1. Lesson 7 – Running your own business
Professionalism for group trainers

2. Learning objectives By the end of the lesson you will be able to:
Explain the requirements for the self-employed in the UK, to include:
Registration
Keeping business records
Completing a self-assessment tax return
Paying income tax
Business expenses
Describe the insurance requirements for being a self-employed individual
Explain the importance of self-promotion and marketing own brand for business success
Explain how to promote your business and services

3. Learning objectives By the end of the lesson you will be able to:
Explain the demands of running a successful business, to include:
Strategic planning (activities and finances)
Marketing
Regular reporting
Reviewing performance
Explain how to use social media profiles as a group trainer
Describe the benefits and risks of using social media platforms

4. Self-employed or employee?
Paired activity
In pairs, discuss and write down the advantages and disadvantages of running your own business.
Each pair to present their findings to the class and discuss them as a larger group.

5. Business owner or employee?
Advantages
Disadvantages
Flexible hours
Difficult to build a client base
Creative control
Set-up costs can be expensive
Opportunity to earn money from various sources
Income fluctuation
Control of place of work
No holiday or sick pay
Develop skills in other areas, e.g. marketing and finance
Responsible for all aspects of the business, not just teaching classes!
Shape the business in your own vision- sense of pride
Sometimes difficult to get loans and mortgages

6. HMRC responsibilities of being self-employed
Watch this video clip and answer the questions that follow- make sure you make notes as you go along!

7. How much attention did you pay……??1
What does HMRC stand for? 2
Why is it important to register as self-employed with HMRC (state two reasons)? 3
What is the cut-off date for registering as self-employed? 4
What will registering as self-employed allow you to do? 5
What does UTR stand for? 6
What class of National Insurance will you pay?

8. How much attention did you pay……??
1. What does HMRC stand for?
Her Majesties Revenue and Customs.
2. Why is it important to register as self-employed with HMRC (state two reasons)?
To make sure you pay the correct amount of income tax and national insurance.
3. What is the cut-off date for registering as self-employed?
5th October
4. What will registering as self-employed allow you to do?
Complete your tax returns/ self-assessment online.
5. What does UTR stand for?
Unique tax payer reference number
6. What class of National Insurance will you pay?
Class 2 A

9. Tax and self-assessment
The money that you are paid for teaching is a gross amount. Depending on how much you turn over in a year, not all of the income you receive is yours and you will
have to declare money that you owe as income tax.
The process is an annual self-assessment tax return and it is important that you put money aside each month to prepare for the income tax bill at the end of the year.

10. Tax and self-assessment
The amount of income tax you pay as a self-employed group trainer depends on how much you have made and the ‘allowable’ expenses you have incurred in the course of your business.
Business-related expenses, such as music purchased for use in classes, equipment, exercise clothing and marketing can be subtracted from your income when
calculating taxable profit.

11. Business plan- mini project
Individually, or in pairs- learners create a basic outline of a business plan, to include:
Brand name (colour scheme, idea for a logo, etc.)
Services offered and price points
Location/s
Money needed to set up, e.g. equipment, venue hire, uniform, marketing, etc.
Summary of strategy to build-up and maintain client base.
Projected income and expenditure for first 6 months
Each learner/ pair to present their business plan to the class and discuss them as a larger group.

12. Using social media Group discussion: Who uses social media?
Which platforms do you use?
What do you use them for?
What are the potential benefits and risks of using social media as a fitness professional?

13. Benefits and risks of using social media
Keep up to date with industry developments.
Free opportunity to promote yourself or your business.
Opportunities to seek employment (LinkedIn).
Risks
Information may not be reputable and/or biased.
Personal posts may not represent the views of all customers and could cause offence.
Excessive use in the workplace could reduce productivity and lead to disciplinary action.

14. Social media – task
Have a look at your last ten social media posts across all platforms and consider whether any of them have the potential to offend a customer if he/she were to see it.
Discuss the findings as a group with learners willing to disclose their posts to the class.

15. Learning review Can you now:
Describe how to communicate with dissatisfied customers?
Describe the skills required to deal with potentially volatile or unpleasant situations?
Identify responses and actions that may make problems worse?
Describe how to adapt their communication style, attitude and response to meet individual customer needs?
Describe how to inform customers when promises cannot kept as a result of unforeseen circumstances?
Explain how, when and to whom problems can be referred to?