Small Business Advice

[AshleyS]

I have a girlfriend of mine who has a small business in the personal training industry. She does well from it. Her turn over this year will be in excess of $120K.

The problem is - there is only one of her and she is working up to 16-17 hours a day a few days a week and easily 13 hours a day on the other days. She generally only works 5 days, with the odd 6th day thrown in there.

She is exhausted, constantly, no time for herself, no time to grow the business, she is run down and can't think straight alot of the time.

I would like to see her start to employ others so she can take a physical load off of herself and start to look at growing her business by working smarter, not harder. Yes, she will have to take a cut in income, as she will be apying others but the trade off will be the extra time and health benefits.

Has anyone else been through anything similar? Can anyone recommend a company that specialises in helping small businesses grow, take on employees etc?

It is really worrying me and I would like to help her take the next step.

Thanks
Ash

 

[Pushka]

Is she open to contractors? What type of 'personal training industry' is it? Physical training or things like Business Coaching. Either way, I might know of a couple of people who might be interested as contractors, in Adelaide!

 

[csc]

turnover dollars in a business means absolutely nothing...its the net worth after expenses and tax that counts...if shes flogging herself to death for $50k a year id say she should either exit or look at working on a new business plan for a start..

really no idea on how to offer proper advice as i know zero about this type of business but she should go and seek some proper advice on how to minimize tax, look at investments that may help etc.............i guess her biggest overheads will be travel costs?? running blind here...........

 

[evand]

Usually people in business know other people in the same industry. She should ask some other trainers that need a bit of extra work to do some sub contract work for her.

Just like a plumber with too much on will get his mate to do a couple of jobs for him at an agreed rate. Ongoing or one off.

She might need to get a signed agreement to stop them pinching her customers, payment structure, invoicing etc or just keep it verbal. Up to her.

Its really very simple.

Re growing her business and /or employing staff, that's a whole different story and she'll need more advice than can be given on here.

 

[Mooze]

Sub contractors are the way to go. Make sure they're registered with Fitness Australia (or relevant authority), and have their own PL and PI insurances.
Make sure first thing she does is get them to sign a contract enforcing that they don't pinch her clients.

 

[BayView]

I have a girlfriend of mine who has a small business in the personal training industry. She does well from it. Her turn over this year will be in excess of $120K.

The problem is - there is only one of her and she is working up to 16-17 hours a day a few days a week and easily 13 hours a day on the other days. She generally only works 5 days, with the odd 6th day thrown in there.

She is exhausted, constantly, no time for herself, no time to grow the business, she is run down and can't think straight alot of the time.

I would like to see her start to employ others so she can take a physical load off of herself and start to look at growing her business by working smarter, not harder. Yes, she will have to take a cut in income, as she will be apying others but the trade off will be the extra time and health benefits.

Has anyone else been through anything similar? Can anyone recommend a company that specialises in helping small businesses grow, take on employees etc?

It is really worrying me and I would like to help her take the next step.

Thanks
Ash

Welcome to my brother's world.

He and his wife ran a personal training studio in Malvern for 10 years. Did well, but the hours killed them and they burnt out. Sold it and got out of the industry for 5 years.

They started a new studio in Ashwood about 18 months ago, same scene - different location. Too many hours etc. But a bit older and wiser.

Him and I have had discussions about this, and I have been trying to convince him that he is not the business and that he needs to think about setting up the business so that employees can come in and lighten the load.

Basically, I suggested that any new client doesn't need to see him, they need to see a trainer that trains using his system that works well. Unless they specifically ask for HIM, the new client only needs to see "the trainer" who follows the system and does the job well.

It's like going to "Curves" or one of those franchise personal training studios - you don't necessarily know anyone's name there unless you get a direct referral from a friend who might say "go and see so-and-so at Curves; she's great" etc.

The hard thing for him and wife is to let go and delegate some responsibility to others, and trust them to do their job. They both struggle in this area - control freaks. He's an Aquarian (like me) and she's an Aries. Need I say more?

So, finally they have realised this mental shift needed to happen, and it has. They now have one employed trainer doing 15-20 hours per week, and he gets most of the new clients. They are starting to enjoy some shorter days now and again. Burn-out is far less likely.

