We have a problem…
And it’s not what you think it is.
What you can see on the surface is just the results of what is really happening. The frustrations you are feeling can be dissolved. And I can tell you what the problem really is. It’s not your memberships it’s something behind the scenes.
Look, I get the feeling of clients leaving, but it’s not over, and the steps you should be taking aren’t going to be daunting, it’s quite simple really.
I’ll show you what you should be doing today to help get this anxiety off your back and business back on track.
Numbers Tell The Truth
You know what they say, “the journey of a thousand miles starts with one step.”
The first step you need to do is analyze your expenses.
From your marketing costs all the way to your rent expense-line item by line item. Before I told you we have a problem. The real problem is your bank account.
What happens when you see deposits coming in? You get excited and realize you have money to cover your bills. So you go ahead and start paying bills and that bank account slowly starts to decrease in size. The problem is, you’re not thinking beforehand how much you should be paying out for certain expenses!
You’ve got money in your account, so go ahead and pay for whatever right?
This needs to change as there’s a much better way to manage your inflows and outflows.
When you have $10,000 worth of deposits come into your account you’re probably thinking I’ve got 10 fat stacks, when in reality if you have $8,000 of expenses you really need to be operating as if you only had $2,000 in the account.
Do you see the mindshift that needs to occur?
By creating a preserved limitation on your money you will get more creative, make smarter business decisions, and cut fat or unnecessary expenses.
Cut The Fat
So if we look deeper at an example I think this will resonate even further with you. If you look at your expenses each month, (which you should be) you need to make sure you’re cutting the fat. What I mean by that is, you probably have some expenses that are bloated. Once you’ve identified those bloated expenses you can find out which ones you can cut back and still be able to operate.
For simplicity purposes let’s continue with the $10,000 from above.
Let’s say you spent $8,000 last month on operating expenses. What you need to do first is analyze those categories. If you saw you spent $2,000 on marketing and you haven’t seen an ROI, you’ll probably want a smaller marketing budget until you find out which marketing activity works.
Continuing with your expenses and cutting the fat, a lot of our clients have switched from Wodify to Zenplanner. The reason for this is because Zenplanner is less expensive but it offers some features that Wodify doesn’t.
And you should even get into looking out for bank charges. Some banks charge a fee and you might not even realize that until you are breaking your expenses out.
Percentages
The beautiful thing about having a focus on your cash flow is you’ll always have a healthy business. One of the best parts of utilizing Profit First is how customizable it is to your business. You see everything is based on percentages that will allow you to perform at the optimal level. Based on your specific situation you can plug in exact percentages that will pull out the size your expenses should be based on your revenue, and how much to put away for Profit and taxes.
The system is a game changer and will mitigate all that corroding stress that comes from bills and not taking home more money!
The mentality is simple and implementation of the program is a no brainer because it piggybacks on our existing human behavior.
Achieve More
If you want less stress and panic that comes from bills and not taking home a bigger paycheck, then decide now to take action, achieve more, and start living a better life.