Dear Dangerously in Love with Finance,
After three years of running my fitness studio, every January is the most exhilarating feeling ever. Many people sign up for gym memberships, personal training packages, even entire classes as a result of New Year’s resolutions. However, everything seems to come to a halt by April, and I find myself pondering the whereabouts of everyone. When summer rolls around, business is slow, and I have to work hard to make ends meet. Then, in September, there’s a little upturn.
The fitness sector is prone to seasonal trends, but I can’t afford it. It’s hard for me to anticipate the ups and downs, and I always feel like I have to play catch-up in the slow months. In light of these cyclical patterns in income, how can I plan for and control spending? I aim to create something long-lasting, not merely something that can weather the storms.
Warm regards,
Caught in the Ups and Downs of Revenue
Dear Caught in the Ups and Downs of Revenue,
First, I want to start by telling you that you are not alone. Managing the ebb and flow of January excitement and the parchedness of mid-year slumps is a common challenge for fitness business owners. If you know your seasonal trends and make a budget that takes them into consideration, you may turn this wild ride into a gradual ascent. Now, let’s divide this into manageable steps.
1. Know Your Numbers (Yes, Even the Scary Ones)
It’s time to get cozy with your revenue history. Look at the past three years and map out your revenue month by month. Spot the trends: When do you peak? When do you dip? This will help you project your income realistically and plan accordingly. For example, if you know that your revenue takes a nosedive in July, you can proactively set aside funds from your January boom to cover those slower months.
But here’s the kicker—you need to pair your revenue trends with your expenses. Are your expenses staying consistent throughout the year, or do they spike at certain times (e.g., for marketing, new equipment, or seasonal hires)? Aligning these two sides of your financial story will help you make smarter decisions.
2. Embrace Predictable Peaks (and Prep for the Valleys)
January is your time to shine, so lean into it! Offer irresistible promotions like discounted annual memberships or bundled personal training packages. These deals lock in revenue long-term, giving you a buffer for the slower months.
During peak months, think of your revenue as a squirrel thinks of nuts—stash it for the winter. Set up a savings account specifically for your studio’s operational costs during slower periods. Aim to save a percentage of your peak-season profits (e.g., 20-30%) to cover expenses when things slow down.
3. Get Creative During Slower Seasons
Now, let’s tackle the quieter months. This is your opportunity to think outside the box and diversify your offerings. Consider launching seasonal programs that align with people’s interests, like summer outdoor boot camps or holiday-themed fitness challenges in November and December.
You could also collaborate with local businesses, like wellness centers or juice bars, to create cross-promotions that draw new clients during the lull. Or, target niche groups—think “back-to-school fitness” for busy parents in September or a “pre-summer shred” for those looking to tone up for vacation.
4. Build a Membership Model That Works Year-Round
Membership models are your best friend when it comes to stabilizing revenue. Offer tiered memberships that include perks like online classes, nutrition coaching, or quarterly fitness assessments. The goal is to create value that keeps members engaged beyond their New Year’s resolutions.
Consider implementing incentives for commitment, like loyalty discounts or rewards for attending a certain number of classes per month. The more value your clients see in staying consistent, the less likely they are to drop off mid-year.
5. Plan Marketing Like a Pro
Your marketing shouldn’t stop in March! Keep the momentum going year-round with seasonal campaigns that address your audience’s changing needs. For example, in summer, focus on workouts that can be done outdoors or on the go. In fall, highlight routines that fit into a busy back-to-school schedule.
If you’re not already using email marketing or social media retargeting, now’s the time to start. Keep your current members engaged with tips, recipes, and motivational messages, and remind past clients why they loved working out with you. Consistent communication keeps you top-of-mind when they’re ready to return.
6. Budget Like a Boss
A solid budget is your safety net. Break your year into quarters and assign revenue and expense goals for each season based on your historical data. Include a buffer for unexpected costs—because let’s face it, surprises happen (like the time your treadmill decided to retire mid-class).
Use financial management software or consult with a fractional CFO (yes, even small fitness businesses can benefit from one!) to track your progress and adjust your budget as needed. A professional can help you identify patterns you might overlook and offer strategies to optimize your cash flow.
7. Focus on Retention, Not Just Acquisition
Finally, remember that keeping your current clients engaged is far more cost-effective than constantly chasing new ones. Create a community within your studio where people feel supported and motivated to stick around. Celebrate their milestones, ask for feedback, and provide resources to help them succeed. A loyal client base is your secret weapon against seasonal slumps.
I hope this helps and if you have any additional questions or need a CFO that specializes in gyms and fitness centers, please reach out.
As this is what we do…..
Yours truly,
Dangerously in Love with Finance
Your Health and Wellness CFO
Mindful Financial Tips:
You’re already on the right track just by asking these questions and recognizing the need for change. Seasonal revenue trends may be part of the fitness industry, but they don’t have to control your business. With a strategic budget, creative programming, and a focus on retention—and with the support of CFO services for fitness centers—you can smooth out the peaks and valleys, giving your studio the stability it deserves.
You’re building more than a business—you’re creating a space where people change their lives. By managing your finances wisely and leveraging the expertise of a CFO to guide your financial strategy, you ensure your doors stay open for years to come, no matter the season. Now, go out there and turn those resolutions into year-round results!
Master Fitness Budgeting and Stay Ahead of Seasonal Trends
Navigating the highs of January and the mid-year lulls can be tough for fitness business owners. But with a smart, seasonal budget, you can transform these challenges into consistent growth.
At Healthy Bodies of Finance, we’re here to help you balance your fitness business’s finances year-round.
Contact us today to learn how we can help you:
Let’s turn your seasonal challenges into year-round success!
This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at [email protected]