This is one of the critical differences between running your own business, and owning your own business.

Most people think that they need to do it all, but if you set up a good business system, and employ good staff and train them to use the system, then the business can function successfully without the owner needing to be there so much.

The question is; is your girlfriend ready to make this all-important shift in her thinking and work on the business instead of working in it, and employ others to work that business?

If she isn't, the end is not far away I'm afraid.

I think everyone starts off their business life in this manner, and some people can't make the shift. I was definitely one of those people, but no longer. I am now very comfortable with owning a business, and working on the business model and systems so than anyone can run them, without doing the zillion hours that small-business owners seem to always do.

Not saying she shouldn't work hard still; but after the business is established, growing and profitable, then it is time to make the shift.

An excellent book on small-business mindset is "The E-Myth Revisited" by Michael E. Gerber.

 

[AshleyS]

Thanks you all for your replies. You have all said exactly what I have been saying to her.

csc - I didn't think of it like that not being business minded myself but when you think about it, how absolutely correct you are.

Marc - thanks for your advice too. She does think that her clients only want to see her, and i'm sure they do as she does a great job. I said contractors are the way to go as you have all pointed out. She is a control freak and needs to have a change of mental plan.

I will go and buy her that book for starters today!!

Thanks again

Pushka - Will PM you..

 

[Mooze]

Her other option is simply keep the customers she's getting the best return off of. So rather than have 50 clients with a 30% profit margin, keep the top 20 and maintain a 55% profit margin.

It comes down to what her goals for the business are as well as for her personally.

 

[AshleyS]

Yeah agree. She needs to complete a new business plan and be prepared to lose clients initially as she moves from training them herself to using others to work for her.

She is SA personal trainer of the year - soon to be SA burnt out trainer if she doesn't look at how she is doing business.

 

[Aaron Sice]

I have a girlfriend of mine who has a small business in the personal training industry. She does well from it. Her turn over this year will be in excess of $120K.

The problem is - there is only one of her and she is working up to 16-17 hours a day a few days a week and easily 13 hours a day on the other days. She generally only works 5 days, with the odd 6th day thrown in there.

She is exhausted, constantly, no time for herself, no time to grow the business, she is run down and can't think straight alot of the time.

I would like to see her start to employ others so she can take a physical load off of herself and start to look at growing her business by working smarter, not harder. Yes, she will have to take a cut in income, as she will be apying others but the trade off will be the extra time and health benefits.

Has anyone else been through anything similar? Can anyone recommend a company that specialises in helping small businesses grow, take on employees etc?

It is really worrying me and I would like to help her take the next step.

Thanks
Ash

this sounds like me.

i don't want to relinquish control to someone else for simliar money and 60% of the service and have the business name suffer.

and mooze, the 50 clients with a 30% profit margin are the regulars - why fight for newbies all the time? you get more money, but more work to secure them....

 

[silversands]

I had similar thoughts to Mooze,

Also, if she is in demand so much as to need to work so many long hours, and is not yet ready for the whole "work on your business, not in it phase", then as a start to lessen the work load, I would consider raising my prices 15% or so. Bound to lose her a few clients, and trim some of her work load but $$ in shouldn't change too much.

Is this to simple to work?

 

[Aaron Sice]

or raise 5% per month for 3 months.

 

[AshleyS]

Silversands - she did that. Increased her prices. No clients stopped training, instead - couples trained together to save the cash. As this happened, more clients come along.

Bottom line is she needs to outsource the work based on her training program and ethics. A mind shift is needed.

I just did the hourly rate with her net income based on 60 and 70 hours per week - not good, came out around $18 - $20 an hour BUT.... her deductions do include car lease, part mortgage, elect etc so it would be slightly higer I guess? Not too sure how it works. I have just emailed her this and she is a little taken by surprise. Raw figures work!! Makes you think doesn't it?

 

[The Y-man]

She is exhausted, constantly, no time for herself, no time to grow the business, she is run down and can't think straight alot of the time.

You would think it wasn't a good look to the customers to see that the personal trainer was looking totally stuffed.....

