Money's tight this month. But your gym will make it—as long as you cut your own pay a little. No problem; you're not in this business to get rich, right?
But you can't live like that forever. Eventually, your business needs to be profitable and you need a paycheck—or you're going to burn out. But how do you get there?
The Profit First system, developed by Mike Michalowicz, is a powerful technique for managing cashflow to result in profit. Gym owner and certified public accountant John Briggs tweaked the system even further in his book, "Profit First for Microgyms."
Here, John explains how you can use the system to get out of debt, pay yourself and your team, cover your expenses and make a profit.
"Profit First for Microgyms"
Chalk It Pro
Gym Owners United
2:25 – What is Profit First?
3:04 – Parkinson’s Law.
6:18 – The gym-owner trap.
11:14 – The seven accounts: income.
12:19 – The seven accounts: team members.
14:13 – The seven accounts: owner pay.
17:20 – The seven accounts: profit.
22:31 – The seven accounts: tax.
24:14 – The seven accounts: operating expenses.
24:28 – The seven accounts: equipment.
25:48 – Why the system works.
27:29 – How to start implementing Profit First if you’re broke.
29:38 – Analyzing expenses and generating revenue.
33:27 – Starting small.
35:14 – How Profit First will make your life better.
36:53 – Where to start.