Retaining Members a Month at a Time

Retaining Members a Month at a Time

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Let’s say you’ve got a prospective member who has shown a lot of interest in your facility. You’ve given her a tour, offered her a free day pass to try the place out, and even had the highest-performing member of your sales team sit down with her for a full twenty minutes, chatting like an old friend and answering a slew of questions. Yet, when it comes time for the prospective to sign on the dotted line, she balks—she just doesn’t feel like she can commit to a year-long membership.
Does this sound like a familiar scenario? With members’ increasingly hectic work lives and a tight economy, it’s happening more and more at gyms, health clubs, and fitness centres around the country. Something else is also happening more and more to directly counteract the phenomenon: Clubs are starting to offer month-to-month membership with greater frequency than ever before.
How, you might ask, could a club stay operational with month-to-month memberships? The better question might be: How could a club stay operational without them? As Geoff Dyer, Founder of AussieFIT in Columbus, Ohio, puts it, “Some 25 percent of all members become inactive within six months of joining a club, and that figure doubles, rising to 50 percent, after one year. Unfortunately, one of the black eyes our industry has earned is its reputation for locking inactive members into long-term retail installment contracts.”
Dyer recently discussed month-to-month memberships on IHRSA’s blog. These options are better, Dyer argues, because they allow the industry to focus as much on member retention as it does on new member acquisition. “If our clients can leave at any time,” he says, “simply by providing written notice, then we’ll likely be much more attentive to their level of satisfaction with our service, programs, and facility upkeep.” That is, allowing for month-to-month memberships will force health clubs and similar facilities to improve the services they provide—the incentive for keeping members happy will increase, and therefore the efforts to do so will increase. As a result, more customers will join. In the end, Dyer says, even if members leave the facility at a faster pace, the outcome can still be a net gain.
Jarod Cogswell, Founder of Enterprise Athlete and President of Fit Academy, Inc., agrees. “The challenge for you,” he says, “is to prove your club’s value on a month-to-month basis, which promotes and produces a higher level of services. It motivates your staff to focus on service, cleanliness, and member retention because every visit counts, and there may not be a second chance.” Cogswell acknowledges, this reality places a lot of pressure on the sales process, because if clients can leave at any time there’s a greater chance you’ll lose them. “You therefore need to be selling at the same or higher rate than the rate of your membership losses,” he says.
Nevertheless, Cogswell believes the month-to-month option can reap rewards for a club. “When people understand that they can leave whenever they like,” he explains, joining your club becomes a comfortable decision—both psychologically and financially—that will tend to drive the volume you need to be profitable.”
Another critical factor to consider is what kind of fitness membership software you are currently using to track membership data. The right club management software will supply you with the ability to access robust reporting as well as the ability to set up auto-billing or auto-pay for membership payments.
So maybe it’s time to consider how you could implement month-to-month memberships at your own facility. The key to success with month-to-month is providing your members with the incentive to return, and instituting such a plan could force you to revisit some of your systems and processes. This presents short-term challenges, but the long-term benefits could greatly offset those challenges.

