As with all businesses, your gym’s success depends on your ability to bring in more revenue than you’re spending. When you total the cost of purchasing all of your equipment, building or leasing the actual facility, paying the staff, paying the insurance, and purchasing all of the necessary computer equipment and software, it’s got to be less than you’re pulling in each month. Sure, you’re going to start in the hole when you first get going, but you should be able to pay your monthly bills and still sock away some money each month. If you’re able to stay current on your payments while also putting a little bit of money in your coffers, then you’re running a successful gym.
In order to ensure that you’re staying on top of your finances and bringing in enough money, you should invest heavily in gym revenue management solutions. When you hear people talk about revenue management systems for small businesses like gyms and fitness centers, what they’re really talking about is software backed up by a third-party operator that handles the management of your revenue.
You might be saying to yourself, “Okay, but what does that really look like in practice?” In practice, a gym revenue management solution is software that handles all of the billing of your members, that calculates your spending each month, that contacts members when their payments don’t go through, and that tracks your spending against your revenue each month and gives you a report. This software is in charge of automatically debiting the accounts of your members each month so that their payments come in on a specific date. This is a much more effective and accurate way of billing members, and it helps to ensure that all payments are current at all times. If a member’s payment doesn’t go through, the third party operating the software will contact the member and let them know there’s an issue with their payment method. Their membership will then be blocked until they pay their monthly dues. This helps you ensure that everyone using your facility is current on their payments.
On top of that, you can input into the gym revenue management software all of your costs each month, from what it costs you to pay your employees to how much money you spent purchasing or repairing equipment. Thus, it provides a central location for you to put all of the financial information about your gym, making it easier to keep track of where you’re at and how much revenue you’re producing.
It’s imperative that anyone running a gym in today’s world use one of these software solutions. They make it easier to keep track of which members have paid, to actually bill those members, and to keep the cashflow steady for the fitness center. Solutions like Debitsuccess from TSG help to ensure that the gym is making money by accurately billing each member the correct amount each month or year. If you’re running a gym and you want to be certain that all of the money you’re due is actually coming in, make sure you purchase one of these solutions. They’re worth their weight in gold.