CWA 2019 Annual Summit Workshops
The Climbing Wall Association annual summit returns to Loveland, Co the week of May 15 and I will be presenting a couple of topics.
First, a one-day preconference workshop on creating your business plan for a new climbing gym development. We will be touching on all the aspects of plan development with a focus on presenting the information that will help you gain financing for your project as well as refine your business strategy. Get ready to roll up your sleeves and start your project on the right foot!
The second session will be a 75 minute discussion of financial management for climbing gyms, in which we will discuss the metrics and key performance indicators you can use to keep your business on track. You can’t reach your goals looking at a monthly P&L!
Check the CWA conference schedule for dates and times.
See you at the Summit!
2018 CWA Summit Business Plan Workshop
Are you psyched to start a climbing gym business but still in the process of planning for and financing your new venture? Then join me at the CWA Summit for an all day workshop on developing a business plan for a new gym venture. Its May 16 from 9am until 4 pm and we will be covering a lot of important ground.
Align personal goals with strategy
– Understand business planning requirements for funding and developing a new gym
– Understand funding options for new gym operators
– Learn critical success factors for operating a gym
– Learn alternative funding methods for expanding into multiple gyms
Please email me at bob@climbingwalladvisors.com if you have questions. Or check out the CWA website for more workshop info https://www.climbingwallsummit.org/pre-conference-workshops
Tailor Made for Community
My homework assignment each year is to visit as many new climbing gyms as possible. This year I have visited gyms on both coasts, the gulf, Europe and Iceland. What does climbing have in common everywhere I go? It is a natural for creating community. Think about it, most people climb with a partner or a group of friends, you generally rest between climbs, and unlike a lot of activities you can learn a lot by watching other climbers. One of the most educational visits was an evening I spent in Cliffs of Id on Fairfax Avenue in Culver City. Cliffs of Id is a Touchstone gym, of recent vintage, and although I did not climb on my visit, I enjoyed experiencing the community vibe. Inside the front of the gym, near the entrance, they placed a long wooden table about thirty feet long, flanked on both sides by wooden benches. I am guessing they also provided wireless several people were using laptops at the table. The table faces the front of the bouldering complex and provides a hub for resting, watching, doing homework and talking with friends. One climber related how she did her homework at the table a couple of times a week mixing in bouldering problems when she needed a break. I observed other people spend 45 minutes just sitting at the table talking.
By chance I met a USC student several weeks later while he was visiting Denver. I asked him if he was a climber and he responded, I climb every occasionally, but often met his friends at Cliffs of Id even if he didn’t climb.”
Several other gyms I visited featured ping pong tables, which always seemed to be busy and yet could be folded up and stored if needed. Another gym offered a co working type space. Not sure if that one will catch on, but there was no question in my mind that gyms that focused on creating community and a good place to hang out are destined to be busy. So…. time and money you spend to make your gym inviting to local customers by creating a space to congregate is well worth your efforts!
Retail Sales in Climbing Gyms
Retail Sales in Climbing Gyms
The CWA Newsletter, Lines, recently published a review of the benefits of selling climbing related products in climbing gyms. That article made many effective arguments. However, I think there is need for a counter argument to selling retail products in gyms. What are some reasons that perhaps selling retail products is not an effective strategy?
1. Your staff is your number one link to great customer service and risk management in your climbing facility. Do you want them focused on selling retail products?
2. Retail buying is somewhat of an art. Do you want to hire and manage the resources required to do this well?
3. Climbing gyms are dusty places. Can your keep your retail goods clean and merchandised attractively for your customers?
4. I have yet to see a gym P&L that shows a margin for retail sales that exceeds that of other gym programs. Most hover around 35%, which is not equal to most retail stores. If you track your revenue and profit per square foot of space (which you should), your probably not seeing a great result for retail sales.
5. You are competing with local retailers that you can make allies by offering gear deals through their stores in exchange for promotion of your facility and possible store employee membership programs.
There are certainly gyms with respectable retail businesses as part of their operation, but are they maximizing their return on assets and investment with their approach? Have they taken the time to do this analysis? You may want to play devils advocate before you take the plunge.
