Volo Innovations

Guest blog posting by Jason Van Dyke, CEO/president of FIZIO.

FIZIO is a new web based service for Health Care Professionals which gives them the unique ability to create and send a customized and personalized video home exercise program to their clients. The FIZIO database currently has over 700 video clips to choose from. New videos can be added by request, or even filmed and uploaded by members themselves for a truly customized approach

"Wield technology's wonders to raise health care's quality and lower its cost." President Barack Obama

The Obama administration has identified this ideology as one of the core factors in their effort to improve the current United States health care system. Near the top of the President's agenda is the following statement:

"Lower Health Care Costs by Investing in Electronic Information Technology Systems: Use health information technology to lower the cost of health care. Invest $10 billion a year over the next five years to move the U.S. health care system to broad adoption of standards-based electronic health information systems, including electronic health records."

This proposed $10 billion/year investment by the government of the United States outlines the vital role that technology will play in the future advancement of our health and wellness industries.

If you are a health and wellness professional then this should be a strong hint to you that now is the time to begin finding new ways to harness technological advances to improve your business. As always, the most important thing to do is to identify technologies which are effective, efficient, and affordable. This is an exciting time with new services, products, and tools being developed on a daily basis. Identifying new technologies which can save you time, money and make you more profitable, could be the difference between a successful business and a failure.

It is up to each and every one of us to begin to examine ways that we can improve the quality and efficiency of our care, and to identify current technological advances that can help us do this without spending more money.

Simple but effective ways to utilize technological advances to improve your business and cut costs include:

• Save money on ink and paper by "considering the environment before you print," or better yet, make the move to a paperless system in your clinic.
• Save on paper and postage by keeping in contact with your clients via email rather than sending out "thank you" or "customer feedback survey" postcards.
• Utilize an online customer billing, management and scheduling service such as Volo to help you save time and improve efficiency.
• Save money on travel and gas by utilizing online services like Skype or GoToMeeting for your next company meeting.
• Demonstrate your professionalism and impress your clients by utilizing a service like FIZIO to create and send a customized and personalized video home exercise program to your next client. This site allows you to use the current videos on the site or even upload your own videos to create a truly personalized experience for both you and your clients.

Before you start spending money on ways to improve your business, talk to your clients or create a survey, using an online survey company like Survey Monkey,  to identify the most important and common concerns. Once you identify the weak and/or problem areas in your business, then you can search for a technological advancement that will help you improve upon your deficiencies, making your business stronger.

Jason Van Dyke, CEO/president of FIZIO.

Join us for a joint webinar with Volo and Fizio on June 3rd at 12 noon PST/ 3pm EST. Register now!

I hope I have waited an appropriate amount of time to discuss this hot topic. I am not here to debate the pros and cons of this historic piece of legislation but instead to look at what opportunities it may offer.

As a fitness professional and entrepreneur I like to look at all legislation from those two perspectives, first as a fitness professional does this new law effect me or my clients and then as an entrepreneur, how does this new law change my business and what are the opportunities it creates. The last point is often over looked when a change is introduced and this is a shame because the glass should always be half full. It is easy and often too much so to just look for the negative and jump on the ‘I hate this band wagon'. I say we leave that for Fox News and CNN. Most obstacles and changes in life present new and often better opportunities for a serial entrepreneur.

Whenever any government passes a bill or there is a vote on legislation you want to look at it as a potential business opportunity. In the new health care reform there is a provision that could allow the savvy fitness entrepreneur an opening.
One part of this current legislation allows for a discount on insurance premiums, up to 50%, for persons that are taking part in a wellness program. Talk about opportunity, every fitness company and corporate wellness company should be running to human resource departments and say "I am going to save you huge amounts of money." do you want to know how?

A second opportunity is the 15 billion dollar allotment towards prevention and wellness services. Medicare will provide one free annual visit that includes a health risk assessment and a personalized 5-10 year prevention plan. Fitness and wellness companies must be excited at the potential opportunities to expand their services from the employer to the individual market.

So no matter if you are a pro or con person it is time to take off the glasses that scrutinize and put on a clearer pair of opportunity glasses and go out and build a new wellness service package that will assist to propel your business to excellence. The best part is that our Volo software will be there to assist you. You can create new schedules and appointments that will track these offerings and will ensure accurate billing for all new services.

So no matter what you decide to do with the new legislation this is a great opportunity for your fitness business and a great opportunity for all the people in the US.