Working Out Around the Season of Insanity

Working Out Around the Season of Insanity

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It’s that time again, the time I like to refer to as the Season of Insanity. Every year around this time, things become outrageously chaotic. At work, everyone is scrambling to finish projects before the end of the year, which inevitably, all end up on my desk at the same time. At school, there’re a sudden slew of no-school holidays, plus professional development and parent-teacher conference days off, while the kids are all tired from a couple months of steady homework, and coming off of Halloween-candy sugar highs. Meanwhile, in the span of three weeks, I’m invited to more events than I’ve been all year. Then there’s the holiday shopping, cooking, planning, and wrapping to contemplate…
What this means for fitness centres and sports facilities is that client visits slow down. Fewer client visits equal less revenue. This can either be in the short term, where you’re missing out on class payments or members aren’t spending on personal trainer sessions, massages, and other extras; or in the long run, where a client becomes less likely to renew her membership when she goes for a month or two without making it to the gym. What can you do to help your already busy clients squeeze in visits to the gym when their schedules become even more packed?
First, remind them that the most important time to maintain gym-going habits is now, when stress increases and tempting, sugary foods are abound. When you’re in the thick of too much to do, it’s easy to forget that making time to work out actually increases productivity. Hang up posters reminding members that this is the case, and reach out via email with similar messaging. A great social media campaign would be one that features brief videos of clients who come regularly despite their hectic schedules—hearing them explain how gym-time makes work-time easier could help motivate members who feel stuck in the grind.
Consider extending your hours for the season. Then, if you’re able to do so, widely and proudly advertise your extended hours.
If possible, have your instructors or trainers develop abbreviated workouts. Give these a snappy name, something like Twenty-Minutes-In-and-Out. Again, advertise heavily: Let everyone know that you’ve got a new program created specifically to address the trouble we are all having right now, in making time to exercise. High-intensity interval training workouts are a relevant thing to plug right now: They’re still receiving attention for their dramatic results and the health benefits they produce, and they’re perfectly suited to short workouts.
Finally, craft a message specifically for members whose records indicate they haven’t made it in for a while. If you have a fitness concierge, have him or her send the message personally, with an invitation to call and discuss any scheduling difficulties clients might be facing. Offer to help devise a plan. You won’t hear from everyone, and there may well be a client or two who disappears and never renews. Chances are though, you’ll reach at least a handful who will feel grateful for you reaching out, and who will re-apply themselves with new vigor. Now get to work.

Creating Classes for the Cool Kids

Creating Classes for the Cool Kids

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When you think of exercise classes for the 8- to 13-year-old set, you probably think “ballet” and “karate.” You probably leave instruction in those fields to the kinds of niche studios that have been catering to children’s physical activities for decades. But things are changing in the world of kids’ calisthenics. Classes are no longer limited to the traditional ballet and karate. Now, kids are engaging in workouts that have fueled adult fitness for a while; such as cycling, Zumba, and CrossFit. Those workouts are happening not at kids’ boutiques, but in health clubs, gyms, and fitness outlets that are used to serve an adult population almost exclusively. The New York Times recently published an article about the phenomenon (and you know something is becoming a trend if the New York Times is reporting on it). The article features several gyms of various sizes and orientations that have launched classes created for adults, which were then subsequently adapted to meet the needs of smaller, more energetic types. Exceed Physical Culture, in New York City, is one of them.

Since 2012, the gym has offered adult classes involving jump ropes, monkey bars, and kettlebells. Soon after opening, owner Catherine Rocco discovered that parents seeking after-school activities for their kids were bringing them in and expecting to sign up. Rocco and her co-owner responded to that demand by creating a class for ages 8 to 13. Very soon after, they found themselves offering five classes per week for children only, and another for families on the weekends. AKT in Motion is the second company that offers classes just for kids. Based in New York, the dance cardio studio launched a regular eight-week session for children this past spring. Capitalizing partly on shrinking physical education time at school and on those late-afternoon hours when gyms and similar venues tend to get quiet, companies like these are finding kids eager for physical outlets that are not necessarily team or competition focused.

They’re finding parents eager for activities that keep their children happy, busy, and physically fit. That last point is key: In an era when obesity among children and teens is at an all-time high, parents want to get kids hooked on exercise early. According to the Times article, many parents take that a step further by enrolling their kids in classes at a gym. Parents are trying to convey a sense that getting a membership at a place where you can work out regularly is simply a normal part of life.

This is good news for gyms, health clubs, fitness centres, and other alike. Children’s classes pull in no less revenue than adults’ classes! In fact, they create a whole new revenue stream because they engage a separate segment of the population. Also, they offer venues the chance to create loyalty among a clientele that might develop those early gym-going habits their parents are hoping for and then stick around for a long time. The upshot? If you haven’t yet opened your doors to young ones, it’s time to sit down and start strategizing about how you’re going to do so. Start small, like the way Exceed Physical Culture did: Launch just one class, but have a plan for expanding. Because chances are, you’ll need to do so pretty quickly.

Time To Partner Up

Time To Partner Up

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Recently in this space, I talked about rewards programs—how much I love them, how popular they’re with consumers in general, and how well they can work for the sports and fitness industries. Now I want to take on something related and equally powerful: partnership programs. Do you partner up with local businesses? If not, it’s time to consider how doing so might benefit you, your clientele, and your whole community.

