Financial Tips for Fitness Business Owners: Navigating Uncertain Times

Running a fitness business is rewarding, but it comes with various challenges, finances being one of them - especially when the geopolitical landscape has gone wild, and numbers simply aren’t your thing. 

Whether you're a personal trainer struggling to keep your business afloat or a seasoned gym owner owner trying to navigate unpredictable economic times, handling finances for your business is crucial but can feel daunting. In this blog post, we will share our tips on how you can manage your finances during periods of economic uncertainty. 

Create a Financial Plan

One of the most effective ways to navigate any kind of uncertainty is by creating a plan. A financial plan helps you forecast your business's income and expenses and make decisions influenced by the right information. Knowing your short and long-term goals is a helpful place to start; from there, you can evaluate your current financial position and identify any risks your business might be up against. 

Most accountancy software will allow you to run reports and track your performance, helping you make decisions at every stage. You’ll see where you have opportunities to reduce costs and maximise your best income streams. 

Have Financial Reserves

It is always good to set aside a portion of your revenue to create financial reserves in anticipation of uncertain times. Having money saved for a rainy day can help you cover sudden expenses, unexpected costs, or a downturn in business. I recommend aiming to have three to six months' worth of expenses set aside as a reserve. 

Maintain Relationships

Relationships matter, no more so than in uncertain times. Doing what you can to keep in favour with your bank and suppliers will help you if you face an unforeseen situation. Banks are more willing to lend money to businesses with good credit scores. Similarly, good relationships with suppliers can help you negotiate better payment terms, discounts, and extended repayment plans to help you manage your cash flow better.

Stay Up To Date

Finally, staying up-to-date on regulations and laws relevant to your business is essential at all times, but avoiding costly mistakes might seem even more important when the economy feels more difficult. A great bookkeeper or accountant will always keep you up to date on anything that will impact your business finances. 

Conclusion

Managing finances during uncertain times can be challenging, but it is not impossible. By creating a financial plan, establishing financial reserves, maintaining good relationships, and getting the support of an expert accountant, you have the best chance of navigating financial uncertainty and taking care of your financial health. Preparing for the future is always more advantageous than reacting to it, so start planning your business's financial future today.

If you’d like to talk to me about how I work with fitness businesses like yours, please book a call today :)