As owner and general manager of your business, the most important decision you make every day….is how to spend your limited time. On the financial side of the business — should you focus on fitness studio costs and the p&l. Or on driving revenue?
Obviously all business owners need to do some combination of both — but we believe
driving revenue should be the priority for a boutique fitness studio.
There are a few business-model reasons for this. First of all, many of your core expenses are fixed and cannot be significantly impacted by your attention: Rent, insurance, utilities, equipment leases are examples. A large cost area is staffing, but if a solid framework is in place at the outset (and is adhered to), this is generally not an area that takes a lot of attention (financially).
Secondly, many of the business expenses in this model are NOT volume dependent….meaning they do not go up based on volume (as they would with a restaurant or a retail store that sells products). Because of this, driving attendance and volume can add hugely to the bottom line. It is no more expensive to run a class with 10 members than it is to run a class with 30 members (for the most part), but a class with 30 attendees is much more profitable.
If time was unlimited, it would make sense to have every detail of the business examined all the time…..but time is limited. Every hour you spend connecting to your customer base, connecting tothe community and unearthing new customers has a real and definable impact on business results.
Time spent on studio cost control, p&l when it means shopping for cheaper supplies or suppliers and on tweaking small expense areas — is fine as long as it does not distract from the biggest priority: driving attendance.