices. I have written the book with an eye toward its
service as a tool that allows personal trainers to develop successful businesses, more effectively
serve their clients and enjoy a better professional life.

My own initial experience was as a collegiate baseball coach and strength coach. I trained a few
athletes on the side for additional revenue, as my pay from the University was limited. The
business side of things was very elementary; I simply charged people for a number of sessions
per month and they paid for the month in advance. Because the market I was in wasn’t
particularly affluent, I did semi-private sessions out of necessity to keep the cost down for the
clients while still making my time valuable.

I then moved to a more affluent market and started doing more training, both athletes and
general fitness clients. At this point I fell into the pattern of doing more one-on-one training,
but typically using 30 minute sessions.

After a short time I began training exclusively in a health club setting, initially as a staff trainer
then as a department manager and finally as a director over training departments in several
facilities. In the club setting I learned much more about the business side of things but saw
how little value the clubs and their trainers typically provided for their clients. The trainers
usually provided poor service and the clubs didn’t understand the potential of maximizing the
lifetime value of each client, so they ignored it and simply focused on selling the next package.
This experience led me to seek out an opportunity to start my own business where I could
utilize what I’d learned in both an athletic setting where client results are the primary focus and
the club setting where business and sales were the primary focus.

Personal Training was not considered a viable career path until recently. Many times, it is still
looked at as a “job,” not a career. I don’t know a whole lot of people who have retired as a
personal trainer. How could they? There is no 401K, no retirement plan, and no one who has
already forged the path to demonstrate how it is done.

Part of this, too is that personal training is a “young” profession. You see a great many more
trainers in their 20s and 30s than in their 40s, 50s, or 60s. To understand that better, let’s take a
look at the history of the industry.

HISTORY OF THE FITNESS INDUSTRY

Although there have been pictures discovered in tombs pointing to the practice of weightlifting
as early as 2500 BC, it wasn’t until the 1920s that the real modern fitness movement began.
Remember the name Charles Atlas? His program started with weightlifting, and was more
about muscle building than health. “Fitness” as a business was still fairly new in the 1950s,
when Jack LaLanne started his exercise programs. A gym at that time consisted of weight
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equipment, a few other odd contraptions, and that’s about it. By the 1960s Dr. Kenneth J.
Cooper introduced the term “aerobics” and the fitness craze began. Fitness soon became a
household word.

In the 1970s, the club concept as we know it today grew like a tidal wave—and so did the
number of fitness enthusiasts. Besides weightlifting, they offered aerobics and tons of other
group activities, much as they do today. Every American jumped on the get-fit bandwagon.

However, personal training is only about a 20-year-old industry. And back in the 80s, a trainer
gave the client two or three sessions – always in a gym—and then turned him loose on the
machines to do his own thing, whether it was right or wrong. Many people consequently
developed incorrect ways of using machines. Only in more recent years has personal training
become more “personal,” offering the client unlimited access in order to carefully develop
proper methods of exercising.

All in all, it’s a profession that hasn’t evolved and hasn’t taken its own shape until the very
recent past. The professionals who are in the business right now are the pioneers. They are the
ones who are creating the model of a “personal fitness professional.” Because it is costly and
time consuming, even the most motivated personal trainer finds piecing together a working
knowledge of the business fundamentals of personal training a daunting task. The business of
personal training as its own industry has not been presented much, if at all in recent years.

Personal trainers must know all the marketing, business, and ownership
fundamentals as well as be able to create the best program for the
client
In addition, there is an absence of marketing and business training on the part of educational
institutions, and we see that the lack of business education not only damages the potential
fitness professional’s ability to progress in his or her career, but it also hurts the personal
trainer in the eyes of the client / prospect. It becomes more difficult for the personal trainer to
present himself as a credible professional, and ultimately limits his earning potential. Personal
trainers are entrepreneurs who need to learn more than just fitness fundamentals. They must
learn how to share those with others, how to create the best program for the client, and on top
of that they must learn all the marketing, business, and ownership fundamentals that every
small business owner must know.

That was the premise upon which I developed this book. It is a needed manual, a shortcut
system for the personal trainer. In it I have shared information not only from myself, but from
other industry professionals who, like me, have built their business from the ground up with no
blueprint or model to follow. It is my hope that the reader can use the book to shorten the
learning curve in order to create a successful working business model from the first step.
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In this book, I have tried to present the business fundamentals of personal training in a three-
pronged manner. First, it will equip the new personal trainer who has no experience so that he
or she can start and operate a business successfully. He or she, assuming there are the correct
credentials added into the mix, will have a solid plan for building not just a clientele, but an
entire business.

Secondly, it will serve as a resource for experienced personal trainers who seek to improve and
refine their business practices. Policies that have already been honed to perfection; contracts
that cover the very unique needs of personal trainers; and methods that are proven to work are
all available here for the professional to use, expand on, and alter to fit his or her personal
situation.

And third, this book will serve as a tool that allows personal trainers to develop successful
businesses, more effectively serving their clients and enjoying a more productive and
professional niche in the industry as well as an improved personal life. I’ve tried to devote more
time to the issues and needs that might be less obvious. The ideas presented should get even
the most practiced personal trainer excited—ready to launch a new program, draw new clients,
and develop new potential.

Just recently have the first personal training franchises been launched. Those in the business
have started to serve from a business/consulting side to fill the void. Sales of various
educational programs have aided many in the training community into stronger, streamlined
business models with many opportunities for developing niches.

Personal training has also evolved and branched out in a variety of capacities. Ten years ago it
was relegated to serving only the affluent; people perceived it as a profession that existed for
movie stars and pro athletes. Now it is more mainstream. Not just the affluent reach out for a
fitness professional, but also people who have a different mindset. They are regular joes, the
people who see that they need and deserve a more customized fitness experience. Not only
that, but more people are utilizing some sort of personal coaching:

● One-on-one fitness training

● Weight management
● Semi-private training
● Small groups
● Large groups

Personal trainers have recognized that if they want to make money, they need to serve more
than just the top one or two percent of the population. To put it another way, offering services

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to a larger part of the population—going mainstream—increases the trainer’s income-making
opportunities. By doing that, the trainer creates a viable career, one that he is able to remain in
for a longer period of time and enjoy a more comfortable living.

Trainers also have just started to identify the need for business education, the need to niche
market, and have realized it is not a one size fits all business. The percentage of people that
have employed a personal trainer in some capacity during the past 10 years has grown
hundreds of times over.

The fitness business in many ways has followed the path of the chiropractic business. Twenty-
five years ago, chiropractors were an anomaly; they were not considered doctors by many. Now
most people are familiar with chiropractic; many have visited one at least once. This is the same
way the personal training business has grown. At first, it was an elitist business. Now that there
is more awareness within the community, the idea of visiting a personal trainer is welcome and,
to some, considered a necessary part of getting fit.

Some people in the industry think trainers should be viewed by the public as professionals, like
doctors, CPAs, and others. Although this could happen, the change will most likely take place
slowly. The problem is that personal training is a relatively new profession, whereas there is a
perception of doctors’ role in society that’s been around for hundreds of years. Referring again
to the chiropractic business, another fairly new profession, consider how society had to be
educated on the role of chiropractors. Most of the change occurred by word of mouth. This
created a gradual change based on personal experience, and their success, at least in the
beginning, relied largely on referrals.

I don’t worry about the public’s opinion largely because I view personal training as being a lot
like that of the chiropractic industry. We’re a young profession, one that fewer people have
actually experienced. This viewpoint will change in time, both because personal trainers offer
so many positive benefits to the consumer and because as more people experience a personal
training session, word will travel, just as it did for the chiropractic business.

Part 1: Personal Training Overview

Obesity in the United States is at an all-time high. According to the Centers for Disease Control
and Prevention (CDC), thirty percent of American adults age 20 and over are obese. Besides
those, another 33 percent fall into the “overweight” category. This epidemic continues to grow
at a rapid pace as people of all ages have increasingly sedentary lifestyles.

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Obesity and health issues are rampant in our nation, and the backlash has been an explosion in
the world of the fitness industry. There is no sign that there will be a sudden drop in the
interest in fitness or in the growth of fitness and weight loss franchises; Americans will continue
to gain excess weight, and to seek ways to lose it and prevent it from returning.

A growing number of people are looking for direction and motivation for their current exercise
program. Physicians, managed care organizations and employers are readily promoting healthy
lifestyles to reduce unnecessary health care costs. The 1992 National survey of Worksite Health
Promotion Activities says 81 percent of work locations offered at least one activity promoting
health.

Parents are more frequently seeking professional guidance for their children when it comes to
fitness and exercise. Children no longer play outside after school. Many schools do not even
offer fitness programs anymore. These are among the many reasons that people are turning to
personal trainers at an ever increasing rate for assistance in designing and implementing
effective exercise programs. Also, the sheer volume of information on dieting, weightlifting,
and cardiovascular activities leave people confused as to what, exactly, they should be doing to
become healthy.

But there are many other reasons people give for wanting to get in to the personal training
business. Money. Control. Flexibility. Independence. Creativity. You can have all of these, and
more, by becoming a personal trainer. This is especially true if you decide to have your own
business. In part one we will examine why personal training is such a lucrative business,
whether you have what it takes to become a trainer, and whether you are the sort of person
who should own a business.

CHECKLIST 1A: REVIEW

What are some of the reasons people give for choosing to enter the fitness industry?
______________________________________________________________________________
______________________________________________________________________________
___________________________

What are your reasons for choosing to become a part of the industry?
______________________________________________________________________________
______________________________________________________________________________
___________________________

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After reading this chapter, what do you see as some of the pitfalls to becoming a personal
trainer?
______________________________________________________________________________
______________________________________________________________________________
___________________________

What is the single best information you found in this chapter?

______________________________________________________________________________
______________________________________________________________________________
___________________________

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Chapter 1: Become a Personal Trainer for Fun and Profit
The nationwide push for exercise and better health is good news for this business, because it
means the number of personal trainers in the country will continue to grow. The general public
is much more aware of not only the fitness industry, but also the need for professionals who
serve a variety of niche markets. The U.S. Department of Labor (Bureau of Labor Statistics)
states that employment for personal trainers will increase over 27 percent from 2004 to 2014. If
you have been thinking of becoming a personal trainer, there is no better time than right now
to join this fast-growing industry.

Besides the explosion in growth, being a personal trainer offers flexibility that is not seen in
other industries. This flexibility enables trainers to be picky, to choose which niche or niches we
wish to participate in. Better yet, if we find ourselves growing bored or disinterested we can
change our focus. For example, a trainer who begins a career as a young woman working with
mothers of young children finds herself fifteen years later growing tired of the market. She can
simply redirect her marketing efforts and, with proper re-education, of course, focus her efforts
on a different segment of society. This offers the trainer a unique “job change” opportunity
without ever actually leaving the job.

This industry flexibility is one of the main reasons people choose a career in personal training,
and a big reason why you should, too. There’s another kind of flexibility involved – that of
scheduling. For the most part, even trainers who work for fitness centers have a great deal of
leeway in scheduling. So if you are a parent who needs to be with a young child, or if you need
to schedule sessions around another job, or if you just have more energy at a certain part of the
day, you are able to schedule things as you like. There aren’t many jobs in the world that offer
you the opportunity to change your working hours as you see fit.

Another reason many people would like to get into the fitness industry is so that they have
control over their business. Besides the flexible scheduling, personal trainers are able to create
programs which they see a need for – programs that help their clients reach their personal
goals. As a trainer, you control the format in which clients train. You have control over your
offerings; will they be one-on one, or semi-private? Or maybe you feel energized when
coaching large groups. You get to choose your delivery format as well as your hours.

When looking toward becoming a personal trainer, one of the biggest reasons people say they
would like to get into the industry is independence. As you can see, the freedom to schedule
things the way you want does offer an independence that few other industries can match.
Fitness professionals do not have to rely on reviews from bosses or other superiors. They do
not have to climb the ladder of success—instead, they create their own. Your career will truly
be exactly what you make it.

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Flexibility, creativity, control, independence—there is only one ingredient missing here: money.
The best thing about being in the fitness industry is that money is practically hanging around
waiting for you to harvest it. By following the information provided here, you can bring in an
income worthy of a professional, and have the lifestyle to match.

Whether you are just finishing your certification course or you have years of training, you may
be working with an eye toward owning your own business. This can be done on your own as an
entrepreneur, through a club as an employee or contractor, or through a franchise. In fact,
more and more trainers are turning toward purchasing a franchise as a way to turn that dream
into a reality. We’ll talk more about franchises in Chapter 2.

So is there a down side? Of course. As with any career, there are a few obstacles to starting a
personal training business. Once you know how to train clients, you also have to acquire the
business administration skills to manage your business. Lack of training, lack of support,
advertising issues and costs, and business models that are strung together or are unproven are
simply a few problems new owners have to face. Not branding, not keeping good financial
records, and not understanding the impact minor changes can have on your business are other
problems that can cause serious harm to your business, but hopefully you will learn how to
overcome these by reading this book. You see, there are two parts to the personal training
business. The first is being able to work in the capacity of a personal trainer, possessing all the
abilities I mentioned earlier. The second is being able to think like a business owner.

With all that, you may be wondering whether you have what it takes to become a personal
trainer. There are many ways to get your feet wet in order to decide. Here are some ideas:

If you seem to have a knack for working with people as well as a head for business, you are
probably a perfect fit to be a personal trainer. If you’ve ever coached, led exercise classes, or
worked in a gym, even better—you already have a sense of what it takes. You can work for a
fitness center, go out on your own and be an entrepreneur, or even work out of your home.
You can work as many or as few hours as you like. You can set what time of day you choose to
work; you can decide whether to work weekends; you can devise countless ways of doing
business, ways that are different from other personal trainers. You can design a program that is
uniquely you.

If you’re interested in being an entrepreneur but are afraid you lack the necessary experience,
consider buying into an already-successful franchise. Entrepreneur.com lists the Top 500
Franchises every year; on the 2008 list, 43 of those are fitness franchises. According to the
Small Business Administration, nearly two out of every three non-franchised businesses fail
during the first six years of existence. This contrasts strongly with the fact that less than 5

19
percent of franchises close each year. Clearly, buying into a franchise can be a terrific
investment – as well as a means to an end.

If you’re gung ho about the business and you are not interested in buying a franchise, don’t
worry; later in this book we’ll talk about the elements of a business plan and how you can
organize your company, make financial projections, and other business-like activities that will
help you realize your dream, even if you have no experience.

WHAT PERSONAL TRAINERS DO

There’s probably a formal definition of personal training floating around somewhere. A very
broad definition would be “a professional who is qualified to instruct and train clients in safe
exercise that meet the client’s health and fitness goals, in either a one-to-one, semi-private or
group setting.”

But the formal job description doesn’t tell you what you need to know. It doesn’t explain what
a personal trainer “does all day.” And trainers work in so many different settings that there is
no one standardized job description. For example, trainers who work at a health club will have
vastly different tasks from those who operate their own business.

Let’s take a look at some fitness professionals and their day-to-day routines.

TRAINER SCHEDULES
The role of a personal trainer is very diverse. They provide instruction and guidance in the
following areas:

Exercise Physiology
Strength Programming
Nutrition
Kinesiology
Sports Performance Training
Flexibility
Cardio Respiratory Programming

Personal trainers can provide this coaching in one-on-one or group formats. They individualize
their prescribed programming based on a thorough assessment of the client at the beginning of
their trainer / client relationship. They then guide, coach and encourage the client to help them
reach an agreed-upon goal.

20
Because the field is relatively new, today’s personal trainers are very different from the ones
that trained in the 1950s or even the 1980s. As scientific knowledge of anatomy and physiology
has evolved, personal training approaches have changed.

So what does all this mean you will “do all day” in your new career? Here is a list of some
components of a typical personal training business. Of course, there are almost as many
different ways to run the business as there are trainers; yours will vary depending on which
business model you choose to participate in as well as your chosen niche.

Perform a fitness assessment.

At the first meeting with a client, you will often gather information about the client’s
goals, health, medical profile, and lifestyle. This should be done in a thorough, methodical way
in order to get a full picture of the client’s health and fitness level. However, it also is a time for
you and the client to get to know one another, to see if you are a good fit.

Create an individualized program.

Each program will be based on the individual’s goals, and will incorporate his or her
fitness preferences and training level. Programs may be based on weight loss, strength or
endurance training, sports performance, flexibility, or other details based on the fitness
assessment. Goal setting is a joint effort between you and the client. The plan you create will
include the goal itself as well as the way you are going to reach it. You will find yourself helping
the client set both long-term and short-term fitness goals based on his or her current level of
fitness as well as the commitment to becoming fit.

Coach the program.

Working with each client, the trainer teaches effective, safe fitness programming.
Progress will be evaluated on a regular basis and carefully recorded. The program is adjusted as
necessary based on the evaluation and client feedback.

Encourage and Motivate.

A large part of coaching or training is helping clients to create long and short term goals,
and to encourage them to stick with it. Personal trainers offer many forms of support and
encouragement through acting as a confidant and a coach.

Nutrition Counseling

Those who have studied nutrition may offer nutrition education or weight management
counseling. This may be offered through a formal session, or less formally during the regular
training sessions.
21
Rehabilitation

Some trainers enjoy working with clinical exercise participants. These are clients who
have been injured or who have been ill and need to transition back to their previous level of
fitness and activity. In this case, a trainer would work with the client’s physician and/or physical
therapist to create an exercise program.

The time you spend on personal training can be significantly overshadowed by the time you
spend on the actual business. Here’s a chart showing how just a few trainers explained their
time spent; more details from some of them follow the chart.

TRAINER HOURS

Dave Gleason of Athletic Revolution South Shore gives a great breakdown of his time:

Finance: I do all billing the first week of every month. Usually only takes about an hour.

Marketing: constant referral marketing and networking.

New clients: I have been booked for years.

Phone/e-mail/follow-up: I am in constant contact with my clients via my blackberry, mostly email/text

and phone calls when needed.

Anything else significant: Programming, programming...programming. I am always thinking of ways to

be a better coach and trainer and continuously thinking of how the current programs for my clients can
and should evolve.

Until Athletic Revolution, I have been a one man show and have not had the opportunity to "talk shop"
with other trainers as I used to when I worked in the health club and gym scenes. That said, I rely
HEAVILY on reading the select few email subscriptions that I receive on a continuous basis as well as
reading book, watching videos and listening to audios created by the trainers and coaches I consider at
the forefront of our industry. In addition I look forward to the local Perform Better One Day's and the
Summit every year.

Pamela MacElree, co-owner of Urban Athlete, LLC shares her schedule:

22
Training: 15-18 hours

Finance: 5 hours

Marketing: 5 hours

Recruiting Clients: 3 hours

Phone/Email Follow Up: 1 hour

Administrative: 10 hours

She adds, “I would say I get to one industry event quarterly. I usually always have one or two business
books being read at the same time. I also research/watch/search for various training styles, new
movements, different ways to do movements, new things to implement at the gym weekly.”

Greg Justice has a different approach. He says, “My administrative assistant and I are constantly
reviewing, checking the market and what’s new and so on. There's not a day that goes by that we're not
updating something relative to the business.”

Greg’s assistant does his marketing – he readily admits that marketing is not his strength, so he has
handed it off. It is good when trainers recognize their weaknesses and find a way to work around them.

Greg spends time on other details as follows:

Training: 30 hours

Finance: 3 - 5 hours

New clients: 2 hours

Phone/e-mail/follow-up: 10 hours

And, how often do you review your target market, demographics, and things like that? One of the points
that we're trying to emphasize is that you can't let your training or skill set get outdated and so you
constantly have to access new information about personal training, nutrition, competitors, sales, etc.:

CHECKLIST 1B: CHAPTER REVIEW

What are the five best attributes you have that suit you to the personal training business?

1. ________________________________________________________

2. ________________________________________________________

23
3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

What skill areas will you need to develop in order to become a personal trainer?

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Which part of a trainer’s duties do you think you will enjoy the most?

__________________________________________________________

Are there any duties you believe you will dislike?

______________________________________________________________________________
____________________________________

At this time, is there a particular niche that you would like to focus on? (Many readers may not
have an answer for this yet.)What is it?

__________________________________________________________

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Chapter 2: Is this for me?
Fitness professionals come from many varied walks of life. They have different educational
backgrounds and varied training. In your former career you may have been a coach or exercise
physiologist, or even a physical education teacher. You may have been a realtor, accountant, or
administrative assistant. You might have a strong background in the fitness field, or no
background at all. Because personal trainers function in a variety of roles, whatever background
you bring to the table will only serve to make you a better psychologist, motivator, coach, or
expert.

Reading about a new career can be exhilarating, but also confusing. So if this field is brand new,
you’re probably wondering whether personal training is right for you. Let’s take a look at some
of the individual traits a personal trainer might have. If you do not exhibit one or two of these,
it’s okay; you probably will do fine. Most can be worked at or learned.

ABILITIES
Read over the following paragraphs, and see whether they describe you and some of your
abilities.

You are into health and fitness. Fitness is a lifestyle. Personal trainers don’t have to look like
body builders, but they should be a model of a healthy lifestyle. If these traits describe you,
there are tons of opportunities working in a gym, for yourself, or in one of many other areas—
corporate fitness, cruises, resorts, online training, and more.

You enjoy teaching and sharing knowledge. Training goes far beyond just “telling” the client
what to do or what is best for him. When working with clients, trainers must analyze the best
way to lead that particular client in order to create a environment that will meet his fitness
goals. For example, does he like to talk while working out, or does talking get in the way of the
program?

You can motivate people. High-energy, motivated people are usually people who can motivate
others. A personal trainer spends a great deal of his/her time encouraging clients to reach for
their goals and increase their level of performance.

You make friends easily. Like it or not, you cannot be just a fitness buff in this business. You
must have people skills, because you must deal with every personality imaginable. Personal
trainers encounter a vast variety of personalities. For example, one client might be a highly self-
conscious introvert who has little knowledge and little experience; on the other end of the
scale, they also work with fitness enthusiasts who are nearly pros themselves. Being able to
communicate with different personalities is a skill you must already posses or one you are

25
willing to learn. Even if you’re great at it, you will find that this is a skill you must apply,
practice, and re-learn daily.

You are good at setting goals. A large part of your work will involve setting fitness goals, with
the assistance of the client, and helping him/her to meet them. This means creating small,
attainable steps that lead ultimately to the “big picture.”

People describe you as a good listener. You are able to make the person you are speaking with
feel as if you hear and empathize with what he/she is telling you. You practice good “active
listening” techniques.

Your personality is that of a nurturer. You enjoy comforting people who are injured, in pain, or
recovering from surgery. Your focus is on helping the client feel better.

You strive for the best training to help your clients achieve maximum results.

You enjoy staying up to date on current technology and training.

You are highly motivated to build your own successful career in the personal training industry.
Passion equals profits. In other words, if you are excited and motivated about your career, you
almost can’t help being good at it—which translates into making money, if you use the right
tools.

One of the most critical skills a personal trainer should possess is that of health promotion.
Being able to encourage better lifestyle at every turn in the client’s development will enhance
his own fitness level and also ensure that your career is going in the right direction; your client’s
personal referral is the best way to build a business.

Becoming a personal trainer is a rewarding job for people who wish to assist others. Those who
have a passion for health, a nurturing personality, and the ability to be an effective motivator
will find this to be a viable career field.

KNOWLEDGE
Personal trainers must be able to effectively design and present personal nutrition and fitness
training programs to their clients. Therefore, they must have a strong and clear understanding
of the human body, anatomy, and the way that the body’s vital processes work together. They
must be able to create a program that addresses those processes in a systematic way, without
creating danger or injury to the client. The program must be understood by the client, meaning
that some of their knowledge is in the communication field—“how to” follow the program. And

26
some of the knowledge is in the field of psychology, understanding how to direct, teach and
motivate the client for the best results.

EDUCATION
Many personal trainers hold college degrees in health, exercise science, or a related field. There
are also master’s degrees available in applied exercise science, physical education, kinesiology,
and exercise physiology. Any of these would be an acceptable field of study for personal
trainers.

A college degree gives you almost instant credibility. People who have a degree in a fitness-
related field find that they are often chosen for the exact job they want. When you move
forward and expand your business, once again you will find that doors open more easily with a
degree.

It is said that up to 50 percent of trainers do not have a college degree. Because our clients are
generally well-educated, I believe that we are doing them a disservice by not having a college
degree. So if you are considering whether to obtain a formal education, I believe you should go
for it.

CREDENTIALS
Currently, there is no specific licensing requirement for those who wish to become personal
trainers. That means you are able to say, I am a personal trainer and poof! It’s done. But most
of your clients will be savvy enough to ask you about your credentials before they decide
whether to hire you. Besides, it is always possible that a law could be passed in your state at
any time requiring licensure.

There are plenty of stories circulating regularly about a lack of professionalism in the industry.
Such behavior affects the entire fitness field, not just the individual who practices it. These
trainers may enjoy a certain amount of success, but they bring to mind the strong need in the
industry for more standardization. However, until our business reaches that level, it is best to
obtain certifications from the most reputable agencies you can find.

Certification declares to the public I have more skills than the average personal trainer. It gives
you a credential that represents a certain level of competency. Certifications and professional
affiliations are important to your clients. Quite frankly, there are far too many trainers whose
skills fall at the low end of the competency scale. They are barely able to do their job, when
they could easily invest in their education and become a highly skilled professional. I urge each
reader of this book to get the education and credentials that truly train you, and to continue
educating yourself throughout your fitness career in order to be the best you can be.

27
What certification should you obtain? With over 250 certification bodies out there, this is a
good question. Unfortunately, there is not an easy answer. If you’re planning to work for a gym,
or several gyms, ask them which certification they accept. This varies somewhat by which area
of the country you live in, but the main ones that you will see them ask for are ACE (American
Council on Exercise), ACSM(American College of Sports Medicine), NSCA (National Strength and
Conditioning Association), IYCA (International Youth Conditioning Association) and AFAA
(aerobics and Fitness Association of America). These are reputable programs that are nationally
known and would be a great starting point to boost your qualifications.

The average national certification costs $250 to $500. In addition, it will require that you obtain
both CPR and AED certifications. I believe that you should hold at least one national
certification or a college degree in exercise science before considering starting a personal
training career.

There are also dozens of other general personal training certification bodies and many are
excellent. There are also smaller, more specialized certification programs that specifically
address niche markets you may want to participate in. Adding other certifications like these to
your resume can help give you a certain perceived level of competence and also provide you
with an expanded education, but they do not necessarily increase your paycheck.

After you have received a certification, you most likely will be required to maintain it through
CEUs, or continuing education units. There are usually a wide range of classes to choose from,
which may or may not be offered in your area. So some of your criteria for selecting a
certification program should be:

How Manu CEUs are required?

What sort of documentation will be required?
Where and how often are CEUs offered?

Every program has something to offer, of course. In order to choose the ones for you, consider
your own goals: does the certification match up with the plans you have for yourself and your
business? What about your market – will the certification help you to serve the market niche
you have chosen in a better way?

Adding credentials also enables you to team up with various health care professionals in serving
the needs of a client. By creating such a liaison, you create your own business opportunity, add
a strong backing from a recognized professional in the community, and offer your client a
higher level of care.

28
There is one more reason to take certifications: they are fun. In live certification workshops,
trainers can network with like-minded professionals, see how other people run their business,
and get tons of new ideas. Attaining additional credentials (both live and home study) often
motivates a trainer, leading him/her to have more energy for current clients and plenty for
recruiting new ones. The classes may inspire a new niche, or a change of theme for the old one.
For these reasons, many people pursue at least two additional credentials per year.

SKILLS
The day-to-day operation of a business does not require a single specific skill so much as an
ability to handle the details. Besides working to help your clients better themselves, taking
courses and reading in order to stay up on your industry knowledge, and all the other things
you are doing in order to make money, you have to do the bookkeeping, pay taxes, run
advertisements, create marketing materials, answer the phone, and reply to emails. You need
to understand marketing concepts and be able to define who your target market might be. Of
course, it is possible to hire people to take over most of these tasks; but in the beginning, most
business owners are a one-man (or one-woman) show.

There is no one that will force you to handle your daily responsibilities if you operate your own
business. When you come face to face with an opportunity like this, you must be willing to
create your own results. There’s no time to run from it, but rather it must be pursued carefully,
methodically, and continually.

PERSONALITY
When trying to determine whether you have what it takes, the first thing to consider is whether
your personality fits the profile of a trainer. Of course there are probably introverts and
extroverts in every field, but there are a few key ingredients that are absolutely necessary to
have if you want to develop your own personal fitness business. Ask yourself whether you are
truly passionate about fitness. Are you excited when you learn about new exercises or nutrition
breakthroughs? Are you eager to help others develop a healthy lifestyle?

What is your personality like? This is a good time to listen to the way your friends and
colleagues describe you. Do people say you are friendly and enthusiastic? Do you have good
communication skills? When you explain things, do you get enjoyment from it, or do you feel
irritated and wish there were a faster way to go through the steps? Do people say that you
explain things well? Are you sincerely interested in your clients and their level of enjoyment for
the program?

It takes a very special persona to become a fitness professional. Most trainers are caring and
enjoy helping others. A lot of understanding and empathy is required, too; understanding how
clients feel about their weight, their health, and their level of fitness is essential to motivating

29
them. Plus you must have a great deal of patience. Clients are often very vulnerable – a lot of
times their self esteem is typically not where you’d like it to be.

A WORD ABOUT SAFETY

Safety on the job means that you will know CPR and basic first aid, of course. It means that you
will take care to properly train your employees and require them to have first aid training, too.
But for a personal trainer, there are things that go beyond treating a bruise or knowing when to
call 9-1-1.

When training, you must always consider the safety of your clients. The IHRSA has established
guidelines that are designed to protect the health and safety of your clients. Be sure that the
certification classes you and your employees take are those that emphasize safety and cautious
business practices. Personal trainers must be careful not to diagnose or treat injuries, and they
must not train clients who have a chronic health condition unless they are specifically trained to
do so. City, state, and federal health codes all apply to your business. You also have to undergo
OSHA training and recordkeeping for blood borne pathogens. Luckily, most of the health codes
focus on proper signage, which is easy enough. Just make you’re in compliance. The NSCA
requires that you have a written response plan for the specific building in the case of injuries or
“reasonably foreseeable untoward events” (i.e. threats to health and safety). You may wish to
create emergency response plans for heart attacks, seizures, fires, floods, severe storms, even
terrorism.

EMERGENCY PROCEDURES:
FIRE
TORNADO
HURRICANE
EARTHQUAKE
MEDICAL
BLOODBORNE
PATHOGENS

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 When an injury occurs on your property, you must ensure that an Accident Report
(Sometimes called Incident report is filed). You will have specific guidelines if you fall under
OSHA, but in general, you should take the appropriate action to stabilize the situation and then
follow up with reporting. Incident reports will cover liability issues and negligence claims and
fulfill the state’s worker’s compensation requirements. In addition, these reports are a great
tool for managers to identify problem areas.
Slips, falls, and other injuries should be reported at once. This will ensure that recollection
will be accurate. Of course, you should wait until the person has received proper treatment or
is under medical supervision. Investigating quickly will enable you to get accurate details while
people’s memories are fresh, and witnesses and employees will still be on the premises.
You should already have a form prepared, and it should include fields for the injured party’s
personal information: name, address, phone number, driver’s license number, birthday, gender,
and status (staff, client, visitor, etc).
The accident detail field must include the date, location, and time of day the incident
occurred, along with a detailed description of what happened. This description should be
chronological and step by step so that you have all the information needed to analyze what
happened.
Another field containing the description of the actions taken by staff, witnesses, etc. is also
necessary. Again, detailed chronological information needs to be included (i.e. Staff Client A
phoned 911 and an ambulance was dispatched). This is usually the staff client who called, the
number and agency they reached, and that agency’s response. Typically the agency is the
police, sheriff, EMS, etc.
The physical injury field should include a description of the injury, document its cause (if
known) and record the name, location, and phone number of the doctor who treated the injury.
Names and contact information for all witnesses must be recorded. Even if they say they
didn’t see or hear anything, you should have them sign a statement to that effect. All
statements should be attached to the final report along with any relevant photos and/or
diagrams.
Finally, the last field should include the reporting employee’s name, title, phone,
department; supervisor (if applicable) and it should be signed and dated.
Accident reports must be filed with the appropriate state worker’s compensation office.
Internal reports should include an analysis of the cause of the injury and recommendations for
preventing additional accidents. The Incident Report should also include any company policies
for injuries. For example, restaurants often require employees to immediately take a drug test
if they are injured. If they refuse the drug test, or fail it, then liability and workman’s
compensation are moot.
Remember – stick to the facts: don’t use derogatory or inflammatory descriptions of those
involved. Pretend the report will be on a billboard, and censor your comments accordingly. To
further reduce your risk, have all statements and reports turned into your attorney before
distribution. He or she will best be able to protect you from liability.

31
WOULD YOU BE SUCCESSFUL AS AN ENTREPRENEUR?

In the book "the E-Myth" Michael Gerber tells us that the statement that entrepreneurs start
businesses is simply not true. Businesses are not started by entrepreneurs, you ask? No, they
are started by technicians who suddenly have an entrepreneurial moment. The person may be
motivated by low pay, a bad day, or simply a sharp idea.

32
This may be the same for you. You're a good trainer, so you decide to start a personal training
business. But do you really know how to run a business? And does the fact that you're a good
trainer translate into being a good business owner? Often, the answer is no.

Being a good employee and being a good business owner are miles apart. If you've never
owned a business before, you may wonder whether you have a true entrepreneurial spirit.
People who start their own business are usually leader types were good at making decisions.
They are also very hard workers, as owning a business is much more difficult than working for
someone else.

When you own a business, all the risk is yours. All the hard work is yours. There is no one to
blame for your failure. However, there is also no middle man who will take your profit. There is
no one who tells you what to do or how to do it. And there is no joy like that of owning a
business that is successful- and that you created from the ground up.

In order to decide whether you might be a good entrepreneur, ask yourself the following
questions:

CHECKLIST 2A: ENTREPRENEURSHIP

Are you a leader?

Are you a quick decision-maker?

Do you tend to take responsibility for finances, decisions, and outcomes?

Do you have a supportive family?

Do you have strong morals or ethics?

Are you willing to learn?

Are you willing to operate outside your comfort zone much of the time?

Entrepreneurs tend to be excited about seeking out new opportunities. They exhibit a great
deal of self-discipline and are very focused. They may be full of ideas, but as Sam Walton once
said, "most of us don't invent ideas. We take the best ideas from someone else." You don't
have to have the ideas, you just have to find them, then implement them in a successful way.

33
By the way, it's important to know that an entrepreneur does not have to be a workaholic. In
fact, that can actually detract from the ultimate success of your business. A good entrepreneur
will balance rest, recreation and work.

BURNOUT
It’s hard to imagine when you’re first starting out, but burnout can affect even the best trainers.
Changing your personality for every client is difficult, both psychologically and emotionally. It’s
kind of like having to act all day, every day; and while it can be fun for awhile, without breaks it
gets old fast. Your clients have high expectations of you and they are demanding, but you have
to hold on to a piece of yourself. What I mean is – even though you act differently depending
on the clients’ needs and personality, you still have to feel like you. Here are some key things
you need to do to prevent burnout:

● Stick to your schedule – don’t start at 6am and end at 11pm every day because
your clients prefer it. You can pick a few days a week to work late or early while
still giving yourself time for a life.
● Clearly label “off” hours – If you feel the need to give your clients all your phone
numbers and email addresses, which I don’t recommend, then make sure you tell
them when they may call. You don’t have to be accessible 24/7.
● Don’t under-price your services – there will be times when you question your
abilities, especially when dealing when difficult clients. Don’t let your fees
reinforce your insecurities. Besides, you need to charge what you’re worth and
live comfortably.
● Say no – Recognize that there will be clients who will drive you nuts, drain your
energy, and make you hate your job. If they’re consistent about it and you have
been unsuccessful in trying to change the dynamic between yourself and the
client, you must fire him.
● Train in groups – you’ll be able to still earn the type of income you seek while
working fewer hours than when training exclusively one-on-one.

Maintaining a balance between your professional life and your personal life is extremely
important. You can’t work all the time and still enjoy your job. Similarly, you shouldn’t
blur your personal and professional boundaries. It isn’t a good idea to “hang out” with
your clients after work, even though they may want to be your friend. The potential
problems from these kinds of relationships are numerous and they can be catastrophic.
34
 So make sure you schedule time off, turn off your phone every now and then, and pursue
other interests. That said, you still need to make time for seminars, conferences, and
lectures. It may seem like one more chore, but if you didn’t like learning about these
topics you wouldn’t have picked this field.

HOW THIS BOOK WILL HELP YOU STAY IN THE CAREER LONG-TERM
The industry’s retention of qualified personal trainers is low. This is due to both the lack of a
typical ‘career path’ and a poor foundation of business fundamentals, leading many personal
trainers to become frustrated and ultimately pursue alternative careers. Many people try it on
for size and decide to look elsewhere. Personal Training has recently become what being a
server or convenience store clerk has been in the past; people view it as a part-time job while
attending school or finding what they will do long-term.

As mentioned in the Introduction, the absence of business education limits most trainers’
earning potential, which means they have to work longer hours to meet their financial needs.
This leads to trainer boredom and burnout. It also presents an inferior quality of service for the
client. When clients don’t see fairly quick results, they lose interest—and you lose them as
clients. High turnover and low client retention are signs that you need to reconsider your
business model.

This book will help the personal trainer to create a true business model. The models that I
describe here are such that you can execute them, whether you are planning a one-person
training business or intend to hire multiple employees. Simply use each chapter as a blueprint,
and at the end of the book you will have a solid, proven business model.

CREDIBILITY FOR THE NEW PERSONAL TRAINER

As a new trainer, you may be nervous. You may have entered the field with little or no fitness
background. There will be a dozen times that you wonder why you got into this business in the
first place. (Fortunately, this all will pass in a few months.)

Here are a few ways that you can create instant credibility in the eyes of your clients and
potential clients.

Enthusiasm and Energy. These are two qualities that every client wants to see in their trainer.
Can you imagine what kind of message a lackluster, depressed trainer would send? Be sure you
are rested and relaxed when you meet with clients. Show them the boundless energy they want
to see.

Be committed. Of course every trainer has his or her own style, but you can demonstrate
commitment to the individual by being professional, arriving on time, and running sessions
during the assigned time slot. Clients also feel that you are committed when you offer new

35
information each week, whether it be an article you bring them, a handout on healthy eating
tips, or other related information.

Always act professionally. Your performance must always be above reproach. Whether you
choose to be Facebook friends with your clients is completely up to you, but you must always
keep in mind that now you are a business owner, and (at least in the client’s mind) you must act
like it.

Communicate. This is the easiest way to keep clients coming back, and if you don’t
communicate, it’s the easiest way to lose them. Stay in touch, let them know if you are going to
be absent or late, and keep them apprised at all times about their own goals and programs.

WHY PEOPLE FAIL AT PERSONAL TRAINING

If this is such a great field, you may be thinking, then why do people get out of personal training
so quickly. This is a valid question. Almost everybody knows somebody who has “retired” as a
trainer after 1, 2, or 5 years. First let’s look at why small businesses fail in general, and then I
will tell you what I think about the personal trainers who “retire”.

ENTERING THE INDUSTRY FOR THE WRONG REASONS

You need to have a passion for fitness, and more importantly, for helping people change their
lives. Chapter 13 will go into more depth on this, but basically you have to want this business to
work, not just make a quick buck and enjoy the perks of setting your own hours and being your
own boss. You need the mental stamina to deal with the administration of the business and
train clients and you need to be able to step into the role of a leader and hang onto it. Part of
being a leader is knowing how and when to delegate, but these decisions will rest on your
shoulders. So even if you have the ambition, you also need the tenacity, patience, and can-do
attitude that will help you make it through the rough times. You also need enough self-
confidence to learn from your mistakes and view them as a lesson, not a defeat. Lots of
businesses don’t make it because the entrepreneur saw a small problem as a sign of failure and
didn’t take the steps necessary to overcome the issue.

UNREALISTIC INCOME EXPECTATIONS

Start-up businesses often do not realize significant profits until they’ve been in business for 1-2
years. Keep this in mind when reading the following sections on pricing, income, and working
capital.

INSUFFICIENT MANAGEMENT SKILLS

36
Every business needs proper management to succeed. This may be challenging without prior
experience and education, but it can be done. The most important factor in management is to
pay attention – to everything. Business owners need to know how to handle finances,
purchasing, selling, hiring, and training even if other employees handle these tasks or if you
outsource them. This is because you need to have accounting controls in place to verify that
the information you are receiving from them is accurate. The last thing you want is someone
stealing from you. And that’s only the financial management—a portion of the overall
business.

POOR PLANNING
Managers must periodically review everything. This includes policies, contracts, your market,
general demographics, target demographics, client data, etc. Before reviewing this, though,
you need to make sure you have current and accurate data. Vet your sources and keep
apprised of the competition, recent trends, and how your financial forecast compares. You
have to be able to adapt to changing markets and client demands. Keep up with new
information, new technology, and new areas of interest. Maybe one of them will appeal to you
more than what you were doing, you never know.

Other major causes for business failure from poor planning:

Too much debt

Lack of reserve funds

Overspending

Underestimating Competition

Bad Client Service

Ineffective Marketing

Location

No Web Site

So, you can see that most of these problems can be avoided with careful planning and research.
The following chapters should teach you how to be successful, but don’t be afraid to ask
accountants, lawyers, etc. for advice and help. You can never have too much information. I
think that personal trainers don’t make it because of the following:

LACK OF CLEAR DIRECTION

37
Part of the real reason that trainers don’t stay in the fitness industry for long is there is no real
career path. Many people who potentially could be successful personal trainers choose other
careers because of the perceived lack of a career ladder and the modest average income. There
is not a great deal of business education from the certifying bodies, and the education that is
received is not followed up with real direction or guidance. It’s essentially left to a handful of
consultants in the industry to coach and guide people who choose to go out on their own.

Perhaps as a result of the lack of guidance, many trainers fail to set clear, measurable goals.
Goal setting is one of the main functions of the business plan, which we will cover in Chapter 4.
Businesses that have a written plan with realistic, achievable goals tend to stay in business;
those that do not are the ones that usually go under.

LIMITED INCOME
Unfortunately, the average personal trainer makes less than $27,000 per year. But you don’t
have to be stuck at this lower level of income! In the January 2003 IDEA Health & Fitness
Source, client businesses reported that the average session fee was $50, and the clubs saw
about 16 clients per day for personal training appointments. That’s over $200,000 gross,
working only five days a week for 50 weeks out of the year!

But by being at the “average” income, most trainers find that the job is not satisfying to them. If
you read this book and take the time to fill out the questionnaires and utilize the free sample
forms, you will have a great start to becoming financially well above average in this business.

There are many positives to being a personal trainer. You get to work in an environment that
you enjoy. You get to serve and help people, and you are working for a good and noble cause.
For all the upside, though, at the end of the day you still have to pay the bills. Without the
career path and logical progression that people would follow in most other fields, there is a
dramatic turnover rate. One leading fitness professional pointed out that a great deal of the
cost associated with personal training has to do with trainers who simply pay too much for their
equipment; having never been trained in purchasing and sales, they have no idea how to find
the best prices for the products and services they use every day.

For this reason, I have included sections on choosing equipment and paying employees as well
as many worksheets to help you develop solid figures. “Knowing the numbers” is a part of the
path to success as a business owner. Because I and many of my colleagues have learned the
hard way, I am able to give you a shortcut to personal training business success.

LACK OF RELATIONSHIP TO CLIENTS

This could include not following up on a client’s question, not behaving professionally, not
training the client too hard, or not challenging him/her enough. Much of your success does not

38
depend on your skill, knowledge, experience, or training; it depends on the way that you relate
to the people from whom you get your income.

LACK OF DRIVE
An entrepreneurial personal trainer is forced to wear many hats if he or she wants to be
successful. Learning all you can about physical conditioning is simply not enough; you must also
prepare to be a good communicator, a great motivator, and teacher. Besides that, you must
understand basic marketing concepts and business structure. You must be willing to take on
legal and ethical responsibilities. You must become certified and maintain your certification.
You must design a safe, functional program for each client.

Most of all, you must be a dedicated entrepreneur. Many people lack the drive for some part of
this; for example, you might be a great communicator and really driven to share all your
knowledge with clients, but you know that you don’t have what it takes to run an entire
business. Or maybe you have the entrepreneurial spirit, but your personality does not make
people believe you are best suited to help them persoanlly. You might even have almost all that
it takes, but you are very new and inexperienced—so you don’t have the knowledge yet. (Don’t
worry. You will.)

This may sound like an exhaustive list of reasons not to become a trainer. Hopefully it hasn’t
scared you away from the fitness field! You can easily become a personal trainer if you are
willing to invest some time in learning about both physical fitness and business, if you are
willing to invest a small amount of money, and if you are truly excited about the field.

CHECKLIST 2B: DO I HAVE WHAT IT TAKES?

After reading the first two chapters of this book, you should have a clear idea of the attributes
that help you become a successful personal trainer. Answer the following questions honestly;
Remember, there is no right or wrong answer.

1. My abilities in the area of fitness are:

______________________________________________________________________________
______________________________________________________________________________
___________________________

2. Jobs that I have held that will help me perform as a trainer are:
______________________________________________________________________________
______________________________________________________________________________
___________________________

39
3. Jobs that I have held that will help me run my own business are:

______________________________________________________________________________
______________________________________________________________________________
___________________________

4. List the special knowledge you possess that will make you better than the average trainer:

______________________________________________________________________________
______________________________________________________________________________
___________________________

5. Explain what you believe creating a business model entails.

______________________________________________________________________________
______________________________________________________________________________
___________________________

6. Examine the list of reasons why many fitness professionals fail. Explain which ones might be
your weakest points.

______________________________________________________________________________
______________________________________________________________________________
___________________________

______________________________________________________________________________
______________________________________________________________________________
___________________________

Chapter 3: Choosing Your Niche

This chapter will help you to identify exactly which area of personal training you will focus on. A
niche is the specific segment of the market you plan to serve. This is probably the most
important chapter in the book, because selecting your niche is the most important decision you
will make. It will determine which clients you work with, how you structure your business, and
your marketing techniques. It will dictate, in a sense, how much money you make – because if
you select a niche that doesn’t really exist in your area, you will have a hard time filling your
schedule!

40
The beauty of the business as well as the downside of it is that you get to decide exactly who
you will serve. I say it is both a positive and a negative because it is possible to choose the
wrong niche for one reason or another and begin to truly dislike your clientele or the work you
are doing for them all day every day. This will cause your work to become boring; you will lose
interest, and your clients will notice. In this regard I think it is important to put a great deal of
time into choosing your niche.

WHY CHOOSE A NICHE

Why choose a niche at all? Because by creating a niche lets you focus on ONE area of expertise.
You are able to form a memorable “brand” (identity) for yourself. You clarify for the public who
you are and what you do. You make it easy for them to remember so that if they come into
contact with someone who could benefit from your services, they can help you generate
business. And of course, if “everybody else” in a crowd has you as their trainer, so will the
others.

Selecting a niche helps you, too. You spend less money on marketing if you have a niche,
because you focus on a narrower slice of the market. You are able to develop plans that will fit
most of your clients, instead of reaching out to every age group and ability. You’ll become
known as the expert.

What niche you select is truly critical to your success and happiness, so the choice you make
should be given plenty of careful attention. Don’t use it as an excuse for not moving forward
with your plan, of course, but with care you can pick a winner.

HOW TO CHOOSE A NICHE

PERSONAL PREFERENCES
The first thing to do is brainstorm as many potential ideas for a niche that as you can come up
with. Think of those that would fit with your lifestyle and business model. Use a blank notebook
and pencil, and write down every idea that comes into your head. (There are some listed later
in this chapter, if you can’t think of any)

Don’t stop and think about each choice during your brainstorming session; right now, you are
just generating ideas—not evaluating them. Even if it is an area you feel like you have no
knowledge about, write down everything that comes to mind.

Next, look back over your list and ask yourself some questions:

With which groups do I enjoy spending time?

41
What conversations do I have that really interest me?

When reading about fitness, what publications do I gravitate toward?

What area of fitness did I work in before? What did I learn there?

What fitness area is one that I would like to learn more about?

What do I know most about in terms of fitness?

What experts do I have access to? Which niche would they fit with?

What problems have I solved for clients in the past?

What problems do I enjoy solving them most?

Deciding what kind of business you want to have is kind of easy; staying within that niche can
be very hard. “But I don’t need to specialize,” you say, “I plan to work with everybody.” That’s
an old-style operating method that doesn’t work. It’s a broad, unfocused business plan—in fact,
let’s call it the UnPlan. If you’ve said that (and 50% of newcomers do) you are falling for the
marketing strategy of the 1980s: design for the masses, and they will come. The problem is that
you don’t want the masses. You’re running a personal training business; you want individuals.
Think about it: when you have a problem with your furnace, do you call a handyman or do you
call a furnace repairman? When you want your house cleaned, do you call a commercial
cleaning company or the local maid service? The same idea applies to your fitness business. You
need a small, well-defined niche that is your own specialty.

Now that you’ve made a list of answers to the brainstorming questions, ask yourself one more
question: what does your ideal client look like? There’s a saying in marketing:

Passion = profit.

That means whatever your passion, the thing that you love, whatever gets you really excited is
the thing that is going to make you money. If you are in your twenties but you love working
with older people, that’s great; you’ve found your niche. Perhaps you really like helping young
up-and-coming athletes get into top form. Congratulations! You’ve found your niche. The
discovery of a niche is somewhat like peeling an onion; you remove layer after layer until you
find the group of people that, when you work with them, get you excited.

42
Picture this ideal client in your head. Some people even cut a photograph out of a magazine to
keep as a visual of their “perfect” client.

Once you have come up with an idea of who you like to work with, you have not necessarily
found the perfect niche. Sometimes this isn't enough; you have to be sure that this is the
person you want to work with day in and day out.

Imagine interacting, talking with, and coaching this person during a session. Now ask yourself,
does your personality fit with that ideal? Can you speak the language of this prospective client?
Will you be able to build rapport with him/her? Are you knowledgeable enough in your field to
be able to make this person feel confident in your ability to work with them?

Furthermore, do you like the prospective clients? There is not much point in selecting a niche if
you are not going to enjoy your day-to-day interaction with the clients!

If you’ve worked all the way through this exercise and you’re sure about where you’re headed,
good for you; you’ve found your niche. If you feel that some pieces of the puzzle don’t fit, it
might be best to go back and start over. For example, you think about training young moms,
but when you actually imagine interacting with them, you realize that you don’t have a lot in
common. The language they use seems foreign to you, and you’ve never been a mom before.
I’m not saying you can’t teach mothers unless you’ve been one. What I am saying is that if you
feel uncomfortable with any part of the process, it is important that you step back and take a
second look.

Remember: passion = profits. If you want to succeed at this business, you absolutely must love
what you do – the clients, what you’re doing for them, and your business. When you love
everything about it, you will jump out of bed in the morning, eager to get started. You’ll look at
your client list and say, “oh, good, today is Mrs. Rogers.”

If that isn’t how you feel just imagining the business, there’s something wrong. It is best to go
back to the beginning of the exercise and try on a different niche.

