Is there a financially smart way to open a fitness studio? What do you need for your gym?
Opening up any kind of business can be difficult but has the potential to provide you with great benefit over time. However, if you’re looking to open a fitness studio, you’re going to be aiming to provide service of equipment versus providing a service.
You still want to advertise, want customers, and need to manage finances related to your business along with whatever profits you offer. However, members attend your gym for different reasons: the ability to use any of your equipment they want, take classes, and get the ability to work out alongside a community of fitness enthusiasts.
Therefore, you need to be able to offer them any and all of the equipment they want to use. If someone is aiming to attend your gym for different cardio machines or weight machines or even a wide range of yoga classes, you need to do your best to fulfill their needs.
However, when you are trying to open a fitness studio finances are already tight and paying to get all of that equipment you need can be challenging. There are alternative ways to acquire equipment, like purchasing your equipment using financing or getting an equipment lease.
When you are trying to open a fitness studio, which is the better way for you to get your equipment?
Purchasing Fitness Equipment
Purchasing is one of those business decisions that completely depend on what exactly you’re buying and how the numbers add up. You get to claim equipment as a business asset, meaning you do get some funding when you purchase the equipment, which can help you out.
Still, a purchase can be something that causes you issues versus benefiting you in the long run, especially if you’re spending so much on your equipment to begin with. Say you’re purchasing a treadmill for your home, and spending quite a bit of money to do so.
It’s no issue because you’re making the one purchase, and the treadmill is in your home, and that’s the way business owners tend to look at purchasing. However, later on, that treadmill will start having issues, deteriorating to the point where it is difficult to use.
Eventually, you’re going to have to replace it, and with complex equipment like treadmills that day will come faster than you’d think. For one treadmill that you own in your house, it’s no issue: you paid to buy it, and a few years later you’ll pay to get a brand new one.
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However, imagine your gym with at least ten treadmills, all needing to be repaired around the same time. Not only will you have spent quite a bit of money on the treadmills to begin with, but now when your business is still fairly new, you have to purchase the equipment again.
This is why loaning with more expensive equipment can be so risky. Imagine you get a bank loan and haven’t paid it off by the time your equipment needs to be replaced: that’s just your business in deeper a debt with increasing interest.
Leasing when you Open a Fitness Studio
You need quite a bit of equipment for your business to succeed, both in variety and quantity. You need to have the hardware for aerobics, dance, yoga, gymnastics, cardio, weightlifting, and anything else that you can offer that people want out of a gym.
Plus, you need to have enough equipment to handle your members at any given time, as they’ll be expecting to be able to go to your gym and have quite a bit at their disposal. The answer comes through leasing: you can stock up your gym with a huge amount of equipment with values exceeding capital equipment for a flat monthly rate.
Leasing is effective when you open a fitness studio because the equipment is merely loaned to you in exchange for you paying that monthly rate, meaning later on you can make a different decision for your business if you choose.
If you want, you can take out an equipment lease, start your business, and later on purchase the equipment from the leasing company at a haggled rate. However, many businesses end up leasing at least some of their equipment for quite some time because it’s just so convenient and advantageous for a business.
You’re paying for a service, so equipment is always up and running in your business; if anything breaks it is repaired for you. Leasing even offers equipment upgrades and tax benefits!
With equipment leases, businesses can truly be successful by getting the ability to manage their finances with less issue. To learn more about how to open a fitness studio with an equipment lease, click here.Google+