Getting yourself in good shape requires nutrition and hard work, but what does your business require in order to be in good shape? At any point you have the option to apply for the working capital you need to expand your business or get new equipment.
Well, what is working capital exactly? Working capital loans are unsecured business loans that can be used for a wide range of expenditures, including marketing expenses, equipment, staffing and even taxes. The amounts available and the length of payback terms depend on the lender you’re partnering with, but a working capital loan is still among the most versatile types of financing available for club owners. Hiring employees, fresh wipes and brand-new lifting or cardio equipment will provide customers with an experience that will keep them coming back.
That makes it a perfect fit for taking on opportunities that arise, especially those on relatively short notice. If you’re smart and judicious about the financing you take on, it solves cash flow issues that might otherwise prevent you from taking on those opportunities, as well.
Let’s take a look at three kinds of opportunities that working capital loans can help you take advantage of, and why you should not pass those opportunities up.
Advertising opportunities and initiatives have a way of popping up quickly for club owners and this extra cash is a great way to let your community know you are open for business. It takes money to make money, and the more you put into advertising, the higher your return will be, with both the right timing and message.
The problem with advertising is that it’s often expensive. Social media and word of mouth are obvious exceptions, but you can’t necessarily count on them to make the same impact as a billboard, radio spot or even television commercial. A multi-faceted announcement of a remodeled location over social media in addition to those other mediums can pay off in a big way. If it takes financing to get you over the top, that’s worth it.
Sometimes the opportunities that access to working capital can create are not so obvious. Let’s say your location is doing well – so well that you can barely handle the flow of new customers and the amount of traffic that you’re receiving on a daily basis. You’re understaffed and your members are beginning to notice. In this case, you’d be well served to obtain a working capital loan to hire new employees to take advantage of your booming business.
Getting a working capital loan can — and should be — quick and easy as there is very minimal paperwork required for approval, making it the perfect solution when you’re hoping to act fast to take advantage of a fleeting opportunity. But first you’ll need to find a lender with fitness industry experience that will understand the kind of needs you’ll face and the nature of your business. Finding a working capital loan that works is all about researching finance firms and learning about their experience and history in your space.
Of course, it may not be a working capital loan you use to make these opportunities happen. It might be a different loan or your own money. What matters is that you find a way to not let these opportunities pass you by, because the intent is to help your business grow and help you pull in more revenue.
Remember: In all these cases and more, you can use money to make money. That’s one opportunity you should never pass up.
Sherri Starcher is the Vendor Vertical Marketing Manager for Direct Capital Corporation. For more information, visit www.DirectCapital.com.
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Rachel Zabonick-Chonko is the editor-in-chief of Club Solutions Magazine. She can be reached at rachel@peakemedia.com.