**Note: there is one case in which you might feel uncomfortable that should not be a concern.
If you are brand new to the business, you might have a good sense of your niche. You might
speak their language, understand how they think, and know how to motivate them. But when
you imagine working with them as a trainer, you feel nervous. This can be due to the new
situation, and perhaps the newness of leadership. It doesn’t mean you should not pursue the
career or the niche. Learn to rise above your fear, and you’ll be past it in no time.

A GREAT EXAMPLE
43
Here is a great example of someone creating a successful fitness-related niche business. From
2000-2005 personal training really picked up steam as a profession and was becoming a far
more competitive market than ever before.

During those years, youth fitness was simply treated as a scaled down version of adult fitness.
However children are not simply ‘little adults.’ They have their own unique programmatic
needs and those needs were not being met by the industry. Brian Grasso decided to create a
youth specific certification organization, the International Youth Conditioning Association,
focusing on educating professionals specifically about addressing the needs of the youth
market.

By scaling down and laser focusing on one category (niche), youth fitness, the IYCA was able to
serve a targeted group of prospective professionals without having to spend the advertising
dollars necessary to appeal to the entire mass market. Brain simply pursued a targeted market
that he was passionate about and developed an organization to serve them. It was a market
that was large enough to create plenty of profit for the company, yet one that no one had
tapped into yet.

You aren’t starting a certification organization, of course, but the same concept applies to
selecting a niche for your fitness business. Please don’t be tempted to skip over this section;
this is the business side of forming your operation. You will select your niche, then study the
market to make sure it is a viable idea. Then you make your concrete plan and put it in writing,
sort of like carving it in stone. This may sound like it’s very complicated, but in fact it follows a
series of simple steps:

Choose a niche.

Passions = Profits.

Identify competitors.

Find your target market.

Write your business plan.

If at any point during the process, you discover that the niche is not viable – say it is too
narrowly defined, or it has too much competition already—simply start again at the top. Keep
going through the steps until you find the perfect niche for you; then solidify your plan by
writing out your business plan. Chapter 4 will guide you through it.

44
If I were starting out I’d open a low risk, low overhead business like starting a fitness bootcamp,
paying a gym or a studio a percentage of my revenues and training clients at their space. Or I
would consider opening a ‘warehouse’ studio and keep my rent and equipment costs to a
minimum.

45
 The Youth Fitness Niche

As with any young industry, the opportunities for Personal Trainers within the world of Fitness
and Sport continue to evolve and broaden. Consumer trends and demands from the
marketplace have brought about changes, to name a few, in client-trainer ratios (one-on-one
versus small group), billing (pay-per-session versus monthly retainers) and even session location
(health clubs versus outdoor Boot Camps).

But what has become a rather unexpected evolution is the advent of an entirely new
demographic.

According to MSNBC.com, roughly one millions children and teenagers hired the services of a
Personal Trainer in 2006. The Wall Street Journal reported in their November 2004 edition, that
as much as $4 billion is spent every year, in the United States alone, on personalized training
and coaching for kids.

This new demographic is likely due to a confluence of events that has seen market demand for
youth-based services soar industry wide. According to the American Obesity Association, more
than 30% of children and teenagers in the United States are considered overweight or obese.
Those numbers rival worldwide trends. Additionally, as the need for increased fitness has
ballooned at the youth level considerably over the past two decades, school-based physical
education – once considered a mainstay and necessity for proper holistic development – has
been sharply cut by School Boards worldwide.

The result has been a staggering plead from the marketplace for private practice facilities and
programs that cater to the needs of children and teenagers with respect to proper and
developmentally-sound fitness.

Brian Grasso, Founder and CEO of the International Youth Conditioning Association, has been
on the frontlines of this new trend since its initial emergence in the late 1990’s.

“Initially, I believed it was a trend that would peak and eventually die off. But it didn’t. Kids
just kept walking in my training center door”, said Grasso.

The International Youth Conditioning Association was established in 2003 as a certifying agency
within the Fitness and Sport Training industry, educating Personal Trainers, Fitness
Professionals and Allied Health Professionals as to the specific scientific and practical aspects of
working with children ages 6 – 18.

As the ‘youth-trend’ continued industry-wide, the IYCA became one of the fastest growing
certifying agencies in the entire industry, now boasting over 2,000 certified professionals
46
worldwide.

Personal Trainers with acumen for business will clearly recognize that the youth market
represents a literal perfect storm in terms of revenue potential and stability. There are
IDENTIFY COMPETITORS
Next you will attempt to define who else is in the industry that you will be directly competing
with. Some people call this “choosing your fight.” If the niche you’re going into has some real
heavy hitters—a local TV personality who’s a personal trainer, or someone who writes a regular
column in a health magazine, you will face a great deal of competition. Don’t let that scare you
off! Having competition is a good thing. Great businesspeople welcome competition; it helps
them stay razor sharp and laser focused. Besides, there are people who will come to you
because they don't like that person, because you are more convenient or have better hours, or
even because they like to do business with the underdog.

Having competition does another positive thing for us as personal trainers: in a business that is
not terribly well known yet, our competitors help ease the way by educating the public on why
they need trainers! Then the clients come to us ready to do business.

You probably already know who your competition is, because you have been active in the
fitness scene. If you don't know or if you're new to the area, simply call around to the gyms and
ask questions. Find out who the trainers are, how much they are charging, and what their
specialty is. Try to find out who the most popular trainers are and why (this may take a little
more sleuthing).

Even if your focus is individual fitness, do not overlook clubs or classes that serve the client the
same solutions to their needs in a different format. Your competition is anyone who fills the
same client needs; this is much like the owner of a movie theater, which would identify video
rental store as part of its competition.

ANALYZE YOUR COMPETITION

Using these criteria:

Price

Location

Facility

Strengths/weaknesses

Strategies (for attracting clients)

47
There are always going to be businesses that sell the same services as you. You just want to
make a better deal. Not necessarily by offering the lowest price, but by offering very best
service. We’ll talk about this more in Chapter 11.

DETERMINE IF FEASIBLE
Feasibility tells whether your program is able to justify itself from a financial point of view.
Remember that right now, we are only determining feasibility for this particular niche. It’s okay
if you decide it isn’t feasible; in fact, that is exactly why every business owner should go
through this exercise. (Remember, if it’s not, go back and start the niche selection process over
again.)

In order to determine whether your program is feasible, you need to consider the following.
Even if you have never operated as a fitness professional before, go ahead and fill in a number
that is as close as possible to what you believe will be true. If you can, ask a personal trainer
who you know to help you decide these factors:

Your pricing $________ per session

The number of clients you can reasonably expect to serve per session.__________

The number of clients you can reasonably expect to have. __________

The number of hours per / sessions you can deliver day you can put into the job: ___________

Multiply the number of hours / sessions per day times the number of days you intend to work
per month: ________

Now multiply that number by your hourly / session rate to get your monthly income:
____________

Now let's calculate expenses:

Expenses, monthly: ____________

Taxes (quarterly, divided by 3) ___________

Other costs associated with your program such as child care if you have children
(monthly):_______

Total costs per month: ___________

48
Income minus costs: _____________

Can you live on this amount?

Hint: Don’t price yourself out of business!

Year after year, personal trainers come and go because of one big mistake: they price their
services too low. There is a cost to your service, and if you do not calculate that into your price,
you will go out of business. Do not set your price by charging exactly the same the other guy is
charging. Worse yet is setting a slightly lower price so that you gain new clients by
undercutting someone else. Trying to offer cheap service will not work; you are a business
person now, and you have your own costs to cover.

One big problem with the price being too low is that you won't be able to purchase equipment,
take certification classes, or subscribe to publications. All of these would in fact raise the
salability of your program. Being innovative will help your bottom line, because you’ll be on
the leading edge of the business. But by setting your price too low, you won't be able to afford
them.

Here’s a real-life example of a startup personal training business’ expenses:

Expenses

Business Creation: Amount Recurrence

Business Insurance $189.00 yearly
Business Registration $54.00 yearly
Business License $135.00 yearly
Total Business: $378.00

Legal Services:
Contracts $216.00 one time
Incorporating $162.00 one time
Total Legal: $378.00

Office Supplies: Type Quantity Cost/Unit Recurrence

Computer(s) HP Desktop 1 $600.00 one time
Software MS Office 1 $300.00 one time
Software Volo Client Mgmt 1 $75.00 monthly
Phone Cell 1 $90.00 monthly
49
 Printer Varies 1 $150.00 one time

General Supplies:
Furniture (all) Desk 1 $280.00 one time
Fixtures Whiteboard 1 $42.00 one time
Total Supplies: $1,537.00

Exercise Equipment Quantity Retail Franchisee Total

Cost Each Cost Each
Poly Balance Beam 4 $86.35 $68.04 $272.16
Airex Balance Pad 5 $64.75 $51.84 $259.20
Balance Steps 4 $59.35 $48.60 $194.40
EVA Foam Roller 5 $43.15 $35.64 $178.20
EVA Posture Ball 5 $24.79 $19.44 $97.20
Valslide 5 $43.15 $32.40 $162.00
Cook Band 2 $43.15 $35.64 $71.28
Cook Band 2 $43.15 $35.64 $71.28
Cook Band 1 $43.15 $35.64 $35.64
Thera Band 1 $13.99 $10.80 $10.80
Power Block Club (5-90lbs) 1 $1,398.60 $1,182.60 $1,182.60
Power Block (5-45lbs) 2 $322.92 $286.20 $572.40
4k Vinyl Kettlebell 2 $37.75 $28.08 $56.16
8k Vinyl Kettlebell 2 $53.95 $38.88 $77.76
12k Vinyl Kettlebell 2 $64.75 $47.52 $95.04
Travel Stick 4 $32.35 $24.84 $99.36
2lb Slam Ball 4 $39.91 $28.08 $112.32
2lb Elite Med ball 3 $26.95 $19.44 $58.32
4lb Elite Med Ball 2 $32.35 $22.68 $45.36
10 Ball Med Ball Tree 1 $129.55 $96.12 $96.12
Smarthurdle set of 6 (6") 2 $102.55 $85.32 $170.64
Lifeline Power Jump Rope 15 $13.99 $9.72 $145.80
12" G2 Foam plyobox 2 $398.52 $355.32 $710.64
Sled Dawg 4 $183.55 $145.80 $583.20
Sidestep 2 $43.15 $34.56 $69.12
York Power Rack 2 $1,182.60 $1,074.60 $2,149.20
10lb Rubber Bumper (pair) 2 $97.15 $79.92 $159.84
25lb Rubber Bumper (pair) 2 $140.35 $113.40 $226.80
45lb Rubber Bumper (pair) 2 $226.75 $183.60 $367.20
1500lb Olympic Bar 2 $268.92 $214.92 $429.84
Lock Jaw Collars 2 $48.55 $38.88 $77.76
First Place Turf ($sqft) 600 $7.51 $5.39 $3,233.52
Total (excluding
freight) $12,071.16

50
 $14,364.1
Grand Total 6

DEMOGRAPHICS -IDENTIFY YOUR TARGET MARKET

In the worksheet above, identifying your target market requires a lot more than just deciding to
your clients "might" be. Your research should begin with checking the demographics, or the
makeup of the population in the area you want to target. Depending on the size of the town or
city you live in, you might designate a target area 25 or 50 miles wide. You can do this easily by
taking a map and drawing a big circle around the gym or club you intend to work in. If you’re
going to work from home, make the center of your circle your own address.

To find the demographics of the area you just circled, try doing a Google search online for your
city or county. You want to know the population's makeup in terms of gender, age, income
level, and familial status (whether they are married or single, and whether they have children).
The US Department of Commerce publishes a Country and City Data Book, which might be just
the resource that you need.

Why bother looking at demographics? Because you want to be sure that your niche exists
within your geographical location. If your ideal niche is mothers of babies, and the age of most
of your population if 50+, it might be time to re-think the niche. If there are 5,000 young
mothers in the area, but they’re spread over a 100-mile radius, they may not be willing to come
to you—or you may not be willing to go to them.

You need to put a lot of thought into where your target clients live and what that means for the
way that they travel. In some larger metropolitan areas, it is common to drive thirty minutes or
more to get to a fitness facility. In other areas, no one would dream of going that far.

If you're planning to train clients in their own homes, you will need to think about the distance
in terms of the way that your travel instead. Traveling longer distances will mean more wear
and tear on your vehicle and higher gasoline costs, as well as more time spent on the road.
Don't forget to include your time in the expense calculations!

CREATING YOUR CLIENT PROFILE

In addition to learning about the demographics of your community, you will also want to
consider what type of activities these people participate in, so you can see whether they are

51
spenders or savers with their money. In areas with a larger amount of disposable income, more
is spent on eating out, luxury items, and “extras” like gym memberships—and personal trainers.

Looking at the demographics of your locale, try to determine from their group behavior why
they might want to use your services. Do they want to one-on-one or semi-private training?
Are fitness bootcamps popular? Does the community have many youth fitness offerings? You
can answer these questions by looking in the local newspaper or the telephone directory. Some
areas will have many health clubs and training facilities; others find that fitness bootcamps are
more popular. Again, this is all linked to demographics and income levels.

Do most of the people in your area work during the day? If so you will need to be available
early in the mornings or in the evenings to train them. Is there a sizable market of stay at home
moms? Maybe you can meet with them during the daytime, but then there may be child care
to consider. This isn’t your area of expertise of course, but if it is something for which you can
offer a solution, so much the better. (Remember, providing child care requires meeting certain
guidelines. Check with your respective state for details.)

Talk to everyone you can who is a member of a health club or uses a trainer. Find out what the
local clubs are doing and what members wish they would do. That way you can design and
market your program accordingly.

Once you've gathered all this information, create a "client profile." From this you can devise a
focus statement (below) describing your target market. Use the statement and the profile as a
guide to decide exactly what services to offer, how to advertise, how much to charge, but in
what direction you will take the business in three, five, or 10 years.

CREATING YOUR NICHE STATEMENT

You know that you have arrived at a viable, narrow niche when you can say: My name is
__________and I am a personal trainer in the __________field.

By the way, a lot of trainers describe their business like this: “My name is Ralph Smith, and I’m a
personal trainer.”

That’s a big blow to your business, because you’re skipping out on a terrific advertising
opportunity. Instead, every time you talk about what you do, mention the clients you serve:
“I’m a personal trainer to women over 40.” “I specialize in helping moms get back into shape.”

52
These statements enable the person you are talking with to imagine people they know enjoying
your service—so they’ll tell them about you.

My client profile

My client, who I will call ___________, is ______________years old. He/she has __________
(number) children and is (married/not married). His/her income is ___________ per year.
Having a personal trainer is (check one) ___________ difficult, because of finances
___________ normal in her way of thinking _____________ a must!

This client will probably remain with the trainer for __________ years. He/she prefers (check
one) _______group _____ private instruction. The level of training he/she has at the outset is
___________ and the level he/she will end with is _____________.

SOME NICHES YOU MAY CONSIDER

Fat Loss

Muscle Gain

Women’s Fitness

Mom’s Fitness

Senior’s Fitness

Sports Performance

Youth Fitness

Corporate Fitness

Pregnancy fitness

Postpartum fitness

In-home training

Rehabilitation

Fitness for physically limited individuals

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ENTREPRENEUR OR EMPLOYEE?

If you are reading this book, you are probably considering going out on your own. But there is
no reason you can’t work for someone else. When deciding whether to work for someone else,
there are many pros and cons to both sides. Often, personal trainers are very committed to the
services they offer, and they feel discouraged by the perceived lack of concern on the part of
the employer, especially if it is a health club. They feel that clubs are interested in sales only,
and have little interest in actually helping clients to achieve results.

On the other hand, becoming an entrepreneur can be costly and risky. By offering services in a
health club, you have almost a built in clientele, up-to-date equipment at your disposal to use,
and the facility to work in. You may even be able to benefit from the clubs other offerings like
child care that allows you to work with more parents that otherwise couldn’t have found time
to meet with a trainer.

The positive side of working for yourself is that you have complete independence and complete
control over the type of service(s) you offer. You can set your own hours, create your own
niche, and easily drop the parts of your program that are not working without answering to
anyone else (except the client.)

If you truly cannot decide whether to work for someone else or become an entrepreneur, my
suggestion is to try both. Affiliate yourself with a health club, but do not agree not to take on
private clients. Many clubs will not require this, anyway. Set a time, perhaps a year from now,
as your goal to decide which one is right for you. It should become clear whether your business
works better as part of the club setting, or you are itching to go out on your own.

Normally you will receive less compensation per session in a club than you will for training at
your client’s location. However, by training in this manner you're in front of prospects every
day, building your reputation and your perceived value-- daily. And choosing the right club may
even give you a little bit of prestige. At the same time you're building a private business that
allows you independence, and gives you the chance to see whether you'd like to be out on your
own. You can train as many clients as you want to "on the side" and not have to share the
money that you earn. This is not the way to jump in with both feet, but it is a sensible way to
build a business over time and eventually settle in to the perfect niche, without having invested
a great deal of money or causing yourself to take a large risk.

54
Fitness entrepreneur Nick Berry
started in a gym.

Gyms pressure trainers to sign

people up for personal training,
but their focus is only on sales.
There was low quality client
service, poor results, and no
relationship with clients. This
resulted in a high turnover of both
clients and personal trainers.

I think gyms didn’t understand the

importance of long-term clients
and benefitting from backend
sales. Now, they are more unified
to sell memberships and PT
programs together because
someone is probably more
comfortable buying from someone
they’ve purchased from before.
The same principle applies to
programs, supplements, and
apparel, also.

As far as pay, gyms hire as

independent contractors, and it
isn’t unfair for gyms to take a 20-
25% cut of client rates. Based on
the lack of results the clients were
getting, we shouldn’t have been
paid at all.

Whether you start out at a gym or

a personal training business, you’ll
be fine as long as you surround
yourself with professionals who
understand client needs/wants
and how to deliver results.

55
WHAT ABOUT FORMING A PARTNERSHIP WITH THE CLUB?
Sometimes club owners are unhappy with trainers who take on “their” clients as private clients.
They feel as if they have generated the new members through their marketing efforts and that
they have other costs invested as well. They believe that they are offering you a great
advantage by "giving" you constant exposure to respective clients. If this is the way your club
owner thinks, it's time for you to take control and create an arrangement that works better for
you as a trainer.

Here is what you can do. It's one of the best ways to work out something that's reasonable for
yourself as well as the club. Approach the club owner and propose an arrangement where your
personal training revenue is split 80/20 to 70/30, with you getting the larger portion of the split.
Explain that you will provide initial consultations to new clients at no cost to the club or the
clients. You will use these consultations to generate clientele, and in turn the club owner can
receive even more revenue by offering your services. Better yet, instead of clients believing
your training program is just part of the package, it suddenly has value to them. By developing
this relationship with your health club, you can build your own reputation and revenue so that
your private business takes off while staying in the good graces of the club owner.

In fact, if you can secure exclusive rights to providing personal training for the club you can
build a substantial business in a relatively short period of time.

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Part II: Getting Started
Chapter 4: Planning your Business
You have decided to go into the personal training field, and you’ve chosen your niche. It is
tempting, once you’ve gotten a terrific idea, to jump in with both feet. But now is the time to sit
still. Starting the business at this stage is not only a bad idea, it is a terrible idea. People who
jump into business without thinking it through are the ones who fail. In this chapter, I’ll show
you how to analyze the idea, the industry, and your market. Then I’ll show you how to write a
great business plan. Only 44 percent of businesses last beyond 4 years; many of those fail
because of the lack of a business plan. By planning your strategy, you can stay on top of the
game.

ANALYZING YOUR IDEA

Hopefully you are using this book as a true blueprint, and you already did part of your analysis
in chapter 3. Now it is time to dive into true market research. Research is critical to your
business. Before you spend a great deal of time and money on a company that will ultimately
fail, perform research so that you can make sure the idea makes sense. Analyze it just is a large
company would, with the willingness to change directions if the research shows that it is
necessary.

The big question is this: Is there a need for your business?

Having a great idea doesn't matter if there's nobody around to enjoy your proposed service.
Before choosing a business name or spending money on training, study the market to be sure
you have a viable idea that will thrive, one that will keep you in a steady stream of clientele.
You do this by gathering information about the people who are within driving distance of your
potential business. The results of this research will show you whether there is a great enough
demand for you to actually quit your job and start a personal training company.

Here are some general questions that will help you analyze your idea:

Describe your ideal client: _______________________________

How many of these clients exist within a 20 minute drive of your business location?

Is that enough for you to open a business?

What are the needs of these clients?

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Are they being serviced by other businesses that already exist?

How would you serve their needs better?

Who is your competition?

What are they doing right/wrong?

How is your business different?

What would make your potential clients leave the competitors and come to you instead?

How will the trends in the industry (see Chapter 1) affect your business?

LOW-COST WAYS TO ANALYZE YOUR MARKET

The best results for market analysis come from hiring research firms to study the business.
These firms conduct other telemarketing or direct mail research and report the results to you.
However this type of analysis is very expensive and impractical for virtually all personal trainers.
There are other ways to approach the market study that may take a little time, but they're very
low-cost.

CONDUCT PERSONAL INTERVIEWS

When conducting interviews, you'll want to speak with both clients and other trainers. That's
because you want to know not only what is offered, but also about the rental facilities, costs,
and the response to programs that are currently being offered. This is more in-depth than the
telephone interviews performed in chapter 3 when you were just calling around to find out
about other trainers’ pricing.

Usually you will get better response from interviewees if you can get several together in a
group. They will start answering your questions, then giving more information and insight, and
before you know it you have all the answers you need. If you have friends who are currently
participating in personal training, consider "bumping into them" as they leave their current
facility. Hopefully, you will catch them with a group walking out and you will be able to ask all

58
the questions you want. They can give you the insight you need, and often offer even more
information you hadn't thought about yet.

GO ONLINE
It is easy to perform a lot of exploration in the field by using the Internet. Simply type “(your
city) personal trainers” in a search engine, such as Google. Explore the links that look
interesting to you. At each website, take note of all classes that are being offered, prices, and
the way these people run their business. Be sure that you stay in your geographical area so that
the information you gather applies to your business.

There are several online resources that are designed to give you industry specific market
information. Here are just a few:

The American Marketing Association www.Marketingpower.com

Market Research www.marketresearch.com

American Demographics www.inside.com

TALK TO THE LOCAL CHAMBER OF COMMERCE

The local Chamber of Commerce office normally keeps information on hand about the local
area, demographics, and trends. The information you gather here will be vastly different from
the data you gathered online. The online data was industry-specific. The data you gather from
your locality is about the other side—the potential clients for your facility or service.

Visiting with the Chamber promotes another positive aspect – it is your first opportunity for
networking! By talking with the Chamber of Commerce about your idea, word will begin to get
around that you are considering opening this new business. Usually word spreads like wildfire
in such an organization because of course all the members are interested in new businesses
coming to the area.

Some entrepreneurs are afraid to tell other business owners about their idea; they won’t reveal
their reason for inquiry to the Chamber of Commerce members, for example, because they are
afraid that someone else will steal the idea. Trust me, if you have put this much time and effort
into becoming a certified personal trainer, if you have worked at excelling in your field, there is
no reason for such fear. First, it’s pretty unlikely that anyone would actually do this. And

59
secondly, by the time you finish all the chapters of this book, you will be so well prepared that
you will welcome competition, knowing that you already have an edge on them.

FINDING YOUR POTENTIAL MARKET

The next part of market research is finding out how many people are prospective clients for
your business. When determining your market, the numbers you use need to reflect realistic
data of people who will use your services. Let’s say that you have gotten your relatively new
personal training company started, and you're trying to calculate the market size for your
business. You assume a market capture growth from 1% to 10% over your first five years in
order to predict the revenue. The numbers you are using are huge.

There's a mistake in this type of analysis, and the same error occurs time and time again across
many different industries. The problem is that although you may have figured out how many
people fit into your target market and within your location, you have not learned yet how many
of those people actually need and want your product. Your potential market is not all one
million women between the ages of 25 and 35 who live within three hours of your city.

In order to build a proper business model, you can't define your market by some figures you
pulled off the Internet, or by cutting and pasting data you culled from some other trainer.
Instead, use only what you know about your market. If you have competitors, your available
market is the portion that all of them currently serve. Your geographic reach should be a
reasonable driving distance from your current location. Nobody expects you to achieve the
exact numbers you propose in your business plan, but you'll be better able to understand your
actual costs and better able to reach your goals if you are able to defend the numbers that you
create.

THE BREAK-EVEN ANALYSIS

No one can predict whether their business idea is going to be profitable or not. But that should
not keep any startup owner from researching the soundness of their idea. In a break-even
analysis, you are looking at the financial soundness, so that you can get idea of whether your
business will be able to succeed.

The break-even analysis will tell you how much money you must bring in each month in order
to cover your expenses. Remember, this is before you make any profit at all. If you are able to
reach and then surpass your break-even point, then you will be able to start taking in income.

60
To look at it another way, if it is easy for you to bring in a greater amount of sales revenue than
you need to make expenses, then you stand a good chance of being able to make money in the
fitness business. As a successful fitness business owner myself, I can assure you that it is
possible.

Many successful business owners use the break even analysis as a screening tool before they
begin a new business venture. If the breakeven forecast does not show that projected sales
revenues outweigh the cost of doing business, they won't even finish writing the business plan.

A breakeven analysis uses good guesses about expenses and projected revenues. This requires
serious research, which I hope you are ready done in the previous chapters. Books on creating
business plans and software programs can also help you to make projections about expected
income and costs.

What will you estimate?

Fixed costs-these are easy, bear the costs that do not change very much from month to month.
Rent, insurance, utilities, and other monthly expenses go in this section. I like to add an extra
10% on the fixed costs to cover expenses I might have missed, or other costs that cannot be
predicted.

Income-create a realistic projection of how much business you expect to do in your business
each month. Record the total sales dollars that you believe you will bring in.

Gross profit-the gross profit is the amount of income leftover after you have paid your direct
costs. So, if you are charging a client $50 to come to their home, but you are paying $8 in gas to
get there, then your average gross profit is $42. However, this example is a little simplistic; it
does not figure in the wear and tear on your vehicle, the cost of your equipment or
certifications, etc.

Gross profit percentage-this tells you how much of every dollar of income is really gross profit.
Remember, all the costs from your "fixed cost" section should be included, as well as direct
costs like travel expenses or equipment.

As an example, let's imagine that you own a personal training facility for clients who come in for
one hour sessions. Each client pays $75 per session, and you generally see them once weekly.
You know that you also spend an average of an extra $20 per client in miscellaneous expenses.
So you're selling price is $75, and the average variable expense is $20.

61
In order to calculate your break-even quantity, take your total fixed costs and divide by the
selling price minus the average variable cost. Say the facility is costing you $1000 per month in
total expenses. We have:

1000/(75-20) = 1000/55 = 18

So, your break-even point for this example is 18 sessions. You must have at least 18 sessions
per month before you can consider taking an income from the business.

Is 18 sessions per month manageable? Certainly. Even in a very small area with poor personal
fitness demographics (meaning the population in general does not lean toward personal
training) it is possible to define your niche in such a way that you will have way more than 18
sessions per month.

DEVELOPING A MISSION STATEMENT

The mission plan is about your company and the goals you have created for it. Take a look at
other company’s mission statements, but don’t copy them; it will quickly become clear to those
around you whether you truly are devoted to the things mentioned in your mission statement.

It should define your main purpose, the niche you plan to serve, and the type of company you
want to run. If you want to become the “largest fitness company helping moms achieve their
goals,” this is the place to say so. Likewise, if you intend to remain a solo entrepreneur, say
that.

If you aren’t sure what your mission is, or if you have already started a business and are just
now defining its purpose, ask your employees or those close to you to help you describe it.

Remember that the mission statement needs to be focused, yet at the same time broad enough
to flex with the changes you will probably implement. By changes I mean that you might start
selling products or supplements later, or you may branch out into other areas that naturally
relate to your niche.

Keep it short – a mission statement is only two to four sentences. This is not the place to use
flowery descriptive phrases; “greatest” and “best” belong in your advertising, not the business
plan.

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CREATING A SUCCESSFUL BUSINESS PLAN
Most people groan at the thought of creating a business plan. Many consider it a waste of time.
Business plans are a lot of work, and frankly nobody reads them. However creating a business
plan will cause you to think all the way through the company you are trying to create. This is
the real value of the plan; not to create it, but the thought process that goes into it. By the time
you are finished planning, you have thought, studied, researched, and criticized your own ideas.

For this reason, the business plan is truly the backbone of your business. It is your blueprint.
Creating one will help you think through your prices, your income projection, and your
marketing plan. By stepping out of your comfort zone and spending several days or weeks
working on this plan, you will be forced to understand exactly what you're getting into. As a
result, your business will be much more successful. That's exactly why you absolutely must
create a plan.

To get started, get a three-ring binder and some dividers. Using top-loading sheet protectors
will make it easier to switch out pages as you move sections, refine your plan, or update it each
year.

ELEMENTS OF A BUSINESS PLAN

Every business plan is different, but they are all structured basically the same way. For this
reason you should include each of the following elements in your plan. To begin, make a cover
sheet. List the following:

Owners

Business Name

Address Line 1

Address line 2

City/State/ZIP code

Telephone number

Fax number

Email address

Executive summary

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This is an overview that describes the highlights of the plan you're going to write. Often lenders
or other business people only read the executive summary of your plan. That's why it must be
the very best that it can be. For this reason it should be written at the end, after you have
already created the rest of your business plan.

Be sure that the executive summary explains:

What kind of business you have

What your niche is
Why your business is unique
Why you need funds, and how you will use them.

Once these questions are answered, go back over the executive summary and make sure it
contains short, concise wording. Eliminate any words that are not necessary to explain your
points. If you are not a great writer, this is the time to ask someone you trust to read over it and
tighten it up.

Table of Contents

Immediately following the executive summary, list the section titles and page numbers of the
rest of your business plan.

Business Description

Now we are into the details of your plan. In this section, write exactly what your business will
be and how you plan to proceed. Explain why people will want it, and why someone else is not
doing it. If you have a mission statement, and you should, this is the place to put it.

List the company goals and objectives. If you aren’t sure of the difference between the two,
think of it this way:

GOALS are milestones that you want to achieve. For example, you want to have a successful
business. But how do you define success? Be detailed here and make sure you think it through
in terms of your personal values and not just the traditional version of success (which is purely
financial).

OBJECTIVES are the smaller measures along the way that tell you whether you are achieving
your goals. If your goal is to have a successful company, some objectives might be the number
of actual clients at year-end and total sales revenues.

64
Describe the industry, as well as your company’s strengths. Tell how your own experience and
skills will contribute to the success of the business.

Tell which legal form of ownership you have selected and why.

Make it clear that it is a professional business; imagine that you are the investor and write out
all the things you would want to know before investing in this business.

Market Analysis

Describe your own target market. You already conducted the research; pull from the numbers
you created in chapter 4. Narrow it down so that the reader can see you have used reasonable
numbers for your calculations. Tell about your clients, where they are located, and other
demographic information you have identified. If you have more than one potential target
group, create a demographic profile for each one by listing the age, gender, location, income,
and other information you have gathered about your market.

Describe the competition, including all the fitness-related businesses in the area. Tell what you
believe your market share is. Show numbers for your competitors as accurately as you can.

Explain how you will position yourself in the market in order to capture your market share.
Show what your pricing strategy will be. Tell how you are going to promote yourself and your
business. Include your marketing strategy and your promotion plan. These are outlined in
Chapter 9.

Description of the Industry

Here you will give the statistical information about personal training, and the fitness industry as
a whole. Include as much data as you can gather. Industry trends, markets, clients, and
economic shifts all belong within this section. Explain the current trends and the projected
growth for personal training all across the country.

Also list the downside: what barriers do you see that could impede your success in the
industry? Explain how you plan to overcome these. Show that you have the knowledge and
skills to quickly adapt to unexpected economic and/or financial situations by having alternative
plans.

Business Goals

List the business goals you have created for years one through five. Break the goals down into
parts so that you can explain exactly how you plan to reach each goal, and what could happen
under different economic circumstances.

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Competitive Analysis

This section describes everything you can learn about your competition; how long they have
been in business, where they are located in relation to you, and what their average revenues
are. In this section you should study the reason they are successful and what they do right as
well is wrong. Describe how your competitors meet client needs, and how they do not. Explain
how your business will compete with them and what your strengths and weaknesses are. If you
have a better location, better pricing, more training, etc., put that in this section.

Management and Sales

This section explains how you will develop your organization and how you will integrate
personnel into the process. Describe who will manage the business; if you are planning a fairly
large organization, create a flow chart showing how the management chain works and who is
responsible for various parts of the business. If you use mentors or advisors, list them here.

This section is also a place to describe your scheduling and costs, and includes a development
budget that explains all your materials, labor, overhead, marketing, and miscellaneous costs. Be
sure that you include costs associated with consulting outside experts – lawyers, business
consultants, and accountants. If you plan on running a solo business with no other employees,
this section can be left out.

It’s important that you diversify your risk by having a variety of suppliers and clients. If you rely
on one or two major players and they miss a payment, go on vacation, or something else
unexpected it could put you in a tight financial situation. Have alternative plans or a cushy
reserve fund if you are forced to limit suppliers or take on high dollar clients that you see
several times a week.

Marketing Strategy

Here is where you explain how you plan to let prospective clients know about your business.
Some examples might be: television ads, newspaper or magazine ads, and the Internet. What
type of advertising you will use, how often, and why you have chosen this venue should be
explained.

In addition to the media ads, you probably plan to use word of mouth or networking. List those
strategies, too.

Within the marketing section, describe your budget for your marketing plan. Typically, there are
two parts to this budget. The first is the pre-opening advertising, and the other is the ongoing
marketing budget.

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If you are selling products in addition to offering services, describe the distribution channels
you will use. Are they sold only in the facility via your own staff, or are they available for retail,
wholesale, or other means of sales?

Financial Analysis

A business plan is not just made of empty words. It explains how much it will cost to get your
business up and running, as well as how much it will cost to keep it going from month to month.
So it is important that your marketing, sales strategy, and finances all fits together. The financial
analysis section includes a spreadsheet that analyzes your income and expenses over the next
few years. It is made up of several components:

A profit and loss statement, which is a summary of your projected transactions. A P&L explains
the difference because between your income and expenses. It shows gross profit and profit
margin, overhead, interest payable, depreciation, and net profit.

A cash flow statement, which tells how much cash or business will need at every step. A cash
flow statement is important to you because it makes you look realistically at your bottom line
to see if you are going to make enough money to pay your debts. It is a great tool, and one that
everyone should use throughout their business career. Make sure you are not over-optimistic
on forecasted cash flow and income.

A balance sheet, which forecasts assets and liabilities. Balance sheets show your financial
position at the end of the year. The information on it is taken from the P&L and the cash flow
statement. Again, verify that your data is up-to-date and as accurate as possible. All financial
forecasts are based on assumptions, so make sure you clarify what you are basing your
numbers on. Play the “what if” game a little bit and come up with solutions and built-in
reserves for things like seasonal market trends, cost increases for utilities, materials, labor, etc.
as well as natural disasters. Having backup plans and acknowledging the unforeseeable will
give you credibility and show a great deal or forethought.

Appendix

The appendix contains all documentation necessary to obtain a loan; references, names of
current lenders, names and numbers of your lawyer and accountant. You should also include a
personal net worth statement, two years’ tax returns, and your resume.

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Of course the appendix is only necessary when you are borrowing money -- not when you were
creating it for your own personal use. So this is the only section you can leave out when you
first write the plan.

Sample P&L

Projected Income (1/1/08-12/31/08) $54,590

Auto $750

Bank Fees $200

Conference $1100

Equipment $900

Insurance $2,800

Marketing $250

Phone $725

Postage $100

Printing $500

Supplies $8,020

Taxes $4,200

Projected Total Expenses $19,545

Projected Net Profit $35,045

If after studying this section you feel that you cannot create your own business plan, or if you
simply become stuck at some part of it, it is a good idea to consider business counseling. This
can be done through the SCORE organization. SCORE is a network of volunteers who are
working or retired executives and business owners. They dedicate their time to counseling and
educating entrepreneurs. They partner with the U.S. Small Business Administration in order to

68
share what they have learned in business. You can contact SCORE by calling 1-800-634-0245 or
visit them online at www.score.org.

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Chapter 5: Names, Location, and Forming a Business

PICK A GREAT NAME

Naming a business should be fun, but some people find it stressful. That's because they worry
about choosing the wrong name, or a name that is already in use. The important thing to realize
is that your business, if it hasn't become so already, should be your alter ego. So your name
should reflect something about you as well as the business.

Most business owners choose a name in one of three ways. The first is to choose a name that
describes exactly what the business is. Think about what you're going to do and the image you
want to express. In other words, when people hear the business name, they should know
exactly what your service is. You want to be easy to remember, too. There are many names you
are already familiar with that fit this description: ToysRUs, Mr. Plumber, Jiffy Lube.

A second way to come up with the business name is to pick a word that is completely unique
and unrelated to your business. Think of Amazon, Wal-Mart, and Yahoo. These names are great
because they are unique and memorable. However there are some risks with doing this; for
example if your name is too strange or obscure, people will not remember it. If they can’t
pronounce the name, they definitely won’t be able to remember it. Also, the companies listed
here have the means to market and brand their business. People were able to remember them
because they could afford to make it so.

The third method of creating a winning business name is to hire a company who will do a great
job of creating one for you. This can be expensive; it is not unheard of to pay $50,000 for a new
name for bigger businesses. However there are businesses online that will assist in the creation
of names and business taglines for a fraction of that.

Here’s an easy way to get started thinking about your business name. Use the sheet below to
brainstorm. Get your friends and family involved and let them help you think through the
process.

Questions to Help You Develop Your Name

My business is:

It is different from others because: ___________________________

I will benefit my clients by: ______________________________

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List five describing words that tell about your business:___________,

_____________, ______________, _____________, ____________

List the names of nearby competitors:

______________________________________________________________________________
______________________________________________________________________________
_________________

Now go back and lists the good things and bad things about each name above.

List five possible names for your business:

1.________________________________

2. _______________________________

3.________________________________

4.________________________________

5.________________________________

LOCATION (LOCATION, LOCATION)

We’ve all heard the old real estate adage that what's important about a piece of property is
location, location, and location. That’s why the “prime spots” are always in the newest strip
malls. But not every business needs a terrific location; some businesses have other needs. For
example certain retail businesses do best when located where the visitors are mostly comprised
of foot traffic, so they place their business in a walking mall or downtown area rather than in
view of motorists. Other businesses believe that they are unique enough to draw crowd to
matter where they're located, so they are able to pay much less for their location. And if you’re
planning to work from home, you won’t take advantage of any of these—and depending on
your zoning, you may not even be allowed to display a sign.

How important is foot and drive-by traffic to your business? While most personal trainers feel
that they need to be located near some center of activity the recent trend in the industry is the
use of more industrial space as they’ve evaluated that their clients typically see them as a
destination business and did not find them because of intrusive visibility.

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Where is your competition located? Some trainers feel that having too many competitors
located close by will probably hurt their business. Many trainers like to be the only one in the
area. On the other hand, if you’re a training facility located right across the parking lot from a
busy gym, you might have a strong client draw with little financial outlay.

Also think about how traffic will be at certain times of day. Does the location have adequate
parking, lighting, and accessibility? Does it look inviting or does the building look like it’s falling
apart? What is the general area like? Do local businesses welcome newcomers, or shun them?
Are there any local incentive programs for businesses opening in the area and if so what
locations do they apply to? Also think about the character of the location and the surrounding
homes and businesses; an historical district may not be the best choice for a large, trendy gym
but it might be a great place for a small niche training facility.

WORKING FROM HOME

Many business owners start from home intending to move the business out as it grows; others
have it in mind to remain there for the duration. Starting a business at home is easy and
convenient—and it’s the least expensive option. These days, even some doctors and lawyers
work from home. It is more accepted than ever before; estimates say that one million new
home based businesses begin each year.

Before setting up shop at home, be sure that you have adequate space for your work. This
includes phone and computer work as well as your training business. You will need a file
cabinet, desk, chair and computer at the least; you will also need room for your books and
supplies.

Are you going to meet clients in your home? If so, you will need a defined training area
equipped with the appropriate training tools. Most home business owners find that the
simplest solution is a large area that is accessible from the outside (so that clients do not have
to walk through the home to get to the training room).

Many trainers set up a home office, but drive out to meet clients at their own homes or
businesses. If you choose this option, be certain that you allow enough extra pricing to cover
your gas and time; driving time can eat up a lot of your day.

Setting up your Home Gym

If you are on a budget but need to set up a gym, here are the minimum items you could start
with.

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An exercise mat – floor work will be nearly impossible for some clients without it. Choose one
that is rather firm and easy to clean.

Resistance Bands – for resistance training and stretching. Purchase several thicknesses so that
clients can progress from one level to the next. Don’t forget a strap to attach them to the door
or a step for diversity in workouts.

Adjustable Dumbells. At the minimum, start with a set of Powerblocks or a similar type of
adjustable dumbbells.

Stability ball – used for balance training, abdominal exercise, and back exercise.

Other items to consider: Heart rate monitor, scale, tape measure, blood pressure monitor, body
fat measure, jump rope, kettlebells and a step or a bench.

WORKING IN A HEALTH CLUB

Working for a club or gym is the way that many fitness professionals start out. By being
affiliated with the club, you have much easier access to prospective clients. You are able to use
the equipment in the gym, and you probably don't have to pay insurance. So working for it club
is a low-cost way to build up your business.

There can be downsides to working for clubs, however. One of the biggest is that if the club
changes hands, the new owners may not support a personal training business any longer. If this
happens, it may not matter that you signed a contract with the previous owner; the new owner
may not legally be obligated to honor it.

The other down side is the limited income that you will have by choosing to work for a gym. If
they have several personal trainers, you will receive clients on a rotating basis. So if there are
twenty trainers, you only get one client out of every twenty who are interested in your services.
Because of scheduling the space, you may only be able to offer one-on-one training or semi-
private and not have the opportunity to offer fitness bootcamps or group training. And of
course, the gym takes a cut of whatever training fees you earn. So in general, working for a club
can give you experience in the beginning, but it's not the best way to create a true career from
personal training. That is, unless you own the gym -- which is a whole other topic.

RENTING A FACILITY

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If you have built up a strong number of clients, or if you're simply ready to commit to this as a
career, it may be time to rent your own facility. Commercial rentals give you lots of options; you
are able to offer group and individual programming, hire other trainers to work when you
aren't there, and set up the facility the way that you want. You can create areas for group
training, sports performance training, youth fitness, or whatever activities are in demand by
your particular clientele.

If you find a commercial building that you think fits your specifications, be certain that you can
afford the location before signing a contract. Refer to your business plan to make sure that the
monthly payments, utilities, and other costs fall within your budget. It’s also a good idea to see
how the parking lot looks at night. Is it well-lit and easily accessible, or is it shadowy and
possibly frightening for your potential clients?

On the flip side, do not pick a location only because the rent is cheap. The location must be
appealing, parking should be reasonably close, and the look of the facility should be consistent
with your personal business brand. This is key to creating a successful business.

Whatever type of building that you choose, do not sign the lease without being sure that you
can legally operate a business in that location. This means that the zoning is appropriate for the
type of company you will have, and there are no restrictions on your signage, parking, or
business hours. You can find out these legal issues by visiting your local zoning office. Do not
rely on the owner or agent to tell you all this; most of the time they are not aware or simply do
not reveal restrictions. Taking the extra steps to find out is part of the due diligence you must
perform as a business owner.

In addition, be sure that your lease does not limit what you are able to do. Be sure and ask to
see CC&R (covenants, conditions and restrictions). If you are starting your business from home,
check with the zoning office to be sure there are no restrictions to prevent you from doing so.

Worksheet for Finding the Best Location

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Contact realtors, the local Chamber of Commerce, the local zoning office and planning
commissioner, or the Census to obtain this data.

Income level for this area:_______________________

The population is: declining______ growing_____ steady ________

The majority of the population is: young adult____ young families ____ middle aged_____
elderly______

The second segment of the population is: young adult____ young families ____ middle
aged_____ elderly______

The major businesses located here are: ______________________

How many businesses opened over the past year? ________________

People mainly visit this area because (list major department stores, grocery stores,
etc.)____________________________________________

Access: easy___ medium____ difficult____

Safety from Crime: low ___ medium____ high____

Building condition: Poor_____ Fair ____ Good _____ Excellent____

Number of bathrooms:_______________

Square footage: ____________________

Amount of Storage: None______ Adequate______ High ________

Room to Grow: None________ Some _______ Lots __________

Parking: _____________________________________________

Lighting (indoor): Poor_____ Fair ____ Good _____ Excellent____

Lighting (outdoor): Poor_____ Fair ____ Good _____ Excellent____

Length of lease: _____________________________________

Cost of rental: ______________________________________

Total costs including utilities, rent, and insurance for this location:
_______________________________________________________

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UNDERSTANDING BUSINESS STRUCTURE
In selecting a business structure, there are basically six choices. The one that you choose will
depend on the number of partners involved in the business degree of individual liability and the
amount that the structure is subject to taxes. The basic business structures are:

Sole proprietorship-you are the only owner of this company. You are responsible for assets and
liabilities. You are able to write off most of your expenses on your taxes. This is the simplest
form of business organization. However, the business does not exist separate from the owner.
This means the owner carries all the risk, even to all his personal assets that are not related to
the business. Also, there is no ability to get working capital other than what the owner can
obtain. That means if you decide to expand the business, as a sole proprietor you may be
limited. This lack of capital is often the cause of business failure for sole proprietors.

General partnership-you have a contract with one or more others to run the business.
Everyone has equal responsibility and equal liability. Partnerships are easy to organize, and
there is “strength in numbers” so if you select the right partners, your financial standing is
better. However, the liability of the partners is not limited; that means each is responsible for
the debts of the business. So if one partner goes on a spending spree on behalf of the business
and then disappears, the partners who are left must pay the debts or risk losing their business
and even personal assets.

Limited partnership-some of the partners have less interest and less liability in the company.
There must be at least one general partner in this kind of structure.

Limited liability Company- This Company is structured so that you and the people who are
forming the business with you have less liability for the actions of the company, including its
debts. It also offers pass-through taxation. An LLC is a sort of hybrid between corporation and
partnership, and can be suitable for even a one-owner company. For Federal tax purposes, an
LLC can operate as a partnership, corporation, or sole proprietorship; this is determined by the
business owners through filing form 8832. If you do not file the form, the business is treated as
a sole proprietorship if it has one owner, and as a partnership if there are two or more owners.

C Corporation-the traditional corporation style. In this structure, the owner has little or no
personal liability because it is a legal entity separate from its owners. Most people believe that
in order to set up a corporation there must be a certain number of participants, but this is not
true; a one person business can be set up as a corporation. The down side of the C Corporation
is that it is taxed twice, once on the corporate level profits and again on the personal level--the

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shareholders' income. It can also be difficult to set up, as well as expensive. If you feel you need
to form a corporation, it is best to find both an accountant and an attorney who specialize in
corporate law.

S Corporation-many people are choosing this business structure over a C corporation. The
liability at stake is the same; the difference is the way that the business is taxed. S Corporations
are only taxed on the personal level, so they do not pay tax on income from their daily
operations. If the shareholders provide services to the company, then they are considered
employees and must pay employment taxes on their compensation. The officers of the
corporation are also considered employees for tax purposes. Shareholders report income,
losses, deductions, and credits on their personal income tax returns. In order to qualify as an
“S” corporation, the business must meet three requirements:

The company is a domestic corporation, not affiliated with any group that is eligible to file
consolidated tax returns

The company must have no more than 35 stockholders, and not more than one class of stock

The corporation cannot receive more than 20 percent of its gross receipts from dividends,
interest, annuities, royalties, rents, or gain on the sale of securities.

Sole proprietorships, partnerships and LLCs are taxed at the individual level. They also are
responsible for a self-employment tax to be paid by each partner. Limited partners may often
choose to only pay self-employment tax on the amount of services they rendered to the
partnership. A shareholder that is an employee of the corporation does not have to pay self-
employment tax, but instead must pay unemployment tax.

INCORPORATION – THE PROS AND CONS

Pros

A corporation is a separate legal entity, which means that it has its own tax identification
number and it is separate and apart from the owners. Incorporating limits one's personal
liability.

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As the corporation grows, management can be separated so that the business can run apart
from the owners, yet the owners can still enjoy the benefits. Owners can choose not to run the
corporation.

One of the biggest corporate characteristics is its ability to consolidate, merge, or buy out other
corporations.

Sole proprietorships and partnerships end upon death, disability, bankruptcy or retirement.
Corporations do not cease to exist just because one of the founders leaves.

Corporate stock may be transferred by sale or as a gift.

Corporations can own property and are free to buy and sell it.

Corporations are able to form contracts with the government, while most other business types
cannot.

Corporations have tax advantages, pension and profit sharing options, and can choose “S”
corporation status.

Lenders and others may take you more seriously if you are incorporated.

Cons

Corporations are expensive to create, costing $1,000-$10,000. They can also be expensive to
maintain.

Majority shareholders rule and can overpower minority shareholders.

Shareholders have little say in the day-to-day operation of the business.

Corporations have tighter governmental regulation and control than other types of businesses.

LICENSE AND PERMIT REQUIREMENTS

Before opening a business, there are certain steps one must take that are required by the city
or other municipality, as well as the county and state. These include registering your fictitious
business name or "DBA". This stands for “doing business as,” and you must register it with the
authorities. This tells the public that you are the owner of the business. Normally, corporations
do not file a fictitious name statement.

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The business name application process varies from one area to another, but normally you fill
out a form declaring what business structure you have chosen and what name the business will
operate under. You will pay a small fee (perhaps $20 or $50). A few locales will also publish the
statement in a local newspaper. And you may find that the bank must have a look at your DBA
statement before they will open a business account under that name.

You will also be required to get a business license from your city and/or your county. Again,
they simply require that you fill out a form and pay a small fee. You can find out more about
your city’s permit and licensing processes by paying a visit to the business planning office. They
will tell you which licenses and permits you need, how to get them, and how much they cost.

Chapter 6: Estimating Start-Up Costs

One of the greatest advantages to personal training as a business is there is usually very little
investment required to get started. In fact, if you're working from home, there is very little cost
or risk involved. You can train your clients at their home or office, or at the club they belong to.
You can also open your own facility targeting clients who would like to have your personal
services and are not interested in joining a health club. No matter which type of business you
are starting though, you'll need to separate out the items you want from those which you
actually need in the beginning. You also need to estimate your fixed costs and your variable
expenses in order to determine how much "seed money" you need.

CALCULATE ONE-TIME COSTS

Many costs associated with starting up a business are one-time expenses. These may include:

Legal services-negotiating contracts, incorporating, and other legal services.

Accounting costs-you may want an accountant to set up your books initially.
Licenses and permits.
Furniture, exercise equipment, and fixtures.
Remodeling costs.
Initial inventory, if you are selling any products.
Supplies.
Payroll, and your own income until your cash flow becomes positive.

