One of the great things about the fitness industry is the many different ways to deliver awesome results to our clients, and the many different ways to approach programming: sets and reps, intervals, and cross-training, just to name a few. But we call it program design for a reason. We assess our client, discover what areas need attention and priority related to their goals, and design a plan to get them from where they are to where they want to go.
Do you take the same approach with your business? Do you follow the same careful methodology of assessment, analysis and action plan when it comes to developing a healthy business as you do when developing healthy bodies? If the answer is “no,” here are three things to start assessing now to begin that process:
Debt: There are a couple primary schools of thought when it comes to carrying debt in your business. The first says debt is necessary but must be managed well. The second says the price of debt is higher risk in an economic downturn, reduced profitability, and less flexibility to direct your cash when opportunity arises. Financing a “great idea” with a loan has ruined many a company. Regardless of how you choose to operate your business, you must assess your debt load then create a structured plan to pay it down.
Expenses: Every business has expenses. Payroll, rent and utilities are a necessary reality for most. But over time, other expenses are prone to “drift.” We keep subscriptions we don’t need or use anymore, or we never take a look at the price of cell phones and cleaning services. On a quarterly basis, list all your monthly subscriptions and autopay expenses, then assess them based on the following categories: necessary but could be replaced with a less expensive alternative; desirable but not necessary; or unnecessary for delivering your core offering. Keep what you need, get rid of what you don’t.
Profit: When assessing the profitability of your company, don’t fall for the “paper tiger.” Your profit-and-loss statement may look good, but can you back it up with cold, hard cash? Be intentional about creating profit in your business by allocating a percentage of your gross income into a separate bank account, and then tracking the growth of that account monthly.
