How do you grow a health & fitness business and ensure it’s financially sustainable?
Let’s talk about a topic that may not get your heart racing like a high-intensity workout. A topic that is crucial for your business’s health… Financial tracking and projection.
We know how rewarding it is to help clients achieve their health & fitness goals, right?
Projecting cash flow and keeping an eye on key financial numbers, is like setting your health & fitness business up for success.
Let’s look at four numbers you should really be tracking:
1/ Revenue:
Yep, it’s the total money flowing in.
Your fitness business likely has different ways it brings money in. Such as, classes, membership levels, personal training, small group training or courses.
Breaking down the money coming in from each of these sources is important. You’ll see which ones are lifting your profit, and any that may be draining it.
2/ Costs:
Just like you count reps, count your costs. Think rent, hall hire, utility bills, marketing, software, paying your team, and more.
Keeping tabs on these costs is like watching your macros. It helps you stay in financial shape.
3/ Profit:
Imagine hitting your personal best. Well, profit is like hitting your business’s personal best.
With typical accounting practices, profit is the last number you see. It’s what’s left after you take away all the business expenses from what you’ve earned:
Revenue minus expenses = profit.
In the day to day running of your business, it’s a good idea to put profit first. Setting a profit target and projecting for it, is key. Then monitoring it regularly, is how you achieve your money goals.
Just focusing on and increasing the Revenue doesn’t always mean you’ll increase the Profit.
4/ Costs Percentage:
It’s time to check your financial stamina. The amount you are spending compared to how much you’re making? Costs v Income.
This percentage is like your financial barometer. It gives you two important pieces of information. Firstly, if your money is being put to good use. Secondly, how sustainable your business is long term.
The lower your cost percentage, the more sustainable your business is in the long term.
Let’s tackle a blunder I see a good deal of small health & fitness business owners trip over… Peeking at their numbers at the end of the month or when the tax reminders come in.
It’s like only looking in the mirror every few weeks. You might not catch those little changes until they’ve become big issues. Such as:
📉 Missed Money Hacks:
By waiting to look at your numbers, you’re missing out on two things. Spotting ways to make more money and ways to cut down on spending. Just as you wouldn’t miss a workout, don’t miss tracking your cash. It’s just as important!
🚫 Playing Catch-Up:
Reacting to money probs after they’ve become real headaches can set you back big time. Regular tracking lets you see the hurdles ahead. It gives you the ability to adjust your game plan before they trip you up.
📆 Beyond the Month-End Blur:
Relying on a monthly or tax-time checks, is like looking at half your fitness journey. To sculpt a health & fitness business that’s in it for the long haul, you need to see the whole picture. Regular tracking and projecting helps you spot trends and plan ahead.
Just as you wouldn’t skip your workout session, don’t skip your money check-ins. By projecting cash flow and keeping tabs on Revenue, Costs, Profit, and Costs Percentage, you’re setting yourself up for a healthier, wealthier future for your health & fitness business! 💪💰
If you’re revved up to shape a financially strong future for your health and fitness business, but could use a helping hand – let’s chat! I’ve been steering health and fitness entrepreneurs toward more profits for years, and I’m here to guide you too.
I might not be a number-crunching expert. Nor a tax guru. But I get the unique challenges you tackle as a small business owner.
Picture having a fresh breeze of insight rustling through your business goals. That’s where I come in – someone with years of experience, ready to give you a clear, unbiased, outside view.
Imagine standing at the edge of a new path, where the air is full of possibilities and the ground feels like opportunity. That’s the kind of feeling our strategy call can bring.
To book a free, no-strings-attached health & fitness business strategy call, that promises to give clarity and renewed financial energy, hop over to join.thehfbc.com/schedule.
