Running a business is not easy. You may see a business owner from the outside and think, “Wow, they have it made.” But if you could see inside, you would realize the stress, headaches and anxiety that come with being a business owner working to make enough money to survive. Once your business starts to gain traction, you begin to see the light and understand why you became a business owner in the first place.
If you are already a fitness business owner, you already know this, but depending on where you are in your business ownership journey, you may need some help to get you to the light sooner. Below are five tips that can assist you in ensuring your business makes more money.
1. Do Regular Tax Planning
Tax planning can help you minimize your taxes. It should be your first expense to minimize. As a business owner, you have two ways to put cash in your pocket: make more or spend less. For many business owners, taxes are the biggest expense, so it makes sense to focus on minimizing this. Tax planning guarantees results. You can spend so much time, money and effort advertising your business, which is important, but there are no guaranteed results. However, if you correctly organize your company, you will see a tax savings.
2. Monitor Spending
Look at how your money is being spent in your business. Examine your income statement monthly and go through your monthly expenses to see if anything can be trimmed. A recurring charge that goes unused may offer savings if you cut it, adding up to a savings of thousands of dollars over time. So take the time to monitor your expenses for possible savings. Remember, no expense is too small.
3. Projections and Goals
As a business owner, you are the captain of the ship. If you don't do projections for your business, you will be steering the ship into empty space. Put your projections and goals on paper. Not only does this help you to see how well you are doing, but it also gives you focus. These projections and goals do not have to be 100 percent accurate. The idea behind projections is to have a reference point and a direction for your business with the understanding that a change in direction is possible and alright.
4. Focus On What You Do Best
Focus on what you do best in the business and leave the rest to the experts may seem counterintuitive after talking about monitoring your spending and cutting the fat where needed, but it isn't. Many business owners who turn over their bookkeeping experience an immediate uptick in business simply because the owner is focused on growing the business instead of handling bookkeeping.
Look at your skills to determine where your time should be spent to best turn the business into what you envision. Then, look at the tasks you are spending time on that you may not be skilled in and consider outsourcing them to an expert so you can focus on your skills to better run your business.
5. Be Held Accountable
Owning a business is tough, but it can also be rewarding. Seek a mentor and/or an accountability partner who can help you through your journey and keep you accountable. You are not the only one doing this so do not feel like you are alone.
Mike Jesowshek, CPA, is the founder of the accounting firm JETRO and Associates. His team at Jetro and Associates is also the official accounting firm for the Association of Fitness Studios (AFS). Jesowshek has a passion for both fitness professionals and technology. He helps provide a digital accounting, bookkeeping, and tax solution for studio and gym owners who are looking to take it to the next level by utilizing modern, cutting-edge technology. You can reach him at MJesowshek@jetrotax.com or 844-327-9272.