049: Saving Gyms Profit First with Shannon Simmons

Scott Mulvaney — Mon, 13 Feb 2017 17:00:00 +0000

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:

[spp-timestamp time=”01:54″] How Shannon stumbled across helping Gym and Fitness centers with their accounting as a niche.
[spp-timestamp time=”04:27″] How Shannon made the transition into this niche.
[spp-timestamp time=”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.
[spp-timestamp time=”09:03″] You have to face reality and know where your business is, compared to where a healthy business is.
[spp-timestamp time=”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.
[spp-timestamp time=”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.
[spp-timestamp time=”21:16″] This system is a proactive way to look at your finances.
[spp-timestamp time=”28:28″] Shannon recommends you should focus on creating the five accounts right from the beginning
[spp-timestamp time=”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,
[spp-timestamp time=”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”.
[spp-timestamp time=”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!
[spp-timestamp time=”37:26″] The more money we have, the more money we spend.
[spp-timestamp time=”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.
[spp-timestamp time=”44:00″] Who is your best employee? The answer is YOU! You have to compensate yourself.
[spp-timestamp time=”46:51″] Final Words

Links and Resources

People Mentioned

Final Words

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.

Action Steps

Please Submit an iTunes Show Rating & Review, we need more reviews to increase our ranking and appearance. We love 5 Stars!
Join THE FUEL TANK our community on Facebook! – “You are the average of the five people you spend the most time with.” ~ Quote by Jim Rohn
Be sure to check out our Resources and a reminder to “Keep Living The Fired Up Epic Life everyone!” #livethefuel

The post 049: Saving Gyms Profit First with Shannon Simmons appeared first on LIVETHEFUEL.

048: Paying Yourself Profit First with Mike Michalowicz

Scott Mulvaney — Fri, 10 Feb 2017 17:45:00 +0000

Profit First Accounting and Paying Yourself:

This episode is about stepping out of your comfort zone and flipping your finances and accounting on its head. In business we have been following the same formula for generations, Sales-Expenses=Profit. This means profit comes last, which ultimately means you come last. It is time to flip that formula and enjoy your profit now with today’s co-host. Mike Michalowicz is the author of the book Profit First, a book that I have mentioned many times on LIVETHEFUEL. Mike has launched three multi-million dollar businesses and sold the second to a Fortune 500 company. Mike is also the author of three other great books, The Toilet Paper Entrepreneur, The Pumpkin Plan and the most resent Surge. This is a great episode for anyone who wants to have a little more financial freedom in their life/business.

On This Episode You Will Hear:

[spp-timestamp time=”03:45″] What book should I be reading now? The answer, what is your biggest challenge right now? You will then find the right book to read.
[spp-timestamp time=”05:23″] Where the book, Profit First came from. Mike had start a lot of different businesses and lost a lot of money. Building those companies was not profitable, he was surviving check by check. He sold two companies and one to a fortune 500 company. He thought this was the way to make money and became an angel investor to try and repeat the process but he lost money fast. This was the necessary wake up call he needed. The mentality of being profitable one day in the future is wrong. The classic accounting formula of Sales – Expenses = Profit, which means your profit comes last, is archaic.
[spp-timestamp time=”11:46″] Afraid of change. Mike has literally flipped the accounting formula and put Profit First. It’s the pay yourself first system for your business.
[spp-timestamp time=”15:07″] Parkinson’s Law: As the supply of the availability increases, our demand for it increases, but as it decreases we become more frugal, innovative and use less of it. Mike uses a cookie to describe Parkinson’s Law. When we force ourselves to use less money in our business our behavior changes.
[spp-timestamp time=”21:35″] “Money to brains ratio” and “Keeping up with the Jones’s”. The 401K. When you first adapt to Profit First, it can be painful to begin with. Very quickly, when you see those profits stacking up, it makes it all worth while.
[spp-timestamp time=”25:24″] Dividing up your income into different accounts.
[spp-timestamp time=”32:46″] If you don’t know what you are doing, get help. There is no shame in asking. Scott is visiting Profit First HQ.
[spp-timestamp time=”35:38″] Profit First Professionals: Experts that maximize companies profits permanently.
[spp-timestamp time=”37:01″] Profit First Professionals launched 2 years ago. Profit First Professionals came from people who had read the book but wanted help implementing it and someone to hold them accountable for it. Now they have 160+ bookkeepers and accountants supporting it.
[spp-timestamp time=”38:11″] 99% of Accountants that have come across Profit First have converted to the philosophy. The ones that don’t are the ones that are not willing to change the way they do things. Profit First accountants apply logic and overlay that with behaviors. A lot of accountants just can not make that leap.
[spp-timestamp time=”40:08″] Some people want to go all in when they read Profit First and set aside huge percentages but that’s like putting a frozen mug into a hot oven, eventually it will shatter. One of the important steps of Profit First is to take small steps.
[spp-timestamp time=”42:42″] Taking small incremental steps and relating accounting to the fitness world. Profit First is a Dial not a Switch.
[spp-timestamp time=”45:18″] Quarterly Distributions.
[spp-timestamp time=”47:02″] When the profit comes out, it is for you to experience financial freedom. This is not to be used to reinvest in your business, that’s a whole different envelope aka account. If you are putting it back into the business you are defeating the system. If you cannot pay your expenses, you cannot afford your expenses, so you have to find a better way.
[spp-timestamp time=”48:43″] Final Words

[spp-tweet tweet=”Get comfortable with being uncomfortable with #ProfitFirst @MikeMichalowicz on @LIVETHEFUEL #Podcast, #author #Speaker”]

Profit First Links and Resources

People Mentioned

Final Words

Mike’s life purpose is to eradicate Entrepreneurial poverty, that’s why he does what he does. It’s about stepping into the un-comfort zone. Progress is made when people do something new when something has impeded their progress, what impedes progress is doing what is familiar. Get comfortable with being uncomfortable. That is where growth is. That is where the opportunity is.

Action Steps

Please Submit an iTunes Show Rating & Review, we need more reviews to increase our ranking and appearance. We love 5 Stars!
Join THE FUEL TANK our community on Facebook! – “You are the average of the five people you spend the most time with.” ~ Quote by Jim Rohn
Be sure to check out our Resources and a reminder to “Keep Living The Fired Up Epic Life everyone!” #livethefuel

The post 048: Paying Yourself Profit First with Mike Michalowicz appeared first on LIVETHEFUEL.

Profit First Professionals – LIVETHEFUEL

049: Saving Gyms Profit First with Shannon Simmons

Profit First for Gyms and Fitness

On This Episode You Will Hear:

Links and Resources

People Mentioned

Final Words

Action Steps

048: Paying Yourself Profit First with Mike Michalowicz

Profit First Accounting and Paying Yourself:

On This Episode You Will Hear:

Profit First Links and Resources

People Mentioned

Final Words

Action Steps