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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.

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