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How to set financial goals
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:
- Hiring a full time employee
- Opening a new venue
- Running a marketing campaign
- Buying new equipment
- Adopting a CRM software like ClassForKids
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.
Your financial check template
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 income – 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 costs You will want to divide your costs into two distinct categories:
A. Overheads: 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.
B. Direct Costs: 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 net profits. 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.
Income - (Overheads + Direct costs) = Net profit
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.
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!
