Not all studio owners have a partner at home with a full-time job that can take care of the bills for a while if something unfortunate should happen to you, like an unfortunate injury or illness. Here are some things to consider.
Are you saving enough
Like an employee that has a full-time job, it’s highly recommended that you have six months of savings set aside to cover living expenses should something unfortunate happen. This savings can also come in handy in a downturn or slow time for your business. Summer months are slow for a lot of people, this could keep you from raiding your credit cards while helping you to maintain your lifestyle.
Get disability insurance
What happens to you, your family and your business if you get unexpectedly sick or hurt? If you do not have disability insurance from your spouse or do not have enough coverage you should look to purchase enough to cover your living expenses for a few years. Get at least enough to cover 60% of your current take home pay. I read somewhere recently that a person can get a $700,000, 20 year disability insurance for about $145 per month.
Work as a sub
I know, this defeats the purpose of starting your own business in the first place 🙂 Well, hear me out. Most studio owners are also teachers or former teachers. Most other studios and local gyms are always looking for subs. If you can work somewhere periodically this can give you some additional income. If things get slow you can request to help out more and teach more classes. This could help keep you afloat for a while. Just be careful of the no compete clauses.
What are you doing to financially protect yourself, business and family? If you have other great ways please share with us 🙂