Most coaches and gym owners never start their business because they thought they would be rich. It is usually the passion to help people that motivates and who has not heard “I love this so much I would do it for free”.
So, what many gym owners and coaches do is they actually work for free or almost free. If you look at the average gym owner and calculate their EHR we notice they actually earn less than the minimum wage (in Germany it is not allowed to pay less than 12,40€/h). You can calculate your EHR by taking your wage and divide that by the hours you work.
Wage 2000€ / 200 hours = EHR 10€
Most owners are very resilient and keep on doing this for a decade. They take on side projects to boost their economy in the gym but also privately. Suddenly the gym owners runs two businesses and not one of them is really a profitable business (aka their EHR is at the bottom).
I am all for helping the community and getting as much people as possibly fit. I want to spread the message. I want to “infect” more people with fitness.
But I will do that when I hit an Owner Benefit of 100,000€, because when I have that money I have the freedom to choose to help others.
I can even pay for memberships for people that are in need. At Two-Brain they call this “functional retirement”.
Greg Glassman had several projects back in the day. He built schools in Africa, he helped disabled with sponsorships for better gear etc. But he did that when CrossFit was making millions already and not before.
One of my friends who runs a successful agency said a good thing. “If the CEO is spending his time doing 10€ decisions the business will stay a 10€ business”.
If we want to get to a million euro business we need to start to make million euro decisions as CEOs. This means that if we spend time worrying about the toilet paper, cleaning or replying emails about a 4€ discount it is stopping us from making higher level decisions.
Here is a simple exercise for you to do to see how you are spending your time.
Audit your time over a couple of days and write down what you did and how much time it took.
How many of those tasks were bringing you forward growing your business and how many of the tasks were just about “maintaining”.
I understand it might be hard to know what decisions that will make you a 500.000€ or 1 million euro business and this is one of the reasons why coming to Coaches Congress will help. You will get the input of the right type of ideas from the people who have done the right decisions. Working with a mentor is then the quickest way to move forward. Feel free to reach out to me here if you want help with input.