There’s more to a gym than just great equipment, workout space, and qualified coaches. Yes, these are very essential parts of a gym, but the financial aspect of the gym is also important. At the end of the day, you are running a business and finance and accounting are a crucial part of any business. If these two areas are not taken care of, then you won’t have a business to run, will you? These are financial management tips for a gym business. Take a look.
1. Plan your prices strategically
Financial planning is an integral part of running a business. You have to set realistic prices if you want your gym business to stay afloat. You have to make projections for your gym’s revenue. Whatever output you get will only be as good as your input.
If you have a larger facility, then a monthly unlimited plan may work. But if you have a small gym, this won’t make sense. Also do not go overboard on giving members discounts when you launch your gym. It may bring problems once you set normal prices.
2. Keep your team motivated
Your team will be responsible for bringing new business, so you should always keep them motivated. Give them incentives to keep bringing in new members. You can even come up with a referral program or a give out rewards for bringing in new business. They bring in new business and get rewarded for doing so. Everybody wins.
3. Streamline your sales cycle
Make it easy for clients to buy gym memberships whether they are doing it at the front desk of your gym, or on your website. You should also keep the paperwork simple and straightforward. Don’t make people jump over hoops just to become members.
Keep it short and simple and avoid unnecessary paperwork. The contracts should go straight to the point because no one has time to go through mountains of paperwork just to get a gym membership.
4. Diversify products and services
Gym memberships are your main source of income. But this should not be all. Come up with ways to earn extra income. Try selling products that gym members will need. You can sell supplements, gym clothes, energy drinks and so much more. If you can manage to have your logo on the gym clothes, the better. You’ll be marketing your gym even more and hopefully, bring in more members.
You can also sell services. You can offer specialized personal training and classes and earn extra coins. The bottom line is, if you have extra services, you will cater to a wider group of people and make extra income while at it.
5. Maximize your space
Ensure that every space is properly used to bring in as much money as possible. You can turn extra space into personal training rooms or a retail shop to sell your products. You don’t need too big locker rooms or lounges. That extra space can be used to bring in more value to the gym.
A lot of businesses also spend a lot of money on energy when they can come up with ways to reduce energy consumption. For example, you can cut done your lighting costs by switching to LED lights instead of incandescent lights. LED lights consume way lesser energy than their counterparts. You might think that switching to LED lights is something insignificant, but it can be a game-changer. You’ll end up saving quite a bit of money.
6. Use quality gym equipment
You can have the coolest space, the best trainers, and the best software any gym has. But if you don’t have the right gym equipment, then what’s the point? You can’t run a gym without appropriate gym equipment. If you can’t afford to get your equipment yet, then some establishments offer finance for gym equipment.
If you do your budget and financial projections and discover that you can’t upgrade or buy new gym equipment, then try getting finance for gym equipment. You can try hire purchase, leasing, or getting funds to buy your own equipment.
Good quality gym equipment can help bring in business. No one wants to go to a gym with poor quality equipment.