How Much Will I Earn As A Personal Trainer?
FINANCIAL PLANNING NEEDS ANALYSIS
Analyse the financial requirements of the business
Step 1: Calculate your set up costs
Set up costs will include accounting fees, registrations and licences, equipment and fit out, plus your initial working capital. By comparing this amount to your start-up equity investment, you can work out how much money you need to borrow (if any) to kick-start your business.
Step 2: Profit and loss forecast
A forecast of sales and expenses, usually for the next 12 months of operations. By comparing your potential sales revenue to your cost of goods sold and your fixed costs of doing business, you can calculate your likely margins and put your pricing model to the test.
Step 3: Cash flow forecast
A cash flow forecast is crucial. New businesses can be hungry for cash to build the capacity they need to service their customers — and those same customers may be slow to pay. That can open up a cash flow gap “that could leave you vulnerable if you are not prepared”.
Step 4: Balance sheet forecast
This is a snapshot of the business in 12 months time. Your forecast of the business’ assets and liabilities after 12 months of operations will be based on the purchases you anticipated in your set-up costs, together with the results of your profit and loss forecast.
Step 5: Break-even analysis
Once you have forecast your fixed costs, you can calculate how much revenue you need to break even and how many units you need to sell. For a Personal Trainer, there are minimal set up cost. You will need to research and decide whether you want to set up a studio, sub-contract or franchise. Once this is clear, a costing strategy should be developed to plan expenses.
Step 1: Calculate your set up costs
Set up costs will include accounting fees, registrations and licences, equipment and fit out, plus your initial working capital. By comparing this amount to your start-up equity investment, you can work out how much money you need to borrow (if any) to kick-start your business.
Step 2: Profit and loss forecast
A forecast of sales and expenses, usually for the next 12 months of operations. By comparing your potential sales revenue to your cost of goods sold and your fixed costs of doing business, you can calculate your likely margins and put your pricing model to the test.
Step 3: Cash flow forecast
A cash flow forecast is crucial. New businesses can be hungry for cash to build the capacity they need to service their customers — and those same customers may be slow to pay. That can open up a cash flow gap “that could leave you vulnerable if you are not prepared”.
Step 4: Balance sheet forecast
This is a snapshot of the business in 12 months time. Your forecast of the business’ assets and liabilities after 12 months of operations will be based on the purchases you anticipated in your set-up costs, together with the results of your profit and loss forecast.
Step 5: Break-even analysis
Once you have forecast your fixed costs, you can calculate how much revenue you need to break even and how many units you need to sell. For a Personal Trainer, there are minimal set up cost. You will need to research and decide whether you want to set up a studio, sub-contract or franchise. Once this is clear, a costing strategy should be developed to plan expenses.
DEVELOP A FINANCIAL PLAN
One of the most important tasks in establishing and operating a successful business is planning. A successful business is one with a clear strategy.
A well thought out business plan will help you to:
* Assess whether or not your venture is practical and achievable and then market your idea to financial backers or investors.
* Define clear aims and objectives, and continuously monitor their progress, making adjustments where necessary
Some of the issues “that need to be considered in planning a business venture”:
* Establishment costs
* Settle on the required equipment and staffing needs
* Assess Market size & characteristics
* Determine location and extent of competition
* Be more aware of environmental factors (legal, technology etc)
The important part of business planning is preparing a detailed cash flow and budget. This will assist you to predict sales, revenue, expenses and profitability for your selected business.
The right price
How do you price yourself without losing sleep or customers? What is it about deciding what to charge that makes people hate it so much? Pricing does not have to be a stressful process – remember that you are in business to make a profit. The going rate – a good place to start is to find out what your competitors are charging. Costs you can not see – there's a multitude of hidden costs “that you have to take into account when setting your price structure”. Electricity, phone, mail, insurance, bookkeeping/accounting, licensing, training and professional developments are just a few of the hidden costs “that must be identified”.
E.g. ONLY Personal Trainer Sessions Costs
One on one 30 min =$30 to $45, 60 min = $50 to $65 (what are you worth) per session
Average rule of thumb is to offer 15% discount every extra person “that joins a group”.
* Two on one 30 min = ? 60 min = ?
* Three on one 30 min = ? 60 min = ?
* Four on one 30 min = ? 60 min = ?
Average 30 min = $45 Average 1 hour = $65 (priced on Australia market 2000 to 2010)
A well thought out business plan will help you to:
* Assess whether or not your venture is practical and achievable and then market your idea to financial backers or investors.
