Welcome back to another episode of the Female Empowered podcast. I’m your host, Christa Gurka, and in this episode, I’m discussing healthy margins for business profitability. By the end of this episode, you should have a handle on what percentage of your business’s income should be going to certain expenses so that you can maintain healthy margins to keep your business growing.

Some of the key things I discuss in this episode are:

• Payroll Costs - Payroll is typically the largest expense in a service-based business. Industry experts recommend payroll costs should be between 30% and 45% of revenue.
• Rent - Rent should be less than 15% of your overall revenue, ideally around 10% to 12%. Consider market variations (e.g., urban vs. rural) and negotiate lease terms carefully.
• Marketing - Healthy marketing spend is between 5% and 10% of revenue. For growth phases, spending might be up to 20%. Always measure the return on investment (ROI) for your marketing efforts.
• Profit Margins - A healthy profit margin in the fitness industry is between 12% and 20%. New businesses should aim to break even in the first year.

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Together, let's empower each other to thrive in the fitness and wellness industry! If you're interested in being a guest on a future episode, reach out to us at Christa@pilatesinthegrove.com.