2 min readEnhancewell
If you’ve turned on the news or checked your social media feeds lately, you’ve heard that a US recession is looming. As major financial institutions issue warnings, business owners wonder, “what should I do to prepare?” While we hope for the best, it’s always prudent to prepare for the worst without panicking. Today, we’re talking about ways to recession-proof your fitness business, so you’ll be prepared— no matter what happens with the stock market.
Offer options for different budgets
When times are good, clients are happy to sign long-term contracts or pay higher one-time fees. When finances are uncertain, spending habits change. Offer multiple options for your clients. A lower-cost year-long contract might attract enthusiasts who prioritize their fitness above other expenses. At the same time, a discounted multi-class pass might benefit gym-goers who want to get fit but can’t commit to a full year. Offering discounts may seem counterintuitive, but a packed gym at a discounted rate is better than an empty gym.
Cut costs…
As a business owner, you probably already count your pennies. In rocky financial times, it’s even more important to know exactly how money is spent and cut unnecessary costs. Here are a few ways to cut costs:
- Switch from printed to digital contracts, waivers, and receipts
- Shop around for the best insurance at the lowest possible price
- Renegotiate your lease
- Be mindful of electricity usage when your gym is closed
Little changes can make a big difference, so challenge yourself to cut spending and track your savings.
…But don’t cut marketing
Don’t miss out on new clients because you cut your marketing budget at the first sign of an economic downturn. Consider grassroots marketing strategies, such as a referral program, to reduce your Google and social media spending without giving up your marketing plan altogether.
Host virtual and in-person workshops
Fitness is so much more than what happens on the mat. Consider ways to support local wellness experts through your platform. Perhaps one of your instructors is also an artist. Ask her to lead a paint and flow workshop. Maybe you have a friend who is a nutritionist. Ask him to lead a meal-prepping seminar. Your business will take responsibility for the platform and the tech/ location while the expert facilitates the event. Split the proceeds for a win-win workshop.
Stay on top of your accounting
When times get busy, bookkeeping often gets relegated to tomorrow— every day. It’s more important than ever to keep a close eye on your finances. Rectifying a slight dip now can save you from major debt or even closure later. Whether you need to hire a part-time bookkeeper to help with reconciling or calendar time every week (that you won’t cancel), make this a priority.
Do you need help implementing recession-proofing strategies? Are you so close to your business that you can’t see the forest for the trees? The team at Enhancewell Consulting has the experience and expertise in the fitness and wellness industry to identify issues, prescribe treatment, and oversee follow-through. Unlocking your brand’s true potential starts with a phone call. Get in touch today and discover how your business can succeed— even if a recession strikes.