Today we are going to go over Key Performance Indicators or “KPI”.
Key performance indicators or “KPI” are like they say, indicators on key components of your business and how it is performing.
It is important to be tracking your KPI’s, done the right way, they become the root that helps pinpoint the cause of many effects on your gym.
Too often, we can end up tracking the EFFECT of something else, instead of the CAUSE, preventing us from solving the bigger problem.
For example, concentrating too much on top line revenue, though it’s great to look it, and do want to see a healthy trend in your profits, however it doesn’t really tell us what is going on.
This is because income is the EFFECT of causes such as…
—> How many leads am I getting?
—> What is the conversion percentage?
—> What services am I selling,
—>AND SO MUCH MORE.
All of these things would be better to track then just revenue if you are trying to track the overall financial growth of your gym.
Consider this your brief introduction to KPI’s or Key Performance Managers. We have several more tips, like this one, on our YouTube Channel that talk more on this topic and will help provide further insight and knowledge. I also invite you to check out my new book “Profit First For Microgyms” to learn more.
High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, equipment, support, etc.
You should have no more than 5-7 KPI’s. Some of these, you may be tracking daily, while others, only once a month/quarter. There is no right or wrong, but you want to be efficient.
Bottom line, KPI’s are good, so go do them! Click below to watch my quick tip video to learn more about KPI’s.
Ready to learn how to begin implementing the Profit First system in YOUR gym?
In my new book, Profit First For Microgyms, I break down Mike Michalowicz’s proven method, so that it is easily digestible by our Microgym owner community.
You can pre-order your copy today by clicking here.
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