UNCOVERING ONGOING COSTS

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The money that you need to keep the business going before it makes a profit is referred to as
"working capital." It is absolutely critical that you know where you will get that working capital
to cover your recurring costs. Some of these may be:

Payments on borrowed money. If you are borrowing money in order to start your
business, you'll have to begin repaying it right away.
Inventory and replacement inventory. Because you are a service business you will have
less than most, but if you are trying to sell equipment or other items you must include
the costs in your initial assessment.
Utility and phone bills.
Advertising costs

Let's look at starting up each type of personal training business from a financial angle:

WORKING FROM HOME

When working from home, you have very little financial or space requirements. You probably
need a desk or at least a designated area where you can do your paperwork and store a few
files. You need a place to store your equipment and a telephone line so your clients can reach
you at times.

Items You Might Need

To work from home, you probably have nominal startup costs. You have to register your
business and print business cards or flyers. We'll need a reliable form of transportation. You
might want to purchase weights, exercise mats or equipment. But if you are working in clients’
homes, they may purchase these items themselves. You can probably start your business for
under $500.

WORKING IN A GYM AS AN INDEPENDENT CONTRACTOR

In Chapter 3 we talked about ways to set up a split with gym owners so that you can begin to
build recognition -- and income -- as a way to get started. Working in a health club requires very
little cash outlay, and if you obtain certifications are required they may carry your insurance as
well. It provides you instant access to interested clients. You can use a large variety of
equipment. You can start getting paid before you’ve really built up your own clientele.

Are there disadvantages to working in a gym? Yes, and depending on your personality you
might find them to outweigh the advantages. A few of them are:

You may be required to perform other duties at the club in addition to training.

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Your hours may be set by the club, not by you; they may not be as accommodating to your
clients as you would like.

You have to split your income with the club.

There may be other trainers who take a large portion of the business.

Items you Might Need

You’ll have to get the certification your club requires, obtain a business license, and print up
business cards and/or flyers. Your costs could be as little as $500.

OUTDOOR FITNESS BOOTCAMPS

Running an outdoor fitness bootcamp generally cost a lot less than renting a facility. By
approaching the local park and recreation department or owner of a private park and offering
to pay rent for the hours will be using the location, you can keep your fixed overhead down. If
you are not in an area that’s climate allows for year-round outdoor camps you can approach
recreation centers, schools, churches, gymnastics studios and other businesses that posses
rooms with open floorplans that can accommodate a group training style class.

Items You Might Need

You will likely need resistance bands, some light dumbbells and possibly things like agility
ladders, cones, jump ropes and kettlebells.

Renting a Facility

Facility rentals can range from tiny facilities where you mostly work with individuals to larger
commercial facilities, where you can operate a full-fledged health club style business.

Small facilities can cost from only a few hundred dollars per month to several thousand dollars
per month depending on where you live. The trend as of late in the industry is to use light
industrial space instead of storefront space to minimize fixed costs. Your costs will include
startup and ongoing expenses, including insurance. You must do all the marketing and other
activities required to draw clients to your business.

No matter what type of training business you choose to start, it will be the marketing strategies
that you use which will make or break your business. If you marketed properly, you will have
more business than any. If your marketing is sporadic, or you don't try to sell the business at all,
you will fail.

Here’s an example of the costs of a typical smaller facility….

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 Expenses

Business Creation: Amount Recurrence

Business Insurance $189.00 yearly

Business Registration $54.00 yearly

Business License $135.00 yearly

Total Business: $378.00

Legal Services:

Contracts $216.00 one time

Incorporating $162.00 one time

Total Legal: $378.00

Office Supplies: Type Quantity Cost/Unit Recurrence

Computer(s) HP Desktop 1 $600.00 one time

Software MS Office 1 $300.00 one time

Software Volo Client Mgmt 1 $75.00 monthly

Phone Cell 1 $90.00 monthly

Printer Varies 1 $150.00 one time

General Supplies:

Furniture (all) Desk 1 $280.00 one time

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 Fixtures Whiteboard 1 $42.00 one time

Total Supplies: $1,537.00

Exercise Equipment Quantity Retail Franchisee Total

Cost Each Cost Each

Poly Balance Beam 4 $86.35 $68.04 $272.16

Airex Balance Pad 5 $64.75 $51.84 $259.20

Balance Steps 4 $59.35 $48.60 $194.40

EVA Foam Roller 5 $43.15 $35.64 $178.20

EVA Posture Ball 5 $24.79 $19.44 $97.20

Valslide 5 $43.15 $32.40 $162.00

Cook Band 2 $43.15 $35.64 $71.28

Cook Band 2 $43.15 $35.64 $71.28

Cook Band 1 $43.15 $35.64 $35.64

Thera Band 1 $13.99 $10.80 $10.80

Power Block Club (5-90lbs) 1 $1,398.60 $1,182.60 $1,182.60

Power Block (5-45lbs) 2 $322.92 $286.20 $572.40

4k Vinyl Kettlebell 2 $37.75 $28.08 $56.16

8k Vinyl Kettlebell 2 $53.95 $38.88 $77.76

12k Vinyl Kettlebell 2 $64.75 $47.52 $95.04

Travel Stick 4 $32.35 $24.84 $99.36

2lb Slam Ball 4 $39.91 $28.08 $112.32

2lb Elite Med ball 3 $26.95 $19.44 $58.32

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 4lb Elite Med Ball 2 $32.35 $22.68 $45.36

10 Ball Med Ball Tree 1 $129.55 $96.12 $96.12

Smarthurdle set of 6 (6") 2 $102.55 $85.32 $170.64

Lifeline Power Jump Rope 15 $13.99 $9.72 $145.80

12" G2 Foam plyobox 2 $398.52 $355.32 $710.64

Sled Dawg 4 $183.55 $145.80 $583.20

Sidestep 2 $43.15 $34.56 $69.12

York Power Rack 2 $1,182.60 $1,074.60 $2,149.20

10lb Rubber Bumper (pair) 2 $97.15 $79.92 $159.84

25lb Rubber Bumper (pair) 2 $140.35 $113.40 $226.80

45lb Rubber Bumper (pair) 2 $226.75 $183.60 $367.20

1500lb Olympic Bar 2 $268.92 $214.92 $429.84

Lock Jaw Collars 2 $48.55 $38.88 $77.76

First Place Turf ($sqft) 600 $7.51 $5.39 $3,233.52

Total (excluding
freight) $12,071.16

Grand Total $14,364.16

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*Does not include rent, utilities, general office supplies, etc. Make sure you add these items
into your proposal*

CLIENT LOYALTY AND YOUR FINANCES

When considering the cost of any new business, one thing you must consider is the obligation
the client feels to continue their client relationship with you. With many health clubs, members
sign a contract, and they are obligated to a term of often at least 12 months. As a personal
trainer, you can also offer 3, 6 and 12 month memberships but you may also be using open-
ended memberships. These are also called month-to-month contracts. What this means is
there is no contract at all--so you have no real stability with your business. You are literally
surviving from one month to the next.

As you can imagine, this means that you have to set your numbers higher than you actually
need them in order to cover the times when there aren't enough clients to pay the bills. If it
takes 30 to break even, perhaps your target number needs to be 32 or 35.

My recommendation is to strive to build 3 to 6 month memberships into your business model

at minimum for continuity with a goal of eventually enrolling some clients into 12 month
memberships once you’re established.

In order to be a good business manager, you need to ensure that your facility generates enough
cash flow to pay the bills at all times. This means you have a system in place to keep track of
your budget and know when you're going over it. You need to have a system for collecting
accounts when they are overdue. And you need to be sure that if you have to replace
equipment, you can. In other words, you’re not just barely paying the bills; you can actually
purchase what is necessary to keep the business running.

WHERE TO FIND FUNDING SOURCES

For any entrepreneur, one of the biggest concerns is where to find startup funds. A large part of
the funding concerns will be whether you are using the $500 work-from-home business model
or the $100,000-plus high end facility build out. Traditional funding, like banks and other
lenders, is actually more difficult to attain for the smaller home based personal training
businesses. They like lending the larger amounts, like those you would get for a larger facility.

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It is easiest to start a personal training business as a side job while you are still working a
different full or part-time job. This way, you are able to cover your living expenses while you
build the business. If you decide to go whole hog and jump into the business full-time, be sure
that you have enough cash on hand to cover three months’ expenses. Many finance
professionals suggest that you even have more - six to 12 months of expenses put away where
you can easily reach it, enough to run the business as well as feed and clothe your family.

Use the worksheet below to determine how much money you actually have on hand, before
looking for funds from other sources.

My Net Worth

Assets Liabilities

Cash on hand___________ Accounts payable___________

Savings accounts___________ Contracts___________

Stocks and bonds___________ Notes payable___________

Securities___________ Taxes___________

Accounts Receivable___________ Student loans___________

Real estate holdings ___________ Real estate loans___________

Cash value of life insurance___________ Credit card balances___________

Vehicles___________ Vehicle loans___________

Other assets___________ Other liabilities___________

Total assets___________ Total liabilities___________

Net worth (assets minus liabilities) ___________

Once you have determined your own net worth, consider how the start-up capital might be
obtained. You might find startup funds from one of the following sources:

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Your Own Savings Account or Assets. Assets can be in the form of retirement accounts,
vehicles, recreational equipment like RVs or boats, equity you have in real estate investments,
antique collections, coin collections, musical instruments, and other items of value. These
assets can be sold and used as cash, or they can be put up as collateral for a loan.

Friends or Family. If you do not have enough resources on your own, you might want to
approach friends or family clients who you know are able to take the risk of making an
investment in your business.

Business Partners. If you do not have enough funds to start up your own personal training
business, consider inviting one or more people to team up with you in your venture. Some
entrepreneurs choose partners who have only financial resources, while they themselves have
the talent. These silent partners supply no input for the business, only cash. Others choose a
like-minded partner who wants to work together, sharing the training as well as the income.
Whatever your arrangement, be sure to put both the responsibilities and the financial split into
writing.

Small Business Loans. There are numerous programs at the local, state and federal levels that
support small businesses. Check out the small business administration and your local library. If
you happen to be a minority or a veteran, you are doubly likely to find financing to help you get
started.

Private Investors. People who cannot obtain traditional financing often turn to private
investors instead. You will need to show your business plan to a potential investor, as well as
your financial records. You can find private investors in newspapers like the Wall Street
Journal, as well as online.

More Strategies for Finding Money

When conventional lending doesn't work, you can find other types of loans made from the
same banks. This will be especially true if you already have a business that is making money, or
if you already own assets or have a steady client base. These loans may include:

Purchase order financing. Say that you have a purchase order for $50,000 worth of home
exercise equipment that you are planning to resell to your clients. Using this type of financing,
you get advances on the contracts that can be repaid directly by your clients.

Fixed asset loans. These are loans that are based on certain items, you own. You can borrow
against essentially anything: real estate, vehicles, the building you just purchased for your
business, etc.

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Accounts receivable financing. If you can show that you have a strong Accounts Receivable,
your bank may lend you a revolving line of credit upon which you can borrow a percentage of
your accounts receivable. This is usually limited to about 80% of your income.

Angels. An angel is someone who has extra money and who is willing to invest that money in a
new venture. However, you not only give up a percentage of your profit, you may also give up
some control to your angel. That’s because these investors expect to make a profit on their
investments, and they know that start-up businesses are risky. So they will want to make sure
you set a tight budget and realistic goals.

It is possible to find such investors through stockbrokers, real estate firms, and other financial
sources. Angels can prove to be excellent funding sources for new businesses, as long as you
are willing to give up some of your control, equity, and decision-making power.

5 C’s of Credit

1. Character –credit score, ties to the community, organizational clientships

2. Capital – debt, equity, and income

3. Capacity – education, skills, abilities, and experience

4. Collateral – land, investments, and equipment belonging to the business to secure the
loan

5. Conditions – of the market, competitors, economy, etc Your ability to diversify and adapt.
They will have their own data and see how your understanding compares.

Venture Capital

Venture capitalists pool their money into a joint fund in order to make investments, usually on
large business startups. Normally they support businesses that need millions of dollars to begin.
A venture capitalist provides early financing to new businesses if they believe that the business
has the potential for rapid profitability. In exchange, the venture capital firm receives stock,
some control over the business, and some seats on the board. However, if you search diligently,
you can probably find venture capital groups that are interested in helping smaller businesses.

The bottom line in looking for funding is that before you can get it, you must know exactly how
much money you need. Spend some time on developing realistic numbers for start-up costs.
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After that, target your top three to six sources. Show them your plan for making a profit and
how you'll pay them back in a timely manner. Eventually you will have the working capital
required to start your business.

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Part III Open for Business!
Chapter 7: Managing Your Business

We have already discussed the type of organization you must create from a legal standpoint --
such as the sole proprietorship or corporation. But in addition to that, it is important that you
develop an organizational design for your company, especially if you plan to hire multiple
employees.

There are a few key points to keep in mind, whether you are having a one-man show or you are
creating a large scale training business. The first is that the way to increase client referrals,
retain the clients that you have, and create client satisfaction is through superior client service
on all fronts.

A personal training business owner’s mindset should be every employee is in the business of
selling fitness. That’s how you should hire and also how you should train. If you hire an
employee who states to you up front that they do not like selling, you have made a mistake.
The goal is not that they sell training outright, but they are selling the benefits of your program
to each and every client. Whether they do this will show in the success or failure of your facility.

Your role both as the CEO and as a personal trainer includes selling personal training sessions
and programs that you have created. It also means establishing, monitoring, and maintaining
individual program recommendations for every client. You must ensure client satisfaction in
order to maintain clientele. But above that, you are the business manager; whether your
business succeeds or fails is up to you. So let's look at a few of the responsibilities you must be
sure that you cover:

First, you will make sales much more easily if you have a scripted sales method, a proven
system that you follow every time you talk to a prospect. This will be made available to every
client of the staff, so that they can follow it exactly like your system dictates. Also, you must be
sure that you and any employees you hire are proficient in asking for the closing of the sale.

You must also be sure that you provide clients, guests, and your employees a clean, safe, and
healthy environment for exercise and work. This includes clean bathrooms and entryways;
equipment that is wiped down with bacterial cleanser on a regular basis; good lighting
throughout; and equipment checked for wear and tear on a regular basis, and repaired
immediately.

Marketing and client service excellence are what attract and retain new clients. Conduct an
initial assessment for every new client and follow up with a minimum of a reassessment on

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every client every six to eight weeks, showing them where they have improved. Give them
ideas for better results in the areas that need more attention. Careful tracking will help show
clients improvement they may not have recognized yet.

You are a fitness professional, which means a change in a lot of terms and a change in the way
you do business. By that I mean you must think of yourself as a top-notch trainer, as being
excellent in the business. If you do not believe you’re excellent at some aspect of the business,
figure out how you can get that way. Start studying; purchase books and attend workshops like
the Perform Better Summits. Do you have great technical skills, but lack a business background?
If so, you come across to clients as having knowledge, but you won't make any money. Do you
have good ideas, but you believe you have no ability to sell? If so, you need to take courses on
sales and marketing; sales skills are merely learned – they aren’t innate, for most of us.

SETTING GOALS
Stephen Covey, in his book Seven Habits of Highly Effective People, talks extensively about
“beginning with the end in mind.” In a sense you work backwards from the big goals you aspire
to by creating the little steps you must go through to get there. If you aspire to having a staff of
trainers, but you don’t have any at present, write out how you are going to proceed in order to
build the business so that you need (and can pay!) those trainers. Simplicity is key here. The list
might look something like this:

1. Register for employer tax i.d. number

2. Investigate taxes and worker’s compensation

3. Create interview questions and advertising copy

4. Place ad and interview potential trainers

5. Hire first employee

Having a simple, specific list gets most people focused on the correct tasks, so that they don’t
get bogged down in all the little things. Lists like this are fluid; they change as your business
grows. When you get to step 5 on the list above, you won’t go back and start at step 1; you
already know how to pay, how to interview, and what your ad is going to say. Instead, you will
probably decide that now, with one employee, the business needs to grow so that you need
another employee. A new set of goals will follow.

Here is another example. Let's say that you're opening a small facility, and you have a couple of
types of programs you want to offer. Of course, one of your goals has to be to pay the bills. So

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you add up what your costs are going to be, then you figure out how many programs you have
to sell in order to cover your costs. What it comes down to is, I have to sell at least one program
this week, or I'm in trouble. So your goal should be one program per week, right?

No – not if you’re smart. There are a lot of things wrong with setting the goal to meet your
costs exactly. For one thing, many unexpected expenses arise in a business. You have to be
ready to handle them. And what if you don’t sell a package this week? Does that change your
goal to next week?

So what I suggest is this. I set a monthly goal that’s more than I need—say, 6 programs instead
of 4. Then I make my weekly goal to sell 2 programs, knowing that some weeks I might only sell
one. I can be more relaxed and not come off as desperate to prospects, because I know it’s
okay if I don’t sell any at all in a given week. But if I get into the rhythm and actually sell 2
programs every week, I’ve exceeded my goal and generated extra revenue.

Goals need to be high – yet achievable.

Goals also need to be believable.

When thinking about managing your business, you need to be sure that you know where to
start. That means looking back at the goals you have created and prioritizing them in order of
importance. If you've never been a trainer before, you will have different goals than an
independent trainer who's very busy and preparing to hire her first employees. The key is to
focus on the first short-term goal that you have in mind, and work on it immediately. Then you
just keep working through each goal until the business is what you always dreamed it would be.

Should your business model evolve to having a team of trainers, there should be monthly staff
meetings in which you set out goals. Share with the trainers some of your income projections,
and some of the benefits that might be available to them if the goals are met. It is important to
give trainers a window of time after the meeting to think about whether they are ready to
commit to these goals or not. Invite them to come to you privately within, say, 24 hours to tell
you whether they think they can honestly meet the team goals.

After the meeting and subsequent private meetings, tally up the commitments that have been
made. Be sure to share the numbers with the staff again. If you do not have enough
commitment from the training team to meet the sales goals, then either some of the trainers
must agree to raise their numbers, or you can hire more trainers. Do not attempt to take on the
extra numbers yourself; at this stage, you are a team leader, not simply a fellow trainer.

After setting goals like this it is important to makes sure every team member knows:

The sales script

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How to market

Service delivery

Client retention

Now set weekly meetings so that team members can show that they are on track with the goals
that were set. If anyone is not, even though you asked them to commit (you didn’t tell them to
– they had a choice, so it was their own decision) there needs to be some sort of negative
consequence. Perhaps the trainers who have met their goals get the new clients, for example,
while those who didn’t won’t. Or perhaps they’ll need to do some remedial training.

The point is, you want to remove trainers who are not ambitious enough to succeed, and
replace them with the real go-getters.

Remember, above all you are the model for your trainers. You are the one who can raise the
perception of your business’ worth. Your visibility and marketing efforts will bring in clients,
who you pass off to your top trainers.

USING TESTIMONIALS
We’ve all heard that word of mouth is the way to build a business, and it’s still true. For a truly
successful business, testimonials will bring in more new clients than almost any advertising
method. But what if you don’t have any, because you are a brand new business? Here’s an easy
method that I highly recommend.

If you have zero clients, and you're starting to build a business, simply train someone at no cost
-- and then let them be your testimonial. Rather than go after everybody and covering yourself
up with clients 12 hours a day seven days a week, create a strategy to aggressively pursue those
clients that you want. That means you must be sure that the person you pick is within your
niche: A stay-at-home mom, a local high school athlete, or whoever your model client is. If
you're working in a club, simply pull someone off the floor, give them training, and then let
them help you market the program. Obviously, if you're wanting to market to high school
athletes then training a local soccer mom is probably not going to generate a lot of business for
you.

Once you have some testimonials, be sure to keep using them. Get them in writing. Print them
out and hang them in visible places. Ask your best promotional clients to speak at an
orientation, seminar, or other meeting. A testimonial from a client is well worth its weight in
gold.

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PROGRAMS ~ YOUR OWN OR SOMEONE ELSE’S?
Many trainers feel that they have to develop their own program in order to succeed. But in
truth, there is no need to reinvent the wheel by creating your own training system from
scratch. Model proven systems that mirror your personal beliefs about programming and then
take what you learn along the way to shape the training system into your own.

SYSTEMATIZE EVERYTHING
In our businesses we use a tool called the completion plan. It's basically a process map that our
staff writes covering every single step of every process we use in any part of our businesses. It
covers how to send out direct mail, how to go through a sales presentation, how to do an
assessment, etc. You can create the same type of series of process maps for your business over
time by documenting everything that you do. Everything in the business should be in your set of
process maps ort completion plans: how to open the door, how to unlock the facility and set up
for a morning bootcamp, how the phone should be answered, and how clients should be
greeted.

By the time you're ready to hire staff clients, it's an easy process. It makes anyone you hire able
to come in and duplicate your system. The more detailed and thorough you are with creating
your system, the more likelihood that you will have long-term success.

Do the same even if you're using a cleaning crew or hiring a telephone service. Let them know
this is how we do things in this particular place. Teach them to follow the same sequence, just
as you would a new employee. Don't leave anything to chance -- if you do, you could be leaving
money on the table.

A SYSTEM FOR GETTING CLIENTS IN YOUR NICHE

Let's say that you work in a gym, so your client list consists of "everybody." Sit down and make
a list of the current clients and label them with an A, B, C, or D. “A” clients are those that you
love to work with so much that you would willingly work for them for free. A “D” is somebody
that you sort of dread to see coming. Once you write all your clients take a look at your list. You
will see that all of your A clients have something in common. What is it? What is it that you love
about working with these people? Are they athletes? Women? People interested in fat loss?
Why are they fun?

This system leads you to determine who you want to train. It's where your passion lies, and
that's where your energy should go.

TRACKING

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Don’t forget to track the various systems you're using and be sure they work. If you have 20
phone calls inquiring about training, and 15 of those come in for appointments, and 13 of those
signed up -- that's a great conversion. But take a look at the five that didn't come in for an
appointment. If you find that all those calls were handled by the same staff client, and all the
other staff clients are getting a great conversion rate but this staff client has 0%, all you need to
do is train that particular staff client on the phone script. Perhaps he or she has deviated from it
a bit or forgotten it. After staff training, you will find that the conversion rate is back up.

KNOW YOUR NUMBERS

Once you become a business owner you can no longer be ignorant of how much money is
coming in. Instead, you have to know how much money is coming in from receivables, how
much money you need to make--including your own salary and a profit. Not only must you
know the numbers, you must drive the numbers. Where will you get new clients? What can you
expect for renews? Are you going to sell bottled water to each client? How will you drive the
numbers?

In the beginning, of course, you will be tracking your inquiries, the people who learn about you
through your marketing and promotion efforts and make a call to your facility; the people who
schedule an appointment, and the people who become clients. Just track the ratios and try to
figure out where the weak points are. Put this into a spreadsheet.

Many people enter the fitness industry and, because of the lack of a business background, they
want to ignore the inner workings of the business itself. It’s a proven fact that things we don’t
know are uncomfortable, so rather than learn about business they say, “I’m a good trainer, I’ll
be successful.” They look at gross numbers, not net numbers, and they don't pay attention to
their operating expenses. Is it any wonder that 80% of businesses fail in this country?

If you refuse to stick your head into the sand like this, you can identify whether you are getting
a significant return on every investment on which you are spending. Is there a better way to get
a return on that investment? For example, if you are spending $100 on marketing, are you
getting more than $100 back via clients coming in the door? If not, what could you do
differently? How could use that hundred dollars and get $200 back instead?

What about payroll -- how much gross revenue and net revenue are you getting for the payroll
expenses you’re making? One good way to modify a pay scale is to incentivize people to

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produce. By this I mean that their performance should be concurrent with their compensation,
so that in a sense they are paying themselves well. Otherwise, you're paying the same cost for
employee who brings in half the amount of revenue as another one. Then you're stuck
wondering whether to fire the first employee because they are giving you a low return, or how
to hang on to the second one because they're so good they may move on to another location.

Even if you don't consider yourself a "numbers person," it's best not to hire a bookkeeper or
administrative assistant right away. Instead, become acquainted with the relevant numbers. If
you aren't good at it you still must be educated -- not remain naïve. One solution is to hire a
bookkeeper to come in just a couple of times and track everything. You should log every
purchase and every person that comes in the door, and let the bookkeeper take a look. This
way you can figure out the average cost of finding clients and examine ways to generate more
income.

Your bookkeeper can also help you to understand cash flow, balance sheets, etc. He or she can
help you become conscious of all the choices you make and how they relate to your business. If
you hire someone to coach you through the process, you aren’t burying your head; you’re being
smart about business.

INCREASE VALUE AT THE POINT OF SALE

Let’s imagine for a moment that you offer just one package. All your clients work one-on-one
with you and pay for the program monthly. Instead of thinking about the value of a client in
terms of this one package, you must think in terms of Lifetime Client Value. One way to
maximize this client value is to find an immediate upsell that you can present at the time of the
first sale. For example, imagine that you are presenting a QuickStart package, one in which the
client works with you once a week. For a little bit less money per session, offer them an
accelerated package where they can train two or three times a week under your supervision.
This has some immediate cash benefit, but also it allows your clients to become comfortable at
this level of supervision.

Another example of an immediate upsell would be a dietary supplement package as a part of

your QuickStart package. It could include a multivitamin and a meal replacement. Making sure
that people eat supportively for the program includes frequent, nutrient dense meals. This
offers a good start, and almost ensures success. Plus it's very convenient -- so it's appropriate
for these clients.

Yet another example would be upgrading the client immediately into a nutritional coaching or a
weight management program. This is usually very successful, because although you are with

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them three hours a week, that leaves a lot of hours in the week for them to mess up their plan.
So this helps them to make the right decisions outside of the club setting. We’ll talk more about
this in Chapter 8.

ELIMINATE RISK
As a business owner, part of your systemization should include eliminating risks, particularly
those involving money that changes hands among trainers or other employees. By utilizing an
automated billing system and making a monthly recurring payment for clients, you reduce the
risk of the money changing hands. You will find if you begin telling this to all your clients, and
they can switch at their current rate to the automated billing process, you will both reduce your
own costs (or your time spent on billing). In fact, if clients are resistant to it, offer an incentive.
Let them know that the regular fees will go up but by switching to automated billing they can
retain the current price.

Even though you'll have to pay a small fee to a billing company, you can see how the
automated system can save you a lot of time. There are other similar automated systems, you
can put into place; for example, if you set up your marketing calendar, that program can also be
automated. The newsletter you send out can for the most part be automated, although you or
someone you hire must still write the articles. But the layout and the mailing system can be
streamlined.

WORKING IN VERSUS WORKING ON YOUR BUSINESS

Balancing a business and all the other components of your life can be tricky. It is very easy to let
the business take over, becoming more important than anything else; after all, you need to
concentrate on it in order to make it succeed. But if you do not keep things in perspective, you
can end up with marital problems, health problems, and even burnout.

That’s why it is important that you create a systematic approach to running your business. An
approach that allows you time with your family and friends, “down” time, exercise, spiritual
time, and personal education. Every area of your life needs to be fulfilled, or you will feel out of
balance.

Some people work to live. This means that work is just one part of a life that has many facets.
They aren't defined by their work, and they spend time on other things as well. Their reasons
for working may include:

To make money in order to survive

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 To have a sense of fulfillment from the work that they perform
To be happy, because work is their passion

People who live this way put work out of their mind when the workday is over. They do not
allow work calls at home. They love their work, and would do it for free if they were in a
position to do so. However, they make time for hobbies, other passions, and the priorities in
their lives.

On the other side of the coin, we have people who live to work. Living to work means that work
is such a priority it takes place over every other thing in one's life. People who live to work
generally do it because one of the following:

To climb the corporate ladder

To make a great deal of money, which is the highest priority they have.
Because they don't have anything else to do

It’s easy to spot people who live to work, or rather live for work. They schedule their life and
other activities around the work schedule, which seems to never end. They would pick their
Blackberry over their spouse or family. They neglect their health because they're too focused
on working.

I bring this up because when you start a business, you do have to put a great deal of time into
it. It may seem as if it is taking over your life, but it is important to find a work/life balance. Be
sure that you are moving toward the working-to-live category, and that you carry out this plan
consistently after that's what you've decided.

Remember Pareto’s Principle – 80% of the revenue will come from 20% of the clients. You can
also apply this to the work you do: 80% of the things that fill up your time are not as important
as the other 20 percent.

How can you apply this principle to your work? I would say concentrate on fulfilling the needs
of that top 20 percent of clients, the ones you can really rely on to purchase your packages. At
the same time, be careful to focus your time and energy on the 20 percent of your workday
that is important. Don’t live to work – just focus your energies on the right things.

POLICIES AND PROCEDURES

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Remember the completion plans I suggested you create for the business? Compile those into a
manual which will become the ‘bible’ of your business. Then you can base policies on the
manual, which you’ve already written. As decisions are made that affect your business policies,
you can easily replace pages in the manual to reflect the changes. This will prevent employees
from not knowing what’s going on because they missed an email or didn’t see a memo.

Keeping the policies readily available for clients of your office increases efficiency and
productivity. The policies are set in place so that answers are consistent between various staff
clients. They will make fewer mistakes, and you will spend less time discussing questions that
may arise.

Be sure that the manual covers all issues concerning sick days, vacation, trading out session
time, and so on. If those policies and procedures are firmly in place and dated accordingly, you
will be able to hold employees accountable for adherence to the rules.

You may wonder why they are called policies AND procedures. Here’s why. Policies reflect the
governing “rules” of the business. Procedures represent the implementation of those policies.
Procedures will evolve over time, so they require constant testing. You may create a new
process or put a new tool in place – for example, a burglar alarm with a code that must be
entered. This will cause a change in the system of locking up for the night and opening for
business in the morning. These changes should be immediately updated in the manual and
presented to employees so that everyone knows the method.

Good policies are written clearly in simple language. They address the rules in a logical manner
so that, together, they form a framework for the business and how it is run.

Good procedures are well developed before being put in writing. They are written in a way that
every reader can follow them. Double check your accuracy before completing the procedures.
Leave out information that may change quickly; writing “Training Manager” instead of “Lucy
Smith” may save some time rewriting later.

Spell out acronyms, and don’t make your documents too technical. Procedures need to be
action-oriented. Of course, use correct grammar and be as word-efficient as possible. Separate
from your policies and procedures, you’ll need an employee handbook. There’s a great example
of all the topics it should cover in Appendix A.

Chapter 8 From Prospect to profit

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The landscape of the personal training business has changed over recent years, and most of the
change has been positive. However, this doesn't mean there's an automatic path to wealth for
every trainer. In order to survive as a Fitness Professional, you must revisit and rethink the way
that you deliver your help and expertise. You must be able to offer it to more clients while
raising the value of each client in order to create your own financial success. I call this
generating multiple streams of income. Others call it "expanding the scope." Whatever you call
it, it's a way of being aware of current interests, trends, and consumer needs in order to find
new opportunities that will make you money. Along the way, you will learn new skills and
improve your marketability.

Any method that you can find to promote health, wellness, or introduce prevention programs is
a potential way to increase your income. Your clients will look to you for advice and counseling
more than any other source. You can leverage your income potential by selling products or
programs to them when they are seeking that advice. In order to maintain our personal
standards, we insist that the products we sell be in the best interest of our clients. They must
be safe, and they must be approved. Of course for exercise equipment and apparel, we simply
have to offer a good range of products that my clients will be interested in. But the point I'm
trying to make is that you can't compromise in this area of your business. You will undermine
the confidence your clients have in you if your products are not of the highest quality.

Personal trainers and other fitness professionals can generate revenue in many different ways.
Here are just a few:

● Training individual clients

● Offering semi-private classes
● Bootcamps
● Nutritional coaching
● Autoship supplements
● Workshops
● E-books
● Seminars
● Teleseminars
● Online coaching

I hope that this book provides you with a way to create a new vision for what you can do in this
profession. You can leverage your expertise, time, and ability to expand your reach as a
professional, as well as your ability to generate income. No matter how successful you are as a
one-on-one trainer, it may not be a direct path to wealth. Instead, in order to survive as a
fitness pro, you must re-think the ways that you can deliver your expertise so that you are
reaching more clients. This also will create financial success for you, the fitness pro.

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In this chapter, we will carefully study the way that trainers must handle prospects in order to
create business. These are the steps that follow marketing; you’ve advertised, now you’ve
gotten a response, so what do you do with it?

The answer to that question will make or break your business. That’s why we’re going to spend
an entire chapter focusing on how to turn a prospect into a money-making opportunity, a much
larger one than your hourly rate.

If personal training is your main revenue, you don't want to limit yourself to “just” training.
Instead, take advantage of additional income opportunities by offering products:

● Fitness products
● Clothing
● Vitamins or Nutritional supplements
● Your own books or e-books on your topic of choice

Also, be sure to include Profit Centers from time to time. Profit Centers are extra programs or
services that you offer within your main business. This might be an occasional boot camp,
group class, or a special class that focuses on one aspect of training (like Mobility or Recovery).

If you have your own facility, you can even offer snacks and drinks on site. Whatever you do,
be sure that the products you have to offer go hand in hand with the type of business you are
creating and the image that you want to project. Furthermore, be sure that the products and
Profit Centers do not detract in any way from the service you are offering. If you find that they
are, get rid of them immediately. Your focus needs to be on your fitness niche -- always.

So, back to the beginning of the process. Advertisements generate leads, but it's up to you to
convert those leads into clients. Let’s see how.

INTERNAL MARKETING
Besides the external marketing efforts every business should employ, there are many ways to
pump up your business from the inside. This is called internal marketing. It is a vehicle that
causes better communication within the business. Marketing within the business allows you to
improve retention, increase follow up sales and foster a better environment for referrals from
your clients.

So here are six simple strategies that you can use to uncover that hidden fitness business
opportunity that most will miss with internal marketing.

Have A Monthly Theme

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Having a monthly theme makes internal marketing easy. Examples include New Year’s,
Valentines, Mother’s Day, Fourth of July, Back to School, and Thanksgiving. You could also do
things like March Madness (basketball), Spring into Fitness (April), Open House (June), Food
Drive (October), and others.

Birthday Cards

You most likely have your client’s birthdays on their contract. Instead of doing nothing with this
valuable asset, use it to make your clients feel special. Send them a card to let them know you
appreciate them and you might even consider including a gift certificate for a discount on a
product or service.

Ongoing Contact

Are you forgetting about your clients outside of their workouts? Hopefully not, but one way to
make sure you don’t is to develop a client contact worksheet. List the different ways that you
can stay connected with clients outside of sessions – phone calls, personal emails, meeting for
coffee or lunch and simple chatting after their session are all obvious but underutilized
retention tools that fit the bill. On your worksheet, list all of your clients on the left column and
these or other methods of contact along the top. Every time you use one of these tactics, mark
the date in the appropriate column on the worksheet. This will prevent you from losing touch
with your clients.

Weekly E-Mail Newsletter

Staying in contact with your clients is a great way to keep them active, promote back-end sales
and encourage referrals. One of the easiest and most cost effective ways of doing this is by
sending and E-Mail Newsletter. Send a weekly newsletter with tips, success stories and
announcements. This will help prevent clients from falling off the wagon and result in better
retention and more referrals.

Reactivation Postcards

If a former client is no longer training with you, they’re certainly a missed fitness business
opportunity by not referring others, not spending money on services and your retail offerings.
For a fraction of what it would cost to acquire a new client you can invite your former clients
back in the facility, get them motivated and reactivate them. Send a card, invite them to a week

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of camp or a personal training session. Most former clients never hear from the people they
used to do business with. Be different and enjoy the results.

Welcome Letter to All New Clients

Most times all a new client gets after they sign up is a pink copy of their contract and maybe a
nutrition handout. Not exactly the best way to start a relationship. Instead, send out a nice
thank you card and include information about your business, success stories and tips on getting
the most from their program. Be sure to create a message that reflects the intentions of your
business and genuinely say thank you to each and every client that entrusts their fitness goals
to you.

There is a significant fitness business opportunity that you’re probably ignoring, or at least not
completely tapping into. Implement these six strategies and the result will certainly be better
retention, increased monthly income and more referrals.

DEVELOPING AN EFFECTIVE SALES PROCESS

Most personal trainers enter the field with little desire to 'sell.' Their passion is helping people
not selling to them. In fact, many people in other fields feel this way, too. Creating a systematic
approach to selling will allow them to capitalize on their passion for helping yet produce more
predictable cash flow. So as you develop your sales process, write it out in steps they can
follow. It might look like this:

Greet prospective client in a friendly manner.

Explain the importance of the Par-Q and ask prospect to complete

Go over Par-Q answers

Provide complimentary session or assessment

Discuss how ongoing training will provide benefit to prospect

Close the sale

COMPLIMENTARY SESSIONS
There is a division of thought in the fitness industry on whether trainers should provide
complimentary introductory sessions or assessments; some fitness 'experts' feel that it

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undermines the perception of the trainer as a professional. These experts want trainers to be
perceived in the same light as doctors, lawyers, etc.

Unfortunately, less than 1% of the population has any experience working with a trainer, so it is
an unknown to them. Offering a session or assessment alleviates the perceived risk for the
client. Plus, if you can get them in the door, free sessions actually make them more likely to
come back!

Think about it. If you were a little apprehensive about visiting a personal trainer, but you
managed to overcome your fears and meet him or her – and found the entire process enjoyable
– wouldn’t you be likely to go back? Free sessions cost you a little time, but in the long run you
will profit from them.

UTILIZE THE PHYSICAL ACTIVITY READINESS QUESTIONNAIRE

This questionnaire is used in the first meeting to assess the prospect's readiness to engage in
strenuous activity, as well as provide the fitness professional with knowledge. It will be
discussed further in chapter 12, and an example is shown in the Appendix.

This information will help the trainer provide the best possible guidance and convert a higher
percentage of prospects into clients. By delving into the person’s fitness history, you build
rapport with him while you gather information. He will be able to see that you are not
judgmental about his lack of fitness or weak areas; he begins to get to know you; and he starts
getting excited about the idea of getting in better shape. It’s a valuable opportunity – use it!

PROGRAMS / PACKAGES
- There are many approaches that trainers use to package their services – often, clients buy
packages of sessions and pay for them up front. Sometimes they invest in training programs for
a longer commitment with multiple payment options. This section suggests some proven
strategies for creating such packages to enhance both sales and client retention.

Many fitness pros believe that they aren't making a lot of money in the business because they
don't yet have an e-book or a DVD for sale on the Internet. In fact, that isn't the reason that
must trainers do not receive the income they desire. Here's why: if your methods have not yet
been proven, then you won't be touted as "the expert." You can waste a lot of time creating an
information product, and it won’t sell anyway—because nobody knows you are an expert in the
field yet.

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Furthermore, it's not the front-end information products that make your money. The wealth
lies in creating Lifetime Client Value, and also in selling backend offerings to your clients. So if
the very first thing you sell them -- your training assistance -- does not give them the desired
result, you won't sell them anything else.

Once you have gained the client’s trust through a one on one or group program, consider
offering related products or services. The confidence your client has in you will increase tenfold
when he or she views you as a bona fide expert. Ancillary offerings like weight management
programs are great because they increase income, build client satisfaction, and they're a great
place to invite newcomers to visit with you in order to decide whether they would like to take
your classes. Once the new potential client sees a class like this one, it's almost certain that he
will be enthusiastic about joining your personal training program.

Don't get too hung up on selling products online. You have probably heard all the hype that if
your business is not online, it isn't going anywhere. As a fitness professional, your business
should be primarily off-line, and you should document what you're doing and offer it online
only to create more leverage and more revenue. So your best focus will be on becoming a
better and better trainer.

You can improve yourself by finding trainers you respect, and studying the way that they work.
In particular, look at the way they constantly improve their training knowledge -- even though
they are already in the top 1% of personal trainers. Top trainers, perhaps more than any other
group, attend classes and conferences regularly. Once you've seen this, do what they do; find
resources for learning and join in.

SEMI-PRIVATE (GROUP) TRAINING

In personal training, the traditional industry method is by training one-on-one. But why not
train more than one person at a time? What I think about my years spent as a strength coach
and baseball coach at the collegiate level, I Remember that I rarely coached one on one. There
might be an individual breakout session if there was a particular problem, but most of the time
everything was done in small to midsized groups. And certainly, everyone learned and nobody
suffered. So there is no reason why you shouldn’t “coach” small groups.

You may feel that because you are a "personal" trainer, your clients will demand one-on-one
training. They will expect individual attention and a personal touch. If you've never taught
groups before, you may be concerned that you won't be able to give a personalized workout to
someone who is in a group session.

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The solution to this is to offer all your clients two components: your initial individual program
setup, in which the client receives their own personalized program that is goal-specific. This
component has its own fee.

The second component would be titled something else, perhaps supervised sessions. These
would typically consist of a group of two to three clients who may or may not be on similar
programs. Think of visiting a martial arts class; there are probably several skill levels
represented, yet the class leader directs the entire group at once. Why can't you do the same?

When people are in small groups, you will find that it is no longer about the trainer. The clients
offer each other camaraderie and motivation, while you still incorporate the supervision to
ensure that each is executing their program properly. Creating semiprivate groups makes
financial sense, too. By offering semiprivate sessions, you can present a slightly lower price, yet
make more money per session. If you have been charging $75 per session, you could train two
clients at $50 per session, and still realize a $25 higher profit.

There is another financial advantage to this system; because you're offering your services at a
lower price, you will be able to bring in a greater number of clients. If you add in cross-selling,
up-selling and backend strategies, this means your bottom-line profits will increase
dramatically. For example, if you are only selling nutritional supplements to your clients, by
switching from one-on-one training to semiprivate you double your client base -- and also
double your backend sales.

If you want to begin offering your one-on-one clients some semiprivate training, consider the
following:

Tell them you are no longer taking one-on-one clients. (This is not necessary, as some
will still opt for semi-private because it is cheaper) Every new client comes on board as
semi-private.

When your existing clients’ agreements expire, inform them you will be raising your
prices. Explain that you also will be offering a lower cost alternative that will yield good
results.

Create a new schedule, with some blocks of time for semi-private.

Require a minimum of a 3-month commitment from the new semiprivate clients. This
gives the social support system time to kick in, and you’ll also have a more predictable
income.

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 Continue to prepare for each session in advance. Semi-private still requires a high level
of preparation – often more than one-on-one sessions.

OFFERING FITNESS BOOTCAMPS

Fitness boot camps are a great way to offer clients a wonderful workout working with a fitness
professional for $10 to $20 per session. They do not have to belong to the gym, purchase fancy
equipment, sign a contract or spend a lot of money in order to get fit.

Of course in a bootcamp you're not personally designing individual programs, but you can use a
model that will work for most of your target market's population. Offer different levels in the
same program -- an easy variation for beginners and a harder one for the more advanced
clients. Find a location in which you can offer the camp, get out and market it aggressively, and
before you know it you'll be making several hundred dollars an hour. The camps can easily add
$2000-$4000 a month to your income.

STEPS TO CREATING A SUCCESSFUL BOOT CAMP

Decide who your target market will be. Many of the successful bootcamps are women-only
camps, but some focus on weight loss or beginner fitness.

Secure a location that offers safety, good lighting, plenty of room, and parking. It seems that
local parks are good locations.

Research some of the successful camps. Set up a web site to promote your camp. Find
successful online examples and model yours after theirs.

Spend some time planning:

Price
Days and times
Your marketing strategies
Your starting date
Your training model
Your sales approach
Back-end offerings (more camps, higher prices services, supplements or nutrition
coaching, etc.)
Time factor -Will you sell it in 4 week blocks (the most popular), 6 week, etc.

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Write a press release to announce the launch of your camp to local media outlets.

Start marketing!

NUTRITIONAL COACHING

There is a huge demand for diet books, diet programs, and fitness franchises. This is important
for us to understand as fitness professionals, because people aren't hiring us to work out.
Instead, they are hiring us in order to reach their desired goal. Many of them believe that in
order to reach their true desired results (fat loss) they must diet, not exercise. So if you ignore
the nutritional side of weight loss, you are ignoring most of what the consumers are trying to
tell you. Here are just a few ways you could use a nutritional coaching program to enhance your
business:

Offer it up front, as an entryway program. This would be a feeder program that would funnel
people into your personal training services. People who otherwise probably would not visit a
personal trainer will almost always invest in dietary supplements, meal replacements, etc. So
these people will then have a more open mind set about working with you as a trainer.

As an upsell -- you could use the nutritional coaching as an offering when you sell your personal
training program. For example, offer a discount from your normal price if the client wants to
upgrade to the "deluxe program," which incorporates both training and nutritional coaching.
You will not only increase the value of that client -- you increase the likelihood of his or her
success!

A backend service -- nutritional coaching could be something that you offer to existing clients
when they are not progressing at a rate they believe they should. This happens often, and is
normally due to the dietary choices they're making, so this would make sense for their
program.

No matter how you get the client involved, the more they invest in your extra offerings, the
more likely they are to be successful, to give you referrals, and to stay with you for a longer
period of time.

SUPPLEMENTS
Over 65% of the United States population uses some sort of dietary supplements. That means
that more likely than not, your clients are taking something. So, if you are their fitness expert,

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why not be the person who directs them? You can educate them on what is right and help them
make informed choices. For example:

Food-based nutritional Supplement - 97% of Americans don't get the Recommended

Daily Allowance of essential vitamins and minerals from their diet. So all the major
medical and health organizations recommend a whole food nutrient complex.

A meal replacement for people who don't have time to prepare meals every three
hours. A bar or a shake can provide convenience as well as become their fitness fast
food.

One of the easiest offerings to make is a post-workout recovery drink. It will maximize the
results of the workout speed recovery and help reduce soreness. The best product is a simple
carbohydrate and protein mixture that is easily absorbed by the body.

INTEGRATING SUPPLEMENTS INTO YOUR CURRENT PROGRAM.

You can offer your supplements to clients during their initial assessment, during your
nutritional coaching program, or during a special nutrition consult. Go over the importance of
eating frequently balancing meals and meeting your body's nutritional needs. Then show them
the products that can help support these goals.

Offer the opportunity to purchase their products right there, or if they want to save a little
money and time enroll them in your "fit club auto-ship program."

AUTO SHIPPING SUPPLEMENTS

We have discovered that over half the clients who are presented the auto ship option actually
enroll in the program. We simply explain that they can have their products shipped right to
their door every month, and they're going to save a significant amount of money because you
don't have to stock it. With several hundred clients, this can be a terrific addition to your
bottom line. You have nearly no inventory, you spend very little time enrolling a client, and

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there's almost no work to do after your initial sale. If the clients like your products and their
results -- they continue on the auto-ship program.

There are a few tricks that you must keep in mind in order to have a successful auto ship
program in place. First, only offer products that you truly believe in, and that are backed up by
research. It has become much easier now for fly-by-night companies to create so-called
nutritional supplements and sell them, so it's more important than ever to do your research.

In order to prevent confusion, focus on to three or four recommendations only. Do not try to
offer too many products at once.

As with everything else, make this part of your business system. Choose the specific times that
you will make recommendations and present your offerings, and stick to them.

For best results, tie the products into a nutritional coaching program. This could be your own,
or someone else's. You will find that clients who are already enrolled in nutritional coaching will
purchase the products at a significantly higher rate than the ones who are not.

REFERRAL SYSTEMS THAT WORK

The biggest asset your business owns is your existing client base. Think about that for a
moment. How can you grow such an asset? The simplest way would be to create a referral
system that encourages these people, your current clients, to refer other clients to you. After
all, these are the best prospects you could find for marketing purposes. The existence of their
testimonial almost guarantees you will do no selling; they arrive ready to “sign on the dotted
line.”

Imagine that you have determined the Lifetime Client Value [see the next chapter for a
definition] of Sally Smith to be $1200 ($100 per month over the next 12 months). You know,
then, that you are very safe investing only $100 of that LCV into the program. So think how you
can use that on Sally herself, to encourage her friends to become your clients.

Even if the prospect does not sign up, you need to send Sally a thank-you card or a small gift
just for trying. But if the prospect does become a client, then step it up; offer Sally a small cash
reward.

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Does it sound strange to you to “buy” your clients? That’s actually what you do every day. You
pay for them by sending big checks to the newspaper for advertisements; why not pay your
clients (who you like better anyway) for the same service?

If you sit down with each client and say, “I want to focus all my energies on helping you, the
client. I don’t want to spend a lot of time on marketing, or on going out and prospecting. I really
like the clients I work with; I like you. So I was wondering if you have anyone like a friend,
coworker, family client, church client who would enjoy the same benefits you have? Let’s see,
you have lost weight, improved energy, and gotten into shape. If you refer some of these
people to me I will (pay you x dollars, or give you Y% off your next training program, or give you
a discount of ____ on the next training program.)

The incentive you offer is completely up to you. If cash flow is so poor that you cannot afford to
give a discount or cash, then offer a service, like so many extra training sessions. That way all
you are putting in is time.

After you’ve created an incentive program like this, go one step further. Leverage those same
people again by asking to use their “before” and “after pictures. Make a Wall of Fame in your
studio, so that everyone who comes through the door sees the results. Wow! What a
testimonial!

Also consider using those clients’ testimonials and photos in a newsletter so that others can see
this tangible success these people have achieved.

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Chapter 9: Image and Marketing
There's a famous saying, "build it, and they will come." However that doesn't apply to personal
training, nor in fact to any small business. Entrepreneurs absolutely must learn to market or
"sell" their service in order to stay in business. The cold hard fact is that if not enough
prospects show up for your business, you won't be around long.

Part of your marketing needs to involve reading every marketing book for small business
owners that you can get your hands on -- and then applying the principles you learn. Being a
proficient marketer is almost as important as being a great personal trainer. In this chapter, I'll
attempt to give you the basics of marketing principles.

Any salesman will tell you that in marketing there are four p’s:

Product-the item that is being sold; in this case, your personal training service.
Promotion-what you're doing to get the word out that you're offering a personal
training service.
Price-the cost to consumers of your product, that might have believed
Place-the location you're offering your training business.

If you have never run a business by yourself before, I can promise you with absolute certainty
that marketing tends to fall out of the plan. Even people with the best of intentions neglect
their marketing program. Most business owners are so caught up in their day-to-day business
that they don't think of marketing until they're already in trouble. A marketing plan that is
written out and treated as concrete goals over the entire year will be the key to your success.
By taking the time to write it out, you can be sure to make it happen. Your program will be able
to get maximum exposure, enjoy more sales, and enjoy a faster success.

Why should you work so hard at marketing? In order to answer this question, let's look at the
Lifetime Value of a client. If you know what the Lifetime Value of each client is, you can
essentially double your profits nearly overnight. This is a marketing edge that you will have that
allows you to raise yourself head and shoulders above your competition. It helps you to know
exactly what you can spend in order to bring a new client in and what the results will be.

CLIENT LIFETIME VALUE

If you aren't familiar with the term "value of a client," let me explain: the Lifetime Value of a
client is the average monthly gross total of revenue per client, multiplied by the number of
years you retain them as your client.

Let's take an example. Suppose that most of your client spent around $400 per month with
you; this is a combination of training and retail sales. Let's say that you've looked over your
records and most of your clients have been staying with you for about one year before they
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move on. So each client is worth $400 X 12 = $4800 in gross revenue to the business. When
you look at it that way, it's not so scary to spend money on marketing, is it?

So you see, marketing is simply the process of buying new clients. Let's say that you decide to
launch a direct-mail campaign, which you have heard is best done in three separate letters.
You know that it will cost $600 to create and mail the three letters to 400 prospects. From the
mail-out, you receive six new clients. This means you paid $100 apiece to buy each client. But
Remember, the client’s value to you is $4800. Who wouldn't spend $100 to get back $4800?

