goals

Goals

“If you don’t know where you’re going, any road will take you there.”

As a Fitness Professional you know that goals are super important to progress.  I envision goals like looking through a funnel of my future life.  Everything is very focused and narrow at first.  These are the daily, weekly and monthly goals.  As my vision widens with the expansion of the funnel, so do the goals.  For instance, after the daily, weekly and monthly goals, I’ll have the 1, 3, 5, 10 year goals, etc., each less focused than the one before.  Finally, at the end of my vision is me, at the end of my life, reflecting on my life.  Was I happy with what I had accomplished?  Did I regret working too much or chasing other people’s dreams rather than my own?  Did I give back enough or leave the world a little bit better?  Was I a good husband and a good father?  Basically, did I have a successful life?

So a few things about this.
(1) I work from the widest part of the funnel in.  The widest part of the funnel really involves my values, beliefs and my “why” as a person.  Those help to guide everything else below it.

(2) The middle of the funnel is a little hazy.  I have some ideas as to where I want to be in 10 years based on where I am now and where I want to be at the end of my days, but I don’t get so locked into those goals that I have complete blinders on.  Some may say that this is a mistake – that the blinders will help me achieve my goals.  But I know that I’m dedicated to learning and growing so knowing what I know now, what is realistic in 10 years, may really only take 5 years once I grow as a person.  I read something recently that went something like this, “The person you are today can not obtain, own & control the dreams you have for tomorrow.  Who you are today is not capable of having that or you would already have it.”  With that said, I’m a bit hesitant to set solid goals in the future because I may be putting a huge ceiling on what I’m really capable of.

Further, life happens.  I believe that there are different paths that I can take that will make me successful and happy as I look back at my life.  Because I’m on a certain path right now, doesn’t mean that I have to stay on that path forever.  Opportunities are created but you have to be open minded enough to see them.

(3) The goals right in front of me are clear.  I’m trying a new system here where I set 3 big goals every month.  My weekly and daily goals involve accomplishing tasks that guarantee that these goals get accomplished.  There are obviously other things that must get done on a daily basis, but I make sure that I get at least 1 thing done for my big monthly goals.   These goals are clear because I know where I am now and where I want to be in 3 months a year so I can really break down what needs to get done.

So, that’s how I look at goals.  I was actually planning on writing about creating specific financial goals for your business but this came out instead.  I guess there’s going to have to be Part 2.

Do you have goals for your life?  For your business?  For your relationship?  Let me know in the comments.

 

cash-flow

Bookkeeping 101: Managing Cash In Your Business, Pt. 1

Cash Flow is the financial life blood of your business.  It’s important to have a very good understanding of how much money you have at a given time as well as a firm grasp on how much and when money is coming in and going out every month.

One of the three major financial reports is the Cash Flow Statement.  This report is beneficial & I will cover it soon, but I think that the “Cash Sheet” is a better day-to-day tool for managing your cash flow.

The “Cash Sheet” is a report that you can keep up with daily or weekly to know exactly how much money you have available.  See, two of the biggest financial mistakes I see business owners make relate to cash management.  First, they don’t have a system for paying bills.  Second, they use their bank balance as a guide to making decisions.

There may not be a perfect system for paying bills but I have found that paying bills twice a month works really well.  That means picking 2 days roughly 15 days apart and only paying bills on those days.  It also helps to get your automatic drafts to come out on those days as well.  For example, your two days could be the 5th and the 20th or the 15th and 25th.  The benefits of this systems are: (1) You save time only paying bills twice a month rather than throughout the week/month (If you read Tim Ferriss’ “4 Hour Work Week”, this is what he refers to as batching).  (2) You can see how and when cash moves in and out of your business.  Cash comes in through deposits and accumulates.  Then cash goes back out as you pay your expenses.  It’s similar to an ocean tide…you see the high tide and low tide twice a month.

