Alex Hormozi: What I Would Do If I Had My Gyms (Do This in 2020)

The video is about what Alex Hormozi would do if he had gyms during the COVID-19 pandemic, including flipping to a more profitable model, cutting rent, and keeping only essential personnel.

This video by Alex Hormozi was published on Oct 6, 2020.
Video length: 15:35.

In this video, Alex Hormozi discusses what he would do if he had gyms during the COVID-19 pandemic.

He suggests flipping all six gyms to remote and cutting rent, keeping only the best trainers and letting go of non-essential personnel. He also suggests paying the remaining staff to provide accountability and maintain recurring revenue.

Hormozi emphasizes the importance of catering to the majority of the marketplace rather than a small percentage.

• Alex Hormozi talks about what he would do if he had gyms during the COVID-19 pandemic.
• He suggests flipping to a more profitable model, cutting rent, and keeping only essential personnel.
• He would negotiate three to six months of free rent and cut all of the rent for each location.
• He would pay non-essential personnel $3,000 a month to stay at home and provide accountability.
• He would maintain a recurring revenue of $135,000 per month.
• He suggests running 16 remote workouts per day and having 12 trainers responsible for one workout a day.
• He emphasizes winning on accountability and service and dedicating time to cold reach outs.
• He suggests adding value and availability by recording workouts and having access to the best coaches.
• He paints a vision for a better future and focuses on providing value and making people feel good.

What I Would Do If I Had My Gyms (Do This in 2020) [ALEX HORMOZI] - YouTube

Introduction

• Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
• The video is about what Alex Hormozi would do if he had gyms during the COVID-19 pandemic.
• He talks about flipping to a more profitable model, cutting rent, and keeping only essential personnel.

Flipping to a More Profitable Model

• Alex would get out of the leases that he has now and flip his facilities to remote.
• He would try to negotiate three to six months of free rent.
• He would take all six of his recurring base of members and flip them to remote.
• He would cut all of the rent for each of those locations.
• He would take his best trainer at each facility and the rest of his personnel would be considered non-essential.

Cutting Rent

• Alex would negotiate three to six months of free rent.
• He would try to cut all of the rent for each of those locations.
• He would take his best trainer at each facility and the rest of his personnel would be considered non-essential.
• He would pay each of these people three thousand dollars a month to stay at home and provide accountability.
• He would maintain a hundred and thirty-five thousand dollars in recurring revenue per month.

What I Would Do If I Had My Gyms (Do This in 2020) [ALEX HORMOZI] - YouTube

Keeping Only Essential Personnel

• Alex would take his best trainer at each facility and the rest of his personnel would be considered non-essential.
• He would pay each of these people three thousand dollars a month to stay at home and provide accountability.
• He would maintain a hundred and thirty-five thousand dollars in recurring revenue per month.
• He would flip his facilities to remote.
• He would negotiate three to six months of free rent.

Conclusion

• Alex would rather have a solution that he can get ninety percent of the marketplace to get an eighty percent win rather than have five percent of the marketplace get a hundred percent win.
• He would flip his facilities to remote and cut all of the rent for each of those locations.
• He would take his best trainer at each facility and the rest of his personnel would be considered non-essential.
• He would pay each of these people three thousand dollars a month to stay at home and provide accountability.

Cutting Overhead and Flipping to Remote Workouts

• Run 16 remote workouts per day, every hour during the normal work day.
• Have a class that's being held so all gyms can cut their overhead and just have all of those workouts as fulfillment for their online clients.
• Get out of the leases that can be broken or get three to six months of free rent.
• Flip recurring revenue into remote nutrition and accountability primarily.
• Have 12 trainers responsible for one workout a day, which allows all clients to participate in a session at any given time.

Winning on Accountability and Service

• No one cares about the workouts if you're selling over the phone.
• Win on accountability and service, which is how gyms have always won.
• Pay trainers $3,000 a month and have them do one workout a day and reach out to customers to make sure they are being taken care of.
• Have trainers attend one of the workouts that is what they do all day.
• Have a hundred thousand a month left over in all profit.

Dedicating Time to Cold Reach Outs

• Dedicate the first two hours of the day every day to doing 100 cold reach outs.
• Book interested people on the calendar to close them.
• Fill the day up with appointments that the team doing reach outs sets.
• Turn on cold traffic and run phone calls to sell.
• Have trainers do daily reach outs, recess to existing customers, and required workouts.

Adding Value and Availability

• Have trainers record their workouts and have fun with it.
• Have more availability and variety than ever before.
• Have access to trainers that clients couldn't have had access to before.
• Have the best coaches for clients.
• Put clients with coaches they like.

Flipping to a More Profitable Model

• Renegotiate leases or break them.
• Take recurring revenue and get into 100% remote.
• Let go of non-essential personnel who are not generating revenue or keeping revenue through fulfillment.
• Focus on generating revenue in the first two hours a day by getting new calls and the rest of the day on doing fulfillment for existing clients.
• Do sales to make it rain and feed the machine.

Trainers' Responsibilities

• Reach out to new customers.
• Reach out to existing customers to make sure they know the gym is paying attention.
• Do one workout a day and record it.
• Focus on accountability, not just workouts.
• Trainers who are the best salespeople should focus on sales.

Painting a Vision for a Better Future

• Transform six facilities into one massive recurring revenue stream that is 100% remote and has higher profit margins.
• Lead trainers through the crisis and redefine their responsibilities.
• Provide hope to prospects, team, and customers.
• Be optimistic about what you are willing to do to endure.
• Make them feel good and convey conviction to your prospects, team, and customers.

Providing Value and Making People Feel Good

• Provide more ways to provide value.
• Someone will buy after how you've made them feel from the first 15 minutes of the phone call.
• Focus on making people feel good and providing hope.
• Remind trainers that the gym is trying to make people feel good and get them through this.
• Weight loss is almost secondary to how you will make them feel in that moment.

Watch the video on YouTube:
What I Would Do If I Had My Gyms (Do This in 2020) [ALEX HORMOZI] - YouTube