PILATES BUSINESS SOLUTIONS
Below you will see a list of Pilates business solutions articles.

Get a Dashboard for your business..

How can you make your Pilates business more profitable in these difficult financial times? After all, if you are not making profit, you can just as well go sit on a public beach somewhere - the result is the same, the effort a lot less!

 

One strategy to increase profitability is knowing exactly what is happening in your business, regardless if you run a small or large business. Even small business owners often do not have a finger on the pulse of the business - the finance information is left to someone else to compile, or is regarded as the accountant's problem once a year. Even if you review your financial information every couple of months it is not frequent enough - by the time you do find out how your business is doing, it is far too late to do anything about it.

 

So, what should you do? Get yourself a dashboard! Think about the dashboard of you car - it provides all the critical information your require to operate the vehicle, such as petrol tank level, temperature gauge, etc. and you only have to look at the  dashboard to get all the information at a glance. Similarly, you need a dashboard report of you business - all the critical business information on one page, daily or at least weekly.

 

Typical Dashboard information for your studio will include: fees earned from clients, sales (e.g. from accessories) and then all expenses for the day/week with the reason for the expense. If you carry stock of accessories, you will require the stock levels on the report. If you have a large business, your staff should provide a Dashboard on a daily basis that allows you to know what is happening in the business without having to view different reports and page through files. You could create your Dashboard on a spreadsheet, and have a different sheet for every day.

 

Once you have this information, you can monitor your studio's profitability on a daily/weekly basis  - the focus on profitability will change how you think about your business. If you are not making a profit, cut expenses and get more clients! A dashboard will enable you to decide if you should add more sessions, increase your fees, reduce expenses... taking an informed business decision, at the right time, is always better than guesswork! Try it – you have nothing to lose.

Business Structure for Pilates Studios
How do you know which Business/company structure is the correct one to use for your Pilates business? You need to consider the pros, cons and implications of the company structures available.

 

One such company structure is that of Sole Proprietor. It means that you, the individual, plus your business combine into one legal and tax structure. The Sole Proprietor structure is very simple and easy to use, and it is easy to start and end. From a tax point of view, you as individual need to be registered as a tax payer and your business tax return in this case will form part of your personal tax return, e.g. 'S Johnson' trading as 'Save Yourself Pilates'.

 

Sole Proprietor is a cost effective structure. There are no start-up costs to using a Sole Proprietor structure, as no company registration is required. It is advisable to have a separate bank account for the business (as opposed to your personal bank account) as this makes it easier to separate the business expenses from your personal expenses.

 

There are no specific audit requirements for a Sole Proprietor, also a cost saving when compared to other business structures. You have to submit business income and expenses separately from your personal income and expenses on your tax return, but no auditing is required by a professional firm, you could do this yourself or enlist the services of an accountant.

 

The disadvantage of a Sole Proprietor is that there is no limited liability – the business and you are combined as one entity, so any business debt becomes personal debt.

 

In summary, Sole Proprietor could be the right structure for you if you want to start quickly, keep it as simple as possible and minimise setup costs.

 

But what about employing staff, going a bit bigger and possibly having circumstances that would allow more tax benefits in a slighter more formal structure?

 

Email us if you have questions: info@pilatesinfo.co.za

 

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