I recently did a full day of consulting with a gym in the SPF Mastermind.
They flew in and admitted to feeling very nervous for the day.
The nervousness most likely came from what I asked them to bring to the meeting…their profit and loss statement for the past 3 months.
This is the ultimate truth-teller in business…there is nowhere to hide from what it says.
We know from sports that the athlete that has leverage typically wins, even if they aren’t as big or strong.
Most gym owners do not use their financials as a form of business leverage…this is a mistake.
Understanding your numbers is one of the most important forms of business leverage you have because it tells you what’s actually happening.
Here’s what happens if you don’t know your numbers:
You start to do stupid things, making decisions based on emotions (I’ve made plenty of them in my day)…
You get the feeling you need new turf.
You get the feeling you need to buy some new equipment.
Someone reaches out and asks you to give you a bunch of money for public relations…and you do it.
A trainer asks for a raise, and you give it to them.
All emotions.
It’s possible some of these could be good decisions but before any money is spent…having a grasp of where you stand financially is crucial.
And I’m not just talking about checking your bank balance either.
More dumb decisions have been made by gym owners that look at their account…see they can afford something…and buy it.
The key is looking at the trends of your business….comparing these trends with prior history and allowing that to give you the leverage you need to make good decisions.
Here’s what you need to know:
As much as the subject of this email makes some of you want to crawl into a hole.
Knowing your numbers is a skill and can be learned.
It’s likely that the lack of understanding of finances is the biggest culprit in keeping gym owners in stage 1 and 2.
I know you may not want to learn about this but if you’re going to own a business…you must.