The Ultimate Guide to Gym Funding

With 2021 here, there has been great headway made towards ending the pandemic. Experts estimate that this summer could be when our first return to normalcy happens, but what does that mean for your business?

Consumers will hopefully be out in droves, spending more than ever. To capitalize on this, your gym will need to have the newest gear, technology, and other resources to get consumers to come to your gym instead of a competitor.

Investing in your business after a lengthy recession may not be the first thing you are thinking about. If you aren’t sure about how to go about Gym Funding in 2021, keep reading this guide to ensure your business is able to expand safely and efficiently.

First, Identify Why You Need Funding

Most businesses that need funding need it for one of two reasons:

New funds will help them shore up a threat.

New funds will help them capitalize on an opportunity.

Sometimes in life, things happen, and we need money to bail us out. As a business owner, this can be an extremely scary situation to navigate.

Businesses that are in need of funding to get out of a precarious situation should really be looking for low-risk financial solutions that are intended to help business owners who are struggling.

This year, the SBA rolled out new low-risk, low-interest loans for businesses that needed a lot of financial assistance, quickly. If you find that your gym is in need of cash just to remain open, it may be time to apply for an SBA-backed loan.

For businesses that are not struggling, outside funding is often the best way to capitalize on a new trend or business opportunity within an industry.

If you are a business owner that is in need of funding to expand, there are steps to take to help make certain that you apply for the right capital solution for your business.

Pinpoint Areas of Opportunity

Before you can go out and apply for a grant or loan, you will need to identify where and why you need funding.

Within the fitness industry, there are plenty of opportunities available to help propel growth. These opportunities include, but are not limited to:

  • Showcasing gym safety
  • Investing in fitness technology
  • Diversification of the product offering
  • Business Expansion (new location)

Opportunities are truly endless within the fitness industry. Consumers are always looking for new ways to exercise, and as a gym owner, it is your job to provide these opportunities.

The financial aid that your gym chooses to leverage will be entirely dependent on the route of expansion that your business decides to pursue. Some gyms may only need a small technology purchase to hit their goals, while others may need to purchase a whole new building for a second location.

Whatever it may be, identifying the opportunity will help you better plan for the type of financial assistance that your business will need.

Choose a Funding Source

Now that you know how much money you need and what it is for, it is time to choose a funding source. Again, the capital solution that you choose for your business should be dependent on how much money you need and what you need the money for.

With that said, let’s take a look at some of the pros and cons of some of the most popular gym funding sources.

Small Business Loans

Taking out a business loan from a certified financial institution is likely the first funding option that comes to mind when thinking about business expansion, and for good reason. Lending companies today offer an array of loan options that are helpful for owners in any industry.

The advantages of applying for a small business loan are:

Guaranteed Funds — Not every funding solution will guarantee you delivery of your funds. When you agree on a loan amount with a business lender, you know that you are going to receive that amount.

Clear Repayment Plans — Anytime you go through a certified business lender, they will work with you to create a transparent payment plan that fits your needs.

Flexible Loan Options — A business loan can be as small as a few thousand dollars and can go all the way up to hundreds of thousands of dollars, meaning you can use them for

almost any business opportunity.

Some drawbacks of using a business loan are:

Strict Requirements — Certified lenders will have stringent lending guidelines that you must meet to qualify for a loan. Having a good credit score, healthy cash-flow, and a sound business plan will improve your odds of approval.

Cash-Flow Issues — Anytime you take out a loan, there is more stress to be financially responsible. If you take out a loan that is too big, your cash-flow can be disrupted, and paying off the loan can feel like your main business goal.

Crowdfunding

Crowdfunding has become an increasingly popular way to raise money. When crowdfunding, business owners take to online marketplaces where they can pitch their new business initiatives directly to consumers, in an effort to receive donations.

The advantages of crowdfunding are:

Zero Financial Risk — Unlike with a loan, crowdfunded efforts will not have to be repaid. This will allow you to test a new initiative with little risk attached.

Word Of Mouth Advertising — Crowdfunding sites can serve as a form of advertising as well. If a certain project begins to gain traction, it is often promoted to the front of popular crowdfunding sites, meaning more consumers will see and hear about your business.

Common issues associated with crowdfunding are:

Non-Guaranteed Funds — Crowdfunding sounds perfect in theory, but in reality, only 1 out of every 3 crowdfunding campaigns actually receives funding.

Time Commitment — Anytime you are asking people to give you money, there has to be some sort of presentation or call to action that explains why they should. Producing a crowdfunding campaign that sticks out amongst the crowd can be time-consuming and costly.

