There’s that old saying: “That which is not tracked is not improved.” If we can’t track and measure something, we can’t improve it.
It’s not the sexy part of business. The sexy part of business is when I run a Facebook ad and people comment and like it.
Anyways, you need KPIs to track your personal training business.
What’s that even mean? A KPI, for those who don’t know, is a key performance indicator.
As a CEO, I have a key performance indicator: If I’m not in front of enough traffic, radio shows, and podcasts, if I’m not getting the traffic I need, my sales team can’t convert that traffic into prospects and leads, and then paying clients and franchisees.
They have their own KPIs too. Each sales rep has to turn at least eight people into franchisees per month.
When they don’t hit those KPIs, it’s not that they’re fired. When I don’t hit those KPIs it’s not that I’m fired. Instead, we go right into problem solving.
What can we do about it?
Live for Serotonin, not Dopamine
Seth Godin wrote a great email about that recently. He asks the question: do you live for dopamines, or do you live for serotonin?
Dopamine is a hormone the body releases that give you an immediate high and it feels good. It’s short-term.
But long-term success generates serotonin. Serotonin is what gives you peace of mind, better sleep, and stress reduction.
Let’s say I run a Facebook ad, people like it, comment on it, they say how awesome Fit Body Boot Camp is…
Great. My dopamines are up. But if that’s not getting me enough leads to convert into franchisees, then what am I really doing?
KPIs Are Serotonin-Driven
KPIs and systems are serotonin-driven. Getting on a podcast, that’s a shot of dopamine.
But I also know as soon as that ends, I might go into a five hour meeting with a private coaching client. That’s serotonin.
That long-term serotonin high that I get when I see him and his wife scale their business in the years to come, that’s better for my body and my psyche.
And so KPIs are just that. If we don’t measure through KPIs, we end up running our business by the seat of our pants.
In fact, I asked someone I worked with in the past, “Send me your P&L report.” He does $44,000 a month out of his gym. That’s not bad.
See, $41,000 of it is expenses. $3,000 of it is what he takes home. Revenue feeds the ego. Profit feeds the family.
So what do I get when I ask, “Well what are your key performance indicators, and what are the metrics? Do you know what your payroll is? What percentage of your revenue is payroll?”
“I don’t know.”
Whereas I already know what we need to trim away when I take a look at his P&L. Maybe he needs to talk to team members who are grossly overpaid. Maybe he needs to restructure his marketing to get a higher ROI.
It’s not sexy, but it’s what will improve his business.
Always track those KPIs and you’ll level up faster than ever.
Committed to your success,