"We're Losing Money. Should We Still Hire?"

0:00Hi, Alex. I'm Prester. >> What's up? >> My my wife and I were really huge fan of of your family and congratulations on soon being a father. Uh so, my wife and I will run a private sport coaching business in Fribourg, Switzerland. We started outdoors in 2024. And now we have two studios with one including a 100% woman-only space with a dance studio and a fitness boxing uh space.

0:28>> Mhm. >> And now the problem is that my wife and I were the only ones who actually you know dealing with the whole with the whole business. And we need approximately 4K a month to cover our costs and you know be able to pay ourselves salaries. But right now we're doing approximately 20K a month.

0:51And so the question is should we actually delegate should we be delegated some work to people so we can concentrate on growing our business or should we still be doing it ourselves? >> So, your fixed costs are 4,000. You're making 20, so there's 16 in profit. Is that right? >> Yeah. >> Okay. >> No, sorry. No, fixed cost is 40,000 a month.

1:17>> Oh. >> 40K a month. >> And you're making 20? >> Yeah. >> So, you're losing money right now. >> Exactly because we opened the the woman-only space in the month of May and in my region that's like the summer down period. And so we were actually expecting to lose a bit of money. >> Okay. Are you making progress every month? >> Uh yeah.

1:43>> Okay. >> And I mean I mean I mean like we are expecting like right now we're we're on break for 3 weeks and we're going to start up in the 17th of August. And usually at this period we have so many so many demands. And so, we're actually uh uh we're actually, you know, thinking of delegating so we can grow the business or we're thinking of, you know, doing continue continue to do it ourselves since we don't have uh since we're in a financial struggle, yeah.

2:13>> Yeah. Um I mean, it sounds like you don't have many options though. Um because both So, there's two locations or one? >> Two locations. >> So, you guys are basically Is your wife at one and you're at the other? >> Exactly, more or less. That's it. >> Yeah. Um With the time you get back, fundamentally, the only thing that's going to grow this business is selling memberships, right? >> Yeah.

2:37>> Okay. So, it's This is a pure dollars and cents question, but you have to be confident about the answer, which is if I got somebody to train, let's say 8 hours a day so you don't have to be on the floor, can you make more Basically, can you make enough money in in membership sales to cover the cost of that labor? >> Yeah, I think so because um uh well, the problem we have is that we also have two kids.

3:02And, you know, if we can get if we can liberate a bit of time to, you know, like you know, run so the business we don't have to be in the business for the business to run. And so, with this way we can also concentrate more time on, you know, getting the business to get bigger and, you know, like have clients and, you know, and so, that's the question we're like that's a bit of the question we're asking each other right now.

3:27>> If you can take the extra time and make more than it cost you to pay the person to do the training, then it makes sense to make the trade. So, the first hire I had when I I was in your exact position, so I I know it very well. Um was I got somebody to handle all my uh morning sessions. Sorry, afternoon session. No, actually think I started with my morning sessions, but um I probably should have started in retrospect with my afternoon sessions, but I think I was just dying cuz I was waking up at 4:00 every day Um and going to sleep at like 11:00. Anyways, um point being I'm guessing your When is When are sales the best for you? Afternoons?

4:04>> Yeah, I think I have more people in the afternoons. >> Right. So, I would say teach the morning sessions, get somebody to cover the half day in the afternoon. It's going to cost you, I don't know, maybe 20 bucks a session. You're going to do four sessions in the afternoons group, right? >> Yeah. >> Right. So, it's going to cost you 80 bucks a day. And so, as long as you can cover and that's going to be what? 5 days a week? They're going to do that? >> Yeah, yeah, 5-6 days a week to >> Yeah. So, if it's So, if it's Let's just say 5 days for simple math. So, that's me 400 bucks a week. It's $1,600 uh a month that it's going to, you know, add up for uh in terms of total cost. As long as you can If you had all your afternoons free so you can do your sales, cover $1,600 a month, you should do the trade as soon as possible.

