1% Profitability System
Today, we’re talking about the easy way to make your business more profitable with the 1% profitability system.
So, this week’s tip is what I call the 1% profitability system. Everybody asks me how I can run a more profitable business. “What you can do to make your business and your gym more profitable”?
And they start off always complicated, formulas, everything like that. This is fine but make sure you’re doing that using an accountant and a financial advisor.
DO THE 1% PROFITABILITY SYSTEM
But if you’re just getting started, do the 1% profitability system. So, take your gross sales from last month or the average of the last three months, and see what your gross number is.
And then start putting 1% of that away every month. It’s not going to be a lot, it’s going to be easy. You have to cancel your recurring bill for something but that’s fine.
Start with that 1% and have that go into your business savings account. And now, this is how you’re going to make it more profitable as you go, every month keep adding 1% until it gets uncomfortable.
Then, you’ll look at it like,
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“Okay, I’m getting pretty close to where I don’t have enough money to do anything.”
Because this money is going to go into your savings account. Only use this to grow your gym. Or when you take money out to put into your investments for your retirement, planning for your future, your kids, for things like that.
CONCLUSION
Just start really basic because if you start with 10 or 20%, it’s going to be super complicated. You’re going to get frustrated.
It’s going to be a shocker when you try to pull the money out and you’re going to freak out.
But with 1%, you’re not going to miss that. As you start growing, as you start to find that comfortability level, and then you’ll know exactly where it is, it gives you that number right there.
So, just get those things. Make sure you start off with the 1% system.