Transform Your Studio with the Power of Profit First!

0:02 Okay, we are live. Come on stage. We're We're on stage. I am on stage. Oh, wait. Move on. Move all on stage. Move me on stage. Go on stage. There we are. Okay. Hi everyone. We kicked it off with just Nina front and center. welcome. Welcome. We've got another minute before everyone is in the room. for those of you that are here already, thank you so much for being on time. We have a very large group registered today, which I'm Nina, how awesome is that all of these people are so excited about this model? Money. money. Yeah, obviously money talks. for those of you that are here already, we have a little chat on the side window. So you'll see kind of in your view there's you can see the people, you can see a chat. So if you wouldn't mind, please pop into the chat and introduce yourself and where you're coming from and your studio business name. that would be lovely because I'm sure can I add a couple of things to that list? Is that okay?

1:15 Yeah, let's let's wait. Oh, it's 9:30 right now. So yeah, go ahead. I would love to. Yes. Studio name. how do you have more than one studio? Number of locations. what else would be super handy? I'd love to know modality. Yoga, Pilates, what kind of studio? Perfect. Yeah. So, just pop in the chat. Everyone, if you can, please introduce yourself and studio type, studio name, number of locations would be fantastic. Thank you. Thank you. Hi, Becky. Hi, Becky. lots of friendly faces. Hi, Jillian. Hi, Jillian. You thank you. Thank you. All right. Jillian, did you get my email business on here? Okay. Okay. All right. Clearly, Nina and I know each other. So, for those of you that have not met Nenah so far or yet in your time in this industry, Nenah is one of my favorite experts and really whenever it comes to all things money, accounting, finance, for studios, she is the gal I lean on mostly because you make it fun.

2:32 Got to be fun. It's got to be fun. and I know this is a part of the business that is not everyone's cup of tea. And so I think for those of you that it is the finance folks in the crowd, amazing. You're you're going to learn equally as much from Nenah as others, but I think for those of us that potentially the financial side of the business or really diving into some of this data is intimidating, Nina makes it very approachable. So today's webinar, just kind of logistically and housekeeping, is going to be recorded. So, for those of you that are able to be here for just part of it, that's fine. The registration code that you got and your email will give you access to the recording at any time. And if you're new to our Walla website, there is always the webinars tab where you can click on any of our past webinars that you've either registered for or not. And now you've got a nice library of those to watch at any time. obviously the benefit is being here live the whole time.

3:35 You'll get to ask questions if you have them. And that's how we run these. We're very big about conversation and making sure this is actionable for you. So, we want you to be able to leave today with something you can do in your business to make a difference. And that means you may have to ask some questions or need some guidance. And that's totally fine. Please pipe in the chat. I will be watching it throughout the presentation, the conversation and we'll do our best to answer everything we can. I think that's it logistically. bear with us because this is Nah's first time using our new platform for webinars and those who know me know how strong I am in technology. yeah, we figured we can we can test it out on her and if she can get it then anyone anybody on this planet like literally anybody can get it. yeah, perfect. So, if we have a couple of technical moments, please bear with us.

4:39 Not if when we have a couple of technical moments, bear with us. But definitely I think we've got it. All right. But without further ado, I would love to kick it over to you. Nina is the founder CEO of Taran Financial. She has been working with studios in the fitness industry for years. this is kind of your niche, right? So, you've you've spent a ton of time over I've been a customer. I've managed in operations. I've been everything. Everything. Yeah. So, she speaks your language. She understands. It's not your typical accountant or accounting firm that you're trying to be plugged into, you know, a different type of business model. So, yes, I get it. The reason just quickly framing the conversation I wanted to bring you in for a profit first conversation was we have had first of all we started running data on a lot of our studios over the last two years now that we've had businesses on wall for a couple years and we have seen I mean frankly unbelievable revenue growth for the last two years for the vast majority of our clients over 90% of our clients had revenue growth most of them very strong revenue growth both. So, what I was curious about because I talk to studios all the time is, you know, are they actually profitable? Are they successful? I don't see their QuickBooks, right? So, I don't know how studios are really doing, if they're

6:08 paying themselves, if they're taking home a chunk of that or if it's all just going right out the other side to expenses. So, I wanted to start this conversation because I think what we often see is a vanity metric in revenue. and what you can bring in to light and to really describe for our community is how to really shift the focus to profit and what you're actually taking home. so I'll let you take it from there if you don't mind. Okay. Okay. So, basically what I'm going to do is quick warning is have your finger on the volume button because I can get very loud. I've been told when I am presenting because I get very excited. and you know what I realized it's my brand. This is just I cannot change. So this is just who I am. So you've been warned. Let me share my screen and we will get started. All right. I like your by the way. Very big fan of an excited and enthusiastic brand.

