Your Gymnastics Club's Checklist for Financial Planning
[.pink__text]Why understanding your finances is important from a business perspective[.pink__text]
In the dynamic realm of kids' activity providers, where leaps, bounds, and somersaults are part of the daily routine, mastering the art of business finances is equally crucial to achieving a well-balanced and flourishing gymnastics club. Comprehending money matters and business intricacies empowers you to steer your club with precision, allowing you to strategically manage resources, optimise revenue streams, and plan for sustainable growth. By learning how to set financial goals and understanding how cash flow affects your gymnastics club, you will be able to confidently make informed decisions that propel your club to new heights.
Keep reading to learn how you can come to grips with your club’s finances using our super handy financial check template! And if you want to fill it out as you go, download the webinar "Financial Health Check with Geoff Rellis" to receive your template!
[.green__text]How to set financial goals[.green__text]
First, let’s have a look at where we wish to be and what we would like to achieve in the gymnastics club. This is done by setting some financial goals! What are some of the things you’d like to see happen in your club? Here are some examples of goals you might have:
- [.orange__text]Hiring a full time employee[.orange__text]
- [.orange__text]Opening a new venue[.orange__text]
- [.orange__text]Running a marketing campaign[.orange__text]
- [.orange__text]Buying new equipment[.orange__text]
- [.orange__text]Adopting a CRM software like ClassForKids[.orange__text]
Now that you understand what goals you have, it’s time to financially plan for how to reach them. Try to estimate how much each of the goals might cost for your club. Remember: Different goals will have different types of costs. For instance, some of your goals might incur a one-off cost whilst another goal has a monthly or yearly cost. For instance, hiring a new employee would come with a monthly cost as the employee would most likely want to be paid monthly, whereas buying new equipment would likely be a one-time purchase. Put a number (Either Total cost, Yearly cost, or Monthly cost) to each goal.
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[.pink__text]Your financial check template[.pink__text]
Imagine your cash flow as one of your performances. Every flip, every twist, and every graceful move needs to be accounted for - just like with the cash coming in or leaving the business. Download your very own financial template to fill out here!
Begin by listing all sources of [.green__text]income[.green__text] – class fees, merchandise sales, and any other revenue streams that contribute to your financial canvas. Remember, every little bit counts!
Next, cast the spotlight on your [.blue__text]costs[.blue__text] You will want to divide your costs into two distinct categories:
[.orange__text]A. Overheads[.orange__text]: These are the fixed, recurring expenses that remain consistent month after month, much like the routine training sessions that form the backbone of a gymnast's practice. Include expenses such as rent, utilities, insurance, software subscriptions, and administrative salaries.
[.pink__text]B. Direct Costs[.pink__text]: Just as a gymnast's training intensity may vary, certain costs in your club might change month to month. Part-time staff hours, equipment maintenance, and marketing expenses are examples of direct costs that can fluctuate. It's essential to track these variations for a clearer financial picture.
For the grand finale in understanding your finances, you will have to calculate your [.green__text]net profits[.green__text]. Take your total income and subtract both your overheads and direct costs. The result is your net profit – the applause-worthy performance that showcases the financial fitness of your gymnastics club. This figure offers insights into how efficiently your club is operating and whether adjustments are needed to enhance profitability.
[.blue__text]Income - (Overheads + Direct costs) = Net profit[.blue__text]
And there you have it! Armed with historical data and a deep understanding of your club's financial dynamics you’ll be empowered to plan, strategise, and optimise for success. As you project into the future, you gain the ability to align your financial goals with achievable milestones.
[.orange__text]Want to take control of your finances? Check out our webinar with Geoff Rellis from Good Life Gymnastics to understand how YOU can master your club’s finances![.orange__text]
Felicia Bugge
Felicia is our resident Content Specialist. She is the mastermind behind most of our blogs, emails and Tiktoks! When she isn’t planning the next big email campaign or chasing participants for Tiktoks, she can be found travelling to new exotic places, reading the latest booktok book, or converting friends to using iPads for notes and calendars!
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