The Only KPI That Matters

There are a lot of things we can track when it comes to the numbers.

I’ve seen businesses get so sophisticated they forget to track the only KPI that really matters.

If you want to build wealth outside your gym or business, you have to start by making sure your business pays you.

In simple terms, we’re going to talk about:

How to know if your business is healthy or sick

Why “profit” is often misunderstood

What to do if you’re not paying yourself

And most importantly, the only KPI that matters: Net Owner Benefit

Is Your Business Healthy or Sick?

Let’s cut to it:

A business that can’t pay the owner is sick and it’s not worth much.

Imagine trying to sell your business. How much would a buyer pay if the business couldn’t even afford to pay them a market-based wage? Let alone provide any actual profit.

One of the primary systems I look for in a financially sound business is the owner taking a consistent paycheck. It doesn’t matter whether it’s a salary or an owner's draw — what matters is that it’s steady and intentional, not random or reactive.

So What Should You Pay Yourself?

There’s no one-size-fits-all answer. But here are two ways to approach it:

Option 1: Pay yourself enough to live.

This varies. If your partner also contributes to the household, that number may be lower. If you have five kids like I do, it may need to be higher. The key is making sure your personal financial needs aren’t choking the business. You still need margin for taxes, debt payoff. reinvestment, and growth.

Option 2: Pay yourself a market wage.

What would you pay someone else to do your job? Especially if you’re still deep in day-to-day operations. That’s a good benchmark to use for what your business should be paying you.

At the very least, I like to see owners start with a modest, consistent amount then build from there. Add in things like savings, vacation funds, and some margin for fun.

The Confusion Over Profit

This is where gym owners often get tripped up.

Let’s say two owners each run a $100K business…

• Gym Owner 1 files taxes as a Schedule C. Revenue is $100K. Expenses are $80K. So the business shows a $20K profit and that’s what they’re taxed on.

• Gym Owner 2 files as an S-Corp and takes a $40K salary. That salary counts as an expense. So now it looks like their profit is only $20K but they’ve actually taken home $60K ($40K salary + $20K profit distribution).

See the issue?

Unless you understand how the owner is paid and whether their compensation is counted as an expense you can’t make a fair comparison.

That’s why I use one key metric for financial health.

The Real KPI: Net Owner Benefit

The one number that tells the truth?

👉 Net Owner Benefit

That includes:

• Salary or draws

• Any other profit (it may come in the form of a distribution)

• Any legitimate personal expenses run through the business

• Owner perks like insurance, travel, or vehicle use

This is the total financial value the business is providing to you.

It’s the KPI that matters most because it reflects what you’re actually getting from all the work you’re putting in. Not just what’s on the P&L but what ends up in your life.

What If You Can’t Pay Yourself Yet?

Let’s be real: many owners go months (or years) without paying themselves. If that’s you, you’re not alone.

But let’s also be clear: that’s not sustainable.

It doesn’t mean you’re failing. It just means your business is still in the ICU phase. It’s surviving, but not healthy yet.

Here’s what to do:

• Acknowledge it. Even just recognizing the sacrifice can help you stay motivated and avoid burnout.

• Track it. Set a small, attainable goal (like $250/month) and monitor it just like any other business metric.

• Make it a priority. Paying yourself shouldn’t come after all the bills are paid. It needs to be part of the plan.

• Simplify or adjust. If you can’t pay yourself and cover business costs, it may be time to raise prices, cut costs, or restructure your offer.

The sooner you get intentional about your own compensation, the sooner your business starts working for you and not the other way around.

Bottom Line

You can track leads, conversions, churn rate, profit margin but if you’re not paying yourself consistently and intentionally, those metrics are just noise.

So let me ask you:

Are you making what you should in net owner benefit?

If not, it’s time to get honest… and get a plan.

You deserve to build a business that supports your life — not one that drains it.

I’d love to help you make that happen like I have so many others. Schedule a call here and let’s talk!