3 Key Strategies to Strengthen Your Fitness Business Financially
Last month I chatted with Greg Will for AUSActive on what we need to do now to ensure our finances are healthy at the end of the next financial year. AUSactive members can access the full session on e-learning platform ‘iLearn’ by logging in here.
As fitness business owners, it’s essential to consistently evaluate and improve our financial standing. Here are three actionable strategies to ensure your fitness business is in a stronger financial position in the next 12 months:
- Know Your Numbers
Understanding your financials is fundamental. Whether you work with a bookkeeper or manage the numbers yourself, you must review your finances at the end of each month. Ask yourself:
- How much income did we generate this month?
- Did we meet our financial goals?
- What were our expenses, and were they justified?
Knowing your baseline and foundation is crucial. Just like in personal training, you need to know your starting point to make improvements. Regular financial check-ins will help you identify trends, pinpoint areas for improvement, and make informed decisions.
- Create and Adhere to a Budget
Every fitness business, whether a personal training service or a multimillion-dollar gym, should have a budget or forecast for the next 12 months. This forward plan acts as a roadmap for your financial goals. For instance, if your budget predicts $10,000 in revenue for a particular month, evaluate why you did or didn’t hit that target. Were there fewer clients? Did operational issues arise?
Sticking to this plan helps you stay accountable and make necessary adjustments promptly. It’s not just about setting targets but actively working towards achieving them and understanding any deviations.
- Seek Professional Advice
Don’t hesitate to seek advice if you need to make significant financial decisions, such as buying or selling parts of your business, or if you’re unsure about your financial strategies. Many experts are willing to offer their insights, often at no initial cost. Engaging in discussions with a financial advisor can provide valuable perspectives and strategies that you might not have considered.
Implementing these three strategies can significantly enhance your financial stability and growth. Regularly monitoring your financial health, planning ahead, and seeking expert advice will ensure your fitness business thrives in the coming year.
Justin is the Managing Director of Active Management, which he began January 2004. He offers coaching to businesses worldwide in everything from start up and design to marketing and sales systems. Justin also facilitates four Australian and New Zealand ‘fitness industry roundtables’ events, which allows him to see a huge cross section of business models.