For many gym owners, growing the business can feel like the obvious way to earn more money. But according to Nicky from Fitness Business Development Academy, increasing revenue does not automatically mean increasing profit or owner compensation.
Nicky experienced this first-hand during his own journey in the fitness industry. Starting as a one-to-one personal trainer, he eventually developed a semi-private training model, built a profitable gym business, worked himself off the gym floor, and ultimately sold the business to a client in 2014.
Today, that experience shapes the way he works with fitness business owners, with a strong focus on profitability, owner compensation, financial management, and building a business around the owner’s desired lifestyle.
The Challenge
Nicky’s own business journey began with one-to-one personal training. While the model worked, he recognised that many clients could only afford one session per week, which limited the frequency of training they could achieve.
He began exploring alternative training models, including small-group and large-group training. After travelling to the US to learn from other fitness professionals, he initially tried to replicate a model he had seen elsewhere.
It did not work.
“Everything works. But nothing works. Just because it works for them doesn’t mean it’s necessarily going to work for me.”
That became an important lesson in his approach to business. Instead of simply copying another successful gym, Nicky adapted the model to suit his own facility, market and circumstances.
Finding A Model That Worked
Nicky eventually developed a semi-private personal training model, combining it with large-group training to give clients greater training frequency at an affordable price.
His facility was relatively small, so the model had to work within those physical limitations.
The semi-private model became the foundation of the business, while large-group training helped clients achieve three to four workouts per week.
Once Nicky had found a model that worked for his circumstances, he was able to scale the business and eventually work himself off the gym floor.
He later sold the business to one of his clients, exiting in 2014.
For Nicky, completing that full business cycle was important because it gave him first-hand experience of building a business from the ground up through to an eventual sale.
“It’s much easier to help somebody else when you’ve experienced everything yourself.”
Building A Business Around Profit
That experience now influences Nicky’s approach to business coaching.
Rather than focusing purely on revenue or growth, his methodology starts with the owner’s personal financial goals.
The question is simple: how much does the business actually need to make for the owner to live the life they want?
From there, the business can be built around that target.
Nicky explains that many fitness business owners make the mistake of assuming that more clients and more revenue will automatically lead to more money in their pocket.
Instead, he argues that profit and owner compensation need to be planned from the beginning.
“Don’t try to grow to be profitable. Be profitable first and then grow.”
The Financial Foundations
A major part of Nicky’s coaching approach is understanding exactly what is happening with the business’s money.
That means looking at how much money is coming into the business, when it is coming in, how much is going out, when expenses need to be paid, existing liabilities and how much cash is available in the bank.
The process uses a system called the Fitness Business Optics system, which has developed from spreadsheets into an AI system.
The purpose is to give business owners a clearer picture of where their money is going and what needs to change.
Nicky explains that even subscriptions and expenses that once made sense can continue long after they are useful.
“Let’s look at what you need for the next three months. Scrap the rest.”
Paying Yourself First
One of the key principles discussed in the interview is a stepped escalation plan for owner compensation.
Rather than waiting until everything else has been paid before deciding what is left for the owner, the approach gradually increases the amount the owner pays themselves each month.
The objective is to create a clear progression towards the owner’s desired income.
Nicky explains that this can also force the business owner to address the underlying issues preventing the business from producing enough profit.
Those changes could include increasing sales, improving marketing, changing pricing or finding other ways to improve the business’s financial performance.
As Nicky explains, paying yourself more creates a feeling of progression because the owner can see their income increasing each month.
“So every single month you’re feeling like you’re moving. Finally. So finally.”
Building The Business Around Your Life
Nicky’s methodology also looks beyond the business itself.
His five skill rings approach centres around three core areas: money, time and purpose.
The objective is to understand how much money the owner needs, how much time they want to spend working and where they get the most fulfilment from their work.
He explains that he personally still enjoys coaching, but does not want to spend 50 hours a week doing it.
The business therefore needs to be designed around those priorities.
“I realised that I needed at the time, 9000 a month, and I built my business to spec.”
The same principle is applied to the gym owners he works with. Instead of building a business simply because growth looks impressive, the goal is to establish what the owner actually wants from the business and work backwards from there.
Focusing On The Core Business
Another recurring theme is the danger of expanding too quickly.
Nicky explains that gym owners can sometimes become focused on opening a second location or adding another profit centre before the first business is sufficiently profitable.
His approach is to first identify what is preventing the existing business from reaching its potential.
“You have to figure out, like, what’s stopping you from actually making money in the first profit centre first.”
Once the first business is working properly, expansion can become a more informed decision rather than an attempt to solve problems that already exist.
Nicky has also seen clients reduce the number of facilities they operate in order to focus on profitability. In one example discussed during the interview, a client sold two facilities and was described as being much happier as a result.
A Structured Approach to Growth
Nicky’s methodology, known as the five skill rings, looks at the different areas a fitness business needs to develop.
These include creating customers through marketing and sales, team development, finance and KPIs, leadership and management, and service delivery.
The areas are connected, but they do not necessarily need equal attention at the same time.
The approach is designed around identifying the specific area that is currently limiting the business and focusing on that.
For example, Nicky describes working with a client whose issue was the conversion from front-end revenue into monthly recurring revenue. Rather than working on multiple areas at once, the focus was placed specifically on improving that conversion.
He also explains the importance of documenting processes so that a business does not depend entirely on the owner.
In one example, a business owner told him that a particular process worked brilliantly when he did it himself, but did not work when his team did it. Nicky identified the lack of a documented system as the problem and worked with the owner to break the process down into clear stages.
The Impact
The interview does not provide a specific named client case study with individual before-and-after financial figures. However, Nicky describes working with fitness business owners who have moved from struggling financially towards paying themselves a more respectable wage and generating profit.
He also explains that many gym owners become accustomed to operating in survival mode.
The business may continue to survive, but the owner can become stuck in the same cycle without making meaningful progress.
His approach is to first help owners create a pace where they can survive and live a decent life, before working towards increasing profit.
“There’s no magic cure. There’s one block at a time.”
For Nicky, success is not necessarily about having the biggest gym, the most locations or the highest revenue.
It is about creating a business that provides the money, time and purpose the owner actually wants.
“You don’t need a massive business. You don’t need more stress. You just need a business that works for your lifestyle.”
What’s Next?
Nicky continues to work with fitness business owners through one-to-one coaching, focusing on the financial and operational areas that can have the greatest impact on their businesses.
His own journey from personal trainer to gym owner, business seller and business coach has shaped a methodology based on practical experience rather than simply theory.
The focus remains on understanding the individual business, identifying what needs to change and building towards the owner’s personal definition of success.
As Nicky puts it, the ultimate goal is centred around money, time and purpose.
“Money, time, purpose.”
Ready To Scale Your Gym?
Ready to improve your sales confidence, eliminate objections, and attract premium clients who stay longer and pay more? 👉 Book a call with FMA and let’s level up your business.