Driving Your Business By The Numbers Key Numbers

Driving Your Business By The Numbers

Key Numbers • • • BOE - Base Operating Expense Cash Flow Receivables Base The Daily Number Profit Mode 20% Net Profit 40 -60% for renewals, sign ups, and phone calls Session #’s / Client Visits NET Members Profit Centers - Net 20% profit - $5. 00 a client visit

Base Operating Expense Rent - $3000 (at $2. 00 a sq ft 1500 sq ft) Utilities- $300 Marketing- $1000 (SHOULD BE 10% of Budget) Fixed Payroll(YOUR Pay Plus Office Manager/Front Desk)- $5000 Insurance $200/month Professional Development- $300(SHOULD BE >3 -5% of Budget)

Cash Flow Total BOE = $9800 If you do not make more than $9800 per month your “Cash Flow” is NEGATIVE = in the “RED” If you make more than $9800 per month your “Cash Flow” is in the POSITIVE = “in the BLACK” Goal – 20% NET Profit GOAL = $11760

Receivable Base Having a receivable base knocks off some of your Goal on Day One! If you have 10 members on a $199 a month membership, your receivable base is $1990. 00 ($199 x 10 members) So, your goal of $11760 a month right away is down to $9770 which takes your daily # from $534 to $444 a day. Almost $100 less a day!

Essentials Membership $197 x 12 + $89 = $2, 453 Costs of Goods Sold - $39 Shirt, Bag, and Water Bottle - $73. 59 Merchant Fee of 3% Total Profit per Essentials Member = $2, 340. 41

Customized Membership $297 x 12 + $89 = $3, 653 Costs of Goods Sold - $39 Shirt, Bag, and Water Bottle - $109. 59 Merchant Fee of 3% - $780 ($15 x 52) Trainer Payroll - $93. 60 (12% in CA) Total Profit per Customized Member = $2, 630. 81

Base Operating Expense Rent - $3, 000 ($2/sq. ft. /mo. x 1, 500 sq. ft. ) Utilities - $300 Marketing - $1, 000 (10%) Insurance - $200 Professional Development - $1, 000 (10%) Fixed Payroll YOUR Salary - $4, 000/month Admin - $2, 000 (40 hours @ $12/hr. ) Group Classes - $2, 600/ (20/week @ $30/class) Total Monthly BOE = $14, 100 Annual BOE = $169, 200

Annual BOE = $169, 200 • Total Profit per Customized Member = $2, 630. 81 • Total Profit per Essentials Member = $2, 340. 41 Need 72 Essentials Members (If they all were Essentials)

60% Rule • >60% of the phone calls should show up in your door • >60% who show up should sign up • >60% who sign up should renew

Business Owners Daily Agenda • Hit Your Daily # (example - $444/day) • Hit your Phone Call Goal (example - 1 call every day) • 60% RULE with phone calls, sign ups, and renewals • WORKOUT!