Establishing a Business Model for your Running Group

Estimations on the number of runners in Australia vary depending on the criteria set by those gathering the data. When factoring in ‘active walkers’ the figure can balloon to as high as 8 million Australians engaging in running or walking activities, while it is believed that close to 2 million identify themselves as running at least once a week (Ausplay, 2016; Roy Morgan, 2016)

So what do these figures mean for coaches? Well basically there is a market out there that has been underestimated and certainly under serviced by clubs and coaches alike. Obviously it is unreasonable to think that all of these runners are seeking out coaching as we well know the simplicity of running is one of its key draw cards… a pair of shoes, some basic kit and the freedom of the roads or trails is all you need. But the market does exist, and so to the opportunity for running coaches to derive some level of income.

The new century has also seen a number of attitudinal changes that presents a changing dynamic for us coaches. These being the emergence of the user pays society and the acceptance that any coach with experience and education shouldn’t just do it for the love of the sport anymore.

Times are most definitely changing, so let’s take a look at some potential operating models and practical tips for establishing a business in coaching.

We all know there are many ways to skin a cat and when looking around the country numerous models are emerging.

The Independent Coach

Operating as a sole trader there are already many coaches offering services as varied as kids running groups, one on one sessions through to online coaching. Generally registered as a business, these coaches provide all level of support which may include technique work, general conditioning, specific strength and agility and program writing.

Go Run’s Chris White has recently set up one such business, taking the leap into full time coaching and leaving the corporate world behind. Whilst a gamble for Chris, researching the demographics and particular needs of his local community has ensured a reasonably smooth transition into full time coaching. You are able to learn more about about Chris's story in the September 2016 edition of Athletics Coach (Building a Running Business).

The Personal Trainer

A common scenario we find with Personal Trainers is that their clients are entering running events and will look to their Trainer for support and guidance. Some will jump at the opportunity to help whilst for others it will move them out of their comfort zone. We then commonly find the latter group jumping on board the Recreational Running Coach Framework to give them the base knowledge to assist their clients. Once qualified, PTs can provide a great holistic service that includes both the endurance elements runners require together with the all important strength component. So whether working within a studio environment or outdoors, PTs are an ever increasing segment of the coaching market.

Health Studios/Fitness Centres

Diversity is good for any business and providing run groups is now seen as a great addition to other services offered by established studios and gyms. Once again, the provision of a full service is attractive to runners, or the prospect of a running race where other gym members may be involved can be the lure to attract people into running. Existing staff may or may not have the experience and skills to take run groups, so opportunities are certainly out there for qualified Recreational Running coaches to enter this environment.

Run Squads

Small, medium and large running squads are now a regular sight in our major population areas. The size of the squad will often dictate the number of coaches required and also the variety of services provided. Well organised squads provide a valuable service to runners through structured sessions, coaching guidance and program development.

Founded by Sean Williams, SWEAT Sydney is a great example of how a run squad has developed to service the needs of juniors, recreational runners and elites alike with Sean now branching out to form the Melbourne Pack.

Run Squads

Similar to athletic clubs, recreational running clubs are generally run by committees with the coaches being central to the operation of any club. Each individual club will operate differently, some paying coaches for the sessions they conduct, others simply meeting the coach’s costs such as education, accreditation and uniforms.

A common theme amongst the recreational running clubs is developing coaching structures from within, often identifying potential new coaches and tapping them on the shoulder to start their own coaching journey. But that’s not to say that clubs aren’t also on the look out for experienced coaches to join them – particularly some of the newly formed groups who may lack coaches at the right level to provide a good hierarchical structure.

Structuring the Training

There are also a variety of ways that coaches are able to deliver and monetise their services.

Yearly Membership

Applicable mainly within the club environment, a coach may have runners who sign up for a year and then get all services offered within that period. The service offerings may be scalable dependant on the fee paid – a full service may include all sessions, an individual program plus one on one time, while for a lower fee you may only get the sessions and only a generic program.

Monthly or quarterly payments

Common with PTs and gyms, this method doesn’t guarantee a long-lasting relationship but may be more cost effective for runners and lead to greater uptake than trying to lock people into longer term arrangements. Once again, these payments can be scalable based on what’s on offer and can provide the runner and coach a reasonable amount of flexibility.

The Campaign

This is an increasingly popular option for coaches across the industry. With the regularity of running races across Australia, tapping into one particular race and providing a range of services to prepare the runner is a strong model. A campaign fee can be charged, which from a runner’s perspective, means they are not locked in for a long term, with periods of 10 to 14 weeks being common for a campaign. For the coach, the advantage is that if well conducted you can almost guarantee when the runner embarks on a new campaign, generally over a longer distance, you know exactly where they’ll go for help!

Payment Considerations

Death and taxes are the two certainties in life, so be aware of your obligations in terms of structuring yourself, your business or your club.

When considering which of the business models you are likely to adopt, the best first stop for information or advice is the relevant government department in your state or territory. Look at what options are available then go about establishing yourself in the correct manner. It may be that you need an ABN, have to set up a business or incorporate a club.

Following on from this are the reporting requirements. If organising finances isn’t your forte perhaps consider getting an accountant or experienced financial advisor to make sure that this is all done correctly.

The physical act of collecting money also has many options. Getting cash via the coins in the bucket system may work for you, but there are now many electronic payment options that simplify the process for both the runner and coach. Direct debit, direct deposits and Credit Card auto payments certainly make life simpler and are such common forms of payment that consumers rarely baulk from these options now. So consult with your bank or talk to other coaches who may have a payment collection system in place to see what best suits you. Electronic payment systems will attract fees, but the consensus is that it is money well spent when compared to cash handling or chasing people for debts.

There are a definitely a whole range of options available to coaches to establish themselves and become a legitimate business. As mentioned at the start of the article, there are plenty of runners out there and they are prepared to pay for a quality coaching service, so there is no reason to sell yourselves short.