Getting this system set up takes a little bit of work on the front end but it’s well worth it in the long run.  Some things you need to do are communicate with your employees and vendors and anybody else who may be effected by the change.  Let them know about your new system and when to expect payments.  If you have any automatic drafts, you will need to change those.  You will have to stay disciplined and not cave in anytime a vendor requests payment.

Your bank account should not be used to make financial decisions mainly because it may not tell the whole truth.  Your bank account might show that you have plenty of money to pay your bills but it doesn’t show you that you have a bank draft and uncleared checks.  This is where the “Cash Sheet” comes in really handy.  It tracks the actual cash that you have available plus shows you what drafts you have coming up.

So, what is a “Cash Sheet”.  There are different formats that you can use but here’s the one I made for my gym.  Feel free to steal it or adjust it to fit your liking.  If you are in fact following the twice a month system mentioned above, you could probably make this a weekly report that you update every Monday.

Grab my cash sheet here.

If you need any help setting up your cash sheet or managing your cash flow, reply to this message and let’s chat.

Here’s that link again: https://drive.google.com/file/d/0B7l18ITYRsbvSHpYV3p0MkZrNXc/view?usp=sharing

 

success

Measuring Success For Your Business

Owning and running a business involves a lot of moving parts.  From a broad perspective, your business effects the lives of you and your family, you staff, your clients, your community and potentially investors as well.  That can make it difficult to define what success means for  your business means TO YOU.

That is the beautiful thing about success.  It can mean whatever YOU determine it to mean.  You may be fine working 16 hour days and not making a ton of money as long as you are changing the lives of your coaches and clients.  On the flip side, your idea of success might be having a $1,000,000 gym with little concern for your staff and clients as long as they continue to help you make money.  In reality, we want it all and typically the two go together (the more you take care of your staff and your clients, the more money you will make).

Since success can mean what ever you want it to mean for you, it is important to define what that is.  If you fail to determine what success is for you, you will ultimately remain unfulfilled.  Here are a few categories to help prioritize what success means TO YOU for your business:
– Great results for your clients
– Financial security and freedom for you and your family
– Having a lot of members
– Never working a 9-5 job again
– Being in control of your schedule and being able to take vacations when you want

Now it’s likely that your definition of success is some combination of these – and that’s fine.  But take the time to go through this list (and come up with others) to define what will make you feel successful in your business.

After you have defined your big picture of success – your ideal business – it’s important to map out what it will take to get you to that point.   You likely are not where you ultimately want to be…and that’s ok; that doesn’t mean that you are not successful.  It does mean that you need to work on being successful a majority of  your days until you reach that point (and beyond to keep your success up).  You need to begin following the success cycle.

The success cycle begins with an activity.  That activity will give you a result.  If it’s not the desired result, then learn from your mistakes and go at it again until  you get the desired result.  That result leads to success.  Success gives you more confidence which makes you more active and you get more results and feel more success.  This process continues, picking up more and more momentum as you go.  The important thing is to start small with the success cycle.  For instance, when I work with gyms to get their profit where it should be, we start off very small.  I want that first step to be easy.  Once they have success on the first step, we’ll take a little bit bigger step and so on until they reach their goal.  I’m sure you do the same thing with clients.  Do you start with 1 new habit until they master it or do your throw the whole book at them?  You are familiar with the success cycle as it relates to training clients, now just apply it to your business.  Starting off, pick 1 thing that will move your business towards your definition of success and do it every day.  Here are a few examples:

Example 1:   If you get your client great results but you have trouble getting new members in the gym, then set a daily goal of asking 2 members for referrals.  After a week or so, this will become easy and you may want to increase it to 4 or 5 members per day.

Example 2:  If you have had trouble developing your systems, set a daily goal to get a systems manual or videos completed.  30 minutes a day would be a great way to start (as long as it was a focused 30 min.).  Make sure you do that every day and you should have your entire business documented in about a month.

