Years ago I considered cutting my all star teams from my schedule. I was fed up with the negative culture, understaffing and consistent amount of effort I was having to put in compared to rec classes. I decided to do a full program review. We were going to look at each program’s profitability, rate the amount of effort exerted to make each program great (not necessarily manpower, but WHO was putting in the manpower), and how much space it was taking in the gym. Each program was going to have to stand on its own in front of Judge Danielle and justify its existence. 

As you know, my cheer program made the cut (though I probably didn’t even want it to at the time.) Other programs were brought to my attention through that comprehensive program review though. We had a great Brazilian Jiu Jitsu program in our gym for about 7 years. It grew to 25-30 kids at one point and was running a few nights per week. 

Through that evaluation though, we realized that our business partner, Dustin, who was coaching the program, could be better utilized in other areas of the gym. So, while the program itself was profitable, we were losing potential profit in other areas as a result of his attention to BJJ. It wasn’t a great lead program as it turned out that most of our athletes were the brothers of cheerleaders and gymnasts, but it was fun. It required more cleaning than other programs (as they got very sweaty), more manpower ordering gis, and a private room that could be better-utilized space. On top of all that, the program required its own insurance policy. Though at one point Dustin had been passionate about the program, his passion for the gym was to see it grow and be profitable. He knew the numbers weren’t in favor of continuing BJJ. 

So, it was with a heavy heart that we announced the closure of the Brazilian Jiu Jitsu program. We had students who stayed with BJJ and we had to refer them to other gyms – some up to 45 minutes away. We lost some of the excitement of the variety of programs for boys, but ultimately, we gained a more cohesive brand. We were able to break down some walls and build a bigger, more dedicated space for our ninja program. 

Program evaluations are necessary and should be happening every few years in your gym. At this stage in your business, you will need to develop a process that takes the emotion out of your decision-making process. If you have a dance program, and it’s not bringing in either a) Leads for tiny cheer, B) Super profitable dancers, C) A more cohesive brand, then you need to consider why you have it. (I hate to use dance as an example, because it’s been close on our chopping block a few times, but always been able to stand on its own enough to stay.) 

Here are a few things to look at with your program evaluations: 

1. What is the percentage of profitability of each program? Be sure to consider labor cost, insurance, cost of materials, etc. 
2. How much space is each program taking? Can you put this as a cost per square foot and factor it into your profitability? We’ve had programs that took too much space making them less profitable, and we had to find a better solution for them to be in less space or add more kids to an already-full class. 
3. Are you emotionally attaching yourself (or is a coach doing this) to a program that isn’t profitable enough? 
4. Even if you’re profitable, are you limiting the profits of another program by keeping a particular program?
5. How does the program add to the overall brand for your business and lead generation for your most profitable programs?
6. Consider where your highest paying AND most enjoyable customers are coming from? Which program is bringing you the most loyal people who are referring friends? Is there a reason one program may do this more than others? 

If you find that a program isn’t making the cut, consider: Do you enjoy having this program? Is it one you see in your future? Is it easy to staff, and does it create a fun, energetic environment in the rest of the gym? If the answer is yes, then you’ll need to focus on that program to build in more profitability. Don’t accept a loss leader at this stage in your business! If the answer is no, you may need to consider the future of that program at your gym.