7:12 Well, yeah, because then it's like, who's gonna listen to me if I talk like this? Like, no. All right. So, here we go. Transform your studio with the profit of power first. Check this out. That's what we're doing. Boom. All right. So, step one, thank you. Thank you everyone who's attending. Thank you, Walla. Thank you, Laura, for recognizing how important this topic is. Thank you Taran Financial for giving me the day off so I could spend it with you. and just thank you everyone who's here live and who is watching the recording. Okay, so everyone thinks this is what running a studio looks like, right? It's like all very zen, very nice, but in reality this is what running a studio looks like. Okay. So, could we please throw in the chat, what is the biggest challenge in your business right now? And if you have to think about it, that's okay. But, just curious what it is. And then Laura is if anyone drops any answers in, I'd love to hear them because I can't see the chat right now.

8:26 So, first thing is managing desk staff. Yes. Yes. instructors. So staff generating leads. Okay. Anybody else challenges right now or are you just everybody's businesses are perfect? No, but this is good stuff because now we know what the next the next conversation needs to be about. Okay. So, not enough time in the day to get everything done. Doing everything myself. Yeah, I hear you. Competing with big studios and gyms that have much more money. attracting and retaining new clients and big ticket items have slowed way down. So big sales bit or big ticket sales have slowed way down. Yeah, a lot there. So, starting with staff, moving into how do I do it all myself without more than 24 hours in a day and then essentially competing with large brands with big marketing budgets and how do I attract clients when they're spending a lot of money and converting the class pass clients to members.

9:35 Oh, this is good stuff. This is good stuff. All of which we will not be covering today. So, okay. Okay. In all fairness, but now we do know I'm more than welcome to have a conversation about any of these topics though. But, what I did want to touch base with on today is cash management. Okay? Because while you have all of these other challenges and I respect and I hear you, I hear you. The bottom line is your business will fail if you run out of cash. And that's not the cause of your business failing, it is the result. So for me, it is very important for you guys to have a system in place to manage your cash. So if you have a system in place, I'd love to just throw in the in the in the chat, yes, I do. If not, let us know because basically when it comes to entrepreneurs to business owners, okay, you have two types. You've got the type that is operating from deposit to deposit and then you have the type that is comfortable because they have cash in the bank. Three, 83% are living basically deposit to deposit. So, on a scale of 1 to 10 with one being deposit to deposit, 10 being I'm great. I'm rolling in cash, let us know where you fall in the chat on that scale.

11:09 So, since co, we keep a lot more operating income in the bank. but we're afraid to pay ourselves more because we feel like we need that buffer. We've got some eights, we've got some threes. So, it seems like, you know, two, one, seven. We are a little bit all over the map, but certainly nobody's a 10 yet. Okay. So, this is where profit first can help us. It is basically a cash management system and it is designed to build wealth and wealth means that you have enough money to do what you want. You are not anxious. You are s you are a sustainable business. You can use this in your business. You can use this on a personal level as well. And the key is that it sets you up to be profitable right from the get-go. So if is anyone familiar with the book profit first? Like they've read the book or they've heard of the book just drop in the chat like yes I'm familiar. No not familiar at all.

12:16 Yeah, I know a couple people are because they told me before this. Yes. Read most of it, heard of it. Yep. Okay. Yeah. So, basically, for me to put it into practice. Okay. That is my goal as well for you guys today. So, basically, for those of you that are kind of like, I've sort of heard about it, but I'm not exactly sure what it's about. It is essentially designing a system where every dollar that comes into your studio has a purpose. Has a purpose. Okay? And you know what the purpose is right from the beginning. the easiest the one of the ways I like to explain it is it goes back to the old envelope method where you would have and this is like I know it's probably dating me but anyhow you would have basically $100 and you would have different envelopes like this is for food, this is for entertainment, this is for clothing and you would put 20 bucks in this envelope, 30 bucks in this envelope, 10 bucks in that envelope. It's the same idea, but you're using bank accounts instead of envelopes.