You get the idea.  Figure out where you need to improve the most or what will have the biggest impact on your business and work daily to get there.  You will feel successful on a daily basis and you will make great strides towards your ideal business.

A final note about success: Remember that YOU choose success.  Just because somebody has a bigger gym or more clients than you does not make them more successful.  Also, because somebody on Facebook says that successful gyms all do X, does not mean that you are unsuccessful if you do Y.  YOU define what makes YOU successful.  But YOU have to define it or other people will.

 

 

training-barbell-muscles-hands-39613-medium

Working Hard Or Getting Better

Earlier today I was talking to a member at our gym.  He asked me, “Why are y’all programming these watered-down workouts.  Are y’all trying to appeal to the soccer moms?”  First, I explained a bit of the rationale behind our programming – such as being in the first week of a new cycle and focusing on basic movement limitations we noticed during the last training cycle – which didn’t get through to him.  So then, I asked him, “Do you just want to work hard, or do you want to actually get better?”

We see this a lot with athletes.  They want to work hard…if they aren’t laying in a puddle of sweat and tears after a workout, then it wasn’t a great workout.  They are willing to “crush it” every time they come in the gym but when we ask them to spend time on shoulder and hip mobility so that they can move safer and more efficiently (aka: get better) – they don’t seem to have the time or energy.

As frustrating as this can be for a coach and gym owner, we do the same thing in business.  We work harder and put in longer hours to improve our business but we still don’t do the things that matter…the tasks that will actually make your business better.  We will try the newest marketing trends, spend hours programming workouts, updating social media, bookkeeping, sending emails, newsletters, cleaning, etc. but don’t spend the time to develop systems and train employees, network or get great at 1-2 marketing channels that will bring in new clients over and over.

I am not saying that programming, bookkeeping and emails are not important or that hard work is not required.  (For the record, bookkeeping is very important & I’d love help you out with it).  There are definitely tons of tasks that must get done and a lot of hard work that must go into a well-run gym.  The point is that often times we focus on putting in more effort rather than doing the things that will actually make your business more successful.

So, are you guilty of working harder without getting better?  I know I still am from time-to-time!  What can you do to get better this week?

IncomeStatement

Gym Bookkeeping 101: The Income Statement

In Part 4 of the Gym Bookkeeping 101 series, I’m covering the Income Statement.  The Income Statement is the 2nd of the 3 major reports that I’ll cover (I wrote about the Balance Sheet here and I’ll have the Cash Flow Statement out in the near future).  The Income Statement, also known as the Profit & Loss Statement or P&L, is the most commonly used statement by small businesses including gym and fitness businesses because it shows the profitability (or lack thereof) of over a specified period of time.  The formula for the Income Statement is:

Revenue – Expense = Profit

Here is an example of a gyms Income Statement for a 12-month period.

Revenue
Sales                                               $255,000
Pro-Shop Sales                              $  31,000
   Affiliate Sales                                 $  14,000
Total Revenue                                  $300,000

Expense
Cost of Sales                                  $  18,600
Advertising                                     $  12,000
Education & Training                     $  10,000
Insurance                                        $    2,000
Interest Expense                            $    1,350
License & Fees                               $    1,500
Meals & Entertainment                $    2,100
Payroll Expense                             $166,650
Payroll Tax Expense                      $  17,000
Professional Fees                          $    5,000
Rent Expense                                 $  36,000
Repairs & Maintenance                $    3,600
Supplies                                          $    1,800
   Utilities                                           $  12,000
Total Expense                                   $289,600

Profit                                                  $ 10,400
Revenue includes sales from your main operations such as training/coaching and pro-shop sales.  It also includes income from non-core operations, such as interest income from a savings account or affiliate revenue.

Just like the revenues, your expenses include costs incurred in order to earn revenue from your normal operations as well as from secondary activities, such as financing.

