From Coach To Business

We dive into the question of when you should take the leap from working for others to starting your own business.  We also outline the rest of the season and share our origin stories. If you're enjoying the show and want a breakdown of many of the strategies, tips and tactics we recommend - as well as some of the recommendations from our expert guests - head over to www.fromcoachtobusiness.com [http://fromcoachtobusiness.com] to download our cheat sheet on starting and growing your fitness business. [00:39] Todd and Brandon’s experiences owning brick and mortar CrossFit gyms as well as online coaching - and our frustration with the random tactical advice as well as the head in the clouds “inspirational” content. Structure of the season: Nuts and bolts, Sales and marketing, Operations - and when should [09:57] When should I “take the plunge” and start my own business? What are Todd and Brandon’s stories about starting their own fitness business journey? [26:26] Shady leases, shady landlords and crazy, chaotic environments and sacrificing your own health and wellness for the success of your business [32:43] How should someone decide when to “take the plunge”? Should you just “go for it?” What is the opportunity cost of starting your business? What is the opportunity cost of not starting business? [40:07] Do you know what your burn rate is? Do you know what your runway is? “Burn the boats” isn’t necessarily great advice. And - do you actually like running a fitness business?

Finding your market isn't about having a complicated business plan or doing a bunch of demographic research - it's about understanding who is paying for your services and where they came from. Then, once you understand that, you can try to find more people like that and tailor your services so that you are helping your clients solve actual, burning problems. If you're enjoying the show and want a breakdown of many of the strategies, tips and tactics we recommend - as well as some of the recommendations from our expert guests - head over to www.fromcoachtobusiness.com [http://fromcoachtobusiness.com/] to download our cheat sheet on starting and growing your fitness business. [00:39] What are you going to sell? And who are you going to sell to? How do you actually get your first clients? [08:35] What should coaches be thinking about in order to start their business? How do you actually solve a real problem for people? Are you noticing any patterns that are showing up in the people who you are working with? [19:28] Do people need a business plan? Why would you actually create a business plan? Should you affiliate with an organization like CrossFit - or open a franchise? [28:34] How do you create your offer? What do you charge people? How do you deal with the negative emotions surrounding money relative to what you charge for your services? [38:07] How high touch is your service? Do you want to have a lot of clients paying a lower rate? Do you want to have fewer clients paying a higher rate?

It's time to lawyer up. We have Todd's business partner Kevin Slaughter on this episode. Kevin is a partner and Levenfeld Perkins in Chicago, and he gives us answers to many of the common questions about employees vs contractors, if it's ok to offer nutrition coaching, and whether or not waivers actually do anything. We also lay out many of the things that business owners need to think about when getting started. Even though you may think that you will always be best friends with your partners, that you will never need to raise money, and that you will always want to own a fitness business, things change. And, if you don't have a solid corporate structure in place with a clear operating agreement, you can find yourself in a nightmare scenario. Check out more from Kevin, Levenfeld Perkins and South Loop Strength & Conditioning here: www.lplegal.com [https://www.lplegal.com/] | www.southloopsc.com [http://www.southloopsc.com] | @southloopsc [https://www.instagram.com/southloopsc/] If you're enjoying the show and want a breakdown of many of the strategies, tips and tactics we recommend - as well as some of the recommendations from our expert guests - head over to www.fromcoachtobusiness.com [http://fromcoachtobusiness.com/] to download our cheat sheet on starting and growing your fitness business. [00:39] What kind of corporate entity should you create? A sole proprietorship? An LLC? An S corp? [06:44] Brandon’s story of selling his CrossFit gym and Todd and Kevin’s story of buying out a partner. Why does an operating agreement matter? [13:12] What about using LegalZoom or downloading an operating agreement off of the internet? Also, don’t just let your friend who is a real estate lawyer draft your operating agreement. [16:12] How should a business think about taking on funding? How is equity split amongst people who are contributing to the business? Even if you don’t think you will ever need to raise money and you plan on bootstrapping, you will probably still have times when you will take on debt to cover cash flow issues. [24:14] Do you need insurance? Do you need waivers? Do you need membership agreements? [37:19] Can you provide nutrition coaching? [40:06] Are coaches employees or contractors? [44:25] Should I trademark my gym name or my logo? [49:03] How should partners be paid? What if one partner is working full time on the business and another is not?

Accounting can be opaque and confusing: Are coaches employees or contractors? Should you form an LLC or another type of corporation? What if you have partners? And what the heck is a "pass-through" entity anyway? It's ok if you don't know the answers to these questions, but - if you just push them off and say you'll "figure it out" later - you can put yourself in a pretty bad position. We talk with Joe Morad from Miller Cooper to understand what the key things are that a fitness business owner needs to set up from the start so that they have a solid system surrounding the finances for their business. Check out more from Joe and Miller Cooper here: www.millercooper.com [https://millercooper.com/] If you're enjoying the show and want a breakdown of many of the strategies, tips and tactics we recommend - as well as some of the recommendations from our expert guests - head over to www.fromcoachtobusiness.com [http://fromcoachtobusiness.com/] to download our cheat sheet on starting and growing your fitness business. [00:39] The bad way to track finances in a CrossFit gym: on a public whiteboard. Get started anyhow - but be aware that you will probably have to change what you’re doing. [06:52] Why you should create a business bank account so you can separate your business and personal finances. And why you should plan as if you are going to raise or borrow money at some point. [14:52] How to set up an accounting system. Does it need to Quickbooks? [21:58] Do you need an accountant? Or can you handle your books on your own? [27:50] What actually counts as a deductible business expense? [32:22] Are coaches employees or contractors? [42:00] What’s the difference between a taxable entity vs a legal entity? When do taxes pass through? When does the corporate entity pay its own taxes? [46:44] How does sales tax work? [52:01] How should you pay yourself as a business owner? [01:01:25] What should you look for if you’re trying to hire an accountant?

Marketing is the juicy stuff, right? Most fitness business owners need to "get people in the door," and having a solid marketing strategy is a surefire way to do so. But, it's not just about Facebook advertising or having sick professional photos on your Instagram. How should you think about what marketing strategies to pursue? And, how do you align your marketing strategy with the product you're delivering in your business? If you're enjoying the show and want a breakdown of many of the strategies, tips and tactics we recommend - as well as some of the recommendations from our expert guests - head over to www.fromcoachtobusiness.com [http://fromcoachtobusiness.com/] to download our cheat sheet on starting and growing your fitness business. [00:39] Marketing isn’t about tricking people. Nor is it about a bunch of random tactics. It’s about having a strategy to communicate to potential clients [06:58] Why different strategies are appropriate for businesses at different scales - and why the things that you some businesses doing may not be appropriate for yours. [15:32] It can be tough to tell what’s working when you don’t know what it feels like when something works. It’s important to track your numbers so you can lean into things that are starting to get traction. [24:40] What is a lead funnel? Where are your customers coming to you in their journey to solve their problems? [41:21] Recognize that what you see other businesses doing may not be applicable to you - there’s a good chance that they’re playing a different game than you or that they’re also just trying random tactics and are successful in spite of themselves