Profit First for Gyms and Fitness
This episode is a referral from Mike Michalowicz author of the Profit First book refers us one of his earlier adopters of the system. Shannon Simmons is one of the earliest Profit First Professionals and is here to help save gyms, fitness professionals and more.
On This Episode You Will Hear:
- [01:54] How Shannon stumbled across helping Gym and Fitness centers with their accounting as a niche.
- [04:27] How Shannon made the transition into this niche.
- [06:31] Shannon was one of the first members of the P.F. Professionals. She had been doing Virtual Bookkeeping for ten years before the book came out. There were so many Entrepreneurs she wanted to help but with all the accounting jargon she knew Entrepreneurs would not relate. That is the biggest thing she likes about the system, is it was written by an Entrepreneur for an Entrepreneur, so they can relate.
- [09:03] You have to face reality and know where your business is, compared to where a healthy business is.
- [11:24] Mike recommends having at least five basic accounts, Shannon has identified three others for the fitness industry. This system works for personal life as well. Shannon uses an example of someone repaying $100,000 of debt off in 18 months by using this in their personal life.
- [16:26] Shannon recommends all Gym owners have an Equipment Account, even if you allocate a small amount to that account each month, it will compound by the end of the year so it can be used on new equipment.
- [21:16] This system is a proactive way to look at your finances.
- [28:28] Shannon recommends you should focus on creating the five accounts right from the beginning
- [31:44] There are three extra accounts Shannon has found that the fitness industry should have, one of them is the Equipment/Capital Expenses Account,
- [33:06] The point of Profit First is to get people to finally enjoy running their businesses, even if they are only paying themselves 2% profit, you are paying that right away. You don’t distribute your profits from the profit account until the end of each quarter. Profit First Professionals call it the “Quarterly Profit Distribution”.
- [35:25] You don’t take money from your Profit account and put it back into your business. Your profit is there for you to enjoy your hard work, even if it is only 1-2%, especially for gyms!
- [37:26] The more money we have, the more money we spend.
- [39:37] There are people out there that have a decent handle on their finances but are missing the enjoyment piece. Living with the income instead of living ahead of the income.
- [44:00] Who is your best employee? The answer is YOU! You have to compensate yourself.
- [46:51] Final Words
Links and Resources
You can only serve and love as much as you serve and love yourself. You have to be taking care of yourself so you can take care of other people.
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