Top Fiscal Best Practices Every Personal Trainer Should Follow
As a personal trainer, you’re not only focused on transforming lives—you’re also juggling the challenge of keeping your business financially afloat. I know it’s tough to manage your finances while trying to grow your client base and maintain the quality of your services. But just like in fitness, where consistent effort brings lasting results, establishing solid financial practices upfront is crucial to your business’s survival and success.
Over the years of managing my own personal training business, I’ve discovered several fiscal best practices that have been instrumental in creating a solid financial foundation. These didn’t just help me stay afloat; they allowed me to thrive and focus on growing my business sustainably. By sharing these insights, I hope to guide you on the path to establishing the right practices towards financial stability and success in your own venture.
Whether you’re just launching your independent career or already own your own training business seeking to strengthen your financial footing, these best practices will help you build a sustainable and profitable foundation. Let’s explore these essentials together.
1. Make Your Business a Business
Do: Establish a proper business structure, such as an LLC, and maintain separate accounts for personal and business finances. This distinction isn’t just a good habit—it’s essential for protecting your personal assets, simplifying tax preparation, and giving you a clear view of your business’s financial health.
Don’t: Mix personal and business finances. While it might seem convenient to use a single account for everything, this can lead to confusion and complications, especially at tax time. Keep your finances clean and separate to avoid unnecessary headaches.
2. Be Firm on Pricing
Do: Set pricing that accurately reflects your value and stick to it. Remember, you’re not just selling time—you’re offering expertise that can profoundly impact your clients’ lives. Pricing your services appropriately underscores the quality and effectiveness of your training.
Don’t: Undervalue yourself or give in to pressure for discounts. It’s easy to feel compelled to lower your rates, but doing so can diminish your business’s profitability and sustainability. Trust in the value you provide, and your clients will too.
3. Regularly Adjust Your Rates
Do: Periodically review and increase your rates to reflect your growing experience and to keep pace with inflation. As you become more skilled and seasoned, your rates should evolve to match your expertise. This practice not only sustains profitability but also reinforces your value to clients.
Don’t: Keep long-term clients on outdated rates indefinitely. While loyalty is important, charging outdated rates isn’t sustainable for your business growth. Develop a plan to gradually raise rates, ensuring fairness while supporting your financial goals.
4. Practice Delayed Self-Pay
Do: Pay yourself in increments as you deliver services, especially for clients who purchase packages. This approach ensures a steady cash flow, aligning your income with the work you’ve completed. It’s a simple yet effective strategy for maintaining financial stability.
Don’t: Pay yourself the full amount upfront when a client buys a package. While receiving a lump sum immediately might be tempting, it can lead to cash flow issues later if services are still pending. Spreading out payments helps you manage your finances more effectively.
5. Collaborate with a Small Business Accountant
Do: Engage a small business accountant to assist with financial management. Their expertise can save you money, optimize your tax strategy, and help you navigate the complexities of business finances, allowing you to focus on what you do best—training clients and growing your business.
Don’t: Try to manage all financial aspects yourself. While it might seem more cost-effective, your time and energy are better invested in your clients and business growth. Investing in professional financial help is a wise decision that can lead to significant long-term benefits.
Final Thoughts: Building a Financially Strong Training Business
Implementing these fiscal best practices is vital for building a thriving and sustainable personal training business. Start with one or two strategies that resonate with you, and gradually incorporate the others into your routine. It’ll take time but it is well worth the process to avoid obstacles in the future.
Remember, your financial health is just as crucial as your clients’ physical health. By focusing on sound fiscal practices, you’re not only safeguarding your future but also laying the foundation for ongoing growth and success in your personal training career.
For more information on how to turn your passion into profit, watch the DCAC Webinar video titled "Passion to Profit: 5 Keys To Build Your Solo Personal Trainer Biz"
Watch Video Here -> Passion to Profit Video