As with rewards programs, cultivating partnerships with local businesses is a great way to boost member loyalty by increasing the value of what you have to offer. It works like this: Your gym, sports venue, training center, fitness facility, or health club. Partners up with local businesses that agree to offer discounts when your members present their membership cards. In return, you offer those businesses something: maybe the chance to advertise to your clientele, maybe free memberships for their employees, maybe discounts at your facility for their customers.

Club Business International offers a couple of examples to show how such a program benefits all parties involved. Gainesville Health and Fitness Centres (GHFC), with three clubs in Gainesville, Florida, has been operating its Members Savings Program for about forty years. All 27,000 GHFC members have the option of presenting their membership cards to more than 100 local firms that provide discounts to the members. Debra Lee, the company’s director of marketing, explains that when Joe Cirulli,owner and president, was brainstorming ways to help customers cut the cost of their gym memberships back in the 1970s, he landed on creating business partnerships. “His idea,” Lee told Club Business International, “was to identify local businesses that [club members] used on a regular basis, and to offer discounts that would help offset the cost of membership.” In return, GHFC subtly advertises partner businesses to club members.

Miramont Lifestyle Fitness, in Fort Collins, Colorado, is another club with a list of partner vendors. Partners provide discounts to Miramont’s members, along with special discounts that occur quarterly, to coincide with the club’s member appreciation days. In return, Miramont provides club passes for partners’ employees and advertises their businesses via newsletters, TV , andQR codes.

When do you let members know about the partnership opportunities? The answer, when they’re trying to decide whether or not to sign up. That’s when the added value that these programs bring to your facility will kick in—prospective members will realize they’re getting so much more than just a gym membership. As for existing members, they’ll never want to leave.

Create such a program by first seeking out local businesses likely to serve a clientele similar to yours: health food shops, hair salons, spas, sporting goods stores. Make sure your top sales person is the one approaching potential partners. You want someone who conveys a real sense of being invested in the program and in your facility, someone who can really make the value of the program clear. Finally, hammer out the details. This includes, what exactly will the partnership consist of, how will you benefit each other, give the program a name and start advertising it widely on social media, via email blasts, and in-house. Just make sure you’re ready to launch it right away, because your members will jump at the chance to sign up.

Helping Your Clients Through Injuries

Helping Your Clients Through Injuries

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The other day, a friend of mine told me an interesting story. She’s no athlete, but for 2014 she made a New Year’s resolution to get in shape. She starting running three days a week and she joined a gym. Against all odds, she stuck with her resolution, and ten months into it she looks great and says she feels better than she ever has. Except for her ankle. About three months after she launched her new workout routine, my friend twisted her ankle, and it’s never been quite the same.
I asked her how she manages to stay committed to an exercise program even with an injury. Wasn’t she tempted just to quit? This is where the interesting story comes in: She was tempted to quit, my friend said. She was on the verge of doing so. But the staff at her gym encouraged and supported her so much that she felt she couldn’t.
Shocking, isn’t it? But it shouldn’t be. This is how it should work. After my friend left the ER months and months ago, she headed straight to her gym. She had reserved a spot in a spin class for that morning, and she couldn’t imagine not going through with the class (even though her doctor had told her to keep her foot up and rest). By the time she reached the front desk, though, my friend broke down—her ankle clearly hurt too much for a spin class that day. My friend feared it hurt too much to allow for exercise ever again, and, through tears, told the front desk staff she wanted to cancel her membership. The receptionist came around from behind the desk and gave my friend a hug. She listened to the problem, and then walked her down the hall to the office of the gym’s Fitness Concierge.
The concierge told her to relax. “She said it was okay to miss a class. She said it was no big deal. Then she made me tea and handed me a chocolate chip cookie. She claimed it was a healthy version of the standard recipe, but she said it with a wink, and then I realized that it’s okay to miss class for a day, or even a week. It’s okay to eat a cookie if it makes you feel better. Because of her words and kindness, a great rush of relief went through me and I could think clearly again. Somehow, I needed her permission to not be a perfect exerciser.” The concierge also pulled over a chair so my friend could put her foot up, told her she could stay there in her office for as long as she liked, and started cracking jokes. “Soon she had me laughing about people falling over during aerobics classes,” my friend said. She squeezed her in for a consultation with a personal trainer who had experience dealing with injuries and with a physical therapist. The trainer gave her tips for adapting her workout. The physical therapist showed her simple stretches she could do to speed up her recovery.
I love this story. I love that my friend’s gym offered immediate, personalized comfort and care—and that it was true for everyone from the front desk staff to the physical therapist. I actually called her gym and asked for a tour, even though I’m fond of my own facility; I’m considering switching now. How are things at your facility? Does your staff know how to help clients handle injuries? Can they reassure an injured client and help him or her figure out how to push ahead with workout goals safely? Can they offer something we don’t usually expect from places of business—a bit of mothering? These things could go a long way toward boosting member retention and gaining new clients. Maybe it’s time to gather everyone together for a lesson on sympathetic responses.

