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Gym Launch Secrets by Alex Hormozi, framework 14 of 33

Your New Gym On Paper

Four steps to model the full turnaround.

Alex Hormozi's framework, from Gym Launch Secrets, pp. 193 to 206.

  1. Step 1: Define what you can control

    List price, sessions, duration, capacity, trainer pay, membership level and billing cycle.

  2. Step 2: Price increase and billing cycle switch

    Move from $118 per month to $39 per week.

  3. Step 3: Increase fulfilment capacity and cut overhead

    Use the capacity levers and the overhead lever together.

  4. Step 4: Do the maths

    Compare revenue, overhead and profit under three scenarios.

From chapter: Chapter 11, Your New Gym On Paper, pp. 193–206

Hormozi puts every lever together on paper for a hypothetical gym with 100 members at $118, 38 sessions a week and $11,800 revenue. Step 2 raises the price to $39 per week and bills weekly, even assuming a 10% loss of members. Step 3 cuts sessions from 163 to 99, raises capacity to 20 per session and drops trainer pay to $18.30, and the optional advanced move sells 15 members into one-on-four at $129 per week. The three scenarios show extra profit of $140,520, $105,000 and $77,640 per year, and he asks the reader to rerun the maths with their own numbers.

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