How To Manage Your Finances When Setting Up Your Own Personal Training Business
‘Running your own business can be the most rewarding decision you’ll ever make.’
So you’ve decided to set up your own Personal Training business, but do you know the best ways to manage your finances?
This is something you may not pay enough attention to in the early stages of starting your business, but will feel the effects of should they fail to be managed efficiently. So we’ve teamed up with Chartered Financial Planner and Managing Director of Foresight Independent Financial Planning, Simon Booth, to provide you with some top tips to make sure your business has a long and healthy lifespan.
Find a Good Accountant
Finding an experienced accountant to help you manage your finances will benefit your business massively – and will also free up your time to focus on other aspects of your business, such as building a strong client base and promoting your services. Once you’ve found the best accountant for your requirements and have formed a good professional relationship with them, they’ll be your reliable and trustworthy source of information, which will ease your financial worries.
‘Don’t just opt for the cheapest accountant; choose one who is going to give you good advice, rather than simply telling you how much tax you’re going to need to pay. They should tell you how to pay yourself, and if you’re a Limited company, this will usually be by means of salary and dividends to reduce your National Insurance fees.’
Make Suitable Bank Arrangements
Managing your cashflow may be more difficult than you initially anticipate, so making sure you arrange suitable facilities with your bank is essential for the success of your business. Whether that’s an overdraft, business account or another service, the bank arrangements suitable for you will depend on your personal financial situation, so speak to a banking expert to see what they can offer you.
‘Cashflow is the most difficult aspect for almost all new businesses. You should go into your new business with enough money in the bank to cover the first 3-6 months’ expenses, without needing to earn any money. Preparing in this way could make all the difference between being able to carry on with your business or having to give up on your dream.
Try to put money aside for your first tax bill; this is very difficult when you first set up your business, but tax is inevitable and HMRC will require payment straight away. A large tax bill is the sign of the business doing well, but a lump sum of money is required to pay it.’
Consider Marketing Costs
You may be the best Personal Trainer in the industry, but that’s no good if people don’t know that your business exists. You’ll need to promote your business through marketing to get your name out there and stand out against your competitors. This means you’ll have to set aside some money to fund your marketing costs. Whether you employ a freelance marketer or take a stab at it yourself, it will require money to do it effectively.
‘In your early days you need to do anything that you possibly can to promote your business. In the beginning this might mean offering your services for free or at discounted rates – basically, you have to do whatever it takes. Once you have the initial footfall then it comes down to how good you are, but without that footfall nobody will ever know.
You can spend a lot of money on marketing, but it isn’t always required. Often, the cheapest ways are the best ways. Make sure you have a good website detailing all of the information people may want to know when considering choosing you as their Personal Trainer. Websites aren’t necessarily expensive if you shop around, although new companies are often easy-pickings for companies that want to sell costly and unnecessary services in to you, so be cautious. Never sign up on the first meeting – always take time to consider what you are being offered. And remember, the offer that is only valid if you sign up today and can never be repeated can very easily be repeated tomorrow.’
Set Aside Funds for Your Pension
You may focus so much time and attention on your business that you may forget about your personal finances. Make sure you manage your money efficiently to set yourself up for the future you desire. Setting up a pension is a must so you always have a safety net.
‘Consider setting up personal pensions to protect yourself in case you cannot work, to fund your expansion, or for the inevitable unforeseen events that always happen when running a business.
Running your own business can be the most rewarding decision that you’ll ever make. But the fact is that most businesses fail in the first couple of years due to the simple mistakes outlined above.’
Following Simon’s top tips to manage your finances will allow you to take your business to where you want it to be. There may be the occasional bump in the road, but who said starting up your own business was easy? As long as you consider the above, you’ll be on the right path to financial happiness.