It’s important to mention the matching principle of accounting in this discussion.   The matching principle associated with the accrual method of accounting (which you should be using) states that your expenses should be reported in the same period as the related revenues.  For instance, if you have a client pay you up front for a 12 month membership, then you should not recognize all of the revenue when you receive the payment.  Instead, you should recognize the revenue over the 12 months that the membership takes place since that is when your expenses of servicing that client take place.  On the opposite side, when you buy $10k worth of equipment in cash, it is not automatically an expense.  It will be expensed each month over its useful life through depreciation.

The Income Statement is a great tool to use in analyzing your business but here are a few reasons not to rely solely on it for making operational decisions.

(1) You don’t get the whole picture by just using the Income Statement.
– The income statement shows revenue earned but it does not show if your company actually collected the money.  Likewise, it shows the expense but doesn’t tell you if those expenses have been paid         for…or even if you have the cash to pay for them.  Also, cash payments do not always mean that an expense has occurred (cash to pay down a loan reduces a liability but is not an expense.)

– In short, the Income Statement, shows you if you are profitable but it doesn’t show you how well you are managing your money.  And since cash is the life-blood of your company, it is important to              keep an eye on that as well as your profit.

(2) The actual formula for the Income Statement can work against human nature. Mike Michalowicz, the author of Profit First, made me first aware of this and it was one of those times when you don’t realize something that’s all around you until somebody points it out and then you see it everywhere.  Mike’s theory is that it is human nature to grow the things you focus on.  Thus, with the Income Statement, if you focus on Revenue and Expenses then you will grow those…both of them.  It’s human nature to spend more when you make more.  If you buy a bigger house, you will buy more stuff to put in it.  It’s just natural.

So, Mike recommends flipping the formula a little bit so that you focus on what’s really important…Profit!  Instead of looking at it as:

Revenue – Expense = Profit

Use the Profit First formula:

Revenue – Profit = Expenses

Guarantee your profit by taking it out before you spend all of your revenue on expenses.

Ego Is The Enemy

I’m taking a break from the regularly scheduled Bookkeeping 101 post to step back and look bigger picture.  I was listening to the Tim Ferriss Podcast the other day and he had a reading of Ryan Holiday’s new book, “Ego Is The Enemy”.  In this chapter titled, “What’s Important To You?” Ryan puts into eloquent words the ideas that I often think about & fail miserably at explaining.  So, since he does it much better, here are his words,

“According to Seneca, the Greek word Eutemia is one we should think of often.  It is the sense of our own path and how to stay on it without getting distracted by all the others that intersect it.  It’s not about beating or having more than the other guy.  It’s about being what you are and being as good as possible at it without succumbing to all the things that draw you away from it.  It’s about going where you set out to go.  It’s about accomplishing the most you are capable of in what you choose.  No more.  No Less.” …” Eutemia means tranquility in English.  It’s time to sit down and think about what’s truly important to you and then take steps to forsake the rest.  Without this success will not be pleasurable or nearly as complete as it could be.  Or worse, it won’t last.  This is especially true with money.  If you don’t know how much you need, the default easily becomes – More.  And so without thinking, critical energy is diverted from a persons calling and toward filling a bank account. ”

There is so much goodness in those words.  Read it a few more times to let it sink in.

Pat Rigsby always talks about building your ideal business.  What is implied in that is that your ideal business supports your ideal life.  Have you taken the time to really sit down and figure out what you want in life, what’s important to you, what you value?  If not, will your business ultimately be able to make you happy or fulfilled?

Your homework for the week is to buy and read “Ego Is The Enemy” (or at the least, print out this excerpt) and review these lessons regularly.  It will remind you that you only have one life to live.  Make sure that it is the life that you want, not one dictated by others or by your ego.

 

balance sheet

Gym Bookkeeping 101: The Balance Sheet

The Balance Sheet is the first of The Big 3 Financial Statements that we’ll cover (The Income Statement and Statement of Cash Flows are the other two).  An easy way to remember the Balance Sheet is to think of it as the “O’s” report.  It reports what you Own (Assets), what you Owe (Liabilities), and what’s left Over (Equity/Retained Earnings).  The formula for the balance sheet is:

Assets = Liabilities + Equity

As the name implies, the formula must balance so if you have $50,300 in assets, the sum of your liabilities and equity must also be $50,300.