Below is a quick top ten list of items that need to be looked at either for the first time or at the start of your yearly planning.  

1. Mission statement: This is why you do what you do. What you use to motivate staff, your definition of your company and your identity all need to be in line with your mission statement. Do a quick gut check here because you need to decide if you are living the dream and staying the course or has your path changed in which case you should update this valuable statement.  Check out our training studio mission here

2. Demographics: These are the people you serve and this needs to be regularly checked to make sure things have not changed and the people you are targeting are coming. Understanding that you are all female or a sports specific gym is important

3. Geography: A quick look at who is using you is important but where those people are coming from and how they get to your services is equally important. You do not want to run a sport specific boot camp in a senior's complex, remember the average time a gym member will travel is only 20 minutes by any mode of transportation so location, location, location.

4. Hire: You cannot do it all no matter how hard you try it just does not work in the fitness industry. Hire, delegate and strategize on how you are going to grow your company is the most important thing when starting a fitness company. No one person should be so important that they cannot be replaced, this includes you. Some say start by replacing yourself others say transition off yourself. I believe it is an individual decision but I can honestly say that only the people who can remove themselves will be successful.

5. Accounting: Volo automates your business, our software handles scheduling, billing, creating invoices, and setting up of automatically recurring payments. A pretty powerful piece of software but if you don't do your accounting it is game over. Someone needs to be in charge of paying bills, checking the bank accounts and paying employees or your business will fail.

6. Sales & Profit: I love this topic, people always yip about getting sales and more sales means more money well actually no it does not. The most important thing any business can do is generate a profit, of course you need sales to do this but your sales could remain the same and you can increase profit through better management or inventory control. Look at your business and find the areas where you can increase profit then go out and generate sales.

7. Service: Fitness is a service first and a product second. Please remember this you need to put the customer, client or member first in our industry. They need to feel a WOW factor every time they come in or they will go somewhere else for training or yoga or nutrition these are the add-on services that will boost your profits per member now that is good business.

8. Staff: I like to say you have two major assets in a fitness business, clients and staff, everything else is just dressing. Treat them right, compensate them well and ask for their opinions. Every person you hire should bring something to the business if they do not then don't hire them if they are not contributing then fire them. Sounds harsh but remember we are service industry with tight profit margins and one bad employee can cost you thousands in lost revenue.

9. Equipment: Take a look around you and see if you are using the old out dated gear or are you cutting edge new trend kind of gym. You do not take a knife to a gun fight, same thing for the fitness business now you cannot train athletes with just power lifts. Get the right equipment and stay up to date on the new gear.

10. Education: When was the last time you did some continuing education in either business or an area of fitness that your business is centered around? Often I speak with studio or business owners that have let their own certification or knowledge lapse; this is fine if you are an absentee owner but if you are involved in the business then set the example, perhaps bring someone in to do continuing education for you and your staff!

Follow these ten business tips and you will always remain ahead of the competition. Your business will be set to capitalize on new trends and service the clientele with a big WOW factor that brings in more business.

photo credit by Kevin Dooley  

Stay strong during tough times!
This should be a new mantra for all fitness businesses. It is easy for fitness professionals, gym owners and members to read the news of failed fitness companies and the list of bankruptcy protection filings and get scared. However it is an unfounded fear. Our industry has remained strong despite economic down turns.

This doesn't mean that we are recession proof like some industries but it does means that we are smart and creative and this allows most of us to survive in leaner times. Additionally a lot of fitness companies are owner operated and which allows for greater financial flexibility as owners can pick up any slack. Also remember most of the companies we read about are not actually bankrupt it is more of a corporate restructuring that they are doing and during that time they need protection from creditors.

Here are some of the things we know people are doing to help their business and customers through a bad economy.

1. Added customer service; this can be achieved by putting the clients and members you already have ahead of gathering new members. It is hard to do because for most businesses it is the new people they focus on but the reality it is cheaper and easier for you to market to an existing member then to try and attract new members. These systems can be simple:

a. Greetings to everyone that walks into your facility, make sure you have someone posted at the reception
b. Have all class instructors start each class with a big hello and positive message and end each class with a "check out this special" or other member offering.
Remember this is not sales oriented it is appreciation so do not mix the two, it is important to tell the members you are happy they are there.

