Are you spending more than you’re making?
We will get their info up on our website soon…
And you will see that they have both have great experience in the CrossFit space.
Eryn is a fellow Profit First Professional like me.
And she owned and sold a CrossFit gym…
Currently still coaches at one..
And is a Zen Planner ninja.
And I collaborated with her on today’s post.
Her question that we are going to address is;
How does a box avoid spending themselves out of business?
The short answer is Parkinson’s Law.
Parkinson’s law is the REASON boxes can spend themselves out of business
AND it’s the reason business can protect themselves
The law is that “work expands to fill the space available for its completion.”
This is why lots of college kids write their term papers in a few weeks..
Or hours before the end of the semester deadline.
They had the whole semester to work on it.
But waited until the end.
One of my favorite maxims of life is…
“all human performance happens to a deadline.”
I see this every April 15th!
So if you give yourself two weeks to do something…
Chances are you are going to take the two weeks.
But this also applies to money.
When someone sees a pay increase…
Their lifestyle expenses will increase around the same time.
My first job out of college was with a door to door sales company.
They did 30 million dollars in revenue….
The same year they declared bankruptcy.
What the junk?
It’s because their expenses expanded to meet the cash available to spend.
They didn’t protect themselves from Parkinson’s law.
And boxes that do less than $500k in revenue
Have fallen into the same dilemma.
No size of business is immune from this natural tendency.
The solutions are simple.
Just not easy.
The first step is to figure out where your business falls currently.
Most banks allow you to export your transactions into an excel file.
- So go into your bank (and credit cards) and download your transactions into excel. Use the last quarter of transactions. Or all transactions for the entire year if you want.
- Then sort that excel file by money spent and money received.
Are you spending what you are receiving?
We’ll tell you what to do with this info in our next post.
Here’s to your financial health.
John Briggs & Eryn Smith
If you want a guide we put together that gives you 10 critical steps to helping you 10x your profitability then check this out!