Additional Revenue Streams
While membership fees generally cover several of your gym’s financial requirements, additional revenue streams help bolster your bank account, especially in January, when individuals looking to meet their New Year’s fitness goals prepay for their new yearly memberships. To take advantage of all the seasonal traffic in your gym while boosting your bottom line, consider setting up a juice or smoothie bar, selling pre-bottled protein shakes and other healthy drinks, or offering complementary supplements for those doing weight training and cardio.
Another idea for generating additional revenue is charging new members an initiation fee, which is a one-time fee charged at the time of account setup that requires monthly payments to stay active. You could charge customers a $100 fee that covers a lifetime initiation, but still charge a $20 monthly fee the customer can pay yearly or as they go.
Remember that initiation fees count as deferred income and must be entered as such for accounting purposes. While operating a gym can be challenging, it also has numerous rewards. Keeping cash flow running smoothly helps take some of the stress and worry out of managing your business while providing clients with a stable, reliable place to learn and continue healthy habits.