* Define clear aims and objectives, and continuously monitor their progress, making adjustments where necessary
Some of the issues “that need to be considered in planning a business venture”:
* Establishment costs
* Settle on the required equipment and staffing needs
* Assess Market size & characteristics
* Determine location and extent of competition
* Be more aware of environmental factors (legal, technology etc)
The important part of business planning is preparing a detailed cash flow and budget. This will assist you to predict sales, revenue, expenses and profitability for your selected business.
The right price
How do you price yourself without losing sleep or customers? What is it about deciding what to charge that makes people hate it so much? Pricing does not have to be a stressful process – remember that you are in business to make a profit. The going rate – a good place to start is to find out what your competitors are charging. Costs you can not see – there's a multitude of hidden costs “that you have to take into account when setting your price structure”. Electricity, phone, mail, insurance, bookkeeping/accounting, licensing, training and professional developments are just a few of the hidden costs “that must be identified”.
E.g. ONLY Personal Trainer Sessions Costs
One on one 30 min =$30 to $45, 60 min = $50 to $65 (what are you worth) per session
Average rule of thumb is to offer 15% discount every extra person “that joins a group”.
* Two on one 30 min = ? 60 min = ?
* Three on one 30 min = ? 60 min = ?
* Four on one 30 min = ? 60 min = ?
Average 30 min = $45 Average 1 hour = $65 (priced on Australia market 2000 to 2010)
PAYMENT PLAN
Payment plans must be followed by the client and the trainer. Have expectations abundantly clear from the start and present with confidence. Avoid taking payments and handling money on the gym floor, as this does not look professional. The most efficient payment method is Direct Debit or Internet Bank Transfers.
Up front instalment payments, Lump Sum payments or deposits should be made via Internet banking and recorded using an appropriate tracking system therefore, keeping money out of the club. This also means that payments are made directly to your business account, and can be easily tracked to ensure sessions are up to date.
Direct Debit (DD) and Internet Bank Transfers can be easily set up, removing the hassle of remembering to bring payments; it will also prevent you from having to chase payments, and reselling packages.
It is recommended that you utilise the services of a professional Tax Accountant. Creating your business plan:
* 1. Firstly you need to determine how much gross (before tax) annual income you would like to earn. Determine what rate per session you are going to charge – make sure this is a figure that you are comfortable in charging.
* 2. Secondly, you will need to divide your Annual Income figure by your Session Rate to determine how many sessions you need to charge during the course of the year.
Annual Income = Min, Sessions Required per Annum
Session Rate = ½ hour or 1 hour sessions
* 3. Now by dividing the Sessions per Annum by the number of working weeks in the year, you will determine the number of sessions you need to achieve on a weekly basis in order to achieve your projected annual income. Remember, you are entitled to two rent-free weeks per annum for holidays, (“however”) it is realistic to allow additional time for sick leave etc, so the number of working weeks per annum will be 48.
48 = Minimum Sessions per Week
Sessions per Annum (Goal Sessions)
Check out our income calculator here and use it to run these figures for you.
The above sheet can be used for all delivery times (sessions) just repeat the process with the different figures.
Good Luck
Up front instalment payments, Lump Sum payments or deposits should be made via Internet banking and recorded using an appropriate tracking system therefore, keeping money out of the club. This also means that payments are made directly to your business account, and can be easily tracked to ensure sessions are up to date.
Direct Debit (DD) and Internet Bank Transfers can be easily set up, removing the hassle of remembering to bring payments; it will also prevent you from having to chase payments, and reselling packages.
It is recommended that you utilise the services of a professional Tax Accountant. Creating your business plan:
* 1. Firstly you need to determine how much gross (before tax) annual income you would like to earn. Determine what rate per session you are going to charge – make sure this is a figure that you are comfortable in charging.
* 2. Secondly, you will need to divide your Annual Income figure by your Session Rate to determine how many sessions you need to charge during the course of the year.
Annual Income = Min, Sessions Required per Annum
Session Rate = ½ hour or 1 hour sessions
* 3. Now by dividing the Sessions per Annum by the number of working weeks in the year, you will determine the number of sessions you need to achieve on a weekly basis in order to achieve your projected annual income. Remember, you are entitled to two rent-free weeks per annum for holidays, (“however”) it is realistic to allow additional time for sick leave etc, so the number of working weeks per annum will be 48.
48 = Minimum Sessions per Week
Sessions per Annum (Goal Sessions)
Check out our income calculator here and use it to run these figures for you.
The above sheet can be used for all delivery times (sessions) just repeat the process with the different figures.
Good Luck
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