#045: Transform Your Gym into a Profit Making Business w/ Mike Michaelowicz
Has your gym been seeing profit lately? If not, or not enough, rest easy because you’re not alone AND there’s a fairly simple way to fix that.
We’re thrilled to have Mike Michaelowicz, author of “Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine” on Gymwright LIVE!
The principle behind Profit First is to change the way that business owners think about their cash flow. It does this by flipping traditional accounting on its head. It’s a simple yet extremely powerful way to get your business out of survival-mode an intro thrive-mode.
Join us every Friday at 10 a.m. PT on The Network where we’ll be airing live. Be sure to stick around for the live Q&A session at the end of the show so we can answer any questions you have.
This show was recorded live in The Network on Friday, Aug 17, 2018.
The majority of small businesses are not profitable – around 180 million small businesses around the globe! Which means if you’re a gym owner watching this show, the chances are good that you’re not profitable.
But Mike stresses that there’s nothing wrong with you or your business acumen. There’s something inherently wrong with the formula we follow: Sales – Expenses = Profit. We’re told profit comes last and when profit is considered an afterthought, it’s never going to happen.
If you change the formula around to be sales-profit = expenses and save a percentage of every sale to be your profit, you’re then reverse engineering your profitability. If you can’t save anything for profit, then it means you have a fundamental problem with your business to make an eventual goal of 20% profit a reality.
For a thorough rundown of how Mike’s strategy can apply to your gym specifically, check out this show/article we did with guest John Briggs, a certified Profit First consultant that works with gym owners.