Supporting Your Female Clients

Supporting Your Female Clients

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You’ve probably heard the saying before: “Women hold up half the sky.” But, in fact, they may hold up most of your fitness facility. Research suggests that women drive 70 to 80 percent of consumer spending worldwide. Moreover, women, much more than men, engage in word-of-mouth publicity—they talk about their experiences with businesses, products, and service-providers, and, in their social circles. They hold a great deal of influence over the way others choose to spend money. Given that women also purchase fitness-related products and services more often than men do, what does all this mean for your health club?
It means it’s time to design ad campaigns better geared toward them. Here are a few tips for doing so.
First, put away the pink paint, lacy towels, and flower arrangements. The way to show women that other women are comfortable using your gym is not to advertise their presence through pretty embellishments but to highlight the fact of their presence. Using posters, brochures, and social media postings that show women looking serious about their workouts and happy to be in your facility will suggest that you cater to their needs. Supporting breast cancer awareness and making sure members and potential members know you do shows that women’s issues are important to you. Offering—and heavily advertising—childcare programs demonstrates that your club understands the logistics many women must juggle.
Loading your marketing materials with images of women is not enough, however. You must also create real programming for women. Do you offer women-only high-intensity interval training classes, extra women-only swim times, or self-defense classes for women? Do you offer co-ed basketball leagues or squash tournaments? Make your programming for women solid, and then talk it up as much as possible. Highlight your offerings on social media. Send emails. Offer prospective clients chances to take part for free, and invite current members to bring a friend at no charge.
On that note, make sure you’re advertising in establishments and publications that cater to women. Is there a clothing boutique or nail salon near the gym? Ask if you can hang flyers announcing a new women-only cycling class. Partner with local businesswomen’s associations and request that they include mention of your facility in their next newsletter. If you have branches nationally, consider buying ad space in magazines like Self, Women’s World, and Women’s Health.
Finally, engage the advice of the experts. Ask the women in your club what kinds of services do they want, then do your best to provide those services, and let everyone know that you’re doing so. Don’t forget to go to the official experts, too. Some marketing consultants focus exclusively on strategies for marketing to women; they can point out weaknesses in your existing campaign and show you how to polish it up for the demographic. Plenty of books and articles on the subject exist too. I’m not suggesting, by the way, that you forget all about the men—but chances are that if the women are happy, the men will be too.

