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  Every civilization builds on the ruins of the one before. When buildings fall down, architects can examine them for fault lines and rebuild better than ever. Sometimes, our society progresses in small increments; sometimes it makes giant leaps. These giant leaps happen only after a dramatic event: an earthquake, an explosion, or a battle. Over the last several years, I’ve mentored over a hundred gyms one-on-one. When I raised a new flag recently (Two-Brain Business, after my books) several asked, “What’s next?” The change happened suddenly, but I’ve been reflecting on the mentoring process for months. One obvious area I could improve was accountability. This is accountability. Three years ago, my principal job as mentor was education: few gym owners knew how to become profitable (some didn’t even WANT to.) Now those ideas permeate our culture; I’ve had gym owners tell me about their unique “4/9 model” or share their “Bright Spots” over email. It’s a great feeling. NOW my principal role is accountability. The knowledge can be shared via new technology (like the RampUp Program.) But no system works perfectly for everyone; a tailored approach is necessary for every gym, because we’re not franchisees. So my job NOW is to say, “Here’s step one. Do it by Tuesday.” Three years ago, I was sharing ideas. I still have a ton (here’s the “Ideas” episode of the Podcast) but I spend more time holding people back than pushing them forward. Most gym owners have so MANY ideas they become paralyzed trying to chase them all. So my role has changed to identifying the BIGGEST opportunity, helping the entrepreneur pursue it, leaving a system in our wake, and then moving to the next. Sometimes, it sounds like this: “Here’s step one. Do it by Tuesday. Don’t look at step two yet.” The Silver program is for gym owners who have already been through a mentoring program with me. They have the ...

It’s hard to get excited about math. It’s much easier to coach the third pull of the clean, right? But if you don’t know your numbers, you won’t be coaching for long. Gyms fail most often due to business ignorance, not bad coaching. But even the fear of closure won’t make you WANT to know your business metrics, so I’m giving you a new way to look at them. This is The Two-Brain Business BIG SHEET: a simpler way to track the metrics that really matter. You can download it free. RampUp and Mentoring clients are taught to use the tool optimally, and their results are tracked monthly for accountability. The metrics I track: 1. Gross Revenue: of course. But this is just necessary to calculate NET revenue. If a business owner is bragging only about their gross revenue, they’re hiding something (maybe ignorance.) 2. Total Members: Like gross revenue, only used to calculate ARM (below.) A gym with one member that profits $10 per month is better than a gym with 100 members and no profit. 3. ARM: Average Revenue per Member (per month.) This is a key metric that usually highlights an affiliate’s weakness right away. If you catch yourself saying, “I just need 10 more members!” you should stop and calculate your ARM. 4. LEG: Length of Engagement. I want to keep clients for at least 10 years, because I’d rather be a coach than a marketer. If your clients stick around for an average of 9 months, you’ll always be scrambling to replace them instead of coaching them better. 5. Net Gain this month: Your operating profit. If you’re “not in this for profit,” save yourself a lot of stress and get a job coaching. You’ll be happier. 6. Net Gain since First Month: Because I want you to see how quickly the mentoring program pays for itself. 7. Profit Ratio: Mentoring clients are trained to produce a 33% profit ...

Business is tough on relationships. Some new business owners are shy about documenting their partnership. They fear the formality will put a strain on their marriage, their bro-dom or their friendship. But when they’re done well, written contracts SAVE relationships. I’ve used this agreement for six different companies. I sold my share in two of them, and I’m still close friends with both former partners. I’m a fan of the “Shotgun Exit” in particular. It’s fair to everyone, and provides a quick way to “rip the bandage off.” When a business buyout occurs, emotions can spiral out of control. I believe it’s better to get it done quickly and stay friends. This is a sample, of course. Take it to a lawyer. In the sample, the two business parties are named “X” and “Y.” Sub your name in for X, their name for “Y,” and add a Z if necessary. Questions? If you’re starting a new box and want some help, you can book a free call here. Here’s the PDF version:Sample Shareholders’ Agreement Here’s the editable DOC version:Sample Shareholders’ Doc Further Reading: The Best-Laid Plans, CrossFit Journal