This brings me to another important point. Prior to starting your marketing plan, which we are
going to look at in the next section, you need to make a decision about how much you are
willing to pay for each new client. That is why your average lifetime value of the client is so
important. You can use it to make sure that your investment is profitable.

Don't forget that the average lifetime client value is a gross number. If you're making retail
sales, you have investments in your products, advertising and so forth. For your training you
have equipment, facility rental, etc. So you must remember to calculate all the costs that are
incurred by providing services and sales and subtract these from the LCV. This will give you a
net number. Let's call it the net lifetime value of your client.

If the cost of a client is $100 as in the above example and the net lifetime value of each client is
$2000, you are getting at 20:1 return on your investment. This is just an example; whatever
your numbers are, you have to decide what the acceptable return on the investment will be
based on your cash flow. Remember that marketing costs are incurred up front, while the LCV
is spread out over time. With good cash flow, you will easily be able to make the marketing
investment. With poor cash flow or few clients, you may not be able to afford as much as you
would like. This is one of the many reasons why making a marketing calendar is so important.
But I'm getting ahead of myself. For now, let's try to determine what separates you from the
competition.

DEVELOPING YOUR UNIQUE SELLING PROPOSITION

Your unique selling proposition, or USP, is a single focused statement that separates you from
the competition. It tells why you are in business. Think of it is a statement of your position
against all the others. It can be based on any of the "ps" (product, promotion, price, place) or
on any ingredient that you have and others may not. You can find USPs based on all sorts of
things: special hours that offer convenience to working people, Special programs catering to
certain marketing segments, weight loss, or even location.

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You USP answers the question, "why should I choose your service over any or every other
opportunity available to me?" Think about the reason you frequent various service stations,
restaurants, positions dealerships etc. most of the time you will find that their USP is something
that appeals to you.

As you work on developing your own USP, you’ll become acutely aware of those of other
businesses. Learn from their examples -- even if they aren't trainers or even fitness businesses.
Think about whether they actually have a USP, whether you could make up one to fit them, or
whether you could improve the one they already have. And of course, always consider a way
that you can use the ideas that somebody else has already thought of for your own business. If
you can't think of a strong enough USP, go to the local public library and look at the Yellow
Pages directories for cities all across the country. There you will find tons of marketing ideas --
those that work and those that don't.

Consider some of the following well-known USPs and the businesses they represent:

Driver’s side airbags.

Mountain grown coffee.

Fresh hot pizza delivered in 30 minutes or less.

For the people who are purchasing these products, the USP represents an irresistible offer.
Chrysler, who first offered the driver side airbags, didn't get to use it for very long before other
companies caught up. However, while they were offering driver’s side airbags, this was a safety
feature unique to this car manufacturer -- an important to safety conscious consumers.

What is your irresistible offer? More importantly, what is the mission of your business? It
probably isn't to make money; let's face it, if you had a burning desire for lots of money you
wouldn’t be in the personal training business. There is probably a certain thing you want to do
or be. The challenge is to find a statement within yourself and translate it into a marketing
message.

Still confused? Buy a stack of 3 x 5 notecards and on each one write one fact about your
business, one feature no one else has, one benefit that you can offer, one promise you know
you can keep. You get the idea. Keep brainstorming over and over until you have a huge stack
of cards. Then put them in order of their importance to you and your clients. Pull out the ones
that differentiate you from your competition. Eventually you'll find your message.

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BUILDING YOUR IMAGE
After determining what your personal message will be, one of the most important aspects of
your business will be your image. This is reflected by everything, from your haircut (or lack of
one) to the clothes you wear, the amount of lighting in your facility, and the friendliness of your
staff.

You are promoting your business image, whether you know it or not, all of the time.
Concentrate on being pleasant, attractive and knowledgeable, no matter where you are or
what you're doing. This will present the kind of business image that will draw in new clients.
Creating this good first impression is especially crucial to you, because you provide a service.

This will change the way you go about your day to day, business of course. I'm not talking now
about working in a gym or in your studio. I'm talking about, for example, going to the grocery
store. Maybe you used to go to the store in torn up sweats and before you took a shower. But
now, you'll probably never go to the store without cleaning up and checking your appearance.
When you get there, you will treat everyone courteously because they all know what business
you represent.

Or do they? Does everyone you come in contact with know what you do and what your service
is? While you're doing that grocery shopping, don't forget to update people you know on new
classes or services your business is offering. Everywhere you go, you should be prepared to
promote your business. Every time you visit another business, it is an opportunity to cash in on
free promotion.

Also, everyone in your sphere of influence should know what you do for a living. They should
understand clearly what a personal trainer does and what other services or products, you offer
in your studio. Even if these people are not interested in your classes, they may run into
someone else who is.

Owning a business also means you seriously consider the events to attend and the
organizations that you join. Talk to people wherever you go; whether you're at your child's
baseball game, a community breakfast, or even at the dentist's office. Show an interest in the
people you meet, and they'll respond with an interest in you -- and you'll be able to successfully
market your business.

MARKETING METHODS
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NEWSLETTERS
A newsletter is one of the easiest methods of retaining clients. Plus, people tend to hold onto
them; often passing them on to others or dropping them off in doctors’ waiting rooms or other
places where they could be seen.

Setting up a newsletter format is easy. You create a template, then you just drop in the news,
articles, and other information each month. Newsletters can be sent by mail, but it's much
cheaper to send them by e-mail. Just be sure you get permission before you start sending out e-
mails. Ask the clients to add your newsletter e-mail address to their white list.

SALES THAT GET YOU NOTICED

Using the word FREE can get tons of attention for a new business. For example, offer a contest.
You can gain a lot of interest, as well as plenty of free publicity by giving away goods or services.
You might start within your classes: give a free shirt (with your logo on it, of course) to the
person who brings you the most new prospects for your BootCamp. Or branch out, and hold a
weight-loss contest for the entire area. You’ll establish yourself as an expert while drawing in
new business.

Brochures- people tend to keep brochures, so this is one area where it may be worthwhile to
spend the money. Make sure yours emphasizes you and your service, and that it looks
professional. Use heavy, glossy paper and pay for a professional layout if possible.

Magnets – everyone has magnets all over their refrigerator these days. Yours should have your
name, the company name, the phone number, and your slogan (“Trainer to the Stars” or
“Weight Loss Specialist”).

DIRECT MAIL
Direct mail can be targeted to some very specific groups. Lists can cost from free (if you can beg
the list off of somebody, or create one yourself) to $150 per thousand names, on the high end.
The advantage of the higher-cost lists is that they are usually pre-screened and can be very
targeted (age, gender, zip code, etc.) to match your target market.

Direct mail addresses can also be generated from the names you gather – they can be your
clients, former clients, or people who belong to the gym you work for. Direct mail is a great way
to keep in touch with clients or potential clients. Here are a few hints for using direct mail:

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Know your audience. The more specifically you target your client, the more success you will
have in your direct mail campaign.

Use a great headline. Most experts say you only have three seconds to get the point across.

Offer benefits—and more benefits. Especially if the mail-out is targeted toward prospects, it
must stress benefits above all else.

Write in a conversational tone. Forget formality; write exactly as you speak.

Offer a guarantee. Most people never act on it—they just want the option to back out if they
aren’t satisfied.

Be credible. Give enough information so that the reader can see you know what you’re talking
about – but don’t overwhelm them.

Use testimonials. This is the single most effective weapon in your arsenal.

Give them a reason to act now: a coupon that will expire, a class that starts soon, a one-time
offer.

Follow up. There is no point in sending a direct mail campaign if you’re only going to do one
mail-out. Instead, mark your calendar and plan to mail three or 5 times. It sometimes takes
several letters to get a response.

Be reasonable in your expectations. For every 100 letters, you may get 3 to 5 responses. Hey,
that’s five you didn’t have before--- right?

OTHER WAYS TO BRING IN BUSINESS

Signs – a great sign is the key for most successful retail businesses, and it should be important
for you, too. It has to be in the right location, and it needs to be visible at the time of day that
most people will see it. That means if commuters need to see it at night, you’ll probably need
lighting on it. Consider these questions:

What is the zoning for the area where you wish to put the sign? (If your idea does not meet
with the ordinances in the locale, you can ask for a variance from the city)

How much can you realistically pay for the sign?

What kind of weather might it be exposed to?

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Does it need to be seen at night?

For the sign you wish to purchase, what distance can it be seen?

Web Sites

A web site can be utilized in many ways. It can tell newcomers about your business, offer them
a sample of your schedule and pricing, and show testimonials. If used correctly, the website can
sell your service before the client ever dials the phone!

One of the most important parts of a website is what you do first: choose a domain name. The
name should be easy to Remember, and as close to your business name as possible. Once you
have purchased a domain name, you need to get web hosting and then build a website. I would
recommend hiring a professional to do that. You can find people at Elance (www.elance.com)
or Rent-a-Coder will build a stellar website for very little expense.

If you have a website, be sure that you answer emails promptly. If they are not answered in less
than 24 hours, most clients feel that there’s “nobody home” and quickly move on to the next
name on the list.

Websites can also be used to sell information products. These are e-books or DVDs (or CDs) that
address one particular issue in fitness. Don’t try to write a general book, or address more than
one topic; it won’t work. There is not enough room to cover the entire concept here, but
basically:

1. You decide on a niche—for example, men over 40.

2. You research that niche to locate a problem—say, lack of flexibility.

3. You write an eBook that gives them 10 (or 20 or 50) solutions to the problem.

4. You place it on your website for sale.

NETWORKING
Networking among your peers as well as any other groups or organizations you come in contact
with is vital to your business. You can network anytime, anywhere; it doesn’t have to be formal.
Of course, if there is a business networking group in your area, you should join – in fact, you
should be the personal trainer to everyone in the group!

Networking is just a fancy name for letting people know what service you can offer them. Make
it clear that you can help them solve their fitness issues; they’ll Remember and pass the word

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along. Hand out business cards whenever you can. And most importantly, refer others to your
networking partners, too. If you’ve met an accountant, and you run across a new
businessperson who’s looking for one, pass along the name. Then follow up to make sure they
called; this way the friend will know who the referral came from.

PUBLIC SPEAKING

Understanding the Importance of Public Speaking

There is no faster route to expert status than public speaking. To be considered a leader in the
field of professional personal training you must be able to speak in public effectively. It instantly
positions you as an authority and a leader in your community.

Additionally, public speaking, when done correctly, is one of the most powerful sales tools
available to you. Why sell to one person when you can sell to 20, 30, 50, 100 or more at the
same time?

Overcoming the Fear of Public Speaking

More people are afraid of public speaking than they are of dying. Fortunately, there is an
international association that helps people overcome this fear and become effective public
speakers. If you have trouble speaking to an audience you need to become a member of Toast
Masters. You can find a local chapter by going to their website: http://ToastMasters.org

Public Speaking Basics

First, you do not have to be an incredibly polished or “smooth” speaker to be an effective one.
A confident and clear delivery is all that is necessary.

Second, the type of public speaking we are recommending here is the free variety. In other
words, when starting your public speaking career you can expect to speak free of charge, but in
return you are able to promote your business at the end of your presentation.

Third, it’s perfectly fine to use note cards or power point slides to help guide you through your
presentation. What is not acceptable, however, is reading your entire speech off those same
slides, note cards or piece of paper. While that might seem blatantly obvious, it’s been done
too many times to count.

Fourth, create a simple bio on yourself and a description of your presentation.

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Fifth, be sure to send a thank you card to the person that booked you to speak. Another
obvious point, but while personal trainers know they should send them, they rarely take the
time to do so.

Finding Public Speaking Engagements

Networking groups, civic organizations and endless associations meet frequently in just about
every community. And typically, they all have a speaker come in and present on a specific topic
at each of their meetings. So, obviously, they are more than happy to have speakers contact
them and offer to speak for free.

You can find places to speak by simply searching online or asking your personal network if they
know of places you can present on fitness, health and/or weight loss. Additionally, most places
you actually speak at will have audience members happy to refer you to other organizations
you can speak at.

Speaking to Sell

Remember, you are doing these presentations free of charge. That is why it is critical for you to
know how present so you can sell the services you provide.

First, understand that under no circumstances are you to do a “commercial” for your business.

Second, most personal trainers make the mistake of “giving away the store” during their
presentations. If you teach your audience the basics of fitness you will almost certainly leave
without any new business. Why would they pay you when you just taught them – for free -what
they need to do to reach their goals?

Third, the correct method is to use the “Lies and Myths” approach. As an example, since most
people hire personal trainers to help them with fat loss, you would present on all the diets, pills
and potions that people try before getting down to proper nutrition and exercise. In other
words, when you explain to them why what they’ve tried has failed them they will pay you to
learn the correct way to get results.

Fourth, at the end of your talk be sure to present your audience with a special offer or free trial
of your services. Make it an offer they’d be crazy to refuse. And be sure to let them know the
offer ends the moment you leave. Giving people a good reason to “jump” gives you the best
possible chance of leaving your talk with new business.

Joint Ventures

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One of the best techniques to get new clients is to find out who has already done your work for
you. What that means is that some other business, or some other professional practice, has
already spent a lot of time, effort and advertising dollars to get clients, patients or customers
that can now be yours for little more than just asking. We’re talking about gaining access to
new clients with the express permission and enthusiastic cooperation of the business that
acquired those clients in the first place. This process is known as setting up a “joint venture”
and is also known as a “Host/Beneficiary relationship.”

Company A (the Host) agrees to let Company B (the Beneficiary) deliver a sales message to
people who are Company A’s clients. If you are the Beneficiary in this unique arrangement, it
will bring you new clients and more money quickly. And it will also help you if you are the Host
in the process, because your clients will respect you for helping them learn of a new value
available to them. The best part is that it's relatively easy to create profitable Joint Venture
relationships.

This is all you have to do:

1. Ask yourself, “Who already has a strong relationship with people to whom I might be
able to offer my noncompetitive service?”

2. Once you’ve made a list, visit those non-competing businesses and ask their owners to
introduce your service to their client list. When you go to see them, take along plenty of
information about what you do, and some powerful testimonials. As an incentive, offer the
prospective “Hosts” reverse access to your client, or offer them some percentage of any sales
that you make to their list. Let the prospective Host know that at the very minimum their
clients will thank them for introducing you to them and helping them gain information about
your business.

Here’s an example of this secret in action:

A chiropractor writes a letter to his patients and, in the “P.S.”, tells them they might want to go
to a special squeeze page that his personal trainer (you) has created to download a free report
revealing “The 7 Secrets To Losing Stubborn Fat And Keeping It Off Forever.” This gives you a list
of new prospects to promote your offering to and also allows you to track the clients that come
to you form the chiropractor so that he can be compensated appropriately. With this approach
the introduction itself doesn’t have to be a formal “endorsement” letter (although that is an
effective technique.)

Maybe you’re still not sure if the Joint Venture technique will work for you. If so, let’s run
through the steps one more time. First, figure out who already sells to and has strong

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relationships with people in your target market. Once you identify who those businesses are,
then start making a list. Use either the Yellow Pages or a business directory and locate every
business matching your profile in the geographic area you’re targeting.

Now it’s time to contact them. You can contact them by letter, in person, by phone, or all
three.

When you contact them, you might tell them this:

A. I own an upscale personal training business in our community.

A. I would like to form a strategic alliance with you.

B. I realize that you have spent an enormous amount of time, effort, emotion, energy and
expense building goodwill with your clients.

C. Those clients, when they’re done doing business with you, may not do any new business
for months or years. But there’s a way you could regain the time, effort and expense that you
invested in that relationship and do your client or customer an incredible service.

That should keep them open-minded to listening to your proposition.

Offer the Host (and the Host's clients) whatever is appropriate in your situation.

It might be 50% off the normal monthly rate for the first three months or some special bonus
or incentive exclusively for them. The key is to offer a preferential advantage to the Host’s
clients. Something they wouldn’t get on their own if they walked in off the street. Special
treatment is crucial to the success of a joint venture.

Why?

Because it’s critically important that the client feel that the Host has gone to bat for them and
negotiated a below market price or an above-market benefit or bonus or guarantee that gives
them extra value. It’s important that anybody you get to endorse you and your business
distinguishes their clients as being special, important and unique. You’ve got to show the Host
that by teaming up with you they have an opportunity to bring a great benefit, advantage, or
superior value to their clients that they would have never thought about before.

If the business you approach has an ongoing selling relationship with their client, then you may
approach the joint venture arrangement a little differently. Explain to the Host that you’re not
going to take any money away from him. Show him that there’s no conflict at all. There’s only a
complementing connection between what they do and what you do.

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It’s important that you make your offer economically appealing enough to get the Host excited
about the possibilities. Show them that because you expect the marketing costs to be lower
and the response rate to be higher, you feel very comfortable offering to share a

generous percentage of all new sales resulting from their endorsement of your business. You
can offer a few different options. It can be a share of the profit. It can be a fixed amount per
new client. It can be so much per prospect or lead or inquiry. It could be a fixed fee for doing
the whole joint venture or any combination of those.

You could even offer to give them a very large percentage per sale if they agree to pay for all
the printing and postage costs. All you can do is ask. They might agree to this. And you can
afford to give them a large percentage. After all, you would have never gotten these clients
without their help, and the marketing is costing you nothing! The Host is paying for it.

Once you’ve told the Host what the financial incentive is to them, put it into terms the Host can
get enthusiastic about. For example, if you are planning on sharing 25 percent of the training
fees with the Host, you could say: “Let me tell you what I think that means, Mr. Host. The worst
case scenario, if my projections are correct, I expect to be giving you a check for $1,500 two
months from now!” That lump-sum figure gets people excited. After all, they’re getting money
for doing nothing but making their list available to you!

It’s important that you let the prospective Host or endorser know that he is going to get most
of the benefit from the joint venture. Tell them that if this works well, they can do joint
ventures with a lot of other people so they can have multiple streams of “found money”
coming to them every month. And if your joint venture with them doesn’t work out, it will only
be your loss because you’re the one who funded the deal and you’re the one who expended all
the effort!

They can’t lose!

That’s a powerful offer, isn’t it?

If you make use of this powerful secret often enough, it will help you build a profitable
business very quickly.

EASY UPSELLING
In our industry especially, the concept of the upsell and creating backend sales is a largely
untapped revenue source. If you look outside of the fitness industry, even if you're going to the
cinema to watch a movie they ask you if you'd like to upsize your drink for an additional twenty-

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five cents. That’s upselling. If you go to McDonald’s, - "hey, would you like to 'biggie size' that?"
- "would you like to add fries?"

No wonder we’re losing the war on obesity. They’re pretty good at this sales process, so you
know there's something to be learned from that. Virtually anything outside the fitness industry
shows an ability to create an instant upsell at the point of sale. That’s the model we should be
following.

The universal truth to be learned from this is that when somebody makes a purchase, that’s
when it’s easiest to increase their purchase. They already have their checkbook out or credit
card out. That’s why you find all the tabloids and candy at the check counters; they know that
those additional impulse purchases are a revenue source.

Your clients are buying these products anyway, so you should not feel embarrassed to offer
them. In fact, if you are the fitness resource, the fitness professional for the client, you want to

A) Have some input on anything they're taking that's going to affect their health, their fitness,
and their progress with your program, and

B) If they're going to be spending that money, why not spend it with you, rather than the
arbitrary person at the checkout aisle at Walgreen’s.

In fact, it’s best if you do offer upsell items like supplements, because you can monitor the
quality and so you can reap the benefit as well.

DEVELOPING A MARKETING CALENDAR

The marketing calendar is a tool that is essential for every successful business person. It will
help you to structure and think through your sales goals So that you can coordinate all your
efforts. It is also a great help with budgeting. By using a marketing calendar you can stay on
track, working at marketing at least part of every week. The downfall of most business owners

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is that they lapse in their efforts, even with the best of intentions. Over the long haul, a
marketing calendar can save you hundreds of dollars each year.

To make a marketing calendar, take the looseleaf notebook (three ring binder) and insert 52
pages, one for each week of the year. Each page should address the marketing activities that
you intend to participate in that week. Include any promotions or events as well as direct and
indirect marketing. Calendars work best when they are very specific, including both the
marketing costs for the event and the results that followed. At the end of the year you will be
able to see which strategies in your plant were productive, and where you might have gotten
off target. These items help you to plan your future marketing.

Writing out a plan on marketing calendar also helps you to focus and to see where your
investment in marketing has value. It is easy to become discouraged, especially when you are
using indirect marketing methods that may not exhibit an immediate result.

There is no right or wrong way to develop this calendar. Its purpose is to help you create
positive results. Think of it as a map -- a guideline to help you raise your income and grow your
business.

KEEPING SEVERAL POLES IN THE WATER

There are two different kinds of marketing strategies. The first is image or brand marketing. It
reminds clients or potential clients about your brand and the services that you offer. Most
advertising would fall into the category of image marketing.

Direct response marketing is the other type. It is created in order to evoke a response,
compelling the client to take action. Many infomercials are good direct response
advertisements. Internet directives such as "click here" or, by now are also good examples of
direct response advertising.

Fitness pros for the most part don't have a big enough business for image marketing
advertising. It simply isn't feasible for smaller businesses. Because we are small-business
people, we need quick returns on our investments -- which translates into quick or immediate
responses to our ads.

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Besides ads, there are other ways that are free or low-cost that we can market our businesses.
People can find out about your business in many ways besides reading print ad. One cheap way
to tell about your business is through the Internet. If you don't have one, you definitely need to
create a website. Your webpage should not be considered the center of your business. Instead,
Web advertising should be a supplement to your advertising brochures or introductory packets
that you hand out to your clients. It should tell people about you, your business, and your
products.

CREATING A SUCCESSFUL DIRECT RESPONSE AD

If you have been studying ads from your competition, you know that one of the biggest
problems is that they give no reason for the reader to contact the business or individual. There
is no reason to ask for information and a reason to do business with them. In fact most of them
are carbon copies of one another.

In order to make your business stand out and get more clients than you could ever possibly
need, you must convince the reader that you are different from all the rest. Offer them a
reason to contact you and show them that there's an advantage in doing so.

All direct response ads have several characteristics common. First, you can track them through
the media. That means that when someone calls you for information or wants to become a
client, you can determine exactly which ad they are responding to.

Second, direct response ads must be measurable. By keeping track of which ones get
responses, as well as how many responses, you can determine which is the most effective and
change or drop the others. Staying on top of this tracking will greatly reduce wasted
advertising dollars.

Most importantly, you can decide quickly how effective they are and choose to drop them or
change them at will.

Chapter 10: The Legal Side

When you're caught up in the excitement of starting a new business, the last thing you want to
think about is that one of your clients could become ill during a session or even injured. But it
does happen, so it's something every business owner must think about, as the saying goes, the
best defense is a good offense. So long before you encounter your first problem, think about
what problems you might expect and how you are going to handle them in a manner that is
best not only for you, but also your business and your clients.

OFFSET LIABILITY WITH SPECIALIZED TRAINING

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Most people know the basics are first aid, especially if they have taken college courses or
fitness certification classes. But a first aid certification course will also teach you how to handle
bone and joint injuries, muscle problems, and how to move victims correctly. It will also teach
you how to correctly treat bleeding. First a certification should be a prerequisite for yourself
and any trainer who is coming on your staff.

In addition to first aid, everyone on your staff should be trained in CPR. CPR courses teach
people to recognize cardiac emergencies and breathing problems. You will learn what to do in
case of a client having a heart attack, stroke, seizure, asthma attack, or a diabetic emergency.
CPR certification must be updated yearly in order to remain current.

When requiring certification such as these are your staff, you want to spend some time before
you begin hiring trainers thinking about how to handle their certification. You must never take
their word for it; instead, ask to see the certification cards and make photocopies of them. Keep
records of whose CERT classes are about to expire, and remind them that they need to update.

The other option is to offer the training courses at your location. This has an added benefit of
bringing people into your building who may not normally higher personal trainers. It's one more
way to market your business. Plus, it makes sure that you and your trainers are current on
certifications at all times.

Besides certifications, you must be ready to handle any sort of emergency. What if the building
catches on fire? What if one of your clients complained of chest pains? What if their family
client enters the room and begins making threatening remarks?

There needs to be some sort of emergency procedure in place. This is something you should
write out in your manual and keep posted in the office you and your trainers use. Even if you
are the only employee for now, it makes sense to have a plan in place. Above the telephone in
clear black ink, post the address of the building, the telephone number, and the name of the
business. This way, even if the person using the phone in that emergency does not Remember
the address they can easily provide it.

Sample Emergency Procedures

1 Administer immediate appropriate first aid. Apply CPR if necessary.

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2 If anyone else is in the building, ask them to dial 911 so that you can remain with the victim. If
you are the only one, dial it yourself.

3 Read the address allowed to the emergency dispatcher.

4 Follow the instruction, the dispatcher gives you. Stay on the line.

5 Once the situation is under control, be sure to write up a clear and detailed incident report
for your files. You will find a sample one in Appendix A. Be sure to note, who was present, what
steps the trainer took, and anything else that took place; these details will be critical if litigation
arises.

HOW TO FIND A GOOD ATTORNEY

Legal problems such as litigation are issues you should never attempt handle without the
assistance of an attorney. But attorneys do a lot more than hand out legal information. They
can also give you strategic advice and help you prevent legal problems up front. You can think
of a lawyer as your legal "Coach" who will help you educate yourself in the way that you should
handle the legal aspects of your business.

But the hard part is finding an attorney who specializes in small businesses, let alone fitness in
particular. You can't learn from the telephone directory or an advertisement whether a lawyer
is good, and whether he has experience with the fitness industry. For this reason, it is important
to talk with people who are in similar businesses about the lawyers they know. If you are
involved in litigation, try to find someone who's had the same problem as you. This should give
you a good lead.

Don't base your entire decision on someone else's recommendation, though; you may have a
different personality or dislike the lawyer’s style. Conduct an interview, or ask the attorney if he
would be willing to provide you with an hour of coaching so that you can determine whether
you are comfortable with him or her.

If you can't find any one who can give you a recommendation, look online at Nolo's lawyer
directory. This is a comprehensive guide that tells you about each attorney’s experience,
education and fee schedule. You may also find lawyer referral services. Some screen their
attorneys and specialize in a particular niche or offer a particular level of qualification. Others
will list anyone who is in good standing with the State Bar. So you will need to check carefully
before choosing one who has been recommended by a referral service.

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TAXES MADE EASY
Tax planning and management must be considered during every step of any business
undertaking. Entrepreneurs have to understand the tax system and its affect on the business in
order to run the operation successfully, no matter which business model has been chosen. In
addition to selecting a business structure, you should choose the 12-month period that defines
your tax year. This is the annual period during which you record and report your income and
expenses. You can use a calendar tax year, dating from January 1 to December 31, or a fiscal tax
year that consists of a different 12-month period.

Once you have chosen the tax year (most people accept the calendar year—this makes it easy),
you must decide which accounting method you will use. Under the cash method, income and
expenses are recorded during the year they are paid or received. The other method is accrual,
in which you report income that is earned (even if it hasn’t been paid for yet)) and deduct
expenses when they are incurred, even if you have not made payment.

Every employer also needs to obtain a Federal Employer Identification Number (EIN). This helps
the IRS determine who each tax return belongs to. This is required if:

You pay wages to an employee

You have a self employed retirement plan

You operate as a corporation or partnership

You are required to file employment, excise, fiduciary, or alcohol/tobacco/firearms taxes.

If you operate your fitness business as a sole proprietor with zero employees and do not meet
any of the other requirements listed, I still recommend that you apply for an EIN. For one thing,
some businesses require them ---banks who set up business accounts, and wholesalers who
want to be sure they are selling products to a bona fide business. The other reason to get one,
though, is to keep from having to use your social security number as your employer number.
Identity theft is a real possibility, and it is best to refrain from use a personal social security
number whenever possible. An EIN can be obtained online from www.irs.gov.

As soon as your company is operational, it is responsible for taxes on three levels:

Federal

State

Local

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Tax laws are complex, and they are revised frequently. It is best for every business owner to
obtain guidance from the IRS or from a CPA to keep records correctly and complete any tax
forms that may be required. I’m not a tax expert, so the information in this section is simply an
overview. As business owners, we all run the risk of a tax audit – that’s incentive enough for me
to attempt to keep clear, current records!

FEDERAL TAXES
At the Federal level, the legal structure of the business defines how income tax regulations will
apply. Here are some examples:

Sole Proprietorship – most fitness professionals choose this model of business structure. The
owner is considered inseparable from the business. It is taxed as if the owner is an employee.
Sole proprietors should estimate income tax each year in order to pay a quarterly tax.

Partnership – similar to the sole proprietorship in that tax liability is assessed for the incomes of
the partners. Each partner files a separate form (if the shares of the profits are not split 50-50,
this is noted on the forms). A report has to be submitted to the IRS each year. Partners also file
estimated tax.

Corporation – Corporations file a more complicated sort of report, including annual income and
company dividends. The corporation files a return to the IRS separately from your personal
return (you are considered an employee of the corporation). Estimated tax payments are made,
either via a Federal Reserve Bank or another authorized bank.

S Corporation – S Corporations can be taxed just like sole proprietorships or partnerships, as

long as certain requirements are met. This keeps you from paying both corporation and
personal income taxes. There are certain requirements that your business must meet before it
can be declared an “S” corporation. Please see Chapter 5 for details.

STATE TAXES
Every state has its own tax laws, but there will be some state/local taxes for your business. In
the majority of states, business owners must register their business with the state tax agency. If
the business is collecting sales tax from its clients, a state sales tax permit is normally required.

Nearly every state has a business or corporate income tax. It will depend on the structure of the
business. Most state tax information can be found online at the US government’s website,
www.business.gov.

REGIONAL TAXES
Regional taxes on health and fitness businesses vary from one location to the next. The rates
may include taxes on:

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Gross income

Real estate

Retail sales

Food sales

Services

Clientship fees (because in some areas these are considered entertainment for tax purposes)

In addition, local taxes are assessed against every commercial facility on property or both
property and personal property. The city tax assessors are likely to determine property tax by
using one of three methods, listed below. As an owner, you should monitor the local property
tax assessments continually. In general, about 2 to 4 percent of your revenues will be paid for
property taxes. For example, say you have grossed $103,000 in revenues over the past tax year.
That means you will owe around $3,090 in property taxes for the year. Whatever percentage
your local property tax is, it is a good idea to set aside that amount monthly into a separate or
savings account so that it is available at tax time.

Methods for Determining Property Tax

Cost Approach – the cost of the land plus the cost of the building’s construction, minus
depreciation. If personal property is also a part of this tax, it will include the value of the
furnishings, equipment, and fixtures, which are valued in the same manner.

Market approach – the business is compared to similar businesses in the area and valued in
much the same way that a realtor would value it when placing it on the market. This is a lesser-
used method, especially for health and fitness clubs, because it is so difficult to get a fair market
value.

Income approach – in this method, the gross income is used to determine the company’s
earning potential.

Property tax assessments are recalculated at certain intervals. Often this means a sudden rise in
the cost for a business owner. It is always possible to file an appeal against the tax. If you win
the appeal, this can cut your cost dramatically and save you from having to cut service or staff
instead.

INCOME TAXES
Since you’ve already determined which method you are going to use for record keeping, now
you simply need to figure out what records need to be kept. The following items are documents
that you should hold onto for validation of income, deductions, and tax credits:
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Receipts

Sales receipts

Bank deposit slips

Cancelled checks

Invoices

Keeping tidy records help you to identify where your income came from, even if many clients
pay cash. They will also help you to pay only the tax you owe. And if you do not have these
records, you won’t be able to prove what is a non-business or non-taxable item.

Good records also provide another positive thing: they help you prove that you have earnings.
If you are a self employed business owner, it can be difficult to show income when trying to get
a loan or buy a home. Having terrific records can help you to prove what you earn so that you
can support your statement. And of course if the IRS ever asks you to provide entries on your
tax return, you will be able to do so if you have complete records.

The easiest way to keep good records is to open a separate business account and get a debit
card with it. Use this account only for business transactions. The debit card will be useful for
making payments on goods and equipment purchased online. Business owners should also
keep at least one credit card available for business use. If you prefer not to incur charges, try
American Express, which requires that you pay off the balance in full monthly.

For tax purposes, fitness instructors must determine whether their classes fall under the
business category, or whether it is really just a hobby. The IRS has certain rules that cause you
to be able to deduct certain expenses from your yearly taxes. An activity is for profit (a
business) if it made a profit during three of the past five tax years. If it is a hobby, the losses in
income can’t be used to offset other income. Since you are reading this manual, we will assume
that you are presenting your case as a business owner, and that you plan to file business taxes
this year.

Everyone hears about items that can be deducted on income taxes. For a business owner, this is
good news—it will ultimately mean you pay less tax. To deduct an expense, the IRS states that
it must be both ordinary and necessary. (That means you cannot deduct the family hot tub as a
business expense!)Here are some of the more common deductions you might be able to claim:

Mileage – beginning Jan 1, 2009, the mileage rate that you can use to calculate your deductible
costs for business purposes are 55 cents per mile. Taxpayers can use this standard mileage rate,
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or calculate actual costs for the use of a vehicle. For fitness pros operating a mobile studio,
actual cost is the best method of calculation. But if you’re driving to a fitness studio each day,
the mileage deduction may be the best for your situation.

Cost of products purchased, including shipping

Storage

Office costs (rent, utilities, Internet)

All business start-up expenses

Assets (such as equipment, furniture, and so on)

Improvements made to the facility

Workout clothing

If running the business from home, it is not allowable to deduct personal, family, or other living
expenses. But if you have something that is used partly for business, it is acceptable to divide
the total use between the business and professional use. Simply note the percentage used for
business, and only deduct that part.

Business deductions can be direct, meaning they are expenses pertaining to the business, or
indirect (like upkeep and insurance). There are also many unrelated expenses that are not
allowed as deductions.

Business owners who work from home are allowed to deduct certain expenses for using the
home, such as mortgage interest, insurance, utilities, and other upkeep. The IRS has very
specific rules about this. The principal place of business must be used exclusively and regularly
– in other words, a dedicated room must be the backbone of the business. So the office or
workout room cannot be your husband’s main office as well as yours and the place where the
kids do their homework. Instead, that room and all the equipment in it must pertain to your
business. If you store equipment at home or use the office for bookkeeping, appointment
setting, and other administrative activities, you can still be entitled to office deductions.

To determine the business percentage, calculate the size of your home and the size of your
business office or fitness room. Divide Business area/Total home to get the percentage that you
can use as the business deduction.

Example: Your fitness room is 300 square feet (15X20). Your entire house is 3,500 square feet.
The fitness room is 300/3500 or 8 percent of the total house.

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Entertainment expenses can be deducted up to 50%. This includes entertaining clients for
business reasons, even if you take them to a concert or ballgame or eat at a fancy restaurant.
You just have to show proof that it was business related. If you put on a party specifically for
employees, you can deduct 100 percent of the expense.

Business trips – many times fitness pros need to attend a workshop or class and want to take
the family along. In this case you can deduct business expenses only up to the amount you
would have paid for yourself. If you drive there, you can deduct the automobile expenses; if you
use one hotel room, you can also deduct the hotel expense, but only for the days that the class
actually lasted. An extended stay does not count toward the business expense. Airline tickets
are deductible, even if you purchased a two-for-one deal.

DEPRECIATION
If you buy personal property for your business that will last more than one year, its cost can be
deducted over a number of years. This is called depreciation. It must be used in business or
otherwise for the production of income, it must have a useful life of more than one year, and it
must be something that will wear out, become obsolete, or otherwise lose value over time.
Businesses can depreciate exercise equipment, for example, but not land (because land does
not wear out).

EMPLOYER TAXES
If you tell your workers when, where, and how to do their jobs, the IRS will classify them as
employees. You can treat them as independent contractors only if they claim their own
business, and offer services to more clients than just you. Classifying your workers as
contractors can save you money, but not if the IRS considers them employees—you may be
subject to back taxes and penalties.

If you choose to hire employees, there are many taxes that you are held responsible for.
Generally, you are required to withhold federal income tax, social security, and Medicare taxes
from the employees’ wages, and you are also required to pay a matching amount on behalf of
the company. Federal unemployment tax is separate; it is only paid by the business owner (s)
and not withheld from employee pay.

The funds that you withhold are to be deposited to authorized institutions or electronically to
the Federal Tax Payment System.

Employers must report all these taxes quarterly. In addition, at the end of the year each
employee must be given a W-2 statement. This reports all their compensation, wages, and tips.
Employers are required to produce W-2s by January 31st after the end of the tax year, and also
to send a copy to the Social Security Administration.

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INSURANCE
Carrying insurance is another way to limit your risk and safeguard your business. There are tons
of types of insurance; some of those are property, casualty, liability, and workers
compensation. Some types are not necessary for personal training business, and others are a
must to protect your company's assets. For example, business property insurance is not
required by law for a business owner. But it's an investment that will limit your liability if there
is a natural disaster, a fire, or an electrical surge. If you are leasing the property, you may
believe that you do not need property insurance. But the policy will also cover computer
operations and electronic data. This means even if a computer virus wipes out all of your data,
your insurance policy will cover it. You can see how useful this may be for a struggling fitness
professional.

Most insurance agencies have a specialized business owners’ policy (BOP). It combines
coverage specifically tailored to the professional, and you may even find one tailored to the
fitness industry. Because today's society is so litigious, any mistake or incident can lead to a
lawsuit. Professional insurance will protect you from being ruined or put out of business if this
takes place.

The BOP will probably include property insurance as discussed above, liability, business vehicle
insurance, and possibly workers compensation. Every fitness professional takes reasonable care
to ensure that his or her actions don't injure the clients. But there are other things that can
cause your business to be sued. A client may have a pre-existing condition, and instead believe
that your actions caused some sort of illness or injury. They may sue because the stairwell did
not have enough lighting. You may employ a worker who fails to provide correct directions for
the clients. For all of these reasons it is important to purchase a BOP.

Your insurance policy will cover legal obligations that you have to pay as a result of bodily
injury, property damage, or personal injury, up to the policy limits. It will also cover medical
expenses when a third party claims that you were negligent and sues you for damage. Medical
payments are also paid to third parties who have bodily injury on your premises or as a result of
your operation, regardless of whether you are at fault. At first blush, this may sound completely
unnecessary, but in fact the opposite is true. Your clients will be less likely to sue you if you are
able to promptly make medical payments that cover the cost of injuries that occurred at your
business. They don't have to file a lawsuit or go to court in order to get the bills paid. They will
also be able to receive a small “nuisance” claim.

Here are the common types of insurance and what they cover:

General Liability:

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This coverage protects your club and its business officers and employees from any claims
arising from property damage, bodily injuries, and personal injury. This section includes
coverage for medical payments, fire legal liability, personal injury liability, and advertising
liability.

Professional Liability:

This would cover you for errors and omissions for professional services, as well as failure to
render professional services. This will also cover situations where a client sues for an injury
they allege was caused by being trained incorrectly.

Sexual Abuse Coverage:

This coverage applies to bodily injury as a result of a suit seeking damages or a suit alleging
bodily injury arose out of a sexual abuse caused or committed by an insured. Sexual abuse is
defined as actual or alleged out of a single or repeated exposure to acts of a sexual nature
involving inappropriate contact.

Property Insurance:

This protects your physical assets (equipment, build-out, buildings, etc.) from damage or
destruction. May be subject to a deductible.

Hired & Non-Owned Auto Liability Coverage:

Hired auto liability coverage will pay for damages to a third party, on behalf of your company, if
you cause an accident or an injury to someone while you are driving a rented car or “non-
owned” vehicle for business. The same scenario applies if you have an employee run an errand
in his or her own car. When the employee causes the accident, the injured party could, and
will, look to personal coverage and the company to pay for the damages since the employee
was using the car on company time.

Business Interruption:

This coverage will give the business the ability to continue making payments for equipment,
rent, franchisee, fees, etc., while temporarily closed due to a covered claim.

Coaches:

Be sure to disclose to the insurance carrier your relationship with coaches. If the coach is an
employee of the club, there is coverage provided under the General Liability & Professional
Liability. If the coach is an independent contractor, they should be required to obtain their own

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liability insurance. The insurance held by independent contractors should be endorsed to name
the facility as additional insured and include a waiver of subrogation in favor of the facility.

The amount of insurance you choose will depend on how comfortable you are with risk. Just
make sure you get quotes from different companies, research the policies, and consider what
incidents would ruin your business if not covered. You should also consult with financial and
legal advisors.

Chapter 11: Financial Principles

One of the biggest mistakes business owners make is ignoring finance and accounting. While it
can seem tedious and can be time-consuming, the point in having a business is to make money.
Even non-profits must carefully manage funds in order to operate. Make sure you keep these
tasks at the top of your priority list. The following sections will help you develop financial
systems and procedures, understand the steps involved, and see how your business can be
improved by implementing a sound financial system.

PRICING YOUR SERVICES

The price of personal training services should be based on your costs, competitors, demand,
and market positioning strategy. Additional considerations include:

● The average local rate per session

● Projected market demand
● Number of competitors
● The quality and duration of your experience and education
● The programs you offer
● Location
● Session length
● The number of clients trained per session

After you determine how long sessions should last for the programs you offer, you need to set a
flat fee per session – this is your base rate. One way to come up with the base rate is to
calculate the minimum fee you need based on your forecasted expenses and other revenue,

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and then increase that rate by 20% or more as long as the rate is still reasonable. This increase
will allow you to provide discounts that encourage client loyalty.

Limited time offers or specials are a typical strategy for businesses to draw in new clients.
Make sure the number of sessions, dates, and time frame are made clear when a client takes
advantage of this offer.

Offering discounts for prepayment or EFT payments will encourage clients to pay you promptly,
and will improve your cash flow. The discount doesn’t have to be a large percentage, just
enough to motivate clients to pay ahead. Committed and loyal clients who intend to continue
training with you will most likely take advantage of this offer.

Volume discounts can be offered as a type of contract – where a client plans on having, say, 24
or more sessions during a specified time period in exchange for a lower fee per session. You
can choose to incorporate monthly advanced billing into this agreement, so you won’t have to
worry about later collections. This type of agreement may not be legally binding – so if the
client changes his/her mind it’s probably best to let it go.

A retainer results in a reduced per-session fee in exchange for reserving a specific time slot on
certain days for a specified time period. Are you noticing a trend here? Be SPECIFIC. When
creating your discount policies you should decide the minimum number of sessions required
before a volume discount is offered, the maximum number you’re willing to discount, the
length of time the offer is valid for, if discounts can be combined, how the
discounts will progress (i.e. 24 sessions =5% off; 34 = 10% off, etc.), and Types of Discounts
also the maximum amount that you are willing to discount under any
circumstances – which is usually 20%. For all discounts, contracts, and Limited Time Offers
agreements you need to set expiration dates, whether or not the contract
Prepayment
is transferrable, and the conditions for a refund. Generally, a client can
transfer the agreement but cannot receive a refund. Volume

Clearly setting policies will make it easier to make decisions, making sure Retainers
that they’re understood by both clients and trainers will make them easier
to enforce. The contract or agreement between the client and the business should include the
policies on:

● Cancellation
o In the event the trainer cancels
o In the event the client cancels
o Make-up session availability and expiration date
o Notice needed
● Price per session
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 ● Payment terms
● Detailed description of the service
● Client tardiness
● Possibly other potential problems such as intoxication, inappropriate dress, sexual
harassment, etc. You may choose to address these only if they become a problem

This “contract” isn’t binding, so you may choose to call it something else. When people hear
“contract” they also hear “commitment” and may be less willing to agree to a program. These
policies are presented to the client at the first meeting, and they should be easy to read, with
gentle language. During this time, the client will also create a self-contract with the help of the
trainer. The self-contract will help the client spell out his or her plans and commitment to the
program and exercise in general. (By the way, this isn’t legally binding either).

At a bare minimum, you should review your policies once a year. However, when there are
problems you should go ahead and update your policies early. Changes in policies should be
detailed in letters sent to all current clients informing them of the change and, if necessary, an
explanation of the need for it. Make sure that all trainers, including yourself, enforce policies
even if it’s hard. Even when you really like a client it is important that they follow the rules so
other clients don’t feel as if they’re being treated unfairly.

PAYMENT METHODS
Getting paid is essential to the success of your business and there are several ways you can
improve client payment accuracy and efficiency. This will also improve your cash flow as you
will have more predictable receivables. First, you should make it easy for your clients to pay
you. Pay pal, Google Checkout, and EFT billing are all ways that allow clients to pay anytime, at
their convenience. EFT, which stands for Electronic Funds Transfer, should account for the
majority of your client financial transactions. With EFT, the client or client will authorize your
business to deduct a preset amount from the clients’ bank account or credit card. The benefits
to this system are many:

● The industry average shows a 5-7% increase in collections compared to checks

● You’ll save time by eliminating payment collection every pay period.
● You’ll eliminate the opportunity for employee theft, mistakes, or mishandling of
payments

While other services are available for this system, like the aforementioned PayPal and Google
Checkout, the fees these services charge make EFT a better option. Not all clients are

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comfortable with direct transfers, however, so you will need other systems in place. You need
to check with your bank about fees for direct transfers, and credit card companies also charge a
fixed percentage of payments. Make sure you take these additional charges into consideration
and run the numbers to make sure you’re getting the best deal. Generally, you’ll need a signed
bank form and voided check from the client to set up EFT.

Make sure you have your lawyer review your contracts, invoice templates, and
procedures.
Make sure you have policies and procedures for late payments, and pay attention to clients
who have a pattern of paying late. Bounced checks are a problem for every business, so make
sure your fees cover your costs in the event of a bounced check, and also are high enough to
discourage clients from over drafting.

Another tactic for increasing the payment of receivables is to invoice quickly, and send full
details of the bill with the invoice. Include a contact number for any questions the client may
have; the quicker you resolve questions, the sooner you’ll receive payment.

ACCOUNTING PRINCIPLES
There are two types of accounting: cash accounting and accrual accounting. In cash accounting,
you record incoming and outgoing payments when the money is paid or received. In accrual
accounting, you record payments as they’re earned or when the money is spent. In cash
accounting, it is difficult to calculate your net worth or forecast cash flow. Accrual accounting is
recommended because it allows for better management of your cash, a reportable net worth,
and a more accurate overall picture of the health of your business.

While keeping detailed financial records can be time-consuming (or expensive if outsourced),
the benefits are well worth it. Knowing your financial situation will allow you to make decisions
regarding limited resources and allocate them properly. Awareness of what’s increasing profit
and what’s cutting into it will influence long and short-term goals, making your organization
more effective and profitable.

In addition, you can compare your major account trends to that of the industry to see how you
compare, plan budgets, create controls to prevent losses, and forecast where your profits will
be over the long-term. These are all internal uses for financial records. However, if you need to
secure financing for debt, renovating, or expanding your business you will need to provide
these records to lending companies.

RECORDING TRANSACTIONS

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When recording transactions, you need to track them from the initial entry (either when
incurred or when cash changes hands depending on your accounting method) all the way to the
financial statements you will create after closing your books.

CLOSING YOUR BOOKS

Closing your books requires reconciliation of all accounts and adjustments for accruals,
outstanding payables & receivables, and write-offs for bad accounts. The IRS requires that you
close your books at the end of your fiscal year, but if you close your books monthly the process
will be faster, easier, and will allow you to identify problematic transactions when they occur. It
will be easier to send client statements, pay suppliers, reconcile bank statements, and submit
sales tax reports to the state. In addition, you will have documentation in case suppliers or
clients question their bills or payments. If you feel your business will be better served by
closing your books quarterly, this is also a generally accepted practice. A fairly small business, a
complicated closing that requires diverting time and resources from other tasks, and an
expensive accountant may cause a company to close books quarterly rather than monthly.

Adjustments in your books are usually made for:

● mistakes
● wages earned but not yet paid
● accrued employer FICA taxes owed
● record interest expenses and update loan balances
● record prepaid insurance (like if you pay quarterly)
● inventory on hand
● interest earned but not received
● depreciation expenses
● bad debts (write-offs)
● accrued dividends payable if applicable
● accrued income taxes payable if applicable
● sale of fixed assets
● accounts receivable balance (if daily records based on cash only)
● accounts payable balance (if daily records based on cash only)

Here are the major steps to closing your books:

1. Post journal entries to general ledger – this means enter all the account totals from all
journals in the ledger
2. Total the general ledger accounts
3. Create a trial balance to make sure that your debits equal your credits
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 4. Enter Adjusting entries in general ledger
5. Create a second trial balance, and if the debits = credits, proceed. If not, you’ll have to
look for the errors.
6. Create your financial statements
7. Make your closing entries
a. Transfer revenue to owner’s equity so the revenue account reflects a zero
balance
b. Transfer expenses to owner’s equity so the expense account reflects a zero
balance
8. Create a trial balance that only uses the balance sheet accounts

If you use the accrual accounting method, you will have many of the following adjustments to
enter into the general ledger when closing your books.

Since payroll periods don’t always coincide with the end of the month, or the end of your
financial period; you will probably need to account for funds that will be paid on the next pay
period.

Account Dr. Cr.

$
Wages Expense 1,792
Accrued Wages $ 1,792
*Wages owed but unpaid as of 12/31/08

Social security and Medicare taxes are called FICA taxes. The employees have ½ of the total
FICA deducted from their pay, and the business is responsible for the other ½. If you are closing
your books before the taxes are due you need to make a journal entry to accrue the debt.

Account Dr. Cr.

Payroll Taxes Expense $ 236.87
Payroll Taxes Payable $ 236.87
*To accrue employer share of FICA owed but unpaid as of
12/31/08

You don’t want to be surprised by taxes owed at the end of the year, so make sure you account
for all expenses to be paid. For property taxes, divide the estimated total property taxes due by
12. This will give you a monthly property tax expense and you can use this figure (multiplied by
the appropriate number of month(s) for the financial period that’s being closed) to accrue the
taxes owed.

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 Account Dr. Cr.
Property Tax Expense $ 1,512
Property Tax Payable $ 1,512
*To accrue 3 months of property taxes owed but unpaid as of
12/31/08

When you write a check to pay your mortgage, you are paying both the principle of the loan
and the interest owed for the month. If you account for the interest paid every month, you
won’t need an adjusting entry when you close the books.

Account Dr. Cr.

$
Interest Expense 432.50
$
Mortgage 567.50
Cash $ 1,200

However, if you count the whole expense as “mortgage” and don’t have “interest expense”
then you need to do an adjusting entry at the end of the year. You will receive a statement
from your lender with an amortization schedule that shows how much of your payments went
to principal and how much covered interest. The adjustment looks like this:

Account Dr. Cr.

$
Interest Expense 6,512
$
Mortgage Payable 6,512
*To adjust for mortgage interest paid in 2008

Most insurance is paid in 3, 6, or 12 month increments. If you have paid for insurance and are
covered past the end of the fiscal period, you accrue it by setting it up as a prepaid account.

Account Dr. Cr.

Prepaid Insurance $ 1,200
$
Insurance Expense 1,200
*To set up 8 months of prepaid insurance as of 12/31/08

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The easiest way to handle sales of inventory in closing entries is to zero out your beginning
inventory and enter your closing inventory balance. The details of the sales will be in your
other journals for reference.

Account Dr. Cr.

