BJM Free Press |

Dancing For Profit

Although the national obsession for group exercise has begun to level off, estimates claim 23 million Americans participate in aerobics in health clubs and exercise gyms.

This includes people enrolled in programs run from community facilities, YMCAs, and gyms, to dance studios in shopping malls.

This figure represents 10% of the US population who exercise occasionally, definitely a fraction of what it used to be 10 years ago when the craze was at its peak and America was waking up to the urgent message of the importance of exercise.

NEW MARKETS

The decline of enrollment-based fitness programs has forced many studios to expand their services.

For example, some jazz exercise studios now offer skin care and nutritional counseling. Some offer shiatsu classes.

The biggest problem for any stationary fitness program is being able to organize classes that work around the schedule of its potential clients.

The interest in fitness remains. The market did not dwindle as the figures suggest. The biggest challenge in this industry is identifying new ways to deliver its services to the market.

BUNS OF STEEL

If you are an aspiring exercise entrepreneur, here are three avenues by which you can deliver and sell your services to your market:

1 - CORPORATE CONTRACTS

Many businesses recognize that healthy employees are productive employees, something the Japanese realized decades ago.

You can send instructors to a business location to conduct exercise classes that are subsidized by the employer.

2 - SATELLITE CLASSES

You can lease community or church facilities, recreational centers or school gymnasiums and hold classes for people in that community. Some very large apartment complexes have halls, or function areas, where classes can be held.

3 - VIDEOS

Students who attend your class once can continue the routine on their own time. That’s the convenience video can offer.

Instead of coming to an organized exercise class, people will attend an exercise class in front of their VCRs.

In fact, a video tape can be an excellent add-on product to corporate contracts, satellite classes, or studio classes.

“I have a 31-step process. I shampoo seats, do the dashboard with Q-tips, clean the trunk, dress the engine, etc. It takes 3 hours for what I do, and I charge $120. That’s detailed.”

This would be a typical response of someone who does Auto Detailing when asked what they can do for your car and how much they would charge you for it.

The age of upscale carwash is here. As we keep our cars longer (average length is 7.5 years) we take better care of them.

This is why the carwash business is booming with $8 billion in revenue, and so is auto detailing.

EXECTUIVE PARKING

Many auto detail services nest their business in executive parking lots. They get a permit from the city and from the business whose lot they use.

This is convenient for employees who otherwise may not have time to bring their cars to a shop that would take 3 hours to get detailing done.

In a mobile operation such as this, you will need a van or pickup truck and access to running water and preferably AC power.

In some cities, there are companies that convert and customize pickup trucks into mobile detail shops with its own reservoir and portable power generator.

140 MILLION CARS

Although many auto detailers will swear that a bulk of their business comes from car dealers, in reality the car dealer market is small and extremely competitive.

Most car dealers need cars detailed before a used car is offered in an auction or is displayed in the lot.

However, the biggest market of all is still on the road, individual car owners, representing all of 140 million passenger cars plus another 30 million pickup trucks on the road.

This market, with an average age of 7.5 years, is ripe for a detail job at least twice a year.

BUDGET DETAIL

The best way to build up a base in this business is to introduce a mid-priced service that offers extras that carwashes do not offer.

Detail jobs in the range of #30 to #49 will open up a new market that can provide a stream of customers. You can provide a written list of what you do and how you build up your rates from the basic price of $30 to the premium rate $49.

With 5 customers a day, at 1 hour each, you can average $200 a day.

“MAGIC” is the buzz word that usually describes what this business offers.

No - the Party Planning business we’re talking about has very little to do with Goof-Doop The Clown or serving cake and ice cream to 6-year old kids.

CORPORATE SCENE

For a Party Planner, this is where the money is. And if you have the knack for organizing fun things for grown ups, you’re in for a big - $100 Million - surprise. And it’s a business worth celebrating.

BROKER MENTALITY

This is a business you can virtually start with little or no capital. All you need is a great idea and a client who wants to have fun.

The best way to implement this business is to act as the broker for all services entailed in any given event.

You do not prepare the food, you hire a caterer. You do not sing or dance, you hire entertainers. In fact, in some real big parties, you can negotiate with talent agencies to have celebrities attend your party.

