Several suppliers to the health and fitness industry are coming together to launch the Fitness United project. The purpose of the initiative is to support gym and fitness facility operators during the COVID-19 pandemic which has temporarily closed all UK gyms, studios and leisure centres.
Navigating the COVID-19 pandemic
Although, it is likely that UK fitness venues will begin reopening later in 2020, it remains unclear what the financial ‘health’ of many fitness establishments will be, especially when government support begins to be withdrawn. For this reason, Oxygen Consulting has developed a COVID-19 financial diagnostic and support service that will help independent fitness businesses to gain a clearer perspective of their business for the period through to December 2021.
A vaccine to treat the COVID-19 disease should be available during 2021 which should signal an increase in consumer confidence. Until this time, an array of fitness businesses will have to navigate an environment of weak consumer confidence, potential loss of some existing members as well as repaying business debts which have accumulated during a prolonged shutdown.
Our financial modelling helps with questions such as:
1 How much rent can the business afford to pay over the next 18 months?
2 Over what period can rent arrears be repaid while maintaining a reasonable level of cash in the business?
3 What is the impact of no membership growth for six months?
4 Does my business require a government ‘bounce back’ loan to extend its cash runway?
5 Over what period can equipment lease arrears be repaid?
A focus on independent fitness businesses
We intend to focus our efforts on independent fitness businesses which comprise more than half of the entire UK fitness industry. They do not possess the people or cash resources of the large chains to successfully navigate their way through a very challenging period. Some areas of support include:
1 Providing a financial appraisal that will support discussions with business creditors.
2 Working with the business owners to develop new digital and ‘away from the venue’ customer experiences.
3 Helping the business to identify and apply for grants and business loans.
4 Supporting the business to identify new long-term investment partners.
Please do contact us to explore how we can support your business to successfully navigate the COVID-19 pandemic by drawing on our considerable expertise and network.