For gyms and fitness studios, having secure finances and looking after the bottom line is your priority, more so now than ever. This means making sure that your cash flow is strong and your money goes further, to ensure you can carry on trading and making a profit, whilst keeping costs down. As we all know, this isn’t as easy as it sounds, and unexpected circumstances often dictate what comes in and goes out of your business. This makes it your priority as a gym owner to balance the books and make smart decisions for your business.
We work with business owners across the leisure industry who want to increase their revenue and memberships, keep costs down and keep members happy, which can be a tough balancing act, however the benefits of financing or leasing, whether it’s a treadmill, squat rack or loan, can all contribute to achieving these aims. Take a look at some good reasons to use finance for your gym.
Cash is King
It’s important to have money in the bank for rainy days, emergencies and unexpected events. Cash is king and this is something to live by. By using finance for your next piece of equipment, to invest or to improve your fitness studio or gym, you can keep the cash in your bank and keep your cash flow strong. Regular monthly payments are more manageable and allow you to maintain a healthy bank balance, ensuring your business is strong in the long term and can operate as you need it to. This means you can take your business to the next level, without worrying about your bottom line.
Financing your new asset or piece of equipment, or taking a loan to secure that piece of kit, gives you the ability to afford the best quality. Your gym relies on memberships, and this means your members being able to achieve their fitness goals, whatever they may be, by having the high quality equipment, that is up-to-date, whilst also having enough machines for everyone to use. By using finance upgrade your gym to have the latest kit and plenty of it, without restrictions. This allows you to improve quality without touching your cash reserves or having to save up, as this could end up costing your gym revenue in the long-term.
Using finance to secure new, better quality or more equipment can help to increase the range of products in your gym or increase capacity, and with more on offer, you may be able to charge more per member or increase number of members, which will lead to increased revenue and profit per member. By utilising different means of finance you can take your gym, fitness or PT studio to the next level, offering great facilities catering to everyone’s fitness needs and goals, this will allow you to retain existing members and attract new ones. As you know, this can’t be done standing still, you need to keep equipment up to date and efficient to ensure members feel they have value for money and want to return.
This also means that you can decrease costs, by having higher quality and more efficient equipment, with lower running and maintenance costs, attracting and retaining members. Your profit margins will be improved, as costs will decrease as a result of having reliable equipment, and revenue is increased through the increased membership figures driven by the quality of your facilities. The better your kit, the longer it lasts and the less it costs you in maintenance or replacements in the long run. Overall this will allow you to maintain high quality in the long-term whilst operating at a profit, which we know is the number one rule.
These are just four ways finance can help your business, helping you to make money, save money, spend money sensibly whilst keeping money too. It gives you unlimited options to grow and improve your business, keep you financially in the black and keep your customers happy.