2. Added value sales: too often companies put out specials for new members only this essentially alienates you existing members. Any special or offer you do to bring in new members should have a counter offer to your existing members. This does not have to have equal value but it needs to something that makes them happy they joined you last month or year.
3. Referral programs; this is tough to nail down as there are hundreds of different offerings that can fall into this category. My tip is that you want to do two things with this offer one is have your fans speak highly of you to others and two get new members. Some of the most popular are bring a friend for free or if 5 people sign up you get a free month or free product if a friend joins and these are all great.
4. Add or switch up your services; one of the things that fitness companies, especially training companies, can do is to offer small group training of 3-5 people. This allows your PT clients to do extra or switch to a lower cost option. Just remember the goal here is to promote the group without diminishing the value of the one on one training so use caution in language and always do a counter offer to those who just want to stay private.
5. Add software; this may cost you a monthly fee but can add huge value over your competition. Nutrition and exercise tracking software can allow your customers access to information and logging that even your trainers can access to provide maximum results. Nothing is better than walking billboards to bring in business. Hyperstrike (use promo code VOLO TRAINER or VOLOCLUB for a 30 day free trial)and Vitabot are two popular programs that can do this.

In the end it all comes down to you and what your business can do or offer to help people through these tough times. It has always been the role of fitness professional and business to shoulder some of the burden that our customers have. We assist them through heart ache, death and bad heath choices but we also know that with life comes the good friends, the victory and the excitement of achievement and this is why we do what we do. So get out there and start to talk to your people and get them energized and motivated to achieve success and I guarantee it will rub off on you. 

-Tough people will always last longer than tough times!

photo credit MichiganMoves

I receive two or three emails a day from Fitness Professionals asking about these accounts ranging from what are they to how do I get one.

In simple terms a merchant account is needed for your fitness company to process credit cards of any type. EFT allows you to transfer money directly from people's bank accounts, some areas call this ACH.

There are different types of merchant accounts and they all charge different fees. This is where the confusion comes in. What type of account do you need? Where do you get one? How much will it cost? What about Pay Pal?

Applying for a merchant account is similar to applying for a loan, if your fitness business is new, has no credit history or is not incorporated you will need to provide a personal guarantee. Why is it a loan? Most merchant accounts will deposit the money into your bank account before they have received the money from your mutual client.

The type of account you need depends on your business and the management software you choose. With Volo being online software you would need an ecommerce account in order to have your merchant account integrated and your Volo store active. Your other option is a terminal based account this is where you would have a separate terminal to swipe your cards and then enter your sales into your management software.

Fees will vary based on the account and the credit card that your customer uses when they purchase; in the US there are 300 different transaction rates so it can get very complicated, some companies will give you a flat rate or 3 flat rates, qualified, mid qualified and non qualified, but these usually end up costing you more in the long run.There is also:

• a monthly fee
• a per transaction fee
• a % of each transaction
  
• terminal based accounts will also have a rental fee

EFT accounts usually have:

• a monthly fee
  
• a transaction fee
  
• rarely do they have a % fee

For an excel sheet that you can use to calculate what is best for you and a PDF of the aspects of a transaction enter your name and email here:

Since applying for merchant accounts is like applying for a loan the obvious place to go is your bank, however this should not prevent you from shopping around because rates will vary from bank to bank; also there are brokers that can look at multiple suppliers. If you are signing up for Volo we can help you with all your paperwork so please feel free to contact us first.

Online accounts require the use of a gateway, the gateway acts as a go between the online software and the merchant bank. These fees are sometimes rolled into the fees of the account but can be additional so be sure to read your contracts and make sure you ask questions.

Things to look for:

1. Set up fee
2. Annual fee
3. Monthly fee
4. Type of % fee flat or variable
5. % rate(s) this is called discount rate - get lowest, highest and average make sure this is for e-commerce
6. Number of days to deposit in your account from the transaction date
7. is the full amount deposited or a % of it, is there a hold back
8. Is the discount rate taken off of each transaction before it is deposited to your bank account or a total every month (Monthly is way better)
9. Per transaction rate
10. When is the per transaction fee taken off of each transaction before it is deposited to your bank account or a total every month (Monthly is way better)

You do not want hold backs at all and you should try to get an account that has your money deposited sooner.

Having them bill you monthly means that they add up all the fees and take them at one time this will save you hours of accounting or accountant fees, so if it is less than 1% point i personally would always choose the company that only bills me once per month. When they take their fee on each transaction you will need to log a journal entry daily in your accounting program versus monthly.

