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Female emPOWERED: Winning in Business & Life

Episode 241: Healthy Margins For Business Profitability

July 02, 2024 Christa Gurka, MSPT, NCPT- Health and Fitness Business Strategist
Episode 241: Healthy Margins For Business Profitability
Female emPOWERED: Winning in Business & Life
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Female emPOWERED: Winning in Business & Life
Episode 241: Healthy Margins For Business Profitability
Jul 02, 2024
Christa Gurka, MSPT, NCPT- Health and Fitness Business Strategist

Welcome back to another episode of the Female Empowered podcast. I’m your host, Christa Gurka, and in this episode, I’m discussing healthy margins for business profitability. By the end of this episode, you should have a handle on what percentage of your business’s income should be going to certain expenses so that you can maintain healthy margins to keep your business growing. 

Some of the key things I discuss in this episode are:

  • Payroll Costs - Payroll is typically the largest expense in a service-based business. Industry experts recommend payroll costs should be between 30% and 45% of revenue.
  • Rent - Rent should be less than 15% of your overall revenue, ideally around 10% to 12%. Consider market variations (e.g., urban vs. rural) and negotiate lease terms carefully.
  • Marketing - Healthy marketing spend is between 5% and 10% of revenue. For growth phases, spending might be up to 20%. Always measure the return on investment (ROI) for your marketing efforts.
  • Profit Margins - A healthy profit margin in the fitness industry is between 12% and 20%. New businesses should aim to break even in the first year.

Be sure to stay tuned for more details about the upcoming CEO Summit. Join the waitlist for a transformative experience designed for 25 women and their teams.

Interested in learning more about Kickstart Accounting? Check them out!

Downloadable Resources: Visit ChristaGurka.com to access financial benchmarks and other helpful tools.

Join the Email List: Sign up for my newsletter to receive exclusive content and direct downloads.

Thanks for tuning in! If you found this episode helpful, please share it with other fitness and wellness professionals. Don’t forget to subscribe, rate, and review the Female Empowered podcast on your favorite platform.

Want to chat about what I discussed in the episode? DM me on Instagram @ChristaGurka. 

Together, let's empower each other to thrive in the fitness and wellness industry! If you're interested in being a guest on a future episode, reach out to us at Christa@pilatesinthegrove.com.

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Show Notes

Welcome back to another episode of the Female Empowered podcast. I’m your host, Christa Gurka, and in this episode, I’m discussing healthy margins for business profitability. By the end of this episode, you should have a handle on what percentage of your business’s income should be going to certain expenses so that you can maintain healthy margins to keep your business growing. 

Some of the key things I discuss in this episode are:

  • Payroll Costs - Payroll is typically the largest expense in a service-based business. Industry experts recommend payroll costs should be between 30% and 45% of revenue.
  • Rent - Rent should be less than 15% of your overall revenue, ideally around 10% to 12%. Consider market variations (e.g., urban vs. rural) and negotiate lease terms carefully.
  • Marketing - Healthy marketing spend is between 5% and 10% of revenue. For growth phases, spending might be up to 20%. Always measure the return on investment (ROI) for your marketing efforts.
  • Profit Margins - A healthy profit margin in the fitness industry is between 12% and 20%. New businesses should aim to break even in the first year.

Be sure to stay tuned for more details about the upcoming CEO Summit. Join the waitlist for a transformative experience designed for 25 women and their teams.

Interested in learning more about Kickstart Accounting? Check them out!

Downloadable Resources: Visit ChristaGurka.com to access financial benchmarks and other helpful tools.

Join the Email List: Sign up for my newsletter to receive exclusive content and direct downloads.

Thanks for tuning in! If you found this episode helpful, please share it with other fitness and wellness professionals. Don’t forget to subscribe, rate, and review the Female Empowered podcast on your favorite platform.

Want to chat about what I discussed in the episode? DM me on Instagram @ChristaGurka. 

Together, let's empower each other to thrive in the fitness and wellness industry! If you're interested in being a guest on a future episode, reach out to us at Christa@pilatesinthegrove.com.