Most studio owners are great at fitness and learning on the job with finance. Here are the fundamentals.
Know your numbers monthly
- Revenue: total income from memberships, packs, retail, events
- COGS: instructor pay, consumables, payment processing fees
- Overhead: rent, utilities, insurance, software, marketing
- Net profit: revenue minus everything above. Target 15–25%.
Cash flow is king
Revenue is not cash. If you sell annual memberships, the revenue is recognised over 12 months but the cash arrives upfront. Understand the difference.
The monthly review
15 minutes on the first of every month: check last month's revenue, expenses, and net profit. Compare to the previous month and the same month last year. Spot trends before they become problems.
When to hire an accountant
At $10k+/month revenue. Before that, use Xero or QuickBooks and reconcile weekly. After that, a quarterly accountant review ($200–$500/quarter) catches things you miss.
Software fees matter
Transaction fees are an expense most owners overlook. KOLLABO OS with zero markup saves $3,000–$15,000/year — that is pure profit improvement.