Grants

Grants are non-repayable funds that support specific industries and initiatives, that often come from the Government or another legitimate organization. Grants typically will be used for a specific purpose or effort.

The benefits of applying for grants are:

Zero Financial Risk — Grants will not need to be repaid.

The main problems associated with Grants are:

Difficult to Find — Finding a grant within your industry that you qualify for can be nearly

impossible. This makes it difficult to rely on grants for guaranteed funds, especially in a time of need.

Time-Consuming Process — Like any other initiative the government leads, applying for a grant can be very time-consuming. The time taken from the application to grant funding may be longer than you can wait.

Competitive — Chances are that you are not the only business applying for a specific grant. Others will be vying for the same limited amount of funding.

The funding avenue you go down will be extremely important in determining the success of your gym’s new efforts this year. Make sure that you do your research into each and every financial solution that is available to you.

No matter what camp you find yourself in, growing or surviving, I want to make sure that you have the financial knowledge to be able to be successful. If you have any other questions about managing your gym or fitness brand, I am here to help — give me a call anytime.

AnOutsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.

Serving the United States, South Africa, Eqypt, Canada, Australia, Puerto Rico, Turkey. India, Asia, Serbia, Ukraine, Mexico, England, Norway, United Kingdom, Nigeria, Spain, United Arab Emirates, Quatar and Saudia Arabia.

Do You Operate Your Gym with a Sense of Urgency?

A quick check showing the definition of urgency to be; 1) to act promptly; 2) act with intention to make things happen; 3) doing what needs to be done immediately.

So, here’s what I see frequently in gyms…many time there are lots of good things going on but the business and staff have become stagnant because of a lack of urgency. Here’s the deal, without urgency, it simply doesn’t matter when something is done…it could be tomorrow, the next day, next week, next month or even next year. By simply acting with urgency can make all the difference in getting your business back on track or maximizing the opportunity.

Here are some things to consider if your gym needs a kick-start with urgency:

  1. As an owner, manager, department head, sales person…make your own smart, quick decisions with confidence. It all starts with you, right? This is a way of thinking you want to act on immediately and your behavior will help train your team to act accordingly.
  2. Identify obstacles to your staff’s progress and quickly remove them. Take a look around for obstacles that are getting in your way of acting with urgency. In many cases, I have seen the commission schedule or the lack of one being an obstacle. In the end, a simple process is usually a successful process.
  3. Establish a culture that is focused on outcomes, not individual tasks. Here’s the bottom line on this, effort without results is meaningless.
  4. Communicate consequences for inaction; clarify what happens if desired outcomes aren’t met. Too many managers think consequences mean they fire someone, not so. My favorite is to role play the telephone inquiry script in front of the group — if we’re not setting phone inquiries or not getting shows….that will normally get them to memorize the script. Or in the sales process, many times we will roll out a Love at First Sight Offer.
  5. Identify what systems work for your gym and eliminate the systems that no longer serve you. Don’t keep old, tired ways of doing things in place just because “that’s the way you’ve always done it.”
  6. Announce and celebrate small success to demonstrate what happens when desired outcomes are met. For example, break a sales record; the entire team goes out to dinner together to celebrate. Or celebrate when members sponsor in a new members and receive their gift before the deadline.
  7. Agree on deadlines and provide reminders. Final day for a membership special. Final day to sign up for a class. Final week on the referral contest. You get the idea — then be sure to communicate across many different platforms….in club signs, email, phone, social media….
  8. Keep meeting short by always providing an agenda. Always have a planned, crisp agenda for each meeting. Don’t allow the meeting to drag from the original intent.
  9. When speaking, get to the point quickly; encourage your team members to communicate in a similar manner. Say what you want, when you want it and get to work — no long drawn out explanations necessary.
  10. Demonstrate leadership by example by meeting your personal deadlines. This one should be simple enough; leadership by example.
  11. Hold one-on-one meetings to secure each staffer’s buy-in to the team. Meet with EVERY team member and communicate the expectations and their understanding of each — you must get 100% acknowledgement and buy-in before you can get started…..and then be sure you follow-up.
  12. Follow up. It will not be good enough just to express your expectations, you must continue to follow up and train where necessary. The culture of urgency will never be important to you staff until its first important to you.

Now, go get it done…now!

AnOutsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.

a message from Jim Thomas

While all of us in the gym business settle in and wait for the pandemic to pass, we need to recognize that this could end up being a significant opportunity for your gym if you choose to expand and advance into the market place. But, it will require work. Don’t just sit and wait, develope a strategy, so that when this is over, you’re prepared to advance.