4:42>> Okay. >> And then, once you have that, then you can say, "I'm going to do the same thing in the morning." But, the thing is is that you have to make sure that whenever you make those trades, whenever you trade money, as in like it's [clears throat] it's the reverse trade. You're trading money for time. That when you make that trade, you have to make the money back. Otherwise, you're actually losing money. >> Yeah. And well, you know, though, we also have the feeling that most of our clients, they come because they actually come because of us. And we're also afraid that if they come and they don't see like our face or if it's not us that's doing this

5:11>> It's easy. It's fine. Everybody goes through this cuz you have to take it to the natural extreme, which is you're not going to run every class forever. It's not going to happen, right? You know that's going to that's not going to that's not going to be forever. So, what you can do is do this over the next, call it 4 weeks, have somebody come in for one session or two sessions, and then three sessions, and then four sessions, and five sessions. Um Over time, you can do them together. In the short term, you transfer the authority over. And then, when people come in, you can still greet them, say hi, you know, do the the back and forth and whatnot. And you're going to have to accept the fact that some people are like, "Oh, it's not like you." And you're like, "Yeah, you're right. He's even better." So, you You are in a service business. You have to make sure the person who comes in is good.

5:45Um but, the goal should be to find somebody who's better than you, but you can still greet people, have the social component, all that. But then the rest of the time during the sessions you need to do sales. And if you don't have sales, go out on the floor and basically anytime you're not in sales, be on the floor so that you can still kind of cover that in between. Does that make sense? >> Yeah, it does. >> Okay. >> And if if if I may, just one last question. Like right now client acquisition method is mostly Instagram

6:12>> Okay. >> or like word of mouth. And we've tried putting up some ads, but we feel that it's not really working for us. So, what do you actually like uh what do you think we should do about this? >> Well, I think you probably [clears throat] don't have the right offer or sales motion. Ads for sure work for Are you doing like what, meta ads for the gym? >> Meta ads, yeah, exactly. Mostly >> Yeah, I mean, meta ads still to this day work fine. What was your cost per lead?

6:38>> Uh think we did a 500 Swiss francs, that's about $500 for 1 month just to try. I mean, we got we got some clients, but I think people mostly come because you know, I'm quite famous in my region. >> Yeah. >> And so it's uh I think that's what really attracts people more than, you know, the meta ads. >> Well, if you're quite famous in your region, ads will only work better and you'll be able to liquidate or you'll be able to get the cash back for the time that you're paying the trainer to be on the floor. And so Yeah, I mean, I think you should run ads. You should post content the way that you are and do sales.

7:21>> Okay. >> I I just don't think you should Don't overcomplicate this. Take the afternoon sessions, that's when you sell. If you don't have a sales appointment, go on the floor so people see you. But otherwise, you should be basically working leads and selling. That's That is the job that you're in right now. >> Okay. >> All right. Like you got in the gym business, but you're actually in the marketing and sales business. >> Yeah, it's sometimes it's hard to, you know, like switch. >> It's a different game, dude. Different game. I started gym cuz I thought it was going to be about fitness, but I never think about fitness. All I was thinking about membership sales.

7:48>> Yeah. >> All right. Appreciate you, dude. >> Yeah, thanks. Yeah, thanks a lot, man. >> Also, read the Gym Launch Secrets book. >> I I I do I did. >> Okay, good. >> I am, actually. >> Well, good, then >> I read the other one, also. >> Then do that. Run the like the whole the whole model's already in there. Just do it. >> Yeah. I I always pick I always pick a chapter and I try to you know, do the exact same thing. >> Good. >> So, I you know, so yeah. >> Good. You're going to want to get semis going as fast as you can so you can sell higher ticket stuff.

8:17>> Okay. >> And so, if you want to have people come to you, again, this is short-term, long-term, but short-term, if you want to increase the cash of the facility, depends on how much money you want to make and what your ultimate goal is, but if you got two facilities and you and your wife are comfortable working, I would say, you guys can do the semi-private, so let the the trainers do the the one-to-many, and then people are going to want to ascend to the semi-privates at a higher price point. Instead of paying, you know, $150 a month, they're going to pay, you know, 400, 500, 600 a month do one-on-six with you. >> Yeah, we actually thought of doing that, but we don't really know how to put that into motion. Well, yeah, we we already thought about this.

8:49>> Run ads and sell people into it. That's it. That's how you put it into motion. Pick one time a week that you have and you keep adding times. >> Okay. >> All right. Appreciate you. >> Okay. Yeah, man. Thanks a lot. >> If you liked this video and you're a business owner who wants to break through your current revenue ceiling, I just distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so, you can click here and you can check it out.

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