Taking control of your pilates studio finances is critical to good administration. By tracking the inflow and outflow of money, you can identify where your money is going, avoid waste and even make money at the end of the month.
Unfortunately Brazil is still a country where financial education is not widespread among the population and many people will only really feel it when it comes to entrepreneurship. After all, there is a big difference between taking care of personal finances and running a business.
So here are some important tips for giving you greater financial control and worrying more about your students than your studio finances!
The importance of financial control for your business
According to data from Sebrae, one in 4 new companies close before completing two years of operation. Times of crisis and bureaucracy to undertake are some of the factors, but lack of management experience also plays a key role in this sad statistic. That is why it is always important to adopt good financial practices so that your pilates studio can thrive.
The profitability of a pilates studio varies between 30% and 60% of monthly revenue and usually the return on investment comes within a year, but many factors can influence this estimate, the main one being the occupancy rate of the studio. In other words, it is a profitable business, but one that requires a manager always alert to anticipate possible financial problems.
How to control finances
Write down everything!
To have complete control of your pilates studio’s finances, you need to write down all incoming and outgoing money. This control can be done in a notebook, spreadsheet, mobile app or specific software.
In addition to values, it is important to categorize the money flow. This way you can identify where the money is going, cut unnecessary spending or look for new sources of income, for example.
Do not mix personal finances
Always keep in mind a clear separation between personal finance and your pilates studio. You may think that taking $ 10 from the studio cashier to buy a snack won’t impact your business, but this is a bad habit that in the long run can compromise your business finances.
We are not always satisfied with our pilates studio. Sometimes we need to buy new equipment or accessories, have a makeover or even an emergency repair, but there is not always money left over for everything.
Therefore, it is important to set priorities so that you can plan and not spend more than you can. Set goals that can help you save some money monthly and always consider whether the expense you’re about to make is really the most important at that time.
Predict what will come in and what will come out
It is very important to have a recurring expense control to predict your monthly expenses. Accounts such as water, electricity, internet and rent are very important and should be in your monthly planning to be paid on time and avoid additional costs with fines and interest.
Likewise, it is always important to keep track of your students’ tuition and plans in order to avoid default and various financial problems due to lack of payments.
Working capital and emergency reserve
When opening your pilates studio, always consider, in addition to the initial investment for space setup, a working capital value that can help maintain the studio until profit comes. Ideally, you should have the amount you need to keep the studio for at least three months, but this reserve can be worth a year of non-profit operation.
Similarly, always try to keep an emergency reserve to avoid unforeseen expenses. After all, you never know when a pipe might burst, a computer burn out, or any other unforeseen expense knocking on the studio’s door.
Use a complete management system
Many people lack the discipline to perform financial control manually and end up leaving the process along the way. This is why it is more advantageous to opt for a specific pilates studio management system, such as Simpple. In addition to financial control, you can manage all aspects of the business, such as class schedules, student information, and so on.
At the beginning of the business, many people think that paying for a management software license can be an unnecessary expense, but it is important to maintain financial control from day one of your studio operations, and in the end, the amount invested returns to you. more free time and less headache due to finances.
Let’s not say that there are no pilates studios that have thrived without optimal financial control, but you don’t want to take risks in your business, do you? So, know that it’s never too late to adopt good financial habits both personally and especially in your studio. Seek more information (or help if needed), write it all down and see your profit increase!
Did you already pay particular attention to the financial control of your pilates studio? Tell us in the comments about your experience!