Massage & Bodywork

July | August 2014

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28 m a s s a g e & b o d y w o r k j u l y / a u g u s t 2 0 1 4 best practices Test Your Practice IQ By Les Sweeney, NCTM, and Kristin Coverly, LMT 1. WHAT'S THE CURRENT BALANCE IN YOUR BUSINESS CHECKING ACCOUNT? If you know it within $50, 5 points; 2 extra points if you know it within $20. LES SWEENEY: A logical reaction here might be, "What's it to you?" Don't worry— Kristin and I aren't angling for a loan. Actually, the idea here is that as a company of one (in most cases), only you know your business. To be a successful entrepreneur, you must have a handle on the factors that determine your success. Being aware of your profi t and loss (P&L) status is critical: if your account is low, it's time to apply a little elbow grease toward fi lling your schedule to address the issue. On the other hand, what if you already beat your monthly goal? It might be OK to take the afternoon off. BUSINESS SIDE 2. WAS YOUR GROSS INCOME LAST MONTH HIGHER OR LOWER THAN THE MONTH BEFORE? An answer of either "Yes" or "No" is worth 5 points; "I don't know" or "What's so gross about my income?" are worth 0 points. KRISTIN COVERLY: Gross income is the total revenue you earn before any expenses or taxes are deducted. It's important to track how this income fl uctuates month to month. An isolated one-month decrease is one thing, but a continued decline is an oversized red fl ag that something needs to change. Put your Sherlock Holmes hat on and investigate the cause of the decrease: is your overall number of sessions down, is the amount you're receiving per session down (increased number of discounts, shorter session lengths), or both? Once you determine the cause of the decrease, you can create a plan of action. It's probably time to start a new marketing push, reach out to clients who haven't booked in a while, promote longer sessions, or add something new like a chair massage gig. Gross income = total revenue earned Net income = total revenue after expenses are deducted Your taxes are calculated on your net income fi gure, so keep track of all your expenses: they reduce the amount of tax you owe! Quiz time! Put away your phones and textbooks. All small business owners should know the answers to these questions off the top of their head. No looking at your neighbor's paper! TIP

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