What day of the month does your sports business start to pay you?

Divide your revenue for the previous month by the number of days in that month.  Use that number to divide it into your expenses for the previous month.  If it's less than 31, you were able to pay yourself.

Formula:
(month expenses ÷ (month revenue ÷ number of days in the month) + 1) = the first day of the month your business starts to pay you

Example:
($8,100 ÷ ($9,000 ÷ 30) + 1) = 28

You can use this figure as a bench mark for upcoming months or start to average each month of the year to account for seasonality.  The challenge now (business owner) is to reduce that number so you have more days in the month for your business to pay you.  That can only be done through a reduction in expenses or an increase of revenue.

Let's look at ways to impact your revenue:

1. Longer hours of operation per day or per week
2. Price increases
3. Upsell every time someone makes a purchase
4. Improve productivity
5. Promote high margin products and services
6. Add more products to your mix
7. Keep in contact with your top customers and give them a reason to come back to your location.

Finally, tell your customers and the market.  ADVERTISE!

Article sponsored by Hockey Science & Technology's retail solutions.

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