No matter what stage of business you’re in, your goal is the same:
More revenue, less time.
In other words, increasing the value of your “working” time.
Like you, my job doesn’t always feel like “work”. But if I can leverage my time better, I can spend more time playing with my kids, my barbells and my investments. And I can afford better coffee, shoes and coffee. (I know, I said “coffee” twice, but my coffee budget is easily twice my shoe budget.)
Ken Andrukow, a TwoBrain mentor, texted me this yesterday:
Pretend you’re a lawyer, and you bill at $120 per hour. Now add up the time you spend on Facebook. What’s that time worth?
YOUR time might not be worth $120 per hour YET. But our goal is to get it moving in the right direction now, and that means increasing the value for your time.
Let’s start by calculating the value of your time spent coaching:
- Take your gross membership revenue and divide by your total number of clients. This will tell you what the average client pays you each month.
Gross / Total clients = average membership
- Divide by average attendance. How many times does the average client attend each month?
Average membership / average attendance = average revenue per visit.
(If you need to sit down for a moment now, I understand.)
- Multiply average revenue per visit by your average class size.
Average revenue per visit X average visits per class = value of your coaching time.
For the sake of example, let’s assign an arbitrary value.
10 clients, paying an average of $10 per visit = $100 value of each class coached.
When you’re planning a specialty group, the value of your time should always be HIGHER than an average class, because:
- Specialty knowledge required
- Limited time
- Limited space
The value of your time should always be moving UP. It doesn’t make sense to do more work for less money.
Let’s imagine we run an 8-week Obstacle Course prep program. Based on your average time value of $100 per coaching hour, access to equipment and gym time, we should price it accordingly:
Attendance cap: 12
Visits: 8 (once / week)
If we charge $10 per visit or $80 for the program, the value of your coaching time goes up ($120/hr.) But we shouldn’t assume you’ll get more people in the program than you will in your average CrossFit class, so let’s price the OCR program at slightly higher per visit. The novelty factor (and others bulleted above) will increase the perception of value to the client anyway.
If we charge $12 per visit, or $96 for 8 weeks with skills and some running homework, that’s fantastic value to the client, and your value per hour goes up to $144:
12 clients at $12/visit.
If the class meets twice every week:
12 clients at $12 / visit x 16 visits = $192 for the 8-week program. Still a great deal.
Increasing the value for your time doesn’t happen by slowly adding members. It happens through systems created to keep you moving up, and a “big picture view” that’s helped enormously by having a mentor.
If you’re not already in the TwoBrain mentoring family, click here.