Finding Financial Peace as a Gym Owner
Most people get into gym ownership because they love fitness, and they want to make money. To quote an old adage, “Choose a job you love and you will never have to work a day in your life.”
However, you still need to make a living. Here are the top three practices that can move you toward financial peace as a gym owner:
Get the Cash Flowing
Knowing what your cashflow will be on a daily, weekly and monthly basis means you do not have to be in crisis. You can make plans.
Some credit card processors provide lump sums a few times a month. This can mean feast or famine, and limit flexibility. Choose a processor that can provide daily payments.
Know Your Numbers
These two numbers can help predict the future cashflow of your gym:
How many members you have added or lost.
Rate of non-paying accounts (accounts that do not have accurate payment info or have stopped paying).
Find a billing system that makes these reports easy, or work with your software rep to build these reports on an automated basis. Make it easy to keep up with these numbers.
Knowing these two numbers means you predict cashflow. You can see if programs such as advertising or new product lines are having an effect.
Having these reports easy to access means gym owners can get a real-time glimpse of what is happening with their client base in a few minutes’ time, so it’s worth it to have them handy. Some billing systems even have apps that provide these reports so you can check them on your cell phone.
Automate Billing Communications
Chasing after bad accounts sucks up both time and energy. Alerting clients when their account info is incorrect can reduce past-due accounts. Automating billing communications can and should be done. It keeps staff focused on fitness, not collections. Plus, automated means consistent. Look for software that has this feature.
These high-value activities can help you predict the health of your business, without having to spend a lot of time. Reducing surprises about the financial health of your gym is key to financial peace as an owner.