Here is some impotant information to remember:

  • People will still buy from you, but you will have to ask. Don’t let anyone guilt or shame you into thinking that selling is a bad thing. In many ways, you can treat this like a pre sales.
  • The economy will prosper soon. This is temporary. This will end. Let’s be sure we’re ready.
  • Gyms will re-reopen. There will be pent up demand for your services and products. Be prepared.

Prepare a plan of action and business strategy for the new normal:

  • Keep Selling. For a visual, treat this like a presales, make it simple and easy to get started and add value. Memberships, paid trials, personal training, supplements, etc.
  • Keep your current members. You’re only temporarily changing how you will coach your members (you’re not closing). Help your current members stay with you. Stay in touch with your members. Commnicate, even over-communicate. Such things as online classes, Q&A sessions, sending a work out of the day, check in on them, accountablity sessions, etc.
  • This one is big…be prepared for business after this ends. Don’t find yourself doing nothing and expect to flip the switch. Develope your plan and take action!

Are you ready to keep your members and capture market share?

  • Take control of the current situation and get a grip on things. Write out a plan that allows you to preserve cash, keep your current members, continue to sell, and develope a strategy that allows you to advance, not retreat into the marketplace. Turn off the TV.
  • Leverage an online and remote strategy to serve your members and prospects. Live classes, video, accountabilty calls, coaching calls, have fun with it just like you would inside your gym.
  • Prevent objections and sell during this time; Make this simple. Provide value.

Thank you.

Jim

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.

Attention Fitness Club Owners!! Are you struggling to grow your club and operate it?

Here are some of the most common problems I see club owners facing:

  1. They don’t have enough time to scale and manage because they are putting out fires 🔥
  2. They are barely breaking even or worse…..losing money 📉
  3. They are experienced with fitness but not with running a business
  4. They don’t know if they should sell their club or try to bring it alive 🏥
  5. Because of this, they are impeding the growth of their club

If one or more of these sounds like a problem you have had recently, then it’s time to make a change.

I’m Jim Thomas and I’ve been specialize in helping club owners make the right decisions to take their clubs to the next level. If you would like me to personally audit your club, and provide you with a strategy session to see how we can improve your current situation, simply click the link below, fill out your name and number, and I will be in touch with you shortly! (Offer limited)

Because…..When the going gets TOUGH, the SMART get HELP.™

Get a strategy session ➡️➡️ https://lnkd.in/dGs2SVu

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.

Jim Thomas Personal Mentoring and Coaching for Gym and Health Club Owners

The #1 thing that has grown client clubs has been my personal mentoring and coaching program.

I take only 10 total clients at any given time. No more.

To qualify you must be 1) like minded and we have a palatable chemistry; 2) you must possess a winning attitude; 3) you must have a strong work ethic; 4) and you must be coachable with a willingness to step outside your comfort zone; 4) you must be ready to take your business to the next level.

This is the difference when you are starting your own gym or if you’re trying to grow your business or get your existing gym back on track. The problem is that it can be impossible to find someone with the industry experience to take you under their wing and mentor you. To guide you; to tell it like it is and say “no!” Don’t do that, do this instead….that’s what I’m here for. While we share the “how to’s”, we help you effectively apply success principles yourself.

“When The Going Gets TOUGH The Smart Get Help” Package; $2,750/Month (6 month minimum). Other packages available.

Program includes (1) one-hour one-on-one conference call once per month. During this call we will go over all the pain points in your gym and create an exact plan for you to follow. At the end of the call you will be assigned homework items that are scheduled before our next call.

Weekly Check-ins; Once a week I check in on you via email. During our one-on-one conference call due dates are set for your homework items and every Friday I check up to see if you’ve hit any roadblocks or if any new issues have arisen.

Plus The Occasional “Power Call” as required when things come up that need to be addressed

Jimthomasondemand.com access. Get training and advice from me on our online platform.

Fill out the form below to submit an application.

We only take 10 total coaching clients on at any given time, so space is limited.

Once you’ve submitted your application, we’ll email you back within 48-hours to let you know if you’re a good fit for the program.

Coaching spots are limited!

Please note: this is a minimum of a 6 month commitment.

Click here: I’m Ready to be Coached

To qualify you must be 1) like minded and we have a palatable chemistry; 2) you must possess a winning attitude; 3) you must have a strong work ethic; 4) and you must be coachable with a willingness to step outside your comfort zone.

Thank you.

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. In addition, his company will buy gym equipment from gyms liquidating or closing. Visit his Web site at:www.fmconsulting.netorwww.jimthomasondemand.com.

 
 
 
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