Revenue is important. You can’t eat warm wishes.
Revenue keeps your gym alive. When it all comes down to it, your livelihood is determined by your gym’s ability to make money, not how many members marry one another.
But what’s most important is what you do with that revenue.
I can clearly remember months when the gym paid the landlord, the government and the bank—but it didn’t pay me.
In fact, I’ve probably thought “this business only exists to make the government money!” a dozen times or more.
That’s a terrible feeling!
In the previous post in this series, I said there were six strategies to grow a gym, and three of those strategies would grow your revenue (getting more clients, earning more from each client and keeping each client longer).
The other three strategies help you turn revenue into income for yourself. We call this “net owner benefit” (NOB). It’s the sum of what the gym pays you: your salary plus your profit plus the “bonuses” you get from being the owner.
Each strategy can be executed with dozens of tactics.
Strategy 1: Pay Yourself First
Your business exists to pay you and your family. Develop the discipline to receive value from your business in exchange for the value you create.
Free resource: “Why Your Gym Must Pay You First”
Tactics: Use Profit First or pay yourself first, employ the 4/9ths Model. We have full courses for each of these on the Two-Brain Growth ToolKit.
Strategy 2: Upgrade Your Team
Each person on your team should “grow the pie,” by creating revenue or time for the owner.
Free resource: “Intrapreneurialism 101”
Tactics: Start career Growth ToolKit meetings, foster intrapreneurialism, “climb the value ladder,” write out roles and tasks, create a staff playbook, introduce evaluations, use staff contracts, track your effective hourly rate (EHR), employ the 4/9ths Model. We have full courses for each of these on the Two-Brain Growth ToolKit.
Strategy 3: Improve Your Operations.
When everyone works toward the same goal, you get there. Make your business run just as well without you.
Free resource: “How to Bankrupt Your Gym—Guaranteed”
Focus and Improve
A mentor helps you earn more from your work and work only as often as you want. We do that by helping you find—and keep—your focus as you improve one thing at a time and get one percent better every day. Click here to book a free call with my team.