Knowing your revenue is a necessary basic, however, you can also get very granular with tracking revenue based on what your goals are. If you have multiple revenue streams you can break down your sources of revenue into categories for tracking purposes such as: For example, many gym owners include the sale of additional services or goods beyond gym membership such as retail items in order to grow revenue. Revenue is also sometimes referred to as “Total Revenue” when you have more than one source of revenue, often referred to as revenue streams. What is it? Revenue is the sum of all the money that your business receives from the sale of services and products. How do I track it? Expenses can be tracked with the assistance of an accountant or using accounting software such as QuickBooks. The goal for every gym owner should be to keep expenses in check while increasing Revenue (see below) to make sure that you can afford to stay in business.įixed Costs + Variable Costs + Semi Variable Costs = Expenses Why is it important? It’s important to track how much and when your expense payments are to be made as well as how that lines up with your Income (see below). those that stay the same such as rent, Variable Costs that fluctuate depending on your business’ activity such as advertising or equipment repair, and Semi-Variable Costs that fluctuate more slightly such as electricity bills, taxes, payroll, etc.

Startup expenses might include real estate and improvements, equipment, furniture, and signage to name a few examples.Īdditionally, your expenses are made up of Fixed Costs, i.e. What is it? Expenses are your total outflow or the amount of money that you owe each month (including the cost of labor) in order to keep your business running.įor new gym owners, there may also be two categories of expenses: startup expenses and ongoing operating expenses. Use this article as a guide or refresher to effectively set your membership prices. Note for new gyms: Before you open your doors you will need to figure out your pricing strategy, how much you will need to charge members in order to keep your gym in business long-term. It’s important to note that while some of these metrics can be tracked in your gym management software, others might require the assistance of an accountant or accounting software. Master these and you're well on your way.

They should be tracked each month and be used as indicators into your business, showing you where you need to focus your efforts. The following eight financial numbers are some of the most critical data points every gym owner should know.

You may hear 'financial reporting' and 'metrics' and think 'snoozefest' but it could not be further from the truth. When it comes to owning and operating a gym, there are countless metrics you could track to gain valuable business insights.

Lifetime value of a crossfit member