Business decisions, especially big ones, should be backed by more than just a gut feeling.
In order to truly make the best decisions for your sports academy, you must have a strong pulse on your finances. This will allow you to better analyze the health of your business, and consequently take action.
So, how can you start effectively tracking your sports academy finances? It all boils down to these 3 steps:
- Create a budget
- Track your outcomes
- Make adjustments
Before we begin, it’s important to note that you should have a good financial structure to start building on. Ready to go? Let’s dive in!
Step 1: Create a budget for your sports academy
Before you can track your financial progress, you need to know where you’re starting and what you’re working with. An accurate sports business budget may be one of the most important plays in your playbook.
When creating your sports academy’s budget, be sure to take into account all of your revenue opportunities as well as your expenses. Once you have a comprehensive budget in place, you’ll be able to analyze your finances, and ultimately make decisions that lead to growth.
We know that organizing a budget may not be at the top of your list in terms of what you want to be spending your time on. But, it’s one of the most critical tools you can invest in. Download Upper Hand’s free budget template, which we designed specifically for sports training academies and facilities, to get started.
Step 2: Track your business outcomes
Once you know how much you spend, and how much you need to make in order to grow, you can start to analyze your budget and track your results against your goals. After all, there should be more to your business plan than simply knowing whether or not you’re breaking even.
Who has made payments?
Payment collection is a key element when it comes to managing accurate finances. And, it can be difficult if you are manually recording these payments as you collect them on event day. Be sure to implement a system that helps you stay on top of your hard-earned revenue. Avoid the awkward conversations about money, or having to track down missing payments for weeks. If you are collecting paper athlete registration forms, be sure to include a section for payment collection details. Or, consider taking your registration process online with athlete registration software, which will help you ensure client transactions are accurately processed and recorded.
Which events are your top performers?
What event type is bringing in the most revenue for your sports academy? Which are the least successful type of training? Once you know what type of training is generating the most revenue, you can make better decisions about where to allocate your time and resources.
For example, if your clinics are consistently filled up, but your private lessons aren’t bringing in much income, you may consider organizing additional clinics throughout the year. Or, perhaps you try to boost your marketing of your private lessons to grow revenue in that segment.
How are your coaches impacting your bottom line?
When it comes to tracking your sports academy finances, a comprehensive budget will also give you insights into the performance of your team of staff. See how each individual coach or trainer is impacting your bottom line by comparing the revenue from their lessons or classes.
How do your payment options benefit clients?
Do you see a positive correlation between different payment plan options and the number of returning clients? If you see a lot of repeat clients, you may consider implementing auto-renewing memberships. Or, if you offer a lot of higher-priced offerings, you may consider long term payment plans.
How are my discounts and special offers performing?
It can be tempting to assume that discount codes will bring in new customers or encourage additional spending. But, you should track the use of these codes. Are your coupon codes being utilized by new clients, thus growing your sports academy. Or, are they primarily utilized by current/ repeat clients? If it’s the latter, pay attention to the effect this is having on your sports academy. Are these special offers cross-promotional, encouraging parents to register their athletes for additional training or events? Or are they merely cutting back on your profits?
Related: 3 holiday promotion ideas you can steal today!
Step 3: Make adjustments to your game plan
Just as a coach makes adjustments to their game plan at half time, you must make adjustments to your business plan based on the outcomes you see. Once you’ve created your budget and analyzed your results, you must now take action.
The purpose of training your sports academy finances is to make smarter, more informed decisions based on your results. Don’t be afraid to make some strategy changes. Tracking your results and trends will allow for a more accurate financial plan and budget in the future.
Putting it all together
It’s time your sports business started effectively tracking your finances with an accurate budget, key tracking tips and overall evaluation strategies that lead to effective results and growth. At Upper Hand, we’re here to help. Take control of your finances and reporting with powerful youth sports software that will help you give your business a competitive edge.