13:30 And what Mike Mallowitz does is he challenges the typical accounting formula of sales. Less expenses equals profit. And he flips it around and says sales take away your profit and that's what you have left for expenses. So when we are looking at how you're spending your money, you know what you're doing before you even earn it. Okay. And the thing is and Laura like you were saying like revenue being such a vanity metric, okay, that so many times the onus is on focus on growth, revenue growth, revenue growth. Nobody takes into account that there could be an expense associated with all that revenue growth. So what happens is that your profitability is suffering and people think well if I just make more if I just make more if I just make more I'll worry about the profit later. That is what's going to lead you to run out of cash. So profit first is this is this way where you are wrapping your arms around knowing if you are profitable right from the get-go. So yeah, you can grow but you're not going to suffer. Your profitability is not going to suffer while that happens.

14:53 So what does profit first believe? It believes that by putting profit first, it's always going to be at the forefront of in your mind. Okay? If you don't put profit and paying yourself first, it's too easy to push it aside. The other thing that it believes is Parkinson's law. And that is essentially, and in the book, they use the example of a tube of toothpaste. Picture when you open that new tube of toothpaste. What does your toothbrush look like? It's like icing on a cake that first time you brush your teeth. Now get to the end of that toothpaste tube and you are like pushing it against the counter. You're rolling it. You are trying I am digging my toothbrush in just to get that last bit of toothpaste. So Parkinson's law says if I give you a million dollars you will find a way to spend a million dollars. More you have more you use. Same thing with the time management. If you say you have an hour you're going to take an hour. So those so those beliefs are that if we so with Parkinson's law if we limit what we have available we'll figure out a way to work with it.

16:10 Yep. Couple of principles. Okay. If you have less cash you are going to get scrappy. You are going to figure it out. Right? You will only spend what you've got. And if you pull that money out and it's not sitting in your bank account and you don't have eyes on it every day, you're not going to be thinking you have it to spend. The other thing that Profit First does is create a habit of where you are getting into the system of pulling that money out, sucking it away. Okay. Yeah. I feel like I mean the pandemic kind of put all of us in scrappy mode. So all of us have had a recent experience with having to feel like we're doing more, we have to do more with less. And then just the global state of the economy as well. I mean, we were in a position where there was such a bubble and everybody was used to the idea of grow at all costs and we'll figure it out later. And now it's I mean just if you look at the number of layoffs there have been in the month of January like nationwide it's it's pretty astounding and companies are demanded to do more with less and so it's everybody's mindset is kind of shifting in this direction.

17:31 Yes. Absolutely. And that's that's the there wasn't really a question there for me was there? It was just mostly a statement. Okay. I'd like to talk to you. Sorry. No, no, no, no, no, no. Jump in. Jump in. This is very far from the Nenina show. but yeah, but that's that's the thing because now for the first time I what I am seeing is that a lot of my studios have the cash coming back in. Right. But now let's bring in the scrappiness. Yep. Right. And so that we prepare we prepare ourselves. So, the way that profit first works is you will have multiple bank accounts based on what you need for your business. The ones that they list here in the book are income, profit, owner's pay, tax, and operating expense, which will be shortened to OPEX, we'll call it. Mhm. So essentially the way the process works is money comes into one account, your income account, and then you are distributing that money, allocating it to the various other accounts that you have based on percentages. And we're going to get into how do you know which percentages in a little bit. Now, depending on your business, you might need or want additional accounts. So for my yoga studios, what we will do is if they offer teacher training or retreats, we will set up additional accounts for that because what often happens is that money will come in at different periods of time but have to go out at a later

19:20 time. So this allows us to sort of sock that money away and it's always there to cover the expenses. We're not using teacher training to pay rent, right? because that's a different issue. And then that money is there and immediately you will know if those if those offerings are profitable because if that cash is going out too quickly, we know there's an issue. Okay. For my Pilates studio, we might have an equipment account because of maintenance or wanting to buy more equipment. Sometimes a payroll account might be separate. Okay. The key is to design the system the way it works best for you. Nothing is written in stone. Okay? When it comes to you and your money and how you organize it, nothing is written in stone. So, at this point, I'm going to pause for a sec. Are there questions? Anybody Does that blow anybody's minds? And now you're sitting there reeling. So it's basically the money's coming into one bank account and going into different bank accounts depending on the purpose.

