Fitness Business Finances
Fitness Business Money Sense
Since I’ve recently been sharing how you can apply E-Myth strategies to improve and grow your fitness business, I thought I’d give you some questions that you can use to evaluate to financial side of your business based on questions put forth in the E-Myth. Enjoy.
1. Is your fitness business operating at a net profit or at a net loss?
2. Have your gross annual revenues been increasing, decreasing, erratic, flat?
Why do you think that is?
3. How is your cash flow? Excellent, good, fair, poor or inconsistent?
4. How often do you pay your bills on time? Always, most of the time, not very often or almost never?
5. Are you able to make payroll? How do you pay yourself?
6. Are you comfortable with the amount of debt you have? Is it short-term or long-term debt? Are you on a structured payback schedule?
7. How is your revenue base distributed among your clients?
8. What payment terms do you require of your clients? EFT model, Due on receipt, 15 days, 30 days?
9. How old are your Accounts Receivable collections? Under 20 days, between 30 and 40 days, between 60 and 90 days, over 90 days, don’t know?
10. What kinds of financial reports do you generate on a regular basis? Profit and loss, balance sheet, statement of cash flow, budget, projections, none?
11. How often do you generate these financial reports? Weekly, monthly, quarterly, annually?
12. For the reports you produce, how much of the information do you understand and use? All of it, at least 75%, between 50% and 75%, between 25% and 50% or less than 25%?
13. How do you manage and control on-site expenses? Do you have a system to collect, track and reconcile on-site or employee-incurred expenses?
14. If applicable, can your on-site supervisors sign for orders? Do they have a signing limit?
15. Have you allocated funds for care and upkeep of equipment, etc.?
16. Who writes checks, makes deposits and reconciles bank statements? Is it all the same person? Do you trust them? Do you review your bank statements?