Purchases $ 1,600
Inventory $ 1,600
*To clear out beginning inventory 1/1/08

Account Dr. Cr.

Inventory $ 950
Purchases $ 950
*To book ending inventory 12/31/08

Clients that have accounts with you and are being charged interest should have a separate line
item for interest receivable from them. You accrue this interest in the Accounts Receivable
journal and also reflect the unpaid interest income in the general ledger.

Account Dr. Cr.

Interest Receivable $ 350
Interest Income $ 350
*To record 6 months of accrued interest as of
12/31/2008

Although depreciation information and tax references are covered later in the chapter,
Remember that you should consult your accountant on this so you maintain compliance with
the tax law. Also, an accountant will be able to maximize your deductions.

Account Dr. Cr.

Depreciation Expense $ 6,750
Accumulated Depreciation Equipment $ 2,250
Accumulated Depreciation Building $ 4,500
*To record depreciation for period ending
12/31/08

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Most of your clients will pay you in full, but there are always clients who don’t pay – for
whatever reason. To account for non-payment you should write-off the debt after a
predetermined amount of time. These bad debts are entered as follows:

Account Dr. Cr.

Bad debt expense $ 630
Accounts Receivable $ 630
*To record bad debts for period ending 12/31/08

ACCOUNTING DOCUMENTS
Accounting documents and financial statements will give you a snapshot of your
business and help you understand how each account is affecting the bottom line. They can also
help you determine what areas need improvements, which are doing well, and what expenses
need to be reduced. You can use these statements to compare to previous fiscal periods,
create forecasts, and other analyses. Also, these documents are required by lenders and
investors so they can see how healthy your business is.

INCOME STATEMENT
Income statements are used to show how revenue is turned into net income (profit). This
statement is also called a P&L (profit and loss statement), earnings statement, or operating
statement. You should be able to look at this document and see how your money is being
spent and the resulting revenue. Income statements are fairly simple – Incoming funds less
expenses gives you the net income.

Common Income Statement Accounts:

Income:

▪ sales
▪ revenues
▪ sales returns and allowances
▪ sales discounts
▪ gain (loss) on sale of assets

Expenses:

▪ purchases (if you purchase inventory for resale)

▪ freight (if you purchase inventory for resale)
▪ purchases returns and allowances (if you purchase inventory for resale)
▪ cost of goods sold: materials

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 ▪ cost of goods sold: labor
▪ cost of goods sold: direct expenses
▪ cost of goods sold: indirect expenses
▪ advertising
▪ amortization
▪ bad debt expense
▪ bank charges
▪ charitable contributions
▪ commissions expense
▪ contract labor
▪ credit card fees expense
▪ delivery expense
▪ depreciation expense
▪ dues and subscriptions
▪ entertainment
▪ income taxes
▪ insurance
▪ interest expense
▪ maintenance
▪ miscellaneous
▪ office expense
▪ operating supplies
▪ payroll taxes
▪ permits and licenses
▪ postage
▪ professional fees
▪ property taxes
▪ rent
▪ repairs
▪ telephone
▪ travel
▪ utilities
▪ vehicle expenses
▪ wages

BALANCE SHEET
The balance sheet is a representation of the company’s standing at a specific date – a point in
time. This differs from the income statement and it is important to consider the purpose of
your balance sheet, whether you want a conservative or liberal view of the business, and when
the best time to create the document is. The balance sheet contains three main categories:
assets, liabilities, and owner’s equity. Because the accounting equation is assets=liabilities +
owner’s equity, the balance sheet has two columns. Assets are in the left column, Liabilities
and Owner’s equity are in the right column and the totals at the bottom should be equal.

For the balance sheet, assets are further divided into current, fixed, and other assets. Current
assets are liquid - cash and things that will become cash within a year. Fixed assets are long-
term assets and are listed at their value less depreciation (except land). Depreciation will be

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covered later in this chapter. Liabilities are divided into short and long-term debts. The 1 year
standard for current standing also applies with liabilities.

Capital accounts, also known as owner’s equity represents the net worth of the business to the
owners. This figure is equal to assets – liabilities, so it is a residual amount and does not reflect
the market value of the business.

Common Balance Sheet Accounts:

Current Assets:

● Petty cash
● Checking account balance
● Savings account balance
● Accounts Receivable
● Inventory
● Prepaid expenses
● Office Supplies
● Utility Deposits

Fixed Assets:
● Land
● Building
● Furniture
● Fixtures
● Fitness Equipment

Other Assets:

● Security Deposits
● Utility Deposits
● Loan Fees

Current Liabilities:

● Taxes Payable (Sales, Federal withholding, FICA, state withholding, unemployment)

● Accrued Wages payable
● Unearned Revenue
● Accounts Payable
● Accrued Income tax payable

Long-term Debt:

● Notes payable

Capital Accounts:

▪ owner's equity
▪ owner's drawing account
▪ common stock
▪ additional paid-in capital
▪ preferred stock
▪ retained earnings

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IMPROVING CASH FLOW
Cash flow forecasts should be done every year, but updating your cash flow every quarter or
even every month will help you identify and eliminate risks much earlier. You should always be
conservative in your estimates of receivables, and liberal when predicting payables. Make sure
you think about industry trends – like more clients in January and fewer during holidays, etc.
Also include any plans for landscaping, new equipment, renovations and other improvements
even if you’re not positive that you will go through with them. If you plan to expand, include
those calculations as well.

If you need more money, arrange future lending right away

Delay payments due – don’t pay too early or too late, use eft, create a relationship with your
suppliers in case you need to delay payment at some point – flexible payment terms may help
you out more than the lowest cost supplier in the long run

Improve receivables by discounting for early/on-time payment, invoice promptly and follow up
on late payments – if a client tends to pay late but you want to keep their business consider
having them pay at each session rather than monthly

Factoring, invoice financing – Companies will buy your outstanding receivables. Usually they
will pay you 85% of the total value. This should only be done if you have a serious need for fast
cash and/or have receivables that won’t come due for several months.

CALCULATING YOUR OWN INCOME

Your business structure plays a large part in both your own pay and that of your staff. Many
small businesses are not profitable right away, so sole proprietorship and business partners
often forgo their own salaries in order to pour the profits back into the business. Businesses
that are incorporated are required by the IRS to pay market-rate salaries to all employees, so
the owners do not have the option of forgoing their own compensation. When you calculate
how much you should be paying yourself, you need to consider industry standards, profitability,
and your personal financial situation.

The first step is calculating the absolute minimum that you need to make per month. Add up all
of your necessary living expenses such as groceries, gas, rent, utilities, credit card payments,
short-term loan payments, long-term loan payments, etc. For now, leave out discretionary
expenditures like dining out and entertainment. Remember to account for 3, 6, 9, and 12
month bills as well as monthly expenses. This will give you the minimum income you require.

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In case you do have to take the minimum for awhile, you may want to order your expenses by
the day of the month they’re due and rank them in order of importance. As a new business
owner, you need to keep your personal payments current so your credit score will be intact if
you need additional financing.

Part two is to calculate your basic worth. To do this, take your most recent salary and subtract
overtime, your annual bonus, etc. until you have your base salary. Divide this number by 12 to
get a monthly base income. Then, multiply by the current inflation rate, and then by 4.
Multiplying by 4 should account for your extra responsibility and value as the owner. cite
source for these calculations?

Start from the minimum salary, and increase it as your business becomes more profitable. The
increases in salary should coincide with the increases in profit – or be lower if you can afford it.
Don’t withdraw money from the business as it comes in because cash flow can fluctuate from
month to month. Your business can be showing a significant profit, but if you don’t have cash
your business is in trouble. Three months after your business reaches the break-even point,
you can begin to increase your salary by the percentage of increase in profit. For example, if
your profit in the first quarter after break-even is a 10% increase, and your minimum monthly
salary was $2,600 per month multiply 10%*3 months*2600 to get a $780 “bonus” for those
months. You may want to continue taking quarterly payments for awhile to make sure that the
business is solvent, but you could pay yourself $2,860/month during the second quarter and
then recalculating the bonus that way. The latter creates more risk if the 2nd quarter doesn’t
perform as well as the first.

12 months after the business reached the break-even point, you should recalculate your salary.
Increase your salary by the annual growth percentage, but you can still incorporate the “bonus”
system if you wish. However, if your overhead expenses are increasing faster than your profits,
you will have to use a more complex calculation. Determine the growth rate for overhead and
the growth rate for profit. Then calculate the difference in terms of revenue. Make sure that
your income does not exceed this amount.

Establish six months of operating expenses for the business as soon as you can, and think about
how much additional money you should save for future business expansion. Extra funds should
be set aside as soon as possible if you plan on expanding fairly soon.

EMPLOYEE COMPENSATION

***These income calculations disregard income tax considerations***

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TRAINERS
When deciding how to pay your employees and independent contractors you need to consider
your priorities. Although your profit is obviously impacted by this expense, retention, morale,
commitment to your business, and treatment of clients can often be affected by how your
workers are compensated.

The first step in your calculations involves researching and considering industry trends,
observing other trainers when you know how and how much they are paid, and feedback from
trainers – whether they work with you, are friends, or are strangers willing to help you out.
This background information will help you decide between the multiple options available.

Now you have to think about what you can afford. Hopefully, you have enough business to
justify hiring other trainers and you’ve taken a look at your books so you know that the
business is financially solvent. You should also know the minimum amount of revenue you
need from each session to cover the added expense and generate a profit.

Paying trainers commission makes a lot of sense, but paying commission-only is undesirable
because it makes income too unstable for workers. Employees want to know that they will be
able to pay their bills, especially when they’re starting out and may not have a solid client base.
Calculating a base hourly rate to be paid in addition to commission is fairly common in the
industry. In addition to potential trainers who don’t want to take the risk of a commission only
job, not having a base pay can cause employees to push too hard to make sales or gain clients.
This can result in what is called a “hard sell” which can often turn off potential clients and will
impact your company’s image. Have you been to a used car lot lately? If so, you might have
noticed the competition between employees when you arrived. Competition is good, but you
don’t want your trainers running towards people when they walk in the door; nor do you want
them to steal clients from each other. Coworkers who get along are a lot more pleasant to be
around, so keep this in mind when deciding on a base pay rate. Requiring a sales quota before
paying commission results in many of the same problems caused by commission-only pay,
which is one of the reasons that it is unusual for trainers to have them. The other reasons
aren’t that important – NO QUOTAS. Of course, if a trainer isn’t getting clients and has poor
performance you should address it, but all you really need to do is pay attention to identify
trainers in need of improvement with regard to sales.

If you do pay a base rate, you’ll offer a lower percentage commission than you would
otherwise. When you evaluate other businesses’ employee compensation, make sure you are
comparing apples to apples. For example, you need to know not just the commission
percentage paid, but also the base rate and benefits offered, if any. Commission can be
calculated in two ways – based on the fee per session or on the revenue generated by the

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session or client contract. You should run the numbers to get a sense of the profitability of
each option and also consider which type you would prefer and what is common.

The minimum amount of revenue the business needs per session to maintain break-even
(expenses = revenue) will give you the maximum amount you can afford to pay your trainers.
You can work down from this number. Of course, you want to pay them less to make a larger
profit, but don’t go too low. Businesses perform better with higher quality employees, and you
can’t attract them if you’re not paying well. Generally, lower pay to employees and more profit
to the owners results in higher turnover. People can understand businesses that can’t afford to
pay them more, but if the owner is rich poor pay can cause friction.

Commission can be scaled; with higher percentages offered to some trainers and lower to
others. Commission scaling can be based on the following factors:

● Part-time vs. Full-time trainers

● Number of workouts per week
● General performance
● Experience
● Credentials
● Seniority

The industry average shows that the least qualified trainers are paid around a 35% commission
and the most experienced/best trainers make about 65%.

NON-TRAINER COMPENSATION

Again, the first step in determining pay for other personnel is to use information on current
trends, feedback, and observation. However, for some of positions you will be able to look
outside the personal training industry. Quite a bit of research and surveys have been done on
the average pay of receptionists, maintenance staff, cleaning services, financial analysts,
marketing personnel, human resource managers, etc. Most of this information includes
specific pay scales based on experience and credentials. When using the services of an
accounting firm and/or a law firm, you will have a set rate. Their cost will help you choose
which business to hire. For in-house employees and negotiable contracts, you should use the
same principles outlined above – if you don’t pay enough you may have poor performance, low
morale, high turnover, and little commitment.

The main options for paying these types of workers are:

● Hourly wage

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 ● Salary (Exempt from overtime pay)
● Salary (Non-exempt from overtime pay)
● Flat rate

Aside from market standards, the largest factor that determines how you should compensate
these workers is how valuable they are to your business. Employees paid hourly usually are
performing unskilled labor, don’t have benefits, have a fairly low annual income, and are more
likely to change jobs. So, if someone is doing a job that is typically paid hourly; but they’re
great at it and you don’t want to lose them you should consider putting them on salary.

Choosing between exempt and non-exempt salaries is something that should be discussed with
your attorney. The distinction between the two is a result of the job duties, the hours it should
take to complete the job, and the importance of the position.

Cleaning crews, maintenance, and similar jobs may be paid a flat fee per job performed
regardless of how long it takes them to complete the task. They would not be put on salary if
there were an unpredictable number of jobs for them. This type of pay can save you money if
you don’t have a lot of work for them, or it can become expensive if you end up needing them
every day. Try to project your needs and whether or not you have other employees who can
perform these tasks to reduce overhead when necessary.

PROFIT-SHARING
Profit-sharing, which is often in the form of an annual bonus, is another compensation option.
This may be especially important if your employees are accepting low wages while the business
acquires financial stability. Bonuses often take the form of performance based pay and the
amount of a workers’ bonus can be determined by their overall investment in the business,
increases in productivity, initiative, commitment to the business, etc. If you have several
employees or are worried about creating friction by giving out different shares of profits, you
should add a SMART goals plan into your evaluations so that employees know what they need
to do to improve their performance during the year – which will result in a higher bonus. For
example, let’s say your annual profit was $18,000 and you decide to allocate 12%
.12(18000)=2160. If you have four employees, with evaluations entitling them to percentages
of 22, 23, 25, and 30, then the bonus disbursements are:

Employee 1: .22(2160) = $475.20

Employee 2: .23(2160) = $496.80

Employee 3: .25(2160) = $540.00

Employee 4: .30(2160) = $648.00

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Companies often call this a holiday bonus or year-end bonus rather than profit-sharing but it is
essentially the same. One drawback to direct payouts is that the funds are taxed immediately
as income. The IRS has a deferred profit-sharing plan available and certain plans can be
advantageously incorporated into pension funds. However, the restrictions on withdrawals
may negate the benefit of the tax-savings in the employee’s mind. You should consult with
your accountant, financial advisors, and attorney if you are interested in profit-sharing. They
will go over the specifics with you in relation to your business structure and types of employees
and how taxes will impact the different options.

BENEFITS
In addition to direct pay, you may wish to offer your employees benefits. Benefits are
expensive to the business, though they do attract and retain the best employees. Benefit costs
are sometimes referred to as “indirect” compensation or “soft costs”. Some benefits
commonly offered across industries are:

● Paid holidays
● Paid vacation
● Paid sick leave
● Health, vision, and/or dental insurance
● Disability, life, and/or long-term care insurance
● Retirement plans
● Educational re-imbursement and/or paid time off for education

Paid time off, when offered, is usually earned based on the amount of time the employee has
been with the business. Insurance plan premiums are not completely paid by the business, but
they can still get expensive; as do retirement plans and retirement contribution matching plans.
Educational costs may be justified if the employee’s job performance is improved because of
the education. The higher quality performance may beneficially impact both the client
satisfaction and the business’ profitability. If considering offering these benefits you should get
several estimates, and consult with both your attorney and accountant or financial advisors.

Less costly forms of indirect pay include:

● Providing uniforms
● Unpaid vacation, sick leave, etc.
● Product discounts
● Free or discounted use of equipment
● Free or discounted client services, i.e. personal training sessions

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Free uniforms are fairly essential to new employees. If you’ve been out of work for awhile, you
might not have the money to PAY to start a new job. You may charge for additional uniforms,
but make sure that the employees have several to start with so that they don’t have to do
laundry every two days. The policies and procedures involving unpaid time off should be clearly
spelled out in the employee handbook so that the benefit is not abused; but employees will be
reassured by knowing that they can call in sick once or twice without worrying about their job
security. Especially since personal training is fairly hands-on and you don’t want your clients
and your other employees contracting the illness. Discounts and other perks are often greatly
appreciated by your employees. Even though it’s unlikely that all of them will take advantage
of the offering, you should run the numbers as if every single one of them will to make sure
your profit wouldn’t be heavily affected if they do.

If any of the benefits you would like to offer jeopardize your cash flow, you should wait to
provide them. This means you have to look at your records and do the calculations, find out
the tax implications, and talk to your accountant. Until you’re sure the business can afford it,
don’t do it.

Independent contractors do not receive benefits like insurance, retirement, etc. You may
choose to offer them free uniforms or reduced cost products and services if they are personal
trainers. Even though they aren’t direct employees, your full-time trainers are essential to your
business so you need to treat them well.

Total Value of Compensation

Studies show that often 25-40% of an employee’s total cost to the business is from indirect
compensation. This means that workers may not actually realize how much they are being
“paid”. Providing employees who receive benefits with a total value of compensation
breakdown will show them exactly what they cost and may also:

● Improve morale
● Increase productivity
● Increase employee retention
● Lower the number of requests for raises
● Reduce employee objections to paying a larger portion of insurance premiums

As long as you are maintaining good records, you or your accountant will be able to prepare
these worksheets for your employees. There are also companies who will prepare them for you
for approximately $1.70-$2.00 per employee; using these companies may be worthwhile
(only?) if you have lots of employees.

Here is a sample report so you can see the information employees will often be surprised by:

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156
Estimating Quarterly Taxes
Taxes are not something you can put off. They can be frustrating, especially if you haven’t been
following our suggestions for good financial recordkeeping; but failing to pay your taxes in full
and on time will cost you more money and it could cost you your business. That said, there are
some fairly simple ways to keep up with your tax payments. There are several different types,
and your business structure (partnership, corporation, sole-proprietorship) will largely
determine how you need to file and pay your taxes. You should consult with a tax attorney
about your specific situation, but I will cover some of the basics so you will have an easier time
conversing with him or her.

Some businesses pay taxes at the end of the year in a lump sum, and others pay estimated
quarterly taxes. Chances are, if you file as “self-employed”, you will need to pay quarterly. You
are responsible for:

● Income tax
● Social Security Tax
● Medicare Tax
● Federal unemployment tax (FUTA)
Both for yourself, and the employer’s portion of employee’s
FICA withholdings. If you have employees, you calculated
their FICA withholding when they began work, so you know
that amount. Although a quick and dirty tip to having
enough money to pay your taxes is to divert 25-30% of your
gross income into a high interest savings account or money
market account to pay quarterly estimated income taxes,
you should have a general understanding of the rules so you
will understand what your tax lawyer is talking about.
“In general, you must deposit federal
income tax withheld and both the
employer and employee social security
and Medicare taxes plus or minus any
prior period adjustments to your tax
liability (minus any advance EIC
payments). You must deposit by using
the Electronic Federal Tax Payment
System (EFTPS) or by mailing or
delivering a check, money order, or
cash with Form 8109, Federal Tax
Deposit Coupon, to a financial
institution that is an authorized
depositary for federal taxes. Some
i d d i

Estimating your personal income taxes

To find this value, you have to calculate your expected adjusted gross income, then find what is
taxable by recording your expected deductions and credits. Hopefully, you can use last year’s
return as a guide, but your first year in business you won’t have that information available. You
will need to calculate your expected salary for the year and follow the worksheets on IRS Form
1040, Schedule C, or C-EZ and Schedule SE to determine your tax liability. Basically, your gross
income less expenses equals your net taxable income.

Self-employment taxes include social security and Medicare taxes (FICA) and you can deduct ½
of these taxes from your income. This deduction is Gross Income - .5(SE) = Adjusted Gross
Income. The SE (Self-Employment) tax is 12.4% as of this writing for social security and 2.9% for
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Medicare for a total of 15.3%. The 2008 income cap for the 12.4% portion was $102,000, after
which you only have to pay 2.9% FICA on your income.

Employee Withholding

Calculate the amount of tax you need to withhold from your employee’s checks by using their
W-4. The W-4 will have their filing status and number of exemptions, which affects the amount
withheld. They can claim fewer exemptions than they are entitled to or specify an amount to
be withheld in addition to the federal requirements to ensure that they will not underpay. You
can only withhold based on the information on this document, if there are changes, you must
have the employee fill out a new W-4. Some employees may claim exempt status, but this is
only valid for 1 year so make sure they have a new status on the next calendar year. You have
to keep these forms available to the IRS.

If you are paying trainers commission and a base salary, this supplemental income is taxed
differently. According to IRS publication 15, supplemental wages that are not identified as a
specific dollar amount are treated as a single payment when you calculate federal withholding.
If they are identified separately, the publication states that:

“ If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each),
the federal income tax withholding method depends partly on whether you withhold income tax from your employee's
regular wages.

1. If you withheld income tax from an employee's regular wages in the current or immediately preceding
calendar year, you can use one of the following methods for the supplemental wages.
a. Withhold a flat 25% (no other percentage allowed).
b. Add the supplemental wages to the concurrently paid regular wages, or, if there are no
concurrently paid regular wages, to the most recent payment of regular wages this year. Then
figure the income tax withholding as if the total was a single payment. Subtract the tax already
withheld from the regular wages. Withhold the remaining tax from the supplemental wages. If
there are no concurrently paid regular wages but there were other payments of supplemental
wages (after the last payment of regular wages but before the current payment of supplemental
wages), aggregate all the payments, calculate the tax on the total, subtract the tax already
withheld from the regular wages and the previous supplemental wages, and withhold the
remaining tax.
2. If you did not withhold income tax from the employee's regular wages in the current or immediately
preceding calendar year, use method 1-b above. This would occur, for example, when the value of the
employee's withholding allowances claimed on Form W-4 is more than the wages.

Regardless of the method that you use to withhold income tax on supplemental wages, they are subject to social
security, Medicare, and FUTA taxes. “

FUTA Taxes

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Your business is responsible for FUTA taxes if you paid more than $1500 in wages in any quarter
or if you “one or more employees for at least some part of a day in any 20 or more different
weeks” in the preceding fiscal year. Calculating these taxes isn’t difficult. The rate is applied to
the first 7,000 of each employee’s wages. State unemployment wages can be credited against
your FUTA taxes. Basically, you just need to look up the tax rates, wage bases (caps), and
multiply to find these amounts. If your FUTA taxes for a quarter are less than $500, you don’t
have to deposit them quarterly. However, it is always best to set the money aside so that you
don’t come up short later - especially when you’re dealing with the IRS. FUTA taxes are filed
using Form 940.

Records

All employment taxes must be kept for at least 4 years in case the IRS wishes to review them.
You need:

● Your EIN
● Amounts and dates of all wages, commissions, etc.
● The fair market value of in-kind wages paid (i.e. barter)
● Names, addresses, social security numbers, and occupations of employees and
recipients
● Employee copies of W-2s that were returned as undeliverable when mailed
● Each employee’s dates of employment
● Dates of paid time off and amounts paid
● Copies of W-4 and W-5s for each employee
● Dates, amounts, and acknowledgement numbers for tax deposits made by EFTPS
● Copies of tax returns (all documents)
● Records of expense reimbursements and fringe benefits

Relevant IRS Forms

Form 940 Employer’s Annual Federal Unemployment

(FUTA) Tax Return
Form 941 Employer’s Quarterly Federal Tax Return
Form 944 Employer’s Annual Federal Tax Return
Form 945 Annual Return of Withheld Federal Income Tax
Form 1040-ES Estimated Tax for Individuals
Form 1096 Annual Summary and Transmittal of U.S.
Information Returns
Form 1099-MISC Miscellaneous Income
W-2 Wage and Tax Statement

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 W-3 Transmittal of Income and Tax Statements
W-4 Employee’s Withholding Allowance
W-5 Earned Income Credit Advance Payment
Relevant IRS Publications

Publication 15-A Employer’s Supplemental Tax Guide

Publication 15-B Employer’s Tax Guide to Fringe Benefits
Publication 17 Your Federal Income Tax
Publication 509 Tax Calendars

DEPRECIATION – IRS PUBLICATION 946

“Depreciation is an annual income tax deduction that allows you to recover the cost or other
basis of certain property over the time you use the property. It is an allowance for the wear
and tear, deterioration, or obsolescence of the property”.

For additional Information on: Refer to IRS Publication:

Depreciating a car 463
Depreciating space used for home 587
businesses
Depreciating property placed in use before 534
1987
Business Expenses 535
Accounting Periods and Methods 538
Basis of Assets 551
Profit or Loss From Business Schedule C Form 1040
Net Profit From Business Schedule C-EZ Form 1040
Employee Business Expenses 2106
Unreimbursed Employee Business Expenses 2106-EZ
Application for Change in Accounting 3115
Method
Depreciation and Amortization 4562

Tangible property is real property – it can be seen or touched. Most of it can be depreciated as
long as the following conditions are met:

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 1. You legally own it
2. It is used in your business
3. It has a determinable useful life 1
4. It is expected to last more than 1 year

Property includes buildings, equipment, machines, furniture, and vehicles. For tax purposes,
land is not defined as property that can be depreciated. It doesn’t have a defined period of
usefulness.

You cannot depreciate land – but you can depreciate the costs of preparing the land for
business use. This would include landscaping, leveling, clearing, etc. These costs can only be
depreciated if their existence and lifespan depends on another asset with a useful life. If the
landscaping would be destroyed when the building is replaced, it’s useful life is equivalent to
that of the building. Otherwise, these costs add to the value of your land and are not
depreciated.

To understand when you should start to depreciate and when you should stop, you need to
know the following terms:

● Placed In Service – when the preparations for using property are finished and it can be
used for its specific purpose, it’s considered to be placed in service. This date has
nothing to do with when you actually begin using the property. Personal property that
becomes business property is considered to be placed in service on the date it became a
business asset, and depreciation begins from that date.
● Basis – the value of the investment in the property. Generally this will be a “cost”, but
in some cases the investment was not a simple cash purchase.
● Exchange – To barter, swap, give up, give away, or transfer property in exchange for
other property or services.
● Retired from Service – Property that is no longer used in the business because:
o It was sold or exchanged
o It was converted for personal use
o It was abandoned
o It was transferred to a supply or scrap account
o It was destroyed

Based on these concepts, the timeframe for depreciation is fairly straightforward. You begin
depreciating property from the time it is placed in service until you fully recover your basis or

1
Useful life – the property must be expected to last more than one year. You should be able to calculate
the length of usability based on wear and tear, decay, deterioration from natural causes, obsolescence, or the
resource is depleted.

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when you retire it from service, whichever happens first. (If you choose to retire the property
you have to stop depreciating even if you didn’t fully recover the basis; hopefully it has scrap
value.)

You can only depreciate property that you are leasing if you have the “incidents of ownership”.
The incidents of ownership require that you are:

● Holding legal title to the property

● Legally obligated to pay for it
● Responsible for maintenance and operating expenses
● Responsible for taxes on it
● Will take a loss if the property is destroyed, condemned, or loses value because it is
outdated or worn out and thus no longer useful

If you are leasing property, you can depreciate it even if the lessee is responsible for
maintaining the property. Generally leases contain clauses outlining the expected condition of
the property when the lease expires. However, if your contract specifies that the original value
of the property will be returned to you upon the expiration of the lease, you cannot depreciate.
This type of lease would also include payments to be made if the property itself no longer held
the full value, and the lessee is required to make up the difference in cash or some other form
of payment.

Modified Accelerated Cost Recovery System (MACRS)

Listed property: Passenger automobiles; any other property used for transportation; property
of a type generally used for entertainment, recreation or amusement; computers and their
peripheral equipment (unless only used at a regular business establishment and owned or
leased by the person operating the establishment); and cell phones or similar
telecommunications equipment.

Nonresidential real property: Most real property other than residential rental property

Property class: A category for property under MACRS. It determines the depreciation method,
recovery period, and convention.

Recovery Period: The number of years over which the basis of an item of property is recovered.

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Convention: A method established under MACRS to determine the portion of the year to
depreciate property both in the year the property is placed in service and in the year of
disposition (retirement)

Basis: Under MACRS, the basis is the property’s cost or other basis multiplied by the percentage
of business use less credits and deductions.

MACRS is used for property placed in service after 1986. It has two options for depreciation,
which allow for property to be depreciated over different amounts of time using different
methods.

1. The General Depreciation System (GDS)

2. The Alternative Depreciation System (ADS)
a. Required use:
i. The business use accounts for 50% or less of the total use of listed
property
ii. Tangible property used outside the U.S. for most of the year
iii. Tax-exempt property
iv. Tax-exempt bond-financed property
b. Electing use:
i. If you choose ADS, you must use it for all property in the same class –
with the exception of rental and other real property.
ii. Once you elect ADS, it cannot be revoked

GDS property classes you are likely to have

1. 5-year property
a. Vehicles
b. Computers and accessories
c. Office machinery
2. 7-year property
a. Office furniture and fixtures
b. Property that doesn’t fit in any other category
3. 15-year property
a. Additions or improvements to land
4. 27.5-year property
a. Residential rental property
5. 39-year property
a. Nonresidential real property

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For a home business in a single-family residence, calculate the part of your home that is used in
your business and depreciate it as nonresidential real property over 30 years.

Common ADS recovery periods and property classes are as follows:

1. 5-year
a. Vehicles
b. Computers and accessories
c. Advanced technology telecommunications equipment
2. 12-year
a. Property that doesn’t fit in any other category
3. 40-year
a. Nonresidential real property
b. Residential rental property

Additions and improvements made to depreciable property are treated as separate depreciable
property. The property class and recovery period are the same as that of the property itself.
The beginning date of depreciation is either the date you completed the addition/improvement
or the date you placed the altered property in service, whichever is later.

MACRS has averaging conventions which specify mid-month, mid-quarter, and half-year
conventions so you will know exactly how many days/months to depreciate for the given fiscal
year. Tables for each type are in the Appendix of Publication 946.

Note. The d e c lining b a la nc e m e tho d is a b b re via te d a s DB a nd the s tra ig ht line m e tho d is a b b re via te d a s SL.
Method Type of Property Benefit
GDS using 200% Declining- ∙ No nfa rm 3-, 5-, 7-, a nd 10- ∙ P ro vid e sa g re a te r d e d uc tio n
Balance ye a r p ro p e rty d uring the e a rlie r re c o ve ry
ye a rs
∙ Cha ng e s to SL whe n tha t
m e tho d p ro vid e s
a n e q ua l o r g re a te r d e d uc tio n
GDS using 150% DB ∙ All 15- a nd 20-ye a r p ro p e rty ● Provides a greater
∙ No nfa rm 3-, 5-, 7-, a nd 10-
deduction during the
ye a r p ro p e rty
earlier recovery years
● Changes to SL when
that method provides

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 an equal or greater
deduction

GDS using Straight-Line ● Nonresidential real ● Provides for equal

property
● Residential rental
property
● All 3, 5, 7, 10, 15, and
20 year property
yearly deductions
except for the first and
last year

ADS using Straight-Line ● Listed property used ● Equal yearly

50% or less for deductions
business
● Tax-exempt property
● Property you selected

Calculations
For whichever method you’re using to depreciated, you need to start by figuring your adjusted
basis. This is the original cost of the property, plus additions/improvements, less deductions
like allowable and casualty losses and previous depreciation taken.

Declining Balance Method

For the year property is placed in service:

1. Multiply adjusted basis by the declining balance rate.

2. Apply the applicable convention. (To adjust for partial-year)
3. When the straight-line method will give you an equal or larger depreciation amount,
switch to that method

Otherwise, skip step 2.

Straight-Line Method
Apply the correct convention for the year placed in service and the year retired from service.
Each year has a different depreciation rate in this method. The depreciation rate is determined
by dividing 1 by the number of years left in the recovery period. Make sure you take the initial
partial-year into account. For example, if you used a mid-year convention on a 7 year property
one year ago, you will have 5.5 years left. So you’re depreciation rate is 1/5.5 = 18.181%. To
calculate the depreciation:

1. Reduce the adjusted basis by previous years’ depreciation.

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 2. Determine the depreciation rate.
3. Multiply (1) by (2). If you’re adjusted basis is 36,250 and you’re depreciation rate is
18.181%, then your depreciation for the year is $6,590.91 for the year.

Adequate Records

Your records and receipts should detail and substantiate your expenses in the following ways:

1. The date of the expense

2. The purpose of the expense
3. The amount of each use and the total use for the tax year
4. The amount of each individual expenditure including the acquisition cost, maintenance,
repair, etc.
5. The records should be created close to the date of the expense.

Intangibles and Amortization

Intangibles like patents, copyrights, and software must meet the depreciation standards before
they can be amortized (which is just like depreciation in principal). You must own them, use
them for the business, be able to predict a useful lifespan for them, and expect that they will
last more than one year. IRS section 197 intangibles cannot be amortized, so refer to that list if
in doubt – or ask your accountant.

The straight-line amortization method is relatively simple. Take the adjusted basis of the
property, subtract the salvage or scrap value if there is one and the result is the total amount of
depreciation that can be taken over the useful life of the property. Divide the resulting dollar
amount by the number of years the product is expected to be useful, and you have your annual
depreciation rate. If you acquire the product part of the way through the year, make sure to
prorate it. To prorate, divide the depreciation rate by 12 and then multiply by the number of
months that it was in service during that tax year.

Patents and copyrights are amortized using the straight-line method. The life-span of these is
the government-determined number of years or the remaining time when you acquired the
asset, whichever is smaller. If it becomes obsolete, you can deduct the remaining cost during
that year to zero out the amortization and cost. Computer software can only be depreciated if

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it can be purchased by the general public, has a nonexclusive license, and has not been
significantly modified. If these conditions are met, amortize over 36 months using straight-line.
Created intangibles can also be amortized by this method over a 15-year period if they are costs
paid to gain clientships to professional associations.

The income forecast method of amortization is used for films, videos, copyrights, books,
patents, and music. To calculate the depreciation rate, first divide the current year’s net
income by the total expected income over 10 years. Multiply this factor by the adjusted basis
(cost less salvage value).

Tax Help
Taxpayer Advocate Service: You can call 1-877-777-4778 or 1-800-829-4059, file Form 911 with
the IRS to apply for assistance, or visit www.irs.gov/advocate.

Low Income Tax Clinics: A list of clinics is in Publication 4134. You can pick this up at your IRS
office, if you have one or go to www.irs.gov

Free tax services: IRS Guide to Free Tax Services, Publication 910

Volunteer Income Tax Assistance (VITA) program: free help preparing your tax return if you are
low-income or over 60. For the nearest location, cal 1-800-829-1040.

Taxpayer Assistance Centers: These are mostly for problem solving – setting up payment plans,
requesting adjustments, etc. You can find the phone number at www.irs.gov/localcontacts or
in the phone book under U.S. Government, Internal Revenue Service

TeleTax: Listen to pre-recorded tax topics by calling 1-800-829-4477

Chapter 12: Establishing Relationships with Prospects

and Clients
Working with clients is a lot more than just taking their money and training them. There is a
particular way that each step should be handled in order to give the best experience for both
the trainer and the client. To look at it another way, now that you have no boss every client has
become your boss! This means that every time you meet a new client, he or she will be a critical
component of whether or not you will remain in business. So, as a business owner, client service
must become your highest priority. The client must always come first-with you, and with any
team clients whom you choose to employ.

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Fitness professionals who choose to provide exceptional client service will be successful. This is
because, quite simply, we are selling services. Our service provides the link between our clients
and their ability to achieve goals or objectives. What we sell is not tangible; it does not have a
shelf life. It cannot be inventoried.

The fitness industry changes all the time. Shifts occur because of development of new products,
changes in demographics, the emergence of new competitors, and even the economy. Our
clients experience changes all the time as well. They may have stress at work or in their
personal lives, changes in income level, moves from house to house, or even illness. Because of
the challenges they experience, we absolutely must create a friendly, comfortable environment
that will offer exceptional client service. By exceeding clients’ expectations, and serving them as
if they were our only priority, we will be able to retain the clients we have already established
and draw new clients to our program.

It is often said that the average client who runs into trouble when dealing with a business,
which often means poor client service, will tell 9 or 10 people about it. And if he goes online to
a forum, he is literally telling thousands about it. In fact, one study showed that 68% of clients
quit doing business with the company simply because of the attitude of an employee. Scary,
isn’t it?

If you are employing a receptionist, do not forget that this person may be responsible for
handling client problems, questions, and complaints. Ultimately, they may be responsible for
client retention. Their attitudes may dictate the ambience that is carried throughout your entire
facility. Train them well; clients expect to meet knowledgeable helpful staff. They do not want
to be assisted by someone who is confused or frustrated. Have you ever dealt with a sales
associate who treated you as if you were an imposition? Didn’t you want to remind them that
they are being paid to help you? Clients will rarely return to places that treat them that way.
Instead, they want everyone in the business to help them feel at ease when they are
uncomfortable, and to take the initiative to help them -- often before they even ask for help.
Rather than acting as the go-to guy yourself, train your staff so that they are able to meet client
needs with each encounter. This helps to create loyal, returning clients. To facilitate this
process, you will have to give individual employees more authority and leeway. As long as you
hire carefully, trust your employees, and have check systems in place for supervision this
shouldn’t be a problem.

WHAT CLIENTS WANT

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Many business owners think they understand what their clients want, and they are incorrect. It
is vital in the fitness industry that you understand what your clients expect from you. If you
cannot meet their expectations, it is easy enough for them to find another trainer-and they will.

You can stay in touch with client needs and wants by conducting surveys, creating focus groups
of some of your long-term clients, or simply by talking with them. Larger businesses may want
to form advisory boards. I can tell you a few expectations that clients have-expectations that
are nearly universal.

Clients expect the facility and equipment to be kept clean. This includes any equipment, free
weights, carpets and floors, and especially bathrooms. Sweat, dust, dirt, and other debris must
be vacuumed and wiped down on a regular basis. If you do not employ a cleaning service to
conduct bathroom checks or have an employee who has the time and willingness to do so,
consider mounting a sign inside the bathroom asking clients to alert you if anything is wrong.
Additionally, make sure you show your clients where everything is so they won’t feel
uncomfortable in the space. If you have a large workout area, show them again on their second
visit.

Clients do not want to be kept waiting. They do not want to wait at the front desk while the
receptionist types on the computer or chats with a coworker. They do not want to wait for their
workout. They especially do not want to wait for a personal trainer who has gotten behind
schedule. You must remain in total control of the schedule. Sometimes it is difficult to balance
the needs of one client with the schedule of the next, especially if you're stacking your clients
back to back. Leave a few minutes between clients to give yourself breathing room and time to
take a break. If working one on one with someone who is particularly chatty, try setting a small
beeper to go off a few minutes before the end. This way you can make the comment, "our
session is ending soon." A beeper will reinforce the fact that you are busy and have another
client, but it could potentially embarrass the client.

Clients want an experience that is not intimidating. If you are a fitness professional, you have
probably been active for a period of time. You have a passion for exercise and health related
activities. But this is not true for most of the American population. It is a fact that you will
attract individuals who have never participated in sports or fitness before. Offer them a
friendly, client focused, attractive environment. This will enable them to become comfortable
with what you have to offer in order to make changes in their lifestyle. Create a program that

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progresses the client, but do it slowly – don’t be so eager to change that you leave the client
fearful of what’s next. Make sure that the client is comfortable with all the exercises you have
taught before introducing new ones. Confusion leads to embarrassment and intimidation, not
client retention.

Clients have goals you don't know about. It is important for you to find out all of the reasons
that a client has become a client. The initial answer might be, "I want to lose weight." A few
weeks later, you may find out that in fact the primary goal was to lose weight, but the client
was thinking that perhaps they could increase flexibility at the same time. Ferreting out goals
like this helps you to meet all the wants and needs to help that client become successful.

People seek out personal trainers for a variety of reasons. Some people want to make sure
they’re getting the proper instruction, others just want coaching and some help with
motivation to reach their goals. Others have been ordered by their doctor to hire a trainer or
need someone to make them commit to a regimen. Clients have sometimes tried everything
else and failed and become frustrated, and they want someone who will listen to them while
also teaching them the most effective and efficient ways to exercise.

Whatever their reason, they are sitting in front of the trainer now, and that trainer has an
opportunity to begin to build a trainer/client partnership. An effective partnership will create a
good experience for the client that encourages participation, adherence, and accountability,
while guiding them toward their goals. One of the most common and basic things personal
training clients want is someone to listen to their needs, goals, and frustrations with exercise
and lifestyle changes. They are looking for support, encouragement, a plan that will work, and
a means to get there.

The ideal trainer/client relationship is one of professionalism, mentorship, motivation,

encouragement, and understanding. The relationship will begin with one of the most
important elements of human interaction – rapport building. If two people have rapport, they
feel like they are understood and accepted. Without rapport, there will be no foundation of
trust, agreement, effort, or communication. Growth and progress will be stunted by a lack of
rapport. The time to begin rapport building is immediately upon eye or ear contact. If the

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trainer’s manner is warm and inviting, the client will feel more inclined to open up and share
information that helps the trainer understand what the client expects from the program.

The ability to form a powerful common human bond and a relationship of responsiveness is
vital to becoming a friend (Remember, a personal trainer is a friend). Initiate this relationship by
politely asking questions about the other person and listening for something you have in
common (a sport, hobby or some other mutual interest). Essentially, you are trying to find out
how this person is like you. If a connection is found, the rapport process begins. Once a
common bond is found, the potential client’s attitude towards you changes and the
conversation becomes more comfortable. Remember, rapport is nothing but a feeling of
commonality –a common bond.

It will be easier for the trainer to impart value to the client once the health status and goals are
known. The trainer can show and tell exactly how the client’s new program will help them
reach those goals and give the approximate time frame for reaching them. This builds a
concrete plan and picture in the client’s mind and leaves them little doubt as to what action
they should take.

The greeting is also the point where you “take control”. Almost all prospective clients are in a
foreign environment and will be more comfortable if they are assured that you are going to
lead them through the process. After you have greeted your prospect, ask them for their
permission to fill out a PAR-Q. This is the time to make a good first impression, take control,
and create a warm, friendly environment.

Example: “Do you mind if we go through a few questions, which will help me find exactly how I
can best help you?”

The Physical Activity Readiness Questionnaire (PAR-Q) is recommended as the minimal

prerequisite for beginning a low - to moderate – intensity exercise program. Be sure to tell the
client what to wear to the assessment and not to drink caffeine or alcohol before arriving. Upon
arrival, ask them to fill out the PAR_Q and the health assessment questionnaire.

In order to assess the client's appropriateness for your program, there are two kinds of
questionnaires that must be presented. The first is a Physical Activity Readiness Questionnaire
(PAR-Q). This is a fairly general prescreening tool, offering seven questions to help you identify
which clients might require medical clearance before participating in the exercise program. It
covers disease as well as signs and symptoms. Although you may be eager to begin working

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with new clients, it is recommended that those who exhibit health risks be cleared by their
medical practitioner for unrestricted physical activity before beginning any new exercise
program. Legally, you must get a signed PAR-Q for every client you train. A free copy of this
form is included in the resource section of this book.

Besides the PAR-Q, it is best to develop a health screening questionnaire. This should cover the
client’s exercise history (both past and present), nutritional habits, employment history, and
family health. You can develop your own questionnaire for this, or use one like the one in the
Resources section.

At the end of these two questionnaires, your client should fall within one of three categories.
The first is when he clearly has a known disease, in which case you have sent him for a medical
referral. This is especially true if the client has cardiac, metabolic, or pulmonary disorders, or if
he is exhibiting two or more coronary risk factors.

The client may show no signs or symptoms of disease or disorders, but may have checked “yes”
for some of the risk factors. These clients should be referred for clinical testing before
undertaking vigorous exercise; however, it is possible that they can start a closely supervised
moderate – intensity workout program, with HRR at 40-55% and HRmax of 60-70%.

The client may answer “no” to all cardiac risk factors and the PAR-Q questions. In this case, we
consider her “apparently healthy.” This type of client can safely begin a moderate intensity
workout program and be fitness tested without the supervision of a physician. However, men
over age 45 and women over age 55 should be encouraged to obtain a medical exam before
getting started.

After the paperwork is complete, obtain the resting heart rate and resting blood pressure. The
resting pulse must be less than 100 bpm. To get a pulse, it is easiest to place two fingers on the
carotid artery or the radial artery. Ask them to do this for thirty seconds as you time them, then
multiply the number by 2. You can also use a heart rate monitor to get this number.

To get a resting blood pressure, you will need a stethoscope and a sphygmomanometer. The BP
cuff is placed on the client’s left upper arm and pumped until it reads over 200 mmHg. The
pressure is then released as you listen through the stethoscope to the brachial artery. You are
listening for the first tapping sounds; this is systolic pressure. Normal resting systolic pressure is
120 mmHg. The tapping becomes louder, then disappears. When you can no longer hear it, you
have reached the diastolic pressure. Normal resting diastolic pressure is 80 mmHg. Record
these on the Health Questionnaire. If the client’s resting systolic pressure is higher than 140 or
the diastolic is higher than 100, ask the client to obtain a doctor’s clearance for exercise.

Qualifying the Prospect - PAR-Q

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As we outlined, your goal is to build a quality relationship with your prospective client, one
where they not only like you, but also trust you and are willing to open up to you. The PAR-Q is
perhaps the most important tool to continue building such a relationship. The time spent going
through a PAR-Q with your prospect allows you to find out about them, what they have done in
the past in terms of exercise and what they want now –not only with regards to exercise, but
what makes them “tick”. It is here that you must use quality questions to probe for their
emotional wants and needs.

Remember, the prospective client is driven to purchase by the emotions that your service is
going to give them, not just by the service itself. Before you can help a prospective client with
their wants and needs, you must keep in mind what motivates people to buy. People do things
for a reason. As we outlined earlier, behavior can be broken down into two groups: The desire
to gain pleasure and the need to avoid to pain.

For example: Some people diet to stay slim and look better, a form of pleasure they want to
gain. Some people don’t diet for pleasure; they diet so they will not feel embarrassed or
ashamed of the way they look, or they are afraid they will be ridiculed for being overweight–all
forms of pain they wish to avoid. Many times, behavior is the result of a combination of one
wanting to gain pleasure and avoid pain. Human beings will do much more to avoid pain than
they will ever do to gain pleasure. Once you understand your prospective client’s behavior, you
need to take the next step, getting them to buy.

To do this, you have to get them to a place of dissatisfaction: a feeling that they are not
complete because they are not reaping the benefits of what your training program has to offer.
Getting someone to a “place” where they feel an inner pressure to buy is true motivation.
When a prospective client has “inner pressure”, they feel compelled to buy because it is what
they wants to do, not because you have locked them up in a room and used one hundred and
one closes until they finally gave-in and bought. Inner pressure is the most powerful tool for
creating a shift in behavior and must be done to bring a prospective client from a “prospect” to
a “client”.

The prospective client’s best interest must be kept in mind at all times, thus, having the
prospective client feel as if they are making the decision to buy. Remember, people buy wants,
and wants are emotional, not logical or rational. Emotional wants (inner pressure) happen at
the unconscious level. Potential clients do not walk into the club and say, “I really want to feel
more self confident and I think I can accomplish that by getting into shape.” Instead, they come
in focused on the tools and will tell you, “I want machines and treadmills.” In order to make
your service appeal to a potential client at a deeper level –to get them motivated to buy –you
will have to “uncover” what their emotional wants are. Therefore, when they tell you they want
machine and treadmills, you need to find out what that means to them.

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Now it is time to explore the emotional wants and needs of the prospective client. The PAR-Q
will serve as the key resource to provoke a dialogue between you and the prospective client
regarding their fitness goals and how you can best help them. You will start with background
questions to fully qualify the prospective client and to gain an understanding of their ability to
make a decision. During this process, you will need to listen as well as ask the right questions.

By asking the right questions, you will uncover a prospective client’s real wants. Then, by
carefully listening to what they say, you will obtain valuable information, which can be used
throughout your introductory session. FYI –Failure to qualify a prospect is one of the largest
reasons for unsuccessful sales efforts. Failure to qualify the prospect wastes your time by
building a sale for non-existent needs or for a prospect who has no real intention of buying.

1. Listening

A trainer that is also a successful salesperson talks half as much as he/she listens. This is
because if you say it, they can doubt it … if they say it, it is true. An effective salesperson
doesn’t tell people things –they ask questions. You need to develop a comfortable questioning
style that allows you to maintain CONTROL while the prospective client makes the decision.
Also, Remember that it is not what you say –it is how you say it. You may think you are saying it
one way but the important thing is: How is the prospect interpreting what you are saying?

Aids to Listening

LOOK at the speaker

Take brief notes
Picture the prospect’s situation
Be patient – Don’t interrupt
Question to clarify
Watch your non-verbal signals (body language)

2. Questioning

Types of Questions:

Open Ended Questions: Use when a prospective client is talkative and to start needs analysis.
Try to use as many open-ended questions as possible. These questions allow you to listen and
the prospect to do all of the talking.

Example: “Ms. Jones, tell me what you are doing now to stay in shape?”
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Close Ended Questions: Use when a prospective client is unresponsive, when you wish to direct
the conversation to a specific topic, when you need a specific answer or when you are looking
for confirmation.

Example: “So Ms. Jones, do you want to lose weight or gain muscle?”

In the selling of personal training, one of the most gratifying parts of the sale is having the PAR-
Q section go smoothly. Ironically, when that happens, and the level of rapport is high, you will
be tempted to make one of the biggest mistakes; trying to sell a program before the actual
workout. Think of yourself like a “Fitness Doctor”. Don’t diagnose your patient or try and
discuss a “treatment” until you have asked all the necessary questions.

Introductory Session Protocol

Now that you clearly understand what your prospective client is looking for in a fitness program
(future fitness goals and motivation) you can meet his/her needs by offering a customized
workout. This can be done by taking the prospect’s information, matching it with the features
of your training services and then tying those features to the benefits that are most important
to your prospect. Too often we forget that this may be a potential client’s first workout in a
club. Although we are accustomed to the environment, there is a lot going on simultaneously.
This can cause sensory overload for many guests. Therefore, it is important that you take your
prospect through a workout at his/her own pace. You must first demonstrate each exercise,
explaining proper form and movement. Then lead your prospect through each exercise. This is
the time to relate each exercise they’re performing to their desired results.

Remember, your prospective clients are not buying the features of personal training; they are
buying the emotional benefits they will receive from those features. Because they already have
so much information to take in and process, you cannot assume that they will make the
connection between features and benefits on their own. Therefore, you must verbally tie the
features directly to the benefits that they want.

Example: “Mr. Jones, you get all of your workouts personally designed for you, even the ones
you perform on your own. What that means to you will get in the shape you want without
wasting any time. In your opinion, does the ability to have no guesswork when it comes to your
workout appeal to you?”

When taking a prospect through an introductory workout, the focal point should be on the
needs of the prospect. Avoid having a cookie cutter workout; vary it to meet each individual’s
wants. If you get to the point of where you can present workouts without even having to think,
you are most likely to disassociate yourself from the verbal and nonverbal interactions that are

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taking place between you and your prospective client, thus no rapport building, no tying
emotional needs to your service and hence a lost sale.