Youth Obesity and You

Youth Obesity and You

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Earlier this year, reassuring news about childhood obesity emerged: For 2- to 5-year-olds, rates have plummeted 43 percent in the past decade. The data comes from a major federal health survey and is the first indication that America may be turning the corner on the childhood obesity epidemic. Given evidence that children who are overweight or obese at 3- to 5-years old are five times as likely to be overweight or obese as adults, this is very hopeful news.
But we’re not in the clear yet. It’s still the case, according to the Centres for Disease Control and Prevention (CDC), that 20.5 percent of 12- to 19-year-olds—or 1 out of every 5 kids—are considered obese. Moreover, the CDC reports, only 12 percent of kids ages 12 to 15 are getting the amount of moderate to vigorous physical activity recommended by federal guidelines: 60 minutes each day. The consequences of childhood obesity, or simply of too little activity in childhood, can be disastrous later on: cardiovascular disease, diabetes, bone and joint problems, sleep apnea, poor self-esteem, stroke, cancer, osteoarthritis—the list goes on and on.
Happily, health facilities, and in particular sports facilities that train youth, can make a big difference. First, help spread the word: Send newsletters, post on social media, hang up flyers in your facility, put up a billboard-sized sign in your window—however you do it, get the word out there that there is a problem. Use the numbers the CDC provides (they’re sadly impressive—for example: In 2010, more than one-third of American children and adolescents were overweight or obese). Also mention the good news: The fact that obesity rates for young children have dropped can be offered as a source of hope, and as motivation to continue making improvements.
Also, explicitly describe how your facility helps combat the dire figures. List the classes you offer that keep kids moving for at least 60 minutes; highlight any special deals parents can take advantage of. Invite new students in for free trial classes. Post videos showing kids having fun at your facility. If you’re a health club or fitness center that does not cater to kids, get the word out there anyway—and then explain why it’s crucial for parents, teachers, and other adult role models to stay in shape if they want future generations to stay in shape.
You can also consider doing what AussieFIT, a health club with two venues in Ohio, has done. In response to the CDC’s 2012 report, AussieFIT’s founder, Geoff Dyer, created a fitness initiative for local teens, offering free summer memberships to kids between the ages of 12 and 17. If such a program is impractical for your facility, perhaps there’s other programming—even if only educational workshops—you can offer.
If you help share the information that’s out there, show your members and clients (and potential members and clients) that you care, offer ways to make meaningful changes, and provide a free class or lecture to get folks started, you’ll be well on your way to both making a difference and boosting business.

Some Changes In Credit Card Processing

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As of October 17th, 2014 Visa and MasterCard will be enforcing revised standards in the handling of declined transactions for card not present activity.

MasterCard’s requirement is intended to discourage repeated and excessive resubmissions by merchants of certain types of previously-declined transactions, which can burden issuer processors’ systems. Generally, such practices occur with preauthorized recurring or installment transactions. Merchants are permitted to resubmit such transactions, with limitations, if initially declined; however, transactions that are declined as lost, stolen, capture (pickup) card, or invalid will never be eligible for a subsequent issuer approval and repeated resubmissions can be costly for issuers.

Enforcement of MasterCard’s requirement will occur by means of issuers submitting non-compliance complaints to MasterCard in response to abusive authorization practices of this nature. MasterCard will not systematically enforce, and the rule is not intended to obligate a merchant to monitor and inhibit cardholder-initiated, standalone purchases from being submitted for authorization based on prior activity associated with the account number.

The risk of being fined by MasterCard is present, if MasterCard is advised that a merchant continues to resubmit previously-declined transaction and does so in an abusive manner.

What is changing?

The revised standards dictate that in the event of a declined transaction, merchants are no longer permitted to resubmit transactions that have declined for any of the following decline reasons:

  • Pickup Card
  • Invalid Account Number
  • No Such Issuer
  • Pickup Card – Lost Card
  • Pickup Card – Stolen Card
  • Expired Card

Please Note: If an updated expiration date or account number is obtained from the customer, the transaction may be resubmitted for authorization using the updated account information.

Enforcement

Enforcement will consist of issuers submitting non-compliance complaints to Visa and MasterCard in response to abusive authorization practices that do not adhere to the revised standards. It is important to note that MasterCard will not systematically enforce, and the rule is not intended to obligate a merchant to monitor and inhibit cardholder-initiated, standalone purchases from being submitted for authorization.

Please Note: Not adhering to the revised standards could result in fines from credit card companies, starting at $1,000.

