5 - Making Money

Making Money
Business
noun/biznis/: the ac1vity of making, buying, or selling
goods or providing services in exchange for money.
Businesses are predominantly owned and formed to
earn a profit that will increase the wealth of its owners
and grow the business itself.

Therefore, your purpose as a business owner

is to make money.

Nope.

Your purpose is to build a business that makes money.

Rich Dad, Poor Dad
Pay Yourself First.
Law of business: Your business

will earn exactly what you
demand it earns.
Lessons on Managing
Money
1. It s not what you make, it s what you keep- PAY
YOURSELF FIRST
2. Know the difference between good debt and bad

debt and it s OK to reinvest in your business
3. Understand the concept of the closed Loop and

having an abundance mentality
Where do
you start?
What to Include in a Business Plan
Overview of the project- Cost, Plans,

demographics of the area
Explanation of the Gym- atmosphere, clientele, services,

employees, culture, core values
Breakdown of estimated costs to Open

Proposed Financing- investors, bank loans, SBA
Monthly Budget
Who will own and operate the business
A summary
Start Up Costs
1. What do you currently have? Take inventory.
2. What do you NEED?
3. What do you want?

Billing
How would you feel if you knew
you had a GUARANTEED income of
$100,000.00
over the next 12 months?
• Without signing up another single client?
• Without even renewing any clients?
• Without selling another thing?
• No website sales or affiliate sales whatsoever?

• WOULD YOU SMILE MORE?

• WOULD YOU HAVE
MORE FUN?
• WOULD YOU JUST

BREATHE A LITTLE EASIER ?
• WOULD YOU SLEEP EASIER?

• WOULD YOU DELIVER AN EVEN
BETTER EXPERIENCE FOR YOUR
CLIENTS?

• WOULD YOU BE ABLE TO GROW YOUR

BUSINESS AND TAKE IT TO ANOTHER
LEVEL?

Let’s break it down..
•  $100,000 = 33 clients doing semi-private training once a
week ($250 per month) on an ANNUAL AGREEMENT
•  OR… 17 clients training twice a week ($500 approx) on

an ANNUAL AGREEMENT
•  $500,000 = 166 members, on an average of $250 per

month on ANNUAL AGREEMENTS
KEY INGREDIENT FOR THIS
RECIPE…..
• Transi1on to Annual or Short Term Agreements

• Introduce a reoccurring billing model

TransiUoning to a Receivable Base
• Without a receivables base,
you don’t have a business –
you have a job!
• Without a receivables base,

you have NO GUARANTEED income!
• Try going to the bank and telling them that

your clients have agreed to a “series” or
Joanne always pays on time… and try to
get a loan…
I’ve been there…
TransiUon to Contracts and reoccurring billing
•  STEP ONE: DECIDE

•  STEP TWO: FROM THIS POINT FORWARD….
• ASK
• ALL CLIENTS ON CONTRACTS
• ASK – CHANGE – HONOR
Remember the Ul1mate GOAL:
• To step away from your business.
Key Numbers
•  BOE - Base Operating Expense
•  Cash Flow
•  Receivables Base
•  The Daily Number
•  Profit Mode
•  20% Net Profit
•  40-60% for renewals, sign ups, and phone calls
•  Session # s / Client Visits
•  NET Members
•  Profit Centers - Net 20% profit - $5.00 a client visit

Base Operating Expense
Rent - $3000 (at $2.00 a sq ft 1500 sq ft)
Utilities- $300
Marketing- $300
Fixed Payroll(YOUR Pay Plus Office Manager/

Front Desk)- $5000
Insurance $200/month
Professional Development- $1000(SHOULD BE

>10% of Budget)
Total BOE = $9,800
Cash Flow
Total BOE = $9800
If you do not make more than $9800 per month

your Cash Flow is NEGATIVE = in the RED
If you make more than $9800 per month

your Cash Flow is in the POSITIVE = in the BLACK
Goal – 20% NET Profit

GOAL = $11760
Receivable Base
Having a receivable base knocks off some of

your Goal on Day One!
If you have 10 members on a $199 a month

membership, your receivable base is $1990.00
($199 x 10 members)
So, your goal of $11760 a month right away is down

to $9770 which takes your daily # from
$534 to $444 a day-
Almost $100 less a day!
Essentials Membership
$197 x 12 + $89 = $2,453
Costs of Goods Sold

- $39 Shirt, Bag, and Water Bottle
- $73.59 Merchant Fee of 3%
Total Profit per Essentials Member = $2,340.41

Customized Membership
$297 x 12 + $89 = $3,653
Costs of Goods Sold

- $39 Shirt, Bag, and Water Bottle
- $109.59 Merchant Fee of 3%
- $780 ($15 x 52) Trainer Payroll
- $93.60 (12% in CA)
Total Profit per Customized Member = $2,630.81

Base Operating Expense
Rent - $3,000 ($2/sq. ft./mo. x1,500 sq. ft.)