Throughout the introductory workout, it is your job to get your prospect as involved in the
interaction as you can. One way to do this is to put him/her on the spot. Ask for a recap of
some of the techniques that you already went over. Do this especially if they have never been
with a trainer before. The thought of someone watching their every move intimidates some
people who have never been with a trainer before, so if you are constantly interacting, they will
see how easy it is to use a trainer and feel the benefits. Another way is to make the guest feel
as though he/she is already a client. You can do this casually, through the use of language like
“For you, like all my clients…” or “After a few more sessions, you will find…”

ASSESSMENT
The fitness assessment consists of written and verbal questions, as well as physical tests to
establish the baseline and standards against which you can measure fitness progress.
Performing the fitness assessment gives the trainer a clear picture of the client’s health
standing as well as the true fitness level. This is the single best tool for forming an individualized
exercise regimen. With these tools, you will

•Determine the client’s health status

•Find the client’s muscular strength, endurance levels, and flexibility

•Determine BMI

•Discover what the client believes are his fitness-related strengths and weaknesses

•Discover injuries or other risk factors to the training program

•Develop an accurate program that is client-specific

•Motivate clients

The most important element of the trainer/client relationship is communication. Both parties
must fully understand what is expected from each and what each will do to make for a great
working relationship that achieves the client’s goals. Without excellent communication the
client is at risk of dropping out of the program. Confusion, frustration, and uncertainty have no
place in the world of personal training. Spell everything out up front – let the client know
exactly what they will be getting, how the trainer will help them meet their goals, and then

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over-deliver (give them more than they expect). Make a clear timeline for clients new to
training, so that they will not be intimidated by the program. If necessary, emphasize that they
will be taking small steps toward their final goals.

The Informed Consent form must be filled out prior to giving the health assessment. At this
time it is appropriate for the client to ask questions, read and sign the form.

Health assessments establish the baseline fitness level to design an appropriate exercise
program. They provide opportunity to confirm the client’s goals and fine tune them with the
specific results desired, while making sure those goals are realistic. Success can and should be
measured because it becomes a visible confirmation of the result of the effort put forth.

Each assessment has specific protocols to follow, the first of which is the proper selection of
tests based on the client’s current health status, medications, fitness level, and personal
preference. Some clients will have issues with being touched, measured, weighed, or even with
sweating. Trainers must be aware of emotions, feelings and dislikes expressed by the client and
respect them. You may consider creating a delicate way of asking them if there is anything they
are uncomfortable with.

Positive attitude is an important attribute of any personal trainer. Clients need to stay
motivated and if all interactions are done in a positive way there is less detriment to the
relationship. A positive attitude will help smooth over small disagreements, and be the
encouragement a client needs to maintain their accountability in their lifestyle choices outside
the studio or gym. It will help keep the lines of communication and feedback open for more
effective client involvement in their own program.

Motivating the client is the trainer’s first priority at every step of the process from initial
consultation to the end of time. Motivation is one of those things that can quickly fall by the
wayside if not kept up. Once the motivation and momentum fades it can very difficult to kick it
back up again.

The simplest and most effective motivations a trainer can give is relating the work at hand to
the client’s goals and recognizing and acknowledging the effort and lifestyle changes the client
is giving to their program. Use the momentum built during the initial consultation when the
client had the burning desire and saw the solution laid out in front of them. The trainer who
can keep that fire burning is the one who will have an excellent client adherence rate and an
endless supply of testimonials to their training programs. Let that fire dim and both the trainer
and client have to work harder to get back to that earlier level of excitement and commitment.

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During the course of the relationship you will want to recognize and acknowledge important
aspects of your client’s life such as birthdays, weddings, family situations, promotions, etc.
These events and occasions offer a chance to reaffirm to the client how much the trainer values
them. There will be other times when you can offer to let their friends or family come free for
client appreciation days, or give them coupons from cross promotion efforts, or articles that
you think would be of special interest to them. The little things you do for and with them help
to define your relationship and its value. The achievements the client makes and the
recognition you give them helps build a deeper bond.

One thing every trainer should be aware of is that each and every satisfied client is a potential
source for referrals. Stay on top of things so your clients are free to come talk with you if at any
point they have concern or are dissatisfied in any way. Keep your facility clean and safe, with
everything available when and where it will be needed.

Keep your clients on track to their goals, keep them motivated and happy, keep the relationship
strong, and you will keep them as clients for a very long time.

GETTING HIRED BY CLIENTS

Let’s face facts – most fitness professionals don’t enjoy sales. If we’re being perfectly honest – most
of them are very uncomfortable with the thought of asking for a prospect’s money.

Our goal with this report is to alleviate your fears, anxiety, discomfort…whatever you want to call
it…with the sales process.

We’re going to give you some simple sales concepts, example scripts and even the completion plan
we use for our business’ sales process. This simple system is not rocket science, but it has allowed
us to take fitness professionals that absolutely detested selling while closing fewer than 10% of
their sales opportunities and help them progress to closing more than 50% of their sales
opportunities while increasing their average package value by over 200%.

Try To Sell To Only Those People Predisposed To Doing Business With You

One of the biggest mistakes we see fitness professionals make is assuming everyone is a prospect.
You can avoid this by doing several things:

1. Using Direct Response Marketing – Offer a free report or something similar on your
site, in your ads or even on your business card to get people who are interested to
‘raise their hands’ and let you know they at least have mild interest in what you
offer.
2. Find A Niche – By doing this you are already targeting a specific market and
positioning yourself as the fitness resource for their specific wants and needs.

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 3. Focus on Referrals – Referrals are pre-sold on what you have to offer and usually
provide little if any sales resistance.
4. Sell More to Your Existing Clients – If someone has already said yes once, they are
far more likely to say yes again provided you haven’t given them a reason to do
otherwise.
5. Become an Expert – I really doubt that the top professionals in the industry would
get a lot of resistance from a prospect – regardless of their fees. You can position
yourself as an expert by doing more public speaking, writing more articles, releasing
a book (even if it’s self published) and doing more publicity work.
6. Use Testimonials – If you ever had a doubt about the value of testimonials, the
success of diet programs offered on television and full page ads in popular
magazines should have eliminated it. Every piece of marketing material should use
them. You should have a ‘wall of fame’ at your office or studio. You should have
testimonials on your website and you should make before and after pictures a
condition of doing business with you. Why try and beat yourself up trying to
convince someone that you can get them where they want to go when you have a
number of clients that can do it for you? It is cliché but “A picture is worth a
thousand words.”

Building Value

What is value? If your goal as a fitness professional is to deliver great value, you must first have an
understanding of how value is measured and what constitutes good and poor value in the eyes of
the potential client, right?

How, exactly, is value perceived and measured? Having researched this question for a while, I think
I have a definition: Value: in the eyes of the potential client, is simply the difference between the
anticipated price and the actual price.

If the price anticipated in the potential client’s mind is higher than the price of the service or
product, the customer perceives it to be a good value: “I would have thought it more expensive!”

Yet if the asking price is higher than the anticipated price, the potential client perceives the value to
be poor: “This is highway robbery!”

The secret, then, is to control the anticipated price.

Selling Process
You have the easiest product in the world to sell – a better appearance, improved performance,
good health and a better quality of life!

It is important to understand the concept that a fitness professional doesn’t do something TO a

person; a fitness professional does something FOR a person. A fitness professional is a friend, a
coach, an educator, an actor and a motivator, as well as someone who can listen well and
communicate effectively. This concept is the objective of the personal training profession.

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What makes this concept so important is because people will typically buy from someone they like
and someone they believe is trying to help them.

Attitude

The first thing that you can do to separate yourself from the average fitness professional is to
control your attitude. The attitude you project, both verbal and non-verbal, is a direct result of your
beliefs and perceptions about your profession. If you think of yourself as a “Fitness Professional”
instead of a ‘personal trainer’, this will have a huge impact on the attitude you project.

Another element of attitude is how you perceive your prospective clients. Because you earn your
income from the fees a client pays, over time you may stop thinking of prospects as human beings
with needs and wants and start seeing them in terms of how many dollars their purchase will net
for you. This is a sure fire way to start losing clients. One way to avoid this pitfall is to ask yourself
two simple questions before talking to or greeting any new prospective client:

1. I wonder what I will like about this person?

2. How can I help this person get what he/she wants?

By asking yourself these simple questions, you will put yourself into a frame of mind that will
project a positive, sincere attitude. Remember, people are more likely to become clients of
someone they like. Having the right attitude and exceeding expectations has to be the way you do
business 365 days a year, not just something you do until the sale is made.

Many times, to justify a lost opportunity to gain a client, fitness professionals often put the blame
on the prospect: “he wasn’t serious”, “she had an attitude”, “he was looking for reasons not to
buy”, or “she was just wasting our time”.

However, most people who take the time to come in to an introductory session with you have some
interest in buying, but leave because they were not motivated correctly. Learning what motivates
human behavior provides the foundation for a better understanding of people. This will also allow
you to understand a prospect’s needs.

What motivates human behavior? It is actually quite basic – The desire to gain pleasure or avoid
pain. As we continue through the sales process, please remember that we are not selling exercise,
we are selling a better quality of life, a way to feel better. Seek to understand what changes in the
prospect’s life would make them feel good and show them how your offerings can
help them accomplish this. Provide solutions.

Takeaway Selling

The underlying principle behind the concept of takeaway selling is the law of supply and demand.
Simply put the less accessible someone is the more value is placed on them. This is a hard concept
for some fitness professionals to accept but it is crucial in becoming the “expert” in your area.

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If you can grasp this way of thinking and put it into practice you will be amazed at your results. You
will see that the busier you are the more people want your services. The less accessible you are the
more appreciated you are. If you put this into practice you will see that the less supply of you
creates great demand and the virtual absence of resistance.

You can simply say that your services are not for everyone and you’re only willing to accept clients
that are truly committed to achieving their goals. They go a step further and tell the prospect that
you require clients to be “walking billboards” for you.

This is the exact opposite of most sales tactics you see fitness pros use.
The feeling of urgency has proven to get people to take action. By using the techniques in this book
you will find that more prospects are eager to make the buying decision, and train with you!

Example Closes
Use the one which you are most comfortable with or is appropriate for the situation.

Basic Close

Step One – Obtain A Positive Confirmation: “Mrs. Jones, clearly you see the benefits of fitness, and
of working with a fitness professional, right?” (Wait for the prospect to affirm your statement with
a “yes”)

Step Two – Present Your Programs: Then let me to show you the fitness programs that I have
available for you. The first program I have is our 1session per week program, which is only an
investment of $150 per month. The second program I have for you is the twice a week program,
which is only an investment of $300 per month, and finally we have our three times per week
program which is only an investment of $450 per month.

Step Three & Four – The Assistant Buyer Offers Options: Based on your goals and experience level I
suggest we start with either the two times per week program or the three time per week program.

Step Five - Call To Action: “Which one of these programs can we get you started on today?”

Step Six – Listen: (Don’t say a word after your call to action. Wait for the prospect to give their
response.)

By getting the positive confirmation or commitment, you have mentally prepared the prospect for
the purchase. By offering options, you have eliminated the choice between a ‘yes’, or ‘no’, and are,
asking them to choose between three different programs instead. Any program that they chose is a
sale. By directly asking them to select a program, and take action today, you have effectively
reduced the odds of being faced with an objection, and have increased your odds of making the
sale.

Takeaway Close

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Step One - “Mrs. Jones, before I show you the program that we have available, I need to tell you
that working with one of our fitness professionals isn’t for everyone. I know that you mentioned
that you were committed to losing that weight and keeping it off this time – but since we are 100%
committed to our clients’ success, we require the same commitment from our clients. Unless you’re
truly dedicated to achieving your goals and unless you’re ready to be a “walking billboard” for me –
then this may not be for you. So are you committed Mrs. Jones?” (Upon positive confirmation show
programs)

Step Two – Present Your Programs: Then let me to show you the fitness programs that I have
available for you. The first program I have is our 1session per week program, which is only an
investment of $150 per month. The second program I have for you is the twice a week program,
which is only an investment of $300 per month, and finally we have our three times per week
program which is only an investment of $450 per month.

Step Three & Four – The Assistant Buyer Offers Options: Mrs. Jones, I have two openings for clients
in our schedule and I’d be willing to work with you if you’re this serious about achieving success.
Based on your goals and experience level I suggest we start with either the two times per week
program or the three time per week program.

Step Five - Call To Action: “Which one of these programs can we get you started on today?”

Step Six – Listen

Objections

Step six is where you may hear the first objection. As an experienced salesperson, you will expect to
hear objections. An objection is a natural impulse for the prospect but it does not mean that he/she
dislikes the service or you.

Once a prospect has given you an objection, the first thing you want to do is relax.

Too many times, the fitness pro that has memorizes “closes” or answers, will immediately respond
to the prospect’ objection, sometimes before the prospect has even finished what she is saying. You
want to take your time and find out what the prospect’s real concerns are.

Objections are really nothing more than a prospect’s request for additional information. They are a
perceived barrier between the prospect and the solution.

Lack of understanding, disbelief, lack of value and hidden reasons cause a prospect to state an
objection.

The lack of value (the price you have quoted is not worth the benefits they perceive) is the number
one reason for an objection.

When handling prospect objections:

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Don’t argue

Get a specific objection – narrow it down to one

Keep it interactive

Focus on the benefits

Keep it a win-win situation

Listen-Listen-Listen

Gaining Commitment – “Closing the Sale”

Once the new client selects a program, show excitement and be complimentary of their choice to
make a commitment to reach their health and fitness goals.

At this point, ask the new client to retrieve financial information for payment while you retrieve the
appropriate paperwork.

PROVIDING THE RIGHT KIND OF CLIENT SERVICE

The Basics of Outstanding Client Service

● Show the clients that they are welcome and appreciated

● Be friendly
● Greet them right away
● Focus and listen
● Show genuine concern, understanding and empathy
● Speak slowly and clearly
● SMILE
● Ask if there’s anything else you can help them with

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Great client service leads to client retention because if you over-deliver, your clients will want
to enjoy more of what you have to offer. Because we are service providers, the clients have to
trust us to be the link between where they are now and where they want to be. We also have
an obligation to get them there. In this business, we often have clients who suffer from low
self-esteem so it is even more important that we make them feel comfortable and welcome.
Our attention and service is paramount to our success.

Clients want effective, efficient, and informative help. This means that you absolutely must
take the time to train your employees so that they can provide the level of service necessary.
You should make them aware that everyone is either a prospective client or knows a
prospective client, so they need to be “on” the entire time they’re at work. Employees should
have a thorough understanding of your services and products so that they can quickly help
clients.

Here are some phrases that would frustrate clients and what the answer should be:

Don’t Say: Instead You Should:

“I don’t know” Ask for their contact information and tell them
when to expect a return call – then go find the
answer
That’s not “my department”, “our policy”, “my Find the person in the right department, who
job” makes the policy, or whose job it is
“I can’t do that” “Here’s what I can do…”
She is “busy/in the bathroom/not here She is unavailable, may I take a message OR is
yet/doesn’t want to be disturbed” there something I can help you with
She is out of the office/took the day off She is not in the office but can return your call
(insert date/time)
“No.” This leaves the client confused. Finish the
sentence and explain the situation.

Taking the time to hire and train the right staff that will be a client’s first point of contact is
extremely important. Have you ever asked a sales associate a question and had them act like
you were putting them out? Did you want to remind them that it’s their job? Well, in the

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personal training business clients will not put up with being treated that way – they’ll just go
somewhere else. Informing your front desk staff of client service standards, phone etiquette,
and e-mail etiquette can go a long way towards making sure that little mistakes aren’t made.

Standard telephone rules for employees are:

● Answer the phone within three rings

● Ask before placing someone on hold
● Smile (they can hear it in your voice)
● No eating, drinking, or gum chewing
● If you take a message, repeat back all information for confirmation including
the name spelling, the contact information, and the reason for the call. Also
record the date and time and place the message in the designated location –
or the person’s chair.
● When transferring calls, TELL them you are transferring them, to whom, and
why. Don’t just make them someone else’s problem if you don’t know who
they should be speaking to.
● If you don’t know who they should be speaking to, place them on hold and
ask around.

Some people love email, some people hate it; but it’s vital to the success of any business. The
average American worker spends an average of almost 2 hours a day dealing with e-mail! So,
yes, it can be frustrating but there are ways to make it less so. E-mail communications are
harder than telephone or face-to-face conversations because there are so many nuances and
different ways to interpret incoming messages. To reduce confusion, always leave the message
you received below your reply (just in case they forgot what they asked). You should also
always use complete sentences, be professional, and reread it before you hit send. Keep in
mind that once an e-mail is out there, you have no control over who else sees it. So, if you’re
sure that the conversations is appropriate for e-mail communications and not better had in
person or on the phone, follow these guidelines:

● Use proper structure, grammar, punctuation, and formatting

● Answer promptly
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 ● Answer all questions asked and provide additional information to pre-empt
future questions
● Don’t trust your spam filter, you might miss something important (Skim
through the folder before it’s set to delete)
● DON’T WRITE IN ALL CAPS. THIS IS SHOUTING
● Carefully consider whether CC or BCC is more appropriate.
● Don’t be too informal
● Make sure you are specific enough that your tone is clear. It is very easy to
see a short e-mail response as brusque.
● Overall: Be professional, efficient, and aware of the consequences of
misinterpretations, etc.

In addition, don’t overdo anything. Keep your emails short; long ones are annoying and most
likely won’t be read. Don’t use reply all, attachments, emoticons, abbreviations, forwarding,
high priority, delivery and read receipts all the time. If someone always marks their e-mails
high priority, are you really going to think it’s time sensitive? No. Use your common sense and
think about how your choices could reflect negatively upon you or have unintended
consequences.

Scripts, Templates, and Fact Sheets

Reference sheets that provide information that needs to be accessed daily are always helpful.
However, telephone scripts, e-mail templates and fact sheets can also ensure accuracy of
information while improving efficiency, effectiveness, and productivity. This is useful both for
new employees and busy employees; but especially for you. As the owner, you will have a
multitude of responsibilities, so make it easy on yourself and create some answers to frequently
asked questions that can be tailored to the given situation.

Telephone conversations can closely follow the script; just make sure the employee doesn’t
sound as if he/she is reading. Emails need to be tailored to the intended recipient, but you can
still create response templates that you save as drafts. There are software programs that are
specifically made for doing this. If you’re pinching pennies and know how to identify viruses
and malware, you can find a freeware program to do this for you as well. If you have a website
(and you should), post this information on the website as general information, etc. When in
doubt, create a FAQ (Frequently Asked Questions) page. Typical questions are as follows:

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 Experience – how long you’ve been training, what types of clients, etc.
Qualifications – Certifications, schools, and supporting information about your training
References – other clients they can speak with (or view comments from on your
website…)
Services – available programs, packages, prices, recommended programs, discounts, etc.
Results – what can they expect and by when
Assessments – the steps involved in the Par-Q and initial meeting
Typical session – what it will be like and what activities are common
What kind of guarantee is provided?
Do you have a proven system for results?
How can you help me make a lifestyle change?
Will nutrition and lifelong exercise motivation be part of the program?

TELEPHONE AND E-MAIL POLICIES

You need a written telephone and e-mail policy.

Sample phone policy:

“Personal telephone calls should not be made using company phones or when you're on the
clock, unless authorized by your supervisor. All authorized calls should be kept short and only
made when they do not interfere with your or your co-workers job performance”

OR

It is sometimes necessary for employees to conduct personal business during work hours.
However, you should limit your time spent on personal calls and speak with your supervisor if
you are not sure how much time is acceptable. Because telephones are provided by the
business, all messages and voicemails sent by or received on those systems are company
property and the business reserves the right to access and disclose those messages. Employees
who abuse this policy are subject to disciplinary procedures up to and including dismissal.

Sample Email policies:

“Company computers are provided for job-related activities only. Inappropriate use of
company property will result in disciplinary measures up to and including termination.
Inappropriate use is defined as:

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 ● Adding software, applications, or upgrading existing programs without
authorization
● Making illegal copies of licensed software
● Sending or receiving files, messages, or pictures that are illegal, pornographic,
sexist, racist, harassing, or discriminatory. If you receive unsolicited material of
this nature you should inform your supervisor immediately.
● Accessing software or websites that would compromise the security and
confidentiality of the company's computers and/or damage the equipment (i.e.
viruses)
● Using company hardware and software for non-work related activities without
authorization”

OR

“It is sometimes necessary for employees to conduct personal business during work
hours. You should limit your personal use of the internet and email. Because computers and
services are provided by the business, all messages and web histories on those systems are
company property and the business reserves the right to access and disclose those messages.
Employees should also be aware that “deleted” messages are still backed up on the system and
are, therefore, accessible. Employees who misuse the internet and email are subject to
disciplinary procedures up to and including dismissal.”

Make sure you inform employees that, legally, they do not have an expectation of privacy or
confidentiality when using business property and those transmissions can be monitored,
recorded, etc.

ADDITIONAL LEGAL CONCERNS

You should always include proper disclaimers as part of your risk mitigation strategy.
Disclaimers can prevent you from being sued and they can also be a valuable marketing tool.
Even with disclaimers, libelous or defamatory e-mails can still result in a lawsuit, but the

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company's liability is reduced because the business can show that they did everything in their
power to prevent employees from misuse of the business’ property.

There are several types of threats that can be tempered by using disclaimers.

1. An accidental breach of confidentiality – this means that if an e-mail is

accidentally sent to someone who is unauthorized and they read it, they are
tacitly entering into the confidentiality agreement and cannot use the
information.
2. Transmission of Viruses – Sending or forwarding an e-mail containing a virus
could result in a lawsuit. So, get a virus program that “blocks” incoming and
outgoing email viruses but also include in your disclaimer that the email might
contain a virus and the recipient is responsible for scanning.
3. Entering into contracts: Emails can be viewed as binding legal contracts if the
author has actual or apparent authority. For employees unauthorized to create
contracts, include a notice that contracts must be explicitly confirmed by the
employee's manager and name the manager.
4. Negligent misstatement – a recipient or third party relying on your information
and considering it to be professional advice could hold your company liable for
any negative affects resulting from the advice. I know this one sounds strange.
Think of a new type of exercise or advice to a friend that they should push
through an injury {which you would never tell a client, right?} which seems totally
innocent, but in the wrong hands….lawsuit hungry people would have grounds to
take you to court.
5. Employer's liability: Including in the disclaimer that employees are expressly
forbidden to send libelous, offensive, obscene, or defamatory statements can
reduce the business' liability if an employee does send such an e-mail. You may
wish to instruct any such recipients to forward the email to your email address, or
the HR department if you have one.
6. You will need procedures for how to handle the sticky situations involving sexual
harassment, intoxicated clients, stealing, unacceptable behavior, car accidents,
etc. Hopefully you will rarely need these, but these situations are stressful
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 enough without trying to figure out what to do on the spot. Samples of these
forms are available free on the internet at several different sites. The form you
will probably use most often is the Incident Report form. You and all your staff
need to know what it is and how to use it.

Sample E-mail Disclaimers

Complete disclaimer:

This message contains confidential information and is intended only for the individual
named. If it is not your name and you received this in error, you should not disseminate,
distribute or copy this email. Please notify the sender immediately by email if you have
received this email by mistake and delete this email from your system. Email transmission
cannot be guaranteed to be secure or error-free, as information could be intercepted,
corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender and the
organization accept no liability for any damage caused by internet transmission. The
recipient should scan this e-mail and any attachments for viruses.

Sample Departmental Disclaimers

Sales: “Prices quoted are only valid for 30 days from date of quote”

Development, Finance, Accounting: This message contains confidential information

and is intended only for the named addressee. If you are not the named addressee,
you should not forward, print, disseminate, distribute or copy this email. Please notify
the sender immediately if you have received this email in error and delete this email
from your system. The recipient should check this email and any attachments for the
presence of viruses. The organization accepts no liability for any damage caused by any
virus transmitted by this email.

Administrative Assistants: This message is sent on behalf of [John Smith] and is intended
for [Jane Doe]. If you are not the named recipient, you are notified that disclosing,
copying, distributing or taking any action based on the contents of this information is
strictly prohibited. {The Business} accepts no liability for the content of this email, or
for the consequences of any actions taken regarding the information provided, unless
that information is subsequently confirmed in writing by [John Smith].

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The disclaimer should include the business name at the beginning. Personal trainers should
probably put disclaimers at the bottom of the e-mail; but finance and legal may want to put
them at the top.

Make sure disclaimers are a different font, color, or are outlined so that they are clearly
distinguishable from the e-mail's content. Multiple replies will fill up space with disclaimers, to
avoid this you can get software programs that ferret out disclaimers and make sure they are
not duplicated. Although small businesses can probably do without this extra program.

Disclaimers can be set up in signature lines, but to ensure that they are not altered by
employees, it is best to set them up at the server level.

CLIENT RETENTION
Retention isn’t simply keeping clients from leaving or having them re-sign when their contracts
expire. Retention occurs through the entire relationship with the client. When you keep the
client actively engaged, you retain the client. Clients tend to leave if they don’t see results, if
they experience poor service, if they’re bored, have little interaction with the trainer, and when
trainers over-promise and under-deliver. However, if you over-deliver, you’re clients will stay
with you. Client retention is vital to a personal training business both in terms of immediate
profitability and long-term success. Here are a few of the reasons it’s so important:

Competition is fierce – if you lose one client, you will lose any referrals from that client
and jeopardize your reputation
Acquiring new clients is expensive; whereas the cost of keeping a client is nominal
Longer term clients generate far more “back-end” income than short-term clients.
Referrals, up-selling, cross-selling are all easier with a client who believes in your service
because they have gotten results.

Obviously there are other reasons that a client may not continue, but these are the main
reasons and the ones that one have control over. We must understand as service providers that
when a client trusts us to be the “bridge” to their desired result, we have an obligation to get
them there. We need to take ownership of these goals to ensure their attainment. We also
need to Remember that we are in a very personal business, in which our clients often suffer
from low self-esteem. This means that our attention and service is that much more important
to these people. And finally, don’t offer someone the “moon” just to get their name on the

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dotted line. Let the client know what they will receive in the introductory session and then
over-deliver during their program.

Keys to Client Retention and Good Service

Statistics indicate that if a person can adopt the habit of regularly working out within the first
30 –90 days, then they will most likely continue for many years. In fact, statistics also show that
on average, 1 out of every 4 people who join a health club stick with their fitness goals. That
means 3 out of every 4 new clients (75%) join a club and then stop using their clientship! We
can keep them involved. Remember, if people stop using their training program, it means they
won’t renew at the end of their agreement or refer new clients. If you can get your clients to feel
welcome and successful, your revenue will increase substantially.

5 Easy Steps to Client Retention

1. New Client “WELCOME PACKET”

Each new client should receive a “Welcome Packet”, which includes a nutritional

component, a resistance-training component and a cardiovascular component.

Suggestions for flexibility, fitness at home, fitness on the go and supplementation should also
be included. This will provide the client with nutritional guidance including an example grocery
list and suggestion for eating out. It will also provide the client a “plan” that they can perform at
home, in the gym or on the road.

2. Follow-Up Thank You Card

Within the first week, your client will receive a handwritten thank you card. Not only will we
thank him/her for choosing our services, but this also provides the opportunity for us to begin
building a “relationship” with each new client and creating a culture for referrals.

3. Recurring Follow-Up

If clients are not utilizing their programs, you should follow up with them in an effort to
schedule appointments and get them involved. You can do your part to keep them involved by
making a token phone call or by simply taking the time to talk to them in the club. A weekly e-
mail and a monthly client appreciation day will also keep clients involved and allow you to
create another selling opportunity.

4. Monthly Handouts

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You should provide monthly handout to augment the education that you are providing your
clients. This will help keep your clients involved as well as improve their fitness knowledge.

5. Over Deliver

All the aforementioned efforts would fall into the category of over delivery. But really, the
simplest way that you can over deliver is to give service the way you’d want to receive service.
Treat all of your clients the same way that you’d want to be treated.

What clients mean to You

Your clients are the most important people in our business.

They are not dependent on you; you are dependent on them.

They do not interrupt your work; they are the purpose of it.

They do you a favor when they call; you are not doing them a favor.

They are not statistics, but fellow humans with feelings and emotions.

They are part of your business, not outsiders.

They are not someone to match wits with or argue with.

They bring you their wants; it is your job to satisfy these wants.

They deserve the most courteous and attentive treatment you can give.

Chapter 13: The Mentality of Personal Training

Personal training is not just handing over a list of exercises. In this chapter I cover the way that
you can assist a client in reaching personal goals and overcoming obstacles. I’ll discuss:

Goal Setting

Motivation

Breaking Habits

Accountability

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Client’s Personalities

Trainer Characteristics

GOAL SETTING
Setting goals is a matter of creating measurable, reachable goals for the client. There should be
both long-range and short-range goals. This is because if you create only long-range goals (i.e.,
the client wants to lose 50 pounds) it will be difficult to maintain momentum. But by breaking
them down and perhaps expanding the goal to include cardio, strength exercises, and nutrition
training, the client will be able to meet smaller goals and will reach expectations faster and
earlier – giving him even more motivation to continue working with the trainer.

Let’s look at an example. Imagine that you have a client who wants to lose 50 pounds. In order
to make it measurable, we have to ask the question “by when?” The client tells you he would
like to lose 50 pounds by July 2010. You write that on his goal-setting worksheet (see Appendix
A). An example is completed below.

Generally the trainer fills this out, with the assistance of the client, so pretend you are filling
this out as your client answers the questions.

1. What do you plan to accomplish by starting this training program?

_______I want to lose 50 pounds.
_________________________________________________________

2. Let’s reword that goal so that it is achievable and measurable:

_____________I want to lose 50 pounds, following the program my trainer outlines for me, by
July 2010. _____________________________

3. The steps you must take in order to reach this goal are:

____Diet as prescribed by my physician

____Follow the exercise program as prescribed by my trainer, exercising at least 45-60 minutes
five days per week. ______________

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4. The activities that are necessary to reach this goal are: (list both activity and duration)

________Treadmill – 20-30 minutes per day.

________machines – 30 minutes 3x per week

_______Group class – at least 2x per week

_______Give up all sweets for duration of this program.

5. Progress: (Review every 2 weeks; write assessment below)

______________________________________________________________________________
______________________________________________________________________________
___________________________

MOTIVATING THE CLIENT

Clients cannot be cajoled, taught, or browbeaten into exercising. Instead, the trainer must
encourage and motivate the client. This is done in two ways: first, by creating programs that
help them see what they can do, and second, by spoon-feeding it to them in small increments
so they feel successful.

Some trainers, after finishing the goal worksheet, move on to fill out a motivational “contract”
with the client. You can write this formally, in a fill-the-blank style, or informally between the
two of you. It is not a real contract, but more of a gentleman’s agreement. It is also a way for
you to tell the client what you consider to be your commitment to him. It might look something
like this:

Date:______________

Contract between ______________(client) and ____________________ (trainer)

Some components of your program are easily measurable. These are:

● Weight
● Pulse
● Blood pressure
● Physical size
● Speed

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Others are less measurable, like flexibility, strength, ratio of body fat to lean body mass, etc. In
order to motivate clients, it is of the utmost importance that they feel successful. So you have
to measure everything you can for the duration of the program. If a few pounds on the scale
make the client nervous, it will help if you can blame it on water retention and show them that
something else has improved.

Many personal trainers do not own sophisticated equipment that measures cardiovascular
rates, VO2 max, and the like. You can, however, use a heart rate monitor along with whatever
equipment you have. Also take measurements (weight as well as waist, hip, thigh, calf, and
bicep) at consistent intervals, and record these. Clients often do not realize they are losing
weight or gaining muscle, and these measurements become instrumental in the longevity of a
client’s commitment.

Keeping clients motivated or excited about the program will be the underlying key to keeping
your schedule full. People who want to work with you as a person will want to continue.

The way to motivate them is by becoming compatible with any sort of personality. Some people
will need you to be firm, yet supportive; others simply need encouragement.

You can motivate clients by giving lots of praise, or by any other method you like. Some trainers
keep a chart on the wall and place stars by clients’ names who have reached their goals. Some
place pictures on the club bulletin board or the website. Any method that you can think of will
probably work!

Being able to understand what makes a client feel that you care, or feel that you are listening,
or any of the other myriad of personal attributes will be the key to your motivational effort.
Above all, the client must feel that no matter how much he struggles to meet a goal, his trainer
is patient enough to see him through to the end.

THE BASICS OF CHANGING HABITS

To help your clients create a true lifestyle change, you need to have them evaluate their current
habits of overeating, not exercising, and whatever other unhealthy vices they have. There are
six steps in this process. It may help to have clients write out the answers to these questions.

The decision to change – Clients need to clearly outline what is wrong with what they
are doing (or not doing). What are immediate disadvantages and advantages, what

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 about long-term? What are the worst possible consequences? And what would the
client think if someone they cared about was exhibiting the same behavior?
Use awareness training – Have them describe the habit from the first action to the last
and provide specific details about what they are thinking during it.
Devise strategies- Stop strategies often include monitoring sheets, a time-specific
rewards system, and recording details about the frequency and occurrence of the habit.
What is happening, where are you, what emotions are you feeling? These types of
questions will help the client identify patterns in their behavior and what triggers them
to decide to skip a workout or eat an unhealthy meal.
Replace with alternative behaviors – The alternative behaviors here are fairly obvious,
but you may be able to tailor them to the specific client.
Persist, be consistent, and track progress
Manage slip-ups – Make sure you keep your clients motivated and don’t let them give
up after one small mistake or failure

ACCOUNTABILITY
More than half the people who begin an exercise program quit within the first two months. This
tells you from the outset that a large part of your work will be
to keep them coming back. Don’t try to use tricks or
gimmicks; instead, hold the client himself accountable for
every step of his program. Questions about the habit:

One way to do this is by viewing goals as an ongoing process. Is it harmful?

How do you feel about
It is easy to set goals, march along for six months doing the
it?
same boring routine, and measure or weigh at the end to see Is it
whether the client has met the goals – if you even still have embarrassing or
the client after that long. By looking at goals as ever-changing irritating?
and ongoing, you can guide the client slowly toward the What are the 3
outcome he or she desires. worst possible
consequences?
See, people love success, and if they feel successful, they’re What are the 3
going to keep working the program. So once you have set best things that would
goals and you are beginning to build a relationship with the result from breaking
it?
client, take a step back and check to see that the goals you’ve
created are reasonable and attainable based on the clients’
physical, emotional, and mental state at the time.

If the goals still seem correct, be sure that you give the client some of the control by making
him accountable for his own progress. Having him sign a contract like the one mentioned in the
previous section is one way to hand over accountability.
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Periodic testing built directly into the program provides motivation as well as encourages the
client to stay on track with his goals. Assessments that are scheduled too often may be
detrimental; but evaluating progress to stay on track gives both accountability and
encouragement. Assessments, then , must be presented in a positive way to help the client see
them as something to look forward to, not to dread.

CLIENT PERSONALITIES
Since your job is to help your clients meet their goals, you have to be able to work with a wide
variety of personalities and still get results. If you understand different personality types, you
will be more successful. The psychology of personal training includes understanding what
motivates, scares, frustrates, and excites the client and knowing what to ask to find out these
things. Often, clients have unrealistic expectations about training and you have to make sure
that their goals are feasible. Keep in mind that a lot of clients will be afraid of failing, not
knowing what to do, looking silly, and think everyone is looking at them. You need to reassure
them and make them feel comfortable in the workout space. The following chart shows main
personality types and how to work with them. Pay attention to the character traits – Often a
person will be most of one with a little bit of another. For instance, 80% conventional and 20%
amiable. Combining the strategies for working with these personalities will give you better
results.

TRAINER CHARACTERISTICS
Since personal trainers have to adapt to clients’ personalities, there are some skills and traits
that the trainers must have, even when acting like a chameleon. Trainers must be
knowledgeable and secure in their training so they can answer questions, and admit it when
they don’t know the answer. Since they should also be supportive and genuinely invested in
the client’s success, they should be willing to research questions and get back to the client with
answers. Trainers must also be role models of healthy behavior at all times. This will help the
trainer get the client to believe in his/her success with the training program.

By practicing active listening and demonstrating empathy, the trainer will invite the client’s
trust and make him/her more comfortable. You have to be willing to talk to them about things
that are going on in their lives, but also know when to draw the line. So be sensitive and
tactful, but maintain your professional boundaries.

Most importantly, trainers need to be teachers, motivators, and managers. They need to
educate the client, encourage them and keep them on task, and follow up with them, holding
them accountable for their own success. Your instructions should be clear, easily understood,
reasonable, and appealing to the client. If not, they will not be able to commit to your

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program. You can be innovative, but make sure you explain the physiology and science behind
your ideas. Finally, you need to be committed to providing timely, specific feedback to your
clients so they will know what they need to work on. All of these practices should help you
please your clients without exhausting yourself.

Chapter 14: Hiring and Staffing

This chapter will help the reader determine whether to become an employer and how to go
about finding, interviewing, and training employees. It addresses interpersonal relationships,
staffing issues, legalities, and tax-related implications of having a staff.

SHOULD YOU EMPLOY TRAINERS?

As your business grows, you will find yourself too busy running the company to handle all of the
training by yourself. It would be nice to clone yourself, hiring someone exactly like you, but the
fact is if someone could do exactly what you do, he or she would already be doing it -- building
a competing business. No matter what size of company you plan to own, it’s probably a good
idea to interview and hire trainers who can work with you at least part-time or on an occasional
basis.

Before jumping into hiring new trainers, it is imperative to understand exactly what you wish to
accomplish by having employees. Becoming an employer is a big decision, with legal and tax-
related implications. You'll suddenly be liable for the actions of people other than yourself, and
you'll be expected to pay workmen's compensation and employment taxes.

If you're hoping to free up time for marketing or other business activities, it's probably a good
idea to hire trainers. However, if you simply desire more time for training on your own, then
perhaps you would be better served by hiring an administrative assistant or sales staff instead.

One way to determine which type of employee you need is to create a select list of the things
you would like to delegate to someone else. Think about your skills and you weaknesses, but
also how much you will be able to trust someone else to do the job. This is extremely
important because, for example, if you hire an accountant, he or she will not want to be
micromanaged. When you are done, look over the list and be sure that it includes
responsibilities and tasks that would free up time for you if delegated, and that would also
allow the employee to truly participate in the business. If you're hiring them strictly for drudge
work they won't stick around!

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Some common employee categories in the personal training business are:

Front desk/receptionist

Maintenance

Cleaning

Accountant or Bookkeeper

Tax Accountant

Lawyer/Firm

Sales Staff

Marketing Personnel

When hiring these types of employees, you will have to decide whether you want them to be
in-house employees or independent contractors, and you will also have to determine whether
they should be full-time or part-time, salaried or hourly employees.

To decide whether hiring an independent contractor or a direct employee is better for you,
consult your accountant or tax advisor, or read the IRS Publication 15-A Employers
Supplemental Tax Guide. If you do have employees and don’t have the knowledge or the time
to handle all the bookkeeping requirements of payroll taxes, consider using a payroll service

Before hiring any staff client, it is advisable for you to have a hiring policy in place. The hiring
policy should clearly set forth the criteria needed for each position. If a certain qualification is
in your hiring policy, it should also be in your job description. It should reflect at bare minimum
the education level, certifications, experience, and skill set that your ideal candidate will have.
Hiring policies are often found in the employee handbook.

CREATING THE JOB DESCRIPTION

After you have decided which sort of tasks you're going to delegate, you will see which type of
employee you should hire. Before you begin to advertise, though, take another step. Sit down
and make a very detailed job description. It doesn't have to be as formal as if you worked for a
large corporation, but it does need to outline clearly the person's responsibilities and skills.
Clearly list any special credentials, certifications, or education that you want the applicant to
have.

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When you start creating the job description, you need to identify the job title, department, the
immediate supervisor’s job title, the type of employment (full-time, part-time, etc), the regular
hours of the job, and the employment type (exempt or non-exempt). Next, you need to create:

A description of the position as it should ideally be carried out

This includes the skills, knowledge, and experience required to perform the job duties

It’s generally a good idea to have a description for this position as a full-time employee and
part-time employee on hand and keep a record of when the description is updated so when you
need to hire again you don’t have to start the process all over again.

Think about the purpose of this position and why you need another employee

What do you want them to accomplish?

What weaknesses do you have that you could offset with a new employee’s strengths?

Think about the major responsibilities of the job and how much time is spent on each thing.
List these responsibilities in order of importance and estimate the percentage of the
employee’s time that will be spent on each task.

If the task is less that 5% of the employee’s time it doesn’t need to be on the job description.

The following questions that you need to ask yourself are fairly straightforward, but for legal
reasons, make sure you document brief explanations.

Will the employee be closely, moderately, or minimally supervised?

Will the employee have access to confidential information?

Will the employee have access to company funds?

Must the applicant speak English fluently?

What kind of work experience, and how many months or years are necessary for this position?

What training and education is necessary for this position?

What technical skills are required or would be beneficial for this job?

Is this person responsible for supervision, hiring, firing, performance reviews, etc? If so, how
many people and what are their job titles?

Any other skills, special training, abilities, background, etc that would be beneficial.

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Many companies choose to advertise their position with a type of “wish list”. They state
qualifications of 2-3 years of experience, but may be willing to hire someone with less. You may
want to go this route as well, since applicants often send in resumes if their qualifications are
anywhere close to the job description. This might help you reduce the number of applications
you receive so you’ll have a more manageable number.

After completing these steps, creating the actual job posting should be relatively simple. You
need to list the Company’s name, who the candidate would report to, what his or her title
would be, a salary range (if you wish), and the hours and type of employment. Most of these
are optional, so you can choose to keep certain information confidential if you wish. You first
need to explain the purpose of the job – what the employee will be doing, who will be impacted
by their performance, and in what way. Then, you should list the essential duties. This is where
your prioritized list with time estimates comes in. You need to tell potential candidates what
they need to be able to do to be successful in this position.

The following step is to provide a general description, which usually includes some information
about the company and what it does. Here, you basically describe the job as you would to
someone who does not know much about the industry to avoid miscommunication. Finally,
you need to list the minimum requirements for the position; which includes years of
experience, skills, abilities, and credentials.

Once you have created a complete job description you’ll need to decide how much you are
going to pay. Most personal trainers are paid on a percentage basis; that is, the client pays you
and you pay the trainer a percentage of that amount. If you are hiring administrative or sales
staff, they are normally paid an hourly wage based on the average in your area. However, you
may choose to hire salaried employees. If you do so, they will need to be classified as either
exempt (not paid for overtime ) or non-exempt (paid for overtime ). Salaried employees feel
like they have more of a stake in the success of the company and more job stability, but if you
don’t know how long you want them there, go with hourly employees. Simply call around to
some clubs or other businesses and ask the owner or manager what they are paying.

In order to remain within the legal bounds of employment, be sure that you have your attorney
review the job application form that you intend to use. There are forms available on the
Internet and at office supply stores. But your lawyer will know about compliance and current
employment laws.

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While we're on the subject of employment laws, it is a good time to note that you should have
every prospective employee fill out an application. Even if it is a friend or relative it is necessary
to have an application on file.

Where to find qualified prospective trainers

You probably already have an idea of what sort of employees you want to hire, especially if
you're hiring trainers and you work in a large gym. Hopefully, you began keeping an eye open
for new trainers as soon as you had a glimmer of an idea that you would hire some. This
probably started long before you had a business or even an opening, and you may already have
resumes and applications of qualified prospects in your files.

The list of places to advertise for jobs is exhaustive, here are some of the most common: local
newspaper, temp labor companies, job fairs, trade journals, recruiters, staff referrals, current
employees, client or client referrals, vendor referrals, etc. These all have benefits and
associated costs, and not all of them will help you find the right candidate. However,
advertising in the local paper will generally fulfill your legal obligation to advertise where
disadvantaged groups will be likely to see the ads. Although I believe that help wanted ads
generally prove to be somewhat useless when searching for trainers. Your ideal candidate is
probably not an unemployed person reading the newspaper. Rather, he or she is a busy
successful trainer, who already has a following. How do you find these? Put the word out
among your coworkers, your former coworkers, clients and other professionals in the business.
Don't overlook the value of networking with people whom you know socially, even if they
aren’t in the fitness business; you never know when someone might have just the perfect
candidate for you.

I find very qualified prospective trainers from local colleges and universities. I’ve used the
internship programs with much success over the years. You will be able to have a fresh supply
of new trainers about to graduate that you can select from. You can expose them to a variety
of elements in your business to see where they excel and how they can benefit your company
in the long run. You can see firsthand if they are a match for your business ethics, mission, and
long term goals. You are not required to pay them during the internship, though you can
choose to. The internship usually lasts from 4 to 6 weeks or one semester, depending on the
school they attend. I find it much easier to train a new trainer in the ways I want things done
than to train an older, more experienced trainer who has preconceived ideas on how to run
things. However, that being said, there is a place for the more experienced trainer when you
are setting up a new program, a different direction, a side company, or when they agree with

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your methods and objectives. That is the place where their experience will shine for you and
both you and the trainer will benefit from their background and perspective.

With an internship program it is a simple matter to just end the internship at any point you feel
it is not working for you. Likewise, you are free to offer the intern a job if they have worked well
for you.

The college and university internship programs are structured so the student is required to
offer a completed resume. know pretty much what they want to do and the general area they
want to work in. Other trainers who will apply for work with you will know more specifically
what they are looking for and will have more extensive resumes.

Interns are usually scheduled to sit for their certification exam at the end of their internship. If
they have worked out well for me, I will invite them to come on board as a trainer for me after
they pass their certification exam.

That is the place where their experience will enhance your program and both you and the
trainer will benefit from their background and perspective.

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 It’s kind of been my belief all along, coming from coaching, that there are certain
intangibles that you can’t teach. You’re not going to teach somebody a great work
ethic or great people skills. The intrinsic motivation to be on time, treat people
with courtesy, and to display a passion for what they do has to already be there. I
hire the kind of people who really care not only about their client’s success as it
relates to fitness, but cares about their overall happiness. Like other jobs, servers
for example, personal trainers are paid based on the quantity and quality of the
service they provide. I look around at our staff and essentially, eighty to ninety
percent had no real training background, they all had a passion for fitness and I
think that’s important because they’re going to spend a lot of time learning new
skills and programs. So they have to be passionate and interested in it.
Do I look for people with all the qualifications, the degrees in exercise physiology,
the whole wall full of certifications? Not at all. All of these things can be taught.
You need to be able to teach somebody else to provide the same thing that you’re
providing. And my experience is when we’ve hired people that come in with this
preconceived notion about how to do things and about how this business ought to
be run or how services ought to be provided, we end up butting heads.
As the business owner, we have a proven method of delivering
results that we use that has created our success. So when somebody is
coming on board with us,
Their ideas about how to run the business are of little consequence. The
more suggestions they give, the higher the likelihood of their
incompatibility with our organizations. For example, we had a
gentleman come in to apply for a job with us who had been a head
division one strength coach. He had all these ideas for how he was
going to revitalize our business and was telling me what he planned to
do. Finally, my response was “Well, if these were all such great ideas,
you probably wouldn’t be unemployed.”
See, a new employee is going to do things our way. It’s not that we
don’t value new opinions, but that opinion doesn’t have any merit until
the employee has demonstrated ???. We value our current employees’
opinions a lot, but it’s something that increases over time. So, when
I’m hiring somebody, I feel like we will teach them what I call the
tangibles. We will teach them the way we want the services provided.
We will direct them to get the certifications that we feel are credible.
We will teach them how to be a key component of our business.
Qualifications are important but when I hire a staff client I’m looking
for someone who can replicate what me and my other staff are already
doing. The person who is most trainable and who mimics most of the
attributes in general, not just the training skills, but also the client
service skills, the enthusiasm, and the work ethic. That’s what I’m
looking for. I can teach anyone to be an expert trainer.
I make it clear from the beginning that I’m going to offer a salary
based on the trainer's knowledge right now. As long as people are
growing, learning and being compensated fairly, they’re going to stay
with you. We have a pyramid that outlines what new skills and ???? are
required for a pay increase. Raises aren’t given based on longevity. My
205 longest term staff client might be just doing what he did when he came
in, and that’s completely acceptable. I want him to grow, but I hired
that employee to do this job. If he is content to simply do his job and
go home, that’s fine with me. In this case he is going to get paid what
 Should you hire friends or relatives?

There are both pros and cons to hiring people you know, or with whom you have a close
personal relationship. This is always an issue, but it's worth deep consideration. Ask around
and you will find many business owners who will tell you of their own inability to work with a
friend or relative in a professional situation. It may be that your cousin or spouse is unable to
take direction from you and will not view you as the boss. It may be that because your best
friend knows you so well he will abuse your personal relationship. If you are going to hire a
friend or relative sure that you have them fill out an application and an employee agreement,
just like any other employee would. Set the ground rules before work begins, and put them in
writing if necessary.

On the other hand, studies show that your friends and relatives tend to have values and
standards similar to your own. So if you want someone who carries your own work ethic a
friend or relative might be just the ticket. Also peer pressure could work in your favor; because
you have a desire to help your friend or relative become successful, and he or she feels
likewise, your new employee could even exceed your own performance requirements.

I recommend never hiring friends or relatives. Never. Just ask anyone who ever has. I repeat:
Never. It is a different thing to become friends with someone you have been working with and
then want to form some kind of partnership or working arrangement. That friendship
developed during the work of work, after the work ethic, moral character, rapport building, and
baseline has been established. A friendship you have had since childhood or relatives you have
known all your life were predicated on elements other than the current job at hand. It’s harder
to tell a relative or friend, “Just stick with the program” or “you’ve got to get there 15 minutes
early, come on, get with the program or you’re outta here”.

On the other hand, hiring friends or relatives of your current trainers is another matter
altogether. Consider that friends often have similar values and ethics, similar interests and
motivations. If your current trainer is very happy working for you and you are very happy with
your current trainer, then when that trainer refers their friend or relative to you, it pays to take
a look at that person as a possible new hire. Interview using the same criteria you would for
any other person. If you choose to hire them, you can keep the relationship professional and
free of emotional entanglements.

JOB APPLICATION

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As mentioned earlier, every prospective employee needs to fill out an application. Asking for a
resume in addition to the application allows you to compare them and verify that the
information is correct and consistent. Be sure that the application is filled out completely, and
that it is signed. A signature on the bottom of an application means that an employee can be
fired for misrepresenting the truth on it.

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208
(form is in file Ch14forms)

Applicant Information Release

I hereby authorize any person, educational institution, or company I have listed as a reference
on my employment application to disclose in good faith any information they may have
regarding my qualifications and fitness for employment. I will hold [Your Business], any former
employers, educational institutions, and any other persons giving references free of liability for
the exchange of this information and any other reasonable and necessary information incident
to the employment process.

