Noble… and Profitable
You can pursue your noble purpose and at the same time pursue being profitable. Being a microgym owner is not about either being lucrative and making money or changing lives and people. It’s about both!
You deserve to fulfill your noble purpose, and, at the same time, you deserve to be rewarded with a profit.
In fact, from a rubber-hitting-the-road standpoint, you must make a profit. I repeat, one purpose of your business must be to make a profit. There is no other way to accomplish our noble pursuits without it.
Focusing on profit will not take anything away from your special “why.”
To clarify, “making a profit” is a different concept than “getting paid.” What do I mean?
When you perform work in your gym, you should be paid. Maybe you do the marketing campaigns, maybe you are coaching some or all the classes, maybe you clean the gym at night or in the morning, or maybe you manage the inventory you are trying to resell. Those are tasks that you could pay someone else to do.
So because you are doing them, you should at least pay yourself what you would have paid someone else to do the same task.
That is getting paid for working in your business.
That is not the same thing as making a profit.
Making a profit is what you get because you are the gym owner. Making a profit is your return on investment for being the one taking the risk for owning the business.
If you do not make a profit, that means your business is not retaining any cash from its sales. It means your gym could soon be among the 50 percent of business that fail.
If your gym is not profitable, it means you will not be able to serve your “why” for very long.
That is the tragedy of any failed business!
Profit First in Practice
Étienne Booth owns the microgym Engrenage in Canada. Early on he knew that he didn’t want to end up a slave to the gym, but he still felt as though he needed to eat last because it would be selfish to pay himself and to say, “This is mine.”
The challenge didn’t end with just his own mindset.
The others who had a voice in the gym resisted strongly when he began implementing Profit First. His accountant pushed back because “profit is always going to be what’s left over; you can’t change that.”
Sorry, Mr. Typical Accountant, but you can change that.
It is in your control, and Étienne took that control and pushed through the resistance.
Profit First helped him avoid becoming a slave to his gym.
“Profit First taught me how to say ‘no’ by prioritizing the right things instead of trying to please everyone,” he said. By letting the Profit First system work, Étienne was able to determine when he should say no.
In the first four quarters running Profit First, he started with taking 3 percent of his income for profit and each quarter increased it so that by the fourth quarter he was setting aside 15 percent of his revenue for profit. He also had enough to pay back the remaining $40,000 business loan he took out to start his gym.
Profit First has become a self-improving method for him.
If his profit increases, then he’s improving. If revenue increases, then he’s improving.
“The greatest impact that Profit First has had for me is to break the belief that profit is simply what is left after expenses. So, instead of having the mindset I need to reinvest to make the gym big in order to generate profit, the system switched my mentality and allowed me to grasp the concept that, in order to better my business, profit needs to happen right now.”
It doesn’t matter if you have the best coaches, the cleanest gym, the best onboarding systems, and the best members.
If your business has no cash, it will not survive!
Create value and cash comes in. But it isn’t enough. You need boundaries around your cash as it comes into your business.
As you protect your cash flow, your noble purpose will take its place in the world and come to fruition.
If you want to be able to help others with their fitness goals, if you want to own a business and not a job, and if you want to provide a great life for your coaches and members, you need healthy cash flow.
Profit will allow you to serve the people you set out to serve.
We created some courses derived from our Profit First for Microgyms book and successful coaching system.
Simply pick your course, watch the content, and improve your cash flow.
Follow us on…