A business involves many components and one of the most important ones is the cash flow. Today on Quick Wins we are going to be talking about why using cash could destroy your business as a personal trainer.
What is the job of a personal trainer? They are there to train clients and make them feel the best they can be. A personal trainer is not a bookkeeper or an accountant (unless one was in the field previously). Cash seems easy to control at first and people are happy because it is tangible money ready to use, there is no need to check your credit or if there is enough in the bank account. As a personal trainer, one needs a smooth process when controlling their finances. Why are cash payments not the way to go? Cash payments are not consistent, keeping track is a nightmare and no financial assurance. Here are some reasons as to why cash payments will not work.
- Unnecessary work
As a personal trainer, all of your focus should be on the client. When dealing with cash you will have to do more. You will become an accountant, bookkeeper, and tracker when using and be dealing with cash. You will have to keep track of everything, for example, what is coming in and what is coming out. That does not seem so hard at first, but it will eventually when it falls to pieces when you start to receive more clients when people start canceling or re-adjusting their schedules or just simply not paying on time. Which brings the idea of dealing with cash inconsistent. As a personal trainer, you will start to worry about many things at once instead of the client in front of you which could affect the long run of your business. So what do you use? A direct deposit system. Direct deposit is quick and hands-free when it comes to keeping track and holding your clients accountable. You will get to be a personal trainer and not an accountant.
- Unnecessary Conversations
As a component of you becoming a personal tracker of cash you will have to deal with ‘ unnecessary conversations’. Now, having conversations is part of everyday life, however, having those ‘uncomfortable conversations’ is not worth your time or your clients time. Saying “you miss-paid me” or “you owe me this much” is not the most productive and elegant way of dealing with your cash flow. Not to mention you could potentially ruin that business-client relationship you had because any conversation around money is never the best conversation and could lead to translating the wrong impression or message. A direct deposit system will avoid all of these difficult conversations because it all happens immediately and automatically which saves time and money.
After having those conversations you are going to have to deal with cancellations. Cancellations are going to happen and you will have to be prepared for them. Having a cash system is not going to work when people cancel because you cannot do anything about it. It does not matter how many policies or cancellation rates you have, you are going to have another one of those awkward conversations in order to receive the money. At the end of the day, the client did not receive the offered service so why would they pay for it. It is a ‘sticky’ situation either way so avoiding the cash payments are your best bet. The direct debit deposit is going to smooth out those cancelations by charging them because it is automatic.
- New job in sales?
Personal trainers, as said before, are there to help guide and train a client, not re-sell their packages. When a client is finished with their sessions you are going to have to re-sell the idea with the client because that cash flow has finished. When you have a direct deposit system you can keep charging those people until they say “okay I am done with my training” or “can I switch to this plan of training”. Either way, you will not have to be a salesperson on top of being a personal trainer. Having that direct deposit system also shows a sense of professionalism and organization, which is what people want to see.
- I want a vacation too!
We all want to take a holiday right? Being a personal trainer, the holiday seasons are unpredictable because clients have events to go to, will have family time, and just will not have the motivation to go and train, which we have all experienced before. Clients experiencing all of these things will lead to those cancellations and you will not be making your money and will not be on your deserved holiday. So what do you use instead of a cash payment? A direct debit system. You are able to keep your clients on track, charge when necessary, receive the correct amount, and eventually go on your deserved holiday. At the end of the day, you will be able to do your desired job and that is to train your clients, and train them in a smooth and professional manner.
Think about where your business is now and what situation you are in. If you are struggling to keep afloat figure out a new way to deal with your finances, if you are using cash make the switch to a direct deposit system. If you need help with specifics or just need a direction, go to our website; here at COM, we have a partnership with Paysmart, who are great to work with. See you next time on Quick Wins.