This is one question we get asked many, many times when speaking with gym owners.
The real question is, “Can I afford to hire another coach/trainer?”
Remember, one of the Profit First mottos – “When in Doubt, Open an Account.”
That’s right, adding another account can help you answer this question.
First, determine how much you’d like to pay this new employee and the total cost including taxes and insurance. Then, figure out how much that would be per allocation period. Now, create an account and begin transferring that amount into the new account from your operating expense account on your allocation day.
This allows you to feel the pain of that new hire before you actually make the leap and commit to a specific individual. If you find you need the money in your operating account and need to transfer it back from the new account, you can without missing your payroll, but this also means you are not yet ready to hire another coach.
If, however, you find you’re still able to meet all of your current operating expense obligations AND save a month or two worth of this new payroll expense CONGRATULATIONS – you are more than prepared to make this new hire AND you’ll have some savings to back it up!
Not sure how much it’s going to cost you to hire this new person, let us know and we can help.