3 Simple Steps to Help You Hit Your Profit Goals
By Nt Etuk
Do you know how much profit you would like to make next month? What about next quarter?
Do you have a plan to achieve that goal?
In boutique fitness, driving profits is a delicate balance between driving revenue and controlling costs. It means tightening the screws on expenditures, attracting new clients with the right marketing message, and keeping existing clients satisfied, all while managing a group of instructors you might not be able to just tell what to do.
Still, instructors are 60% - 90% of your workforce, so enlisting them in your business/profit goals is a must. It just isn’t easy.
Giving instructors goals that align with your profits, tools to help them achieve them, and feedback on how they’re progressing can be difficult and time consuming but the benefits can make the difference between a successful, more easily managed business and one that isn’t.
Ideally, aligning your instructors with your profit goals would as simple as the following 3 steps:
- Have a conversation, “Jane, the target class size for your next quarter is 15. All efforts you can make to help us get there would be amazing. In fact, if you can hit that we can offer a small bonus for all your efforts.”
- Provide Jane with tools and direction she can use to boost retention and hit her goals.
- Evaluate Jane’s monthly, quarterly and yearly progress.
Simple and powerful, right? Well, here’s how you do that.
Step 1: Translate your financial goal into class size goals.
- Give your instructors class size goals specific to each one of them that allows you to hit your profit goals. Now everyone is vested in the financial success of the business and knows exactly what they can do to help.
- Tools such as the FitGrid Calculator can help you to simply and easily find out the class size each instructor needs to achieve breakeven and help hit your profit targets.
Step 2: Give your instructors the tools to hit those profit goals.
- Encourage your instructors to do all they can (teach a great class, post to social media, etc.) and give them additional tools to increase return visits (e.g. sales training, continuous feedback)
- For example, giving them the FitGrid app would allow them to:
- Quickly and easily send personalized follow-up messages that drive retention.
- Receive in-app instruction on how to drive greater client engagement.
- View the demographics of their classes ahead of time so they can customize classes.
- Drive connection by knowing which clients have hit special milestones.
Step 3: Evaluate how well they’re doing.
- Track your instructors’ profitability and effectiveness. Do this monthly, quarterly, and even yearly to see progress and growth.
- Breakdowns like the FitGrid Instructor Reports come monthly and automatically offer insight into:
- Average clients in class.
- Profitability per class.
- Retention rate.
- Average fill rate.
- Percentage of first-time clients brought back to studio.
Your instructors are the key to your business and the majority of your workforce. Give them the knowledge and tools to help you achieve your profit goals and multiply your chances of success.