How much does your business pay you as owner?
Remember, when you open a gym, you stop being a coach. You’re the owner, and that’s a completely different role with a different skill set—and a different pay structure.
Success hinges on you and your skills. Your gym will fail if you’re a great coach and a bad entrepreneur.
On the other hand, if you’re a good coach who becomes a good entrepreneur, you can quickly build a business that pays you $100,000 per year and lasts for decades.
That’s your first goal: $100,000 a year in net owner benefit.
If you become a great entrepreneur, you might earn much more than $100,000 per year, and you might even do it in four or five hours a month.
Many of our upper-level gym owners are essentially “retired”: Their gyms pay them a lot for just a little oversight.
I’ll show you what’s possible when you become a great business owner. The numbers in the table below are monthly averages from a three-month period, so everyone on this list is earning great money every month, not “once in a while”:
Some of these entrepreneurs take salaries. Some take profit distributions. Some charge their gym rent as a landlord. To avoid overtaxation, some have their businesses pay their bills (like their cell phone or their car loan). Some do all of the above. Net owner benefit (NOB) is the total of salary, profit and the “extras” your gym provides for you.
For example, a gym owner might make $100,000 in NOB this way:
- $66,000 salary ($5,500 per month)
- $20,000 profit ($5,000 quarterly distributions)
- $6,000 health insurance
- $6,000 vehicle
- $2,000 cell phone/extras
Total: $100,000 NOB (or about $8,333 per month)
Others might just take a salary.
I’ll do the math for you: Everyone in our Top 10 earned almost $50,000 in the last quarter and is on track for about $200,000 in a year.
So how did they do it? The paths are all slightly different, but I’ll give you one huge commonality:
All these gym owners spend time working on the business, not in it.
That means the toilet at the gym is clean, but the owner didn’t clean it.
The PT sessions are coached at an A+ level, but the owner isn’t delivering the service.
The clients receive birthday cards and congrats for PRs, but the owner isn’t doing the sending.
If you want to take a single step toward earning more today, offload a low-value role—cleaning is an obvious role, but there are others—and use the time you reclaim to improve your business.
What should you do to improve your business? That’s where a mentor comes in. An expert coach will tell you exactly what to do “right now” so you can earn the income you want.
To find out more about that, book a call here.