Cheers,

The Y-man

 

[silversands]

You are right of course, my suggestion is not a composite solution, but it sounds to me as though she hasn't raised the prices anywhere near high enough. A local personal trainer I know of without any awards for fab skills is netting $35per hour and works 30- 35 hours a week.

Did she give the couples the same rate as she would for a single person training in that time slot?

A dance studio I am aware of, charges $18 for 20 mins personal dance tuition but for the same session, if two participate it costs $22. I'm not getting how she could not see an increase in revenue and a decrease in time spent in this type of scenario. If she increased prices but still saw an increase in customers then she is still not charging enough for her "in demand" services. She is after all providing a service. I personally will pay as much as I have to for a service I want, until it becomes too expensive for me.

If she wishes to personally oversee each client, could she not consider hiring a multi tasker to handle the warm ups /cool downs, take calls, book appointments etc? She could maybe have two clients overlapping at most times in this way, that still get her personal attention, saving time and increasing the bottom line. ( of course I don't know if she is mobile or clients come to her. If mobile this can't work )

Everyone needs a concerned and helpful friend. I'm sure she is grateful to you!

 

[Gordon Gekko]

Hi Silverland,

Buy her a copy of "E-Myth Revisited by Michael Gerber"

I higly recommend the first half, haven't finished it yet

GG

 

[csc]

heres what i would consider keeping in mind i know nothing about this business as im geared for a manufacturing mentality.

Try this senario, it has worked for every business i have owned.

80% of your income returns only 20% of your sales income.

20% of your business returns 80% of you sales income.

This senario may not play out with your lady's business or many others but its worth considering the senario to reduce her workload and look at this senario to move forward with either onselling some of the clients to another trainer who may appreciate the extra business especially if they have started recently or just flick the clients who are offering only very minimal return for her effort.

ie: concentrate on her core business, the clients who generate her the majority of income............it could well free up her time a little without reducing a substancial part of her income (i really dont know) and perhaps when she is refreshed she maybe able to concentrate on building her client base further with value added clients who have a bottomless pocket which im sure quite a few have............

Or as a sideline: Offer a once a month get together for say 10 of her main clients, do the session at a different persons house once a month..........but 10 people are there...sort of not so personal but interaction between clients is always good for business and moral!

She must definitely take time away to enjoy herself every week (turn the ph off, go enjoy yourself even if its just going for a weekend drive) do things together as a unit or she will suffer burnout sooner or later no matter how much potential she has to earn good money and thinks she can keep going............it really isnt worth it if she breaks down and loses the lot!

way easier to keep clients happy than to lose them and try and get them back, especially the good paying ones....

Food for thought, good luck...........

 

[Bon]

I have a girlfriend of mine who has a small business in the personal training industry. She does well from it. Her turn over this year will be in excess of $120K.

The problem is - there is only one of her and she is working up to 16-17 hours a day a few days a week and easily 13 hours a day on the other days. She generally only works 5 days, with the odd 6th day thrown in there.

She's working 70+ hours a week for $120k revenue? Only works out to be $30/hr assuming the profit margins are really high...

You could do it for a couple of years, but you would really want to be ploughing all that money away into some solid investments/assets!

 

[steveadl]

Ash, if her hourly rate is around say $35 which by figures above it looks to be (could differ due to holidays she takes etc) - then she's still under charging.

If she's that good - then her hourly rate should be more. Even the numpty's I see every morning at Fitness First straight out of there TAFE/AIF course charge $35, the advanced trainers charge $45.

Your friend however is sadly not alone. My fiancee's BF's husband is a personal trainer and I know he still struggles to turn a decent quid despite the fact he's very good, in high demand and experienced in a fair few different fields of physical endeavour. Haven't probed him as to why etc as it's not my place.

 

[Philip Thomas]

University on Wheels

Buy her a copy of "E-Myth Revisited by Michael Gerber"

This is good advice, as its classic Michael Gerber “working in the business & not working on the business”.

If your friend prefers the CD version of Gerber’s book is also very good, if you spent time driving to & from work or drive a lot during the day.

Brian Tracy calls playing this sort of CD in your car a “university on wheels”. The alternative according to Tracey is "chewing gum for the ears".

While I don’t mind a bit of chewing gum, I’ve done heaps of books in the car over the years.

Philip