As a fitness or wellness professional, you’re probably already feeling the squeeze of rising costs and the impacts this will have on your business. Looking at your financial health and planning for the months ahead will prove an invaluable exercise.
And although there are some critical costs or expenses that can’t be avoided, there are others that can easily be reduced and get you to start saving money, fast.
We wanted to share a guide that might help you save money and get your business into better financial health by cutting common costs or expenses without jeopardizing your business’ potential to grow. This isn’t about cutting corners – this is about making sure that every penny you spend is well spent. Here’s a practical guide to cutting costs and improving business in three As.
What are you spending, on what and why? Are there alternatives to any item of expenditure, are there items that you can eradicate by changing your internal processes? On revenue, what are your attendance and cancellation rates, and how are your products and services performing?
Write down every process or cost associated with your business. Don’t restrict yourself to the obvious things. This is every expense, policy process. Think about cancellation policies, waitlist, communications, marketing, the operations of your business, the time you spend on different elements, your training and development. This is a deep dive into everything in your professional life.
Break down every detail of your business, no matter how small or no matter how long that expense has been in your business. Take nothing for granted and don’t pass off small costs. The accumulation of marginal gains goes straight to your bottom line.
What are the little changes you can make to improve your profitability? These might all be small changes individually, but when you add them up, they can really make a difference.
The SCAMPER method will help you find the best and most innovative solution. SCAMPER is the acronym for (substitute, combine, adapt, modify, put, eliminate and reverse) and encourages you to improve existing processes.
Take your list of expenses and process and say for each of those and apply the SCAMPER options to each of them. Is there a substitute, can you adapt or modify it?
Is there something you use but you could use something less expensive? Do you use something which doesn’t actually pay for itself? Are you doing work that you could push back on your clients?
This table gives you an example of how to analyse the operations of your business:
Now that you have worked out what savings you can make, is time to get stuck in with planning and work out how you will operationally manage your business so that your costs remain low, you reinvest where you need to, and simultaneously your efficiency runs high.
See this as a new opportunity to reinvent some of the things you do and bring added value to your customers. By connecting with your most loyal customers, they will be feeding you tons of great insight. Use this information to improve the way you communicate with your audience to truly connect with them and grow your community. Adding value will help you figure your niche and stay one step ahead of everyone else.
These are our top 5 tips for creating value for your customers:
- Make it easy for your customers to book and pay. Everyone dislikes a painful buying experience. Make this easy for them, and yourself and automate this. They will love getting notified and being able to have control over their class or appointment booking schedule.
- Leverage the power of customer testimonials. Make sure you reward your loyal few and fill their inboxes with discount codes and other incentives they can use to encourage them to invite friends and family.
- Make sure your customers hear from you, and often. Staying top of mind is an artform and you want to make sure your name pops to mind even at the dinner party. Give them access to free resources such as healthy tips guides, helpful facts and reminders, or an inspirational story.
- Create a VIP room. You can use Facebook to bring your most loyal customers together in a place where they can feel inspired and motivated, and hear the most up to date news from you. Add them to a priority list in your booking system too so that they get access to booking ahead of anyone else and can secure their spot!
- Do what you love. When you do the things you love you become more productive and motivated. Automating and delegating some of the boring admin tasks with software will enable you to do more of what you love and gain more time to engage more with your customers.
Once you have audited your expenses or costs and know the actions you need to take to make some savings, you’ll want to make sure your booking and customer management software is affordable and easy to use for you and your customers. That’s where Gymcatch can help you, get in contact with us today.