The health and wellbeing industry has enjoyed a massive boom in recent years, sparking a big rise in the number of fitness facilities opening across the world.
As with any business, it is important to produce a comprehensive financial plan before opening and closely following this while trading.
Read on to find out more about the different ways to finance your fitness business.
Be your own boss
It is possible to finance a gym business without external funding, leaving you free to manage things in your own way.
Starting a business with limited capital teaches bosses invaluable commercial skills, including how to make your money go further.
People who use their own cash to start a fitness business are taking a financial gamble – especially if it fails. Try to build a healthy budget before taking the plunge, while visiting LottoGo online with a voucher can also give you the opportunity to increase your chances of giving your business a financial boost.
Loans and grants
Banks will lend money, although they are less likely to take risks in the current financial climate.Around 100,000 loan applications by small businesses in the United Kingdom are rejected every year, leaving a funding shortfall of £4 billion.
Loans are usually tailored to your individual set of circumstances with negotiable terms and conditions. Attractive future revenue forecasts and a solid balance will usually generate a low rate of interest.
There are also business grants available – although they are difficult to obtain. Your local Chamber of Commerce can provide you with information about the latest grants available.
Independent investors provide financial backing for businesses in exchange for an ownership stake in the company.
If the business performs well both parties reap the financial rewards, but failure rates amongst start-up companies are high, so bringing someone on board with sound business expertise is hugely important.
When approaching an investor make sure you have a sound business and focus on their skills, experience and contacts during your discussions.
Investors will be eager to know whether you are equipped to survive the bad times, rather than knowing what you’ll do when things are going well.
Friends and family
Using people close to you might seem the easiest option, but it can be a dangerous way to go about things, particularly if the business fails.
You are potentially risking losing a friend or falling out with a family member if it does, so think carefully before going down this route.
Away from friends and family, your business contacts can be an invaluable source to access funding and industry knowledge and utilizing this option stops things encroaching on your personal life.