When you perfect Laws 1 through 7, your client retention, average client value, dollars per coach hour and total coach pay will be high enough that you will put your business in a place to earn up to 20 percent EBITA (earnings before interest taxes, and amortization). 

More details: This profit is calculated after you pay every role in the business. Whether you are doing those roles or someone else is, everything needs to be paid for before the real profit number is seen.

Other roles include: general manager, marketing manager and head coach. (Those 3 roles should add up to 4-8% of gross revenue TOTAL.)

Note: A fully profitable business will need at least three full-time (Associate level) coaches (possibly including the owner) who each generate $10,000+ revenue a month. 

Tip: Eventually as the owner you might remove yourself from on-floor coaching, but as you're developing your coaches, it’s useful to have a safety net of your own book of clients to ensure you (the business owner) are getting paid fairly while still having the means to pay your coaches and pay your other bills.

Another benefit of maintaining a book of clients for yourself is that you remain a part of your community on a daily basis. 

Think of this also as a way to oversee your business and keep your finger on the pulse of your team members as they grow.

Ultimately, the better you are at developing great coaches who are financially successful, the better off your business will be. 


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