Many business owners make daily decisions without considering all the critical facts. That’s likely a large part of why half of all small businesses fail within the first five years. One way to keep your gym on track for long-term success and growth is to create and use a business budget.
With a budget, you know how much money you can expect to come in and go out each month. With that information, decisions like when to buy new equipment, hire another instructor or add classes to the schedule are easy to make. But without a budget, decisions like that are left to intuition and chance. Budgeting is essential because it helps you control your money instead of letting your money control you.
Steps for Creating a Budget
- Create a list of all your income and expenses, considering both recurring and variable expenses. To make this process easier, refer to previous bank and credit card statements to capture an accurate picture of your income and spending.
- Set up a spreadsheet or use free, personal budgeting tools like Mint or Personal Capital to track your income and spending. We recommend online personal budgeting tools over spreadsheets because you can connect them to your bank account and your transactions will update automatically. Additionally, these tools help you analyze your transactions and make a big difference in the ease of managing your money.
- Weekly or monthly, track your actual income and spending against your projected income and expenditure. Then adjust your budget as needed. The goal is to stick with your budget, only spending what you have planned for the week or month. However, unexpected expenses come up, but with a budget, you can recover by spending less the next month.
Of course, budgeting takes time, but it’s well worth the effort. Gym owners should also have and use a personal budget to make sure they’re on track for their household spending and long-term plans like retirement.
To help you quickly establish and use both a business and personal budget, we are launching a comprehensive resource next month, the Gym Owner’s Finance Guide. In it, you’ll read more about budgeting, but also about planning for retirement, establishing routines and habits to prepare for tax time and so much more. Stay tuned for this upcoming launch!
Are you ready to master your finances?
While you wait for the Gym Owner’s Finance Guide to be released, explore AAC’s Full Service Billing.