Signed: _______________________________________________

Date: _________________________________________________

APPLICATION FORM WAIVER

In exchange for the consideration of my job application by ___________________ (hereinafter called

“the Company”), I agree that:
Neither the acceptance of this application nor the subsequent entry into any type of employment
relationship, either in the position applied for or any other position, and regardless of the contents

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 of employee handbooks, personnel manuals, benefit plans, policy statements, and the like as they
may exist from time to time, or other Company practices, shall serve to create an actual or implied
contract of employment, or to confer any right to remain an employee of , or otherwise
to change in any respect the employment-at-will relationship between it and the undersigned, and
that relationship cannot be altered except by a written instrument signed by the President /General
Manager of the Company. Both the undersigned and may end the employment
relationship at any time, without specified notice or reason. If employed, I understand that the
Company may unilaterally change or revise their benefits, policies and procedures and such
changes may include reduction in benefits.

I authorize investigation of all statements contained in this application. I understand that the
misrepresentation or omission of facts called for is cause for dismissal at any time without any
previous notice. I hereby give the Company permission to contact schools, previous employers
(unless otherwise indicated), references, and others, and hereby release the Company from any
liability as a result of such contract.

I also understand that (1) the Company has a drug and alcohol policy that provides for
preemployment testing as well as testing after employment; (2) consent to and compliance with
such policy is a condition of my employment; and (3) continued employment is based on the
successful passing of testing under such policy. I further understand that continued employment
may be based on the successful passing of job-related physical examinations.

I understand that, in connection with the routine processing of your employment application, the
Company may request from a consumer reporting agency an investigative consumer report
including information as to my credit records, character, general reputation, personal
characteristics, and mode of living. Upon written request from me, the Company, will provide me
with additional information concerning the nature and scope of any such report requested by it, as
required by the Fair Credit Reporting Act.

I further understand that my employment with the Company shall be probationary for a period of
sixty (60) days, and further that at any time during the probationary period or thereafter, my
employment relation with the Company is terminable at will for any reason by either party.

Signature of applicant__________________________________________ Date: ___________________

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 This Company is an equal employment opportunity employer. We adhere to a policy of making
employment decisions without regard to race, color, religion, sex, sexual orientation, national origin,
citizenship, age or disability. We assure you that your opportunity for employment with this
Company depends solely on your qualifications.

Pre-Employment Drug/Alcohol Testing Consent Form

As a condition for an application to be considered, applicants must understand and agree to submit to a

drug and/or alcohol test. If the test results are positive, the applicant shall not be considered further by the

{Your Business} for employment. The {Business} will pay the cost of the pre-employment

drug/alcohol test. Inconclusive results will require a retest within 10 days. Any additional treatment or cost r
to the results of the testing is the applicant’s responsibility.

{The Company} will maintain the results of the pre-employment drug/alcohol test. Negative and positive resu
be reported to the Director of Human Resources. In addition, any workplace accidents resulting in injuries wi
in a mandatory drug test of the injured party, and any other employee involved in the accident. {The Compan
reserves the right to conduct random drug screens as management deems appropriate.

I understand the above conditions and agree to comply with them. I, hereby, give full consent to undergo a d
and/or alcohol test as a condition of employment with the {The Company}.

Thank you for completing this application form and for your interest in our business.

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 PLEASE PRINT ALL
INFORMATION
REQUESTED EXCEPT
SIGNATURE

POST EMPLOYMENT INFORMATION FORM

TO BE COMPLETED AFTER EMPLOYEE HAS BEEN HIRED

Height ______ ft. ______ in. Weight __________ Birth date

_______________

Married ❑ Yes ❑ No If married, how long? _____ ❑ Single ❑ Separated

❑Divorced ❑Widowed

Full name of spouse Occupation

Name of company Telephone ( )

PERSON TO BE NOTIFIED IN CASE OF EMERGENCY

Name Telephone ( )

Address Relationship

FOR INSURANCE PURPOSES ONLY: LIST ALL DEPENDENTS

NAME RELATIONSHIP BIRTH DATE SSN

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 TO BE COMPLETED

BY EMPLOYER

Date of employment Job title Dept.

Location Rate of pay ❑ Full-time ❑ Part-time ❑ Salaried

Applicant’s signature acknowledging above information

Drug test confirmation number

Name of person verifying information

Name of person authorizing employment

Interviewing prospects

The major element you need to uncover in the interview process is: Can they do the job you
want them to do?

I tend to hire trainers with a bachelors degree or more. I want them to be knowledgeable
enough to think quickly on their feet, progress or regress exercises at the drop of a hat, and
design an effective program at the snap of a finger.

Will they fit in with your company, your staff, and your clients?

If you are a high energy company, will a low energy person work well for you?

If you are a highly structured company, will a loose cannon work well for you?

Will they respond well during times of pressure, stress, and deadlines.

You will have some information from the school such as attendance and grades. These are
good indicators of how seriously they have taken their schooling.

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Take time before the interview to look over the application and resume, and to prepare
questions that you will ask. Make sure that your questions are open ended; in other words,
rather than asking a question that leads to a yes or no answer asked questions that allow the
candidate to talk. Be careful to ask each candidate essentially the same questions. It is best to
take notes during the interview because it is nearly impossible afterwards to Remember
everything that was said.

Only people who can legally work in the United States should be hired. As an employer, it is up
to you to verify identity and employment eligibility of anyone you are considering for the
position during the interview. Let them know this. Also let them know that you will complete
the I-9 (employment eligibility verification form) and that you will require identification.

At the end of the interview, tell the candidate how he can find out whether he advances to the
next level of interviews. Explain whether he should call you or you will call him to let him know.
Don't give anything away, even if you are totally smitten with this candidate, because you have
not yet checked references. You may change your mind after checking them.

Some open-ended questions you may wish to ask to help you decide on a trainer include:
What are your goals, long-term, short-term, and overall career goals?
Why did you choose personal training (or exercise science, or whatever they chose)?
What are your strengths, weaknesses, and interests?
What areas of our company interest you the most?

What are the most important rewards you expect in your career?

Why should I hire you?

What is your leadership style?

Describe your best and worst boss.

Tell me about your last job.

Tell me of a situation in which you were able to get a bored client excited about training.

My favorite all time interview question is “What accomplishments have given you the most
satisfaction and why?” The answer to this question tells a lot about a person and shows what
they value. Their answer may be in relation to something they helped someone else achieve,
or it may be something they achieved solely for themselves. On the one hand it shows
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dedication and perseverance that is to be commended. On the other hand if they have lived
only for themselves, perhaps you need to question deeper. In our business, it’s all about the
client, not the trainer. Watch their eyes and their body language as they answer. See what
talents, skills, and interests they used in those accomplishments. Use your best judgment
because it’s not just you who will work and live with your decision.

When interviewing trainers, Remember that some areas of conversation and questioning are
off limits. Illegal questions to ask are any questions that cover any of these areas relating to the
candidates: age, race, ethnicity, or color, gender or sex, country of national origin or birth place,
religion, disability, marital or family status, pregnancy. If the interview process becomes
comfortable, don’t let it turn into a chat session. Stay focused on the business at hand. When
you have all the information you need, end the interview.

Certification evaluation

When applicants arrive at your office, they often bring certifications that you are not familiar
with. You could turn these over to someone at one of the larger parent organizations and let
them tell you what you need to know. However there are hundreds of legitimate agencies out
there, and most would be more than willing to give you information about their program. This
would be good to know for the future anyway in case you ever have another applicant with that
certification -- or, in case you decide to get yourself!

If you come across an applicant with a certification that you are not familiar with and feel that
prospect may be a very good fit for your company, check that certifying organization out. Some
good things to know are the eligibility criteria for the certification, the standards and policies of
the organization, whether it offers continuing education, and the credentials of the governing
board.

In order to assess the value of a particular certification you need to know:

● The criteria for eligibility for that certification.

● Policies concerning continuing education, disciplinary action and examinations.
● Who is on their governing board and whether any of the individuals are clients of the
public.

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While you're studying that certification, don't forget to verify whether your applicant truly is
certified through this company. Some people will try to forge credentials, so ask for proof of
certification, and then also phone the certifying agency to verify the documents.

Skills evaluation

Hiring a new trainer without evaluating skills is like dropping off your car to be serviced at a
random house down the street; how do you know the person is qualified to do what you want
them to do? The most common way to evaluate skills is to ask the trainer to show you how he
or she might conduct a training session, or present several scenarios and asked them to show
you how they would handle them. However, the easiest way to evaluate skills is to ask the
individual to conduct a training session with you, or one of your clients, as the trainee. Keep in
mind that anyone who is best to do this will be nervous. Also keep in mind that a less
experienced trainer, who has lots of qualifications and good character may still be your best
candidate. If you are willing to train them to do things your way, a lack of skill at this stage is
not necessarily a negative.

Checking references

Do not ever overlook the opportunity to check references, both with former employees and
personal names that have been put on the application. Companies these days are restricted
and cannot verify everything you might want, but often you can learn about the candidate's
character, personality and reliability by checking references. Call and confirm that the applicant
gave correct dates and position titles on the application. Always ask the magic question,
"Would you hire him back?" Also, allow plenty of silence between your questions. This often
gives the other party an opportunity to tell you things you might not have otherwise learned.

When I have finished my interview process and have determined who I would consider hiring, I
go a bit further and confirm their certifications with the certifying organization. If I am debating
between two I may invite each one to workout with me, separately. This allows me to study
their form, their energy level, and their passion.

You should create a form for reference checks; you might want to attach it to the job
application after the section for interview notes. The reference check form should include:

The candidate’s name and the position applied for

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A section for personal references you checked which should list the person’s

o Name
o Relationship to the applicant
o Address
o Telephone Number
o Date contacted
o Method of contact (phone, email, in person)
o And any notes

The Employment references section should include

The supervisor’s name

o The name of the company

o The name of the person you spoke with (if not the supervisor)
o Dates of employment
o Rate and type of pay
o The company’s address and telephone number
o The date of contact
o The method of contact

If the candidate is eligible for rehire and relevant details

o The reason for termination, if applicable

o Any additional notes

Record checks should include the date requested and any notes for

o School records
o Criminal Records
o Driving Records
o Credit Reports

Legalities

Every employer runs the risk of being the victim of an employment discrimination suit. In order
to avoid this, be sure that you document all applicants’ interviews and reference checking.
Save these files for future use.

During the process, be careful not to give anything away about your likes and dislikes of very is
applicants. Once you have decided on a candidate of choice, it is best not to reveal to anyone

217
else why you chose that particular candidate. It is enough to know that this one was chosen
and that one was not.

· Non-compete and confidentiality agreements.

A noncompete agreement is made between an employer and employee or between an

employer and independent contractors. It is a promise by the party not to become employed
by another business that engages in the same kind of work that you that the current employer
performs. In order to be enforceable, a noncompete agreement should have limits pertaining
to the geography and time. As an example, let's say your business is located in downtown
Louisville, Kentucky, and that's where most of your business’ clients are located. In your
noncompete agreement you should prevent your trainers from working with clients in the
immediate Louisville area for the duration of their employment by you, plus a period of, say,
two years thereafter. If you tried to make the agreement cover too broad of a territory (for
example, Kentucky, Tennessee and Illinois) or if you tried to prevent them from training for a
period of time that is to long, for example: 10 years, then your agreement would probably not
be enforceable because the court would not consider it reasonable.

A confidentiality agreement is a contract between two parties agreeing not to disclose certain
information to others. The purpose of having one with your employees is to prevent them from
revealing information that could create a threat to your business. In order to be acceptable a
confidentiality agreement must contain the following elements:

1. A definition of which information is confidential.

2. A statement that there is a duty not to disclose this information.

3. A time limit on the disclosure.

4. The remedy to the offended party, if a nondisclosure agreement is breached.

Sample nondisclosure Agreement

This agreement is entered into by ________________ (business owner) of ______________________(name of

business) and _______________________ (receiving party). The purpose of this agreement is to prevent unauthorized
disclosure of confidential information that is proprietary to the above named business.

For purposes of this agreement, "confidential information" will include all information or written materials that could

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have commercial value in the business in which the parties are engaged. For confidential
information that is written,
labels or stamps shall be applied so that the receiving party understands that this information is not to be shared.

The responsibility of the receiving party does not extend to public information, or information that becomes publicly
known through no fault of the receiving party.

The receiving party will hold information in the strictest confidence for the benefit of the business of the disclosing
party. Receiving party will carefully restrict access to this information by employees, subcontractors, or third parties. The
receiving party will not publish copy or otherwise disclose the information that is considered confidential.

By signing this, the receiving party agrees to hold all information in confidence until it no longer qualifies as a trade
secret, or until the disclosing party provides a written notification releasing the receiving party from the agreement.

By entering into this agreement, the parties are not agreeing to be partners, to join in at joint venture, or that one is
an employee of the other.

This agreement expresses the complete and total understanding of the parties with respect to the subject matter. It
will hereby supersede all prior written agreements, representations or understandings. This agreement will not be
amended except in writing signed by both parties.

This agreement and the obligations of each party will be binding on the representatives, assigns, and successors of
each party. Each party has signed this agreement via its authorized representatives.

____________________( Signed)

____________________( Print Name)

____________________( Date)

____________________( Signed)

____________________( Print Name)

____________________( Date)

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INDEPENDENT CONTRACTORS VERSUS EMPLOYEES
Successful business owners know that employees are not just people who work for the
company — they are the company. Success comes when you can find, hire, and retain the best
instructors possible — not only the most capable, but also the best match for the clientèle and
the company. One of the main functions of a business owner is hiring the right people for the
job with an eye toward training them for key positions.

The nature of a fitness business demands that we have instructors and trainers as part of our
staff. One of the most important questions you will ask yourself is whether to hire independent
contractors or employees. There are differences in the way that work schedules are arranged as
well as differences in expenses. Hiring employees means you have an added tax burden, and
other employment-related expenses like workmen’s compensation, unemployment benefits,
etc. You're also responsible for federal, state, and local taxes. So it is much easier to hire people
on as independent contractors, at least as far as paperwork is concerned.

However, employers have more control over employees than independent contractors. With
employees, you decide the hours, conditions, and compensation. You set the policies that they
must follow and you can expect them to follow your directions.

Whether you choose to hire independent trainers or employees, hire trainers who are certified
or degreed with organizations that uphold the same values you do. I hire education first. It is
important to me to know that trainers I hire have the knowledge to develop safe and effective
programs for our clients. After education, I look to their passion and how they relate to people.
The trainers you hire will represent you and your company to your clients, your community, and
the world.

You can hire them as independent contractor or employee. If you hire them as an independent
contractor, they are free to work for other companies or themselves in addition to working for
you. The main benefit of independent contract trainers is low overhead. The business is only
required to pay them for the time or sessions they work, with no other benefits. Ask for proof
of their certification and insurance, verify it, and keep copies for your records.

The downside to independent contract trainers is that you have limited control of what they
teach, and they are also in a position to build relationships with your clients if you are not a
visible presence. They could wind up leaving you and taking the clients with them. If you pay
them well and treat them well, they may very well stay with you for the long haul. The ideal
freelance trainer is one who has no aspirations of going out on their own, starting their own
business, or getting their own clientele.

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A general definition of an independent contractor is someone whose results you control. They
perform training under your company name, but you do not control the means and methods –
i.e., preparation time, certification, or whether they perform the same service for other
companies.

The bottom line is to hire trainers who you feel will represent the values and mission of your
company, be a good fit with your current employees, and can grow with your company, while
helping your company grow. Follow up with their clients monthly to confirm that the
relationship is beneficial and the client is satisfied.

Tax Implications

If you plan on hiring individuals as independent contractors, check the IRS’ guide “independent
contractors versus employee” located at
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html. This guide will explain the
differences between types of employment and help you be sure you're following the guidelines.

Independent contractors pay their own federal, state, and local taxes. They also do not have a
promise of work, so you can hire them just for one class or a few hours’ time with no strings
attached. If enrollment is down, they can be let go. You can also let go of employees during
hard times, of course, but there are substantial costs involved.

There is still some paperwork involved with hiring independent contractors. Be sure you obtain
a properly signed independent contractor agreement from the individual. A sample agreement
is outlined below. Also make certain that it is accompanied by Schedule A (also below), detailing
the payment method, and by a non-compete agreement, located in Appendix A. These
agreements, like all those in this book, are for sample purposes only; I am not an attorney. It is
best to ask an attorney to draw up all necessary forms for you so that they are state-specific,
and so that they legally cover your specific requirements.

At the end of the tax year, every employer must file Form 1099-MISC, Miscellaneous Income, to
report payments of $600 or more to independent contractors for services performed for the
business.

Example form:

Personal Trainer New Hire

Orientation and training Agenda Check List

Hire Date ____/____/____

Date Completed Initial

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1. Fill out New Hire Packet _____________ ____

2. Issue staff shirts _____________ ____

3. Review all forms in Operations Manual _____________ ____

A. Company Vision _____________ ____

B. Trainer pay sheets _____________ ____

C. Tracker sheets _____________ ____

D. Professional conduct and dress code _____________ ____

E. Trainers absence protocol _____________ ____

F. Cancellation policy _____________ ____

G. Types of programs _____________ ____

H. Measurements _____________ ____

I. Program Database _____________ ____

J. KPI _____________ ____

4. Introduce to all club staff _____________ ____

5. Review job expectations _____________ ____

6. Explain session protocol _____________ ____

7. Review personal workout procedures _____________ ____

(Yield the right of way to clients)

8. Start personnel file (Certification, Degree) _____________ ____

9. Contact phone documented in appropriate areas _____________ ____

10. Review hourly pay and explain commissions _____________ ____

11. Review all applicable club rules and hours _____________ ____

of operation

12. Review all selectorized, cardiovascular and _____________ ____

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 free weight equipment with Facility Director

TRAINER POLICIES
TRAINER ABSENCES

1. In case of an absence, vacation or sick day, all clients must be notified and rescheduled by
the trainer. It is the sole responsibility of the trainer to advise their clients and reschedule
accordingly.

2. In case of an absence, the trainer MUST call the office and speak to the manager

(no voice mail or recorded messages) to inform the manager that all scheduled clients have
been contacted and rescheduled.

3. Clients that have not been contacted and advised by an absent trainer will NOT be tolerated.
We are not in the business of giving away free sessions.

UNIFORMS AND PROFESSIONAL CONDUCT

1. All staff will wear company staff shirts, tucked in at all times.

2. All staff will wear BLACK mid-thigh casual or athletic shorts, casual dress slacks or athletic
nylon warm-up pants. No short-shorts, form fitting/tight pants, leotards, blue jeans, etc.

3. All staff will wear appropriate athletic shoes with white socks. No flip-flops, sandals or
combat boots.

4. No hats or bandanas while on duty.

5. Attire must be clean and neat in appearance at all times.

6. No facial piercings while on duty.

7. All staff shall maintain the highest possible professional standard of conduct at all times
(including professional language, appearance, attitude, etc.). Staff will abide by the facility’s
rules and regulations that are applicable to all fitness club clients.

FOOD AND DRUG ADMINISTRATION (F.D.A) REQUIREMENTS

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Staff may NOT prescribe, diagnose or violate the governing F.D.A. laws while doing business
inside the facility.

SOLICITATION POLICIES

You are only permitted to recommend supplements or nutritional programs approved by Fit
Systems.

No other solicitation of any kind. (Real estate, massage, network marketing, etc.)

TRAINERS’ OFFICE

1. No food or drinks are to be left at the trainers’ desk.

2. All staff are required to eat in designated areas only. No snacking on the floor.

3. No bags or supplements are to be left in the trainers’ office –use storage.

4. All trainer books must be kept in the areas provided.

5. Trainer books are NOT to be taken out of the club.

6. Long distance phone calls are NOT allowed on the company phone.

DATE FILED: ___________________ FILED BY: ____________________

EMPLOYEE: ____________________ LOCATION: ___________________

______________________________

□ New Hire/Starting Date: ____/____/____ Starting Salary/Wage $___________

□ Termination Date: ____/____/____

□ Absent (Approved) ____ (Unscheduled) ____ (Tardy) ____

□ Probation (Explain below) 30-day ____60-day ____90-day ____120-day ____

□ Vacation Applied For (Date: ____/____/____ thru ____/____/____

□ Raise Applied For/Effective Date: ____/____/____

□ Position Change –From: ___________________ To: ____________________

□ Sent Home (Reason): ______________________________________________

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□ Warning (Reason): ________________________________________________

□ Payroll Deduction (Reason): ________________________________________

□ Bonus Amount: $_________ (Reason): _______________________________

□ Outstanding Achievement (Explain): _________________________________

____________________________________________________________

REMARKS: _______________________________________________________

_________________________________________________________________

_________________________________________________________________

Employee

Remarks: _________________________________________________________

__________________________________________________________________

Employee Signature:__________________________________________

Manager Signature:___________________________________________

PERSONNEL ACTION FORM

Training your staff

Personal Trainer New Hire

Orientation and training Agenda Check List

Hire Date ____/____/____

Date Completed Initial

1. Fill out New Hire Packet _____________ ____

2. Issue staff shirts _____________ ____

3. Review all forms in Operations Manual _____________ ____

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A. Company Vision _____________ ____

B. Trainer pay sheets _____________ ____

C. Tracker sheets _____________ ____

D. Professional conduct and dress code _____________ ____

E. Trainers absence protocol _____________ ____

F. Cancellation policy _____________ ____

G. Types of programs _____________ ____

H. Measurements _____________ ____

I. Program Database _____________ ____

J. KPI _____________ ____

4. Introduce to all club staff _____________ ____

5. Review job expectations _____________ ____

6. Explain session protocol _____________ ____

7. Review personal workout procedures _____________ ____

(Yield the right of way to clients)

8. Start personnel file (Certification, Degree) _____________ ____

9. Contact phone documented in appropriate areas _____________ ____

10. Review hourly pay and explain commissions _____________ ____

11. Review all applicable club rules and hours _____________ ____

of operation

12. Review all selectorized, cardiovascular and _____________ ____

free weight equipment with Facility Director

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The staff and all employees of a training facility should wear appropriate attire at all times. The
look is one that the owner must think about and put in writing before hiring that first staff
client. The owner must also take care to follow those guidelines him/herself at all times.

THE PROFESSIONAL IMAGE

Our clients deserve and demand superior treatment and a high-quality staff to help them
achieve maximum personal satisfaction from our services.

Every employee must dress and act professionally. A client’s immediate impression of our
business is often determined by your appearance, attire, personality and most importantly,
your attitude. How you speak and communicate, both verbally and non-verbally, with clients
and coworkers are major factors in creating a warm and welcoming atmosphere. If you radiate
enthusiasm along with a positive attitude, your business will provide an atmosphere people will
want to train in.

As a professional, you are required to do more than simply report to work on time. You must
conduct yourself in a manner, which stimulates clients and coworkers to notice that you enjoy
your work, you are proud of your job and you are eager to serve. Your professionalism is greatly
appreciated!

Certified personal trainers should have a baseline of knowledge but need to be trained on your
systems. They do not know how you want them to follow policies and procedures. Even if you
have a very clear written policy manual (and you should), it is best to go over each item with
your new trainer until he or she understands what you want. Most employers offer an
orientation program, which is a short session explaining the company's policies and procedures.
At the end of the class, the new employee signs off on the policies and procedures manual
stating that he she has read the manual, understands it, and plans to comply with it.

Training in the way that you wish certain jobs to be performed is just as important as policies
and procedures. Skills training, like policies and procedures, can be taught either on the job or
in a class. The more your trainers know about the way you wish things to be done, the better
they can uphold the standards you what your company to carry.

Of course, before your seasoned trainers can be terrific role models for the new hires, you’ve
got to be a great model yourself. This means you have to do things the “right” way – the
company way – all the time. You can’t act one way and expect employees to behave in a
completely different way. Training is not only about teaching a class or handing out a manual; it
is mostly about modeling the behavior you want to see around your facility.

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During this stage, assume that employees have lots of questions. Encourage them to ask. Also
encourage them to tell you what they think of your training program, your techniques, and your
facility.

Training your new staff is a simple procedure when you have a plan of action. If you have an
employee manual, give them one and have them read it through. If you don’t have one, get
one. During the honeymoon period you’ll want to teach them your company policies and
procedures. We’ve always had our new hires shadow one of our more experienced trainers for
a period of time, allowing more freedom and responsibility as time and experience merit. As
new clients are enrolled, they will be assigned to a trainer based on the schedule and trainer
specialty.

After the initial orientation and training that you offer, it is important to keep adding to the skill
level of your new employees. One way to do this is to keep an eye out for teaching
opportunities. Show them what they can do to improve, and ask your experienced trainers to
do the same. You can do this using real clients, as long as you don’t make the clients feel as if
they are a guinea pig for a totally new, wet-behind-the-ears trainer. You can also send them off
to continuing education classes, if you have the funds to do so.

PAY AND BENEFITS

The payment structure is going to be one of the most important parts of your business. If you
are too generous to your trainers, you will make them successful, but you won't be able to plow
enough money back into the business to make it successful. On the other hand, if they are able
to make a good income, they have an incentive to stay with your company long-term.

Most trainers get a portion of the client fee as their pay for 1 on 1 training. Some trainers may
start with a lower percentage, in the range of 25-30% of the session fee until they have proven
themselves, at which point they might be compensated at a rate of 50% of the per session fee.
Trainers who are full-time, and doing very well are often paid even more; the facility will make
more off a highly successful trainer than from those are doing much less and getting 50% split.

For group based offering such as semi-private training or fitness bootcamps, the percentage will
be a bit lower but the actual hourly fee will often be significantly higher for the employee due
to the higher per hour value of group training to the business.

If you have employees, the hourly wage is only part of the compensation you give them. Many
people do not expect very small companies to offer benefits, but savvy business owners will
recognize that benefits are important, especially if you want to retain your employees over the
long haul. A benefits package might include group insurance, one or more paid holidays, and

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vacation time. You might also consider offering bonuses based on the revenues the individual
brings in. In most states, if you have three or more employees you must carry workers
compensation insurance. Be sure to check with your state insurance office or with your own
insurance agent to be sure that you comply with the law. Do this prior to hiring any employees
so that you have the paperwork ready and understand the responsibilities that will come with
employing people.

Besides financial benefits, there are other ways to offer great incentives to keep employees.
For example, liberal family leave or flextime hours allow employees to feel that they have some
freedom. Asking for their input on policies and procedures and the working environment will
also help enhance productivity.

CASE STUDY: Greg Justice

My own personal philosophy regarding which type of trainer I hire is very simple. I hire education
first, then personality and passion.

Every time this subject comes up I end up ruffling some feathers. It isn't my intention, it's just
my opinion. I didn't even hire myself until I completed my master's degree. Don't get me wrong,
I'm not saying you should only hire trainers with their master's degree in exercise science, but
they should be well trained and qualified before you allow them to work with clients. At the very
least they should be certified by a top tier group like ACSM, ACE, AFAA, NASM, or NCSA.
Nearly two-thirds of the 2,700 certified trainers interviewed in a National Board of Fitness
Examiners survey admitted knowing trainers they considered incompetent. A study of health-
and-fitness professionals published in the Journal of Strength and Conditioning Research found
that trainers who had five years of experience but no college degree scored an average of 44 %
on a test of basic fitness knowledge. Those with at least a bachelor's degree in exercise science
scored an average of 68 %. Trainers with an ACSM or NSCA certification got 85 percent, while
those with other certifications or none at all came in at 36 percent.
Education matters. As an industry we can do better. Our goal should be to raise the professional
and ethical standard of our industry, not lower it. My concern is that we're too busy trying to
entertain our clients rather than provide them with the proper guidance they really need.
Deana Melton, assistant professor at North Carolina Agricultural & Technical State University,
has been interviewing club managers for an upcoming study on trainer qualifications. Some of
the responses included; "We know it's important to hire quality trainers, but we... have to pay
them more, and that cuts into our profit too much." (According to the U.S. Bureau of Labor
Statistics, the average personal trainer makes $25,190 per year. The average hourly wage for a
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trainer at a chain club is $24.42.) She also found that some clubs hire college students—and not
necessarily those with exercise-related majors—as trainers in exchange for free clientship.
Your clients are the most valuable asset you have. Why would you risk putting them in the hands
of someone without the proper qualifications, because they have a good personality, or just to
save a few bucks?
When I began AYC back in 1986, personal training, as an industry, included a lot of "gym rats"
just trying to make an extra buck at the club. I believed then, and still do today, that raising the
bar, as it relates to the "science" of personal training, was important. The art of personal training
is important too, and that's where personality and passion come in. If you want longevity in this
industry, you must bring the science and art together.
Nearly two-thirds of the 2,700 certified trainers interviewed in a National Board of Fitness
Examiners survey admitted knowing trainers they considered incompetent. A study of health-
and-fitness professionals published in the Journal of Strength and Conditioning Research found
that trainers who had five years of experience but no college degree scored an average of 44 %
on a test of basic fitness knowledge. Those with at least a bachelor's degree in exercise science
scored an average of 68 %. Trainers with an ACSM or NSCA certification got 85 percent, while
those with other certifications or none at all came in at 36 percent.
Education matters. As an industry we can do better. Our goal should be to raise the professional
and ethical standard of our industry, not lower it. My concern is that we're too busy trying to
entertain our clients rather than provide them with the proper guidance they really need.
Deana Melton, assistant professor at North Carolina Agricultural & Technical State University,
has been interviewing club managers for an upcoming study on trainer qualifications. Some of
the responses included; "We know it's important to hire quality trainers, but we... have to pay
them more, and that cuts into our profit too much." (According to the U.S. Bureau of Labor
Statistics, the average personal trainer makes $25,190 per year. The average hourly wage for a
trainer at a chain club is $24.42.) She also found that some clubs hire college students—and not
necessarily those with exercise-related majors—as trainers in exchange for free clientship.
Your clients are the most valuable asset you have. Why would you risk putting them in the hands
of someone without the proper qualifications, because they have a good personality, or just to
save a few bucks?
When I began AYC back in 1986, personal training, as an industry, included a lot of "gym rats"
just trying to make an extra buck at the club. I believed then, and still do today, that raising the
bar, as it relates to the "science" of personal training, was important. The art of personal training
is important too, and that's where personality and passion come in. If you want longevity in this
industry, you must bring the science and art together.

CREATING THE EMPLOYEE HANDBOOK

An employee handbook is a must. You will probably create this as part of your policies &
procedures manual, but you may want to have one as a stand-alone document as well. In the
Appendix you will find a checklist of all the categories normally covered in a handbook. Feel
free to use this as the basis for your own. Just explain your own rules under every category.
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Create disclaimers in the beginning, such as on the cover page. Potential disclaimers are:

“This handbook is only meant to be a guide, and may not cover all policies and procedures.”

“This handbook supercedes all previous publications on the contained subjects and is subject to
change as necessary.”

“This handbook does not constitute an employment contract, neither express nor implies, and
it does not modify the “at will” employee/employer relationship.”

When creating your employee handbook think about what kind of employees you will have and
what type of language is most appropriate for them. The handbook should also serve as a
reference to you and other managers/supervisors when making important decisions. It is
important to keep the handbook as short as possible while also including all relevant
information. A 100 page handbook will probably not be read. Organize your handbook
carefully and make sure to answer all likely questions, even if that requires including a FAQ
section. In addition, make sure to check your state's employment statutes and regulations as
well as federal guidelines. The Small Business Administration (sba.gov) is a good resource for
many issues entrepreneurs and small businesses face. Creating your own handbook will save
you a great deal of money, but you should still have an attorney review it. Of course, you can
also hire an attorney to draft the document for you based on your specifications.

Chapter 15: Designing and Implementing Effective

Programs
With Dr. Evan Osar

There are few specialties within the health care/fitness industry that clients regularly
visit, and even fewer in which they willingly pay out of pocket for services. The fitness
professional is the rare exception to this rule. This is because there are no barriers to entry; the
client doesn’t necessarily require a doctor’s prescription or even a doctor’s go-ahead in order to
see a fitness professional. Clients that are looking to feel better or lose weight, or who have
been instructed by their health care provider to add exercise to their daily activities will often
consult the industry expert on exercise: The personal trainer. Unfortunately for these

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individuals, there is lax or even non-existent training required for a trainer to instruct a client in
exercise on the state level. Further, there is no industry mandated licensing body that regulates
the fitness professional as there is in medicine, pharmacology, chiropractic, or physical therapy.
Therefore, it becomes a buyer beware situation for the individual who needs fitness guidance.

However, given the direct access and relative liberty the fitness professional enjoys,
there is no profession that is in a greater position to create positive change in the general
population. Consider:

● The rising costs of health care

● The ever-expanding number of overweight and obese individuals
● The increasing statistics of orthopedic surgeries
● The rise in use of prescription medications
● The increase in life-style related illnesses such as adult-onset diabetes, heart disease,
and depression

It becomes easy to see how the economy will soon be overwhelmed by this health care
epidemic. The fitness professional can be a powerful ally to the medical, chiropractic, and
rehabilitation fields by providing pre-habilitation, post-rehabilitation, or ongoing management
of client’s health, fitness, and well-being.

While the fitness professional can be instrumental in changing and improving the state
of healthcare in our nation, there is a responsibility that comes with that liberty. It is imperative
that the fitness professional first and foremost becomes an expert in movement science and
the application of this knowledge to his or her individual clients. What does becoming an expert
in movement science and application to exercise mean? It really breaks down into 3 simple
guiding principles:

Since there is no governing body, fitness professionals must hold themselves to a higher
standard and study the fields of anatomy, physiology, biomechanics, kinesiology, posture,
corrective exercise, and general fitness.

Fitness professionals must dedicate themselves to learning everything they can about their
respected niche(s) so they become aware of both the benefits and the contraindications to
working with certain populations, and can tailor the workouts accordingly.

The fitness professional must always be a professional. This includes taking a thorough history,
performing an initial and ongoing assessment, managing the client’s workout program, and
adapting the workout program to marry the client’s wants (goals) with their needs

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(requirements for improved health). Additionally, the fitness professional must be in contact
with other health care professionals in the management of the client’s health care.

This chapter is not meant to give the fitness professional all the ins and outs of program
design, for there are many great resources on this topic. Rather, it will give the fitness
professional a few basic guidelines and outline some of the key principles and concepts not
covered in the other resources. Things such as: What it takes to be the ultimate professional,
the key concepts to becoming an elite professional, and several overlooked principles such as
stabilization and breathing. The goal of this chapter is to serve as a platform on which the
fitness professional can build and develop awareness, skills, and recognize his true role as a
leader. So let’s get down to business!

GUIDELINES FOR EFFECTIVE PROGRAM DESIGN

This section focuses on the fundamentals of effective program design as it relates to

training the general population adult client. While these guidelines will vary slightly for the
fitness professional working with the high-level athletes or similar type clientele, they should be
adapted and adhered to even when training such individuals.

1. The most important aspect of an effective training program is that it should be safe.
Evaluate every exercise for the risk-benefit ratio. Do not ever perform an exercise that poses a
risk to your client. Remember, the ultimate goal of training is to simultaneously enhance
performance and prevent injuries before they occur.

2. The program should make sense. Exercise selection should match the goal and level of
conditioning of your client. Both the rationale for using a particular exercise and the
application of the exercise should be relatively easy to convey to your client and/or your fellow
fitness professional.

3. Simple movement patterns should be mastered prior to progressing on to complex

movement patterns. Too often clients are progressed far too fast, or asked to perform

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exercises far beyond their abilities all in the name of producing the ‘burn,’ working up a good
sweat, or achieving post-workout soreness.

4. Evaluate progress based on the individual’s beginning level of conditioning rather than
focusing on a “norm.” Virtually, every client will improve 100% of the time if they are
evaluated and progressed based upon their individualized needs and goals.

5. Training should always be an up-lifting, empowering experience for the client as well as for
the fitness professional. It is imperative that the fitness professional finds and work with what
Michael Port calls ‘ideal clients.’ Ideal clients are defined as the clients that inspire and motivate
the fitness professional to do their best work. This should be ultimate goal of every fitness
professional whether they work with the general population, pre or post natal, or professional
athlete.

THE 5 MOST COMMON ERRORS IN PROGRAM DESIGN

Being fitness professional requires the ability to disseminate between significant

quantities and conflicting information. Here are several common training and programming
errors present in the industry. This is not an all-inclusive list, but hopefully by keeping these in
mind, the fitness professional can make better informed decisions for their clients.

Error #1. Looking just within the fitness industry for the answers to client’s needs.

It is common to think that other fitness professionals have all the answers for dealing with a
client’s issues. There is no denying that there are many extremely knowledgeable and
experienced fitness professionals which to garner information. However, there is a wealth of
information that can be found in related health fields such as rehabilitation, performance
enhancement, and biomechanics. Therefore, if you train athletes, look at what the
rehabilitation specialists are saying. If you train the general population, check out what the
performance enhancement trainers are saying. Every section of the health and fitness industry
can contribute to the fitness professional’s base of knowledge.

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Conclusion: Fitness professionals must expand their knowledge base in order to consume
information both in their given niche as well as in related areas. Based on this information, they
must adopt a philosophy that best marries the needs with the wants of their clients.

Error #2. Looking only at research to support their ideas.

The importance of research cannot be understated as it validates many of the guidelines that
are adopted by the fitness profession. Additionally, research provides important scientific
justification for a particular approach to training and rationale for modifying long-held ideas or
existing approaches. However, the fitness professional must be able to discern between the
useful information and the information that may not be in their best interest. Research is
carried out in a completely isolated setting, and rarely includes any follow-up or long-term
evaluations based on the given recommendations.

For example, many trainers recommend that their clients squat deeply to increase the
activation of the posterior hip, in particular, the gluteus maximus. In fact, there is research to
support the fact that the deeper the squat technique, the greater the gluteal activation on
EMG. However, delving deeper into this research reveals a much different outcome. It is true
that the more stimulation a muscle receives-- in other words, the further a muscle is
eccentrically lengthened (as in a deep squat)-- the greater the recorded EMG
(electromyography) activity. However, what the research does not address is the client’s
available hip or ankle range of motion.

Consider this: If a client only has 75º of available hip flexion, or has limited ankle dorsiflexion
(each of which is rather common), and they are asked to squat to parallel or below, they have
exhausted their hip and/or range of motion. How are they able to squat to such a low depth?
They have to make up the motion somewhere else - and often the area where they make it up
is in their low back. This will be viewed as a posterior rotation of the pelvis (“the butt tucking
under”) and lumbar flexion. The client can often fake out the trainer by over-extending the
thoracic spine so it looks like they are still in proper alignment.

Conclusion: The fitness professional must be a continual student. They must read the research
completely, analyze it, and take from it the applicable information. Only after testing it
completely, should they adopt the ideas into their programs.

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Error #3. Performing integrated movement patterns prior to evaluating for isolated

weakness.

Most fitness professionals understand that in the presence of an acute injury, the injured
region must be isolated prior to integrating it back into a program of general movement
patterns. However, they often don’t take this into account during general training programs.
This is in part due to the functional training craze that has permeated the industry over the past
decade. The premise of functional training is that if it is not “functional” it is not useful.
Functional is typically defined as being upright, ground-based, and integrates the entire kinetic
chain into the exercises. However, isolated muscle weakness has been discovered using
neurological muscle testing. And these weaknesses do not respond to integrated exercise until
the weakened or inhibited muscles are rehabilitated. A muscle that is weak in isolation will also
be weak in integrated movements. Therefore, weak or inhibited muscles must be isolated and
facilitated prior to integrating them into functional patterns.

Conclusion: Muscles must be isolated and evaluated for neuromuscular integrity (in other
words their response rate, not strength). When they are found to be inhibited, they should be
facilitated prior to performing integrated movement patterns.

Error #4. Training everyday people like athletes.

There are many proponents of the “train Joe or Jane like a professional athlete” school of
training. Too many fitness clubs and boot camps are filled with fitness professionals taking their
clients through workouts that seem better fitted to a professional athlete than a 60-year-old
female looking to get through her day with less pain. The majority of the general population is
not athletes and should not be trained like they are. This does not mean they cannot be trained
intensely; it does mean that each individual must be trained within their own limitations while
keeping needs aligned with their wants. (‘Needs’ are things a client has to possess to perform at
a higher level; improved range of motion, improving muscle imbalances, improving movement
patterns, proper rest and nutrition, etc. while ‘wants’ are their goals: Do they want to look
better, perform at a higher level, be pain free, etc.). This means making sure that if they want to

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train at a high level, their bodies are equipped to do so. It includes evaluating and correcting
muscle imbalances, being conscious of their nutrient intake and sleep habits, as well as helping
them manage their stress levels and identifying significant medical history.

Conclusion: The fitness professional must design programs based upon aligning a client’s needs
with their wants while working within their individual tolerance ranges.

Error #5. Not listening to the client.

This is perhaps the most common, albeit most worrisome error made in the fitness industry.
Too often, the fitness professional (this term used loosely in this example) can be viewed
talking on their cell phones, watching television, or looking out the window when they should
be paying attention to their client. The fitness professional must observe their clients at all
times and become experts at recognizing the “non-verbal” signs of exercise discomfort, such as
grabbing the back or knees directly after an exercise. A client should never be allowed to
perform an exercise that causes joint or serious muscle pain (signifying injury). If they cannot be
quickly cued or coached out of a poor movement pattern or pain, stop the exercise and
perform a quick local range of motion, muscle testing, or other evaluation/correction. If this
fails to resolve the issue, then perform non-irritating movements and perform a more thorough
evaluation at the end of the session or beginning of the next session.

Other non-verbal signs of listening to your client include acutely tuning in during casual
conversation so that you know whether or not the client is over-stressed, has adequately
rested, and/or eaten appropriately. This active listening can also help you better support your
client in achieving their exercise goals.

Conclusion: The fitness professional must always be in tune with their client, listening to both
the client’s verbal and non-verbal communication.

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THE PRINCIPLES OF PROGRAM DESIGN

When designing a comprehensive workout program for the client, the fitness
professional must include the principles of human function as they apply to movement.
Principles are comprehensive and fundamental concepts that apply to every client regardless of
their goals. The three principles that must be taken into consideration when designing a
comprehensive program are:

Respiratory patterns must be normalized.

The client must be able to stabilize and dissociate through the proper areas.

The client must be progressed through functional movement patterns.

Normalize Respiratory Patterns

Breathing is the most fundamental pattern necessary for both survival as well as stabilization of
the trunk and spine. How important is proper respiratory patterns on performance? Physical
medicine specialist Karel Lewit noted that if breathing is not normalized, no other movement
pattern will be normal. The diaphragm, along with the other respiratory muscles is the key to
providing oxygen to and clearing waste products from the body. Along with the transversus
abdominus, pelvic floor, psoas, quadratus lumborum, and multifidus, the diaphragm functions
to stabilize the trunk and spine. Poor respiratory patterns are associated with altered
stabilization patterns and lead to both postural and movement dysfunctions.

Stabilization and Dissociation

Stabilization is the ability to control joint segments while maintaining an optimal axis of rotation
through entire ranges of motion and throughout a variety of movements. The lack of
stabilization is the leading cause of loss of range of motion and will always lead to movement
compensations. This refers to the ability to maintain joint position without losing an optimal axis
of rotation. This can occur with or without motion of the joint segments.

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Centration is a key component of stabilization. Centration is optimal joint alignment or the
position where the most ideal motion occurs. It is the ability to maintain integrity and an
optimal axis of rotation between adjacent joint structures. The easiest way to visualize this is to
image a door hinge. When the two parts of the hinge line up appropriately, the door swings
optimally. When they do not, the door may swing but it is likely to jam, or fall off the hinges
completely. Joints are aligned in a similar fashion. Centration is achieved by a coordinated
interplay between the agonists and antagonists mediated by the central nervous system.
Optimal centration enables optimal kinetic chain function with minimal wear and tear on bony
and soft tissue structures. The lack of proper centration leads to premature wear and tear on
joint as well as soft tissue structures.

While all joint segments require stabilization, several key areas of the kinetic chain
require particular attention to this principle. Interestingly these are also the regions that clients
experience the most pain and dysfunction. These include the:

● Foot
● Knee
● Pelvis and lumbar spine
● Scapula

Dissociation is the ability to move joint segments independent of adjoining segments. This is
exemplified by watching a child’s movements compared to those of an adult. The child tends to
move much more fluidly and uses their entire body while the adult tends to move in “chunks”
or only from the specific joints that have available motion. Proper function requires optimal
centration between the joint structures while maintaining the ability to move these structures
independent of each other.

Just as there are regions that require specific attention to stabilization, there are regions
of the kinetic chain that are better suited for movement. It is interesting to note that these are
the regions that most often become tight and develop limitations in range of motion. These
include:

● Ankle
● Hip

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 ● Thoracic spine
● Glenohumeral joint

Integration

Once the individual can breathe properly, then stabilize and dissociate in the correct
regions, they will be progressed to functional movement patterns. Functional movement
patterns are integrated movements of the kinetic chain (adjoining sections of the
neuromusculoskeletal system). These patterns mimic several developmental and adult
movement strategies. They include but are not limited to squats, lunges, pushing and pulling
patterns as well as rotation patterns. It is imperative that the individual can maintain
diaphragmatic breathing along with proper stabilization and dissociation through these
patterns. It is the ability to integrate these activities that enable the fitness professional to
optimally develop and progress their client toward their functional goals.

STABILIZATION

(foot, pelvis, lumbar spine, scapula)

DISSOCIATION

(ankle, hip, thoracic spine, shoulder)

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INTEGRATION

(functional movement patterns)

Following these principles gives the client the best opportunity for success. Improving
function adheres to the following formula: stabilize the core, achieve positions of optimal
centration, dissociate the extremities, and finally integrate these concepts into functional
movement patterns.

● Stabilize the core

● Achieve positions of optimal centration
● Dissociate the extremities
● Integrate these concepts into functional movement patterns

THE VARIABLES OF PROGRAM DESIGN

A fitness professional has the unique opportunity to work with a wide range of clients with
varying needs, goals, medical history, habits, and occupations. Developing guidelines for each
individual client can be an arduous task given the number of client variables and the amount of
exercise variables that compose a complete cardiovascular and musculoskeletal fitness
program. There are several organizations that present guidelines for establishing safe and
acceptable standards of practice. These include the American Council on Exercise, American
College of Sports Medicine, National Academy of Sports Medicine, and the National Strength
and Conditioning Association.

The American College of Sports Medicine (ACSM) has established the following minimum
exercise recommendations.

Cardiovascular exercise - A minimum of 30 minutes per day, 5 days per week of moderate
intensity cardio exercise. Or 20 minutes per day, 3 days per week of vigorous intensity cardio
exercise.

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Moderate intensity exercise, measured in 10 minute increments, can be accumulated by
activities of daily living and can include activities such as:

Brisk walk or riding a bike to work, Carpentry, gardening, or related intensity daily activities.

Additionally, 60-90 minutes per day is recommended for individuals looking to lose weight or
for additional health benefits.

Strength training - 2 times per week, perform 8-12 repetitions of 8-10 exercises.

There are several variables to be considered when designing a strength training program. These
variables include repetitions, sets, intensity, tempo, and rest. While these can be manipulated
to accomplish a variety of client goals such as improving general fitness, increasing strength,
altering body composition, or improving sports performance, the following guidelines will serve
as a basis for the beginning fitness professional who is getting used to working with a wide
array of clients.

Repetitions

Repetitions are the number of times you repeat an exercise, activity, or movement within a
given set. The general guidelines are 8-12 repetitions per set however this number can vary
greatly given the client’s goal, intensity, sets, duration of the workout, rest, and the tempo of
the exercise.

Sets

The completion of a number of the recommended number of reps per exercise. The following
table summarizes the general recommendations for both reps and sets based on ACSM
guidelines.
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 Desired outcome Reps Number of sets

Maximal strength gains, moderate hypertrophy, 1-8 1-3

neural specificity

Maximal hypertrophy, moderate strength gains, 8-12 1-6

cellular specificity

Maximal strength endurance, minimal hypertrophy, 12-20 1-5

cardiorespiratory benefits

Intensity

Intensity is the percentage of weight an individual can lift in relation to the maximum amount
of weight they can lift. It is based on the percentage of an individual’s 1 repetition max (the
amount of weight they can maximally lift for 1 repetition). The benefit of different intensities
on strength training can be seen in the table below.

Desired outcome Percentage of 1 rep max (RM)

Muscular endurance < 70

Maximum hypertrophy and moderate 70-80

strength

Maximum strength and power 80-100

Tempo

The tempo is the rate or pace at which the exercise is performed. The tempo is
described in terms of the concentric to isometric to the eccentric phases of the exercise. For
example, during a squat exercise utilizing a 2-1-4 tempo, the individual will lower their body in 4
seconds (eccentric phase), pause at the bottom of the movement for one second (isometric),
and rise up to the starting position (concentric phase) in 2 seconds.

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Rest

Rest is defined as the time from the completion of one set to the beginning of another set. The
amount of rest between exercises will be determined by the client’s goals as well as the energy
system used for the specific activity. If anaerobic (without oxygen) systems are the primary
energy system used, such as with powerlifting or plyometrics exercises, generally longer rest
times are required between sets. If higher repetitions and lower intensity is used such as during
aerobic (utilizes oxygen) exercise, for example cardio-weightlifting class or jogging, shorter rest
times will be required. See below for a comparison of the energy systems and required rest
times necessary to replenish ATP stores.

Energy system Primary use in exercise Amount of rest required

ATP-Creatine High-intensity, short duration 2-5 minutes

phosphate (<10 seconds)
System

(anaerobic)

Lactic Acid or High intensity, short duration 30-120 seconds

Glycolytic System (1-3 minutes to fatigue)

(anaerobic)

Oxidative system Low to moderate intensity, Minimal

long duration (>3 minutes)
(aerobic)

Combining Variables

A well thought-out strength training program blends the optimal number of sets and reps with
the appropriate tempos, intensity, and rest in order to achieve the client’s goals. Below are two
examples of a program designed for individual variability. The first is based on a middle aged
client who is just beginning to work out and the second is based upon a client whose main goal
is to increase muscle mass and strength.

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Example 1: Middle aged client just beginning to work out.

Sets Reps Tempo Intensity Rest

1-2 8-12 2-1-4 50-60% 30-90 seconds

Choose 8-10 exercises per workout session and perform the recommended number of sets and
repetitions.

Example 2: Adult client who has been following a regular exercise program and wants to
increase muscle mass and strength.

Sets Reps Tempo Intensity Rest

3-5 8-12 2-1-4 70-80% 30-120 seconds

Choose 8-10 exercises per workout session and perform the recommended number of sets and
repetitions.

Flexibility and Balance

The ACSM recommends stretching exercises to be included in each day of exercise. General
guidelines for improving ease of performing daily activities is holding each stretch 10-30
seconds for 3-4 repetitions each.

Additionally, the ACSM recommends anyone at risk should include balance exercises. These can
include a variety of exercises performed in single leg stance, on labile (unstable) surfaces, or
with external perturbation upon the client’s limbs or body. However it is important for the
fitness professional to recognize and adhere to the proper exercise progressions while taking
client individuality into account when performing balance exercises.

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Assessments

While the main goal of exercise is improved fitness and well-being, injury prevention
must also be a primary focus of any exercise program. Assessments take the guess work out of
developing individualized client programs and, when blended with the client’s health history
and initial intake forms, enable the fitness professional to develop a well-rounded, safe, and
appropriate training program based on the client’s individual goals and needs. One of the
benefits of the one-on-one training system as opposed to group training is that the fitness
professional can conduct a thorough assessment and design a program based entirely upon the
individual client’s needs.

Is your program:

● Well-rounded?
● Safe?
● Appropriate?

It is often useful to schedule a separate day for the initial assessment; however, for an
established client, reassessments can usually be accomplished in the first half of a regular
session.

