Sponsored by Fit for Profit
By Shannon Simmons, Special FBA Contributor
Things are supposed to get better in 2021, right? If you closed out Q2 wondering where the profit is, you’re not alone. Gyms and wellness studios across the globe are still feeling the result of the pandemic and we’re all still trying to stay afloat.
While business likely won’t get back to “normal” for years, if ever, you can still run a business that feels good to you and pulls a profit.
Let Go of the Ego
We all want a wildly successful business, but this looks different for everyone. For some, a $500k year is successful and for others, the number is north of there.
The reality is that “successful” shouldn’t be about revenue. It should be about impact and legacy. How will people remember you after you’re gone? How many people can you support? And does it really matter if you have $1 million in revenue when your expenses are $950k?
Reduce Your Expenses
I get it; it costs money to run a gym. But do you really need to invest in the snazzy new equipment right now, or is your current equipment good enough?
Regular maintenance on equipment will help give it a longer life so you don’t have to replace it as often. And your clients will appreciate you and the way you run your business and support them much more than some fancy equipment. There are a lot of other things you can do to reduce expenses too! Stop taking the team out to lunch every day, renegotiate your cleaning contract, get price quotes for new suppliers, etc.
The reality is that “successful” shouldn’t be about revenue. It should be about impact and legacy. How will people remember you after you’re gone? How many people can you support? And does it really matter if you have $1 million in revenue when your expenses are $950k?
Get Rid of Debt
Debt can suck energy out of your day and money out of your bank account. It’s important to get rid of business (and personal!) debt as early as you can so you’re not paying interest and you’re not maxed out on monthly payments.
It may feel like an impossible task right now, but taking care of little chunks at a time will get you to the finish line. Put an extra $100 per week toward your debt to start and increase that amount any time you make an unexpected sale or when you have a really good month. Credit cards and lines of credit are not a good option to stay afloat.
Take Your Profit First
If you’ve been following along on this regular column, you know how we feel about profit. Having a profitable business means you can build a safety net for your business so you never have to rely on credit again.
Taking your profit first means that you’re prioritizing your own wellbeing and that you value your lifestyle--which is probably exactly why you started your business in the first place.
And taking your profit first is possible, no matter what your revenue looks like today. Because when you pull your profit (and your owner’s pay) out of your revenue before you pay your expenses, you’ll make it work. We promise. It’s all about psychology.
No matter what’s going on in the world, your business can thrive...so long as you’re prepared to leave your ego at the door, get a little creative, and truly live the Profit First lifestyle. You’ll be amazed at what it can do to your business and your mindset!
Shannon Simmons is a Certified Profit First Professional and Certified QuickBooks Pro Advisor, specializing in working with fitness and wellness businesses. Her practice, Fit For Profit, helps small business owners grow financially healthy and personally fulfilling businesses.