Climbing Gym Financial Projections
The most common call I receive from aspiring gym developers is, “where do I obtain a template for creating a financial projection for my gym project?”
Unfortunately, the industry does not have any industry financial profiles, which are generally compiled by an industry trade association. There are a couple of vendors in the climbing wall industry that provide algorithmic financial models (in Excel format), but my experience is that most fall far short of a strategically based financial projection.
What is an aspiring gym developer to do? I suggest a four step approach.
- Identify other markets, in which gyms operate, that you believe may be similar to your proposed market in terms of demographics and psychographics. Obtain demographic and psychographic reports (I use ring studies) from the internet that profile the existing gyms market. Compare those to your proposed market/location. Are they reasonably similar?
- Contact the owners of those gyms and ask if they will share their basic financial metrics (number of members, number of day pass users, and how their revenue breaks down by revenue category). Note, you do not need the dollar amounts, which they may be hesitant to provide. So don’t ask for them. Oh, and offer to share your results once your gym is open.
- Use the square footage footprint of those gyms and volumes to develop benchmarks for your gym, based on its proposed size. Use comparable pricing for health clubs and recreation centers in your market to create revenue amounts and soon you will have your basic financial projection.
- Contract with an industry consultant to give your business plan and projections a review. It should not require more than ten hours of time.
One word of caution is to be careful that you are not using volume numbers for your first year of business that are based on a gym that has developed a mature business. You will need to discount those numbers for your mistakes and early market development.
Climbing Gym Industry Standards vs. Practices
The Climbing Wall Association publishes industry practices, not industry standards. What’s the difference?
A practice is a process or procedure that is commonly used or suggested. A standard is something against which one measures something to see if it conforms to the standard.
A belay test is common in the industry; how to conduct that belay test is not. A practice suggests methodology while a standard prescribes it. Find out more from my website: www.climbingwalladvisors.com
Climbing Wall Association Annual Summit 2013
The 2013 Climbing Wall Association Summit wrapped up on Saturday June 1st. It was a mix of new faces and many that have been around for more than a decade. The lead conference “plenary” session was a panel discussion regarding onboarding new climbers, which produced a spectrum of approaches. The insurance broker is considering requiring a new “form” that the customer must sign. I remain convinced that check boxes and customer signatures are not a substitute for good management systems and believe that they may even work against an operator in the event of a claim from an accident. Attorney Reb Gregg, who was also on the panel, agreed “the less moving parts the better!” Subscribe to my newsletter and I will provide you with details!
Climb Well Operations and Employee Manual
The Climb Well Operations and Employee Manual is now available for purchase.
In this manual I have attempted to incorporate the many lessons I have learned in customer service and risk management over a 22-year tenure in the sport climbing industry. My goal is to help simplify and codify the management practices that will help your gym business thrive. It includes both customer service and risk management practices in a form that allows you to customize the manual for your operation.
I provide extensive coaching sections in the guide to the manual to help you in deciding upon your specific practices. Visit the Products page for more information.
CWA Summit Panel Discussion on Mitigating Risk
There will be a panel discussion at the Climbing Wall Association Summit regarding “Mitigating Risk: A Review of Accidents, On boarding New Climbers, Minimizing Claims, Losses and Lawsuits.” The panel discussion will include gym operators, attorneys and myself in what I think will be a lively discussion about risk management.
There have been a several complaints filed by injured customers that have resulted in insurance claims in the past two years. This has captured the attention of industry insurance carriers. There is a movement to require the completion of orientation documents for all customers. This is a contested issue in that it may not address the management issues underlying the risk management problems in the industry.
Join us for this panel discussion and make your thoughts known on this critical topic.
Climbing Wall Association Annual Summit Workshop May 30th
The Climbing Wall Association Annual Summit kicks off on May 31st and I will presenting a preconference workshop May 30th on Business Plan Development for climbing gyms (with the intent to raise money).
The morning session will be focused on creating plans for a new climbing gym business while the afternoon will be spent discussing strategies for expanding an existing gym operation into new locations.
Visit the CWA website for more information.
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