Your Hourly Rate Isn’t What You Actually Earn: A Lesson for Fitness Business Owners
From rebuilding my website to dreaming about gluten-free cake in Spain, here's why the hours you don't charge for matter just as much as the ones you do.
If I got paid for every hour I worked in my business, I'd be flying to Spain every weekend just for gluten-free cake.
And if you've seen the photo of me sitting in a bakery in Spain with THREE gluten-free cakes in front of me, you'll understand exactly where my priorities lie.
But something happened this week that got me thinking about how we value our time as business owners.
And I think it's something every gym owner, Reformer Pilates studio owner and personal trainer needs to consider.
8 hours worked. £0 earned.
On Monday, I spent the entire day rebuilding my website.
8
hours of work
£0
earned from it that day
Now, obviously, I'm hoping the new website brings me clients in the future.
But on Monday, it wasn't generating income.
Yesterday, however, was completely different.
I spent the day completing month-end work for my accountancy clients. And because I know the value of the services I was delivering, I could put a figure against pretty much everything I completed.
And can I tell you something?
If that was my actual day rate, I'd be RICH! I'd be booking those flights to Spain without a second thought.
But unfortunately, that's not quite how running a business works.
The work you get paid for is only part of the story
Here's the thing.
Yesterday's work was only possible because of all the hours I've spent doing things that don't directly generate income.
All of it keeps my knowledge up to date and my business running, so I can actually deliver the services my clients pay me for.
None of those activities necessarily puts money in my bank account that day.
But without them, I wouldn't have a business. And I certainly wouldn't be able to deliver the work my clients pay me for.
Those hours aren't wasted.
They're part of what it takes to run a business.
It's exactly the same in the fitness industry
Let's say you're a personal trainer charging £50 for a one-hour session.
It's tempting to think you're earning £50 an hour.
But what about everything that happens outside that session?
- Writing client programmes
- Updating qualifications and completing CPD
- Marketing your services
- Speaking to potential clients
- Managing bookings
- Doing your accounts
- And all the other jobs that come with being self-employed
You're not just being paid for the hour you spend coaching someone.
You're charging for a service that takes time, knowledge and effort to deliver.
And those behind-the-scenes hours need to be considered when you're deciding what your time is worth.
Gym and studio owners need to think about this too
If you own a gym or Reformer Pilates studio, the same principle applies.
You might look at how much revenue a class generates and think it's performing brilliantly.
But the class itself is only one part of the picture.
The instructor's time
The cost of running the premises
Equipment and booking software
Marketing, admin and the time you spend managing it all
A fully booked timetable might look fantastic.
But that doesn't automatically mean your business is as profitable as you think.
Because revenue and profit are two very different things.
And understanding that difference is essential when you're trying to build a financially healthy business.
Your time is a business cost too
One of the biggest mistakes business owners can make is forgetting to put a value on their own time. Especially when they're doing everything themselves.
You might be working evenings, weekends and every spare minute you have.
Your business might be bringing in good money.
But if you're working twice as many hours as you expected, is it really delivering the return you want?
That doesn't mean every hour needs to generate income.
Some of the most valuable work you do will be the work that helps your business grow in the future. Just like rebuilding my website.
But it's important to understand how much time you're putting into your business and what you're getting back from it.
Because there's a big difference between being busy and building a profitable business.
Financial fitness is about understanding the whole picture
At Koyn Accountancy, I help fitness business owners look beyond their turnover and understand what's really happening financially. It's part of the Koyn Financial Fitness Method.
Clarity
Clear numbers. Clear decisions.
Confidence
Decisions backed by numbers.
Growth
Sustainable profits built to last.
Because understanding your numbers isn't just about knowing how much money comes into your business.
It's about understanding what it takes to earn that money.
And whether the business you're building is giving you the financial return and lifestyle you actually want.
So, what are you really earning?
I'm not suggesting you should stop spending time on marketing, learning or growing your business.
Quite the opposite. Those hours are essential.
But when you're setting your prices, planning your workload or thinking about expanding, don't forget about everything happening behind the scenes.
Because your hourly rate and what you actually earn per hour are two very different things.
And the sooner you understand that, the better equipped you'll be to make decisions about your business.
At Koyn, I help gym owners, Reformer Pilates studios, fitness studios and fitness professionals understand their numbers and plan for sustainable growth. If you're busy running your business but aren't sure whether you're making the money you should be, let's have a chat.
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