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Monday, March 17, 2014

The Future Is Now

Yesterday I had a tremendous opportunity to teach a private DVRT (Dynamic Variable Resistance Training) Workshop for a club in New Jersey and a topic came up during the workshop that I always love to talk about...Making their job a career.
When speaking to someone about this, there are a couple of questions that I like to ask them first:
1.  What kind of car do you want to drive?
2.  What type of house do you want to live?
3.  How many children do you want to have?
4.  How many vacations would you like to take a year?
Once we have received all their answers...I than ask them how much money do they have to make in order to make their dream a reality.  The answer that I always get is....A TON OF MONEY....and my response to it is...YOU ARE CORRECT and how do you plan on getting there.  This is where the conversation stops...People know where they want go, but most of the time do not know the exact route that it is going to take in order to get there.
So here is how we are going to form the exact route to get them where they would like to be:
If your goal is to make $75,000.00...Lets breakdown the exact numbers that it would take to get there:
One-On-One Personal Trainer
Goal:  $75,000.00
Revenue Per Month (Goal / 12 months) = $6,250.00
Revenue Per Week (Revenue Per Month / Number of Weeks-4) = $1,562.50
Number of Sessions Per Week (Each client pays $80.00, but the trainer only gets $40.00 per session):  39 ($1,562.50 / $40.00 = 39 sessions per week
Number of Session Per Day (week consists of 6 days because you want to be nice to yourself and give yourself a day off) = 6.5 sessions per day
Now if you break down these numbers, you realize that it is not impossible to make $75,000.00 in one year, but now we have to look at the reality of it.  We did not take into account holidays, snow days, client cancelations, clients on vacations (because we all know that if you do not train your clients...they do not pay you), and please make sure that you and your family do not have any type of emergency because you can not cancel any sessions for the next 365 days...Now our goal does not look as easy to attain as it did a couple of minutes ago.
Now that reality has stepped in and we have figured that it is going to be very difficult to achieve our goal with the plan that we are currently on...We have to think about what numbers can be changed in our breakdown.  Remember our goal is to make $75,000.00:
Increase the number of months in a year...CAN'T
Increase the number of weeks in a year...CAN'T
Increase the number of days that you work during the week...The answer is that you can work 7 days per week, but lets not establish a plan to burn you out...Let's just say, for argument sake, that you can not work more than 6 days per week.
The only thing that we can change is how much money we make per hour.  My goal is to find you a way to not just make $40.00 per hour...If I was able to find you a way to make $60.00, $80.00, or OMG...DO I DARE SAY IT...$100.00 per hour...Would that make achieving your goals a lot easier...ABSOLUTELY!!!!
The answer to our question is Small Group Personal Training 
If you would like to find out more about how I completely changed my business to what it is today at Next Generation Training Center, you are going to have to stay tuned to next weeks version of Next Generation Fit Pro's "Mo Money Monday"
See you guys next week

Monday, March 10, 2014

Next Generation Fit Pro "Money Makin Monday" Tip of the Week - 03/10/14

"Looking Into Your Fit Biz Numbers"

Whether you are taking business tips from Thomas Plummer, Alwyn Cosgrove, or me...The one thing that we will all agree on is that you need to you what your foundation has to consist of before you even think about starting your own Personal Training business or opening up your own facility. 
 Most fitness professionals that are looking to take the jump, often think that because they have 20 something clients and that they have a bunch of people that have promised them that they would follow ( not count on anyone until their name is on a training contract) that they are ready.  Clients are obviously important because without clients than you will not have any income, but just as important is the fact that you need to know your numbers that are not only going to help keep your business afloat, but also allow you to turn your job into a career...Allow you to make an income that will allow you and your family to live the life that you have always desired to provide for them.
Here is Part 1 of what I call "Looking Into Your Fit Biz Numbers":

1.  Base Operation Expense (BOE)
This is the amount of money for you to pay your bills.  You need to know how much it costs to run your facility each month.  You also need to pay attention to when you BOE increases.  Increase in BOE = Decrease in profits.

2.  Cash Flow
Cash flow is how much money that you bring in to the facility in all of your different revenue streams.  Every single day I look at how much we brought in and are we on track to hit our weekly and monthly goals.  If you are behind, you better figure out a way to take action on one of your plans that are in the works that could bring in additional revenue.

3.  Receivable Base
This is money that is guaranteed to come in the future from your current clients.  This is not a guess...This is a fact and can not be based on if Mrs. Jones pays...These MUST be contracts and guaranteed revenue. 

An example of this is EFT (Electronic Funds Transfer) for membership dues.  We sign everyone up to a 6-month or 1-year membership and guarantees us income every single month.

4.  Daily Numbers
I know that in Cash Flow, we discussed setting goals on a weekly and monthly basis, but I am really a BIG fan of micromanaging every day that we are open for business at Next Generation Training Center.  I want to know how much money I have to bring in every day to make sure that our weekly/monthly/yearly goals are met.

Figuring out your Daily Numbers are easy...First you have to figure out what you want to make each month.  Once you have that numbers, divide it by the number of days in the month and than GO GET THAT NUMBER and don't stop until you get it.
Stay tuned next week for Part 2 of "Looking Into Your Fitness Biz Numbers" where we will talk about profit mode, session numbers, and talk about some of the percentages that we look to achieve at Next Generation Training Center.