For example, you can have named stars “drop by” your party for around $10,000 or better. If your budget cannot afford the real celebs at $10,000 a piece, then you can hire look-alikes for $200 a night. Do not introduce them in the party, just let them roam around and mingle with the guests.

THEME PARTIES

You can also plan an event around a theme, depending on the reason for the party and the number of people attending.

You can build festivals around parties. If the party is an extension of a convention, work around ideas that are conducive to people in that trade or industry.

START-UP

To get started, line up businesses that are involved in parties: florists, videographers, caterers, hotel managers, equipment rental companies, and others.

Set your rates based on the price lists of these related businesses. These tie-in companies will dictate the way you structure your prices.

Once ready, compile a mailing list of potential corporate accounts in your area. If you live in a city with a convention center, it would be ideal to do some networking and get referral business.

Here’s a pleasant home based business that will challenge your creative as well as your managerial skills. It’s a fun business for those who have the flare for creating appetizing gift packages.

A FUN PRODUCT

Gourmet gift baskets have become popular in recent years. They are a collection of desirable items and in such a variety that they appeal to all. By determining the markets you want to target and the type of baskets you want to produce, you can set your income goals for as little or as much as you like.

CORPORATE ACCOUNTS

From the very large and the very small, businesses have needs for gift giving on a pretty constant basis.

By targeting corporate accounts, you protect yourself from potential sales fluctuations common to what are generally considered seasonal items. Business love gift baskets because they are “safe” compared to other gifts like chocolate (many people now carefully watch their fat intake) or wine & spirits (many people don’t drink). Of course, other possible clients for your gift baskets include associations, retail outlets, fund raisers, and individual customers who purchase for themselves or as a gift.

CREATIVE DESIGNS

Gourmet gift baskets are fundamentally a few nice items placed in a unique arrangement and presented to look extravagant. Use your imagination and keep an eye for unusual and appealing products.

To keep unit price low, inventory most commonly used items by purchasing direct from the manufacturer or main distributor. Look for large pretty items; they will give your product “size”.

THEME MARKETING

Focus on a theme and build around it. From a corporate perspective, create presentations that communicate the corporate perspective, create presentations that communicate the corporate or marketing slogan.

Do not limit yourself by just using baskets as your main vehicle. For example, a basket with an Italian theme can use (as its basket) a large pasta bowl to hold a small bottle of vinegar, olive oil, sun-dried tomatoes and kitchen utensils.

Raffia or “grass” can be used to cushion the items, sealed together with shrink wrap.

Finish your basket with a bow or medal, and you’ve got a product that can be retailed for around $39. Your cost: as low as $12.

Producing How-TO CD’s

The CD is entitled: “This CD Can Make You Filthy Rich”, and It’s about producing how-to CDs - a concept whose time has come. At $15 each, plus $3 shipping & handling, the producer of CD will gross $18,000 selling 1,000 CDs.

Minimum Start-Up: $2,500
Average Start-Up: $5,000
Revenue: $12,000
One Person Business: Yes

The production cost is quite small. The audio program was written by the producer who brought the script to a “Narration House” where a professional announcer does the voice recording using a professional studio.

NARRATION HOUSES

You can order radio commercials as well as other “voice” recorded programs to be produced by so-called “narration houses”.

This business is usually run by a professional announcer who owns or has access to a professional recording studio.

Just send your script to a narration house and have thim record it for you. The amount you are charged depends on the length of your material and the type of tape on which you want your “master copy” recorded. A 30-minute material may cost you $450.

THE INTERVIEW FORMAT

Another popular format for a How-To CD is what we call the “Interview” format.

This is where the author or producer of the CD is interviewed on a subject in which he or she is an expert.

Since this format is prepared on a “question and answer” basis, it is relatively easy to structure, allowing for a more logical presentation of the ideas the author wants to cover.

With this format, the author can prepare 30 to 50 questions which, together with the answers, can be edited down to a 30 to 40 minute program.

Depending on where the interview is produced, this format may cost less than a straight presentation where the bulk of the work uses the voice of a professional narrator.

YOUR MARKET

In a “How-To” project, it is always recommended that you select your topics based on your expertise or access to information.

From a marketing standpoint, it is equally beneficial for you to be familiar with the market to which you expect to market your How-To CD.

If your topic is very selective, use direct mail to market your CDs. If it is an extremely popular topic that can be promoted on TV, use 60-second TV spots or print ads.