Sales vs. Profit: How Entrepreneurs Can Fuel Long-Term Success

When it comes to running a successful business, sales are undoubtedly important. However, it’s vital to understand that sales alone don’t always guarantee long-term success. In fact, focusing solely on sales could hinder your business’ profitability and sustainability in the long run.

That’s why it’s crucial to learn the importance of balancing sales and profit, and how to appropriately shift towards a more strategic approach to your business.

When we acquired TITLE Boxing Club in 2021, our team invested heavily in infrastructure and the enhancement of operations to support strong unit-economics. We knew how vital it was to start and strengthen personal relationships with each franchise partner, which is why we personally visited over 90% of clubs nationwide.

During these visits, we gathered feedback from the owners and their trainers to gain a deeper understanding of the health of their club and ways we can help them increase their revenue. Since the acquisition, our franchise club’s average revenue increased in excess of 40%, while average profitability for reported clubs increased approximately 150% year over year.

So, how did we do it? Here are some key strategies that TITLE used to teach our franchise partners to drive sales and profit to fuel long-term success.


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Build Trust and Transparency

Trust and transparency are two of the most important aspects of any relationship, whether it be with a franchisee, a member, or employees. As a franchisor, it was crucial after the acquisition to build trust with everyone in our system by being open and honest about the business’ performance and the decisions that are being made. You should create a working environment that promotes a high level of comfortability for people to share their concerns and ideas, and you should always be open to having conversations that can lead to improvements.

The TITLE team took this approach seriously, meeting with the majority of our system and taking their feedback into consideration when making changes. By doing so, we built trust with our franchise partners and created a more collaborative environment that fostered long-term success.

The leadership team rolled out a series of new initiatives to improve both franchise profitability and member experience. We did this by focusing on four vital pillars: effective use of technology, innovation and creativity, marketing, and training and support. This has created a more cohesive brand and instilled a culture of profitability, which has led to significant growth.

Focus on Profitability, Not Just Sales

Of course sales are important, but they shouldn’t be the sole focus of your business. Instead, try to look at the big picture, even if it means sacrificing short-term sales.

Every business needs a strong foundation because it will set the groundwork for your future success – and go beyond immediate success. Building your business to last means creating a solid structure for consistent customer experiences across each and every club. Look for ways to reduce operating costs and increase efficiency through technology and consistent processes, invest in marketing to attract new customers, and build customer retention programs – these are all great ways to help increase profit.

Our leadership team has worked to create systems and procedures to help our franchise partners. We have built TITLE University, an internal program to increase the level of support and training for owners and trainers with online learning and development resources. We have also given new tools and software to our franchise partners that provide crucial data and analytics about their club’s sales and profit.

The great thing about franchising is that you own your business, but are given a playbook and product to implement. Regardless of where you are struggling, with franchising there is an expert who can advise you on each facet of your business – from real estate to recruitment to marketing and beyond.

Be a Challenger

Finally, it’s important for you to challenge the status quo – to regularly reflect and ask your teams where improvements need to be made and where you can execute the business model better. Think critically about your business and how you can enhance and grow it.

This year we have debuted a complete brand refresh for TITLE Boxing Club – we’ve reinvented a historic brand while keeping its legacy intact. The leadership team reimagined our mission and messaging, enhanced programming, added additional technology, created a new look with a modernized color scheme and club design. By doing so, we hope to drive growth, attract new customers, and enhance the member experience. This refresh has breathed new life into our system and created a culture of excellence that is primed for long-term growth.

The SuN Takeaway

Sales are important, but they shouldn’t be the only focus. By teaching yourself to prioritize profitability, building trust, and fostering collaboration, you have the tools needed for long-term success.

It’s not an easy task, but it’s an essential one if you want to create a brand that stands the test of time.

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