When you run a gym, you know that the overhead costs can rack up quickly. Luckily, there are ways you can cut costs without raising your prices or stressing over membership drives. Here are five simple methods of saving money on your operational expenses.
1. Maximize Facility Efficiency
Much of your gym equipment requires a decent amount of space to install and use. Larger buildings are also notoriously inefficient at maintaining temperatures. Between electricity, running water, and additional utilities like the internet, propane or natural gas, and garbage pickup, your monthly expenses can compound rapidly.
The best way to combat this is to maximize the energy efficiency of your facility. Installing LED lights in energy-efficient fixtures and volume control faucets and toilets will help reduce your energy usage. If you are willing to make a small investment up front, you can look at a review of solar companies in your area and find an affordable installer to become energy independent.
2. Follow a Business Plan
One of the mistakes that many business owners make is failing to stick to a plan. You need to be flexible, of course, and allow for changes along the way that improve your odds of success, but creating a schedule for growth will give you tangible milestones to reach periodically throughout the year.
Much like a personal budget, a business plan forces you to allocate all of your income in advance. That reduces financial waste, forces you to manage your time more efficiently, and encourages you to think outside the box for new ways to reduce operational costs and maximize your potential services.
3. Grow Membership
While cutting costs on utilities and following a plan will reduce your overall expenditures, the greatest tool at your disposal is your membership. If you are already cutting costs in other areas, you will have room to breathe and carefully think through different ways you can encourage new members to join and upsell additional services to your existing membership.
For example, you might start offering incentive programs that will not affect your bottom line but also come at no additional fee to potential members. Weight loss contests, competitive exercises, referral discounts, and nutrition counseling are some possible services you could include for paying members that can potentially increase your overall membership and keep existing members satisfied.
4. Invest in Expertise
Although it may seem counterintuitive to make additional hires as a way of reducing your overall expenses, just consider the potential value it will add to your gym by bringing on nutritional experts, professional trainers, and other health consultants on a part-time basis. If you can find professionals looking for part-time work, you can capitalize on their knowledge, bolster the public appeal of your gym, and only pay part-time wages.
Now, aside from hiring staff, you should consider investing in professional business consultants as well. Hiring business professionals can help you organize your business, manage your tax filings, and square away your insurance needs rather than stumbling through via trial and error. Some of the simplest business mistakes can result in severe financial loss, so this investment can save you quite a bit as a preventative measure.
5. Take Small Steps
Remember that the most successful businesses take one step at a time. You have to differentiate between your ideal gym and your current gym and gradually work toward that goal. Adding too many services at once can add compounding problems that overwhelm you and result in high membership turnover.
If you are following your business plan carefully, you will learn that your business will grow more consistently when you focus on perfecting one new service at a time. If you want to include yoga, CrossFit, and a swimming pool, adding each service one at a time will help you ease into the new addition and increase your potential revenue for tackling the next.
The key to running any business success is perseverance. There will be hurdles along the way, but with enough determination, you can succeed. If you follow these simple steps, you will not only succeed at growing your business but also cut costs and increase your earning potential along the way.
Mikkie is a freelance writer from Chicago. She is also a mother of two who loves sharing her ideas on interior design, budgeting hacks, and DIY. When she’s not writing, she’s chasing the little ones or rock climbing at the local climbing gym.
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