Every gym owner needs a goal, a plan and someone to hold them to the plan—just like your clients need the same structure!
In the first post in this series, I showed you how to create clear goals. Here, I’ll show you how to break those goals down and create a plan to accomplish them.
I’m going to talk numbers, but I’ll keep it high level. If you want to build a specific step-by-step plan for your business, book a call with my team and we’ll talk about mentorship.
In the previous post, we defined your Perfect Day and came up with two goals:
1. An income goal for you.
2. A revenue goal for your gym.
Your gym exists to serve, yes. And it exists to pay you.
You could serve people by working for someone else. You opened a gym—at least partially—to earn more than you would as a coach. That’s nothing to be ashamed of. Your goal, as owner, is to create the revenue that will keep the gym running for 30 years.
In Part 1, I had you take your income goal and divide it by 0.3 to get your gym’s revenue goal.
So let’s say your take-home income goal is $100,000 per year. Your revenue goal for the gym is then $333,333. That’s how much money the gym needs to take in to pay you $100,000 at a profit margin of 30 percent.
Now let’s break that number down into months: $333,333 divided by 12 months is just under $27,778 per month.
Now you need to decide how to make that $27,778 per month. Start with what you already have: How much did you make last month?
Now let’s talk about closing the gap. To make more revenue, you can:
- Get more new clients.
- Increase the value of the clients you have.
- Keep your clients longer.
Note that improving your team’s skills, cutting expenses and working fewer hours do not increase revenue. The actions might improve other aspects of the business, but right now we’re building a revenue plan, so we’ll address those things later.
After you’ve calculated the gap between your current revenue and your target revenue, calculate how many members you have and how much the average member pays per month (your ARM).
How many more members do you need to get to your goal?
What if every member paid you 10 percent more than they’re currently paying?
Define those numbers. Those are your new monthly targets.
In the next post in this series, I’ll tell you how to put these numbers into a monthly plan—and how mentors hold you to that plan to get you to the goal faster.