How to Increase Profitability Without Having to Eat the Whole Elephant

By January 28, 2016 Blog

Just got done finishing Fight Gone Bad. This was the last workout I did when we finished the fundamental class at our Crossfit gym, GSL Crossfit

The first time I did it I got 170 and I did box steps instead of box jumps. Just now, I did box jumps and I got 227, and that’s in a two month period that I was able to increase that score.

I love Crossfit, it’s been great coming here and GSL Crossfit is a great gym to be at. It’s funny because I look at the workouts I do every week and I don’t think I would’ve told you that I could’ve improved on the workout by 50 reps. that’s kind of the beauty of CrossFit, it’s incremental improvement.

Each workout is really hard, and as you get stronger each set of the workouts getting easier, you just push yourself harder or use higher weight or your form is quicker etc.  To be able to do a workout that far apart you can see your actual improvement so it’s kind of fun.

Accounting is no different. The financial health of your business is no different. What happens is that in most cases especially Crossfit gym owners, is you see the accounting is this giant elephant like most people look at working out, or exercising. But improving your financial health is the same. The same approach you take to improving your physical health.

So what kind of steps could you take where it might be hard to do at first and every workout might not be enjoyable, but if you do some things you will improve the health of your business the financial health the health of your cash flow.

On a regular basis you should be sitting down and looking at your books. This means getting out your bank statement opening up QuickBooks, or your Excel file, or fresh books, or whatever accounting software you’re using to track your expenses, categorizing your expenses, and inputting them into your software.

I recommend doing this on the 10th and 25th of every month. So basically every 15 days you’re sitting down and looking at your financial numbers. Also on the 10th and 25th are the days that you should be paying your bills. Don’t think about it the rest of the month just set aside time on the 10th and the 25th of every month to do this.

So that means the other times as you open the mail and if there’s a bill to pay, you stick it in a pile and then pay on the 10th. You look at your pile of bills and anything due before the 25th you pay. If it’s not due until after the 25th then leave it in the pile and you would pay it before the 10th of the following month.

You’ll be putting your bills in a safe pile, but only twice a month you’re paying your bills. Then in turn, twice a month you look at the previous transactions that have happened in the last 15 days and this allows you to analyze the dollars that are leaving your bank account.

You can then ask yourself a question about each expense and say,
“If I did not have this expense could I continue to provide the same service and the same quality that I want for my clients or athletes?”
If the answer is yes, then you probably shouldn’t have that expense. You also can ask yourself,
“Does this expense serve my clients or make them happier?”
And you can ask yourself,
“Does this expense save me time?”

Those are kind of the categories you want your expenses to fall under and if it doesn’t fall under one of those three categories, then chances are it’s an innocent expense.

You’ll need to look over those innocent expenses and eliminate if they don’t improve or help your business. This will then give you more cash flow to do more things that might save you time. This extra cash flow could get you more gym members and make your athletes happier as well as improve your service.

That’s why the 10th and 25th rhythm is so important because it is the same type of scenario you want your athletes to have. Come in regularly to the gym and get regular workouts.

Look, you know that if they start missing, it’s a lot easier for them to stop coming, and you know better than I in the benefits of CrossFit. Plus, you also know it’s going to prove their physical health. Just like I believe in the rhythm of the 10th and 25th

You do that with your business, your financial health will increase as you approach it with the same focus you want your athletes to approach their workouts.

If you implement these strategies, dramatically increasing profitability is unavoidable.

If you read this post, and are excited about it, start trying out these steps and start increasing your profits.

If you read this and are excited about learning more on how this will transform your business, then buckle up because in the coming weeks we are launching a video series to teach you everything you’ll need to know about increasing your profits 100-300% in less than 12 months. Stay tuned for details!

And also let me know in the comments if you plan on using this plan I’ve talked about.

 

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