A thorough assessment is comprised of several key components. The most common things that
need to be assessed and re-evaluated on a regular basis include:

Posture

Range of motion

Functional movement patterns including squats, lunges, rotation patterns, push ups

Breathing

Additional things that can be assessed by the more experienced and trained fitness
professional include:

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Muscle testing

Orthopedic evaluation

Neurological evaluation

Gait evaluation

Once the initial assessment is completed, regular follow-up assessments should be

scheduled on a monthly or quarterly system depending on the client’s goals and needs.

Corrective Exercise

Corrective exercise is exercise that is specifically designed to improve postural faults,

orthopedic dysfunction, muscle imbalances, or poor movement stereotypes. It is based entirely
upon the information that is gathered from the client’s assessment and may or may not be
aligned with their goals of working with a fitness professional. Corrective can and should be
blended into a well-rounded exercise program unless there have been restrictions or limitations
dictated by the client’s medical professional.

Putting it Together

So how does the fitness professional develop a successful program based on this
information? Most clients hire a fitness professional with the goal of losing weight. The success
the fitness professional achieves in the industry is entirely related to their ability to assess the
client and marry their goals with their needs. The following is a common example of a common
scenario that the fitness professional will encounter and a guideline for incorporating the
aforementioned components into a successful program.

Client A comes in to see the fitness professional with the goal of losing 20 pounds in the
next 3 months. She reports she experiences intermittent knee pain and has seen a doctor who
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has cleared her for exercising. She is committed to doing 2 days per week with the fitness
professional and taking their recommendations for exercise on her own.

After reviewing the client’s intake forms, there are several questions that must be
answered by the fitness professional prior to moving on to the assessment.

Are her goals reasonable? For client A, the answer is yes. 1-2 pounds per week of weight loss
are the guidelines for safe weight loss. Therefore in 12 weeks she can expect to safely lose 12-
20 pounds.

Are there issues that need to be addressed that may prohibit her from achieving these goals?
Yes, she has a history of knee pain that may limit the type and intensity of exercise she can
safely perform. Therefore, her program will have to include corrective exercise targeting her
specific problem areas.

Client A is experiencing pain. Has she been cleared to exercise? Yes, however the fitness
professional must have something in writing or speak in person with the medical professional
prior to doing lower body exercise with this client. This is both to protect the fitness
professional from liability as well as to obtain specific recommendations from the medical
professional.

Is the fitness professional qualified to be working with the client? Most fitness professionals
understand how to develop effective weigh loss programs; however, not all of them are
qualified to work with specific orthopedic or muscular dysfunction. The fitness professional
must either obtain the proper training to deal with postural and movement dysfunction, or
refer the client to someone more qualified.

The first session should focus on reviewing the client’s history, obtaining a detailed
history, and performing an assessment. Client goals, the fitness professional’s expectations, and
a plan should also be covered in this initial session. Forty-five minutes to one hour is generally
more than enough time to collect this information and set up the next appointment without
feeling rushed.

With the information gathered from the first session, the second session should start
with a review of the first session, recapping the client’s goals, the fitness professional’s action
plan, and goal of the training program. Assuming an hour training session for Client A, the
session will be structured in the following manner:

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 Time (in minutes) Tasks accomplished in allotted time

0-5 -recap the client’s goals

- review the goals of the training program

-answer any questions

6-15 Corrective exercise – work on any issues that were found during
the assessment; this can include stretching, activation, foam
rolling, breathing, and instruction

16-50 Introduce exercises and training program

51-60 Cool down

Any additional corrections that need to be reinforced

Action steps for client to follow up

Any additional questions or recommendations

Rescheduling

While this template can be adjusted based on clients requiring more or less corrective
exercise, having more or less questions, or some other predetermined program or schedule, it
outlines how to effectively utilize the fitness professional’s time with the client. As the client
becomes more educated, he or she will likely be able to do more of the corrective exercise or
cool down exercises on their own, thus allowing more time for the exercises designed
specifically to accomplish their goals.

Summary

The capacity of the fitness professional to positively affect their clients relies largely
upon his or her ability to assess the clients’ specific needs, wants and goals. The success the
fitness professional achieves is based upon utilizing the most efficient assessments blended
with the best corrective exercise strategies. These are incorporated with optimal training

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strategies that best marries the clients’ goals with their needs. It is the ability to understand the
‘art’ of program design that differentiates a ‘trainer’ from the fitness professional. This will
ultimately be the key factor in the clients’ success in achieving their goals, and it will be the
determining factor in the success of the fitness professional.

Chapter 16: Corporate and Group Fitness

With Greg Justice

With the recent influx of personal trainers entering the corporate fitness market, I’ve been
getting a lot of calls and emails asking how to get started. As Chet Holmes explains in, his
“Ultimate Sales” book, there are seven steps to every sale:

● Establish Rapport
● Qualify the Buyer (Find the Need)
● Build Value
● Create Desire
● Overcome Objections
● Close the Sale
● Follow Up

There’s really no difference between selling personal training and corporate bootcamps. The
hardest part is getting the attention of the client. How do you get their attention in the first
place? It’s all about marketing. You’ve got to be where your potential client lives his or her life.
Whether it’s in the publications they’re reading, the TV show’s they’re watching or the
restaurants they’re eating, you’ve got to have a presence.

Once you have their attention, you’ve begun the process of Establishing Rapport.

Recently, while doing some market research, one of my long time clients said to me “If I didn’t
know you, I wouldn’t have anything to do with your program.” Harsh words? No, just the
reality of today’s fast paced; get it done yesterday lifestyle. The truth of the matter is that it
was the ultimate compliment. I have worked with his family for more than 20 years and have
developed an incredible friendship and business relationship that benefits both parties.

Because of the relationship I have developed with him and his family, I was able to secure a
corporate contract that has allowed me to expand my business to different parts of the
country. By the end of next year we may have the opportunity to grow with them
internationally.

The key is that I already had his attention when I approached his company about my corporate
bootcamp program. Remember step one of the seven steps of sales, Establish Rapport. All of

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my clients are my friends, and each of them is a potential source of added business from
referrals in my personal training and corporate bootcamp businesses.

If you are a personal trainer trying to break into the corporate fitness market, you’ve already
got a great head start, your current client base. Use what no one else, except you…your list.
That’s right; leverage each and every one of your clients. All of your clients or their spouses
work, right? You’ve got a good relationship with them, don’t you? The social proof is already
there. Your program works, why not share it with others.

The research is overwhelming when it comes to workplace wellness programs lowering health
care costs for businesses so, steps two, three, and four of the sales process should fall right into
place.

Step number five can be a little trickier. How do you overcome objections? Many people hate
objections. They feel a tingle up their spine as they realize the client is about to say, “no.”

For one thing, you should take every “no” as a “not right now.” In fact, one sales manager says
that an objection is simply a sign of interest! He feels great about objections, because he
knows that all he has to do is find a solution to the objection and he’s got a sale.

Let me give you one example. When I first proposed our bootcamp program to a corporate
client, I was told that too many of their employees traveled and wouldn’t benefit from our
workouts. Since my personal training business had an online component, I suggested that we
add it to the company’s program. That way, they could take their workouts and meal plan
anywhere they traveled. Problem solved, objection overcome, contract signed.

So, what do you do when you’ve finished the pitch and your client says, “I’ll think about it”?

The first thing to do, you won’t believe this but I’m right—is be silent. Hold your silence and
count to ten. Let them think. For one thing, you don’t know whether they are thinking about
whether to sign, whether they have the money in the bank right now, or whether they like
what they just heard. Silence gives you a chance to avoid being defensive, and it gives the client
time to think—right then.

When the client comes out with an objections, don’t be too quick to respond. Instead, allow
yourself to really focus on what they are saying. Ask questions: “What do you mean when you
say _____?” “Can you explain more to me?”

People hate silence, so usually the client begins to think out loud. Great! Now you can take the
next step – align yourself with their emotions. Use words like feel, felt, understand: “I
understand how you feel. Many of my clients have felt the same way. But when they realized
how great an impact the Quick-Start would have on their lives, they were eager to sign up.”

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If there isn’t anything that needs explained, simply repeat the objection back to the client,
slowly and word-for-word:

Fitness Professional: “The reason you are concerned about the higher price is because you want
to justify spending the money for a program you’ve already participated in for a year. So really,
the issue is not so much the money, but you have hesitations as to the true benefits of our new
program? Is that right?”

Prospect: “Yes, that is what I’m saying. Could you help me explain to my husband how this
Supplement Program will help me?”

There’s the real issue. The prospect does not want a lower price, and does not really want to
walk away from the deal. No matter how much talking you might have done at the initial
objection, it would not have been enough. This prospect’s issue was really a lack of
understanding about the benefits of the program. She needed enough information to take back
to the husband and convince him of its worth.

Perhaps the second most important step in the sales process is the Follow Up. That’s right, it’s
not finished after you close the sale. Did you know that it costs six times more to get a new
client than to sell something additional to a current client? If the hardest thing we do is to get
the attention of a new client, doesn’t it make sense to make a special effort to keep your
current clients happy?

There are several things you can do, as part of your follow up, such as sending a monthly
newsletter or greeting cards, holding client appreciation events or giving them small gifts that
are relevant to your business. These are very important tactics but, more importantly, there
has to be an open line of communication. The decision makers have to be comfortable enough
with you to tell you when something’s wrong. Apathy is your worst enemy.

The best case scenario would be to have the decision makers participating in your corporate
bootcamps. That way they can see exactly what’s going on with your program. There’s an
energy that’s hard to explain with these corporate bootcamps. The participants in these
programs bond with each other. It’s almost like a fraternity. If the decision maker doesn’t
participate, you must make a special effort to keep the lines of communications open. I always
tell the participants to share their experience with the management of the corporation.
Nothing sells your product like enthusiastic campers. Recently, one of my bootcamp instructors
told me that one of his campers came to him after the class and said “Next week I’m on

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vacation, but I’m coming in so I don’t have to miss my workouts.” Now that’s the kind of
advocate you want spreading the word about your business.

The key components of a successful corporate wellness program include exercise and nutrition.
Without these two elements, all the other things companies do in the name of corporate
wellness will fall short in ROI (return on investment). Exercise and nutrition are the two
elements that are the catalysts for a body to regain and retain health and wellness.

We have found workplace exercise programs to have the greatest attendance and adherence
rates simply because they fit more into the employees’ time and don’t take much planning or
motivation to get there. The workplace workout cannot interfere with the normal company
routine, nor can the program add additional paperwork to the administration.

With the rise in sedentary occupations, the increasing epidemic of obesity in our country, and
the skyrocketing costs of health care, firm action and steps to accountability must be taken.

Workplace exercise programs are the last frontier of hope and lasting change for many
companies and individuals concerned about the alarming trend of chronic illness and
preventable death in this country. As the government, insurance agencies, health care
agencies, and uninformed business owners continue to cater to disease management instead of
proactive healing and prevention programs, statistics and human bodies will continue to
deteriorate.

Corporate Fitness Programs that implement an exercise and nutrition component address the
exact need the human body has for achieving and maintaining health and wellness. This is the
only truly effective measure from which all other change can spring. Without regular exercise
and proper nutrition the body will slowly deteriorate into a state of disease. Trainers have a big
market to tap in the area of Corporate Fitness. We’ve built systems to address every area of
corporate wellness that we provide to our clients, so we can concentrate on what we do best –
exercising the body for optimal health.

Appendix A: Useful Forms and Contracts

SAMPLE INITIAL CONSULTATION OUTLINE
Use this procedure in order to conduct the initial client assessment. Ask the client to complete
the Sample Health History Questionnaire (below) and go over the entire health history with
him/her.

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1. Determine whether the client is a good fit with your own style and personality.

2. Determine client goals:

Long-term ___________________________________________

_____________________________________________________

Short term:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_______________________________________________________________________

3. Obtain a signed client-trainer agreement (below)

4. Go over health history form. Note any health issues that might adversely affect the fitness
goals:
______________________________________________________________________________
______________________________________________________________________________
___________________________

5. Inform the client of the issues described in section 4.

6. Check health history, waiver, and fitness agreement for signatures.

SAMPLE HEALTH HISTORY QUESTIONNAIRE

Name:______________________________________________

Address:____________________________________________

Phone (home): _____________ Phone (work):______________

Phone (cell): ________________

Date of Birth: _______________ Occupation: _______________

Weight: _____________________ Height: _________________

BMI: ________________________

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Blood Pressure: ______________________ Pulse: ___________

Emergency Contact: Name ______________________________

Phone number: ________________________________________

Relationship: ___________________________________________

Family Physician: _______________________________________

City: _________________________________________________

Phone number: ________________________________________

Please check the following statements if they apply to you:

I am a male over age 45 _______

I am a female over age 55 ______

I exercise less than 1.5 hours per week______

My BMI is higher than 30 ______

I smoke _____

I quit smoking less than 6 months ago________

I have high blood pressure _______

I take blood pressure medication _______

I have high cholesterol _______

My father or brother had a heart attack or heart surgery prior to age 55 _______

My mother or sister had a heart attack or heart surgery prior to age 65 ___

I exercise intensively at my job or for recreation ____

I exercise moderately at my job or for recreation ____

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I exercise little or none at my job or for recreation ____

Please list reasons why you cannot exercise

regularly:___________________________________________

What exercises do you enjoy, or have you enjoyed in the

past?_________________________________________________________________________
______________________________________________________________________________
___________________________

Medical Conditions

Please check if you have any of the following:

____ Anemia _____ Arthritis ____ Asthma

____ Cholesterol ____ Diabetes ____Epilepsy

____ Heart Condition ____ Hernia ____Obesity

____ Pregnancy, or planning pregnancy

____ Thyroid problems

____ Heart attack

____ Ulcer

____ Other (describe):

______________________________________________________________________________
____________________________________________

Allergies

Please list any known allergies:

______________________________________________________________________________
____________________________________________

None______

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Medications

Are you currently taking any medications? ____ Yes ____No

If yes, please list:

Medication name: ___________ Condition: _____________ Prescribing Physician:

______________

Medication name: ___________ Condition: _____________ Prescribing Physician:

______________

Medication name: ___________ Condition: _____________ Prescribing Physician:

______________

Injuries

Please mark any of the following areas in which you have pain or have experienced previous
injuries:

____Neck ____ Shoulder (indicate right or left)_______

____ Back (upper or lower) ___________

____Elbow (indicate right or left)_______

____Wrist (indicate right or left)_______

____ Hip (indicate right or left)_______

____ Knee (indicate right or left)_______

____Ankle (indicate right or left)_______

Please describe injuries:

______________________________________________________________________________
______________________________________________________________________________
___________________________

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Lifestyle

Please write A for always, S for sometimes, or N for never.

I am a happy person

I live a stress-free life

I am physically active 3 times per week

I am very motivated to exercise

I get more than seven hours of sleep most nights

H have annual health checkups

I follow a strict diet

I eat 3-4 servings of fruit each day

I eat 2-3 servings of meat or nuts daily

I eat 6-10 servings of grains or cereal daily

Comments:
______________________________________________________________________________
___________________________________________

Personal Trainer

I have asked for and understand all information required for this health questionnaire.

Signed: __________________________________________________

Date: ____________________________________________________

Client

I have fully disclosed all requested information in an honest manner.

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Signed: ___________________________________________________

Date: _____________________________________________________

SAMPLE MEDICAL CLEARANCE FORM

To be signed by client’s current physician.

Your patient, (name)______________________ , intends to participate in training with Fitness

Consulting Group, LLC. This training will require a medical clearance prior to client participation.
You agreement to a medical clearance indicates that your patient does not exhibit any
potentially life-threatening illnesses or conditions that might prohibit him (her) from
participation in a fitness training program.

By signing this form you agree that you have performed the following tests on this patient:

Health risk appraisal

Heart rate, blood pressure, and body fat assessments

Cardio respiratory assessment

Others as necessary: flexibility, muscle strength, endurance tests.

Is this patient over the age of 40? _______Yes ________ No

If over 40, does the risk factor assessment indicate that the patient needs a diagnostic exercise
test prior to beginning this program? ______Yes ____ No

List all limitations, restrictions, medications, and other concerns.

______________________________________________________________________________
______________________________________________________________________________
___________________________

Patient (print name) ______________ is physically able to participate in a vigorous exercise

program.

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Signature: _____________________________________ M.D.

Print name: ____________________________________

Address: __________________________ City: ___________________

State _____________ Zip Code ________ PHONE: ________________

Thank you for your help in this matter.

Pat Rigsby

***************

***************,** *****

SAMPLE CONFIDENTIALITY AGREEMENT

This Agreement is entered into as of ___________, 20___ between [Company Name],
[Company], and _______________ (“Employee”).

INTRODUCTION

Employee is employed or is contemplating employment with [Company]. In connection with

this employment, Employee has had, or will have, access to certain confidential information
and trade secrets of [Company], and may in the course of employment with [Company]
participate in discovering or conceiving an invention.

As a condition of Employee’s employment or continued employment, and effective as of the date that Employee’s employment first
commenced, Employee agrees as follows:

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AGREEMENT

Definitions

As used in this Agreement, the following terms shall have the following meanings:

“Agreement” means this Agreement and any attachments hereto, and any modifications that
are made to this Agreement in accordance with the terms hereof;

“[Company]” means [Company] and [Company’s] parent company and other subsidiaries or
affiliates thereof.

“Employee’s employment” means Employee’s employment with [Company] or any other

[Company] company or entity.

“Invention” means any invention, discovery, know-how, idea, trade secret, technique, formula,
machine, method, process, use, apparatus, product, device, composition, code, design,
program, confidential information, proprietary information, or configuration of any kind, which
is discovered, conceived, developed, made or produced by Employee (alone or in conjunction
with others) during the duration of Employee’s employment, and which:

Relates at the time of conception or reduction to practice of the Invention, in any manner, to
the business of [Company], including actual or demonstrably anticipated research or
development; or

Results from or is suggested by work performed by Employee for or on behalf of [Company]; or

Results, in whole or in part, from the use of equipment, supplies, facilities, information, time or
resources of [Company].
The term “Invention” shall also include any improvements to an Invention. The term “Invention” shall not be limited to the definition of a
patentable or copyrightable invention as contained in the United States patent or copyright laws.

“Information” means (1) all information encompassed in all Inventions, and (2) all forms and
types of financial, business, scientific, technical, economic, sales, marketing or engineering
information of [Company] that is not generally available to the public at large with the
261
knowledge and consent of [Company], regardless of whether such information would be
enforceable as a trade secret or the copying of which would violate copyright or patent laws or
be enjoined or restrained by a court as constituting unfair competition. Information shall be
interpreted broadly, and includes, without limitations, strategic and business plans, financial
information, sales information, projections, pricing information, proposals, client lists, client
lists, prospect lists, research, experiments, records, reports, recipes, formulas,
recommendation, manuals, policies, findings, evaluations, forms, computer algorithms, designs,
drawings, specifications, evaluations, computer programs, prototypes, methods, processes,
procedures, research and development efforts, business opportunities, software or other
confidential information or proprietary property, and whether stored, complied, or
memorialized physically, electronically, photographically, or in writing.

Inventions

Disclosure. Employee shall disclose promptly to [Company] each Invention, whether or not
reduced to practice, which is conceived or learned by Employee (either alone or jointly with
others) during the term of Employee’s employment. Further, Employee shall disclose in
confidence to [Company] all patent applications filed by or on behalf of Employee during the
term of Employee’s employment and for a period of three years thereafter.

[Company] Property; Assignment. Employee acknowledges and agrees that all Inventions
made, written, discussed, developed, secured, obtained or learned by Employee during the
term of the relationship and the 60-day period immediately following termination of the
relationship shall be the sole property of [Company], including without limitation all domestic
and foreign patent rights, rights of registration or other protection under the copyright laws, or
other rights, pertaining to the Inventions. Employee further agrees that all services, products
and Inventions that directly or indirectly result from engagement with [Company] shall be
deemed “works for hire” as that term is defined in Title 17 of the United States Codes and
accordingly all rights associated therewith shall vest in [Company]. Notwithstanding the
foregoing, Employee hereby assigns all Employee’s right, title and interest in any such services,
products and Inventions to [Company], in the event any such services, products and Inventions
shall be determined not to constitute “works for hire.”

262
Exclusion Notice. Employee is not required to assign an idea or invention for which all of the
following are applicable:

No equipment, supplies, facility, or trade secret information of [Company] were used and the
invention or idea was developed entirely on Employee’s own time, and

The invention or idea does not relate to the business of [Company], and

The invention or idea does not relate to [Company]’s actual or demonstrably anticipated
research or development, and

The invention or idea does not result from any work performed by Employee for [Company].

Employee has set forth on Exhibit “A” hereto a complete list of all inventions, if any, patented
or unpatented, copyrighted or not copyrighted, including numbers of all patents and patent
applications, and applications for copyright protection and registration, and a brief description
of all unpatented inventions, which Employee has made prior to Employee’s employment and
which are to be excluded from the scope of this Agreement. Any patentable improvements
made on the listed inventions after the commencement of Employee’s employment shall be
within the scope of this Agreement. In the event Employee does not list any such Inventions on
Exhibit A or fails to attach an Exhibit A, there shall conclusively be deemed to be no inventions
to be excluded from the scope of this Agreement.

As used in this Section 2.3, “invention” shall mean:

Time of Invention; Presumption. For the purpose of this Agreement, an Invention is deemed to
have been made during the term of Employee’s employment if the Invention was conceived or
first actually reduced to practice during the term of such employment. Employee agrees that
any disclosures of an invention or any patent application made within one year after
termination of Employee’s employment shall be presumed to relate to an Invention which was
made during the term of Employee’s employment unless Employee provides compelling
evidence to the contrary.

263
Patents and Copyrights; Attorney-in-Fact. Employee hereby irrevocably appoints [Company],
and its duly authorized officers and agents, as Employee’s agent and attorney-in-fact to act for
Employee in filing all patent applications, applications for copyright protection and registration
amendments, renewals, and all other appropriate documents in any way related to the
Inventions. In addition, Employee agrees to assist [Company] in any way [Company] deems
necessary or appropriate (at [Company’s] expense) from time to time to apply for, obtain and
enforce patents on , and to apply for, obtain and enforce copyright protection and registration
of, the Inventions in any and all countries. To that end, Employee shall (at [Company’s]
request) without limitation, testify in any suit or other proceeding involving any of the
Inventions, execute all documents which [Company] reasonably determines to be necessary or
convenient for use in applying for and obtaining patents or copyright protection and
registration thereon and enforcing same, and execute all necessary assignments thereof to
[Company] or parties designated by it. Employee’s obligation to assist [Company] in obtaining
and enforcing patents or copyright protection and registration for the Inventions shall continue
beyond the termination of Employee’s employment. During Employee’s employment,
[Company] shall not be required to provide Employee any additional compensation for services
provided for in this section. [Company’s] obligation to compensate Employee following
termination of Employee’s employment for Employee’s compliance with this section shall be
limited to a reasonable rate per hour (not to exceed the equivalent of Employee’s hourly rate,
computed on the basis of Employee’s base salary as of the date of termination) for time
actually spent by Employee on such assistance at [Company’s] written request.

Use of [Company] Information

Acknowledgment of Proprietary Interest in Information. Employee acknowledges and agrees

that any and all Information, whether developed by Employee alone or in conjunction with
others, or by other [Company] employees, or otherwise acquired by [Company], is the sole and
exclusive property of [Company]. Employee hereby disclaims any proprietary interest in any
such Information.

Confidentiality Obligation. Employee acknowledges and agrees that [Company] is entitled to

prevent the disclosure of Information. Accordingly, in consideration of [Company]’s agreement
to employ Employee and pay Employee compensation for services rendered, Employee agrees
at all times during employment with [Company] and thereafter to hold in strictest confidence,
and not to disclose or allow to be disclosed to any person, firm, or corporation, other than to
264
persons engaged by [Company] to further the business of [Company], and in any case, not to
disclose, use, copy, publish, summarize, or remove from the premises of [Company] any
Information, including Information developed by Employee except (a) as necessary to carry out
my assigned responsibilities as an [Company] employee, and (b) after termination of
employment, only as specifically authorized in writing by an officer of [Company].

Return of Materials at Termination. In the event of the termination, for any reason, of
Employee’s employment, Employee will promptly deliver to [Company] all documents, data,
and other information pertaining to Inventions and Information; and Employee shall not take
any documents, or other information, or any reproduction or excerpt thereof, containing or
pertaining to any Information or Inventions.

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Confidential Information of Others

Employee acknowledges the existence of the Economic Espionage Act, 18 U.S.C. § 1831 et seq.
(“EEA”), which prohibits Employee from misappropriating trade secrets of others for the
economic benefit of [Company]. Employee agrees, as a condition of employment with
[Company], to comply with the provisions of the EEA. If Employee possesses any confidential,
trade secret or proprietary information or documents belonging to others, Employee will not
use, disclose to [Company] or induce [Company] to use, any such information or documents
during employment by [Company], and will not bring onto [Company] premises any
unpublished document or any other property belonging to any former employer or third parties
without the written consent of the affected party. Employee represents and warrants that
employment by [Company] will not require Employee to violate any obligation to or confidence
with any other party, and that Employee has not as of the date of signing this Agreement,
provided to any employee or agent of [Company] any trade secret, confidential or proprietary
information of others.

Business Opportunities

During the terms of this Agreement, if Employee becomes aware of any project, investment, venture, business or other opportunity (any of the
preceding, collectively referred to as an “Opportunity”) that is similar to, competitive with, related to, or in the same field as Employer, or any
project, investment, venture, or business of Employer, then Employee shall so notify Employer immediately in writing of such Opportunity and
shall use Employee's good-faith efforts to cause Employer to have the opportunity to explore, invest in, participate in, or otherwise become
affiliated with such Opportunity.

Non-Filing

Employee specifically agrees that Employer’s rights granted hereunder shall include the right not to file for copyrights or domestic or foreign
patents when such is considered by Employer in its sole discretion appropriate for the business objectives of Employer.

Non-Competition

Employee agrees that, during employment with [Company], Employee will not directly or
indirectly compete with [Company] in any way, and will not act as an officer, director,
266
employee, consultant, lender, or agent of any entity which is engaged in any business of the
same nature as, or in competition with, the business in which [Company] is now engaged or in
which [Company] becomes engaged during the term of Employee’s employment for a period of
one year after the termination of this agreement and for any reason within 10 miles of any
business owned by [Company]. Competitive business shall mean any business which is the
same or similar to the business conducted by [Company] including, but not limited to, any
health or fitness club, gymnasium, aerobics center or any health or fitness consulting business,
excepting only the location of [Company] at [Address]. Any breach of this covenant of non-
competition will cause [Company] and/or it’s affiliates to suffer irreparable harm, and
Employee grants [Company] will seek punitive damages deemed appropriate. Employee
further agrees to perform for [Company] such duties as it may designate from time to time, and
will devote his or her full time and best efforts to the business of [Company].

Non-Solicitation

Employee agrees that during Employee’s employment with [Company] and for [_______ (_)
years] following the termination, for any reason, of employment, Employee shall not, either on
Employee’s behalf or on behalf of any other person or entity, directly or indirectly (i) hire, solicit
or encourage or induce any employees, directors, consultants, contractors or subcontracts to
leave the employ of [Company], or (ii) solicit, induce, encourage or entice away or divert any
person or entity which is then a client of [Company] and which was a client of [Company]
during the time of Employee’s employment.

Employment At-Will

Nothing in this Agreement is intended to alter Employee’s status as an at-will employee.

Accordingly, notwithstanding any other term of this Agreement, either Employee or [Company]
may terminate Employee’s employment for any reason, at any time, with or without notice.
Similarly, Employee may terminate their employment at any time, for any reason and without
notice. The at-will nature of Employee’s employment can be changed only by a written
agreement signed by an officer of [Company].

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General Provisions

Entire Agreement. This Agreement represents the entire agreement between Employee and
[Company] with respect to the subject matter hereof, superseding all previous oral or written
communications, representations, understandings or agreements relating to this subject. This
Agreement may be changed only by a written agreement signed by an officer of [Company].

Successors and Assigns. The rights and remedies of [Company] under this Agreement shall
inure to the benefit of the successors, assigns and transferees of [Company]. Employee shall
have no right to assign, transfer or otherwise dispose of his right, title and interest in and to any
part of this Agreement or to assign the burdens hereof, without the prior written consent of
[Company].

Remedies Upon Breach. Employee acknowledges and agrees that damages will not be an
adequate remedy in the event of a breach of any of Employees obligations under this
Agreement. Employee therefore agrees that [Company] shall be entitled (without limitation of
any other rights or remedies otherwise available to it and without the necessity of posting a
bond) to obtain an injunction from any court of competent jurisdiction prohibiting the
continuance or recurrence of any breach of this Agreement. The failure of [Company] to
promptly institute legal action upon any breach of this Agreement shall not constitute a waiver
of that or any other breach hereof. This provision supersedes and controls over any language
set forth in an arbitration agreement with regards to the subject matter of this agreement only.

Attorneys’ Fees. In the event of any litigation concerning any controversy, claim or dispute
between the parties hereto, arising out of or relating to this Agreement or the breach hereof, or
the interpretation hereof, the prevailing party shall be entitled to recover from the losing party
reasonable expenses, attorneys’ fees, and costs incurred therein or in the enforcement or
collection of any judgment or award rendered therein. The “prevailing party” means the party
determined by the court to have prevailed, even if such party did not prevail in all matters, not
necessarily the one in whose favor a judgment is rendered. Further, in the event of any default
by a party under this Agreement, such defaulting party shall pay all the expenses and attorneys’
fees incurred by the other party in connection with such default, whether or not any litigation is
commenced.

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Severability. The illegality, unenforceability or invalidity of any one or more covenants, phrases,
clauses, sentences or paragraphs of this Agreement, as determined by a court of competent
jurisdiction, shall not affect the remaining portions of this Agreement, or any part thereof; and
in case of any such illegality, unenforceability or invalidity, this Agreement shall be construed as
if such illegal, unenforceable or invalid covenants, phrases, clauses, sentences or paragraphs,
had not been inserted.

Survivability. The terms and conditions of this Agreement shall survive the termination of
Employee’s Employment.

Waiver. The waiver by [Company] of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of the same or any other
provision hereof.

Applicable Law. The laws of the State of Kentucky shall govern this Agreement. Employee
hereby submits to the jurisdiction and venue of the courts of the State of [State], County of
[County], for purposes of any such action, and expressly waives any objections to jurisdiction or
venue in [County], [State]. Employee further agrees that service upon Employee in any such
action or proceeding may be made by first class mail, certified or registered, to Employee’s
address as last appearing on the records of [Company].

Counterparts. This Agreement may be executed in counterparts, each of which shall be

deemed an original and all of which together shall constitute a single integrated document.

Drafting Ambiguities. Each party to this Agreement has reviewed and had the opportunity to
revise this Agreement. Each party to this Agreement has had the opportunity to have legal
counsel review and revise this Agreement. The rule of construction that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of this
Agreement or of any amendments or exhibits to this Agreement.

269
Notices. Any notices provided by one party to the other under the terms of this Agreement
shall be hand-delivered or mailed by certified mail to the following, or to such other recipients
as that party may designate, in writing:

To [Company]: To Employee:

IN WITNESS WHEREOF, the parties hereto duly executed this Agreement as of the date first
above written.

[COMPANY]: EMPLOYEE:

By:

(Printed Name) (Printed Name)

Title:

Date Date
: :

270
Receipt of Copy. Employee hereby acknowledges that he/she has received a signed copy of this
Agreement.

271
EXHIBIT A

(Excluded Inventions, Improvements, and

Original Works of Authorship)

(Section 2.5)

TITLE DATE IDENTIFYING NUMBER

Or Brief Description

272
SAMPLE INDEPENDENT CONTRACTOR AGREEMENT

THIS AGREEMENT FOR SERVICE (this "Agreement") dated this 26th day of February, 2008

BETWEEN

273
Fitness Business of 121 My Street, Anytown, Kentucky, __________________________
(the "Client")

OF THE FIRST PART

- AND -

Sue Instructor of 455 MyStreet, Any Town, Kentucky, __________________________

(the "Service Provider")

OF THE SECOND PART

BACKGROUND:

The Client is of the opinion that the Service Provider has the necessary qualifications,
experience and abilities to provide services to the Client.

The Service Provider is agreeable to providing such services to the Client on the terms and
conditions set out in this Agreement.

IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations
set forth in this Agreement, the receipt and sufficiency of which consideration is hereby
acknowledged, the parties to this Agreement agree as follows:

Duties, Term, and Compensation. The Contractor’s duties, term of engagement, compensation
and provisions for payment thereof shall be as set forth in the estimate previously provided to
the Company by the Contractor and which is attached as Exhibit A, which may be amended in
writing from time to time, or supplemented with subsequent estimates for services to be
rendered by the Contractor and agreed to by the Company, and which collectively are hereby
incorporated by reference.

Expenses. During the term of this Agreement, the Contractor shall bill and the Company shall
reimburse [him or her] for all reasonable and approved out-of-pocket expenses which are
incurred in connection with the performance of the duties hereunder. Notwithstanding the
foregoing, expenses for the time spent by Contractor in traveling to and from Company facilities
shall not be reimbursable.

274
Written Reports. The Company may request that project plans, progress reports and a final
results report be provided by Contractor on a monthly basis. A final results report shall be due
at the conclusion of the project and shall be submitted to the Company in a confidential written
report at such time. The results report shall be in such form and setting forth such information
and data as is reasonably requested by the Company.

Confidentiality. The Contractor acknowledges that during the engagement [he or she] will have
access to and become acquainted with various trade secrets, inventions, innovations,
processes, information, records and specifications owned or licensed by the Company and/or
used by the Company in connection with the operation of its business including, without
limitation, the Company’s business and product processes, methods, client lists, accounts and
procedures. The Contractor agrees that [he or she] will not disclose any of the aforesaid,
directly or indirectly, or use any of them in any manner, either during the term of this
Agreement or at any time thereafter, except as required in the course of this engagement with
the Company. All files, records, documents, blueprints, specifications, information, letters,
notes, media lists, original artwork/creative, notebooks, and similar items relating to the
business of the Company, whether prepared by the Contractor or otherwise coming into [his or
her] possession, shall remain the exclusive property of the Company. The Contractor shall not
retain any copies of the foregoing without the Company’s prior written permission. Upon the
expiration or earlier termination of this Agreement, or whenever requested by the Company,
the Contractor shall immediately deliver to the Company all such files, records, documents,
specifications, information, and other items in [his or her] possession or under [his or her]
control. The Contractor further agrees that [he or she] will not disclose [his or her] retention as
an independent contractor or the terms of this Agreement to any person without the prior
written consent of the Company and shall at all times preserve the confidential nature of [his or
her] relationship to the Company and of the services hereunder.

Right to Injunction. The parties hereto acknowledge that the services to be rendered by the
Contractor under this Agreement and the rights and privileges granted to the Company under
the Agreement are of a special, unique, unusual, and extraordinary character which gives them
a peculiar value, the loss of which cannot be reasonably or adequately compensated by
damages in any action at law, and the breach by the Contractor of any of the provisions of this
Agreement will cause the Company irreparable injury and damage. The Contractor expressly
agrees that the Company shall be entitled to injunctive and other equitable relief in the event
of, or to prevent, a breach of any provision of this Agreement by the Contractor. Resort to such
equitable relief, however, shall not be construed to be a waiver of any other rights or remedies
that the Company may have for damages or otherwise. The various rights and remedies of the
Company under this Agreement or otherwise shall be construed to be cumulative, and none of

275
them shall be exclusive of any other or of any right or remedy allowed by law.

Merger. This Agreement shall not be terminated by the merger or consolidation of the
Company into or with any other entity.

Termination. The Company may terminate this Agreement at any time by 10 working days’
written notice to the Contractor. In addition, if the Contractor is convicted of any crime or
offense, fails or refuses to comply with the written policies or reasonable directive of the
Company, is guilty of serious misconduct in connection with performance hereunder, or
materially breaches provisions of this Agreement, the Company at any time may terminate the
engagement of the Contractor immediately and without prior written notice to the Contractor.

Independent Contractor. This Agreement shall not render the Contractor an employee,
partner, agent of, or joint venturer with the Company for any purpose. The Contractor is and
will remain an independent contractor in [his or her] relationship to the Company. The
Company shall not be responsible for withholding taxes with respect to the Contractor’s
compensation hereunder. The Contractor shall have no claim against the Company hereunder
or otherwise for vacation pay, sick leave, retirement benefits, social security, worker’s
compensation, health or disability benefits, unemployment insurance benefits, or employee
benefits of any kind.

Insurance. The Contractor will carry liability insurance (including malpractice insurance, if
warranted) relative to any service that [he or she] performs for the Company.

Successors and Assigns. All of the provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective heirs, if any, successors, and assigns.

Choice of Law. The laws of the state of [______________] shall govern the validity of this
Agreement, the construction of its terms and the interpretation of the rights and duties of the
parties hereto.

Arbitration. Any controversies arising out of the terms of this Agreement or its interpretation
shall be settled in [____________________] in accordance with the rules of the American
Arbitration Association, and the judgment upon award may be entered in any court having
jurisdiction thereof.

Headings. Section headings are not to be considered a part of this Agreement and are not
intended to be a full and accurate description of the contents hereof.

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Waiver. Waiver by one party hereto of breach of any provision of this Agreement by the other
shall not operate or be construed as a continuing waiver.

Assignment. The Contractor shall not assign any of [his or her] rights under this Agreement, or
delegate the performance of any of [his or her] duties hereunder, without the prior written
consent of the Company.

Notices. Any and all notices, demands, or other communications required or desired to be
given hereunder by any party shall be in writing and shall be validly given or made to another
party if personally served, or if deposited in the United States mail, certified or registered,
postage prepaid, return receipt requested. If such notice or demand is served personally, notice
shall be deemed constructively made at the time of such personal service. If such notice,
demand or other communication is given by mail, such notice shall be conclusively deemed
given five days after deposit thereof in the United States mail addressed to the party to whom
such notice, demand or other communication is to be given as follows:

The Contractor:
[name]
[street address]
[city, state, zip]

The Company:
[name]
[street address]
[city, state, zip]

Any party hereto may change its address for purposes of this paragraph by written notice given
in the manner provided above.

Modification or Amendment. No amendment, change or modification of this Agreement shall

be valid unless in writing signed by the parties hereto.

Entire Understanding. This document and any exhibit attached constitute the entire
understanding and agreement of the parties, and any and all prior agreements, understandings,
and representations are hereby terminated and canceled in their entirety and are of no further
force and effect.

Unenforceability of Provisions. If any provision of this Agreement, or any portion thereof, is

277
held to be invalid and unenforceable, then the remainder of this Agreement shall nevertheless
remain in full force and effect.

IN WITNESS WHEREOF the undersigned have executed this Agreement as of the day and year
first written above. The parties hereto agree that facsimile signatures shall be as effective as if
originals.

[Company name]

By: ____________________
Its: ____________________ [title or position]

[Contractor’s name]

By: ____________________
Its: ____________________ [title or position]

SCHEDULE A

DUTIES, TERM, AND COMPENSATION

DUTIES: The Contractor will [describe here the work or service to be performed]. [He or she]
will report directly to [name] and to any other party designated by [name] in connection with
the performance of the duties under this Agreement and shall fulfill any other duties
reasonably requested by the Company and agreed to by the Contractor.

TERM: This engagement shall commence upon execution of this Agreement and shall continue
in full force and effect through [date] or earlier upon completion of the Contractor’s duties
under this Agreement. The Agreement may only be extended thereafter by mutual agreement,
unless terminated earlier by operation of and in accordance with this Agreement.

COMPENSATION: (Choose A or B)
A. As full compensation for the services rendered pursuant to this Agreement, the Company
shall pay the Contractor at the hourly rate of ________[dollar amount] per hour, with total
payment not to exceed __________[dollar amount] without prior written approval by an
authorized representative of the Company. Such compensation shall be payable within 30 days
of receipt of Contractor’s monthly invoice for services rendered supported by reasonable

278
documentation.

B. As full compensation for the services rendered pursuant to this Agreement, the Company
shall pay the Contractor the sum of ____________________ [dollar amount], to be paid
_____________________________________ [time and conditions of payment.]

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Need sample sales scripts

SAMPLE PAR-Q FORM

My Club

clientship application

Client’s name:________________________________________

Address:______________________________________

City, State, Zip:_________________________________

Email:________________________________________

Phone:________________________________________

Birth date________________________

Emergency Contact Number_______________________

As a participant of [your club name] Club, I understand the potential risk of participation in this
program and I will take full responsibility for my actions. I agree to hold harmless the trainers,
officers, coaches, sponsors, volunteers, and all others affiliated with the program from any
circumstance or situation that may arise. I understand that all physical activity carries with it
some risk.

Name (printed) _____________________________

Signature _________________________________

Date ______________ Year _____________________________

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 USAT Clientship Number _________________ (If applicable)

Regular physical activity is fun and healthy, and increasingly more people are starting to become more active every
day. Being more active is very safe for most people. However, some people should check with their doctor before
they start becoming much more physically active.

If you are planning to become much more physically active than you are now, start by answering the seven
questions in the box below. If you are between the ages of 15 and 69, the PAR-Q will tell you if you should check
with your doctor before you start. If you are over 69 years of age, and you are not used to being very active, check
with your doctor.

Common sense is your best guide when you answer these questions. Please read the questions carefully and
answer each one honestly: check YES or NO.

-Has your doctor ever said that you have a heart condition and recommended

only medically supervised physical activity? Yes/No

-Do you frequently have pains in your chest when you perform physical activity? Yes/No

-Have you had chest pain when you were not doing physical activity? Yes/No

-Do you lose your balance due to dizziness or do you ever lose consciousness? Yes/No

-Do you have a bone, joint or any other health problem that causes you pain or

limitations that must be addressed when developing an exercise program

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(i.e. diabetes, osteoporosis, high blood pressure, high cholesterol, arthritis,

anorexia, bulimia, anemia, epilepsy, respiratory ailments, back problems, etc.)? Yes/No

-Are you pregnant now or have you given birth within the last 6 months? Yes/No

-Have you had a recent surgery? Yes/No

-If you have marked YES to any of the above, please elaborate below:

_____________________________________________________________________________

_____________________________________________________________________________

IF YOU ANSWERED YES TO ANY OF THE ABOVE:

Talk with your doctor by phone or in person BEFORE you start becoming much more physically active or BEFORE you have a
fitness appraisal. Tell your doctor about the PAR-Q and which questions you answered YES.

• You may be able to do any activity you want — as long as you start slowly and build up gradually. Or, you may need to restrict
your activities to those which are safe for you. Talk with your doctor about the kinds of activities you wish to participate in and
follow his/her advice.

• Find out which programs are safe and helpful for you.

IF YOU ANSWERED NO TO ALL QUESTIONS:

If you answered NO honestly to all PAR-Q questions, you can be reasonably sure that you can:

• start becoming much more physically active – begin slowly and build up gradually. This is the safest and easiest way to go.

• take part in a fitness appraisal – this is an excellent way to determine your basic fitness so that you can plan the best way for
you to live actively. It is also highly recommended that you have your blood pressure evaluated. If your reading is over 144/94,
talk with your doctor before you start becoming much more physically active.

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If your health changes so that you then answer YES to any of the above questions, tell your fitness or health professional. Ask
whether you should change your physical activity plan.

-Do you have any chronic illness or physical limitations such as Asthma, diabetes? Yes/No

_____________________________________________________________________________

-Do you have any injuries or orthopedic problems such as bursitis, bad knees, back, shoulder,
wrist or neck

Issues? Yes/No Please specify ___________________________________________________

-Do you take any medications, either prescription or non-prescription, on a regular basis?
Yes/No

What is the medication for? _______________________________________________________

-How does this medication affect your ability to exercise or achieve your fitness goals?
_____________________________________________________________________________

Lifestyle Related Questions:

1) Do you smoke? Yes/No If yes, how many? ______________________

2) How many hours do you regularly sleep at night? ________________________________

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3) Describe your job: ❍ Sedentary ❍ Active ❍ Physically Demanding

I have read and understand this form. All questions were answered to my satisfaction.

Signature: ______________________ Date: ___________ Year_____

SAMPLE GOAL-SETTING WORKSHEET

Generally the trainer fills this out, with the assistance of the client.

1. What do you plan to accomplish by starting this training program?

______________________________________________________________________________
______________________________________________________________________________
___________________________

2. Let’s reword that goal so that it is achievable and measurable:

______________________________________________________________________________
______________________________________________________________________________
___________________________

3. The steps you must take in order to reach this goal are:

______________________________________________________________________________
______________________________________________________________________________
___________________________

4. The activities that are necessary to reach this goal are: (list both activity and duration)

______________________________________________________________________________
______________________________________________________________________________
___________________________

5. Progress: (Review every 2 weeks; write assessment below)

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______________________________________________________________________________
______________________________________________________________________________
___________________________

Sample CONFIDENTIALITY AGREEMENT

This Confidentiality Agreement (“Agreement”) is entered into on [Date], by and between

[Company] and [Name of Individual Employee].

1. “Confidential Information.” For purposes of this Agreement, Confidential Information shall

mean all strategic and development plans; financial conditions; business plans; co-developer
identities; data; business records; client lists; project records; market reports; employee lists;
and business manuals, policies, and procedures; information relating to processes,
technologies, or theory; and all other information made available to [Employee].

2. Non-Disclosure Obligations. Employee promises and agrees to receive and hold the
Confidential Information in confidence. Without limiting the generality of the foregoing,
Employee further promises and agrees:

• to protect and safeguard the Confidential Information against unauthorized use, publication,
or disclosure.

• not to use any of the Confidential Information except for the business purposes.

• not to — directly or indirectly — in any way, reveal, report, publish, disclose, transfer, or
otherwise use any of the Confidential Information except as specifically authorized by the
Company in accordance with this Confidentiality Agreement.

• not to use any Confidential Information to unfairly compete or obtain an unfair advantage
against the Company in any commercial activity, which may be comparable to the commercial
activity contemplated by the parties in connection with the business purposes.

• to restrict access to the Confidential Information to those Company officers, directors, and
employees who clearly need such access to carry out the business purposes.

• to advise each of the persons to whom Employee provides access to any of the Confidential
Information, that such persons are strictly prohibited from making any use, publishing or
otherwise disclosing to others, or permitting others to use for their benefit or to the detriment

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of the Company, any of the Confidential Information, and, upon request of the Company, to
provide the Company with a copy of a written agreement to that effect signed by such persons.

• to comply with any other reasonable security measures requested in writing by the Company.

3. Exceptions. The confidentiality obligations hereunder shall not apply to Confidential

Information which: is, or later becomes, public knowledge other than by a breach of the
provisions of this Agreement; is in the possession of the Employee, as evidenced by written
records; or is independently received by the Employee from a third party, with no restrictions
on disclosure.

4. Return of Confidential Information. The Employee agrees, upon termination of the

relationship or upon the written request of the Company, whichever is earlier, to promptly
deliver to the Company all records, notes, and other written, printed, or tangible materials in
the possession of the individual, pertaining to the Confidential Information.

5. No Solicitation of Employees. The Employee agrees that he/she will not, for a period of [Time
Period] from the date of this Agreement, initiate contact with the Company’s employees in
order to solicit or induce any employee of the Company to terminate an employment
relationship with the Company to accept employment with the Employee.

Company:

Company Representative: Date:

Employee/Consultant:

Company: Date:

[Sample confidentiality agreement from hrdocs.com]

Sample Topics for Employee Handbook

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 Employee Handbook Contents

Table of Contents
Welcome Message
Equal Opportunity Statement
Immigration Law Compliance
Americans with Disabilities Act
Compliance
Policies and Rules
Employment Classifications
Confidentiality Clause
Attendance and Punctuality
Policy
Dress Code
Overtime Policy
Breaks
Safety and Accident
Procedures
Use of Company Property
Substance Abuse policy
Harassment and
Discrimination Policies
Evaluations and raises or
bonuses
Payroll Information
Absence Reporting
Benefits
Holidays, Vacation, Sick Leave,
Medical Leave, etc.
Military Service
COBRA Insurance Information
Worker’s Compensation
Separation from Employment
Layoffs and Re-hiring
Causes for Automatic
dismissals
Exit Interviews
Arbitration and Choice of Law
for Disputes
Acknowledgement form and
employee checklist to be
completed, signed, and filed
by management

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Appendix B Resources
BOOKS

Guerrilla Marketing: Secrets for Making Big Profits from Your Small Business

by Jay Conrad Levinson (Mariner Books, 1998)

<www.gmarketing.com>

Light One Candle: A Handbook for Bootstrapping Entrepreneurs

by Michael Richards. (Innovation Press, 1998).

The Shoestring Entrepreneur’s Guide to the Best Home-Based Franchises

by Robert Spiegel. (Griffin Trade Paperback, 2000).

Starting on a Shoestring

by Arnold S. Goldstein. (Wiley, 1995).

1001 Ways to Energize Employees

by Bob Nelson (Workman Publishing Company, 1997).

1001 Ways to Reward Employees

by Bob Nelson (Workman Publishing Company, 1994).

Raving Fans: A Revolutionary Approach to Client Service

by Kenneth H. Blanchard (William Morrow & Co., May 1993).

301 Great Client Service Ideas: From America’s Most Innovative Small Companies

by Nancy Artz (Inc. Pub, 1997).

Creative Advertising: Ideas and Techniques from the World’s Best Campaigns

by Mario Pricken (Thames & Hudson, 2002)

288
Entrepreneur Magazine

www.entrepreneur.com

The Essential Guide to Managing Corporate Crises: A Step-by-Step Handbook for

Surviving Major Catastrophes

by Ian I. Mitroff (Oxford University Press, 1996).

Harvard Business Review on Crisis Management

(Harvard Business School, 2000).

The Big Idea: How Business Innovators Get Great Ideas to Market by Steven

D. Strauss (Dearborn, 2001).

Blue’s Clues for Success: The 8 Secrets Behind a Phenomenal Business by

Diane Tracy (Dearborn, 2002).

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to

Do About Itby Michael E. Gerber (Harper Business, 1995).

Guerrilla Marketing: Secrets for Making Big Profits from Your Small Business

by Jay Conrad Levinson (Mariner Books, 1998).

Own Your Own Corporation: Why the Rich Own Their Own Companies

and Everyone Else Works for Them by Garrett Sutton, Robert T.

Kiyosaki, and Ann Blackman (Warner Books, 2001).

Portraits of Success: 9 Keys to Sustaining Value in Any Business by James

Olan Hutcheson (Dearborn, 2002).

Small Time Operator: How to Start Your Own Business, Keep Your Books,

Pay Your Taxes, and Stay Out of Trouble (Small Time Operator, 25th

Edition) by Bernard B. Kamoroff (Bell Springs Publishing, 2000).

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Successful Business Planning in 30 Days: A Step-by-Step Guide for Writing

a Business Plan and Starting Your Own Business by Peter J. Patsula

(Patsula Media, 2000).

The Upstart Small Business Legal Guide by Robert Friedman (Dearborn, 1998).

What No One Ever Tells You About Starting Your Own Business: Real Life

Start-Up Advice from 101 Successful Entrepreneurs by Jan Norman

(Upstart Publishing, 1999).

290