How to Set Up a Pilates Business in the UK (Part 2)
Welcome back, everyone. Setting up a Pilates business, just like any other business is not easy. So today, we have a great FREE goody waiting for you today that will help you set up a smooth running small business. So keep on reading!
In our last post, we focused on the necessities and basics of setting up a Pilates business.
We’re going to talk about something that can make or break ANY business…
CASH FLOW and ACCOUNTS…
My suggestion, if you have not already, is to watch the video as the rest of the blog will make much more sense!
And here’s my little surprise for you….
I am sharing my very own cash flow spreadsheet that I use AND the accounts spreadsheet that I used when I started.
Click the above link to download the spreadsheet directly to your computer! It is very basic, but it’s all you need to get started and if your brain works anything like mine… it NEEDS to be simple so that you can actually do it and be consistent.
Rightio, let’s get started!
There are 4 tabs at the bottom. Cash flow / Income / Expenses / Annual.
Cash flow I will go through last.
Income – as it says on the tin. Note all your income that you have made on a certain day. It’s up to you if you want to put a note in the comments as to how you received that income. Was it separate classes or private clients. You don’t really need to itemise it, but you can if you want to.
The monthly total is going to be put into your ANNUAL SHEET. (There are formulas to calculate the TOTALS do don’t delete the TOTAL lines)
The Expenses Sheet will be exactly the same. You might find you have two or three transactions on one day so you’ll need to have a separate row for each transaction. At the end of the month go through your bank statement and marry them up with your receipts. This is called reconciling. Your’e making sure that all transactions have been accounted for. I pay for EVERYTHING with a card because cash is a pain and I need to keep a separate record for it. I like to have the actual transaction on my bank account.
Again once the month is done – add your totals to the ANNUAL SHEET. (There are formulas to calculate the TOTALS do don’t delete the TOTAL lines)
In the ANNUAL SHEET that will then show you your annual income & expenses and then the totals and that’s what the accountant will then use to do your taxes. (There are formulas to calculate the TOTALS do don’t delete the TOTAL lines)
Now the juicy one. CASH FLOW. This can be the downfall of ANY business. If you do not have cash flow, for example…. money to pay your bills you will land up in big trouble and I know this from experience.
Have a look at the spreadsheet as explanations / notes are on there and it will make more sense if you look at the spreadsheet rather than read it here.
Basically this was a great gift from my brother, who was helping my sort out my cash flow issue. I’d get to half way though the month and have no money, even though memberships were being paid. Because my online booking and payment system is American there’s a 7 day delay between clients paying and me actually receiving the money and this was leaving me in shit street.
It’s very stressful when you haven’t got money coming in and of course being self employed, meant I didn’t have any money coming into pay the mortgage either – so by using this cash flow chart it really highlighted where I would be going below a £0 balance.
The buffer system has been an absolute lifesaver and now I can go to sleep without worrying about anything!
MONEY is a funny topic….
People don’t like to talk about it – so people are really not educated – some people (like my brother) are very knowledgeable and learn how to work with money and other people (like me) learn how to spend it HA HA..
Seriously it’s nothing to be embarrassed about – they don’t teach money management in schools or college. If your’e one of the unlucky ones like me… you need to find a way to learn about money management.
My best advice about money if you don’t know how to work with money – is get a money coach rather than a financial adviser. They will tell you what to do with your money. You want a coach who will TEACH you how to manage your money. Fortunately for me. I have my brother. Otherwise, no matter how much you earn you will always be chasing your tail.
Trust me. We were earning over £50k and we still had no money…. it was crazy! All because I wasn’t able to manage money properly. With the help of my brother things have changed and I can now go to sleep at night and not worry about money or paying the bills and I know there’s some left in the bank! (which is always helpful).
The cash flow forecast will help you with this 🙂 Even if you are a great money manager this spreadsheet will be a great visual aid where you can quickly check how things are going.
Again, there’s quite a lot in this email – I do hope it’s helped and as always, do get in touch for more info and if your’e interested in our teacher training we have a special offer coming up in our next blog 🙂
From my heart space to your heart space
Lots of Love from Newton Abbot Devon
Tanja FOY – Profit With Pilates
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