A gym chain wants to double its revenue in five years. How would you approach the problem?

A couple of questions. Does the growth have to come from the existing business, or are acquisitions allowed? And is there a profit constraint? Revenue for a gym is clubs times members per club times revenue per member, so I'd take those one at a time. Start with revenue per member. That's the membership price plus extras like personal training and classes. Next, members per club. They could do more marketing to bring people in. For a gym, keeping members matters more than signing them. Then the number of clubs. That means opening new ones or buying them. I'd compare the payback on a new build with buying a small regional chain. I'd size each lever and see whether they add up to double. I'd start with whichever lever looks biggest. Do we have revenue by club?

A couple of questions. Does the growth have to come from the existing business, or are acquisitions allowed? And is there a profit constraint? I'll assume acquisitions are allowed and margins can't fall. Doubling in five years is about 15% growth a year, so small tweaks won't get there. Revenue for a gym is clubs times members per club times revenue per member, so I'd take those one at a time. Start with revenue per member. That's the membership price plus extras like personal training and classes. I'd check their price against nearby competitors and see how many members buy anything extra. Realistically that's worth 10 to 15%, because budget gyms cap what you can charge. Next, members per club. They could do more marketing to bring people in. For a gym, keeping members matters more than signing them. If the average member stays 12 months, getting that to 15 grows the base by a quarter with no extra marketing. I'd also look at which clubs are full at peak hours, since those can't take more members anyway. Then the number of clubs. That means opening new ones or buying them. This has to be the biggest piece. If the first two give around 40% together, the club count still has to grow by more than 40%. I'd compare the payback on a new build with buying a small regional chain. I'd size each lever and see whether they add up to double. My hypothesis is that most of the growth has to come from new clubs, helped by better retention. I'd start with member churn and profit by club. Is that available?