Utilities - $300
Marketing - $1000 (10%)
Insurance - $200
Professional Development - $1,000 (10%)
Fixed Payroll
YOUR Salary - $4,000/month
Admin - $2,000 (40 hours @ $12/hr.)
Group Classes - $2,600/ (20/week @ $30/class)
Total Monthly BOE = $14,100

Annual BOE = $169,200
Annual BOE = $169,200
•  Total Profit per Customized Member = $2,630.81
•  Total Profit per Essentials Member = $2,340.41
Need 72 Essentials Members

(If they all were Essentials)
60% Rule
•  >60% of the phone calls should show up
in your door
•  >60% who show up should sign up
•  >60% who sign up should renew

• Find your loca1on and find out how much rent will
be in your area.
• Contact the leasing company or landlord and start
nego1a1ons for your lease.
• Figure out your budget with es1mates of what a
month will cost to run your business.
• Write out everything you will need to purchase
before you open and how much it will cost. Start
simple.
• How will you finance your business? Do you need a
loan? Investors?
• To apply for a loan?
Business Owners Daily Agenda
•  Hit Your Daily #

(example - $444/day)
•  Hit your Phone Call Goal
(example - 1 call every day)
•  60% RULE with phone calls,
sign ups, and renewals
•  WORKOUT!
What our Coaching Members are Saying…
"We ve gone from 25 members to 225 members in two years,
and we absolutely would not have gotten to this point without
Rachel, Alwyn, the RFU team, and the other group members. If
we had known we would ve grown to this point, we would ve
paid five times the asking price! This is seriously a can t miss
investment and opportunity and we re so happy to be a part of
the Results University family!" – Jason Pak, Results Fitness
February 2015 Mastermind & 2014 RFU Biz Owner of the Year
Our Next Event
Results Fitness Launch Pad To Success
October 1 ,
st 2 ,
nd 3rd
www.resultsfitnesslaunchpad.com

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Making Money

Pay Yourself First.

Law of business: Your business

2. Know the difference between good debt and bad

3. Understand the concept of the closed Loop and

Overview of the project- Cost, Plans,

Explanation of the Gym- atmosphere, clientele, services,

Breakdown of estimated costs to Open

Who will own and operate the business

2. What do you NEED?

3. What do you want?

• WOULD YOU JUST

• WOULD YOU SLEEP EASIER?

• WOULD YOU BE ABLE TO GROW YOUR

• OR… 17 clients training twice a week ($500 approx) on

• $500,000 = 166 members, on an average of $250 per

• Transi1on to Annual or Short Term Agreements

• Without a receivables base,

• Try going to the bank and telling them that

• STEP ONE: DECIDE

• The Daily Number

• 20% Net Profit

• 40-60% for renewals, sign ups, and phone calls

• Session # s / Client Visits

• Profit Centers - Net 20% profit - $5.00 a client visit

Fixed Payroll(YOUR Pay Plus Office Manager/

Professional Development- $1000(SHOULD BE

Total BOE = $9800

If you do not make more than $9800 per month

If you make more than $9800 per month

Goal – 20% NET Profit

Having a receivable base knocks off some of

If you have 10 members on a $199 a month

So, your goal of $11760 a month right away is down

Costs of Goods Sold

Total Profit per Essentials Member = $2,340.41

Costs of Goods Sold

Total Profit per Customized Member = $2,630.81

Rent - $3,000 ($2/sq. ft./mo. x1,500 sq. ft.)

Total Monthly BOE = $14,100

• Total Profit per Customized Member = $2,630.81

• Total Profit per Essentials Member = $2,340.41

Need 72 Essentials Members

• >60% who show up should sign up

• >60% who sign up should renew

• Hit Your Daily #

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2. Know the difference between good debt and bad

3. Understand the concept of the closed Loop and

• WOULD YOU JUST

• WOULD YOU SLEEP EASIER?

• WOULD YOU BE ABLE TO GROW YOUR

•  OR… 17 clients training twice a week ($500 approx) on

•  $500,000 = 166 members, on an average of $250 per

• Transi1on to Annual or Short Term Agreements

• Without a receivables base,

• Try going to the bank and telling them that

•  STEP ONE: DECIDE

•  The Daily Number

•  20% Net Profit

•  40-60% for renewals, sign ups, and phone calls

•  Session # s / Client Visits

•  Profit Centers - Net 20% profit - $5.00 a client visit

•  Total Profit per Customized Member = $2,630.81

•  Total Profit per Essentials Member = $2,340.41

•  >60% who show up should sign up

•  >60% who sign up should renew

•  Hit Your Daily #