ABC Wellness and Fitness Center
Owners: John L. Wright, Tammy Wright
Location: Waldorf, MD
Product: Gym and fitness center that offers personal training, group exercise classes, nutritional guidance, weight training area, and fitness boot camps
Fitness Services Launch: 2006
Fitness Center Launch: 2009
Launch Costs: $200,000
2009 Revenues: $70,000
2010 Revenues: $140,000
2011 Revenues: $160,000
Projected 2012 Revenues: $210,000
Now: Fitness training facility in addition to on-site child care, nursing lounge for mothers, and classes for lifestyle change; community outreach focused marketing and promotions
Next: Form strategic partnerships by contracting services to government agencies, churches, and local business, including offering organizational memberships
When John L. Wright’s neighbor grew frustrated with the lack of progress she experienced while working with a personal trainer, she turned to him for guidance. Wright, a former semi-professional bodybuilder and former dietician in the U.S. Army Reserves, took on the task of creating a customized fitness and dietary regimen. “We changed her nutrition and we made her accountable,†says Wright, who had been laid off from his managerial position at a food and facilities management company.
That chance business proposition between Wright and his neighbor eventually birthed Anointed Body of Christ (ABC) Fitness Center & Day Spa L.L.C.
(www.abcfitnesscenter.com), a Waldorf, Maryland-based gym that Wright, 50, runs with his wife, Tammy, 40, a member of the National Guard with more than 21 years of military service.
ABC Fitness has grown organically over the years, with the Wrights testing the needs and wants of their customer base. The couple initially launched their fitness training business in 2004 by offering mobile service, which included nutritional guidance and one-on-one personal training, to clients in the comfort of their homes. Customers were charged up to $65 per hour with the average session lasting one hour and with most clients signing up three times per week.
In 2008, the Wrights opened a small studio, allowing them to provide group training classes. By 2009, thanks to an aggressive grassroots community-based marketing strategy, the business grew to occupy a 5,000-square-foot facility located 45 minutes outside of Washington, D.C.
Today, the couple’s ABC Wellness & Fitness Center offers group fitness, one-on-one personal training, nutritional guidance, and weight training stations, in addition to on-site child care, a nursing lounge for mothers, and classes for lifestyle change. Tammy says the gym is not religious-based, but it is driven by the belief that the body is a temple, and it should be taken care of.
“At least 70% of our members have come from community [outreach],†she says. For example, the husband-and-wife duo hosted a cancer awareness gala in 2010 to bring attention to the different forms of the disease impacting their community and offer preventative measures after someone they knew was diagnosed with breast cancer. Tammy also teaches Zumba classes throughout the community to spur brand awareness and get the community moving.
The couple’s total capitalization for their brick-and-mortar fitness center was $200,000, of which $50,000 came from personal savings and the other was $150,000 from a community bank loan backed by the U.S. Small Business Administration’s 7(a) loan program. The couple admits that at the time the odds were not in their favor. Indeed, between 2008 and 2010 small-business loans from large- and medium-sized institutions dropped by more than 8%, according to the SBA.
It was ABC Fitness’ agile beginnings that positioned the company to receive a loan. “[With a mobile business], you have a proven track record, you ‘sold’ the business before you built it so you know there’s a market, there’s a demand,†says Carol Roth, business strategist and author of The Entrepreneur Equation
(BenBella Books; $24.99). The Wrights’ proven track record as a mobile business demonstrated a sustainable and viable business model.(Continued on next page)
ABC Fitness generated $70,000 during its inaugural year at its physical location and $140,000 in revenues in 2010. It closed out 2011 with a 14% increase, bringing in $160,000. The Wrights project the business will reach $210,000 in revenues this year as they aim to expand their membership base from 125 to 200.
To grow the business, the Wrights will continue with their aggressive marketing efforts, hire two 100% commission sales reps, and form strategic partnerships by contracting services to government agencies, churches, and local businesses. They also intend to focus more on providing organization-wide discounts on annual memberships and/or fitness boot camps. Their target “organizational†audience is police departments, fire departments, and local businesses.
Tammy, who holds a Master of Science degree in information resource management from the University of Maryland, is responsible for the overall strategic planning and direction of the business. Her husband, who became a certified personal trainer through the American Sports and Fitness Association in 2009, is responsible for the day-to-day operations. He also manages recruitment; the company currently works with four independent contractors due to the costs associated with hiring full-time employees.
The Wrights have three major competitors in the surrounding area who offer fitness equipment, personal training, nutrition, and one of them also has on-site child care. David Washington, Ph.D., owner of Washington & Co., a business consultancy, says the couple needs to boost their brand in order to continue to grow the business. One way to do this, he says, is to white label products (offering other manufacturers’ goods affixed with your company’s private label or logo) to generate additional revenue.
The Wrights currently private label sports water bottles, key chains, and other items but Washington recommends that the couple expand to include nutrition bars and nutrition plans, which other manufacturers have already developed. He also advises the couple to incentivize customers to boost word of mouth. For example, Washington says, customers can receive a small discount for bringing a friend or telling a friend, who would also receive a small discount for actually showing up at the gym.
The Wrights are clear that when it comes to marketing and promoting ABC Fitness, people and community involvement will be key to their long-term success.