Healthier Planet, Healthier You

Healthier Planet, Healthier You

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I’ve talked about the Green Sports Resource Directory in this space before. Created by the U.S. Environmental Protection Agency, it’s a collection of online resources designed to help sports facilities, leagues, and college and university teams reduce their carbon footprints. With inspiring success stories and links to organizations devoted to helping sports-oriented businesses make environmentally sound decisions, the website illustrates the benefits of greening sports. It also links to tools that can help facilities and teams track and control their energy consumption, like EPA’s Energy Star Portfolio manager, and to lists of products that perform well and are cost efficient—while also being safer for the environment.
Bottom line: It’s a great resource, it can save you money, and it helps make a better planet. Already, sports outfits across the country are making a commitment to protect the health of employees and clients and to improve the environment. The Seattle Mariners have used energy efficiency techniques to reduce their electricity consumption by over 90 percent—and to reduce energy costs by $50,000 per year. Brooklyn’s Barclay’s Center earned a LEED Silver certification by the U.S. Green Building council last year, and it has challenged fans to “be green” by using public transit, recycling, and reducing paper waste associated with tickets. In West Columbia, South Carolina, a former dump and landfill site was transformed into a recreational area, with a mini-golf course, a driving range, a practice golf course, a ball park, and—I love this detail—a recycling center.
Chances are your facility, league, or team already has taken some steps toward becoming greener. You reuse, reduce, and recycle; you advise your employees not to print out emails unnecessarily, and you communicate with your clientele virtually more than on paper; you choose machines that use energy efficiently. But probably you can take your efforts further. Can you invest in solar energy? (I know a horseback-riding training center in upstate New York with state-of-the-art stables, a vast indoor arena, 34 acres of beautiful land, and a big, old-fashioned farmhouse, where, because of solar panels on the roof, the electricity bill comes to $19 per month.) Can you use products that conserve energy? Can you clean without harmful chemicals? Can you boost efforts to get everyone in your facility—managers, employees, fans, members, and clients alike—wasting less and conserving more?
Moreover, can you effectively advertise your efforts? Because in addition to saving money and making the world safer, operating a greener business can attract the attention and loyalty of consumers whose concern about climate change and environmental health lead them to make decisions based on green practices. Want new members, customers, or clients? Reduce your energy consumption and let everyone know you’ve done so.

Reflect on Your Business Decisions

Consider Your Business Decisions

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If you own a health club or sports facility, you know that about 98 percent of the job consists of making decisions. In any aspect of life, decision-making can be challenging, but in the context of running a business, it can be especially nerve-wracking. The success of the business, your livelihood, the livelihood of others—all of these things depend on you making sound decisions (and, when we’re talking health clubs and sports facilities, the health and happiness of a lot of people also can depend on those decisions).
IHRSA’s blog recently ran an interesting piece featuring three health club owners and the business decisions they’re most proud of. Luke Carlson, CEO of Discover Strength in Plymouth, Minnesota, said that he’s proudest of his club’s decision to make the development and treatment of staff its highest priority. “Our increases in revenue always seem to be linked to our investment in our employees,” he says. “We started with only part-time employees. As soon as we created full-time, career track, salaried positions, our revenue dramatically increased…. When we gave our staff budgets for travel and continuing education, our revenue increased even more. Every time we make an effort to improve our staff and demonstrate that we care about them, they seem to be increasingly effective with our clients.”
Floriane Chatron, Founder of Aquaflorès in Paris, France, says she is proudest of launching an aqua-wellness facility in a difficult market with many low-cost competitors. “I am proud to have taken up this challenge, which, to most observers, seemed doomed to fail,” she says. And Jason Cerniglia, owner of Hoover Fitness in Hoover, Alabama, said he’s proudest of his decision to write an exercise and diet book. “First,” he noted, “I can help people anywhere and anytime, regardless of whether they are members or not. Second, instead of paying for a one-hour diet consult, people can buy the book and get the information they need. Third, it’s a great retention tool for my club because it helps members get results. Fourth, it can be a retention tool for other clubs. Most of all, the book can help deconditioned people, because it teaches how to get results and still enjoy life.”
While each of these decisions offers good ideas to other business owners (definitely prioritize your employees’ well being, don’t hesitate to launch something you believe in even if no one else seems to—and maybe it’s time to start thinking about writing a book!), the lesson here really is that, as a health club or sports facility owner, you can benefit from taking a moment to reflect on business decisions you have made. Which one are you most proud of? Why? Which one has been the least effective? Why? Jot down answers to these questions, and then take some time to analyze the processes you used while making your best decision and your worst one. Were other people involved or was it a solo choice? How did you conduct research before making the decision—or did you? Do your colleagues agree with your assessment of your best and worst decisions? Do they have ideas for how to continually make good ones? What have you learned from the decisions you’ve made?
The thing is, decision-making is tricky—enough that it’s its own field of study within cognitive science research. No one really understands how it works. The more familiar you are with your own decision-making processes, the more likely you are to have an immediate answer (or so many immediate answers that you might have trouble deciding which one to give) the next time someone asks you what business decision you’re most proud of.