The Four Reasons Why Most Businesses (across industry) Fail:
1.) Owners don’t understand business. Finance, loans, payroll, expenses, depreciation, taxes, compliance, liability…that’s just a start. Understanding that side of things is a big piece for small and large business owners. Why bother going into business to earn less than you could if you’re working for someone else?
2.) They don’t prioritize time on the most important parts (about 5% of what you’re probably doing right now).
3.) The business model they have won’t work. You’re doomed from the start if you price so low you never have a profit margin. If you always have to be there and can never be away? You will get sick, want vacation, have something suddenly come up. If you’re one-to-one primarily instead of one-to-many or always contact hours and have no passive revenue you have a problem. If you allow trainers to train for high commission rates with low responsibility you have all the overhead dropping to your bottom line.
4.) They quit too soon before there is any momentum. It takes between 18 and 24 months to begin picking up leverage from marketing, advertising, content marketing, strategically placed media appearances – and that’s if each of those parts is done well. If you don’t have enough money to sustain yourself over that period of time and will find you aren’t able to advertise when things are worst (the exact opposite of what you need to do!) you’re looking at early retirement or job search.
Tom Durkin guested recently on a webinar where we peeked in to 10 Reasons Why Fitness Businesses Fail. He would know. He’s usually called in to buy the equipment if not the business from the sinking ship. What costs someone a dream ends up saving someone thousands on equipment. Don’t be that business.
Last chance to register with your application today. Closed to all others as we launch our private Mastermind as of Monday May 4.
~Debra
P.S. Will you be in the same place or somewhere better next year if you make a change now?
P.P.S. Last chance for this summer...and for a long time to come.