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1. Revenue Trends
Why It Matters:
Tracking revenue patterns helps spot growth opportunities and address potential issues like member churn.
Industry Benchmark:
Aim for 5-10% revenue growth year-over-year.
Pro Tip:
Analyze revenue as a percentage of total income and compare it month over month to identify seasonal trends and anomalies.
2. Cost of Goods Sold (COGS)
Why It Matters:
COGS measures the cost of providing your services, but for F45 studios, it’s typically small.
Industry Benchmark:
Less than 5% of revenue.
Pro Tip:
Track COGS on a cash basis for simplicity, as most F45 studios don’t carry inventory-heavy expenses.
3. Operating Expenses
Why It Matters:
High operating costs, like rent and utilities, can reduce profitability.
Industry Benchmarks:
- Rent: 8% or less of total revenue.
- Marketing: 3-6% of revenue.
Pro Tip:
Evaluate expenses as a percentage of revenue to spot overages and keep spending proportional to your studio’s size. To improve your marketing efficiency, consider working with JL Marketing, a trusted partner in ad spend optimization and member acquisition.
4. Payroll Costs
Why It Matters:
Payroll is your largest recurring expense, so managing it effectively is critical to profitability.
Industry Benchmark:
Keep payroll at 40% or less of total revenue.
Pro Tips:
- Use twice-per-month payroll schedules to maintain consistency and avoid the variability of three-payroll months.
- Automate your payroll process with Paywell, a payroll automation solution that saves time and ensures accuracy.
- Ledge can also categorize payroll expenses into clear departments on your P&L, helping you see exactly how wages are distributed across trainers, staff, and other roles.
5. Net Profit Margin
Why It Matters:
Your net profit margin shows how efficiently your studio converts revenue into profit.
Industry Benchmark:
10-20% for boutique fitness studios.
Pro Tip:
Review your margin as a percentage of revenue and analyze it month over month to identify upward or downward trends.
6. Seasonality Insights
Why It Matters:
Your P&L can reveal seasonal trends, such as summer slowdowns or New Year spikes, helping you prepare.
Pro Tip:
Use surplus revenue from busy months to create a cash reserve for slower periods and plan promotions to maintain revenue flow. For assistance in creating targeted seasonal campaigns, work with JL Marketing to make the most of your ad spend.
Why You Shouldn’t Rely Solely on Net Bank Deposits
Many F45 owners only track net deposits from their bank, which can misrepresent sales and costs.
Why It Matters:
This approach overlooks crucial details like refunds, processing fees, and membership revenue splits, leading to inaccurate reporting.
Pro Tip:
Use a service like Ledge to integrate Mindbody sales data into QuickBooks Online (QBO), ensuring every transaction is properly categorized and aligned with your monthly financials.
ABOUT LEDGE
At Ledge, we specialize in providing hands-free bookkeeping and monthly financial preparation for F45 studio owners and other boutique fitness businesses.
We understand the unique challenges fitness studios face, including:
- Tracking revenue from membership payments.
- Categorizing payroll for trainers and admin staff.
- Reconciling transactions from platforms like Mindbody.
Here’s What We Offer:
- Delivered by the 7th of the Month: Receive your P&L statement, balance sheet, and cash flow reports promptly each month.
- Accurate Reporting: Every transaction is properly reconciled, ensuring your monthly financials reflect your studio’s true performance.
- Sales Tax and Payroll Categorization: We handle these seamlessly, saving you time and ensuring compliance.
Here’s what our clients have to say:
“Ledge has been a game-changer for my F45 studio. They’ve helped us stay on top of our monthly financials so we can focus on growing the business instead of worrying about bookkeeping.”
“The team at Ledge is incredibly responsive and thorough. Their reports give us clarity we never had before—now we actually understand where our revenue is coming from!”
We also recommend tools like Paywell for payroll automation and JL Marketing for ad spend optimization to further streamline your operations and drive growth.
Additional Industry Benchmarks for F45 Studios
- Revenue Per Member: $150-$200/month.
- Class Occupancy: 70-80% average capacity for profitability.
- Retention Rate: Aim for 75% or higher to stabilize revenue.
- Membership Revenue vs. Fixed Costs: Membership revenue should comfortably cover rent, salaries, and utilities.
Conclusion
Your P&L is more than a financial report—it’s a tool for understanding your studio’s performance and planning for the future. By analyzing it as percentages, monitoring month-over-month trends, and partnering with a service like Ledge, you can focus on running your studio while leaving the monthly financials to the experts.
Ready for completely hands-free bookkeeping and financial management?
Book a free consultation today for support designed for F45 franchise owners.
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