Only after being reborn did I realize how fascinating the world of the rich is.

Since handing over the management of his chain of gyms to Tang Shanshan, Tang Shanshan's decisive and efficient businesswoman style has been on full display, and she has begun various calculations and data statistics.

That day, Tang Shanshan handed Li Xiaofeng a financial statement, which startled him.

"Weren't our chain of gyms making a lot of money? How come the profit margin has dropped so much?"

"That's because there was a problem with the previous statistical methods."

"what is the problem?"

“Previously, our operating revenue was calculated based on cash income, but this is unreasonable. For example, our annual card should be considered as income for 12 months, and then divided into 12 parts, distributed in each month.”

Our previous calculations were done over a month, which made it seem like revenue was skyrocketing and profits were high in the early stages, but in reality, they weren't that high.

This calculation method seems fine at first glance, but its inconsistent and fluctuating nature can lead to significant misjudgments in our strategic decisions.

Seeing Tang Shanshan's serious expression, Li Xiaofeng nodded.

What she said makes a lot of sense. In my previous life, many seemingly thriving gyms went bankrupt because the owners made a misjudgment due to the surge in revenue in the early stages.

Thinking that gym owners had huge revenues and profits, they began to expand wildly and sell out memberships like crazy. In the end, they couldn't withstand the backlash and were forced to abscond with the money.

Then, Tang Shanshan continued, "I had people conduct market research in these cities. Currently, our gyms are mainly medium-sized gyms, but I found that the larger the gym, the lower the utilization rate of the equipment."

Therefore, I suggest that our gyms, apart from establishing large gyms in a few high-traffic areas and setting up a few branded flagship stores, should primarily consist of small gyms.

"Go on to share your opinion!"

Tang Shanshan nodded and said, "The gym business has a very low barrier to entry, and the competition will inevitably become more and more intense in the future. Business may be good today, but it may not be tomorrow."

Therefore, it will be inevitable that these gyms will need to be restructured in the future, eliminating those that are losing money and selecting better locations and areas.

"A small boat is easier to turn around; a small gym means less loss when it closes down. Also, when opening a new gym, we're less affected by the availability of space, since large locations are hard to find."

Li Xiaofeng gently stroked her large belly and said with a smile, "I've made the right choice in entrusting the chain of gyms to you."

However, now that your belly is big, you need to rest more. Don't sacrifice your health and your baby's health for the sake of earning a little money!

Tang Shanshan playfully punched him lightly, saying irritably, "You're worried about the baby's health, aren't you!"

"Both of you are worried. If you're okay, the baby will be okay too. This is our first baby, so don't take it lightly. Don't be shy about delegating tasks to your subordinates!"

"Don't worry, I know the priorities. Based on the current calculation method, plus the fact that many stores are newly opened, and including the thirty stores in Shanghai, the total investment is about 8000 million."

The total profit for the first two quarters of this year was approximately 2000 million. I plan to invest all of that profit to expand the investment scale, and I expect the total profit for this year to reach 5000 million.

Li Xiaofeng nodded and smiled, saying, "It's already very good. In Shanghai, the Qin Group is going head-to-head with us, opening many large gyms and taking away a lot of our business. I'm already very satisfied with this kind of profit."

Tang Shanshan smiled confidently and said, "Once these gyms' businesses stabilize next year, their profit margins will see a significant increase. Their practice of offering customers two-year, five-year annual memberships, and even lifetime memberships, is like drinking poison to quench thirst."

To make this business sustainable, it's essential to take a steady, long-term approach and cultivate customers' fitness habits as much as possible, rather than simply misleading beginners.

I believe that if we want our business to last, we need to reduce the number of annual memberships and offer more single-visit and monthly memberships to reduce unnecessary burdens on our customers.

Many fitness beginners buy monthly or even yearly memberships but never actually come to the gym. While it may seem like we're getting a good deal, we're not retaining customers. The right way is to retain those who genuinely want to work out and build a stable business!

"You're right. The most important thing for a gym business is stability. I started this gym business by chance, and later it was to complement other businesses and obtain a stable cash flow."

Of course, this business is still in the expansion phase, and I don't care about the small profits it generates. You can just invest it all.

Go ahead and do it. As long as you do this business well, I will provide you with a continuous stream of financial support to turn our gym into a nationwide chain.

Tang Shanshan pouted and deliberately looked unhappy, saying, "You said before that you would support me to go back to being a program host, but now you want me to do business for you. I feel like I've been taken advantage of."

I originally got together with you hoping to marry a rich man and have you support my career as a TV host. But you fooled me, and now not only can I not work as a TV host, I'm also stuck earning money for you while I'm heavily pregnant.

Li Xiaofeng said with a grin, "I had no choice. Plans can't keep up with changes. That program belongs to the TV station. I'm just an investor, so I don't have the final say. It's not a big deal if we lose it."

The current sports event environment in our country has not yet taken off, so having them help warm up the market in advance is a good thing for us.

Don't worry, once this area develops, I will definitely organize a national sports event, using it as a driving force to create our own combat sports club.

Here's what I think: gyms are currently mainly focused on fitness, but in the future they will develop into comprehensive gyms, incorporating not only free fighting but also some traditional martial arts.

I know that these traditional martial arts have largely lost their practical combat effectiveness, but many of their techniques and training methods are still excellent for fitness.

Tang Shanshan smiled and said, "The idea is good, but whether it can be implemented still needs our continuous development and verification. As far as I know, if we want to run a free fighting club in the long term, we need to train young boxers, which is very expensive."

Let's focus on getting the gym up and running first. If things don't work out, we can use the profits from the gym to subsidize the freestyle fighting club.

Li Xiaofeng smiled and nodded: "I didn't realize before that you had a knack for business operations. I've struck gold!"