It is important to remember that a lot of Merchant and EFT suppliers require contracts that are around three years in length and have will have penalties' for canceling early, so be sure to read your contracts before you sign.

Don't forget to get your copy of the merchant rate comparison worksheet and the 10 steps to an EFT transaction. Fill in your name and we will get it emailed out to you right away:

The ripple effect is a term used to describe consequences of event that are beyond your control. These ripples are often far reaching and may have a blanket affect. The current economy has had this very affect on numerous businesses and several fitness centers have closed their doors and filed for bankruptcy from small mom and pop operations to larger fitness chains this ripple has hit businesses hard and consumer confidence even harder.

Some fitness members are being left with little to no recourse when a club closes hence the increase in popularity of surety bonds. Wise gym members or those whom have been stung once are now starting to ask before they sign if the club caries a surety bond and the amount.

What is a surety bond?
A surety bond is a contract among at least three people.

• The principal or primary party who will be performing the contractual obligation - the health club
• The oblige or the party that is the recipient of the obligation - the member of the health club
• The surety who ensures the principal's obligations will be performed - usually the states attorney general for health clubs

These bonds offer security to the gym member that should a facility close or not live up their obligation under the membership contract that the member will be able to seek restitution from the amount of the bond.

Who must be bonded? How much?
Health club bonds are not limited to just health clubs but instead reach multiple businesses that offer prepaid memberships with the amount to be determined by length and types of memberships. The fees and types of companies that must buy bonds depend on the state. Businesses must check with their attorney general to see if they are required to post a bond and how much this bound will cost for. Typical bonds requirements can range from $50,000 for 12 month memberships to a higher $150,000 for 2 and 3 year memberships.

Fitness industry business types that may require surety bonds:

• General health and fitness clubs
• Racquet and tennis clubs
• Gyms
• Weight loss centers
• Self-defense schools
• Personal or athletic trainers - currently only if they have a facility
• Body building clubs

Who could be next?

• Yoga studios
• Pilates studios
• Boot Camp operations - no facility needed
• Personal or athletic trainers - no facility

Should your business get bonded?

I believe that it is only a matter of time before this becomes a necessity in order for businesses to ensure the peace of mind of their members. Add to this the pressure on the government to rebuild consumer confidence and before you know it the current legislation will have a ripple effect that will soon include your business.

I would recommend that if you can afford it that you take initiative to be ahead of the curve and take out bond to provide your members and clients the security to buy from you. You may want to advertise the fact or just keep it on your contracts.

The second option is to switch your business model to post billing versus pre-paid memberships. Some businesses may charge an initiation fee to cover initial cost; this fee may be refunded at the end of term similar to the leasing of property. Remember don't spend these fees instead use place them in a separate account as you may be required to refund with interest depending on your state.

There several different options and successful business opportunities that may suit your business needs so do some research and make sure that you are properly covered for all circumstances that may face your business. This will also protect you from personal liability and possible criminal proceedings.

Ok so we all know the old adage the two things for certain in life are death and taxes right, for some fitness businesses the tax can cause their death.

Such is the case in BC and Ontario Canada as both provinces are introducing a Harmonized Sales Tax (HST) come July 2010. The HST is a combination of the Goods and Service Tax (GST) and the Provincial Sales Tax (PST). Currently fitness memberships and service are exempt for PST in both Provinces, so what does HST mean for the fitness industry in these two regions, simply put it equals a 7% increase for BC and an 8% increase in Ontario on all fees and services the business offers. It is a forced fee increase that turns a business based on health and wellness into a tax collector for government and has no benefit to the business.

It may seem small to add another $5-20.00 per month to these fees but add to this the possibility of new and higher tariffs from the Society of Composers, Authors and Music Publishers of Canada (SOCAN) and the proposed 5% tariff on gross sales from the Neighboring Rights Collective of Canada (NRCC) and you suddenly have an industry that is here to help people stay healthy, fit and active feeling a little sick to their stomachs.

Below is a breakdown of what a fitness company will pay in taxes and tariffs based off their potential sales and income.

In Canada get involved and help support the legal challenges to the NRCC proposed tariff go to the Fitness Industry Council of Canada and learn more about how to help.  No single thing that can bring down your dreams quicker than being side swiped by organizations and government.

Go get involved no matter how small your business is this will affect you and your clients or members in a negative way so post signs in your gym get member to sign petitions and let's put a stop to the tax and tariffs that are kill our industry and livelihood. 
For list of who wants your money go to the following links: In Canada in the US and globally