I want to respond to a challenge that was mentioned in my Profit First For Microgyms Facebook Community. The topic – setting aside time to manage cash flow and implement profit first rhythm days.
First of all, I want to call a bit of BS about not having the time.
I don’t think you are struggling with setting aside time, I think you are struggling with what to do with the time set aside.
You can see this same thing in the lives and habits of your members… You know that they need to schedule a regular consistent time where they are coming to work out at your gym. The members that don’t set aside a regular time are the ones that are likely having a low length of engagement with your gym. This is no different, you know how to set aside time to do things, so that is the first step.
Here’s What I Recommend…
Let’s start by setting aside no more than once a week (but at least twice a month). Plan for every Friday (or whatever day works best for you), to set aside one hour. I promise over time you are not even going to need the full hour.
So now that you have set aside this time, what EXACTLY do you do?
Go into your QuickBooks to pull a report to look at the income that was deposited in my business from the previous Friday to Thursday. You don’t want to look at the same day you are working on because banks don’t settle transactions on the same day.
You will now see in QuickBooks, in a cash balance profit and loss statement, the income that you have. You should have some sort of template with your profit first percentages. If you don’t reach out to us and we will provide one to you.
What To Review…
Let’s say that $10,000 was deposited last week, I am going to put that into the first line on the template. This template will automatically tally how much needs to be deposited into each account, such as the payroll account. The next step is to transfer the different amounts into each different account.
That is the bulk of what you are going to do on this day.
The Next Step To Creating Rhythm Days
Now, I am going to look at all the expenses and cash outflow from the same period. I am going to look at those expenses and ask myself if they are necessary for my business or to stay in business.
That allows you to stay lean, it allows you to make decisions that are going to allow only the right investments to be spent.
Want to watch my walkthrough video? Click below!
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