Here is an example of a Balance Sheet as of 6/30/2016 from a training gym:

Assets
Current
   Bank Accounts:            $20,000
Accounts Receivable:  $ 1,800
Fixed Assets
Gym Equipment:          $25,000
   Office FF&E:                  $  3,500
Total Assets                      $50,300*

Liabilities
Current
Accounts Payable:        $ 2,200
Current Loans Due:      $ 5,800
Long-Term
   Equipment Loan:           $18,000
Total Liabilities                 $26,000

Equity
Retained Earnings:      $16,000
   Net Income:                 $  8,300
Total Equity                     $24,300
Total Liabilities & Equity  $50,300*

 

Assets (what you own) are what you use to run your business.  They are listed on the balance sheet in order of their liquidity (how easily they can be converted into cash).  So, all of the current assets are listed first and the non-current assets are listed next.
Current Assets – have a life-span of 1 year or less, meaning they can easily be converted to
cash.  Examples include cash, accounts receivable and inventory.
Fixed Assets – are non-current assets that have a life-span of longer than one year & will not be turned into cash
within the next year.  Examples include gym equipment, computers, buildings, goodwill (your
brand).

Liabilities (what you owe) are your financial obligations to outside parties.  Liabilities are also listed according to liquidity.
Current Liability – your bills that must be paid within one year.  Examples include accounts
payable, short-term loans and the current portion due of long-term debt.
Long-term Liability – debts and other financial obligations which are due in over one year.  The
main example for gyms would be a loan.

Equity (what’s left over) represents your company’s total net worth.  It is the sum of your initial investment plus or minus retained earnings.

That’s great but what does my Balance Sheet tell me?

First off, it’s important to remember that the Balance Sheet gives you a snap-shot of your company’s financial position at a specific point in time.

By analyzing the balance sheet, you can determine your ability to pay your bills, your operational efficiency and the net worth of your company.

One of my favorite ratios to use from the Balance Sheet is the Current Ratio (aka working capital ratio).  The Current Ratio indicates whether your company has enough short-term assets to cover your short-term debt.  If it doesn’t, indicated by a low Current Ratio (below 1), you may have a tough time paying all of your bills in the coming weeks or months.  On the flip side, a high Current Ratio isn’t necessarily a good thing either as it could indicate that money is tied up in inventory or receivables are not being collected.

There is definitely more analysis that can be done with the balance sheet but the first step is understanding the basics.  Feel free to contact me if you have any questions on the balance sheet.

Chart of Accounts

Gym Bookkeeping 101: Your Chart of Accounts

Hold on to your socks…today we are going to talk about your chart of accounts & I don’t want to blow  your socks off.  I understand, as a gym owner you don’t get out of bed to learn accounting basics.  But trust me, understanding this stuff will make you a better owner.  Just think about who your best clients are – are they the people that just show up because they know they should and don’t really care about learning anything or are your best clients the ones that are truly interested in learning about how to eat better and move better?  So, be that good client and get your learn on with this Bookkeeping 101 for Gyms and Fitness Professionals series.

First off, what the hell is a chart of accounts?

The chart of accounts is a listing of the accounts available in which you record entries.  The chart of accounts should be tailored specifically for your industry or even more specifically to your operations.

That’s simple enough, but the order in which they are listed deserves a little explanation as well.  The chart of accounts lists all of the Balance Sheet accounts first and then all of the Income Statement accounts.

Balance Sheet Accounts:               – Assets
– Liabilities
– Owner’s Equity

Income Statement Accounts:       – Operating Revenues
– Operating Expenses
– Non-Operating Revenues
– Non-Operating Expenses

(Check out the posts about the Balance Sheet and Income Statement for more info there).

