Managing Your Cash

With over twenty years of business experience in the gym industry, Matteo Baker is very familiar with what it takes to run a business and managing his cash flow is no exception. But after meeting a business-savvy client, he was surprised to find there was something he had overlooked. “I had always worked for a corporation and never really understood the value of a solid business management software.”

Matteo had been paying over $700 a month for software that offered support at $350 an hour and a reporting system that left much to be desired. Tired of being overcharged for a program that only drained his budget, Matteo began asking around hoping to find something better.

“With the software I was using, there was no way to track my personal trainers’ schedules, so trainers could go in and book forty sessions for a client when he only purchased ten. One trainer got me for $26,000.”

After hiring detectives, spending months in court and only recouping part of the funds that were stolen, Matteo’s frustrations were growing. It was then a guy walked into his gym and turned his world around.

“His name is Robert King. He came in to work out and we started talking. I was telling him about my frustrations and he told me about MINDBODY. He showed me the software on his phone and I couldn’t believe how easy it was for users to search, book and pay for services.”

After a few encounters with Robert, Matteo began seriously looking into the software and in September 2012 made the switch to MINDBODY. “The reporting is so simple to use, I’ve been able to streamline my payroll and there are so many built-in security check points, I don’t have to worry about my staff stealing from me anymore.”

Matteo sets his budget and works hard on sticking to it. Because unknown circumstances are impossible to project in terms of dollars, he allots a portion of his revenue to an emergency fund, as well as to a savings account that is used to reinvest in his business.

Now that Matteo is able to view and keep track of his business operations with MINDBODY’s customizable reports, he’s feeling much more secure about the future of his business, 220 Fitness and he’s better able to manage his cash flow. “I believe that within the next year I’ll have another acquisition or a new facility. From there I’m hoping to have at least three gyms in Los Angeles and another in Palm Springs.”

“Don’t let your fear of the unknown stop you. Plan for it as best you can. If you make a mistake, that’s okay as long as you grow from it and don’t do it again.”

This blog post is the seventh in our series on opening new businesses. Read the other posts in our series here.