Cut expenses for your fitness business to boost your bottom line
Recently we shared tips to increase income for your fitness business. Now you may be wondering ‘how can I reduce business costs’? Well, you’ve come to the right place.
There are probably two dozen ways to save money when it comes to your business. But, you need to be smart about where to pinch pennies. We would never encourage you to stop providing coffee to employees or switch to 1-ply toilet paper. Don’t cut corners at the expense of employees’ comfort or sanity. Today we’re sharing four ways to reduce costs for your fitness business without driving your employees to strike.
1. Review subscriptions
For a fitness studio, your largest subscription expense is likely your scheduling and CRM application. You may also pay monthly for email service/licensing, programs like Zoom, and music subscriptions. How can these costs be reduced? Let’s take a look at each one.
Scheduling/CRM applications – there are many available for fitness studios. First, review your subscription and see how the cost compares to similar software. If there’s a large enough difference, consider converting to another provider. You should also compare your current package to other tiers from the same provider. You may be able to simply switch to a cheaper package without losing the features you need.
Video conferencing – most fitness studios were providing instruction virtually in 2020 and part of 2021. Now that the world is opening back up, is this subscription still required? Are you able to downgrade to a free or cheaper option? Is it needed at all?
Email licenses – review your email licenses to make sure there are no active licenses for employees that have left.
Streaming music – Music licenses can also be reviewed to ensure you’re using everything that you’re paying for. If you pay for a Spotify subscription but you’re only using Apple Music, it’s time to cancel that unused subscription.
2. Compare insurance rates
An often overlooked area for cost savings is insurance. Most businesses encountered turnover during the pandemic, so it’s a good time to review your insurance needs and requirements. Look at your current policies and reach out to an insurance broker to see if you can get comparable coverage for a lower premium. Using a broker or agent who can compare rates and coverage from multiple companies for you is ideal.
For workers compensation insurance, make sure to update your headcount so you’re not overpaying.
3. Create a budget
It sounds simple, but you may find cost-saving opportunities while doing it. The first step in creating a budget is to determine your current expenses. This may result in uncovering potential waste or overspending. For example, if you notice you’re spending a lot on water bottles you provide to members, that can be replaced with a water fountain or water service.
4. Share the budget with employees
You’ve probably heard the term, “it takes a village” when it comes to raising kids. That concept also applies to achieving goals in your fitness business. You don’t have to do it alone. Share the budget with your employees and engage them in the process of reviewing costs. They may have additional ideas on ways to reduce costs, and it also gives them a feeling of involvement and accountability. You can even offer financial incentives to employees for coming up with cost-saving ideas that are successfully implemented.
Now go forth, and save money! You might also be interested in our articles on increasing income for your fitness business, awkward money topics for business owners, and getting thousands of dollars for your business (with the ERC). As always, feel free to share your thoughts in the comments or reach out to us with any questions!