It’s not difficult to spot a gym with cash flow issues. All you have to do is look around: You might notice outdated exercise machines, insufficient space for the number of members, or workout tools that have seen better days. Members have surely complained but nothing has changed. Whatever the reason may be, the gym is unable to pay for new equipment or additional space when the need for it arises.
One possible explanation is the rising costs of exercise machines, which are always becoming more advanced. In order to stay competitive, gyms must continuously add and update equipment, including flat screen TVs. They must acquire new releases and replace smaller tools that are torn apart or simply nowhere to be found. Wear-and-tear is a consistent problem for gym equipment, and it’s safe to say that some members aren’t exactly looking out for the equipment’s appearance when they exercise.
Buying new equipment would probably be a lot easier were it not for the gym’s monthly payment system. Many gyms take in very little (if any) daily income, which makes it extremely difficult to save money for significant investments. And it’s not like gyms can get away with charging higher fees to pay for better equipment.
The fitness industry is also seasonal, with not one but two busy seasons. These drastic ebbs and flows in cash flow inhibit growth, and you can’t expect a strong busy season without extensive preparation in the months beforehand. Fundture Capital has many years of experience providing Small Business Loans for Gyms & Fitness Centers. We can provide all types of business lending products. Contact us today for your FREE business funding consultation!