The #1 Money Mistake Gym Owners Make (And How to Fix it)

10 years ago I invested an insane amount of money for a business event. 

One of the perks I got was a coaching session with a well-known CFO. He was the former CFO for a professional sports team and was now the CFO for a household brand bringing in hundreds of millions in revenue. 

A little intimidated, I sat across from this seasoned CFO, probably double my age in his pristine office. He was slim and fit for his age. His voice was strained but he had that look of wisdom of someone who's been neck deep in financials for more years than I'd been alive.

I slid over my P&L and braced myself. What he said shocked me. 

“Billy, this is impressive. I’ve worked with business owners making 7 figures and beyond, and many don’t keep nearly as much profit as you do.”

By this point, my little fitness business that started from scratch was bringing in about half a million dollars with close to 200K in net profit. I never thought I’d be old enough to say something like this but that’s over a quarter of a million in today’s dollars! 

The biggest mistake I see gym owners make? Chasing revenue without a clear plan for turning it into profit and personal income. 

More leads. More sales. More revenue. That’s all great until we forget that while revenue feeds our ego, profit feeds our family. 

This mistake doesn’t just slow growth - it can leave you working harder while taking home less. So how do you fix it? 

You’ll see below but remember that by thinking we just need more of everything, we can easily get overwhelmed by all that’s on our plate. 

Everything we add comes with other things to address and worry about. More clients means more work to onboard them, more staff to manage, etc. What’s more is I’ve seen people get more clients and revenue but not improve their life. I may have even been there myself!

If you find yourself being hyper-focused on revenue without having it tied to your take home pay, here are 5 things you can do that will help immediately. 

1. Know your WHY - Before you do anything, get clear on why your income matters. Gaining clarity on that will help you do what it takes to make it happen. 

2. Know your numbers - Numbers like your break-even cost, revenue per session, and even session usage are too important to ignore. 

3. Track your finances weekly - Create a rhythm where you can see where your money is going. Oftentimes, it’s much easier to re-allocate funds from an area that isn’t working to an area that does (e.g. Your personal account!).

4. Setting up separate accounts - Co-mingling your personal and business accounts is one sure-fire way to not get ahead financially. It’s just too difficult to see what’s going on and scale profitably. 

5. Review your financials regularly  - This isn't a “nice to do.” It’s a must. No successful business ignores their financials. Act as if you’re the business owner you want to become. 

Doing any of these 5 actions will help tremendously. Do all 5 and you're headed somewhere special. If you're ready to stop chasing revenue and start keeping more of what you earn, let’s create a plan that works for you. Schedule a call here.

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