The bigger the pie, the more you can feed your family.
The main mistake gym owners make when deciding what to pay coaches? They focus on the percentages instead of the money.
Instead of paying your coaches a larger percentage than your gym can afford, charge more for your services. Grow the pie instead of slicing it up poorly and starving yourself.
Think of your staff like the players on a football team. Think of your payroll budget as your “salary cap.” If you cap your earnings at 33 percent of your gross revenue and your expenses at 22 percent, then you can afford to pay up to 44 percent of your total gross revenue to your staff.
How you get there is up to you, and you can see the entire breakdown in our “Intrapreneurialism 101” guide (download it here for free).
Remember: Coaching is an amazing opportunity to do something they love. It often requires only a weekend course to earn a job that regularly pays double or triple the minimum wage.
Passion for the job, knowledge of how the body works, and a sparkling personality—those aren’t the hard parts of business. The hard part is taking the risk and committing to a lease and loan payments. The hard part is building an audience. Don’t undervalue your contribution to their success.
Owners should focus on ratios. Staff should focus on dollars and cents. Read more: “Building Careers: Paying Coaches.”
Figure out where your money goes.
Two-Brain clients: use the Two-Brain dashboard every month. Track your progress. Compare against the best in the world.
For everyone else: Use a spreadsheet or your accounting software. Total your revenues, then break down your expenses, one at a time. Are your staff expenses higher than 44 percent? If so, then think about raising your rates.
However you get there, 44 percent is your budget for staffing.
Need help? Need guidance on making change? Book a call and see if you’re a fit for mentorship.