In this episode, Matt and Rick discuss the pros and challenges of the different types of fitness business ownership. We explore both the owner-operator as well as the investor structure of ownership. Which is better? Listen in and decide for yourself. → Learn more at → http://bit.ly/alloy_franchise
Before getting into the fitness business, you need to decide which type of owner you want to be. Either the owner-operator or an investor, also known as an absentee owner. Neither of these two ownership structures is wrong or right. We talk about the pros and cons of each and also the type of person who fits into each of them.
An owner-operator is somebody who is deep in the operations of the business. They work in the business. An owner-operator can have higher profit margins because they can tightly control the operations besides occupying the Director of Training position. They are usually a technician who decides to own a business. The cons of an owner-operator are that they are getting into a job. They might find trouble getting out of this job.
An investor is normally someone who has a higher business acumen who wants to scale up to multiple locations by executing the systems of the franchise they have partnered with. They initially invest more capital because they need more people but their return on investment is much higher in the long run. This type of owner will need entrepreneurial and leadership skills to build a team to manage the business.
Key Takeaways
Additional Resources:
---------
You can find the podcast on Apple, Google, Spotify, Stitcher, or wherever you listen to podcasts.
If you haven’t already, please rate and review the podcast on Apple Podcasts!