The source is an excerpt from a white paper titled “How Healthy Is Your Gym Business?” by expert Jim Thomas, who provides a complete fitness checkup for independent gym owners and fitness entrepreneurs. Thomas asserts that every gym requires a regular business assessment, just as clients need physical assessments, to measure its operational health and long-term viability. The paper outlines four core diagnostic categories that determine a gym's health: Rent, Payroll, Recurring Revenue, and Acquisition Cost vs. Revenue per Member, offering specific benchmarks for each, such as keeping rent at 15% of revenue or less. Thomas also offers solutions for optimizing these vital signs, detailing how to increase revenue per square foot and reduce payroll without sacrificing quality. Finally, the document lists several additional diagnostic indicators, like healthy conversion and cancellation rates, to help owners determine if their business is thriving or needs fixing.
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