Your chart of accounts should be simple enough that you are able to use them year-to-year yet specific enough to provide useful financial data.

To get you started, here is a sample chart of accounts for a gym:

Asset Accounts – Balance Sheet

1001      Cash (Checking Account)
1010      Savings Account
1200      Accounts Receivable
1400      Merchandise Inventory
1600      Prepaid Insurance
1700      Land (if you own your building)
1750      Buildings (if you own your building)
1760      Accumulated Depreciation – Buildings
1800      Equipment
1810      Accumulated Depreciation – Equipment

Liability Accounts – Balance Sheet

2000      Accounts Payable
2100      Wages Payable
2200      Interest Payable
2300      Unearned Training Revenue
2400      Mortgage Payable (if you own your building)

Owner’s Equity Accounts – Balance Sheet

3000      Capital – Owner X
3005      Draws – Owner X
3200      Retained Earnings

Operating Revenue Accounts – Income Statement

4000      Group Training Sales
4010      Personal Training Sales
4020      Specialty Program Sales
4030      Nutrition Coaching Sales
4040      Pro-Shop Sales

Operating Expense Accounts – Income Statement

5000      Cost of Merchandise Sold
6010      Advertising
6020      Bad Debts
6030      Bank Charges
6040      Charitable Contributions
6050      Dues & Subscriptions
6060      Gym Equipment/Supplies
6070       Insurance
6080      Janitorial & Cleaning
6090      Lease Expense
6100       Legal Expense
6110        Licenses & Permits
6200      Meals & Entertainment – 100% Deductible
6210       Meals & Entertainment – 50% Deductible
6300      Office Expense
6400      Payroll Expense – Group Training
6410       Payroll Expense – Personal Training
6420      Payroll Expense – Specialty Program
6430      Payroll Expense – Admin
6440      Payroll Expense – Owner’s Pay
6500      Payroll Tax Expense
6600      Rent
6610       Repairs & Maintenance
6650      Training & Education
6670      Travel
6700      Utilities (I include gas, water, electricity, phone, internet, cable)
8000      Amortization
8050      Depreciation

Non-Operating Revenues & Expenses – Income Statement

8500      Interest Income
8600      Interest Expense

 

Use this chart to get your bookkeeping started.  Let me know in the comments if you have any questions.

Bookkeeping101

Gym Bookkeeping 101 – Definitions

In the first of several posts Bookkeeping Basics for Fitness Professionals, I’ll define some basic terms used when managing your finances.  This list is not exhaustive & I’ll continue to add to it over time.  However, my goal is to make it helpful to Fitness Professionals so I’ll only include definitions that apply to most gym businesses & fitness professionals.

Definitions

Asset – resources owned by a company and which have future economic value that can be measured and can be expressed in dollars.   Assets are found on the Balance Sheet.

Common examples in gyms include: cash, accounts receivables, equipment (tvs/computers & exercise equipment), inventory (apparel, supplements, drinks and bars), and buildings.

Accrual Basis Accounting – an accounting method that measures the performance of a company by recognizing economic events regardless of when cash transactions occur.  Revenues are matched to expenses at the time when the transaction occurs rather than when the payment is made or received.

Income example: A client pays $900 for 3 months of training.  Even though you received $900 in month 1, you would recognize $300 in month 1, $300 in month 2 and $300 in month 3.

Expense example: You pay $1000 for 100 t-shirts ($10/each).  In month 1 you sell 40 shirts for $20/each for $800 in revenue.  You would recognize a cost-of-goods sold expense of $400 (40 shirts x $10) in month 1 and you would still have $600 in t-shirts in inventory.

Balance Sheet – one of the main 3 financial statements.  It reports the assets, liabilities and owner’s equity at a specific point in time.   It’s a “snapshot” of what the company OWNS and OWES.

