In this episode of Profit Made Simple, Dan Henderson, a successful entrepreneur in the fitness industry and host of the podcast, discusses the top ten financial pitfalls that can trip up fitness business owners. By recognizing these common mistakes and taking steps to avoid them, you can ensure your gym or fitness program is on the path to long-term financial success.
In this Episode, You’ll Learn About…
Don’t Be Afraid to Adjust Your Prices
Everything from rent to equipment costs more each year. To keep your business healthy, it’s important to raise your prices a bit every year. Think of it like adjusting your workout routine – a small change can make a big difference in the long run. The good news is that a well-planned price increase shouldn’t scare your clients away. Most people understand that things cost more over time.
Don’t Swallow Those Extra Fees
When you offer automatic payments, there might be a small fee attached. This might seem like a tiny amount, but those little fees can add up quickly and take a bite out of your profits. The best approach? Simply include those fees in your membership price. This way, you’re being upfront with your clients and keeping your business financially strong.
Turn Expenses into Savings
Did you know that some of the things you buy for your business can actually save you money on taxes? For example, if you buy new exercise equipment or take a course to improve your training skills, those purchases might count as tax deductions. This means you get some of that money back from the government! Talking to a qualified accountant can help you figure out what expenses you can use to your advantage.
Know Where Your Money Goes
Imagine going to the gym and only focusing on your arms. A balanced workout is key, and the same goes for your business finances. You need to see the big picture – how much money comes in each month, and where it all goes out. Tools like cash flow forecasts or profit first systems can help you do this easily. Think of it like a financial roadmap – it shows you where you stand and helps you plan for the future.
Dan also emphasises the importance of having an amazing accountant in your corner. He even gives you tips on finding the right accountant – someone who’s proactive, helps you strategize, and isn’t just there to crunch numbers at tax time.
Understanding Your Business Numbers
Financial reports might seem scary, but they’re actually your friends! These reports, like profit and loss statements and balance sheets, show you exactly how your business is doing. Learning to read these reports is like understanding the different exercises that work different muscle groups. The more you know, the better decisions you can make to keep your business growing strong.
By avoiding these financial pitfalls and taking charge of your business finances, you can ensure your fitness business is as healthy and successful as the people you train!
🎧 Listen to the full episode now
Our favourite quotable moments:
“Are you increasing your prices every single year across the board?” – Dan Henderson
“The more tax you pay will mean, the more you are growing. That is the success fee.” – Dan Henderson
“I had a shit accountant for way too long, and it has cost me more money than I can possibly imagine.” – Dan Henderson
“You’ve got to pay yourself first.” – Dan Henderson
About Dan:
Dan Henderson, founder of Fitness Profit, is a coach and business consultant who helps fitness owners achieve more freedom, impact, and income. With over a decade of experience in the industry, Dan is a well-respected leader, owning two successful businesses within the space: Momentum 360 gym and Australia’s largest fitness conference, Filex. As a published author and entrepreneur, Dan shares his knowledge on the Profit Made Simple podcast, where he interviews industry experts and offers practical advice for growing your fitness business, building your brand, and achieving your goals. Join Dan each week and take your fitness business to new heights with Profit Made Simple.
