#4: The Law of Numbers
Record keeping is not enough. You must set your performance standards and guidelines in advance of
action, and then use the numbers to keep score. Operate within your percentage guidelines,
regardless of your income level.
Much of what goes on in your club is unable to be quantified or measured in black and white
numbers. This can make the true measurement of progress or business successes and failures
difficult . There are, however, many indicators that ARE measurable, providing the necessary
management checkpoints. The following list will gauge how well you’re playing the Law of Numbers
game. Important: All numbers must be calculated accurately and in a timely fashion. Here is a list
of essentials—everything else is a distant second.
• Monthly profit & loss statement.
• Member retention statistics.
• Cash-flow numbers.
• Membership sales and member retention
• Member usage patterns.
• Programming costs, expenses and utilization.
• Operating expenses as a percent of revenues.
• EBITDA
These numbers are all valid methods of measuring progress against predetermined goals. An effective,
simple way of answering the basic question,
HOW ARE WE DOING?
