A bigger revenue number does not tell the whole story. Start by looking at what it costs to deliver the service and what remains. Vince’s expense framework separates payroll, fixed expenses and variable expenses so you can see where the money goes before chasing more members.
Know your expense base
Payroll includes payroll taxes and employee benefits. Fixed expenses include items such as rent and insurance. Variable expenses include marketing, equipment and client gifts. Use the same categories each month so changes are visible.
Check capacity before adding members
More members can improve the result when the existing team and schedule have room to serve them. If growth requires extra coaching hours, equipment or space, include those costs in the plan. Revenue growth and profit growth are different questions.
Choose a lever you can act on
The 8 Profit Levers book examines decisions such as pricing, lead generation, follow-up and bringing former members back. Start with the area your own numbers identify, then track the result of the change.
Read the Lessons in Detail
- Drive More Profit to Your Gym (With 3 Simple Expense Categories)
- Focus On Profit To Drive Your Way To Success
- 10 Quick Wins For Profit Thirsty Gym Owners
Go Deeper With the Book
The 8 Profit Levers for Gym Owners covers the process in more detail. Request the free book on its download page.
Read a gym owner's experience: Marty Vaughn at 360 Fitness Coaching.
For help applying these ideas to your gym, learn about the SPF Mastermind or book a strategy call.