20:35 No silly questions, Susan. Don't worry. No, no silly questions. Not possible. Profit versus owner's pay. Ah, okay. Love that. Great question. So the way it is set up and we're going to get into a little more detail there is profit. Okay. So owner's pay is your pay as the owner. Okay? You are the one taking the risk in starting this business, right? And let me back up. Owner's pay is the pay you get for running your business, for owning your business. Okay? It is not the pay you get for teaching a class in your business. Right? Okay. profit is the bonus you get because you're the one who put the skin in the game and took the chance and opened that studio. Yeah. Okay. So, does that make sense? Let's see. Sort of. I mean the pro the way I understood you saying that is that the owner's pay is something that you consistently get.

21:52 It's going to be there all the time. It's like your salary essentially. It is it is it is essentially your salary. So even if you have a manager, you are you are running a business. You own a business, right? And you should be able to get paid. Your lifestyle should be supported by that business ideally. That's our goal, right? Profit is the cherry on top of the Sunday. Yeah. So, she said, "So, I always take my pay, but then does this mean I also get some from the profit when it's there?" Yes. And we're we're going to we're going to dive into the details when we start going into that. Okay. Perfect. Okay. So, how do you start? What are the steps to implementing it? So I want to I want to jump back to the profit thing. Okay, the profit thing the profit account sits there and basically every quarter you will have money in there and you are encouraged to take a distribution from that account. In the book I want to say they recommend half. You don't have to do half. Like if you have $1,000 sitting there, you could you might say, "I want to take a $100."

23:11 But the key of the profit account is that you take that money and you reward yourself. You can take yourself out for whatever you want. You want to plan, you know, depending on how much is there. It is, it is the treat. It is the absolute treat of just like, "Yeah, I'm doing this kind of money." Okay. implementation steps. We've got to figure out the bank accounts that you're going to use. You're going to see what your business looks like now. Okay? And those are called your current allocation percentages, your caps current. So your current right now might be 100% comes, you know, income account and you might have 90% going to operating expenses, 10% going to owner's pay. You might have, you know, a certain amount going to taxes, a certain amount going to operating expenses. We need to see where we're at now. Always when it comes to you to money, accounting, finance, you always start from where you are now. And then we figure out our target allocation percentages or our taps. Now, to get from your current to your target, it's not going to be a month. Because if you're currently spending, let's say, 90% on your operating expenses and our target is something closer to 40, you're not going to do that in a month. So your target might change. It might be 80, then 70, then 60. Okay? So this is a long game, everybody. This is a long game. So once we know where we're going, then we can

24:54 start cutting unnecessary expenses. How do I know if an expense is unnecessary? I have something if we have time at the end that I will show you on how to evaluate expenses. By cutting those expenses and getting scrappy, you will improve efficiency. Improving efficiency is another way of saying my profits is going up. It improves your bottom line. Okay? You will have more cash. You can use it to pay down debt. you can use it to build that wealth and savings. So, how do we figure out the current allocation percentage? You're looking at an annual basis. So, you would be looking at 2023 at this point, the full year. You will take your total income for the full year and you will pull out the cost of products that you sell. Okay? So when you pull that number out, I want you to pay attention to that number because if you are sitting on a lot of inventory, that's something that needs to be addressed.

26:08 So we're talking retail products right now. Retail products, hard products. We are not talking your staff. We are talking inventory. We are talking merchandise, clothing, yoga mats, anything retail. That gives you what is known as your real revenue. So your total revenue versus your real revenue. It is because this is this is what makes us laugh is when I hear people saying, "Oh, I'm a I'm a six-f figureure company. I'm a sevenf figureure company." Okay? You can be a $5 million company. But if it takes you $4.5 million to generate $5 million in revenue, you're not a $5 million company. You're a $500,000 company. Mhm. So we need to pull that number out because that is your real revenue when it comes down to this for our industry. We probably won't have huge amounts there because I think when they're doing it, they're looking at more like it says here materials and contractors like if you're if you're bringing that kind of stuff in. so, so, but we do need to pull that out first.

