Reducing expenses for better business sustainability
Reducing expenses can instantly boost your business cash flow, but most business owners are reluctant to do so out of fear that it may reflect badly on the perceived business status of their gym or fitness club.
The trick to reducing expenses correctly is to focus on eliminating non-core expenses. Basically, core expenditure refers to essential day-to-day expenses like utilities, rent and wages. On the other hand, non-core expenditure are expenses un-related to running the business everyday, such as insurance, travel costs and beverages. These two expenditures are also often referred to as direct and in-direct costs.
Reducing Expenses is the New Black
With the advent of a global economy that is slowly recovering, low cost gyms are now no longer seen as the poor man’s version of a glamorous hobby. Instead, plenty of gym customers support businesses that prefer to reduce expenses in return for lower membership fees. This thrifty movement is seen as an educated lifestyle choice and actually reflects on the wisdom of customers who are less concerned with their purchasing power (or purchasing status) and are instead, much more interested in the value for money that streamlined gyms offer.
With so many gyms and fitness centers being established across the country, how do you keep your business in the forefront and ahead of the crowd while also reducing expenses?
Anytime Fitness is a great example of how quality fitness facilities can expand to countries like Malaysia and Singapore based on a low-cost business model. Banking on creativity and innovation, Anytime Fitness targets “regular folk” who are much more interested in attending “no-frills” or “low-key” workout sessions, as opposed to subscribing to high end gyms with large sauna rooms, Olympic-sized swimming pools and a 24-hour open coffee bar.
The key takeaway is to not confuse reducing expenses in your business with removing comfort or convenience from your customer’s workout experience.
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