Assets = Liabilities – Owner’s Equity

Cash Basis Accounting – an accounting method in which revenues are recognized when cash is received and expenses are recognized when paid.  This method is typically followed by individuals and small companies.  It is inferior to the accrual basis accounting method.

Cash Flow Statement – one of the main 3 financial statements.  It reports the sources and uses of cash by operating activities, investing activities, and financing activities.

Equity – found on the Balance Sheet, it is the difference between assets and liabilities.  It represents the net amount of funds invested in a business by its owners, plus any retained earnings.

Expense – an expense is the money spent or cost incurred in a company’s effort to generate revenue.  They are the cost of activities directed towards making a profit.  Expenses are found on the Income Statement.

Common Gym Expenses: Rent, Payroll, Utilities, Supplies, Credit Card Processing Fees

Fixed Costs – costs or expenses that do not change in response to changes in sales or other operations.

Example – Rent & Utilities

Income Statement – or Profit & Loss Statement (P & L).  It is one of the main 3 financial statements.  The income statement reports revenues, expenses, and profits or losses for the company over a specified time period.

Revenue – Expenses = Profit/(Loss)

Inventory – a current asset whose balance should report the cost of a company’s products waiting to be sold.

Example – unsold apparel, supplements, bars, drinks, etc. purchased for resale

Liability – An obligation of a company such as an amount owed to lenders or suppliers or advanced payment for a future sale or service to be performed.  Liabilities are found on the Balance Sheet.

Profit – found on the Income Statement, profit equals your sales minus your expenses.

Revenue – the sum of all money taken in.  This is the first item on your Income Statement.

Variable Cost – expenses that vary with some activity.

Example – your payroll expense for coaching will go up as your revenue from coaching increases.

profit-tv-show-650

The Profit And The 3 P’s

One of my favorite shows on TV is “The Profit” w/ Marcus Lemonis. If you haven’t seen it, it’s kind-of like “Shark Tank” but he only deals with one business per episode and it shows the different stages of the transaction (if there is one). Marcus has a simple way to evaluate each business. He uses the 3 P’s: People, Process, and Products.

PROCESS
A process is a systemized way of dealing with all aspects of your business. For gym owners, do you have a system for generating new leads, sales, programming, training, selling products, cleaning, hiring and training staff, processing membership payments, accounting, analyzing your numbers? Processes allow your business to grow and allow you to work on bigger picture tasks (and occasionally take a vacation).

Marcus only buys companies that he can scale up or grow (a lot). If you don’t have systems/processes in place, your business don’t have the ability to grow. Now, if the systems were perfect, then the business might not need Marcus so it’s rare that you see perfect systems on the show. That’s actually where he makes a lot of his money. He comes into a business with good people and a good product but not great systems and he sets up great systems that change the profit of the business.
Your processes should always be evaluated and improved upon so don’t think it has to be perfect from the start – just think, “What would Marcus do?”

PRODUCTS
Products are what businesses sell. For gyms and trainers, this is your training and nutrition services, apparel, equipment, supplements, etc. Ideally you deliver a good, if not great core product. You won’t keep customers very long and Marcus won’t invest in your business if you have a crappy product. Now, that doesn’t mean that there can’t be improvements to your product or to your product line…but it always starts with have a great core product.

PEOPLE
People include the ownership and employees in your company. Everybody is important but the owners are the most important in this context. They started the company – they had the initial vision – they should be the one’s steering the ship forward towards prosperity. And ultimately, they own the company so they call the shots. Employees are very important as well, but it’s easier to get rid of a bad employee than it is to get rid of a bad owner (by the way, being a bad owner doesn’t make them a bad person – they just may not have the right skill set to run a company).

According to Marcus, this is the most important of the 3 P’s. You can’t fix a bad owner that is not willing to change. You – the owner – are the leader of your business. You will either move it forward or be what’s holding it back.

So, analyze your 3 P’s today. Can you improve your 3 P’s?

If you need help improving your 3 P’s, shoot me an email and we can chat.