27:28 Then what you're going to do is you're going to look at where your money is going now. How much is going to payroll to staff? How much to profit? How much to how much are you paying yourself? How much are you putting away for taxes? And then how much is going to your operating expenses? Can I back up one second? Absolutely. So absolutely some of these businesses probably quite a few actually do pay contractors for workshops, special events, teacher trainings, whatever it might be. Do we add that in the first bucket of products or do we have that in the bucket of all? So I would say if your workshop I'm going to say for the ease of it keep all your staff together. Let's make it easy. Okay. Let's make it easy. Makes sense. because if you're running workshops where you are paying that person and that person's getting like 90% of the revenue of the workshop. That's a that's something different. But I'm gonna I'm gonna I'm gonna say for the ease, let's put them in staff for now. Okay. So, is this clear? These are this is where your money is going now. We've always we've got to know where the money is going now. Then we can start looking at target allocation percentages. Okay, do not screenshot this. Do not focus on this because I have I can one up this. Okay, the key for this slide is that there are going to be targets and it may not be it's not going to be necessarily where

29:25 you're starting from. Ready for me to one up the slide? Let's look at our industry. I will have this for you. I will have this for you so you don't have to like screenshot or write everything down. I will have this for you. But basically, these are sample percentages that you can if you're like, I don't even know what to target. This is where you can sort of start with. Okay. So, if your business over the course of a year is $300,000 or less, you would be in the first column. Okay. From $300,1 up to 650, you would be in the second column. And then up to a million, you would be in the third column. Okay? Again, these are just targets. This is not necessarily what would what you might say, you know what, Nina, no, I'm sorry. I need owner's pay of 20%. You know, because depending on how your studio is set up, if your studio is set up where you are teaching a bunch of classes, then you need to be reimbursed for that. You need to be paid for what you are doing in your studio.

30:40 So, what these targets will do is then give you an idea of where the money should be going and then you'll see what you're going to need to do to make that happen. So, as I said, this could be long range targets. So if you're looking at this, you your starting point might be four going to six versus four going to 10. Yep. Okay. Any questions at this point? no. Just a couple of comments about like that helps because I'm an owner and I'm also a teacher, so need to make sure I'm doing that. Yes. Yes. So, so here's here's something that I want you to think about is that when you are teaching, I want your money counted here. When you are doing your owner thing, I want your money here. Okay. Okay. So, this can't be it. this if you're teaching the like half your classes then your payroll may not I'm doing the is it work yeah it's working on the screen okay your payroll number here might be closer to 20 1520 and this might be higher so there's a balance there depending on how much you're doing in your studio owner's pay versus payroll those are the two yes yeah okay and then taxes yes oh you can't see her pointing Sorry, they can't see on the screen. It's small for me, so I couldn't tell.

32:22 Oh, okay. They can't see your mouse. They cannot see my mouse. Okay, so basically with owner's pay and payroll because you are doing so much in your studio, just know that those two percentages are going to play off each other. So, so it might be at 15% owner's pay and you are literally not teaching. You are not the janitor. You are not at the front desk. There's there's a balance there because so many of us are working in our business. Yeah. At this point. So, it's going to be quite individual to your studio which we'll talk about at the end like how we can personalize this. Yes. question taxes. Are you talking all taxes period, yearly, federal? How do you like Yeah. Okay. That 15% that you are seeing for taxes that those are your taxes as the owner. It is not payroll taxes. Those your payroll taxes are in that staff number. That is that is the belief that the that the business should be paying any income taxes you have to pay for money you are making from your business.

33:39 Okay. So some benefits of profit first like we said it's going to have you putting when that dollar comes in. So let's say for example that dollar comes in I know that 25 cents is going here 30 cents is going here. It's it's helping you prioritize that profit and paying yourself. It's helping you plan for the future because let's say you know you want to have a budget for let's say a new piece of equipment for your studio separate bank account and you're socking that money away and it just helps to keep your funds organized. There are disadvantages though. This can be tough to implement because you now you have multiple bank accounts, right? And we have to keep something in mind depending on where you bank, there could be minimum balances and there can be maintenance fees, right? So, if you are in a bank where they're charging you like either I had one studio where she started it and the minimum balance was $1,000.

