HALO Academy 2 Minute Financial Drill-Expenses
Every Wednesday we release our all new "HALO Academy: 2 Minute Drill" by Integrity Square Founder & HALO Talks host, Pete Moore on everything you need to know for financial literacy, unit economics, legal documents used for M&A and capital raises, capital sources you can access, understanding how financings are structured, valuation metrics and parameters, and what you need to know about your own business before engaging in cap raises and/or a potential sale.
If you missed our email about this, you can re-read it here: https://mailchi.mp/9567da51c0ce/2025programschedule
======================================================
RESOURCES
- https://www.integritysq.com
- https://www.halotalks.com
- https://www.thehaloacademy.com =====================================================
ABOUT YOUR INSTRUCTOR
Pete is the Founder, Managing Partner and Chief Dream Architect at Integrity Square ("ISQ"), a leading boutique financial advisory firm focused on the $4.7T Health, Active Lifestyle, Outdoor ("HALO") sector. Since founding ISQ in 2010, the firm has played an active advisory role in 100+ mergers & acquisitions, private placements and advisory assignments across North America.
Pete Moore and his team have also invested in passionate entrepreneurs at HigherDOSE, XTEND, and Promotion Vault. ISQ's media and "live education" properties include HALO Talks, the leading B2B podcast in the sector, Time To Win Again, and the HALO Academy, an Executive Education Bootcamp Series.
Prior to ISQ, Pete was Head of the Active Lifestyle & Wellness Group at Sagent Advisors (2003-2010.) Prior to 2003, Pete was co-founder of FitnessInsite, a SasS sales management platform with 1500+ clients (based in AZ.) At FitnessInsite, Pete invested his personal capital, leveraged his credit cards and learned what it takes to manage a startup.
Pete built his business and financial acumen on top of the foundation laid at three critical positions early in his career: Senior Associate at Brockway Moran & Partners, the private equity owner of Gold's Gym International, Inc; worked as an Associate at Donaldson, Lufkin & Jenrette; and an Analyst at Chase Securities. (Now JP Morgan.)
ISQ saw a need for a deeper & more useful level of education in the HALO sector. In response, we launched the HALO Talks podcast, with 500+ completed interviews and over 120,000 downloads. HALO Talks has become a "must listen" for anyone working or investing in the sector.
Pete graduated from Emory University (BBA, 1994) and received his MBA from Harvard Business School (1999.) While at HBS, he co-founded IRON PLANET, the leading B2B auction site for used heavy equipment, which was sold to Ritchie Bros for $758 million. His hobbies include: Football, basketball, tennis, podcasting, amateur ventriloquism, pro bono DJ and fitness enthusiast.
00:00:00,480 --> 00:00:04,240
This is Pete Moore, Halo Academy. We are here for another
2
00:00:04,240 --> 00:00:08,080
two minute drill. We're gonna talk about expenses. The prior
3
00:00:08,080 --> 00:00:11,920
one, we just talked about revenue. That's all the money that is coming into your
4
00:00:11,920 --> 00:00:15,715
business. Now we gotta talk about what does it cost to generate
5
00:00:15,715 --> 00:00:19,555
that revenue. Alright. The first thing I need is I need people. Right? So I
6
00:00:19,555 --> 00:00:23,314
got expenses on payroll and labor. The next thing I gotta
7
00:00:23,314 --> 00:00:26,835
do is I gotta find out a place where everyone can work. If I'm a
8
00:00:26,835 --> 00:00:30,320
health club operator, I'm paying rent. I'm also paying something
9
00:00:30,320 --> 00:00:34,020
called CAM, which is my common area charges
10
00:00:34,239 --> 00:00:38,000
that are gonna show up on maintenance back to the landlord on
11
00:00:38,000 --> 00:00:41,680
a monthly or annual basis. Okay? So I've got my total
12
00:00:41,680 --> 00:00:45,425
rent. I've got my total lease payments. After that,
13
00:00:45,425 --> 00:00:49,045
I've got utilities. Gotta turn on the water, gotta put on the electricity,
14
00:00:49,504 --> 00:00:53,045
and I gotta make sure that I have this place staffed properly.
15
00:00:53,504 --> 00:00:57,149
And I also need to make sure that I got HVAC units, which
16
00:00:57,149 --> 00:01:00,989
is heating, ventilation, air conditioning. There you
17
00:01:00,989 --> 00:01:04,670
go. We gotta make sure this place is well stocked and
18
00:01:04,670 --> 00:01:08,509
presentable for all of our members. What do we have to do after that? Well,
19
00:01:08,509 --> 00:01:11,810
we've got supplies. We got a pro shop. We've got equipment.
20
00:01:12,095 --> 00:01:15,795
Okay? We've got TRX. We've got supplies that break down
21
00:01:15,854 --> 00:01:19,455
and things that we need to fix. All these things go into our
22
00:01:19,455 --> 00:01:23,075
expenses. I've got some treadmills down. That's a maintenance
23
00:01:23,295 --> 00:01:27,109
expense. Okay? I've got trucks that are going around and
24
00:01:27,109 --> 00:01:30,729
they are dropping off supplements. Okay? They're moving equipment around.
25
00:01:30,869 --> 00:01:34,630
These are all going into my expenses that allow me to generate
26
00:01:34,630 --> 00:01:38,149
the revenue. In addition, you're the owner of the business. You are
27
00:01:38,149 --> 00:01:41,815
entitled to get paid as the owner of the business. Therefore,
28
00:01:41,955 --> 00:01:45,715
I've got owner salary. I've got guaranteed payments. I've
29
00:01:45,715 --> 00:01:49,475
also got other people in my company that may be related to
30
00:01:49,475 --> 00:01:53,315
me. All those people are expenses of the business and will help
31
00:01:53,315 --> 00:01:56,286
us generate what is called operating profit.