Financial Health Tips for Gyms and Salons in the Cryotherapy Space
The financial health of your company is highly important to your business’ success. According to the Bureau of Labor Statistics 20% of startups fail within the first year and 30% in the second year.¹ As a gym and salon owner in the cryotherapy space, your business requires a solid financial footing to thrive. It shouldn’t be all about keeping your business running. You should also keep your wallet healthy too. Let’s discuss some financial health tips for your gym or salon.
How to Boost the Profitability of Your Wellness Cryo Chamber
If you are your own boss then you're probably wearing many hats, from HR to marketing and payroll. With so much on your plate it’s quite easy to neglect your business’s financial health. This is especially true if you have a steady stream of customers.
Keep Your Business Lean
Golden rule: If your business can run successfully without it, then you don't need it. Don't rush into financially intensive projects while you're still trying to stabilize your business. This will only put a strain on your finances and cause business failure. Learn to prioritize and focus on increasing your cash flow. For instance, investing in a quality cryotherapy machine may increase your cash flows and therefore be essential to your business's success. On the other hand, investing in renovations just a few months after reopening may not be the most financially responsible idea.
Track All Your Finances
Business records ought to be kept. There are 3 main financial elements you should never neglect:
Cash Flow statement
Balance sheet
Profit and loss statement
Account for every amount spent and stay on top of your assets and liabilities. Even if you are a startup! This will give you a clear image of where you stand financially.
Separate Business and Personal Finances
Your business is a separate entity from you as the business owner. If you're a sole proprietor, the lines between personal and business finance can get hazy. It's, however important that you separate the two. This way, even if your personal finances diminish, your gym and salon will still continue operations. If you're having a hard time differentiating the two, outsource your accounting and finance department to experts.
Always Have a Cash Reserve
This is your business’ emergency fund. The business world is highly unpredictable, and your gym and salon need a safety net. What happens if another pandemic occurs? Would your gym survive an economic crisis? Identify your net monthly expenses and then save enough money to sustain you for 6 months.
Streamline Your Wellness Cryo-Chamber Business
A US study revealed that more than 80% of businesses fail due to poor cash management.² The financial health of your gym and salon isn’t all about making sales. It’s highly dependent on how well you manage your business income. If your financial footing is shaky then your business will likely fail. Use the above tips to streamline your finances and increase your business profitability.
Links to sources used
The True Failure Rate of Small Businesses - https://www.entrepreneur.com/article/361350
Why do Small Businesses Fail? - NFIB - https://www.nfib.com/content/resources/start-a-business/why-do-small-businesses-fail/
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