34:55 And I looked and I said, "This isn't going to work because we can't lock up $5,000 so you avoid fees. That's not good business." and then the other thing is with the fees is like what Bank of America might charge like 30 buck maintenance fee. If you have five accounts that's 150 bucks a month. No, no, no. So, the key here is to look at credit unions because a lot of times their minimum balance might be like five bucks and they won't have any fees. And then there is an online bank that I can give you more information about. It is called a relay. I can get you demos and everything. They are designed, they are a profit first bank. They allow you to have multiple bank accounts, no fees, and set up the transfers automatically. It's amazing. I was just going to ask if somebody hasn't done it, we need a profit verse bank out there. Sounds like Exactly. It is there. I've got you.

35:51 I've got you. Okay. Because the second disadvantage is now you're sitting there and you have to money comes in. And in the book they're saying twice a month sit down and transfer. That again to me that needs to be personalized because some people might be like no I need to transfer every week and be on top of it. Some people might be once a month I'll do my transfers. But what there is but that bank that relay bank they allow you to set everything up and automate everything right but this does take some time because if you're manually doing the transfers it does take some time. if you have very high overhead, high payroll, high property taxes, high rent, and your profit margin is already very tight, it might be it may not be in your best interest if you're now taking that very small amount of cash and distributing it. It might be too stressful. So then it might make more sense if we kind of lower those overhead costs first and then implement the plan.

37:04 The other thing is this can be challenging if you are carrying a lot of debt because we have to put aside some money for debt. Now, what a lot of my studios are doing is because of the EIDL loans and those payments now coming out and wanting to pay those down, we might have a different bank account for debt and every month we're putting money aside to help pay down the debt. But if again it goes back to if you don't have a lot of wiggle room with the cash in your business, we need to wrap our arms around the money going out and figure that out first before we actually implement the multiple bank accounts. Questions at this point? One question is tax money. Does that technically count as owner's draw from a bookkeeping perspective? From a bookkeeping perspective, if you are an LLC, yes, cat, you're getting technical, man. Yes. But good. We should. Yes. It's good because owner's draw from a bookkeeping perspective, you might want to break down your owner's draw into your taxes, how much you're taking basically as your as your payroll. sometimes if you have if you're using it to cover other expenses that you want to track separately. So, a lot of times I'll have sub accounts for owner's draws depending on what we want to track there.

38:38 Okay, cool. we got a couple of other good bank options, Capital One, Ally, Blue Vine. so as you're starting to check out options for this, what's a good question to like best question to ask your bank if you're going to be thinking about this minimum monthly minimum? First question I would ask the bank, are you familiar with the profit first method? Okay. Okay, that's the first question because second question would be about the minimum balances and the maintenance fees. Yeah. And then ease of transfer. Yes. Okay. Yep. Great. Okay. H when should I start? Now. I'm always gonna say now. All right. What's next? Yes. What do we do? What do we do? Goal. Goal. Can we please pick one goal? Maybe the goal is just, hey, you know what? I'm going to reach out and start researching banks. Maybe the goal is, you know what? I'm going to open one bank account and just start socking away a little bit of profit. Okay? But let's develop a goal. Feel free to drop it in the chats. Put it out there. More likely to happen. Let's have a plan. When are you going to work on this? When are you going to look at the money? When are you going to wrap your arms around it? Do you have the resources you need? Wait, I've got a gift for you that I showed Laura and she was like, "Oh, okay." And support and accountability. You've got that. You've got that. We're here for

40:21 you. Okay. So, we have any if there's any questions, if we need to dive a little deeper, we've got you covered. We've absolutely got you covered. What I'm going to do is I'm going to stop sharing this window. Okay. Can I share my wind my gift? Yeah, guys, she's got something that will help everybody with even the hope is everybody does something off of this something because the thing is you don't have to start right away. I have people where they have one account. They have just a little profit account and they're just starting there and they're putting 1% in the profit account and it's awesome. It's great. It's great. It adds up. And I have another I don't work with them because I wouldn't let this happen. But I have heard of another studio. They had 26 bank accounts. 26. And every single one had a name and it worked for them. Right now, the amount of time they were spending on doing their transfers, I would personally try and get more clients in my studio. But hey, whatever works, whatever works, right? So, that's the beauty of it is personalizing the system so that it works for you.

