How To Ensure Your Personal Training Business Is Financially Successful
Running a Personal Training business is a lot like improving your own fitness. It’s all about making sure you have enough fuel in the tank to match the effort you are making. There needs to be a balance between input and output.
Most small businesses are fated to fold in their first five years. While Personal Training is your passion, you need to protect yourself on the business side as well. A lot of incredibly talented Personal Trainers can burn themselves out in this field. It’s not about their worth as trainers or any lack of passion for their work, but bad business practice leads to not enough income, overworking, and stress. These factors aren’t conducive to a healthy, happy Personal Trainer who has the time to focus on their individual clients.
Don’t become one of these statistics. Read on to find out how to protect your Personal Training career and make sure your clients pay up on time.
First, Figure Out How Much To Charge For Your Personal Training Services
In order to figure out how much to charge, and how much you need/want to work, you need to do some simple calculations. Decide how much you want to earn per year, and whether you want to work full-time, part-time or on the weekends. You should also decide how many hours you want to work per week.
Once you have this figure you should decide how much time off and holidays you want. Don’t forget to take these - just like with training, you know that rest and recovery time will let you perform at your peak.
For example, let’s say you want to work full-time and make around $70,000 per year, around 30 hours per week, and have at least 5 weeks of holidays.
Here’s the formula that helps you decide the hourly rate you should charge for your personal training services.
$70,000/47 weeks per year = $1489 / 30 = $49.64.
That means you should charge around $49 or $50 per hour of your services (rounded for simplicity’s sake) to have your ideal income. You also need to take your tax payments into consideration when deciding how much you’re going to charge for your PT services. When running your own business, it’s important to put money aside for tax, and connecting with an accountant to discuss your obligations. T his could be beneficial, as it will simplify the process and they’ll be able to answer any questions you might have. You could even offer the accountant free PT sessions in exchange for their services! Another thing to consider is putting money into a superannuation account to support yourself during retirement. Lots of PT’s don’t do this, as retirement can seem very far away, but you’ll thank yourself in the long run!
Second, Have Set Payment Terms For Your Services
Payment terms are usually a standard PDF document that outlines how your customers can pay for your goods, and when you expect to get paid. They are part of a sales contract and operate under contract law in Australia. Your payment terms protect you, and ensures your clients are legally obliged to pay you. As well as the payment methods you accept and your credit information, there should also be an outline of your debt collection policies.
Be Careful Of Credit Terms
To offer credit means that you give away your services without a payment upfront. If you’re thinking about offering credit for your Personal Training business, you should definitely proceed with caution.
Running a successful business is all about being able to stay on top of bills, and investing your income into improving the business. For these reasons it’s good to have a predictable source of income. Offering credit may make you appealing to some customers, but it also makes your cash flow less predictable. You need to make sure you have adequate cash flow to stay on top of bills and to pay for your living expenses. There is also no guarantee that your clients will pay you back.
Standard terms of credit in your payment terms are usually as follows:
- No Credit
- Seven Days to Pay
- 21 Days to Pay
- 28 Days to Pay
Other Ways To Ensure Your Personal Training Business Is A Financial Success
Have A Cancellation Policy
Personal Training sessions can easily be cancelled last minute, and this can be a real financial blow, especially when you weren’t given enough notice to find another client. Protect yourself from losing out by having a cancellation policy that your client agrees to and signs. This should state that you will still be paid within a reasonable timeframe if your client decides not to show up.
Offer A Course Or Program And Get The Payment Upfront
Some PTs offer a discount if clients pay in bulk for their sessions, and others simply make sure that their clients all pay for a minimum amount of sessions upfront. Not only does this strategy ensure that your cashflow is predictable, but it motivates your clients to never miss a session. After all, they’ve already paid for it!
Do Your Research
Make sure your price point is appropriate for your area. Adjusting your rate might be necessary in order to compete with the training businesses in your area, whether it’s lowering to be competitive or increasing to improve the image of your services.
Make sure you get the word out about what you offer. Find out the type of people in your area that user Personal Training services, and tailor your approach to appeal to them.
Taking Steps To Have A Successful PT Business
We hope you take our advice into consideration, and protect the financial interests of your personal training business. All the best out there!