85% of gym owners fail in year one. The Profit First system uses three bank accounts: allocate 5% of weekly revenue to profit, 15% to taxes, and the rest to operating expenses. On the 10th and 25th of each month, cut any expense that doesn't directly bring members in.
Did you know 85% of gym owners close their doors within the first year? But today, I'm giving you the math to move your gym into the top 8% of profitable businesses. Most owners are losing thousands each month on nonproductive debt and useless expenses, then panicking in April because they haven't saved for their tax bill. Here's how to prevent that. Start the Profit First system today and open 3 new bank accounts: profit, tax, and operating expenses. Next, move 5% of revenue to profit and 15% to tax every single Friday. So if you're doing $30,000 a month, that's $4,500 sitting in a tax vault so you never have to panic. Everything else goes to operating expenses. And if this account looks low, good! That's the toothpaste rule forcing you to be efficient and cut the waste. And finally, on the 10th and 25th of every single month, remove any expenses that aren't putting a body on a squat rack. Uncle Sam does not care about your community or your members' PRs. Stop throwing away money and start undercharging yourself. Click the link below to grab our 7-step guide to implement Profit First today.