41:39 So, what I have to share, let me just show quickly, is I created the profit first implementation pack for everyone here. So number one, here's a checklist so you know what to do. Number two is that fancy dancy information where it is for our for fitness studios guidelines. Guidelines. Okay. Yeah. This is a sample of that spreadsheet that I showed you, right? And this is where you just in the color. Anything in white, don't don't touch. It's a formula. But anything where it's color, that's on you. That's for you. Here's your blank one you can use. And you can change the names of the bank accounts. Then once you have your bank account set and you want to start figuring out, well, how much do I allocate and you know your percentages, you have a little allocator calculator where you can start mapping out everything. So if you have an account like here for debt or then you can map all of that out with and then you have the instructions here and I will I will call out I'm going to stop sharing.

43:01 This is like being handed the keys to a Ferrari by the way. Like being able to give yourself kind of a you know the tool the total tool not just the book not just reading it and trying to conceptualize it but now there's something that you can actually drive right and play with. And the thing is I will be very clear that the when it comes to assessing your current it's where you are right now that is usually the hardest part because it's it's knowing what is an operating expense what counts as owner's draw and like that owner's pay we'll say because if you are running certain discretionary expenses through the studio, then those would be part of owner's pay because they're not necessarily needed to run the studio. So, that's what if any of you guys know Mitch from the like boutique fitness broker, he helps businesses sell and buy and that's one of his things that he talks about quite a bit is the discretionary expenses need to be categorized correctly. So, yes. And then I just saw in the comment, "Cat has 14 accounts and does her transfers every Friday. Takes her 10 minutes." Awesome.

44:22 Awesome. I'm telling you, this is addictive. This is addictive. Okay. I had one studio go from zero cash to the studio owner basically, how do I put this? Bought a car during CO. Bought a car during CO. Love it. Okay, this can change the way your studio works and everything and then if you need help, I am more than happy to set up an AMA and we can go through anything you're finding challenging, if you want opinions, if you want if you want help figuring out where you're at, what you should aim for, if whatever you need, basically whatever you need. I'm easy. yeah. And I think so those of you who are live on here, you're going to be getting anybody who registered actually beforehand will be getting a copy of the playbook essentially. Sorry, what did you call it? implementation package. But I like playbook too. Okay. Implementation package, playbook, whatever you want to call it. but if you're watching this on a recording a year down the road and you never registered for this originally, just shoot us a note at hello.com and we can get you a copy of it. and then Nina, you were mentioning that you are happy to do some free consults here for that initial implementation step.

45:52 Yes. Yes. So, I will have a schedule link where you'll be able to book I think it's called like AMA for ask me anything. you'll be able to book and if it's like, "Hey, I don't I don't know how to categorize." We will answer any questions. I don't know which accounts to start with. Any question you have, more than happy to help. Awesome. Take advantage, you guys. I don't think I've ever had somebody who's worked with you who hasn't come back to me and been like, "Oh my gosh, thank you. This is business changing." So, I only bring people on that I really believe in. Well, thank you. Yes. all right. We are at time for today and I just I thank you so much for bringing this kind of concept to us for talking through it making it approachable and this playbook and implementation guide hopefully will be a fantastic tool to get everybody started. how can they reach you and where should they find you if anybody has questions?

46:48 So I will I will put in the chat you can shoot me an email. you're more than welcome to shoot me an email. and then, I know, see, this is me. I'd like, oh, should I have my website? Oh, probably. But nope, that would be too easy, right? That is my website. so please feel free to reach out. and then we will we'll be able to send information so they can grab that implementation package out with the reporting and everything. We will be good. That will go to every We will be good. Those of you that know me know I say I'm financial fungus. Once you get me, you don't get rid of me so quick. I have not heard that before. All right. Awesome. That is a perfect way to wrap today up. thank you everyone. We will be back next month with a really, really exciting webinar all about how to scale and grow your company. So, if you're in a position with your studio that you're looking at, do I open another location? Do I consider licensing? do I consider franchising? We have an amazing team from Raising the Bar Consulting that's going to be coming on and talking to us about some of the advantages of each, what some metrics are to kind of consider when you're thinking about expanding and then practically what to do next. So, really, really exciting and I can't wait to talk to you guys next month. All right, thanks Nina and thank you everyone. Bye.

48:18 Bye. Bye.