One question that is attached to most fitness businesses lately is how much do you make a month? I’m pretty fed up with that shit let me tell you.
Why?
Because it allows people to bullshit themselves into thinking they are making big money. When you think you are making big money, then you spend like you have big money. It’s called living above your means, and it’s a one way ticket to the poor house.
One reason Luka and I decided to do coaching with Sam is because he is 100% transparent about what he actually makes from his fitness business. Not what he grosses, what he nets. Because that my friends is the magic number.
Compared to other professions that isn’t shit. We shouldn’t be content with grossing six figures, and we DAMN SURE shouldn’t live like rock stars if you don’t net big bucks.
I’m not trying to say that it isn’t a HUGE accomplishment to grow your biz, because it’s amazing, and you should be commended for your hard work. But don’t break your arm patting yourself on the back just yet.
As an industry we need to get back to reality. The important numbers are how much do you actually keep? How much goes in your pocket?
How do you find out if you are running your business right?
Take the time to do this audit, and honestly you should do this every month. Like my boy Sam always says “You must inspect what you expect.”
You can build huge fitness businesses with all the “bells and whistles”, state of the art facilities, and in the end make much less than someone who runs their business “lean”.
Low overhead- Big bank account is what we should all strive for. Growing a business just to say you are the biggest is straight up RETARDED.
I see people talking shit about making big money that don’t have a penny to their name…….. WTF?
Why do we feel the need to write checks with our mouths that our ass can’t cash?
It’s not a wiener measuring contest here, it’s called life, and if you don’t keep money than you can’t support yourself or your family. You just bought yourself a job with a shit ton of responsibility.
I have been in this game for a long time, longer than most actually. I have seen the changes since my first Ryan Lee Boot Camp. The change from actually being amazing at what we do, to now all trainers want to be marketers, and mini- Dan Kennedy’s. Again… Retarded.
If it were easy to make money on the internet we would all be rich. If it were easy to net a ton of money in your fitness business, everyone would travel the world and do what they want…..
You MUST KNOW YOUR NUMBERS to run a legitimate business. Fitness business should be no different than any other industry. Business is business, and If you aren’t on top of these things than you WILL miss out on actually making money.
Pack Life!
Steve Krebs
www.packfitnessbusiness.com
Word up, its all about the NET
Great post and something that I have always thought myself about guys blowing about the numbers they gross!!
Steve and Sam,
You guys have definitely hit on it. I have often observed the same thing you mentioned, Steve, in how everyone wants to talk about their monthly income and hitting that magic $8,333 and while that’s cool, it doesn’t quite ring right.
You can drop $10k a month on a great facility and another $5k on marketing and I’m willing to bet (unless you’re a total screw-up) that you’ll pull the $8.5k in revenue those guys are looking for… and still be out of business within three months.
I know, I used to think “bigger is better”, too. Now I’ve come to realize that it’s better to absolutely minimize your expenses and squeeze every penny of revenue out of them. When you’ve done that, THEN make a small increase in expenditure and be sure it’s on something that’s going to MULTIPLY your income.
We train our clients to be smart with their bodies, so why don’t more trainers focus on being smart with their business?
Isaac
Great post Krebs. This is something that I am working on. Cutting my expenses and figure out how to increase my bottom line and paying myself first. When I started out, I was paying everyone else but me!
Ian