Quit it all and follow your passion. That’s the dream, right? To ditch the suit, the 9-to-5 grind and start a business that aligns with your passion. And for some people, it works.
You hear the success stories and you think, “Why not me?”
What you don’t hear about are the 80% of those who take the leap and fail. Who risk it all only to find themselves in over their heads.
So, what separates those who find success from those who fall short? Luck? Poor marketing? Competition? Inexperience? Those are all viable reasons why a fitness business could fail. But, the most likely reason a gym or studio will shutter its doors is because of finances.
Some businesses experience financial woes due to reasons beyond their control. Sometimes there is no way around it. But sometimes, a lot of times actually, it just comes down to poor financial management. In these cases, when there is something that can be done, we find the best lessons.
So how do you prevent this from happening in your business?
1. Know What You Don’t Know
One of the most important things is to know what you don’t know. Have the self-awareness to realize when you’re out of your expertise. Most fitness entrepreneurs are go-getters. Confident, capable and determined. If they don’t know the answer, they can figure it out, most of the time.
But the best of the best know when to ask for help. If they come across a mission critical problem they don’t know the answer to, they call in the experts. Will it be expensive? Possibly. But the short-term expense is often outweighed by the long-term gains, or the avoidance of disastrous pitfalls from lack of experience.
2. How To Learn What You Don’t Know
“The more I learn, the more I realize how much I don’t know.” – Einstein.
Paradoxically, the way you learn what you don’t know is by learning. So unless you’re an accountant or a finance major, chances are there is a lot you don’t know about the financial aspects of running your business. And that’s okay!
Let us give you a crash course in the financials of running a fitness business. We’ve put together a massive, free 40-page guide which will help guide you through the ins and outs of the financial side of running a gym, studio or school.
With this guide we cover many basic tenets of gym finance. Not enough to make you an expert, but enough to give you an idea of where you stand, how you can improve, and where you need to get some expertise.
The guide dives into the following topics:
• Building your foundation
• Managing your finances
• Funding your business
• Using your operational metrics
• Preparing for tax season
• Evaluating your gym’s worth
We’re confident any fitness business will find value in this guide. We hope it gives you the confidence and knowledge you need to avoid the financial pitfalls that plague so many in our industry.
Download your free copy now!